AL
Alabama Senate Bill SB296

Alabama 2022 Regular Session

Alabama Senate Bill SB296 Compare Versions

OldNewDifferences
11 1 SB296
2-2 217889-4
2+2 217889-1
33 3 By Senator Livingston (Constitutional Amendment)
44 4 RFD: Fiscal Responsibility and Economic Development
55 5 First Read: 08-MAR-22
66
7-Page 0 1 SB296
7+Page 0 1 217889-1:n:02/23/2022:SLU/cr LSA2022-17
88 2
99 3
10-4 ENGROSSED
10+4
1111 5
1212 6
13-7 A BILL
14-8 TO BE ENTITLED
15-9 AN ACT
16-10
17-11 Proposing an amendment to Amendment 772 to the
18-12 Constitution of Alabama of 1901, now appearing as Section
19-13 94.01 of the Official Recompilation of the Constitution of
20-14 Alabama of 1901, as amended, relating to economic development
21-15 projects of counties and municipalities; to revise
22-16 requirements for incurring indebtedness for economic
23-17 development purposes; to revise the requirement for
24-18 publication of notices for economic and industrial purposes;
25-19 and to ratify actions taken and agreements made under
26-20 Amendment 772 made prior to the ratification of this
27-21 amendment.
28-22 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
29-23 Section 1. The following amendment to the
30-24 Constitution of Alabama of 1901, as amended, is proposed and
31-25 shall become valid as a part thereof when approved by a
32-26 majority of the qualified electors voting thereon and in
33-Page 1 1 accordance with Sections 284, 285, and 287 of the Constitution
34-2 of Alabama of 1901, as amended:
35-3 PROPOSED AMENDMENT
36-4 "Amendment 772
37-5 "(a) The governing body of any county, and the
38-6 governing body of any municipality located therein, for which
39-7 a local constitutional amendment has not been adopted
40-8 authorizing any of the following, a county or municipality
41-9 shall have full and continuing power to do any of the
42-10 following:
43-11 "(1) Use public funds to purchase, lease, or
44-12 otherwise acquire real property, buildings, plants, factories,
45-13 facilities, machinery, and equipment of any kind, or to
46-14 utilize the properties heretofore purchased or otherwise
47-15 acquired on or before adoption of this amendment, and to
48-16 improve and develop the properties for use as sites for
49-17 industry of any kind or as industrial park projects,
50-18 including, but not limited to, grading and the construction of
51-19 roads, drainage, sewers, sewage and waste disposal systems,
52-20 parking areas, and utilities to serve the sites or projects.
53-21 "(2) Lease, sell, grant, exchange, or otherwise
54-22 convey, on terms approved by the governing body of the county
55-23 or the municipality, as applicable, all or any part of any
56-24 real property, buildings, plants, factories, facilities,
57-25 machinery, and equipment of any kind or industrial park
58-26 project to any individual, firm, corporation, or other
59-27 business entity, public or private, including any industrial
60-Page 2 1 development board or other public corporation or authority
61-2 heretofore or hereafter created by the county or the
62-3 municipality before or after adoption of this amendment, for
63-4 the purpose of constructing, developing, equipping, and
64-5 operating industrial, commercial, research, or service
65-6 facilities of any kind.
66-7 "(3) Lend its credit to, or grant public funds and
67-8 things of value in aid of, or to, any individual, firm,
68-9 corporation, or other business entity, public or private, for
69-10 the purpose of promoting the economic and industrial
70-11 development of the county or the municipality.
71-12 "(4) Become indebted and issue bonds, warrants which
72-13 may be payable from funds to be realized in future years,
73-14 notes, or other obligations, or evidences of indebtedness to a
74-15 an aggregate outstanding principal amount not exceeding an
75-16 amount equal to 50 percent of the assessed value of taxable
76-17 property therein as determined for state taxation, in order to
77-18 secure funds for the purchase, construction, lease, or
78-19 acquisition of any of the property described in subdivision
79-20 (1), or to be used in furtherance of any of the other powers
80-21 or authorities granted in this amendment. The obligations or
81-22 evidences of indebtedness may be issued upon the full faith
82-23 and credit of the county or any municipality or may be limited
83-24 as to the source of their payment.
