Alabama 2024 Regular Session

Alabama Senate Bill SB242 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB242INTRODUCED
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3	3	SB242
4	4	MB561H1-1
5	5	By Senators Singleton, Chesteen, Allen, Albritton, Melson,
6	6	Stutts, Barfoot, Butler, Reed, Smitherman, Roberts, Sessions,
7	7	Elliott, Kitchens, Kelley, Coleman-Madison, Hovey, Livingston,
8	8	Price, Williams
9	9	RFD: Fiscal Responsibility and Economic Development
10	10	First Read: 21-Mar-24
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18	18	8 MB561H1-1 03/21/2024 PMG (L)tgw 2024-1250
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20	20	First Read: 21-Mar-24
21	21	SYNOPSIS:
22	22	This bill would authorize counties and
23	23	municipalities to authorize the incorporation of an
24	24	innovation district within the county or municipality
25	25	as a public corporation for the purpose of undertaking
26	26	activities or acquiring property by the district, and
27	27	using public revenues for the establishment, benefit,
28	28	or support of qualified enterprises, as designated by
29	29	the Department of Commerce, through public revenues.
30	30	This bill would provide procedures for the
31	31	creation and dissolution of an innovation district.
32	32	This bill would provide for the powers of an
33	33	innovation district, and provide for the powers of the
34	34	board of directors of an innovation district.
35	35	This bill would exempt districts from fees and
36	36	charges imposed by a judge of probate and from
37	37	taxation.
38	38	This bill would exempt districts from
39	39	competitive bid laws and from other specified state
40	40	oversight.
41	41	A BILL
42	42	TO BE ENTITLED
43	43	AN ACT
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73	73	AN ACT
74	74	Relating to economic development; to provide for the
75	75	establishment of public corporations known as districts to
76	76	support certain economic development activities using public
77	77	revenues; to provide for the creation and dissolution of
78	78	districts; to provide the powers of districts and the powers
79	79	and duties of the board of directors of districts; to exempt
80	80	districts from certain laws and requirements, including
81	81	taxation and competitive bid laws.
82	82	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
83	83	Section 1. Definitions.
84	84	When used in this act, the following terms have the
85	85	following meanings unless the context clearly indicates
86	86	otherwise:
87	87	(1) APPLICANT. Each natural person who has executed and
88	88	filed a written application with the governing body of any
89	89	subdivision for the incorporation of an innovation district.
90	90	(2) AUTHORIZING RESOLUTION. A resolution adopted by a
91	91	governing body to authorize the incorporation of an innovation
92	92	district.
93	93	(3) AUTHORIZING SUBDIVISION. Any county or municipality
94	94	the governing body of which has adopted an authorizing
95	95	resolution.
96	96	(4) BOARD. The board of directors of an innovation
97	97	district.
98	98	(5) CORPORATE PERSON. Any corporation, partnership,
99	99	association, or organization which may be incorporated or
100	100	organized under any chapter of Title 10 of the Code of Alabama
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130	130	organized under any chapter of Title 10 of the Code of Alabama
131	131	1975, or under the laws of any state of the United States.
132	132	(6) DIRECTOR. A member of the board of directors of the
133	133	district.
134	134	(7) DISTRICT. A public corporation incorporated
135	135	pursuant to this act.
136	136	(8) ELIGIBLE TAX. Any tax levied within an innovation
137	137	district by an authorizing subdivision the proceeds of which
138	138	tax may be used by the authorizing subdivision for any lawful
139	139	purpose without violation of any contractual agreement, the
140	140	terms of the ballot by which the tax was voted, any state law
141	141	or provision of the state constitution, or any order or ruling
142	142	of any agency, branch, department, or instrumentality of the
143	143	state or the United States.
144	144	(9) FINANCIAL OBLIGATION. Any contractual obligation of
145	145	any person, whether direct, indirect, or contingent, to pay or
146	146	provide money to, or for the benefit of, any person or
147	147	persons, as evidenced by any agreement or instrument,
148	148	including, but not limited to, any bond, certificate, economic
149	149	incentive grant agreement, funding or guaranty agreement,
150	150	installment sale agreement, lease agreement, negotiable
151	151	instrument, note, or warrant.
152	152	(10) GOVERNING BODY. The elected group of natural
153	153	persons which is organized for the purposes of exercising the
154	154	legislative functions and powers of a public person.
155	155	(11) NATURAL PERSON. A natural person who is 21 years
156	156	of age or older.
157	157	(12) PERSON. Collectively, corporate persons, natural
158	158	persons, and public entities.
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188	188	persons, and public entities.
189	189	(13) PRINCIPAL OFFICE. The principal office of an
190	190	innovation district as stated in the certificate of
191	191	incorporation.
192	192	(14) PROJECT. Any activity undertaken, or property
193	193	acquired or provided in whole or in part, by an innovation
194	194	district for the establishment, benefit, or support of a
195	195	qualified enterprise.
196	196	(15) PROPERTY. Any tangible or intangible property and
197	197	interests therein, including all property characterized under
198	198	state law as real, personal, or mixed.
199	199	(16) PUBLIC CORPORATION. Any public corporation
200	200	organized under the laws of the state.
201	201	(17) PUBLIC ENTITY. Any county, municipality, public
202	202	corporation, or any political subdivision, or other
203	203	instrumentality, of the state.
204	204	(18) QUALIFIED ENTERPRISE. Any activity, business, or
205	205	trade that is:
206	206	a. Identified in the Alabama Department of Commerce's
207	207	most recent economic development plan; or
208	208	b. Determined by a board to conduct operations in
209	209	furtherance of the legislative purposes of this act.
210	210	(19) SPECIAL PUBLIC REVENUES. Any funds or revenues of
211	211	an authorizing subdivision, including, but not limited to, the
212	212	proceeds of any eligible tax, which funds, revenues, or tax
213	213	proceeds shall be assigned or pledged, in whole or in part, by
214	214	the authorizing subdivision for the benefit of an innovation
215	215	district as provided in the authorizing resolution of the
216	216	authorizing subdivision with respect to, and described in, the
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246	246	authorizing subdivision with respect to, and described in, the
247	247	certificate of incorporation of the district.
248	248	(20) SUBDIVISION. Any county or municipality.
249	249	Section 2. Legislative Findings and Intent.
250	250	(a) The Legislature finds and determines the public
251	251	good and welfare and the economy of the state are best served
252	252	by the exercise of the police power of the Legislature to
253	253	provide public resources for the development, growth,
254	254	improvement, and support of new and creative economic
255	255	opportunities for existing and future qualified enterprises to
256	256	establish and continue projects in this state for innovative
257	257	processes and products, specifically including those business
258	258	sectors expressly identified in Accelerate Alabama 2.0, the
259	259	economic development strategic plan developed by the
260	260	Department of Commerce.
261	261	(b) In furtherance of subsection (a) the legislative
262	262	intent and public purpose of this act is:
263	263	(1) To provide authority to municipalities and counties
264	264	for the creation of districts with corporate authority and
265	265	power to provide, in the discretion of the districts, public
266	266	resources, including, without limitation, special public
267	267	revenues, on a continuing basis to qualified enterprises for
268	268	the location, development, support, and continuation of
269	269	projects in the state; and
270	270	(2) To provide authority to public entities to provide
271	271	public resources to, or for the benefit of, districts.
272	272	Section 3. Incorporation and Organization of an
273	273	innovation district; Certificate of Incorporation.
274	274	(a) The governing body of any subdivision, or the
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304	304	(a) The governing body of any subdivision, or the
305	305	governing bodies of any two or more subdivisions, may
306	306	authorize the incorporation and organization of an innovation
307	307	district as a public corporation of the state, with powers set
308	308	forth in this act, for the purpose of establishing or
309	309	undertaking any project.
310	310	(b) In order to incorporate and organize an innovation
311	311	district, not less than three natural persons who are duly
312	312	qualified electors of a proposed authorizing subdivision shall
313	313	file a written application with the governing body of each
314	314	proposed authorizing subdivision. The application shall:
315	315	(1) State that the applicants propose to incorporate an
316	316	innovation district pursuant to this act;
317	317	(2) State the name of each subdivision with which the
318	318	application is filed;
319	319	(3) State that each of the applicants is a duly
320	320	qualified elector of a proposed subdivision;
321	321	(4) Attach the proposed certificate of incorporation of
322	322	the proposed district and state that the proposed certificate
323	323	of incorporation is attached to the application and made a
324	324	part thereof; and
325	325	(5) Request the governing body of each proposed
326	326	subdivision to adopt a resolution declaring that it is wise,
327	327	expedient, and necessary that the proposed district be formed,
328	328	that the proposed certificate of incorporation of the district
329	329	be approved, and that the applicants are authorized and
330	330	directed to proceed to form the proposed district by the
331	331	filing for record of a certificate of incorporation in
332	332	accordance with the provisions of this act.
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362	362	accordance with the provisions of this act.
363	363	(c) The certificate of incorporation of an innovation
364	364	district shall state all of the following:
365	365	(1) The names of the individuals forming the district,
366	366	and that each of them is a duly qualified elector of an
367	367	authorizing subdivision.
