HB215 Alabama 2018 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2018

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

HB 215 would gradually shift TVA in-lieu-of-taxes payments away from TVA-served counties to the State General Fund, with a separate 5% distribution to dry counties not served by TVA and offsets tied to liquor tax revenues, ultimately centralizing the funds in the General Fund by 2021.

What This Bill Does

The bill amends Section 40-28-2 to change how Tennessee Valley Authority in-lieu-of-taxes payments are distributed. It phases out the share sent to counties served by TVA, while increasing the State General Fund portion over time, ultimately reaching 100% for the General Fund by 2021. It creates a 5% distribution of these payments to dry counties not served by TVA (and their municipalities), administered by the county, but this share is offset by liquor tax revenues starting in 2010 until it equals the 2009 TVA distribution level, after which the offset shifts to TVA counties and, through 2018, all such distributions go to TVA counties. Some specific counties (Limestone, Madison, Marshall, and Morgan) have the distribution allocated by local law, and certain provisions about other distributions and timing apply. The act becomes effective immediately upon passage.

Who It Affects

• TVA-served counties and their municipalities would see a shrinking share of TVA in-lieu-of-taxes payments, eventually receiving none as the General Fund share rises.
• Dry counties and municipalities not served by TVA would receive a 5% share of TVA in-lieu-of-taxes payments, but this portion is offset by liquor tax revenues starting in 2010 and, by 2018, would be allocated to TVA counties; the distribution is administered by the county governing body.
• The State General Fund would receive increasing portions of the in-lieu-of-taxes payments, ultimately receiving 100% of the payments from fiscal year 2021 onward.

Key Provisions

• Amends Section 40-28-2 to redefine how TVA in-lieu-of-taxes payments are distributed between TVA-served counties and the State General Fund.
• Establishes a fiscal-year schedule showing the share going to TVA-served counties; the share declines over time, with the General Fund share increasing, culminating in 100% to the General Fund by 2021 onward.
• Adds a separate 5% distribution of TVA payments to dry counties and municipalities not served by TVA, to be distributed pro rata based on 1978-79 A.B.C. payments, but subject to liquor tax revenue offsets beginning in 2010 through 2018.
• Specifies that, through 2018, all distributions under the dry-county subsection would be directed to TVA counties; after 2018, the allocation is aligned with the TVA-subsection framework and local-law allocations for certain counties (Limestone, Madison, Marshall, Morgan).
• Notwithstanding the above, certain counties' allocations can be directed by local law, and distributions tied to Act 2010-135 may be held by counties until local allocation laws are enacted.
• Effective date: immediate upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tennessee Valley Authority