16 | 18 | | To amend Section 11-20-70 and Section 11-20-73, last |
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17 | 19 | | amended by Act 2023-232, 2023 Regular Session, Code of Alabama |
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18 | 20 | | 1975, relating to agriculture authorities organized by a |
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19 | 21 | | county under Section 11-20-70 of the Code of Alabama 1975, to |
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20 | 22 | | further specify the power of an authority to develop |
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21 | 23 | | commercial facilities and to use the revenue generated to |
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22 | 24 | | support the authority's mission. |
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23 | 25 | | BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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24 | 26 | | Section 1. Section 11-20-70 and Section 11-20-73, last |
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25 | 27 | | amended by Act 2023-232, 2023 Regular Session, Code of Alabama |
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26 | 28 | | 1975, are amended to read as follows: |
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27 | 29 | | "§11-20-70 |
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28 | 30 | | (a) An agriculture authority may be established in any |
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29 | 31 | | county to construct and operate facilities to promote |
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30 | 32 | | agricultural businesses, operations, and commodities, |
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31 | 33 | | workforce development, and economic development within the |
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32 | 34 | | county, and to otherwise raise revenue to be used for the |
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33 | 35 | | purposes of the authority, as further provided in this |
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34 | 36 | | article. The operational area of an agriculture authority may |
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35 | 37 | | not extend beyond the boundaries of the county in which an |
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36 | 38 | | agriculture authority is incorporated. |
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37 | 39 | | (b) Any number of natural persons who are residents and |
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72 | 74 | | resolution declaring it to be wise, expedient, and beneficial |
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73 | 75 | | to the county that the agriculture authority be formed and |
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74 | 76 | | that the persons filing the application are authorized to form |
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75 | 77 | | the authority. An agriculture authority may not be formed |
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76 | 78 | | under this article unless the application is approved by the |
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77 | 79 | | county commission and the resolution required herein is |
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78 | 80 | | adopted. |
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79 | 81 | | (c) Once the county commission has approved the |
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80 | 82 | | application as provided in subsection (b), the persons seeking |
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81 | 83 | | incorporation of an agriculture authority shall file articles |
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82 | 84 | | of incorporation with the office of the judge of probate that |
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83 | 85 | | do all of the following: |
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84 | 86 | | (1) Contain a statement that the incorporators propose |
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85 | 87 | | to incorporate an agriculture authority pursuant to this |
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86 | 88 | | article. |
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87 | 89 | | (2) StatesState the authorized operational area of the |
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88 | 90 | | proposed authority within the county. |
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89 | 91 | | (3) State that the county commission has approved the |
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90 | 92 | | application for an agriculture authority and has adopted a |
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91 | 93 | | resolution declaring that it is expedient that the proposed |
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92 | 94 | | authority be formed by approving the written application. |
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93 | 95 | | (d) The application shall be accompanied by articles of |
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94 | 96 | | incorporation that include all of the following: |
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95 | 97 | | (1) A designation of the authorized operational area of |
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130 | 132 | | (2) The names of the incorporators of the authority and |
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131 | 133 | | a statement that each is qualified to incorporate the |
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132 | 134 | | authority. |
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133 | 135 | | (3) The name of the authority, which must include the |
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134 | 136 | | words "Agriculture Authority " or "Agriculture Center |
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135 | 137 | | Authority" and be reasonably descriptive of the operational |
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136 | 138 | | area of the authority. |
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137 | 139 | | (4) The period of the authority, which may be |
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138 | 140 | | perpetual. |
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139 | 141 | | (5) The location of the principal office of the |
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140 | 142 | | authority, which shall be within the boundaries of the county. |
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141 | 143 | | (6) A statement that the authority is organized |
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142 | 144 | | pursuant to this article. |
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143 | 145 | | (7) If the exercise by the authority of any of its |
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144 | 146 | | powers is to be in any way prohibited, limited, or |
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145 | 147 | | conditioned, a statement of the terms of the prohibition, |
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146 | 148 | | limitation, or condition. |