368	368	(2) The name of the district, which may be a name
369	369	indicating in a general way the area proposed to be included
370	370	within or served by the district and shall include the words
371	371	"___________ Innovation District," or "The Innovation District
372	372	of ____________," the blank spaces to be filled in with the
373	373	name of the authorizing subdivisions or other geographically
374	374	descriptive word or words, such descriptive word or words not,
375	375	however, to preclude the district from locating facilities or
376	376	otherwise exercising its powers in other geographical areas.
377	377	(3) That the district is organized pursuant to the
378	378	provisions of this act.
379	379	(4) The name of each authorizing subdivision together
380	380	with the date on which the governing body thereof adopted an
381	381	authorizing resolution.
382	382	(5) The period for the duration of the district, which
383	383	may be perpetual subject to the provisions of this act.
384	384	(6) The location of the principal office of the
385	385	district, which must be within the boundaries of an
386	386	authorizing subdivision.
387	387	(7) The number of members, which must be an odd number
388	388	not less than three, of the board of directors of the
389	389	district, with each director to hold a place on the board,
390	390	which may be designated by number in consecutive order, and
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420	420	which may be designated by number in consecutive order, and
421	421	for each such place the duration of the term of office, which
422	422	shall not be in excess of six years, for the director holding
423	423	such place, and, subject to the provisions of this act, the
424	424	person or persons, which may include any natural person, any
425	425	corporate person, any public entity, or the state, having the
426	426	authority and power of appointment of the director holding
427	427	such place; provided, however, a majority of the directors of
428	428	the district must be appointed by one or more of the
429	429	authorizing subdivisions. Additionally, the certificate of
430	430	incorporation may allow for the Alabama Innovation Corporation
431	431	to appoint a single, non-voting director who shall not count
432	432	towards the establishment of a quorum.
433	433	(8) The terms of any prohibition, limitation, or
434	434	condition with respect to the exercise of any authority or
435	435	power of the district.
436	436	(9) Any provision that provides for the vesting of
437	437	title to its property upon dissolution of the district which
438	438	must not be in violation of this act or other state law.
439	439	(10) That the district shall be a nonprofit corporation
440	440	and no part of its net earnings remaining after payment of its
441	441	expenses shall inure to the benefit of any individual, firm,
442	442	or corporation.
443	443	(11) Any other provision that:
444	444	a. Describes any special public revenues that have been
445	445	pledged or assigned to the district by an authorizing
446	446	subdivision in the authorizing resolution; and
447	447	b. May be required to be included in the certificate of
448	448	incorporation by an authorizing subdivision in the authorizing
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478	478	incorporation by an authorizing subdivision in the authorizing
479	479	resolution and which must not be in violation of this act or
480	480	any other state law.
481	481	(d)(1) The governing body of a subdivision with which
482	482	an application is filed pursuant to this act, as promptly as
483	483	practicable, shall review the application and the attached
484	484	form of certificate of incorporation and thereupon, at any
485	485	regular or special meeting called and held in accordance with
486	486	state law, either adopt a resolution denying the application
487	487	or adopt an authorizing resolution in which the governing body
488	488	declares that it is wise, expedient, and necessary that the
489	489	proposed district be formed, approve the form and content of
490	490	its certificate of incorporation, and authorize and direct the
491	491	applicants to proceed to form the proposed district by the
492	492	filing for record of the proposed certificate of incorporation
493	493	in accordance with this act.
494	494	(2) The governing body of each subdivision that has
495	495	adopted an authorizing resolution shall cause the resolution
496	496	to be made a part of the minutes and record of the meeting of
497	497	the governing body during which the authorizing resolution was
498	498	adopted.
499	499	(3) An authorizing resolution shall operate and be
500	500	construed only as historical and evidential. An authorizing
501	501	resolution shall not operate or be construed as of general and
502	502	permanent nature or operation, may be adopted at the same
503	503	meeting at which it is introduced, and shall be effective
504	504	immediately upon adoption without posting or publication by
505	505	any electronic, printed, or other means.
506	506	(e) As soon as practicable after the adoption of an
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536	536	(e) As soon as practicable after the adoption of an
537	537	authorizing resolution by each authorizing subdivision, the
538	538	applicants shall do all of the following:
539	539	(1) Execute and acknowledge the certificate of
540	540	incorporation as approved by each of the authorizing
541	541	subdivisions before an officer authorized by law to take
542	542	acknowledgments to deeds.
543	543	(2) Attach to the certificate of incorporation both of
544	544	the following:
545	545	a. A certified copy of each authorizing resolution.
546	546	b. A certificate by the Secretary of State stating that
547	547	the name proposed for the district is not identical to that of
548	548	any other corporation organized under state law or so nearly
549	549	similar as to lead to confusion and uncertainty.
550	550	(3) File the certificate of incorporation for record in
551	551	the office of the judge of probate of the county in which the
552	552	principal office of the district is to be located.
553	553	(f) Upon the filing for record of the certificate of
554	554	incorporation, the district shall come into existence and
555	555	shall constitute a public corporation under the name set forth
556	556	in the certificate of incorporation, whereupon the district
557	557	shall be vested with all authority, powers, and rights granted
558	558	by this act, and the judge of probate shall send a notice to
559	559	the Secretary of State that the certificate of incorporation
560	560	of the district has been filed for record.
561	561	(g) The certificate of incorporation of any district
562	562	may be amended in the following manner:
563	563	(1) The board shall first adopt a resolution proposing
564	564	an amendment to the certificate of incorporation which must be
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594	594	an amendment to the certificate of incorporation which must be
595	595	set forth in full in the resolution. The amendment may include
596	596	any matters that may have been included in the original
597	597	certificate of incorporation.
598	598	(2) After the adoption by the board of a resolution
599	599	proposing an amendment to the certificate of incorporation of
600	600	the district, the chair of the board and the secretary of the
601	601	district shall sign and file a written application in the name
602	602	of and on behalf of the district with the governing body of
603	603	each authorizing subdivision, requesting the governing body to
604	604	adopt a resolution approving the proposed amendment, and
605	605	accompanied by a certified copy of the resolution adopted by
606	606	the board proposing the amendment to the certificate of
607	607	incorporation, together with documents in support of the
608	608	application as the chair considers appropriate.
609	609	(3) As promptly as practicable after the filing of the
610	610	application with the authorizing subdivision, the governing
611	611	body shall review the application and shall either adopt a
612	612	resolution denying the application or adopt a resolution
613	613	authorizing the proposed amendment. The governing body of each
614	614	subdivision that has adopted a resolution approving the
615	615	amendment shall cause the resolution to be made a part of the
616	616	minutes and record of the meeting of the governing body during
617	617	which the resolution was adopted. A resolution approving an
618	618	amendment shall operate and be construed only as historical
619	619	and evidential. An authorizing resolution shall not operate or
620	620	be construed as of general and permanent nature or operation,
621	621	may be adopted at the same meeting at which it is introduced,
622	622	and shall be effective immediately without posting or
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652	652	and shall be effective immediately without posting or
653	653	publication by any electronic, printed, or other means.
654	654	(4) As soon as practicable after the adoption of a
655	655	resolution approving the amendment by each authorizing
656	656	subdivision, the chair of the board of the district and the
657	657	secretary of the district shall sign and file for record in
658	658	the office of the judge of probate with which the certificate
659	659	of incorporation of the district was originally filed a
660	660	certificate in the name of and on behalf of the district
661	661	reciting the adoption of the respective resolutions by the
662	662	board and by the governing body of each authorizing
663	663	subdivision, setting forth the proposed amendment. The judge
664	664	of probate for the county shall thereupon record the
665	665	certificate in an appropriate book in his or her office. When
666	666	the certificate has been so filed and recorded, the amendment
667	667	shall become effective and the certificate of incorporation
668	668	shall thereupon be amended to the extent provided in the
669	669	amendment. No certificate of incorporation of an innovation
670	670	district shall be amended except in the manner provided in
671	671	this section.
672	672	Section 4. Board of Directors of District.
673	673	(a) Each district shall be governed by a board of
674	674	directors that shall exercise, or authorize the exercise of,
675	675	all powers of the district.
676	676	(b) The board of each district shall consist of the
677	677	number of directors provided in the certificate of
678	678	incorporation.
679	679	(c) Any natural person may serve on the board of an
680	680	innovation district without regard to whether the natural
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686	686	314
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688	688	316
689	689	317
690	690	318
691	691	319
692	692	320
693	693	321
694	694	322
695	695	323
696	696	324
697	697	325
698	698	326
699	699	327
700	700	328
701	701	329
702	702	330
703	703	331
704	704	332
705	705	333
706	706	334
707	707	335
708	708	336 SB242 INTRODUCED
709	709	Page 13
710	710	innovation district without regard to whether the natural
711	711	person is a resident, owner of property, taxpayer, or elector
712	712	in or of any authorizing subdivision or the state; provided,
713	713	however, board membership shall be inclusive and reflect the
714	714	racial, gender, geographic, and economic diversity of the
715	715	district.
