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FISCAL NOTE
House Bill 417
Committee: Economic Development and
Tourism
Sponsor: Representative Danny Crawford
Analyst: Jennifer Farish Date: 04/16/2024
House Bill 417 as reported by the Committee on Economic Development and Tourism would
authorize the creation of the Agriculture Exhibition Center Corporation to be governed by a
5-member board of directors to construct, develop, and operate the Alabama Farm Center for the
promotion, showcasing, and facilitating education regarding all facets of the agricultural
industry and advancing agricultural business and workforce development in this state. The bill
would authorize the county where the Alabama Farm Center is located, as well as each
municipality located in the county, to lease, sell, or convey property and appropriate public
funds to the Corporation. The bill would deem the Corporation an economic development
organization, for purposes of the Growing Alabama Act allowing the Corporation to apply
directly to the Department of Commerce for tax credits to undertake construction, management,
and leasing of the Alabama Farm Center.
Additionally, this bill would exempt the Corporation from payment of: (1) all state, county, and
municipal sales and use taxes; (2) all state, county, and local ad valorem taxes; and (3) any other
taxes levied by a county, municipality, or other political subdivision of this state, including,
license and excise taxes, which would reduce potential receipts to the State General Fund,
Education Trust Fund, county and municipal funds, by an undetermined amount dependent upon
the amount of taxes exempted by this bill that would otherwise have been collected by state or
local governments. This bill would require local taxing authorities to rebate county or municipal
sales and use tax proceeds collected by the Corporation back to the corporation. This bill would
further authorize the Corporation to enter revenue sharing agreements with the County
Commission and municipalities to share any revenue generated by the Corporation outside of
the operational area of the Corporation. FN-7SP4E2V-2
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the operational area of the Corporation.
This bill would also allow the corporation to: (1) accept pledges of revenues and grants from
government entities; (2) sell or lease its property to government entities; (3) enter into financing
agreements with state agencies that requires the authority to mortgage its property; (4) invest
funds; (5) accept lease payments; (6) issue bonds; (7) make loans; (8) establish subsidiaries
other corporations; (9) enter into design-build contracts; and (10) borrow money from any
government entity.
This could also increase the administrative obligations of the Department of Examiners of
Public Accounts to biennially audit the corporation.