HB44 Alabama 2010 Session

Summary

Primary Sponsor

Laura HallRepresentative

Democrat

Co-Sponsors

Phil WilliamsHoward SanderfordMike BallMac McCutcheonJeremy OdenJohnny Mack MorrowJohn RobinsonJames C. FieldsButch TaylorBill J. DukesMarcel BlackJody LetsonJeff McLaughlinFrank McDaniel

Session

Regular Session 2010

Title

Tennessee Valley Authority, payments in-lieu-of-taxes, redistribution of the payments to dry counties and municipalities under existing law to counties served by TVA, certain increases in liquor tax receipts distributed to dry counties and municipalities, Sec. 40-28-2 am'd.

Summary

This law changes how Alabama distributes TVA in-lieu-of-taxes and liquor tax receipts by creating new distributions to dry counties and non-TVA areas, while adjusting the share going to TVA-served counties and linking liquor-tax growth to those distributions.

What This Bill Does

It sets a graduated schedule for TVA in-lieu-of-taxes payments to counties served by TVA, with increases that are partially allocated by local law after 2005. It adds a 5% share of TVA payments to dry counties and non-TVA-served municipalities, distributed proportionally to 1978-79 ABC payments and administered by the county, with certain counties handled by local law. Starting in 2010, liquor-tax revenues designated for certain state funds are capped at 2009 levels and then allowed to grow in step with TVA payments to dry/non-TVA counties, with further adjustments in 2011 to align to TVA payment levels; some distributions are conditioned on local-law actions for specified counties. The act also repeals conflicting laws and takes effect immediately.

Who It Affects

• Counties served by the Tennessee Valley Authority (TVA) in Alabama, whose TVA-in-lieu-of-taxes payments will follow a new graduated schedule and may have increases allocated by local law after 2005.
• Dry counties and municipalities not served by TVA, which receive a new 5% share of TVA payments and related liquor-tax revenue adjustments, with distributions organized by county governments and some allocations controlled by local law for certain counties.

Key Provisions

• Amends Section 40-28-2 to establish a TVA-in-lieu-of-taxes payment schedule for TVA-served counties: 1979-80 20%, 1980-81 30%, 1981-82 40%, 1982-83 50%, 1983-84 60%, 1984-85 70%, 1985-86 through 2004-05 75%, 2005-06 and thereafter 78%.
• After 2005, the three percent increases in the TVA payment schedule are to be allocated by local legislation rather than automatically, affecting how counties receive the increases.
• Adds a new 5% distribution of in-lieu-of-taxes payments to dry counties and non-T.V.A.-served municipalities, allocated proportionally to 1978-79 ABC payments and administered by the county governing body; Limestone, Madison, Marshall, and Morgan counties have portions allocated by local law and held separately until local-law effectiveness.
• From fiscal year 2010 onward, liquor-tax revenues corresponding to the Public Welfare Trust Fund, Special Mental Health Fund, and State General Fund shall start from 2009 levels and may grow to match TVA payments to dry counties; growth in liquor tax receipts beyond TVA payments may also be distributed to those counties and non-TVA areas as specified.
• Requires an adjustment in fiscal year 2011 to ensure that total liquor-tax distributions to non-served TVA counties equal what they would have received from TVA payments prior to the amended distribution.
• Repeals conflicting laws and becomes effective immediately upon passage and Governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tennessee Valley Authority