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147 | 149 | | (8) The number of directors, which may not exceed |
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148 | 150 | | seven, and the duration of their respective terms of office, |
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149 | 151 | | which may not exceed six years. |
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150 | 152 | | (9) The manner of appointing directors, which shall be |
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151 | 153 | | a combination of appointment by the county commission and |
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152 | 154 | | appointment by the legislative delegation for the authorized |
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153 | 155 | | operational area of the authority; provided, however, a |
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188 | 190 | | (11) Any other matters relating to the authority that |
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189 | 191 | | the incorporators may choose to insert and that are not |
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190 | 192 | | inconsistent with this article or with state law. |
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191 | 193 | | (e) The articles shall be signed by each of the |
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192 | 194 | | incorporators. |
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193 | 195 | | (f) Upon the filing for record of the articles with the |
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194 | 196 | | office of the judge of probate, the authority shall come into |
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195 | 197 | | existence and shall constitute a public corporation under the |
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196 | 198 | | name set forth in its articles of incorporation. The |
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197 | 199 | | acceptance of articles for recording by the judge of probate |
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198 | 200 | | shall be conclusive evidence of the due, legal, and valid |
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199 | 201 | | incorporation of the agriculture authority in all courts. The |
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200 | 202 | | judge of probate shall record the articles in an appropriate |
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201 | 203 | | book in his or her office. There shall be no filing fee or |
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202 | 204 | | recording taxes due or payable on account of the filing for |
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203 | 205 | | record of the articles. |
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204 | 206 | | (g) Notwithstanding any other provision of this |
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205 | 207 | | article, the articles of incorporation or legal existence of |
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206 | 208 | | an agriculture authority shall not be deemed invalid for the |
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207 | 209 | | sole reason that the articles of incorporation of the |
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208 | 210 | | authority fail to specify an authorized operational area, and |
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209 | 211 | | every agriculture authority whose articles of incorporation |
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210 | 212 | | fail to specify an authorized operational area, but are |
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211 | 213 | | otherwise formed in accordance with this article, may do all |
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246 | 248 | | (a) An agriculture authority shall have the following |
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247 | 249 | | powers, which it may exercise in the agriculture authority's |
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248 | 250 | | authorized operational area: |
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249 | 251 | | (1) To have succession by its corporate name until |
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250 | 252 | | dissolved as provided in this article. |
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251 | 253 | | (2) To adopt bylaws making provisions for its actions |
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252 | 254 | | not inconsistent with this article. |
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253 | 255 | | (3) To institute and defend legal proceedings in any |
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254 | 256 | | court of competent jurisdiction and proper venue; provided, |
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255 | 257 | | however, that the board may not be sued in any trial court |
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256 | 258 | | other than the courts of the county of incorporation; |
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257 | 259 | | provided, further, that the officers, directors, agents, and |
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258 | 260 | | employees of an agriculture authority may not be sued for |
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259 | 261 | | their actions on behalf of the authority except for actions |
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260 | 262 | | that are unreasonable or known by the person to be unlawful or |
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261 | 263 | | are performed with reckless disregard for the lawfulness of |
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262 | 264 | | such actions. |
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263 | 265 | | (4) To plan for construction and development of an |
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264 | 266 | | agriculture center within the operational area of the |
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265 | 267 | | agriculture authority on property owned by the authority. |
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266 | 268 | | Construction and development may include, without limitation, |
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267 | 269 | | any or all of the following: |
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268 | 270 | | a. Buildings to hold offices for use by the federal |
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269 | 271 | | government, the state or any agency of the state, the county, |
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304 | 306 | | county. |
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305 | 307 | | c. Streets, boulevards, walkways, parkways, parks, or |
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306 | 308 | | other places of recreation. |
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307 | 309 | | d. Monuments, statues, or other structures beautifying |
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308 | 310 | | the agriculture center. |
