SB167INTRODUCED
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SB167
UYESDXX-1
By Senators Coleman, Hatcher, Coleman-Madison, Beasley,
Smitherman, Singleton, Stewart
RFD: Fiscal Responsibility and Economic Development
First Read: 27-Feb-24
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6 UYESDXX-1 02/22/2024 CNB (L)bm 2024-646
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First Read: 27-Feb-24
SYNOPSIS:
Under existing law, the Alabama Jobs Act
provides certain incentives to allow the state to
foster economic development through the recruitment of
quality projects and the expansion of existing
businesses within Alabama.
This bill would provide that a business may not
receive certain incentives if the company, its
subsidiaries, or suppliers have engaged in human
trafficking or violated the Fair Labor Standards Act of
1938 and would provide if it is determined a company
has committed violations, all or part of the jobs act
incentives may be recaptured.
A BILL
TO BE ENTITLED
AN ACT
Relating to the Alabama Jobs Act; to amend Section
40-18-373 and Section 40-18-374, as last amended by Act
2023-34, 2023 Regular Session, Code of Alabama 1975, to
provide that a business may not receive certain incentives if
the company, its subsidiaries, or suppliers have engaged in
human trafficking or violated the Fair Labor Standards Act of
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human trafficking or violated the Fair Labor Standards Act of
1938 and would provide if violations were committed, all or
part of the jobs act incentives may be recaptured.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-373 and Section 40-18-374, as
last amended by Act 2023-34, 2023 Regular Session, Code of
Alabama 1975, are amended to read as follows:
"§40-18-373
In order for a company to be an approved company, all
of the following shall occur:
(1) For any company that proposes a qualifying project,
the Secretary of Commerce shall make all of the following
findings:
a. That the project is in fact a qualifying project;
b. That the qualifying project will not decrease,
directly or indirectly, Alabama's exports; and
c. That the amount of tax incentives sought are
exceeded by anticipated revenues for the state, including
income, property, business privilege, utility, gross receipts,
sales, and use tax revenues that are generated by the economic
activity resulting from the project, as they arise from the
following aspects of the qualifying project:
1. Construction activities related to the qualifying
project;
2. The purchase of building materials and the initial
equipping of the qualifying project;
3. The subsequent equipping of the qualifying project;
and
4. The operation of the qualifying project.
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4. The operation of the qualifying project.
d. That neither the company nor its subsidiaries or
suppliers have engaged in any act or practice that violates
the human trafficking laws as provided in Sections 13A-6-152
and 13A-6-153, or federal child labor provisions of the Fair
Labor Standards Act of 1938, 29 U.S.C. § 203.
(2) Upon making affirmative findings on the criteria
set forth in subdivision (1) that are applicable , the
Secretary of Commerce shall recommend to the Governor that the
company be designated as an approved company. The name of the
company and information collected about it the company shall
be forwarded to the Governor.
(3) After reviewing the information provided by the
Secretary of Commerce, the Governor shall also determine
whether the company meets the criteria set forth in
subdivision (1). If the Governor makes such a finding, the
company shall be an approved company."
"§40-18-374
(a) An incentivized company may claim either or both of
the jobs act incentives, to the extent provided in the project
agreement.
(b) In order for an incentivized company to claim the
jobs act incentives, the Governor and the incentivized company
shall execute a project agreement. The agreement shall contain
all of the following:
(1) The name of the incentivized company.
(2) The location of the qualifying project.
(3) The activity to be conducted at the qualifying
project.
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project.
(4) The jobs act incentives to be granted.
(5) The capital investment to be made at the qualifying
project.
(6) The time period for the capital investment to be
made at the qualifying project.
(7) The number of employees at the qualifying project.
(8) The anticipated wages to be paid to or for the
benefit of employees during the incentive period for the jobs
created.
(9) The dates or conditions that shall begin the
running of the incentive periods for applicable jobs act
incentives.
(10) The lengths of the incentive periods for the jobs
act incentives.
(11) Any annual or aggregate limitations on the amount
of either or both of the jobs act incentives that can be
claimed during an incentive period.
(12) Provisions governing the recapture of all or part
of the jobs act incentives awarded to the qualifying project,
should the approved company default on its obligations in the
project agreement.
(13) Provisions governing the recapture of all or part
of the jobs act incentives awarded to the qualifying project,
should the approved company, its subsidiaries, or suppliers
engage in any act or practice that violates the human
trafficking laws as provided in Sections 13A-6-152 and
13A-6-153, or federal child labor provisions of the Fair Labor
Standards Act of 1938, 29 U.S.C. § 203.
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Standards Act of 1938, 29 U.S.C. § 203.
(13)(14) Whether the project agreement may be assigned
by the approved company to some other purchaser, assignee, or
successor.
(14)(15) Any other terms, conditions, and limitations
that this article or the Governor may require for an
incentivized company to qualify for and receive a jobs act
incentive.
(15)(16) Any other terms the parties deem necessary or
desirable.
(c) The Governor may decrease the amounts and durations
of the jobs act incentives to ensure that the anticipated
revenues for the state will exceed the amount of tax
incentives sought."
Section 2. This act shall become effective on October
1, 2024.
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