84-25 "(b) The recital in any bonds, warrants, notes, or
85-26 other obligations, or evidences of indebtedness that they were
86-27 issued pursuant to this amendment, or that they were issued to
87-Page 3 1 provide funds to be used in furtherance of any power or
88-2 authority herein authorized shall be conclusive, and no
89-3 purchaser or holder thereof need inquire further. The bonds,
90-4 warrants, notes, or other obligations or evidences of
91-5 indebtedness issued hereunder shall not be considered do not
92-6 constitute an indebtedness of the county or any municipality
93-7 for the purpose of determining the borrowing capacity of the
94-8 county or municipality under this Constitution.
95-9 "(b)(c) In carrying out the purpose of this
96-10 amendment, neither the county nor any municipality located
97-11 therein a county or a municipality shall not be subject to
98-12 Section 93 or 94 of this Constitution, nor shall a county or
99-13 municipality be required to comply with the provisions of
100-14 Section 222 of this Constitution unless issuing general
101-15 obligation bond instruments establishing a requirement for
102-16 repayment. Each public corporation heretofore created by the
103-17 county or by any municipality located therein on or before the
104-18 adoption of this amendment, including specifically any
105-19 industrial development board incorporated under Article 4 of
106-20 Chapter 54 of Title 11 of the Code of Alabama 1975, and any
107-21 industrial development authority incorporated or
108-22 reincorporated under Chapter 92A of Title 11 of the Code of
109-23 Alabama 1975, and the Shoals Economic Development Authority
110-24 enacted under Act No. 95-512, 1995 Regular Session, are
111-25 validated and the powers granted to the board or authority
112-26 under its respective enabling legislation are validated,
113-27 notwithstanding any other provision of law or of this
114-Page 4 1 Constitution. The powers granted by this amendment may be
115-2 exercised as an exclusive alternative to, or cumulative with,
116-3 and in no way restrictive of, powers otherwise granted by this
117-4 Constitution or any law to the county, or to any municipality,
118-5 or to any agency, board, or authority created pursuant to the
119-6 laws of this state.
120-7 "(c)(d) Neither the county nor any municipality
121-8 located therein shall lend its credit to, or grant any public
122-9 funds or thing of value to, or in aid of, any private entity
123-10 under the authority of this amendment unless prior thereto to
124-11 doing so, both of the following are satisfied:
125-12 "(1) The action proposed to be taken by the county
126-13 or municipality is approved at a public meeting of the
127-14 governing body of the county or municipality, as the case may
128-15 be, by a resolution containing a determination by the
129-16 governing body that the expenditure of public funds for the
130-17 purpose specified will serve a valid and sufficient public
131-18 purpose, notwithstanding any incidental benefit accruing to
132-19 any private entity or entities.
133-20 "(2) At least seven days prior to the public
134-21 meeting, a notice is published in the a newspaper having the
135-22 largest circulation in circulation in the county or
136-23 municipality, as the case may be, describing in reasonable
137-24 detail the action proposed to be taken, a description of the
138-25 public benefits sought to be achieved by the action, and
139-26 identifying each individual, firm, corporation, or other
140-27 business entity to whom, or for whose benefit, the county or
141-Page 5 1 the municipality proposes to lend its credit or grant public
142-2 funds or thing of value.
143-3 "(e) For purposes of the foregoing, any sale, lease,
144-4 or other disposition of property for a price equal to the its
145-5 fair market value thereof shall not constitute the lending of
146-6 credit or a grant of public funds or thing of value in aid of
147-7 a private entity.
148-8 "(f) Nothing in this amendment shall authorize the
149-9 county commission to own or operate a cable television system.
150-10 "(d)(g) Any action taken, or agreement made, under
151-11 Amendment 772 by any county or municipality prior to the date
152-12 this amendment is ratified and confirmed in all respects as of
153-13 that date, except to the extent that its validity is being
154-14 challenged in appropriate judicial proceedings in any court of
155-15 competent jurisdiction on the date this amendment is ratified.