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309 | 311 | | e. Community houses, meeting houses, or auditoriums. |
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310 | 312 | | f. Arenas, convention halls, sports facilities, |
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311 | 313 | | stadiums, hotels or other facilities for use as a transient |
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312 | 314 | | guest housing facility, multifamily housing, dormitory |
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313 | 315 | | housing, food courts or other food venue facilities, any |
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314 | 316 | | facilities that provide for or support any public or private |
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315 | 317 | | educational institution, and any other facilities related to |
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316 | 318 | | or incidental to the foregoing. |
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317 | 319 | | g. Music halls, art museums, art exhibits, or other |
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318 | 320 | | exhibits for the advancement of the humanities and cultural |
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319 | 321 | | development. |
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320 | 322 | | h. Any other buildings, structures, facilities, and |
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321 | 323 | | other improvements that the board of directors of the |
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322 | 324 | | agriculture authority determines are appropriate, useful, or |
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323 | 325 | | expedient to the authority's purposes from time to time. The |
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324 | 326 | | determination of the authority board of directors shall be |
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325 | 327 | | conclusive. |
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326 | 328 | | (5) To acquire property and rights and interests in |
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327 | 329 | | property by gift, grant, lease, or purchase. |
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362 | 364 | | attorneys and to fix their compensation. |
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363 | 365 | | (9) To hire professionals and enter into contracts for |
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364 | 366 | | their services in designing and supervising the construction |
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365 | 367 | | of any building, agriculture center, auditorium, arena, |
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366 | 368 | | convention hall, music hall, art museum, place of recreation, |
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367 | 369 | | art exhibit, office building, or other structure that it |
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368 | 370 | | desires to construct. |
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369 | 371 | | (10) To make and enter into contracts and to execute |
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370 | 372 | | all instruments necessary or convenient to lease or purchase |
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371 | 373 | | and own real or personal property to be used for the |
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372 | 374 | | furtherance of the purposes for the accomplishment of which |
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373 | 375 | | the authority is created. |
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374 | 376 | | (11) To plan for programs and exhibits in the |
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375 | 377 | | agriculture center for the advancement of the agricultural, |
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376 | 378 | | cultural, and workforce development interests of the citizens |
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377 | 379 | | of the county and of the municipalities thereof. |
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378 | 380 | | (12) To purchase or lease real property and rights or |
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379 | 381 | | easements therein necessary or convenient for its purposes and |
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380 | 382 | | to use the same so long as its existence shall continue. |
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381 | 383 | | (13) To accept pledges of revenues or grants of money |
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382 | 384 | | from any person or governmental entity. |
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383 | 385 | | (14) To sell and lease its property to any person or |
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384 | 386 | | governmental entity. |
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385 | 387 | | (15) To enter into financing agreements with federal or |
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420 | 422 | | workforce development interests in the county. |
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421 | 423 | | (17) To enter into long-term contracts or agreements |
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422 | 424 | | for sewer service with any Class 5 municipality within three |
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423 | 425 | | miles of the authority or a utility board of the Class 5 |
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424 | 426 | | municipality. |
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425 | 427 | | (18) To accept lease payments, loan repayments, or |
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426 | 428 | | other compensation to or for the authority or other public |
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427 | 429 | | person. |
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428 | 430 | | (19) To invest in bank deposits, U.S. Treasury bills, |
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429 | 431 | | projects, instruments, real, personal, or mixed property, or |
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430 | 432 | | any other investments as the board of directors of the |
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431 | 433 | | authority may from time to time determine to be appropriate |
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432 | 434 | | and convenient to accomplish any purpose for which an |
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433 | 435 | | agriculture authority is organized, including works of |
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434 | 436 | | internal improvement, interests in private or corporate |
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435 | 437 | | enterprises, loans of money or credit to individuals, |
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436 | 438 | | associations, or corporations; and to lend the authority's |
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437 | 439 | | credit, grant public money or things of value in aid of or to |