716	716	(d) Each director of the district shall hold a place on
717	717	the board and shall be appointed for the term of the place by
718	718	the person or persons, which may include the board, any
719	719	natural person, any corporate person, any public entity, or
720	720	the state, having the authority and power of appointment of
721	721	the director for the place, as provided in the certificate of
722	722	incorporation of the district; provided, however, anything in
723	723	this act to the contrary notwithstanding, a majority of the
724	724	directors of the district must be appointed by one or more of
725	725	the authorizing subdivisions. Except as may be otherwise
726	726	provided in the certificate of incorporation of an innovation
727	727	district, an officer or employee of any authorizing
728	728	subdivision shall be eligible for appointment and may serve as
729	729	a member of the board for the first to expire of the term for
730	730	which the officer is appointed or the term thereof as an
731	731	officer of the authorizing subdivision.
732	732	(e) Each director may hold a place on the board for
733	733	successive terms without limit. If at the expiration of any
734	734	term of office of any director a successor has not been
735	735	appointed, the director whose term of office expired shall
736	736	continue to hold office until the successor is appointed by
737	737	the person or persons having the appointive power for the
738	738	place of that director. If at any time there is a vacancy on
739	739	337
740	740	338
741	741	339
742	742	340
743	743	341
744	744	342
745	745	343
746	746	344
747	747	345
748	748	346
749	749	347
750	750	348
751	751	349
752	752	350
753	753	351
754	754	352
755	755	353
756	756	354
757	757	355
758	758	356
759	759	357
760	760	358
761	761	359
762	762	360
763	763	361
764	764	362
765	765	363
766	766	364 SB242 INTRODUCED
767	767	Page 14
768	768	place of that director. If at any time there is a vacancy on
769	769	the board, whether by death, resignation, incapacity,
770	770	disqualification, or otherwise, a successor director to serve
771	771	for the unexpired term applicable to the vacancy shall be
772	772	elected or appointed by the person or persons who appointed
773	773	the predecessor director.
774	774	(f) Each director shall serve as such without
775	775	compensation but shall be reimbursed for expenses actually
776	776	incurred by the director while conducting his or her official
777	777	duties.
778	778	(g) The board may hold regular and special meetings as
779	779	the board determines or as provided in the bylaws of the
780	780	board. Any member of the board, any provision of law to the
781	781	contrary notwithstanding, may attend and participate in, and
782	782	constitute part of the quorum for, any regular or special
783	783	meeting of the board in person or by means of telephone
784	784	conference, video conference, or similar communications
785	785	equipment that allows all participants in the meeting to hear
786	786	each other at the same time; provided, every meeting shall
787	787	have one physical location available in an authorizing
788	788	subdivision for individuals wishing to be physically present,
789	789	and any vote taken at a meeting using the foregoing
790	790	communication equipment shall be taken by roll call vote that
791	791	allows each participant to vote individually in a manner
792	792	audible to all participants. The board may take any action at
793	793	any regular or special meeting. A majority of the directors
794	794	present, in person or by electronic or telephonic
795	795	communications, at a meeting shall constitute a quorum for the
796	796	exercise of any authority or power of the board. Any meeting
797	797	365
798	798	366
799	799	367
800	800	368
801	801	369
802	802	370
803	803	371
804	804	372
805	805	373
806	806	374
807	807	375
808	808	376
809	809	377
810	810	378
811	811	379
812	812	380
813	813	381
814	814	382
815	815	383
816	816	384
817	817	385
818	818	386
819	819	387
820	820	388
821	821	389
822	822	390
823	823	391
824	824	392 SB242 INTRODUCED
825	825	Page 15
826	826	exercise of any authority or power of the board. Any meeting
827	827	of the board may be adjourned from time to time by a majority
828	828	of the directors present or may be so adjourned by a single
829	829	director if the director is the only director present at the
830	830	meeting. No vacancy in the membership of the board or the
831	831	voluntary disqualification or abstention of any member of the
832	832	board shall impair the right of a quorum to exercise all the
833	833	powers and perform all the duties of the board at a regular or
834	834	special meeting. The secretary of the district shall reduce to
835	835	writing and maintain in a permanent record all proceedings and
836	836	resolutions of the board. Copies of the proceedings, when
837	837	certified by the secretary of the district, shall be received
838	838	in all courts as prima facie evidence of the matters and
839	839	things therein certified.
840	840	(h) The determinations set forth in a resolution of the
841	841	board, including the determination that an activity, facility,
842	842	or undertaking, or application of funds or tax proceeds,
843	843	including any special public revenues, under control of the
844	844	board constitutes a "project" or are otherwise in furtherance
845	845	of the purposes of this chapter, shall constitute a
846	846	legislative act by the board under state law to the same
847	847	extent as would similar action by a subdivision and shall be
848	848	subject to judicial review as provided and limited by law for
849	849	judicial review of legislative acts and determinations by a
850	850	subdivision.
851	851	(i) If a matter comes before the board with respect to
852	852	which any director, any related party, including a sibling,
853	853	spouse, or lineal descendant, or any business enterprise with
854	854	which the director is associated, has any direct or indirect
855	855	393
856	856	394
857	857	395
858	858	396
859	859	397
860	860	398
861	861	399
862	862	400
863	863	401
864	864	402
865	865	403
866	866	404
867	867	405
868	868	406
869	869	407
870	870	408
871	871	409
872	872	410
873	873	411
874	874	412
875	875	413
876	876	414
877	877	415
878	878	416
879	879	417
880	880	418
881	881	419
882	882	420 SB242 INTRODUCED
883	883	Page 16
884	884	which the director is associated, has any direct or indirect
885	885	pecuniary interest, the director shall immediately disclose
886	886	the interest to the board and remove himself or herself and
887	887	withdraw from the meeting prior to the consideration,
888	888	deliberation, and voting on the matter by the board.
889	889	(j) The district and the directors, officers,
890	890	employees, and agents of the district shall have the same
891	891	immunity from liability as a municipality and its officers,
892	892	employees, and agents. No action or suit shall be brought or
893	893	maintained against the district or any director thereof for or
894	894	on account of the negligence of the district or director or
895	895	the district's or director's agents, servants, or employees,
896	896	relating to the construction, acquisition, installation,
897	897	maintenance, operation, superintendence, or management of any
898	898	project or facility of the district. No civil action may be
899	899	maintained against an appointing subdivision, its officers,
900	900	servants, employees, or agents relating to an innovation
901	901	district's acquisition, construction, ownership, maintenance,
902	902	operation, or management of any project, facility, or other
903	903	improvement.
904	904	(k) Any director may be removed from office in the same
905	905	manner and on the same grounds provided in the state
906	906	constitution and the general laws of the state for impeachment
907	907	and removal of officers.
908	908	Section 5. Officers of District.
909	909	The officers of an innovation district shall consist of
910	910	a chair, a vice chair, a secretary, a treasurer, and such
911	911	other officers as its board deems necessary or desirable. The
912	912	offices of secretary and treasurer may be held by the same
913	913	421
914	914	422
915	915	423
916	916	424
917	917	425
918	918	426
919	919	427
920	920	428
921	921	429
922	922	430
923	923	431
924	924	432
925	925	433
926	926	434
927	927	435
928	928	436
929	929	437
930	930	438
931	931	439
932	932	440
933	933	441
934	934	442
935	935	443
936	936	444
937	937	445
938	938	446
939	939	447
940	940	448 SB242 INTRODUCED
941	941	Page 17
942	942	offices of secretary and treasurer may be held by the same
943	943	individual. The chair and vice chair of an innovation district
944	944	shall be elected by the board from the board membership. The
945	945	secretary, the treasurer, and any other officers of the
946	946	district may but need not be members of the board and shall
947	947	also be elected by the board. The chair, vice chair, and
948	948	secretary of the district shall also be the chair, vice chair,
949	949	and secretary of the board, respectively.
950	950	Section 6. Powers of District.
951	951	Each district shall have all of the following stated
952	952	powers together with all powers incidental to these powers and
953	953	necessary to effect the proper exercise of the district:
954	954	(1) To have succession in its corporate name for the
955	955	duration of the district specified in the certificate of
956	956	incorporation.
957	957	(2) To sue and be sued in its own name in civil suits
958	958	and actions and to defend suit against the district.
959	959	(3) To adopt and make use of a corporate seal and to
960	960	alter the seal as necessary.
961	961	(4) To adopt, alter, and repeal bylaws, regulations,
962	962	and rules, not inconsistent with the provisions of this act,
963	963	for the regulation and conduct of its affairs and business.
964	964	(5) Notwithstanding Chapter 1B of Title 18 of the Code
965	965	of Alabama 1975, to acquire real property, whether by gift,
966	966	purchase, transfer, foreclosure, lease, devise, exercise of
967	967	the power of eminent domain in the manner provided by law,
968	968	including, Chapter 1A of Title 18 of the Code of Alabama 1975,
969	969	or otherwise, and to construct, improve, operate, maintain,
970	970	equip, and furnish the property and interests in property as
971	971	449
972	972	450
973	973	451
974	974	452
975	975	453
976	976	454
977	977	455
978	978	456
979	979	457
980	980	458
981	981	459
982	982	460
983	983	461
984	984	462
985	985	463
986	986	464
987	987	465
988	988	466
989	989	467
990	990	468
991	991	469
992	992	470
993	993	471
994	994	472
995	995	473
996	996	474
997	997	475
998	998	476 SB242 INTRODUCED
999	999	Page 18
1000	1000	equip, and furnish the property and interests in property as
1001	1001	the board determines to be necessary for the purposes of the
1002	1002	district, which property may be located in any subdivision in
1003	1003	the state without regard to whether the subdivision is an
1004	1004	authorizing subdivision with respect to the district;
1005	1005	provided, however, the district shall not be authorized to
1006	1006	condemn any property or interests in property held by
1007	1007	utilities or other entities engaged in the generation,
1008	1008	transmission, or distribution of communications, gas,
1009	1009	electricity, water, sewer, or other utility products or
1010	1010	services.
