AL
Alabama Senate Bill SB167

Alabama 2024 Regular Session

Alabama Senate Bill SB167 Compare Versions

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55 By Senators Coleman, Hatcher, Coleman-Madison, Beasley,
66 Smitherman, Singleton, Stewart
77 RFD: Fiscal Responsibility and Economic Development
88 First Read: 27-Feb-24
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14-6 SB167 Engrossed
14+6 UYESDXX-1 02/22/2024 CNB (L)bm 2024-646
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1616 First Read: 27-Feb-24
17+SYNOPSIS:
18+Under existing law, the Alabama Jobs Act
19+provides certain incentives to allow the state to
20+foster economic development through the recruitment of
21+quality projects and the expansion of existing
22+businesses within Alabama.
23+This bill would provide that a business may not
24+receive certain incentives if the company, its
25+subsidiaries, or suppliers have engaged in human
26+trafficking or violated the Fair Labor Standards Act of
27+1938 and would provide if it is determined a company
28+has committed violations, all or part of the jobs act
29+incentives may be recaptured.
1730 A BILL
1831 TO BE ENTITLED
1932 AN ACT
2033 Relating to the Alabama Jobs Act; to amend Section
21-40-18-374, as last amended by Act 2023-34, 2023 Regular
22-Session, Code of Alabama 1975; to provide any jobs act
23-incentives awarded to an incentivized company may be
24-recaptured if the incentivized company or a related company
25-engaged in human trafficking violations or violated the Fair
26-Labor Standards Act of 1938.
27-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
28-Section 1. Section 40-18-374, as last amended by Act
29-2023-34, 2023 Regular Session, Code of Alabama 1975, is
30-amended to read as follows:
31-"§40-18-374
32-(a) An incentivized company may claim either or both of
33-the jobs act incentives, to the extent provided in the project
34-agreement.
35-(b) In order for an incentivized company to claim the
36-jobs act incentives, the Governor and the incentivized company
37-shall execute a project agreement. The agreement shall contain
38-all of the following:
39-(1) The name of the incentivized company.
34+40-18-373 and Section 40-18-374, as last amended by Act
35+2023-34, 2023 Regular Session, Code of Alabama 1975, to
36+provide that a business may not receive certain incentives if
37+the company, its subsidiaries, or suppliers have engaged in
38+human trafficking or violated the Fair Labor Standards Act of
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69-(1) The name of the incentivized company.
70-(2) The location of the qualifying project.
71-(3) The activity to be conducted at the qualifying
72-project.
73-(4) The jobs act incentives to be granted.
74-(5) The capital investment to be made at the qualifying
75-project.
76-(6) The time period for the capital investment to be
77-made at the qualifying project.
78-(7) The number of employees at the qualifying project.
79-(8) The anticipated wages to be paid to or for the
80-benefit of employees during the incentive period for the jobs
81-created.
82-(9) The dates or conditions that shall begin the
83-running of the incentive periods for applicable jobs act
84-incentives.
85-(10) The lengths of the incentive periods for the jobs
86-act incentives.
87-(11) Any annual or aggregate limitations on the amount
88-of either or both of the jobs act incentives that can be
89-claimed during an incentive period.
90-(12) Provisions governing the recapture of all or part
91-of the jobs act incentives awarded to the qualifying project,
92-should the approved company default on its obligations in the
93-project agreement or should the incentivized company or a
94-related company engage in any act or practice that violates
95-the human trafficking laws as provided in Sections 13A-6-152
96-and 13A-6-153, or federal child labor provisions of the Fair
97-Labor Standards Act of 1938, 29 U.S.C. § 203 .
68+human trafficking or violated the Fair Labor Standards Act of
69+1938 and would provide if violations were committed, all or
70+part of the jobs act incentives may be recaptured.
71+BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
72+Section 1. Section 40-18-373 and Section 40-18-374, as
73+last amended by Act 2023-34, 2023 Regular Session, Code of
74+Alabama 1975, are amended to read as follows:
75+"§40-18-373
76+In order for a company to be an approved company, all
77+of the following shall occur:
78+(1) For any company that proposes a qualifying project,
79+the Secretary of Commerce shall make all of the following
80+findings:
81+a. That the project is in fact a qualifying project;
82+b. That the qualifying project will not decrease,
83+directly or indirectly, Alabama's exports; and
84+c. That the amount of tax incentives sought are
85+exceeded by anticipated revenues for the state, including
86+income, property, business privilege, utility, gross receipts,
87+sales, and use tax revenues that are generated by the economic
88+activity resulting from the project, as they arise from the
89+following aspects of the qualifying project:
90+1. Construction activities related to the qualifying
91+project;
92+2. The purchase of building materials and the initial
