AL HB362

Amends Section 40-28-2 of the Alabama Code to revise the distribution of Tennessee Valley Authority in-lieu-of-taxes payments to T.V.A.-served counties, increasing the percentage allocation from 75% to 78% beginning in fiscal year 2005-2006 and each fiscal year thereafter.

Establishes that the State General Fund distribution shall remain at the level received on July 1, 2006 until reaching $17,840,233, after which the state receives 17 percent of total in-lieu-of-taxes payments.

Provides that distributions to Limestone County, Madison County, Marshall County, and Morgan County shall be allocated by local law, and requires any proceeds to be distributed to agricultural authorities established in counties pursuant to Article 3 of Chapter 20 of Title 11.

Specifies that distributions to dry counties and municipalities not served by T.V.A. shall be reduced by amounts allocated from liquor tax revenues under Section 40-28-5 until aggregate liquor tax distributions equal the T.V.A. payment amounts from fiscal year 2009.

Becomes effective on the first day of the third month following passage and approval by the Governor.