HB372INTRODUCED
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HB372
KLDEAU5-1
By Representatives Shedd, Ledbetter, Stadthagen, Lovvorn
RFD: Economic Development and Tourism
First Read: 21-Mar-24
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First Read: 21-Mar-24
SYNOPSIS:
This bill would create the Alabama Growth
Alliance, a public corporation governed by a board of
public and private leaders. The Alabama Growth Alliance
would be formed to coordinate the development,
tracking, as well as providing input and support for
the creation and maintenance of the state’s long-range
economic development strategy, annual objectives, and
key tactics to achieve the long-range
strategies.
A BILL
TO BE ENTITLED
AN ACT
To add Article 24, commencing with Section 41-10-870,
to Chapter 10, Title 41 of the Code of Alabama 1975; to create
the Alabama Growth Alliance; to provide legislative findings;
to provide for its incorporation; to provide for the creation
of a board; to provide for the powers and duties of the
corporation; to allow the corporation to enter into contracts;
to provide for amendments to the governing documents of the
corporation; and to provide for the dissolution of the
corporation.
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corporation.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This Act shall be known and may be cited as
the Alabama Growth Alliance Act.
Section 2. Article 24, commencing with Section
41-10-870, is added to Chapter 10, Title 41 of the Code of
Alabama 1975, to read as follows:
41-10-870. LEGISLATIVE FINDINGS
The Legislature finds and declares all of the
following:
(1) The State of Alabama has a great need to ensure the
long-term viability of the state’s economic development
successes.
(2) Other states have had significant success in
economic development by involving the private sector in
long-term planning to help identify and fill strategic gaps in
states efforts that are not currently addressed by existing
agencies, ensuring a comprehensive approach to economic growth
and development.
(3) It is believed that by taking advantage of private
sector expertise and support that exists within many chambers
of commerce and other organizations, the state will be able to
develop initiatives more rapidly and efficiently.
(4) By leveraging the strengths of both the public and
private sectors, the state can foster a more collaborative and
efficient approach to economic development, leading to more
innovative and effective solutions.
(5) A public-private partnership can supplement
existing state efforts to focus on the development of
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existing state efforts to focus on the development of
specific, high-growth industries where Alabama has competitive
advantages, ensuring the state becomes a national or global
leader in these sectors.
(6) By focusing on long-range planning, the
public-private partnership can ensure that Alabama’s economic
development efforts are sustainable and forward-thinking, thus
providing stability and predictability for businesses and
investors.
(7) States with proactive economic development
strategies, such as public-private partnerships, can be more
successful in attracting investment. Creation of a similar
model will help give Alabama a competitive edge in the
national and global market, helping to attract significant
business investments.
(8) It is desirable and in the public interest to
establish a public corporation governed by a board of public
and private leaders to be a part of the state’s economic
development strategies designed to sustain and enhance
Alabama’s long-term success, growth, and viability of its
economic development policies.
41-10-871. DEFINITIONS
For the purposes of this article, the following terms
have the following meanings:
(1) BOARD. The governing board of the corporation.
(2) CORPORATION. The Alabama Growth Alliance created by
this article as a public corporation having a legal existence
separate and apart from the state and any county,
municipality, or political subdivision.
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municipality, or political subdivision.
(3) ECONOMIC DEVELOPMENT ENTITY.
a. A nonprofit corporation that possesses all of the
following characteristics:
1. Is organized as a nonprofit corporation exempt from
federal income tax under Section 501(c) of the Internal
Revenue Code of 1986, as amended.
2. Has a record of, or can demonstrate that it is
capable of, serving the entire state on matters involving
economic development.
3. Has a record of, or can demonstrate that it is
capable of, developing, fostering, and implementing economic
development policies and strategies across Alabama.
4. Has received, or is eligible to receive, grant
funding from the state or from federal or private sources.
b. In determining whether a nonprofit corporation
qualifies as an economic development entity, the board may
attribute to the nonprofit corporation the experiences of its
officers, staff, and directors with other nonprofit
corporations.
41-10-872. INCORPORATION OF GROWTH ALLIANCE
(a) The Governor, the Speaker of the House of
Representatives, and the President Pro Tempore of the Senate
shall present to the Secretary of State an application, signed
by each of them, for the formation of the Alabama Growth
Alliance, as a public corporation, having a legal existence
separate and apart from the state and any county,
municipality, or political subdivision, which shall set forth
all of the following:
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all of the following:
(1) The name, office, and office location of each of
the applicants.