1011	1011	(6) To lease all or any part of any property upon such
1012	1012	terms and conditions as its board determines necessary or
1013	1013	desirable.
1014	1014	(7) To convey any property of the district with or
1015	1015	without valuable consideration as the board shall determine.
1016	1016	(8) To enter into a management contract or contracts
1017	1017	with any person or persons of all or any part of its property
1018	1018	as may in the judgment of such district be necessary or
1019	1019	desirable in order to perform more efficiently or economically
1020	1020	any function for which the district may become responsible in
1021	1021	the exercise of the powers conferred upon it by this act.
1022	1022	(9) To procure insurance against any loss in connection
1023	1023	with its property and other assets in such amounts and from
1024	1024	such insurers as its board determines to be necessary or
1025	1025	desirable.
1026	1026	(10) To fix and revise, and charge and collect, fees,
1027	1027	licenses, rates, and rentals for services rendered by the
1028	1028	district, or for the use of any property of the district, and
1029	1029	477
1030	1030	478
1031	1031	479
1032	1032	480
1033	1033	481
1034	1034	482
1035	1035	483
1036	1036	484
1037	1037	485
1038	1038	486
1039	1039	487
1040	1040	488
1041	1041	489
1042	1042	490
1043	1043	491
1044	1044	492
1045	1045	493
1046	1046	494
1047	1047	495
1048	1048	496
1049	1049	497
1050	1050	498
1051	1051	499
1052	1052	500
1053	1053	501
1054	1054	502
1055	1055	503
1056	1056	504 SB242 INTRODUCED
1057	1057	Page 19
1058	1058	district, or for the use of any property of the district, and
1059	1059	to apply the proceeds thereof for any lawful purpose of the
1060	1060	district.
1061	1061	(11) To the extent authorized or permitted by the state
1062	1062	constitution, to grant, lend, or donate, or otherwise make
1063	1063	available to any person or persons any funds, money, revenues,
1064	1064	including, but not limited to, any special public revenues, or
1065	1065	other property of the district upon such terms as the board
1066	1066	shall determine.
1067	1067	(12) To the extent authorized or permitted by the state
1068	1068	constitution, to assume, incur, or issue any financial
1069	1069	obligation or financial obligations for any lawful purpose, as
1070	1070	more particularly provided in this act.
1071	1071	(13) To pledge for the benefit of any financial
1072	1072	obligation of the district any revenues, including, but not
1073	1073	limited to, any special public revenues or proceeds of any
1074	1074	special tax to which it may be entitled, from which the
1075	1075	financial obligation is payable, and to mortgage or pledge its
1076	1076	property and revenues, or any portion thereof, as further
1077	1077	provided in this act.
1078	1078	(14) To assume obligations secured by a lien on, or
1079	1079	secured by and payable out of or secured by a pledge of, any
1080	1080	property or part thereof or the revenues derived from any
1081	1081	property that may be acquired by the district.
1082	1082	(15) To make, enter into, and execute contracts,
1083	1083	agreements, leases, and other instruments, and to take such
1084	1084	other actions as may be necessary or convenient to accomplish
1085	1085	any purpose for which the district was organized or to
1086	1086	exercise any power granted under this act.
1087	1087	505
1088	1088	506
1089	1089	507
1090	1090	508
1091	1091	509
1092	1092	510
1093	1093	511
1094	1094	512
1095	1095	513
1096	1096	514
1097	1097	515
1098	1098	516
1099	1099	517
1100	1100	518
1101	1101	519
1102	1102	520
1103	1103	521
1104	1104	522
1105	1105	523
1106	1106	524
1107	1107	525
1108	1108	526
1109	1109	527
1110	1110	528
1111	1111	529
1112	1112	530
1113	1113	531
1114	1114	532 SB242 INTRODUCED
1115	1115	Page 20
1116	1116	exercise any power granted under this act.
1117	1117	(16) To enter into contracts with, to accept aid,
1118	1118	loans, and grants from, to cooperate with, and to take any
1119	1119	action not specifically prohibited by this act or other
1120	1120	applicable laws of the state that may be necessary in order to
1121	1121	obtain or secure the aid and cooperation of the United States,
1122	1122	the state, or any agency, department, instrumentality, or
1123	1123	political subdivision of either in furtherance of the purposes
1124	1124	of this act.
1125	1125	(17) To apply for, accept, receive, apply, disburse,
1126	1126	expend, and use to accomplish the purposes of this chapter any
1127	1127	money, property, labor, or other things of value, from any
1128	1128	source, including, without limitation, the state, any public
1129	1129	entity, and the United States, subject to any lawful condition
1130	1130	upon which the aid or contributions may be given or made.
1131	1131	(18) To abate, eliminate, or reduce the liability of
1132	1132	any taxpayer for the payment of any one or more of the
1133	1133	eligible taxes pursuant to such agreements, instruments, or
1134	1134	proceedings as the district determines shall be effective.
1135	1135	(19) To appoint, employ, contract with, and provide for
1136	1136	compensation of the employees and agents of the district
1137	1137	including, but not limited to, architects, engineers,
1138	1138	attorneys, accountants, investment advisors and financial
1139	1139	experts, fiscal agents, and such other advisors, consultants,
1140	1140	and agents as the board determines to be necessary or
1141	1141	desirable.
1142	1142	(20) To invest its monies, including, but not limited
1143	1143	to, the monies held in any special fund created pursuant to
1144	1144	any trust indenture or agreement or resolution securing any of
1145	1145	533
1146	1146	534
1147	1147	535
1148	1148	536
1149	1149	537
1150	1150	538
1151	1151	539
1152	1152	540
1153	1153	541
1154	1154	542
1155	1155	543
1156	1156	544
1157	1157	545
1158	1158	546
1159	1159	547
1160	1160	548
1161	1161	549
1162	1162	550
1163	1163	551
1164	1164	552
1165	1165	553
1166	1166	554
1167	1167	555
1168	1168	556
1169	1169	557
1170	1170	558
1171	1171	559
1172	1172	560 SB242 INTRODUCED
1173	1173	Page 21
1174	1174	any trust indenture or agreement or resolution securing any of
1175	1175	its financial obligations and proceeds from the sale of any
1176	1176	financial obligations not required for immediate use, in such
1177	1177	investments as are authorized by the laws of the state for the
1178	1178	investment of funds and money of a municipality.
1179	1179	(21) To acquire, create, establish, operate, or
1180	1180	support, or to participate as a member of, any corporate
1181	1181	person that will assist the district in, or which otherwise
1182	1182	has as a purpose of accomplishing the purposes of this act,
1183	1183	including, but not limited to, the support of any corporate
1184	1184	person by means of grants or loans of property or the issuance
1185	1185	of financial obligations for the benefit the corporate person.
1186	1186	(22) To exercise any authority or power that is granted
1187	1187	by state law to any public or private corporation which is not
1188	1188	in conflict with the purposes of this act.
1189	1189	(23) To do any and all things necessary or convenient
1190	1190	to carry out its purposes and to exercise its powers pursuant
1191	1191	to this act.
1192	1192	Section 7. Contributions and Application of Special
1193	1193	Public Revenues.
1194	1194	(a) Each authorizing subdivision of an innovation
1195	1195	district, anything in this act or state law to the contrary
1196	1196	notwithstanding, and to the extent permitted by the state
1197	1197	constitution, may pledge or assign any special public revenues
1198	1198	for the benefit of any district with respect to which it is an
1199	1199	authorizing subdivision by specific provision in the
1200	1200	authorizing resolution of the authorizing subdivision for the
1201	1201	district, which provision shall specify the officer of the
1202	1202	subdivision charged with performance of a pledge or assignment
1203	1203	561
1204	1204	562
1205	1205	563
1206	1206	564
1207	1207	565
1208	1208	566
1209	1209	567
1210	1210	568
1211	1211	569
1212	1212	570
1213	1213	571
1214	1214	572
1215	1215	573
1216	1216	574
1217	1217	575
1218	1218	576
1219	1219	577
1220	1220	578
1221	1221	579
1222	1222	580
1223	1223	581
1224	1224	582
1225	1225	583
1226	1226	584
1227	1227	585
1228	1228	586
1229	1229	587
1230	1230	588 SB242 INTRODUCED
1231	1231	Page 22
1232	1232	subdivision charged with performance of a pledge or assignment
1233	1233	and the liquidated amounts in which, and dates on which, the
1234	1234	special public revenues shall be delivered to the district in
1235	1235	performance of the pledge or assignment. The inclusion of a
1236	1236	description of the pledge or assignment of the special public
1237	1237	revenues in the certificate of incorporation of the district,
1238	1238	upon the incorporation of the district, shall constitute
1239	1239	acceptance of, and reliance by the district upon, the
1240	1240	continuing validity of the pledge or assignment of the special
1241	1241	public revenues. The pledge or assignment of the special
1242	1242	public revenues by the authorizing subdivision for the benefit
1243	1243	of the district shall constitute a contractual agreement
1244	1244	between the authorizing subdivision and the district and shall
1245	1245	be enforceable by the district by all remedies available at
1246	1246	law or in equity, including, but not limited to, an action for
1247	1247	mandamus in a court of competent jurisdiction.
