HB44 Summary

• Amends Section 40-28-2 of the Alabama Code to redistribute Tennessee Valley Authority (TVA) in-lieu-of-taxes payments, increasing the state's transfer to TVA-served counties from 75% to 78% beginning fiscal year 2005-2006.

• Directs that beginning fiscal year 2010, distributions to dry counties and municipalities not served by TVA shall be reduced by amounts equal to liquor tax revenues allocated to those jurisdictions until liquor tax distributions equal the T.V.A. payments those counties received in fiscal year 2009.

• Reallocates liquor tax revenues from the Public Welfare Trust Fund, Special Mental Health Fund, and State General Fund to dry counties and municipalities not served by TVA, with the state retaining 17% of in-lieu-of-taxes payments once they reach $17,840,233 annually.

• Requires Limestone County, Madison County, Marshall County, and Morgan County to allocate their additional distributions by local law, with funds held separately until local allocation laws become effective.

• Becomes effective immediately upon passage and gubernatorial approval, having been passed by the legislature over the Governor's objections.