156-16 This amendment These amendatory provisions shall have
157-17 prospective application only. Any local constitutional
158-18 amendments previously adopted and any local law enacted
159-19 pursuant to such amendment shall remain in full force and
160-20 effect."
161-21 Section 2. An election upon the proposed amendment
162-22 shall be held in accordance with Sections 284 and 285 of the
163-23 Constitution of Alabama of 1901, now appearing as Sections 284
164-24 and 285 of the Official Recompilation of the Constitution of
165-25 Alabama of 1901, as amended, and the election laws of this
166-26 state.
167-Page 6 1 Section 3. The appropriate election official shall
168-2 assign a ballot number for the proposed constitutional
169-3 amendment on the election ballot and shall set forth the
170-4 following description of the substance or subject matter of
171-5 the proposed constitutional amendment:
172-6 "Proposing an amendment to revise Amendment 772 to
173-7 the Constitution of Alabama of 1901, as amended, to specify
174-8 that all counties and municipalities may exercise the
175-9 authority and powers granted by Amendment 772 to provide for
176-10 economic and industrial development; to permit notice for
177-11 Amendment 772 projects to be published in any newspaper in
178-12 circulation in the county or municipality; and to ratify all
179-13 actions and agreements of any county or municipality done
180-14 under Amendment 772 unless subject to pending judicial
181-15 proceedings on the date of adoption of this amendment.
182-16 "Proposed by Act ________."
183-17 This description shall be followed by the following
184-18 language:
185-19 "Yes ( ) No ( )."
186-Page 7 1
187-2
188-3 Senate
189-Read for the first time and referred to the Senate4
190-5 committee on Fiscal Responsibility and Economic
191-Development.......................................6 0.8-MAR-22
19213 7
193-Read for the second time and placed on the8
194-calendar..........................................9 0.9-MAR-22
195- 10
196-Read for the third time and passed as amended ....11 2.9-MAR-22
197-Yeas 3312
198-13 Nays 0
199-14
200-15
201-16 Patrick Harris,
202-17 Secretary.
203-18
14+8 SYNOPSIS: Under existing law, among other things,
15+9 Amendment 772 to the Constitution of Alabama of
16+10 1901, now appearing as Section 94.01 of the
17+11 Official Recompilation of the Constitution of
18+12 Alabama of 1901, as amended, authorizes counties
19+13 and municipalities to use public funds to acquire
20+14 real estate for economic and industrial
21+15 development; and Section 222 of the Constitution of
22+16 Alabama of 1901, as amended, prohibits counties and
23+17 municipalities from issuing bonds without a vote of
24+18 the people.
25+19 This bill would propose an amendment to
26+20 Amendment 772 to the Constitution of Alabama of
27+21 1901, as amended, to specify that counties and
28+22 municipalities are exempt from the prohibition
29+23 against issuing bonds under Amendment 772 without a
30+24 vote of the people; revise requirements for
31+25 publication of notice for economic and industrial
32+26 development projects; and ratify all actions and
33+27 agreements of any county or municipality done under
34+Page 1 1 Amendment 772 unless the action or agreement is
35+2 subject to pending judicial proceedings on the date
36+3 of ratification of this amendment.
37+4
38+5 A BILL
39+6 TO BE ENTITLED
40+7 AN ACT
41+8
42+9 Proposing an amendment to Amendment 772 to the
43+10 Constitution of Alabama of 1901, now appearing as Section
44+11 94.01 of the Official Recompilation of the Constitution of
45+12 Alabama of 1901, as amended, relating to economic development
46+13 projects of counties and municipalities; to revise
47+14 requirements for incurring indebtedness for economic
48+15 development purposes; to revise the requirement for
49+16 publication of notices for economic and industrial purposes;
50+17 and to ratify actions taken and agreements made under
51+18 Amendment 772 made prior to the ratification of this
52+19 amendment.