(2) The date on which each applicant was sworn into
office for his or her current term of office.
(3) The name of the proposed public corporation, which
shall be the Alabama Growth Alliance.
(4) The location of the principal office of the
proposed corporation.
(5) Provisions requiring the board to support the
Department of Commerce in the development of a recommended
annual strategic economic development plan for the state and
standards of measure to be used in measuring the corporation’s
achievements in executing the plan.
(6) Provisions requiring the board to review the
state’s primary economic development incentives on a biennial
basis and reviewing the effectiveness of the incentives to
create jobs, attract new business, encourage existing business
expansions, and achieve other goals as may be determined by
the board.
(7) Any other matter relating to the corporation that
the applicants may choose to insert and that is not
inconsistent with this article or state law.
(b) The application shall be subscribed and sworn to by
each applicant before a notary public. The Secretary of State
shall examine the application, and, if he or she finds that
the application substantially complies with the requirements
of this section, the application shall be filed and recorded
in an appropriate book of records in the office of the
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in an appropriate book of records in the office of the
Secretary of State.
(c) When the application has been made, filed, and
recorded as provided in subsection (b), the applicants shall
constitute a public corporation under the name stated in the
application, and the Secretary of State shall make and issue
to the applicants a certificate of incorporation pursuant to
this article, under the Great Seal of the State, and shall
record the certificate with the application. There shall be no
fees paid to the Secretary of State for any filing made by the
corporation pursuant to this article.
(d) Notwithstanding any provision of law to the
contrary, any corporation incorporated pursuant to this
section shall not be deemed to be a part of the state for any
purpose but shall be treated as a public corporation separate
and apart from the state.
41-10-873. BOARD OF GROWTH ALLIANCE
(a) The corporation shall be under the management and
control of a board of directors, and all powers necessary or
appropriate for the management and control of the corporation
shall be vested solely in the board. The board shall be
comprised of both ex officio members and at-large members, all
of whom shall be voting members of the board and shall be
considered in determining whether a quorum is present.
(b) The board shall have eleven members as follows:
(1) Five ex officio members, consisting of the
Governor, who shall be the chair, the Secretary of Commerce,
who shall be the co-chair, the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, and
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Representatives, the President Pro Tempore of the Senate, and
the chair of Innovate Alabama. The service of each ex officio
member shall run concurrently with his or her tenure in office
or position. Each ex officio member may appoint a person to
serve in his or her place at any meeting of the board or may
designate a person to serve in his or her place at all
meetings of the board until the term of the ex officio member
should end. The appointee or designee shall be counted for
purposes of a quorum and voting. Each ex officio member may
withdraw the appointment or designation of his or her
appointee or designee at any time.
(2) The Governor shall appoint six at-large members,
who shall each be persons in the private sector with
experience relevant to the purposes and activities of the
corporation including, but not limited to, experience with any
of the following:
a. Participating on boards of, or being employed by,
nonprofit corporations which promote economic development
throughout the state.
b. Having other experience relevant to statewide,
long-term economic development strategies including, but not
limited to, any of the following:
1. Performing enhanced, coordinated research to
identify targeted growth sectors.
2. Identifying sites for economic development and
successfully marketing the sites for major business site
selection opportunities.
3. Developing assessments of key issues impacting the
growth of Alabama’s existing business and industry, along with
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growth of Alabama’s existing business and industry, along with
strategies to address challenges and pursue opportunities.
(c) In making appointments of at-large members, the
Governor shall coordinate his or her appointments so that
diversity of gender, race, and geographical areas of the board
of directors is reflective of the makeup of the state.
(d)(1) The service of each at-large member shall begin
upon written acceptance of his or her appointment. Each member
shall serve a term of two years following such written
acceptance.
(2) Each at-large member shall continue to serve until
the member is reappointed, or a successor is appointed, to the
office.
(3) An at-large member may only serve a maximum of two
consecutive terms of office but may be reappointed after he or
she has spent at least two years without serving as an
at-large member.
(4) An at-large member may be removed by the Governor
for any reason, at which time the Governor shall appoint a
different person to serve.
