HB581 Alabama 2025 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

2025 Regular Session

Title

Morgan County, distribution of county's TVA in-lieu-of-taxes payments further provided for

Summary

HB581 changes how Morgan County TVA in-lieu-of-taxes payments are distributed, creates a dedicated Legislative Delegation Fund for a county legislative office, and repeals several older distribution rules.

What This Bill Does

It allocates parts of the three-percent increase to new uses (45% to the Morgan County Legislative Delegation Fund for a legislative office, 9% to the Morgan County Rescue Squad, and 10% to the Decatur-Morgan County Entrepreneurial Center), with the remainder distributed under a revised framework that affects education boards and local governments. It creates and funds the Morgan County Legislative Delegation Fund to hire staff and maintain office space, governed by delegation-approved resolutions and audited annually. It repeals five existing TVA distribution sections and sets Oct 1, 2025 as the effective date, with certain debt-service and economic-development fund provisions lasting until 2042 for some parts.

Who It Affects

• Morgan County residents and local governments, who will see changes in how TVA in-lieu-of-taxes payments are allocated among education boards, local governments, debt service, and county funds.
• The Morgan County Legislative Delegation and county legislators, who will control and administer the new Legislative Delegation Fund to establish and operate a county legislative office (staffing, space, equipment) with annual audits.

Key Provisions

• Amends Section 45-52-161.02 to allocate 45% of the three-percent increase to the Morgan County Legislative Delegation Fund for a legislative office, 9% to the Morgan County Rescue Squad, and 10% to the Decatur-Morgan County Entrepreneurial Center; the remaining funds follow a revised distribution plan and certain existing sections.
• Creates and funds the Morgan County Legislative Delegation Fund to establish, equip, and maintain a legislative office; decisions on use of funds are made by the delegation through resolutions; expenditures include staff, office space, equipment, and grants for public purposes; funds roll over year to year and are audited annually.
• Maintains the Morgan County Economic Development Fund through the Morgan County Industrial Park and Economic Development Cooperative District for economic purposes benefiting the county, with funds invested and available as allowed by law; amounts remaining on Sep 30, 2025 stay in the fund after Oct 1, 2025.
• Repeals Sections 45-52-161.03, 45-52-161.04, 45-52-161.05, 45-52-161.06, and 45-52-161.07, which previously governed TVA money distribution.
• Defines the distribution of the 75-percent TVA payment: 20% to participating boards of education by Foundation Program shares, 20% by population served, and the remainder distributed under the new provisions (including debt service, economic development funding, and local government distributions).
• Includes a debt-service provision allowing up to $1.5 million in the current bond year to be directed to debt service; up to $200,000 of remaining funds to raise the Morgan County Economic Development Fund to $1,000,000; and the rest distributed to participating local governments by population, with the remainder going to the county general fund; the debt-service and related provisions have a sunset around 2042.
• Effective date is October 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

Morgan County