1248	1248	(b) An innovation district may use the proceeds of any
1249	1249	special public revenues made available to the district,
1250	1250	subject to the terms and conditions upon the special public
1251	1251	revenues, for any lawful purpose the board of the district
1252	1252	determines to be in furtherance of the purposes of this act,
1253	1253	including, but not limited to, the gift, grant, guarantee,
1254	1254	loan, or other form of contribution of all or any part of the
1255	1255	special public revenues for the benefit of any person or
1256	1256	persons, and the pledge of all or any part of the special
1257	1257	public revenues for the benefit of any financial obligation or
1258	1258	financial obligations of the district.
1259	1259	Section 8. Financial Obligations of an Innovation
1260	1260	District.
1261	1261	589
1262	1262	590
1263	1263	591
1264	1264	592
1265	1265	593
1266	1266	594
1267	1267	595
1268	1268	596
1269	1269	597
1270	1270	598
1271	1271	599
1272	1272	600
1273	1273	601
1274	1274	602
1275	1275	603
1276	1276	604
1277	1277	605
1278	1278	606
1279	1279	607
1280	1280	608
1281	1281	609
1282	1282	610
1283	1283	611
1284	1284	612
1285	1285	613
1286	1286	614
1287	1287	615
1288	1288	616 SB242 INTRODUCED
1289	1289	Page 23
1290	1290	District.
1291	1291	(a) Each district shall have, and may exercise as
1292	1292	provided in Section 6(12), the authority and power to assume,
1293	1293	incur, or issue, at any time and from time to time, any
1294	1294	financial obligation or financial obligations, without
1295	1295	limitation as to aggregate principal amount, as the board
1296	1296	determines to be necessary or desirable for any lawful purpose
1297	1297	of the district, including, but limited to:
1298	1298	(1) Payment of the costs of a project;
1299	1299	(2) Payment, in whole or in part, in advance or at
1300	1300	stated maturity, of any financial obligation of the district;
1301	1301	(3) Provision for such reserves as may be required in
1302	1302	connection with the financial obligations;
1303	1303	(4) Payment of any extraordinary, nonrecurring
1304	1304	obligations, including, but not limited to, casualty losses,
1305	1305	legal judgments, and contractual termination payments;
1306	1306	(5) Payment of administration and operation of
1307	1307	projects; and
1308	1308	(6) Provision of funds to accomplish or effect any
1309	1309	purpose of this act.
1310	1310	(b) Each financial obligation of an innovation district
1311	1311	may be in such form and denomination and of such tenor and
1312	1312	maturity or maturities, shall be payable in lawful currency of
1313	1313	the United States in such installments as serial or term
1314	1314	obligations or a combination thereof, and at such time or
1315	1315	times, not exceeding 45 years from the date thereof, may be
1316	1316	payable at such place or places whether within or without the
1317	1317	state, may bear interest at such rate or rates payable at such
1318	1318	time or times and at such place or places and evidenced in
1319	1319	617
1320	1320	618
1321	1321	619
1322	1322	620
1323	1323	621
1324	1324	622
1325	1325	623
1326	1326	624
1327	1327	625
1328	1328	626
1329	1329	627
1330	1330	628
1331	1331	629
1332	1332	630
1333	1333	631
1334	1334	632
1335	1335	633
1336	1336	634
1337	1337	635
1338	1338	636
1339	1339	637
1340	1340	638
1341	1341	639
1342	1342	640
1343	1343	641
1344	1344	642
1345	1345	643
1346	1346	644 SB242 INTRODUCED
1347	1347	Page 24
1348	1348	time or times and at such place or places and evidenced in
1349	1349	such manner, may be subject to prepayment or redemption in
1350	1350	advance of maturity at such price or prices and upon such
1351	1351	notice, terms, and conditions, and may contain such provisions
1352	1352	which are not in violation of this act, all as provided in the
1353	1353	applicable agreement, indenture, or resolution of the district
1354	1354	that has authorized the incurrence or issuance thereof.
1355	1355	(c) An innovation district may provide that any
1356	1356	financial obligation shall bear interest at a rate or rates
1357	1357	fixed to maturity at the time of issuance or at a rate or
1358	1358	rates which may be changed from time to time during the term
1359	1359	of the financial obligation in accordance with an objective
1360	1360	procedure determined by the board at the time of issuance of
1361	1361	the financial obligation or in connection with published
1362	1362	interest rates or indices that reflect an objective response
1363	1363	to market changes in interest rates by financial institutions,
1364	1364	governmental agencies, or other generally recognized public or
1365	1365	private sources of information concerning interest rates.
1366	1366	(d) An innovation district shall have the authority and
1367	1367	power to deliver and perform all agreements and contracts for
1368	1368	the services of paying agents and trustees with respect to
1369	1369	financial obligations incurred or issued under this act, for
1370	1370	the purchase of any financial obligations issued under this
1371	1371	act, and for the guarantee or insurance, pursuant to municipal
1372	1372	bond insurance policies, letters of credit, standby purchase
1373	1373	agreements, and other credit or liquidity facilities, of the
1374	1374	payment, when due, of the principal of, and premium and
1375	1375	interest on, any financial obligations so assumed, incurred,
1376	1376	or issued by the district pursuant to this act.
1377	1377	645
1378	1378	646
1379	1379	647
1380	1380	648
1381	1381	649
1382	1382	650
1383	1383	651
1384	1384	652
1385	1385	653
1386	1386	654
1387	1387	655
1388	1388	656
1389	1389	657
1390	1390	658
1391	1391	659
1392	1392	660
1393	1393	661
1394	1394	662
1395	1395	663
1396	1396	664
1397	1397	665
1398	1398	666
1399	1399	667
1400	1400	668
1401	1401	669
1402	1402	670
1403	1403	671
1404	1404	672 SB242 INTRODUCED
1405	1405	Page 25
1406	1406	or issued by the district pursuant to this act.
1407	1407	(e) An innovation district shall cause all financial
1408	1408	obligations assumed, incurred, or issued by the district to be
1409	1409	executed by manual or electronic signature of an officer or
1410	1410	officers as authorized and provided in the agreement,
1411	1411	indenture, or resolution of the district which authorized the
1412	1412	financial obligation. A statement upon the signature page of a
1413	1413	financial obligation of an innovation district that the
1414	1414	financial obligation was issued under the seal of the district
1415	1415	shall be conclusive for all purposes of state law. A financial
1416	1416	obligation that has been executed by an officer or officers in
1417	1417	office on the date of the execution shall be valid and
1418	1418	enforceable, notwithstanding that before delivery of the
1419	1419	financial obligation, any such officer whose signature appears
1420	1420	thereon has ceased to hold such office.
1421	1421	(f) All financial obligations incurred or issued
1422	1422	pursuant to this act by an innovation district may be sold at
1423	1423	private or public sale at such price or prices and in such
1424	1424	manner as the board shall determine.
1425	1425	(g) Each financial obligation of an innovation district
1426	1426	is hereby made a negotiable instrument for all purposes;
1427	1427	anything in state law, including, but not limited to, the
1428	1428	Alabama Uniform Commercial Code, to the contrary
1429	1429	notwithstanding and without regard to whether the financial
1430	1430	obligation is of such form and character as to be a negotiable
1431	1431	instrument under state law; provided, however, the district,
1432	1432	in its discretion, may provide that any particular financial
1433	1433	obligation shall not be negotiable or may be negotiable only
1434	1434	upon such terms as the district shall proscribe.
1435	1435	673
1436	1436	674
1437	1437	675
1438	1438	676
1439	1439	677
1440	1440	678
1441	1441	679
1442	1442	680
1443	1443	681
1444	1444	682
1445	1445	683
1446	1446	684
1447	1447	685
1448	1448	686
1449	1449	687
1450	1450	688
1451	1451	689
1452	1452	690
1453	1453	691
1454	1454	692
1455	1455	693
1456	1456	694
1457	1457	695
1458	1458	696
1459	1459	697
1460	1460	698
1461	1461	699
1462	1462	700 SB242 INTRODUCED
1463	1463	Page 26
1464	1464	upon such terms as the district shall proscribe.
1465	1465	(h)(1) The district shall apply the proceeds of any
1466	1466	financial obligation solely for the purposes for which the
1467	1467	financial obligation has been incurred or issued, including,
1468	1468	but not limited to, payment of the costs of incurrence or
1469	1469	issuance of the financial obligations, including, but not
1470	1470	limited to: (i) fees and expenses of attorneys, accountants,
1471	1471	financial advisors, consultants, trustees and paying agents,
1472	1472	and underwriters; and (ii) the costs of municipal bond
1473	1473	insurance policies, letters of credit, and such other credit
1474	1474	or liquidity facilities which provide for payment when due of
1475	1475	all or part of the principal of, and premium and interest on,
1476	1476	the financial obligations.
