HB362 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. 40-28-2 am'd.

Summary

HB362 would change how Tennessee Valley Authority in-lieu-of-taxes payments are distributed among TVA-served and certain non-TVA counties, and update related code language.

What This Bill Does

It revises the distribution schedule so TVA-served counties receive a larger share over time (20% in 1979-80 rising to 78% from 2005-06 onward). It adds a 5% distribution to dry counties and non-TVA-served municipalities, allocated based on 1978-79 ABC payments, with an offset starting in 2010 that reduces those shares by liquor-tax revenues until reaching the 2009 TVA distribution level, after which the offset funds go to TVA-served counties. It also fixes how the State General Fund portion is distributed—holding the 2006 level until a specified amount is reached, then giving the state 17% of all TVA payments. Additionally, it allows certain counties to allocate funds by local law, directs some funds to agriculture authorities, and preserves other nonsubstantive language updates.

Who It Affects

• TVA-served counties, which would receive higher percentages of TVA in-lieu-of-taxes payments over time under the revised schedule.
• Dry counties and municipalities not served by TVA, which would receive a 5% share allocated by historical ABC payment methods (subject to offset by liquor-tax revenues starting in 2010).
• State General Fund, which would receive a fixed level of TVA payments until a threshold is met, then 17% of total TVA payments thereafter.
• Counties with agriculture authorities, which may have funds redirected to the authority instead of the county or municipality as of the effective date.
• Limestone, Madison, Marshall, and Morgan counties, whose additional distributions may be allocated by local law.
• Counties administering the distribution to municipalities, since some allocations to dry counties/non-TVA areas are managed by the county governing body.
• Dry counties eligible for ABC-type payments, which must receive at least their 1978-79 ABC payments.
• Counties with existing agricultural authorities, where proceeds previously allocated to counties/municipalities could be redirected to the authority.

Key Provisions

• Section 40-28-2(a): Establishes a stepped distribution schedule for TVA-served counties, starting at 20% (1979-80) and increasing to 78% in 2005-06 and each year thereafter.
• Section 40-28-2(a)(c)(1): Adds 5% of TVA in-lieu-of-taxes payments for dry counties and non-TVA-served municipalities, allocated based on 1978-79 ABC payments.
• Section 40-28-2(a)(c)(1): Beginning in 2010, the dry counties/non-TVA areas' share is reduced by liquor tax revenues until the total matches the 2009 TVA distribution, after which reductions go to TVA-served counties.
• Section 40-28-2(a)(c)(1): Provisions for Limestone, Madison, Marshall, and Morgan counties to receive allocations by local law; funds related to certain Acts and agriculture authorities are treated specially.
• Section 40-28-2(b): Increases after September 30, 2005 (3% increases) are to be allocated by local legislation for TVA-served counties.
• Section 40-28-2(c)(2): Effective transfers after July 1, 2006 fix the State General Fund amount at the 2006 level until $17,840,233 is reached, after which the state receives 17% of total TVA payments.
• Section 40-28-2(d): TVA-served dry counties eligible for ABC payments must receive at least their 1978-79 ABC payments.
• Section 2: Effective date provisions and nonsubstantive technical updates to current Code language.

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