HB351 Alabama 2022 Session

Summary

Primary Sponsor

Lynn Greer

Republican

Session

Regular Session 2022

Title

Related to Tennessee Valley Authority (T.V.A.) in-lieu-of-taxes payments, to revise the distribution of payments received by certain counties, to make nonsubstantive technical changes to update existing Code language to current style, Sec. 40-28-5 repealed; Sec. 40-28-2 am'd.

Summary

HB351 revises how TVA in-lieu-of-taxes payments are distributed among TVA-served counties, non-TVA dry counties, and the State General Fund, while repealing an old provision and updating the law's language.

What This Bill Does

It changes the distribution so counties served by TVA receive a larger share of TVA in-lieu-of-taxes payments according to a stepped schedule that ends at 78% for 2005-06 and continues at that level. It authorizes 5% of the TVA in-lieu-of-taxes payments to go to dry counties and municipalities not served by TVA, with the exact distribution tied to ABC/1978-79 payments and adjusted by liquor tax revenue starting in 2010 until parity with TVA-distributed funds is reached. It allows certain counties (Limestone, Madison, Marshall, Morgan) to allocate their share by local law, and it preserves 3% increases after 2005 to be allocated locally. It also changes the State General Fund share to remain at a fixed amount until a specified dollar threshold is reached, after which it becomes 17% of the total in-lieu-of-taxes payments, and it repeals Section 40-28-5 while updating language and provisions for the act to take effect.

Who It Affects

• Counties served by TVA in Alabama receive a progressively larger share of TVA in-lieu-of-taxes payments, with a defined schedule and potential local-law adjustments for certain counties.
• Dry counties and municipalities not served by TVA, the State General Fund, counties with agriculture authorities, and counties like Limestone, Madison, Marshall, and Morgan are affected by allocation rules, local-law delegation, and offsets related to liquor tax revenues and ABC payments.

Key Provisions

• Amends Section 40-28-2 to set a schedule where TVA-served counties receive 20% (1979-80) rising to 78% (2005-06) and then the higher share thereafter.
• Allocates 5% of TVA in-lieu-of-taxes payments to dry counties and non-T.V.A.-served municipalities, distributed pro rata based on 1979 ABC payments and adjusted by local distributions; administered by county governments for municipalities.
• Beginning in 2010, reduces the dry-county/non-T.V.A.-served distribution by liquor tax revenues until the total liquor-tax distributions equal the TVA amounts received by those counties in 2009, after which all such distributions go to TVA-served counties; distribution among dry counties follows the 2006 increase pattern.
• Notwithstanding other rules, Limestone, Madison, Marshall, and Morgan counties may have their distributions allocated by local law.
• If an agriculture authority exists in a county, any proceeds previously allocated to the county or municipality will be distributed to the authority.
• 3% increases to the dry-county/non-T.V.A.-served allocations after September 30, 2005 are to be allocated by local legislation.
• The State General Fund share remains at the 2006 level until it reaches $17,840,233, and after that, the State General Fund will receive 17% of the total in-lieu-of-taxes payments.
• Section 40-28-5 is repealed, and nonsubstantive technical revisions update the Code language to current style.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tennessee Valley Authority