93+equipping of the qualifying project;
94+3. The subsequent equipping of the qualifying project;
95+and
96+4. The operation of the qualifying project.
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126+4. The operation of the qualifying project.
127+d. That neither the company nor its subsidiaries or
128+suppliers have engaged in any act or practice that violates
129+the human trafficking laws as provided in Sections 13A-6-152
130+and 13A-6-153, or federal child labor provisions of the Fair
127131 Labor Standards Act of 1938, 29 U.S.C. § 203.
128-(13) Whether the project agreement may be assigned by
129-the approved company to some other purchaser, assignee, or
130-successor.
131-(14) Any other terms, conditions, and limitations that
132-this article or the Governor may require for an incentivized
133-company to qualify for and receive a jobs act incentive.
134-(15) Any other terms the parties deem necessary or
135-desirable.
136-(c) The Governor may decrease the amounts and durations
137-of the jobs act incentives to ensure that the anticipated
138-revenues for the state will exceed the amount of tax
139-incentives sought."
140-Section 2. This act shall become effective on October
141-1, 2024.
132+(2) Upon making affirmative findings on the criteria
133+set forth in subdivision (1) that are applicable , the
134+Secretary of Commerce shall recommend to the Governor that the
135+company be designated as an approved company. The name of the
136+company and information collected about it the company shall
137+be forwarded to the Governor.
138+(3) After reviewing the information provided by the
139+Secretary of Commerce, the Governor shall also determine
140+whether the company meets the criteria set forth in
141+subdivision (1). If the Governor makes such a finding, the
142+company shall be an approved company."
143+"§40-18-374
144+(a) An incentivized company may claim either or both of
145+the jobs act incentives, to the extent provided in the project
146+agreement.
147+(b) In order for an incentivized company to claim the
148+jobs act incentives, the Governor and the incentivized company
149+shall execute a project agreement. The agreement shall contain
150+all of the following:
151+(1) The name of the incentivized company.
152+(2) The location of the qualifying project.
153+(3) The activity to be conducted at the qualifying
154+project.
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157-1, 2024.
158-Senate
159-Read for the first time and referred
160-to the Senate committee on Fiscal
161-Responsibility and Economic
162-Development
163-................27-Feb-24
164-Read for the second time and placed
165-on the calendar:
166- 0 amendments
167-................19-Mar-24
168-Read for the third time and passed
169-as amended
170- Yeas 29
171- Nays 0
172- Abstains 0
173-................16-Apr-24
174-Patrick Harris,
175-Secretary.
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184+project.
185+(4) The jobs act incentives to be granted.
186+(5) The capital investment to be made at the qualifying
187+project.
188+(6) The time period for the capital investment to be
189+made at the qualifying project.
190+(7) The number of employees at the qualifying project.
191+(8) The anticipated wages to be paid to or for the
192+benefit of employees during the incentive period for the jobs
193+created.
194+(9) The dates or conditions that shall begin the
195+running of the incentive periods for applicable jobs act
196+incentives.
197+(10) The lengths of the incentive periods for the jobs
198+act incentives.
199+(11) Any annual or aggregate limitations on the amount
200+of either or both of the jobs act incentives that can be
201+claimed during an incentive period.
202+(12) Provisions governing the recapture of all or part
203+of the jobs act incentives awarded to the qualifying project,
204+should the approved company default on its obligations in the
205+project agreement.
206+(13) Provisions governing the recapture of all or part
207+of the jobs act incentives awarded to the qualifying project,
208+should the approved company, its subsidiaries, or suppliers
209+engage in any act or practice that violates the human
210+trafficking laws as provided in Sections 13A-6-152 and
211+13A-6-153, or federal child labor provisions of the Fair Labor
212+Standards Act of 1938, 29 U.S.C. § 203.
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242+Standards Act of 1938, 29 U.S.C. § 203.
243+(13)(14) Whether the project agreement may be assigned
244+by the approved company to some other purchaser, assignee, or
245+successor.
246+(14)(15) Any other terms, conditions, and limitations
247+that this article or the Governor may require for an
248+incentivized company to qualify for and receive a jobs act
249+incentive.
250+(15)(16) Any other terms the parties deem necessary or
251+desirable.
252+(c) The Governor may decrease the amounts and durations
253+of the jobs act incentives to ensure that the anticipated
254+revenues for the state will exceed the amount of tax
255+incentives sought."
256+Section 2. This act shall become effective on October
257+1, 2024.
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