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438 | 440 | | any individual, association, or corporation whatsoever, or |
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439 | 441 | | become a stockholder in any such corporation, association, or |
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440 | 442 | | company by issuing bonds or otherwise even though they may be |
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441 | 443 | | in violation of Section 93 or Section 94 of the Constitution |
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442 | 444 | | of Alabama of 2022 , if done by the state, a county, city, |
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443 | 445 | | town, or other subdivision of the state, notwithstanding the |
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444 | | - | fact that any such investment or action may involve the |
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445 | | - | expenditure or appropriation of funds received from a public |
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446 | | - | person. In particular, but not by way of limitation, an |
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447 | | - | authority may invest its funds, from whatever source, in the |
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448 | | - | stock, bonds, debentures, notes, or other securities issued by |
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478 | 480 | | stock, bonds, debentures, notes, or other securities issued by |
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479 | 481 | | any person locating a project in the authority's operational |
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480 | 482 | | area and may enter into contracts or options, including |
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481 | 483 | | contracts or options for the conveyance, sale, or lease of |
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482 | 484 | | property, to any such person and make direct grants of money, |
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483 | 485 | | property, or services for the purpose of inducing the person |
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484 | 486 | | to locate a project in the authority's operational area. |
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485 | 487 | | (20) To enter into deeds, mortgages, leases, loan |
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486 | 488 | | agreements, or other agreements with any person. |
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487 | 489 | | (21) To acquire real property for the purpose of |
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488 | 490 | | establishing one or more agriculture centers; to improve |
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489 | 491 | | agriculture center sites, whether owned by the authority or by |
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490 | 492 | | any other person, including the improvement of the centers or |
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491 | 493 | | sites by the construction of roads, curbing, gutters, |
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492 | 494 | | drainage, sewerage, utilities, railroad spurs, docks, harbors, |
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493 | 495 | | ports, grading, and the like; to construct, for its own |
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494 | 496 | | account or the account of others, improvements thereon, |
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495 | 497 | | including any project, for the purpose of conveying, leasing, |
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496 | 498 | | or selling the same to any person, including the power to |
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497 | 499 | | convey, lease, or sell the same for its own account or to |
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498 | 500 | | construct the same as an inducement for any person to locate |
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499 | 501 | | and operate a project in the agriculture center or operational |
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500 | 502 | | area, even though the person may not have been identified at |
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501 | 503 | | the time that the improvement may be constructed. |
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536 | 538 | | (23) To issue its bonds for the purpose of carrying out |
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537 | 539 | | any of its powers and to apply proceeds from the sale of its |
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538 | 540 | | bonds, whether heretofore or hereafter issued, not only for |
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539 | 541 | | payment of interest thereon prior to and during the |
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540 | 542 | | construction and equipment of any buildings, structures, |
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541 | 543 | | facilities, or other improvements being financed thereby, but |
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542 | 544 | | also for payment of interest thereon. |
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543 | 545 | | (24) To mortgage and pledge any or all of its |
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544 | 546 | | properties both real and personal or any part or parts |
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545 | 547 | | thereof, as security for the payment of the principal of and |
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546 | 548 | | the interest on any bonds so issued and any agreements made in |
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547 | 549 | | connection therewith, whether then owned or thereafter |
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548 | 550 | | acquired, and to pledge the revenues and receipts therefrom or |
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549 | 551 | | from any thereof. |
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550 | 552 | | (25) To enter into contracts, agreements, options, |
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551 | 553 | | leases, loan agreements, deeds, and other instruments, and to |
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552 | 554 | | take other actions as may be necessary or convenient to |
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553 | 555 | | accomplish any purpose for which an authority is organized or |
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554 | 556 | | to exercise any power expressly granted hereunder. |
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555 | 557 | | (26) To enter into contracts, agreements, leases, or |
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556 | 558 | | other instruments, either independently or through another |
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557 | 559 | | entity, to design, develop, construct, own, or operate any |
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558 | 560 | | commercial facility, to acquire lands or other assets for the |