1477	1477	(2) The district may deposit in trust the proceeds of
1478	1478	any financial obligation incurred or issued for payment of
1479	1479	another financial obligation of the district, on such terms as
1480	1480	the board approves, with a financial institution having trust
1481	1481	powers within or without the state. The proceeds, to the
1482	1482	extent required by the terms of and purpose of such trust, may
1483	1483	be invested as provided for public funds of a municipality.
1484	1484	(i) The financial obligations of any district shall be
1485	1485	legal investments in which the state and its agencies and
1486	1486	instrumentalities, all subdivisions and public corporations
1487	1487	organized under the laws of the state, all insurance companies
1488	1488	and associations and other persons carrying on an insurance
1489	1489	business, all banks, savings banks, savings and loan
1490	1490	associations, trust companies, credit unions, and investment
1491	1491	companies of any kind, all administrators, guardians,
1492	1492	executors, trustees, and other fiduciaries, and all other
1493	1493	701
1494	1494	702
1495	1495	703
1496	1496	704
1497	1497	705
1498	1498	706
1499	1499	707
1500	1500	708
1501	1501	709
1502	1502	710
1503	1503	711
1504	1504	712
1505	1505	713
1506	1506	714
1507	1507	715
1508	1508	716
1509	1509	717
1510	1510	718
1511	1511	719
1512	1512	720
1513	1513	721
1514	1514	722
1515	1515	723
1516	1516	724
1517	1517	725
1518	1518	726
1519	1519	727
1520	1520	728 SB242 INTRODUCED
1521	1521	Page 27
1522	1522	executors, trustees, and other fiduciaries, and all other
1523	1523	persons whosoever are now or may hereafter be authorized to
1524	1524	invest in financial obligations or other obligations of the
1525	1525	state, may properly and legally invest funds in their control
1526	1526	or belonging to them.
1527	1527	(j) The validity of any financial obligation that
1528	1528	states therein that it is issued pursuant to this act, in any
1529	1529	action or proceeding involving the validity thereof, shall be
1530	1530	incontestable, and the financial obligation shall be
1531	1531	conclusively deemed to be the valid financial obligation of
1532	1532	the applicable district enforceable by all rights and remedies
1533	1533	available at law or in equity under state law.
1534	1534	Section 9. Sources of Payment of, and Security for,
1535	1535	Financial Obligations of an Innovation District.
1536	1536	(a) Each financial obligation or obligations of an
1537	1537	innovation district shall be a limited obligation of the
1538	1538	district payable solely from the sources of payment specified
1539	1539	therein, subject to such limitations and provisions thereof,
1540	1540	including, but not limited to, the issuance of financial
1541	1541	obligations payable from the same source of funds on an equal
1542	1542	and proportionate basis or on a subordinate basis, as the
1543	1543	district may determine.
1544	1544	(b) The district may assign, mortgage, or pledge any
1545	1545	property of the district to secure the payment and performance
1546	1546	of any financial obligation of the district; provided, the
1547	1547	district, in its discretion, may provide property as security
1548	1548	for any one or more financial obligations of the district
1549	1549	without, to the extent permitted by any applicable contractual
1550	1550	agreements, provision of the same or any other any property as
1551	1551	729
1552	1552	730
1553	1553	731
1554	1554	732
1555	1555	733
1556	1556	734
1557	1557	735
1558	1558	736
1559	1559	737
1560	1560	738
1561	1561	739
1562	1562	740
1563	1563	741
1564	1564	742
1565	1565	743
1566	1566	744
1567	1567	745
1568	1568	746
1569	1569	747
1570	1570	748
1571	1571	749
1572	1572	750
1573	1573	751
1574	1574	752
1575	1575	753
1576	1576	754
1577	1577	755
1578	1578	756 SB242 INTRODUCED
1579	1579	Page 28
1580	1580	agreements, provision of the same or any other any property as
1581	1581	security for any other financial obligation or obligations of
1582	1582	the district. In furtherance of this subsection, the district
1583	1583	may deliver a contractual agreement to, or for the benefit of,
1584	1584	the owner or owners of any financial obligation of the
1585	1585	district, which agreement may contain such agreements,
1586	1586	conditions, covenants, provisions, and terms as the district
1587	1587	may determine to be necessary or desirable to provide for the
1588	1588	protection and security of the owners of the financial
1589	1589	obligations, including, but not limited to, restrictions on
1590	1590	the use of the property of the district and the incurrence of
1591	1591	additional financial obligations of the district, the terms
1592	1592	for amendment, with and without the consent of the owner or
1593	1593	owners, of the financial obligations and the documents
1594	1594	pursuant to which such financial obligations were incurred or
1595	1595	issued, providing for the rights, duties, and authority of a
1596	1596	trustee, and providing for the exercise of legal and equitable
1597	1597	rights and remedies by such owner or owners.
1598	1598	(c) Any assignment, mortgage, or pledge of property by
1599	1599	the district for the benefit of any financial obligation shall
1600	1600	be effective, valid, and binding from the time the assignment,
1601	1601	mortgage, or pledge is made, and the property subject thereto
1602	1602	shall immediately, or as soon thereafter as the district
1603	1603	obtains any right thereto or interest therein, be subject to
1604	1604	the assignment, mortgage, or pledge without physical delivery
1605	1605	of the subject property or any agreement, document, or
1606	1606	instrument providing therefor, or any further act, and the
1607	1607	encumbrance and lien of any such assignment, mortgage, or
1608	1608	pledge shall be effective, valid, and binding as against all
1609	1609	757
1610	1610	758
1611	1611	759
1612	1612	760
1613	1613	761
1614	1614	762
1615	1615	763
1616	1616	764
1617	1617	765
1618	1618	766
1619	1619	767
1620	1620	768
1621	1621	769
1622	1622	770
1623	1623	771
1624	1624	772
1625	1625	773
1626	1626	774
1627	1627	775
1628	1628	776
1629	1629	777
1630	1630	778
1631	1631	779
1632	1632	780
1633	1633	781
1634	1634	782
1635	1635	783
1636	1636	784 SB242 INTRODUCED
1637	1637	Page 29
1638	1638	pledge shall be effective, valid, and binding as against all
1639	1639	persons having claims of any kind in tort, contract, or
1640	1640	otherwise against the district, irrespective of whether such
1641	1641	persons have actual notice thereof, from the time notice of
1642	1642	the assignment, mortgage, or pledge is filed for record: (i)
1643	1643	in the office of the judge of probate in which the certificate
1644	1644	of incorporation of the district was filed for record; and
1645	1645	(ii) in the case of any assignment, mortgage, or pledge of any
1646	1646	tangible property, whether real, personal, or mixed, in the
1647	1647	office of the judge of probate of the county in which the
1648	1648	property is or is to be located pursuant to any agreement made
1649	1649	by the district with any person respecting the location and
1650	1650	use of the property. The notice shall contain a statement of
1651	1651	the existence of any such assignment, mortgage, or pledge, a
1652	1652	description of the subject property, and a description of the
1653	1653	financial obligations secured thereby, all in terms sufficient
1654	1654	to give notice to a reasonably prudent person of the existence
1655	1655	and effect of any such assignment, mortgage, or pledge;
1656	1656	provided, the notice may be in form of: (i) a summary
1657	1657	statement; or (ii) an executed counterpart of the agreement,
1658	1658	document, or instrument which contains the assignment,
1659	1659	mortgage, or pledge. The recording of the notice shall operate
1660	1660	as constructive notice of the contents thereof.
1661	1661	(d) All financial obligations assumed, incurred, or
1662	1662	issued by an innovation district shall be solely and
1663	1663	exclusively an obligation of the district and shall not create
1664	1664	a direct, indirect, or contingent obligation or pecuniary
1665	1665	liability, or general obligation, or charge against the
1666	1666	general assets, credit, funds, property, revenues, or taxing
1667	1667	785
1668	1668	786
1669	1669	787
1670	1670	788
1671	1671	789
1672	1672	790
1673	1673	791
1674	1674	792
1675	1675	793
1676	1676	794
1677	1677	795
1678	1678	796
1679	1679	797
1680	1680	798
1681	1681	799
1682	1682	800
1683	1683	801
1684	1684	802
1685	1685	803
1686	1686	804
1687	1687	805
1688	1688	806
1689	1689	807
1690	1690	808
1691	1691	809
1692	1692	810
1693	1693	811
1694	1694	812 SB242 INTRODUCED
1695	1695	Page 30
1696	1696	general assets, credit, funds, property, revenues, or taxing
1697	1697	power of the state or any subdivision, including, but not
1698	1698	limited to, any authorizing subdivision.
1699	1699	(e) The owner or owners of any financial obligation or
1700	1700	financial obligations of the district shall have no recourse
1701	1701	against any incorporator, or any past, present, or future
1702	1702	director, officer, employee, or agent of the district, or of
1703	1703	any successor thereof, for the payment of any amount which
1704	1704	shall have become due and payable under the financial
1705	1705	obligation or financial obligations or for the payment or
1706	1706	performance of any agreement, document, or instrument pursuant
1707	1707	to which the financial obligation or financial obligations
1708	1708	were assumed, incurred, or issued by which the financial
1709	1709	obligation or financial obligations shall be secured.
