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FISCAL NOTE
House Bill 126
Committee: Finance and Taxation General FundSponsor: Representative Kyle South
Analyst: Tiffany Weaver Date: 05/24/2023
House Bill 126 as passed the House of Representatives would: (1) create the Medicaid
Emergency Reserve Fund; (2) annually transfer to the Fund any unencumbered ending balance
of the Medicaid State General Fund Account and the Medicaid State General Fund
Carryforward Account that was not appropriated in a future budget, beginning with the 2024
fiscal year ending balance; (3) require the Legislature to appropriate the expected carryforward
in the Fund back to the Fund for use in the next fiscal year, as well as the expected transfers
from the Medicaid State General Fund Account and the Medicaid State General Fund
Carryforward Account; and (4) prohibit the balance in the Fund from exceeding $100 million.
This bill would also authorize withdrawals from the Fund only when authorized by the
Governor and when the Alabama Medicaid Agency's commissioner notifies the Governor of the
following: (1) over expenditure variances due to cost increases or unforeseen costs; and (2) to
prevent overdraft or deficit if the Alabama Medicaid Agency is expected to expend its total
State General Fund appropriation before the end of the fiscal year.
Further, this bill would appropriate: (1) $88 million from the Medicaid State General Fund
Carryforward Account to the Fund for fiscal year 2024; and (2) $88 million from the Fund in
fiscal year 2024 to the Alabama Medicaid Agency to be used in conformity with the provisions
of this bill.