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559 | 561 | | facility, to raise revenue from the operation of the facility, |
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594 | 596 | | include the power to make advance payments to third parties |
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595 | 597 | | for services. |
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596 | 598 | | (b) Contracts of an agriculture authority shall be |
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597 | 599 | | executed in the name of the authority by the chair and |
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598 | 600 | | attested by the secretary of the authority. The board may |
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599 | 601 | | provide by resolution for a different form for the execution |
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600 | 602 | | of a contract by an officer or agent other than the chair and |
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601 | 603 | | secretary. A contract, irrespective of its form and of the |
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602 | 604 | | persons executing the contract, shall not be binding unless |
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603 | 605 | | the contract is authorized or ratified by the board. |
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604 | 606 | | (c) An agriculture authority may deposit its funds not |
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605 | 607 | | needed to meet expenses or obligations in any bank or building |
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606 | 608 | | and loan association, provided the deposit is fully insured by |
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607 | 609 | | a federal corporation or agency of the federal government |
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608 | 610 | | insuring deposits in financial institutions. |
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609 | 611 | | (d) In exercising the powers enumerated in this |
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610 | 612 | | section, all mortgages, contracts, judgments, investments, |
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611 | 613 | | loans, debts, and other obligations of any sort of the |
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612 | 614 | | authority due to any third party shall be recovered and |
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613 | 615 | | enforced only against the authority unless the county |
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614 | 616 | | commission approving the formation of the authority |
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615 | 617 | | specifically agrees to accept the obligation by a separate |
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616 | 618 | | affirmative vote of a majority of the members of the county |
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617 | 619 | | commission. |
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652 | 654 | | thereof in corporate form: |
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653 | 655 | | (1) To participate: As a shareholder in a corporation; |
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654 | 656 | | as a joint venturer in a joint venture, whether the joint |
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655 | 657 | | venture is to be memorialized contractually or through the |
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656 | 658 | | formation of one or more separate business entities; as a |
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657 | 659 | | general or limited partner in a limited partnership or a |
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658 | 660 | | general partnership; as a member in a nonprofit corporation or |
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659 | 661 | | limited liability company; or as a member of any other lawful |
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660 | 662 | | form of business organization, that may be involved in the |
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661 | 663 | | development or operational activities of any buildings, |
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662 | 664 | | structures, facilities, and other improvements that the board |
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663 | 665 | | of directors of the authority determines are appropriate, |
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664 | 666 | | useful, or expedient to the authority's purposes. In |
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665 | 667 | | connection with the foregoing, an authority may elect or |
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666 | 668 | | appoint an individual or individuals to a governing body and |
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667 | 669 | | enter into contracts or other agreements with other parties |
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668 | 670 | | for the development, operation, design, marketing, |
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669 | 671 | | maintenance, and use of any facilities upon the terms as the |
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670 | 672 | | board of directors of the authority determines are |
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671 | 673 | | appropriate, useful, or expedient to the authority's purposes. |
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672 | 674 | | Any determination by the authority shall be conclusive. |
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673 | 675 | | (2) To make or arrange for loans, contributions to |
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674 | 676 | | capital, and other debt and equity financing for the |
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675 | 677 | | activities of any corporation of which the authority is a |
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710 | 712 | | of any other lawful form of business organization of which the |
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711 | 713 | | authority is a member; and to guarantee loans, issue bonds, or |
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712 | 714 | | incur other forms of indebtedness on behalf of the |
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713 | 715 | | corporation, joint venture, partnership, nonprofit |
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714 | 716 | | corporation, or other business entity, for such purposes. An |
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715 | 717 | | authority may loan funds that include seller financing |
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716 | 718 | | arrangements whereby the authority is a seller to other |
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717 | 719 | | governmental entities or other business entities whether for |
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718 | 720 | | profit or nonprofit and whether affiliated or non-affiliated |