53+20 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
54+21 Section 1. The following amendment to the
55+22 Constitution of Alabama of 1901, as amended, is proposed and
56+23 shall become valid as a part thereof when approved by a
57+24 majority of the qualified electors voting thereon and in
58+25 accordance with Sections 284, 285, and 287 of the Constitution
59+26 of Alabama of 1901, as amended:
60+27 PROPOSED AMENDMENT
61+Page 2 1 "Amendment 772
62+2 "(a) The governing body of any county, and the
63+3 governing body of any municipality located therein, for which
64+4 a local constitutional amendment has not been adopted
65+5 authorizing any of the following, a county or municipality
66+6 shall have full and continuing power to do any of the
67+7 following:
68+8 "(1) Use public funds to purchase, lease, or
69+9 otherwise acquire real property, buildings, plants, factories,
70+10 facilities, machinery, and equipment of any kind, or to
71+11 utilize the properties heretofore purchased or otherwise
72+12 acquired on or before adoption of this amendment, and to
73+13 improve and develop the properties for use as sites for
74+14 industry of any kind or as industrial park projects,
75+15 including, but not limited to, grading and the construction of
76+16 roads, drainage, sewers, sewage and waste disposal systems,
77+17 parking areas, and utilities to serve the sites or projects.
78+18 "(2) Lease, sell, grant, exchange, or otherwise
79+19 convey, on terms approved by the governing body of the county
80+20 or the municipality, as applicable, all or any part of any
81+21 real property, buildings, plants, factories, facilities,
82+22 machinery, and equipment of any kind or industrial park
83+23 project to any individual, firm, corporation, or other
84+24 business entity, public or private, including any industrial
85+25 development board or other public corporation or authority
86+26 heretofore or hereafter created by the county or the
87+27 municipality before or after adoption of this amendment, for
88+Page 3 1 the purpose of constructing, developing, equipping, and
89+2 operating industrial, commercial, research, or service
90+3 facilities of any kind.
91+4 "(3) Lend its credit to, or grant public funds and
92+5 things of value in aid of, or to, any individual, firm,
93+6 corporation, or other business entity, public or private, for
94+7 the purpose of promoting the economic and industrial
95+8 development of the county or the municipality.
96+9 "(4) Become indebted and issue bonds, warrants which
97+10 may be payable from funds to be realized in future years,
98+11 notes, or other obligations, or evidences of indebtedness to a
99+12 an aggregate outstanding principal amount not exceeding an
100+13 amount equal to 50 percent of the assessed value of taxable
101+14 property therein as determined for state taxation, in order to
102+15 secure funds for the purchase, construction, lease, or
103+16 acquisition of any of the property described in subdivision
104+17 (1), or to be used in furtherance of any of the other powers
105+18 or authorities granted in this amendment. The obligations or
106+19 evidences of indebtedness may be issued upon the full faith
107+20 and credit of the county or any municipality or may be limited
108+21 as to the source of their payment.
109+22 "(b) The recital in any bonds, warrants, notes, or
110+23 other obligations, or evidences of indebtedness that they were
111+24 issued pursuant to this amendment, or that they were issued to
112+25 provide funds to be used in furtherance of any power or
113+26 authority herein authorized shall be conclusive, and no
114+27 purchaser or holder thereof need inquire further. The bonds,
115+Page 4 1 warrants, notes, or other obligations or evidences of
116+2 indebtedness issued hereunder shall not be considered do not
117+3 constitute an indebtedness of the county or any municipality
118+4 for the purpose of determining the borrowing capacity of the
119+5 county or municipality under this Constitution.
120+6 "(b)(c) In carrying out the purpose of this
121+7 amendment, neither the county nor any municipality located
122+8 therein a county or a municipality shall not be subject to
123+9 Section 93 or 94 of this Constitution or be required to comply
124+10 with Section 222 of this Constitution. Each public corporation
125+11 heretofore created by the county or by any municipality
126+12 located therein on or before the adoption of this amendment,
127+13 including specifically any industrial development board
128+14 incorporated under Article 4 of Chapter 54 of Title 11 of the
129+15 Code of Alabama 1975, and any industrial development authority
130+16 incorporated or reincorporated under Chapter 92A of Title 11
131+17 of the Code of Alabama 1975, and the Shoals Economic
132+18 Development Authority enacted under Act No. 95-512, 1995
133+19 Regular Session, are validated and the powers granted to the
134+20 board or authority under its respective enabling legislation
135+21 are validated, notwithstanding any other provision of law or
136+22 of this Constitution. The powers granted by this amendment may
137+23 be exercised as an exclusive alternative to, or cumulative
138+24 with, and in no way restrictive of, powers otherwise granted
139+25 by this Constitution or any law to the county, or to any
140+26 municipality, or to any agency, board, or authority created
141+27 pursuant to the laws of this state.
