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HB289 Alabama 2025 Session

Updated Feb 22, 2026
Notable

Summary

Session
2025 Regular Session
Title
Marshall County; Tennessee Valley Authority (TVA) in-lieu-of-tax payments distribution
Summary

HB289 changes how Marshall County’s Tennessee Valley Authority in-lieu-of-taxes payments are distributed, spelling out who gets money and how much.

What This Bill Does

The bill amends Section 45-48-161 to set an annual distribution of TVA in-lieu-of-taxes payments for Marshall County: 25% of the total goes to the local school boards on a per-pupil basis; 4% of the remaining 75% (or a minimum amount of $240,000, whichever is greater) funds the Marshall County Legislative Delegation Office, with unspent money usable for education or economic development projects if approved unanimously by the delegation; the remaining 71% is allocated per the statute and reviewed every four years, including a set aside (about 6% of the 71% portion, with a minimum specified) for the Marshall County Economic Development Office to hire a director and staff for recruiting industries and jobs. The bill also allows money previously in the Economic Development Board’s designated fund to be released for new allocations, and it lists specific annual allocations to various local agencies and services. Any funds not allocated after these items go to the county governing body to distribute as provided by law. The act takes effect June 1, 2025.

Who It Affects
  • Marshall County government entities and school systems (including the Marshall County Board of Education and other city school boards) that receive defined shares of TVA in-lieu-of-taxes payments and related funding.
  • Local organizations and service providers (economic development office, arts council, health care, tourism bureau, domestic violence coalition, CASA, RSVP, ambulance services, and various colleges and community programs) that receive specified dollar allocations or program support.
Key Provisions
  • Amends Section 45-48-161 to govern annual TVA in-lieu-of-taxes distributions for Marshall County among schools, county offices, ED, and local agencies.
  • Allocates 25% of total TVA in-lieu-of-taxes payments to school boards on a per-pupil basis using enrollment data from the last day of the first monthly attendance report of the school year.
  • Allocates 4% of the remaining 75% (or a minimum of $240,000, whichever is greater) to the Marshall County Legislative Delegation Office; unspent funds may be used for education or economic development projects with unanimous consent of the delegation.
  • Allocates the remaining 71% funds, with a review every four years, and assigns about 6% of this portion (subject to a minimum) to the Marshall County Economic Development Office to hire a director and staff for industrial recruitment; the director is employed by the Economic Development Board.
  • Allows money previously allocated to the Marshall County Economic Development Board from a designated fund to be released for further allocation at the board’s direction.
  • Provides specific annual allocations to multiple entities (e.g., $30,000 for school resource officers; $15,000 to the EDA; $25,000 to Mountain Valley Council on the Arts; ambulance-related funds for Albertville and Arab/Boaz; $50,000 to Mountain Lakes Behavioral Health Care; $18,000 to the CVB; $25,000 to the Coalition Against Domestic Violence; $25,000 to CASA of Marshall County; $25,000 to RSVP; $25,000 to Snead State Community College).
  • All remaining funds after these allocations go to the county governing body to distribute to county and municipalities as provided by law.
  • Effective date: June 1, 2025.
AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects
Marshall County

Bill Actions

S

Pending Senate Local Legislation

S

Read for the first time and referred to the Senate Committee on Local Legislation

H

Motion to Read a Third Time and Pass - Adopted Roll Call 257

H

Third Reading in House of Origin

H

Read for the Second Time and placed on the Calendar

H

Reported Out of Committee House of Origin

H

Pending House Local Legislation

H

Read for the first time and referred to the House Committee on Local Legislation

Calendar

Hearing

House Local Legislation Hearing

Room 617 at 09:35:00

Bill Text

Votes

Motion to Read a Third Time and Pass - Roll Call 257

February 27, 2025 House Passed
Yes 10
Abstained 93
Absent 1

Third Reading in House of Origin

February 27, 2025 House Passed
Yes 57
Abstained 45
Absent 2

HBIR: Passed by House of Origin

February 27, 2025 House Passed
Yes 57
Abstained 45
Absent 2

Documents

Source: Alabama Legislature