SB308 Alabama 2022 Session

Summary

Primary Sponsor

Tom ButlerSenator

Republican

Session

Regular Session 2022

Title

Madison Co., Tennessee Valley Authority, payments in-lieu-of-taxes increased by Sec. 40-28-2, Code of Alabama 1975, portion of increases distrib. to county legislative delegation office, Sec. 45-45-161 am'd.

Summary

This bill changes how Madison County's share of TVA in-lieu-of-taxes payments are distributed, creating a dedicated legislative delegation office and setting new funding rules for schools, municipalities, and road projects.

What This Bill Does

It amends Section 45-45-161 to allocate up to 1% of the TVA in-lieu payments to establish and fund the Madison County Legislative Delegation Office, with spending decisions made by the delegation and annual audits. The remainder is distributed to schools, county and municipal governments through a detailed formula and several earmarks (including outdoor athletic facilities). It also sets up reimbursements to municipal school systems for certain losses, creates funds for road projects through the delegation office, and states that future growth beyond a specified rate (excluding a set 3% allocation) goes to the delegation office; any post-2010 increases are also directed to the delegation office. The act takes effect immediately upon passage.

Who It Affects

• Madison County Legislative Delegation Office and Madison County Commission — will receive up to 1% of TVA in-lieu-of-taxes payments and manage how those funds are spent, with annual audits and discretionary use for operations and other county purposes.
• County and municipal school systems (including City of Huntsville, City of Madison, and other municipalities) — receive the majority of the remaining funds, allocated by a formula based on attendance and with specific earmarks for athletic facilities and other obligations.
• Municipal governments within Madison County — receive portions of funds under per-capita and municipal allocations, with distributions split between school systems and municipal general funds as described in the bill.
• Taxpayers and local governments subject to the new funding rules — are affected by the new distribution priorities, road project funding commitments, and rollover of unspent funds.

Key Provisions

• Up to 1% of Madison County's TVA in-lieu-of-taxes payments shall be used to establish, equip, and maintain a Madison County Legislative Delegation Office, with spending decisions made by a concurrent majority of the delegation and annual audits.
• The remaining funds shall be prorated as follows: 71% to the county and municipal school systems based on average daily attendance membership, with specific annual earmarks (e.g., $40,000 to each of the five county high schools for outdoor facilities, $10,000 to City of Madison middle schools, and $250,000 to the county for outdoor athletic facilities).
• Municipal school losses incurred under this section shall be reimbursed by the county for the first three fiscal years after February 23, 2010, with decreasing reimbursement amounts in subsequent years.
• 9% of the remaining money shall go to the Madison County General Fund.
• 1% of the remaining money shall be allocated to municipal schools designated as academically alert or caution, thereafter continuing under the 71% formula as applicable.
• 19.5% of the remaining money shall go to the City of Huntsville General Fund, with 15% earmarked for Huntsville City School System.
• 0.5% of the remaining money shall be paid to incorporated municipalities within Madison County on a per-capita basis.
• 20% of the remaining money shall go to the municipal general funds of specified cities (Huntsville, Madison, New Hope, Owens Crossroad Roads, Gurley, Triana) based on population; distributions within each municipality assign 65% to the county school system and 35% to the municipal general fund.
• A 3% increase to Madison County pursuant to Section 40-28-2 shall be paid to the Madison County Delegation Office for road projects in defined fiscal years, with escrow if projects are unfinished.
• Any future growth in excess of 2.5% (excluding the 3% delegation allocation) shall be distributed to the Madison County Legislative Delegation Office.
• Any increase in funding received by Madison County from legislation enacted after February 23, 2010, shall be distributed to the Madison County Legislative Delegation Office.
• The act becomes effective immediately upon passage.

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

Subjects

Madison County