1710	1710	Section 10. Validation of Financial Obligations of an
1711	1711	Innovation District.
1712	1712	(a) An innovation district shall constitute a "unit"
1713	1713	for purposes of Article 17 of Chapter 6 of Title 6 of the Code
1714	1714	of Alabama 1975. An innovation district, in the determination
1715	1715	of the board, may file a petition with respect to any
1716	1716	financial obligation or financial obligations thereof pursuant
1717	1717	to Article 17 of Chapter 6 of Title 6 of the Code of Alabama
1718	1718	1975.
1719	1719	(b)(1) An innovation district, in the determination of
1720	1720	the board and upon the adoption by the board of a resolution
1721	1721	providing for the issuance of financial obligations, may cause
1722	1722	a notice respecting the issuance of the financial obligations
1723	1723	to be published once a week for two consecutive weeks in each
1724	1724	county in which shall be located any project financed or in
1725	1725	813
1726	1726	814
1727	1727	815
1728	1728	816
1729	1729	817
1730	1730	818
1731	1731	819
1732	1732	820
1733	1733	821
1734	1734	822
1735	1735	823
1736	1736	824
1737	1737	825
1738	1738	826
1739	1739	827
1740	1740	828
1741	1741	829
1742	1742	830
1743	1743	831
1744	1744	832
1745	1745	833
1746	1746	834
1747	1747	835
1748	1748	836
1749	1749	837
1750	1750	838
1751	1751	839
1752	1752	840 SB242 INTRODUCED
1753	1753	Page 31
1754	1754	county in which shall be located any project financed or in
1755	1755	any way assisted by the issuance of the financial obligations.
1756	1756	The publication in each such county shall be in a newspaper
1757	1757	having general circulation therein and shall be in
1758	1758	substantially the following form (the blanks being properly
1759	1759	filled in) at the end of which shall be printed the name and
1760	1760	title of either the chair or secretary of the district:
1761	1761	"____________________________, a public corporation and
1762	1762	instrumentality of the State of Alabama, on the _______ day of
1763	1763	________________, authorized the issuance of $______ principal
1764	1764	amount of __________________ (identification of the
1765	1765	obligation) of the said public corporation for purposes
1766	1766	authorized in the act of the Legislature of Alabama under
1767	1767	which the public corporation was organized. Any action or
1768	1768	proceeding questioning or contesting the validity of the said
1769	1769	financial obligations, or the instruments securing the same,
1770	1770	or the proceedings authorizing the same, must be commenced on
1771	1771	or before _________________ (here insert date determined in
1772	1772	accordance with the provisions of the next paragraph of this
1773	1773	section."
1774	1774	(2) The date stated in the notice as the date on or
1775	1775	before which any action or proceeding questioning or
1776	1776	contesting the validity of the financial obligations referred
1777	1777	to in the notice must be commenced shall be a date at least 30
1778	1778	days after the date on which occurs the last publication of
1779	1779	the notice necessary for it to have been published at least
1780	1780	once in all counties in which it is required to be published.
1781	1781	Any action or proceeding in any court to set aside or question
1782	1782	the proceedings for the issuance of the financial obligations
1783	1783	841
1784	1784	842
1785	1785	843
1786	1786	844
1787	1787	845
1788	1788	846
1789	1789	847
1790	1790	848
1791	1791	849
1792	1792	850
1793	1793	851
1794	1794	852
1795	1795	853
1796	1796	854
1797	1797	855
1798	1798	856
1799	1799	857
1800	1800	858
1801	1801	859
1802	1802	860
1803	1803	861
1804	1804	862
1805	1805	863
1806	1806	864
1807	1807	865
1808	1808	866
1809	1809	867
1810	1810	868 SB242 INTRODUCED
1811	1811	Page 32
1812	1812	the proceedings for the issuance of the financial obligations
1813	1813	referred to in the notice or to contest the validity of any
1814	1814	such financial obligations, or the validity of any instruments
1815	1815	securing the same, must be commenced on or before the date
1816	1816	determined in accordance with the preceding sentence and
1817	1817	stated in the notice as the date on or before which any such
1818	1818	action or proceeding must be commenced. After that date, no
1819	1819	right of action or defense shall be asserted questioning or
1820	1820	contesting the validity of the financial obligation or the
1821	1821	instruments securing the same, or the proceedings authorizing
1822	1822	the same, nor shall the validity of such financial obligations
1823	1823	or such instruments or proceedings be open to question in any
1824	1824	court on any ground whatsoever, except in an action or
1825	1825	proceeding commenced on or before that date.
1826	1826	Section 11. Special Authority of Public Persons to
1827	1827	Support Districts.
1828	1828	(a) In furtherance of the public purposes of this
1829	1829	chapter, the state and any public entity, upon such terms and
1830	1830	with or without consideration as it may determine and in
1831	1831	compliance with the state constitution, may undertake any of
1832	1832	the following for the benefit of any district, without regard
1833	1833	to whether any public entity may be an authorizing subdivision
1834	1834	with respect to the district or may have a project located or
1835	1835	undertaken within the jurisdiction thereof:
1836	1836	(1) Donate, grant, loan, or pledge to, or for the
1837	1837	benefit of, any district any funds, revenues, or tax proceeds
1838	1838	of the public entity;
1839	1839	(2) Perform services for the benefit of any district;
1840	1840	(3) Pay, commit to pay, or guarantee, on a continuing
1841	1841	869
1842	1842	870
1843	1843	871
1844	1844	872
1845	1845	873
1846	1846	874
1847	1847	875
1848	1848	876
1849	1849	877
1850	1850	878
1851	1851	879
1852	1852	880
1853	1853	881
1854	1854	882
1855	1855	883
1856	1856	884
1857	1857	885
1858	1858	886
1859	1859	887
1860	1860	888
1861	1861	889
1862	1862	890
1863	1863	891
1864	1864	892
1865	1865	893
1866	1866	894
1867	1867	895
1868	1868	896 SB242 INTRODUCED
1869	1869	Page 33
1870	1870	(3) Pay, commit to pay, or guarantee, on a continuing
1871	1871	basis by contractual agreement, the payment when due of all or
1872	1872	any part of the principal of, and premium and interest on, any
1873	1873	financial obligation of an innovation district for such
1874	1874	period, including the period ending on the stated maturity of
1875	1875	the financial obligation, as the public entity may determine;
1876	1876	(4) Donate, sell, convey, transfer, lease, or grant any
1877	1877	property to any district without the necessity of
1878	1878	authorization at any election of qualified voters of the
1879	1879	public entity;
1880	1880	(5) Do any and all things, whether or not specifically
1881	1881	authorized in this act, not otherwise prohibited by law, that
1882	1882	are necessary or desirable to aid and cooperate with any
1883	1883	district with respect to any project or in furtherance of the
1884	1884	public purposes of this act.
1885	1885	(b) The state and each public entity may assume, incur,
1886	1886	or issue, by private or public sale in compliance with
1887	1887	applicable state law and the state constitution, any financial
1888	1888	obligation, as a general, limited, or special obligation
1889	1889	thereof, to provide funds for any purpose of this section.
1890	1890	(c) The state and each public entity shall cause each
1891	1891	contractual agreement or instrument delivered for any purpose
1892	1892	in subsection (a) to provide for, or set forth, in the
1893	1893	agreement or instrument: (i) the purpose of the agreement; and
1894	1894	(ii) the authorization and direction of a specific officer or
1895	1895	officers, by title or office, of the public entity to pay any
1896	1896	pecuniary obligation of the public entity in lawful currency
1897	1897	of the United States and in liquidated amounts when due on a
1898	1898	date or dates certain, which amounts and dates of payment may
1899	1899	897
1900	1900	898
1901	1901	899
1902	1902	900
1903	1903	901
1904	1904	902
1905	1905	903
1906	1906	904
1907	1907	905
1908	1908	906
1909	1909	907
1910	1910	908
1911	1911	909
1912	1912	910
1913	1913	911
1914	1914	912
1915	1915	913
1916	1916	914
1917	1917	915
1918	1918	916
1919	1919	917
1920	1920	918
1921	1921	919
1922	1922	920
1923	1923	921
1924	1924	922
1925	1925	923
1926	1926	924 SB242 INTRODUCED
1927	1927	Page 34
1928	1928	date or dates certain, which amounts and dates of payment may
1929	1929	be set forth in the agreement or instrument, or schedule
1930	1930	thereto, or incorporated therein by specific reference.
1931	1931	(d) With specific regard to the state, the Governor or
1932	1932	his or her designee shall have the express authority to enter
1933	1933	into any contractual agreement or instrument, exercising the
1934	1934	state's authority hereunder.
1935	1935	(e) Any court in the state having competent
1936	1936	jurisdiction shall issue mandamus for the payment of any
1937	1937	pecuniary obligation of the state or a public entity in a
1938	1938	contractual agreement or instrument delivered pursuant to this
1939	1939	section upon proper proof of nonpayment thereof, or failure of
1940	1940	compliance with the provisions of law with respect thereto,
1941	1941	being furnished by, or on behalf of, the district or any
1942	1942	beneficiary of the pecuniary obligation of the state or the
1943	1943	public entity under the contractual agreement or instrument.