(5) A person appointed to fill a vacancy shall serve
the remainder of the unexpired term and may be reappointed to
serve an additional term.
(e) No member shall receive compensation because of his
or her service as a member. Each member may be reimbursed for
actual and reasonable travel expenses incurred in the
performance of his or her duties as a member.
(f) A majority of the members shall constitute a quorum
for the transaction of business by the board, and decisions
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for the transaction of business by the board, and decisions
shall be made on the basis of a majority of the quorum then
present and voting. No vacancy in the membership of the board
or the voluntary disqualification or abstention of any member
shall impair the right of a quorum to exercise all of the
powers and duties of the board. Members of the board may
participate in meetings of the board in person, by means of
telephone conference, video conference, or other similar
communications equipment, so that all individuals
participating in the meeting may hear each other at the same
time. Participation by any such means shall constitute
presence in person at a meeting for all purposes, including
for purposes of establishing a quorum. The board shall be
subject to Chapter 25A of Title 36; provided, that in addition
to the reasons set forth in Section 36-25A-7, the board may go
into executive session to discuss sensitive matters the
disclosure of which would undermine or jeopardize economic
development, trade, or the objectives of the corporation.
(g) Any action required by this article to be taken at
a meeting of the board of directors of the corporation or any
action which may be taken at a meeting of the board of
directors or of a committee of the board of directors may be
taken without a meeting if a consent in writing, setting forth
the action so taken, is signed, either electronically or by
hand, by all of the directors or all of the members of the
committee of directors, as the case may be.
(h) The board may appoint other officers to perform
duties not inconsistent with this article or applicable law,
as the board deems necessary or appropriate.
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as the board deems necessary or appropriate.
(i) In addition to regular meetings of the board, as
may be provided by law or by bylaws adopted by the board,
special meetings of the board may be called by the chair
acting alone or by any three other members acting in concert,
in each case upon notice to each member given in person, by
email, by registered letter, or by other means. Notice to each
member may be waived upon the unanimous written consent of all
members, either before or after the meeting with respect to
which the notice would otherwise be required.
(j) Minutes of all board meetings shall be kept and
maintained in the records of the corporation.
41-10-874. POWERS OF GROWTH ALLIANCE
(a) The board shall have all of the powers necessary to
carry out and effectuate the purposes of this article
including the following powers:
(1) Provide input and support on the development,
monitoring, and updating of the long-range economic
development vision and strategies of the state.
(2) Support the development and implementation of
objectives and key tactics to achieve the long-range economic
development vision and strategies of the state.
(3) Identify opportunities and make recommendations to
the Governor regarding the coordination of economic
development efforts between state agencies, private
organizations, and other economic development entities and
stakeholders.
(4) Provide input and support related to the
establishment of a communication plan to ensure key
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establishment of a communication plan to ensure key
stakeholders are periodically informed on economic development
progress and results.
(5) Provide input and support in regards to biennially
measuring the effectiveness of key economic development
incentives, which shall include, but not be limited to, the
Alabama Jobs Act, the Growing Alabama Act, the Innovating
Alabama Act, the Site Evaluation Economic Development
Strategy, and the Tax Incentive Reform Act of 1992.
(6) Provide input on and support to implement the
following economic development objectives:
a. Increasing private investment in Alabama.
b. Advancing international and domestic trade
opportunities.
c. Marketing the state as a pro-economic growth
location for new investment.
d. Revitalizing, retaining, and expanding Alabama’s
manufacturing industries, and promoting emerging complementary
industries.
e. Assisting, promoting, and enhancing economic
opportunities in the state’s rural communities.
f. Promoting opportunities for minority-owned
businesses.
g. Identifying economic growth opportunities in
emerging sectors.
(7) Adopt, alter, and repeal bylaws for the regulation
and conduct of the corporation’s affairs and business, and for
the implementation of this article.
(8) Make and enter into contracts, leases, and
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(8) Make and enter into contracts, leases, and
agreements, and take other actions as may in its judgment be
necessary or desirable to accomplish the purposes of the
corporation and to exercise any power necessary for the
accomplishment of the purposes of the corporation or
incidental to the powers expressly set forth in this article.