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719 | 721 | | with the authority, upon the terms as the authority shall |
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720 | 722 | | determine appropriate, useful, or expedient for the |
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721 | 723 | | authority's purposes and the determination by the authority |
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722 | 724 | | shall be conclusive. |
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723 | 725 | | (3) To create, establish, acquire, operate, or support |
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724 | 726 | | subsidiaries and affiliates, either for profit or nonprofit, |
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725 | 727 | | to assist the authority in fulfilling its purposes. |
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726 | 728 | | (4) To create, establish, or support nonaffiliated for |
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727 | 729 | | profit or nonprofit corporations or other lawful business |
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728 | 730 | | organizations that operate and have as their purposes the |
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729 | 731 | | furtherance of the authority's purposes. |
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730 | 732 | | (5) Without limiting the generality of the preceding |
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731 | 733 | | subdivisions, to accomplish and facilitate the creation, |
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732 | 734 | | establishment, acquisition, development, operation, or support |
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733 | 735 | | of any subsidiary, affiliate, nonaffiliated corporation, or |
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| 765 | + | of any subsidiary, affiliate, nonaffiliated corporation, or |
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| 766 | + | other lawful business organization by means of loans of funds, |
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| 767 | + | leases of real or personal property, gifts and grants of |
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| 768 | + | funds, or guarantees of indebtedness of the subsidiaries, |
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| 769 | + | affiliates, and non-affiliated corporations. |
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768 | 770 | | (6) In addition to any other authority to enter into |
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769 | 771 | | contracts, to enter into contracts, agreements, or |
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770 | 772 | | understandings with any other public and private parties |
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771 | 773 | | including, but not limited to, the following: |
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772 | 774 | | a. Design-build, design-build-operate, design-build- |
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773 | 775 | | own-operate, design-build-own-operate-maintain, design-build- |
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774 | 776 | | finance-operate-maintain, or other similar arrangements or |
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775 | 777 | | agreements pursuant to which the design, right-of-way |
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776 | 778 | | acquisition, relocation of structures or utilities, |
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777 | 779 | | construction, financing, ownership, management, maintenance, |
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778 | 780 | | and operation, or any combination thereof of a project is |
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779 | 781 | | accomplished by or on behalf of the authority. |
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780 | 782 | | b. Leases, licenses, franchises, concessions, or other |
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781 | 783 | | agreements for the development, operation, management, or |
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782 | 784 | | undertaking of all or any part of a project of or on behalf of |
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783 | 785 | | the authority. |
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784 | 786 | | (7) Notwithstanding any provision of law to the |
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785 | 787 | | contrary, proposals under this subsection may be evaluated and |
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786 | 788 | | awarded by the authority based on qualifications of |
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787 | 789 | | participants or best value, or both, as evaluated by |
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788 | 790 | | procedures of the authority and taking into consideration the |
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789 | 791 | | best interests of the authority. Evaluation criteria for a |
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790 | 792 | | contract procured pursuant to the preceding sentence shall be |
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791 | 793 | | set forth in the request for proposal for the contract. The |
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844 | | - | 397 |
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| 833 | + | 397 SB275 Engrossed |
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| 834 | + | Page 16 |
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| 835 | + | 2024. |
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| 836 | + | Senate |
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| 837 | + | Read for the first time and referred |
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| 838 | + | to the Senate committee on |
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| 839 | + | Agriculture, Conservation, and |
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| 840 | + | Forestry |
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| 841 | + | ................02-Apr-24 |
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| 842 | + | Read for the second time and placed |
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| 843 | + | on the calendar: |
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| 844 | + | 0 amendments |
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| 845 | + | ................04-Apr-24 |
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| 846 | + | Read for the third time and passed |
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| 847 | + | as amended |
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| 848 | + | Yeas 34 |
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| 849 | + | Nays 0 |
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| 850 | + | Abstains 0 |
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| 851 | + | ................09-Apr-24 |
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| 852 | + | Patrick Harris, |
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| 853 | + | Secretary. |
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