SB256 Alabama 2023 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular Session 2023

Title

Relating to any county where an agricultural authority has been incorporated pursuant to Article 3 of Chapter 20, Title 11, Code of Alabama 1975; to provide, under certain conditions, for a portion of Tennessee Valley Authority in-lieu-of-taxes payments distributed to the county pursuant to Section 40-28-2, Code of Alabama 1975, to be distributed to the agricultural authority in the county to be used for the purposes of the authority.

Summary

SB256 would redirect 70% of TVA in-lieu-of-taxes payments from certain Alabama counties to their agricultural authorities, but only with local delegation approval and only in counties where an agricultural authority existed before September 1, 2017.

What This Bill Does

If a county has an agricultural authority incorporated before September 1, 2017, 70% of the TVA in-lieu-of-taxes payments paid to the county under Section 40-28-2 would be distributed to the county's agricultural authority, with approval by a majority of the local legislative delegation. The funds would be used for the purposes of the agricultural authority, which are to construct and operate facilities to promote agricultural business and economic development. The act repeals conflicting laws and becomes effective immediately after the governor approves it.

Who It Affects

• Agricultural authorities in counties with pre-2017 incorporation: would receive 70% of TVA in-lieu-of-taxes payments to fund the authority's activities.
• County governments and residents in those counties: could see a portion of in-lieu-of-taxes payments redirected away from general county use, subject to approval by the local legislative delegation.

Key Provisions

• Section 1: In counties with an agricultural authority incorporated before Sept. 1, 2017, 70% of TVA in-lieu-of-taxes payments to the county shall be distributed to the agricultural authority, upon approval by a majority vote of the local legislative delegation, to be used for the authority's purposes.
• The funds must be used for the purposes of the agricultural authority (constructing and operating facilities to promote agricultural business and economic development).
• Section 2: Repeals any laws that conflict with this act.
• Section 3: The act becomes effective immediately upon approval by the Governor.

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