142+Page 5 1 "(c)(d) Neither the county nor any municipality
143+2 located therein shall lend its credit to, or grant any public
144+3 funds or thing of value to, or in aid of, any private entity
145+4 under the authority of this amendment unless prior thereto to
146+5 doing so, both of the following are satisfied:
147+6 "(1) The action proposed to be taken by the county
148+7 or municipality is approved at a public meeting of the
149+8 governing body of the county or municipality, as the case may
150+9 be, by a resolution containing a determination by the
151+10 governing body that the expenditure of public funds for the
152+11 purpose specified will serve a valid and sufficient public
153+12 purpose, notwithstanding any incidental benefit accruing to
154+13 any private entity or entities.
155+14 "(2) At least seven days prior to the public
156+15 meeting, a notice is published in the a newspaper having the
157+16 largest circulation in circulation in the county or
158+17 municipality, as the case may be, describing in reasonable
159+18 detail the action proposed to be taken, a description of the
160+19 public benefits sought to be achieved by the action, and
161+20 identifying each individual, firm, corporation, or other
162+21 business entity to whom, or for whose benefit, the county or
163+22 the municipality proposes to lend its credit or grant public
164+23 funds or thing of value.
165+24 "(e) For purposes of the foregoing, any sale, lease,
166+25 or other disposition of property for a price equal to the its
167+26 fair market value thereof shall not constitute the lending of
168+Page 6 1 credit or a grant of public funds or thing of value in aid of
169+2 a private entity.
170+3 "(f) Nothing in this amendment shall authorize the
171+4 county commission to own or operate a cable television system.
172+5 "(d)(g) Any action taken, or agreement made, under
173+6 Amendment 772 by any county or municipality prior to the date
174+7 this amendment is ratified and confirmed in all respects as of
175+8 that date, except to the extent that its validity is being
176+9 challenged in appropriate judicial proceedings in any court of
177+10 competent jurisdiction on the date this amendment is ratified.
178+11 This amendment These amendatory provisions shall have
179+12 prospective application only. Any local constitutional
180+13 amendments previously adopted and any local law enacted
181+14 pursuant to such amendment shall remain in full force and
182+15 effect."
183+16 Section 2. An election upon the proposed amendment
184+17 shall be held in accordance with Sections 284 and 285 of the
185+18 Constitution of Alabama of 1901, now appearing as Sections 284
186+19 and 285 of the Official Recompilation of the Constitution of
187+20 Alabama of 1901, as amended, and the election laws of this
188+21 state.
189+22 Section 3. The appropriate election official shall
190+23 assign a ballot number for the proposed constitutional
191+24 amendment on the election ballot and shall set forth the
192+25 following description of the substance or subject matter of
193+26 the proposed constitutional amendment:
194+Page 7 1 "Proposing an amendment to revise Amendment 772 to
195+2 the Constitution of Alabama of 1901, as amended, to specify
196+3 that all counties and municipalities may exercise the
197+4 authority and powers granted by Amendment 772 to provide for
198+5 economic and industrial development; to permit notice for
199+6 Amendment 772 projects to be published in any newspaper in
200+7 circulation in the county or municipality; and to ratify all
201+8 actions and agreements of any county or municipality done
202+9 under Amendment 772 unless subject to pending judicial
203+10 proceedings on the date of adoption of this amendment.
204+11 "Proposed by Act ________."
205+12 This description shall be followed by the following
206+13 language:
207+14 "Yes ( ) No ( )."
204208 Page 8