SB168ENROLLED
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SB168
4WB53I3-2
By Senator Weaver
RFD: County and Municipal Government
First Read: 27-Feb-24
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First Read: 27-Feb-24
Enrolled, An Act,
Relating to economic development; to amend Section
11-54-171 of the Code of Alabama 1975, authorizing
municipalities to authorize the incorporation of commercial
development authorities in the municipality; to further define
project to include a single commercial enterprise; to amend
Section 41-10-47.04 of the Code of Alabama 1975, authorizing
the awarding of site development grants; to further provide
that commercial development authorities operating certain
single commercial enterprises are ineligible for site
development grants; to clarify Legislative intent.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-54-171 of the Code of Alabama
1975, is amended to read as follows:
"§11-54-171
The following words and phrases used in this article
shall, in the absence of clear implication otherwise, be given
the following interpretations:
(1) APPLICANT. A person who files a written application
with the governing body of any municipality in accordance with
Section 11-54-173.
(2) AUTHORITY. A public corporation organized pursuant
to this article.
(3) AUTHORIZING MUNICIPALITY. Any municipality the
governing body of which shall have adopted an authorizing
resolution.
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resolution.
(4) AUTHORIZING RESOLUTION. A resolution adopted by the
governing body of any municipality in accordance with Section
11-54-173, that authorizes the incorporation of an authority.
(5) BOARD. The board of directors of an authority.
(6) BONDS. Includes bonds, notes, and certificates
representing an obligation to pay money.
(7) COUNTY. Any county in the state.
(8) DIRECTOR. A member of the board of an authority.
(9) GOVERNING BODY. With respect to a municipality, its
city or town council, board of commissioners, or other like
governing body.
(10) INCORPORATORS. The persons forming a public
corporation organized pursuant to this article.
(11) MUNICIPALITY. Any incorporated city or town of the
state.
(12) PERSON. Unless limited to a natural person by the
context in which it is used, includes a public or private
corporation, limited liability company or partnership, a
municipality or county, or an agency, department, or
instrumentality of the state or of a county or municipality.
(13) PRINCIPAL OFFICE. The place at which the
certificate of incorporation and amendments thereto, the
bylaws, and the minutes of the proceedings of the board of an
authority are kept.
(14) POLLUTION. Any of the following:
a. The placing, whether by emission, discharge,
leakage, or other means, of any noxious or deleterious noise
or substance into any air or water of, in, or adjacent to the
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or substance into any air or water of, in, or adjacent to the
State of Alabama.
b. The contaminating of air and water.
c. The affecting of any air or water so as to render or
be likely to render the air or water, or the use of either for
domestic, industrial, agricultural, or recreational purposes,
hazardous, inimical, or harmful to the health, safety, or
welfare of human beings, animals, birds, aquatic creatures, or
any of them, or to the existence or growth of vegetation.
(15) POLLUTION CONTROL FACILITY. Any land, building,
structure, machinery, or equipment having to do with or
designed for or the end purpose of which is the control,
reduction, abatement, or prevention of air, noise, water, or
general environmental pollution, including, but not limited
to, the following: Any air pollution control facility, noise
abatement, or reduction facility, water management facility,
water purification facility, waste water collecting system,
waste water treatment works, or solid waste disposal facility.
(16) PROJECT.
a. Any land and any building or other improvement
thereon and all real and personal properties deemed necessary
in connection therewith, whether or not now in existence,
which shall be suitable for use by the following or by any
combination of two or more of the following:
1. Any commercial enterprise engaged in the
manufacturing, processing, assembling, storing, warehousing,
distributing, or selling of any products of agriculture,
mining, or industry.
2. Any enterprise for the purpose of research in
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2. Any enterprise for the purpose of research in
connection with:
(i) Any of the foregoing.
(ii) The development of new products or new processes.
(iii) The improvement of existing products or known
processes.
(iv) The development of facilities for the exploration
of outer space or promotion of the national defense.
3. Any commercial enterprise engaged in selling,
servicing, providing, or handling any policies of insurance or
any financial services.
b. Any land and any building or other improvement
thereon and all real and personal property deemed necessary in
connection therewith, whether or not now in existence, which
shall be suitable for use as all or any part of the following:
1. A ship canal, port or port facility, off-street
parking facility, dock or dock facility, harbor facility,
railroad, monorail or tramway, railway terminal or railway
belt line and switch.
2. An office building or buildings.
3. A planetarium or museum.
4. A pollution control facility.
5. A hotel, including parking facilities, facilities
for meetings, and facilities suitable for rental to persons
engaged in any business, trade, profession, occupation, or
activity.
6. A shopping center or similar facility suitable for
use by two or more commercial enterprises engaged in any
business, trade, profession, occupation, or activity,
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business, trade, profession, occupation, or activity,
provided, that a project shall not include facilities, other
than office buildings or other buildings suitable for use as
corporate headquarters, designed for the sale or distribution
to the public of electricity, gas, water, or telephone, or
other services commonly classified as public utilities.
7. A single commercial enterprise engaged in any
business, trade, profession, occupation, or activity
including, but not limited to, retail, restaurant,
professional office, or other commercial enterprises deemed
beneficial for job creation, workforce development, financial
investment, and other beneficial purposes identified in the
redevelopment plan of the authority.
(17) STATE. The State of Alabama."
Section 2. Section 41-10-47.04 of the Code of Alabama
1975, is amended to read as follows:
"§41-10-47.04
(a) Any local economic development organization may
apply to the authority for a site development grant.
(b) Before making a site development grant, the
authority shall make both of the following findings:
(1) The site is comprised of at least 75 contiguous
acres, provided that in addition to the 75 contiguous acres,
other proximate but noncontiguous property may be a part of
the site.
(2) The application includes proof that the grant funds
that are approved by the authority will be matched by funds on
hand with, or contingently committed to, the applicant such
that one of the following is true:
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that one of the following is true:
a. If the site is located in a targeted county with a
population of less than 12,000, for every dollar of grant
funds, the applicant will contribute twenty-five cents ($0.25)
of additional funds.
b. If the site is located in a targeted county with a
population of 12,000 or greater but less than 60,000, for
every dollar of grant funds, the applicant will contribute
fifty cents ($0.50) of additional funds.
c. If the site is located in a county with a population
of 60,000 or greater but less than 150,000, for every dollar
of grant funds, the applicant will contribute seventy-five
cents ($0.75) of additional funds.
d. If the site is located in a county with a population
of 150,000 or greater, for every dollar of grant funds, the
applicant will contribute one dollar ($1) of additional funds.
(c) The authority may impose additional requirements
with regard to the sites, including, but not limited to,
environmental and geotechnical matters, as well as utility
related and transportation related issues.
(d) Each applicant must enter into a project agreement
with the authority to establish the terms and conditions of
the site development grant.
(e) A commercial development authority project as
defined in Section 11-54-171(16)b.(7) shall not be eligible
for a site development grant unless the proposed use of the
site is to conduct a predominant activity described in Section
40-18-372(1).
(f) The intent of this section is to allow the
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(f) The intent of this section is to allow the
authority to provide funds for site development consistent
with the authority’s existing powers to finance or pay for
“project costs” as that term is defined in Section
41-10-44.2(7), including, without limitation, site
acquisition. This subsection is declaratory of the
Legislature’s intent in originally enacting this article and
applies retroactively to the original effective date of this
article."
Section 3. This act shall become effective on October
1, 2024.
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1, 2024.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB168
Senate 19-Mar-24
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Amended and passed: 16-Apr-24
Senate concurred in House amendment 18-Apr-24
By: Senator Weaver
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