SB123 Summary

• Amends Section 40-18-100 of the Alabama Code to clarify the definition of "debt" for purposes of set-off debt collection by the Department of Revenue.

• Expands the definition of "debt" to include sums collected on behalf of claimant agencies by entities otherwise authorized by law to collect those sums, including agreements with public entities or nonprofits for management or administrative services.

• Applies specifically to agreements between claimant agencies (counties, municipalities, and certain corporations/instrumentalities) and public entities or nonprofits authorized under Section 22-21-318 or Section 11-62-7 for management or administrative services.

• Clarifies that such agreements do not affect a claimant agency's ability to collect debts through the set-off debt collection process.

• Becomes effective immediately upon passage and approval by the Governor or upon otherwise becoming law.