1944	1944	Section 12. Audited Financial Statements.
1945	1945	(a) An innovation district shall be required to produce
1946	1946	audited financial statements from a certified public
1947	1947	accountant, or a firm thereof, regularly engaged in the
1948	1948	auditing of financial records, or an auditor who is regularly
1949	1949	employed by the Department of Examiners of Public Accounts,
1950	1950	for each fiscal year and, when available, deliver the audited
1951	1951	financial statements to each public entity that financially
1952	1952	supports the district, if the district: (i) receives any
1953	1953	special public revenues; (ii) receives any funds, proceeds, or
1954	1954	revenues from any public entity; or (iii) issues any financial
1955	1955	obligation.
1956	1956	(b) For purposes of this section, the person conducting
1957	1957	925
1958	1958	926
1959	1959	927
1960	1960	928
1961	1961	929
1962	1962	930
1963	1963	931
1964	1964	932
1965	1965	933
1966	1966	934
1967	1967	935
1968	1968	936
1969	1969	937
1970	1970	938
1971	1971	939
1972	1972	940
1973	1973	941
1974	1974	942
1975	1975	943
1976	1976	944
1977	1977	945
1978	1978	946
1979	1979	947
1980	1980	948
1981	1981	949
1982	1982	950
1983	1983	951
1984	1984	952 SB242 INTRODUCED
1985	1985	Page 35
1986	1986	(b) For purposes of this section, the person conducting
1987	1987	an audit pursuant to subsection (a) must be a person who: (i)
1988	1988	is in fact independent; (ii) does not have any direct
1989	1989	financial interest or any material indirect financial interest
1990	1990	in the district; and (iii) is not connected with the district
1991	1991	or any officer, employee, promoter, underwriter, trustee,
1992	1992	partner, director, or person performing similar functions.
1993	1993	Section 13. Exemption of District from Taxation.
1994	1994	Each district, and the projects thereof, shall be
1995	1995	exempt from all fees, charges, and taxes levied by any judge
1996	1996	of probate or taxing authority of the state, including, but
1997	1997	not limited to, ad valorem taxes, privilege, license, and
1998	1998	excise taxes, occupational taxes, business license taxes, and
1999	1999	recording fees and taxes. The property and income of any
2000	2000	district, all financial obligations of an innovation district,
2001	2001	the income and interest from the financial obligations,
2002	2002	conveyances by or to an innovation district, and leases,
2003	2003	mortgages, and deeds of trust or trust indentures by or to an
2004	2004	innovation district, shall be exempt from all taxation in the
2005	2005	state.
2006	2006	Section 14. Exemption of District from Usury and
2007	2007	Interest Laws.
2008	2008	Each district and the contractual agreements and
2009	2009	financial obligations of the district shall be exempt from
2010	2010	state laws governing usury or prescribing or limiting interest
2011	2011	rates, including, but not limited to, Chapter 8 of Title 8 of
2012	2012	the Code of Alabama 1975.
2013	2013	Section 15. Exemption of District from Competitive Bid
2014	2014	Laws.
2015	2015	953
2016	2016	954
2017	2017	955
2018	2018	956
2019	2019	957
2020	2020	958
2021	2021	959
2022	2022	960
2023	2023	961
2024	2024	962
2025	2025	963
2026	2026	964
2027	2027	965
2028	2028	966
2029	2029	967
2030	2030	968
2031	2031	969
2032	2032	970
2033	2033	971
2034	2034	972
2035	2035	973
2036	2036	974
2037	2037	975
2038	2038	976
2039	2039	977
2040	2040	978
2041	2041	979
2042	2042	980 SB242 INTRODUCED
2043	2043	Page 36
2044	2044	Laws.
2045	2045	Each district and all contractual agreements made by
2046	2046	the district shall be exempt from state laws requiring
2047	2047	competitive bids for any contract to be entered into by any
2048	2048	public entity, including, but not limited to, Chapter 2 of
2049	2049	Title 39 and Article 3 of Chapter 16 of Title 41, of the Code
2050	2050	of Alabama 1975.
2051	2051	Section 16. Exemption of District from State Oversight.
2052	2052	Except as provided in this act, an innovation district
2053	2053	shall not be required to obtain the approval or consent of, or
2054	2054	make any filing with, or provide notice to the state or any
2055	2055	state agency, department, or other instrumentality of the
2056	2056	state, with respect to the incorporation or the amendment of
2057	2057	the certificate of incorporation of the district, or the
2058	2058	exercise of any authority or power provided in this act or
2059	2059	permitted under state law.
2060	2060	Section 17. Applicability of Certain State Laws.
2061	2061	(a) An innovation district shall be subject to Chapter
2062	2062	25 of Title 36 of the Code of Alabama 1975, but board members
2063	2063	shall not be required to file a statement of economic
2064	2064	interests under Section 36-25-14 of the Code of Alabama 1975,
2065	2065	or any successor to that law.
2066	2066	(b) Except as otherwise provided in this act, an
2067	2067	innovation district shall be subject to the Alabama Open
2068	2068	Meetings Act, Chapter 25A of Title 36 of the Code of Alabama
2069	2069	1975.
2070	2070	Section 18. District shall be Nonprofit Corporation.
2071	2071	An innovation district shall be a nonprofit
2072	2072	corporation, and no part of an innovation district's net
2073	2073	981
2074	2074	982
2075	2075	983
2076	2076	984
2077	2077	985
2078	2078	986
2079	2079	987
2080	2080	988
2081	2081	989
2082	2082	990
2083	2083	991
2084	2084	992
2085	2085	993
2086	2086	994
2087	2087	995
2088	2088	996
2089	2089	997
2090	2090	998
2091	2091	999
2092	2092	1000
2093	2093	1001
2094	2094	1002
2095	2095	1003
2096	2096	1004
2097	2097	1005
2098	2098	1006
2099	2099	1007
2100	2100	1008 SB242 INTRODUCED
2101	2101	Page 37
2102	2102	corporation, and no part of an innovation district's net
2103	2103	earnings remaining after payment of its expenses shall inure
2104	2104	to the benefit of any individual, firm, or corporation, except
2105	2105	that in the event a board shall determine that sufficient
2106	2106	provision has been made for the full payment of the expenses,
2107	2107	financial obligations, and other obligations of an innovation
2108	2108	district, then any portion, as determined by the board, of the
2109	2109	net earnings of an innovation district thereafter accruing, in
2110	2110	the discretion of the board, may be paid to one or more of the
2111	2111	district's authorizing subdivisions.
2112	2112	Section 19. Dissolution of District; Vesting of Title
2113	2113	to Property of District.
2114	2114	At any time when an innovation district has no
2115	2115	financial obligations or other executory agreements
2116	2116	outstanding, its board may adopt a resolution, which shall be
2117	2117	duly entered upon its minutes, declaring that the district
2118	2118	shall be dissolved. Upon filing for record of a certified copy
2119	2119	of the resolution in the office of the judge of probate with
2120	2120	which the district's certificate of incorporation is filed,
2121	2121	the district shall thereupon stand dissolved, and in the event
2122	2122	the district owned any property at the time of the
2123	2123	dissolution, the title to all its properties, subject to the
2124	2124	state constitution, thereupon shall vest in the district's
2125	2125	authorizing subdivision, or if the district has more than one
2126	2126	authorizing subdivision, in the district's authorizing
2127	2127	subdivisions as tenants in common.
2128	2128	Section 20. Incorporation of Multiple Districts by Same
2129	2129	Authorizing Subdivision.
2130	2130	The existence of an innovation district incorporated
2131	2131	1009
2132	2132	1010
2133	2133	1011
2134	2134	1012
2135	2135	1013
2136	2136	1014
2137	2137	1015
2138	2138	1016
2139	2139	1017
2140	2140	1018
2141	2141	1019
2142	2142	1020
2143	2143	1021
2144	2144	1022
2145	2145	1023
2146	2146	1024
2147	2147	1025
2148	2148	1026
2149	2149	1027
2150	2150	1028
2151	2151	1029
2152	2152	1030
2153	2153	1031
2154	2154	1032
2155	2155	1033
2156	2156	1034
2157	2157	1035
2158	2158	1036 SB242 INTRODUCED
2159	2159	Page 38
2160	2160	The existence of an innovation district incorporated
2161	2161	under this act shall not prevent the subsequent incorporation
2162	2162	under this act of another district pursuant to authority
2163	2163	granted by the same authorizing subdivision.
2164	2164	Section 21. Cumulative Effect of Chapter.
2165	2165	The provisions of this chapter are cumulative and shall
2166	2166	not be deemed to repeal existing laws; provided, however, the
2167	2167	provisions of this act shall supersede any other laws to the
2168	2168	extent the laws are clearly inconsistent with the provisions
2169	2169	of this act.
2170	2170	Section 22. This act shall become effective on June 1,
2171	2171	2024.
2172	2172	1037
2173	2173	1038
2174	2174	1039
2175	2175	1040
2176	2176	1041
2177	2177	1042
2178	2178	1043
2179	2179	1044
2180	2180	1045
2181	2181	1046
2182	2182	1047