(9) Appoint, employ, and contract with employees,
agents, advisors, consultants, and service providers
including, but not limited to, attorneys, accountants,
financial experts, and other advisors, consultants, and agents
as may in its judgment be necessary or desirable to accomplish
any purpose of the corporation or incidental to the powers
expressly set forth in this article, and to fix the
compensation of those persons.
(10) Manage, invest, and expend funds at its disposal.
(11) Lend its credit to, or grant monies and things of
value in aid of or to, any individual, firm, corporation, or
other business entity, public or private, as may in its
judgment be necessary or desirable to accomplish any purpose
of the corporation or incidental to the powers expressly set
forth in this article.
(12) Take any action necessary to exercise its rights
or fulfill its obligations relevant to the corporation under
state law.
(13) In addition to the foregoing, the board shall have
all of the powers necessary to carry out and effectuate the
purposes of this article; provided that nothing in this
article shall be construed to authorize the board to exercise
any power conferred by law on any agency, department, office,
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any power conferred by law on any agency, department, office,
or other instrumentality of state government. The powers set
forth in this section shall be construed broadly, so that the
failure to state a power of the board shall not be considered
a limitation upon the board, so long as the board shall find
that the power is necessary to allow the board to fulfill the
purpose of the corporation, as provided by this article. In
the event that the board should determine to add one or more
powers to effectuate this article, they may do so by amending
their application of incorporation.
(b) The board may enter into agreements with one or
more economic development entities to exercise any powers of
the corporation, if the agreement does both of the following:
(1) Requires regular reporting to the corporation by
the economic development entity.
(2) Allows for the reasonable costs of the economic
development entity to be reimbursed or otherwise paid only if
directly related to the fulfillment of the agreement, as
determined by the corporation.
(c) The board may make, enter into, and execute
contracts, agreements, and other instruments with, accept aid
and grants from, and cooperate with, any other person or
entity including, but not limited to, all of the following:
(1) The United States of America, the state, or any
agency, instrumentality, or political subdivision of either.
(2) For profit or nonprofit private entities.
(3) Public bodies, departments, or authorities
including, but not limited to, the executive departments of
the state, to act on behalf of the board in carrying out
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the state, to act on behalf of the board in carrying out
functions which the board determines are consistent with the
corporation's powers.
(d) The corporation shall be, and shall operate as, a
public corporation and shall have a legal existence separate
and apart from the state and any county, municipality, or
political subdivision.
41-10-875. GROWTH ALLIANCE CONTRACTS
The board may enter into contracts, leases, agreements,
investments, and may otherwise expend monies without
compliance with Article 5, commencing with Section 41-4-110,
of Chapter 4 of Title 41, and Chapter 2 of Title 39. Solely as
a result of entering into contracts, leases, agreements,
investments, or otherwise, no for-profit or nonprofit private
entity, nor the officers, employees, agents, or directors of
any of the foregoing, shall become subject to Chapter 25 or
Chapter 25A of Title 36; Article 5, commencing with Section
41-4-110, of Chapter 4 of Title 41; Chapter 2 of Title 39; or
Article 3, commencing with Section 36-12-40, of Chapter 12 of
Title 36.
41-10-876. AMENDMENTS
At any time, the board, by majority vote, may cause its
application for formation to be amended by having five of its
members file an amendment with the Secretary of State, which
shall be sworn to by each signatory thereto before a notary
public.
41-10-877. DISSOLUTION
At any time, the board, by at least three-quarters
vote, may dissolve the corporation by having at least
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vote, may dissolve the corporation by having at least
three-quarters of its members file with the Secretary of State
an application for dissolution, which shall be sworn to by
each signatory thereto by a notary public. Upon the filing of
the application for dissolution, the corporation shall cease
to exist. The Secretary of State shall file and record the
application for dissolution, and shall make and issue, under
the Great Seal of the State, a certificate that the
corporation is dissolved, and shall record the certificate
with the application for dissolution. Title to all property
held in the name of the corporation shall be vested in the
state upon dissolution of the corporation.
41-10-878. REPORT TO LEGISLATURE
Prior to each legislative session beginning in 2026,
the corporation shall submit an annual report to the
Legislature detailing the corporation’s efforts to accomplish
the goals pursuant to this article.
Section 3. This act shall become effective October 1,
2024, following its passage and approval by the Governor, or
its otherwise becoming law.
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