Alabama 2024 Regular Session

Alabama Senate Bill SB327 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~SB327ENROLLED~~
	1	+	SB327ENGROSSED
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3	3		SB327
4		-	6GE4131-3
	4	+	6GE4131-2
5	5		By Senator Elliott
6	6		RFD: County and Municipal Government
7	7		First Read: 16-Apr-24
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9	9		2
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11	11		4
12		-	5 SB327 ~~Enrolled~~
	12	+	5 SB327 Engrossed
13	13		Page 1
14	14		First Read: 16-Apr-24
15		-	Enrolled, An Act,
	15	+	A BILL
	16	+	TO BE ENTITLED
	17	+	AN ACT
16	18		Relating to Capital Improvement Cooperative Districts
17	19		incorporated under Chapter 99B of Title 11, Code of Alabama
18	20		1975; to amend Sections 11-99B-5, 11-99B-7, 11-99B-9, and
19	21		11-99B-11 of the Code of Alabama 1975, to authorize the
20	22		articles of incorporation to be amended to add new areas to
21	23		the district and new projects authorized to be financed; and
22	24		to authorize the imposition of rates, fees, and other charges
23	25		from users of the projects or from business owners or property
24	26		owners in the district which would be required to be approved
25	27		by the governing body forming the district if required by the
26	28		certificate of incorporation; and to provide for the use of
27	29		any funds of the district to pay for the construction costs of
28	30		the new projects.
29	31		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
30	32		Section 1. Sections 11-99B-5, 11-99B-7, 11-99B-9, and
31	33		11-99B-11 of the Code of Alabama 1975, are amended to read as
32	34		follows:
33	35		"§11-99B-5
34	36		(a) The certificate of incorporation of any district
35	37		may at any time and from time to time be amended in the manner
36		-	provided in this section.
37		-	(b)(1) The board shall first adopt a resolution
38		-	proposing an amendment to the certificate of incorporation
39		-	which shall be set forth in full in the said resolution and
40		-	which amendment may include, without limitation:
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68		-	28 SB327 ~~Enrolled~~
	65	+	28 SB327 Engrossed
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	67	+	may at any time and from time to time be amended in the manner
	68	+	provided in this section.
	69	+	(b)(1) The board shall first adopt a resolution
	70	+	proposing an amendment to the certificate of incorporation
	71	+	which shall be set forth in full in the said resolution and
70	72		which amendment may include, without limitation:
71	73		a. A change in the name of the district.
72	74		b. The addition to the project or projects of the
73	75		district of a new project or projects and the proposed
74	76		location thereof.
75	77		c. A change in the general description of the area or
76	78		areas in which the district proposes to acquire each project
77	79		or projects, including, but not limited to, the addition of
78	80		new or additional areas or property with the consent of the
79	81		owner or owners of the new or additional property.
80	82		c.d. Any matters which might have been included in the
81	83		original certificate of incorporation, or any change in any
82	84		such matters.
83	85		(2) If any proposed amendment would add any new county,
84	86		municipality, or public corporation as a member of a district,
85	87		suchthe proposed amendment shall include, in addition:
86	88		a. Provisions for election of at least one director by
87	89		the governing body of each such the new county, municipality,
88	90		or public corporation.
89	91		b. Provisions for any change in the total number of
90	92		directors that the board deems appropriate; and any provision
91	93		to give the directors proportional voting power based upon the
92	94		percentage of indebtedness and operating expenses of the
93	95		district for which the entities electing the directors will be
94		-	guarantors, or any other measure for establishing proportional
95		-	voting power of directors; provided, however, that the total
96		-	number of directors shall be at least equal to the number of
97		-	directors immediately before the amendment, plus the number
98		-	added pursuant to paragraph a. of this subdivision (2) .
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126		-	56 SB327 ~~Enrolled~~
	123	+	56 SB327 Engrossed
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	125	+	district for which the entities electing the directors will be
	126	+	guarantors, or any other measure for establishing proportional
	127	+	voting power of directors; provided, however, that the total
	128	+	number of directors shall be at least equal to the number of
	129	+	directors immediately before the amendment, plus the number
128	130		added pursuant to paragraph a. of this subdivision (2) .
129	131		c. Any provision that the board deems appropriate for
130	132		apportioning of the properties of the district upon its
131	133		dissolution among its members.
132	134		(c) After the adoption by the board of a resolution
133	135		proposing an amendment to the certificate of incorporation of
134	136		the district, the chairman of the board or other chief
135	137		executive officer of the district and the secretary of the
136	138		district shall sign and file a written application in the name
137	139		of and on behalf of the district, under its seal, with the
138	140		governing body of each member and each additional county,
139	141		municipality, or public corporation proposed to be added as a
140	142		member of the district. SuchThe application shall request each
141	143		governing body with which the application is filed to adopt a
142	144		resolution approving the proposed amendment and shall be
143	145		accompanied by a certified copy of the said resolution adopted
144	146		by the board proposing the said amendment to the certificate
145	147		of incorporation, together with such any documents in support
146	148		of the application as the said chairman or other chief
147	149		executive officer may consider appropriate.
148	150		(d) As promptly as may be practicable after the filing
149	151		of the said application with any governing body pursuant to
150	152		the provisions of subsection (c), that governing body shall
151	153		review the said application and shall adopt a resolution
152		-	either denying the said application or authorizing the
153		-	proposed amendment.
154		-	(e) Following the adoption of such a resolution by that
155		-	governing body that was the last to adopt such a resolution,
156		-	but if and only if the governing body of each other county,
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184		-	84 SB327 ~~Enrolled~~
	181	+	84 SB327 Engrossed
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	183	+	review the said application and shall adopt a resolution
	184	+	either denying the said application or authorizing the
	185	+	proposed amendment.
	186	+	(e) Following the adoption of such a resolution by that
	187	+	governing body that was the last to adopt such a resolution,
186	188		but if and only if the governing body of each other county,
187	189		public corporation, and municipality with whom such the
188	190		application was filed has theretofore adopted such a
189	191		resolution, the chairman of the board or other chief executive
190	192		officer of the district and the secretary of the district
191	193		shall sign and file for record in the office of the judge of
192	194		probate of the county where the certificate of incorporation
193	195		of the district was filed a certificate in the name of and in
194	196		behalf of the district, under its seal, reciting the adoption
195	197		of said the respective resolutions by the board and by each of
196	198		the said governing bodies and setting forth the said proposed
197	199		amendment. If the proposed amendment provides for a change in
198	200		the name of the district, there shall be filed, together with
199	201		the certificate required by the immediately preceding
200	202		sentence, a certificate of the Secretary of State showing that
201	203		the proposed new name of the district is not identical to that
202	204		of any other corporation then in existence and organized under
203	205		the laws of this state or so nearly similar to that of any
204	206		other such corporation so as to lead to confusion and
205	207		uncertainty. Upon the filing for record of each such
206	208		certificate, the said amendment to the certificate of
207	209		incorporation shall become effective. If the proposed
208	210		amendment effects a change in the name of the district, the
209	211		judge of probate shall promptly send a notice to the Secretary
210		-	of State, advising him or her of such the change."
211		-	"§11-99B-7
212		-	Each district shall have the following powers, together
213		-	with all powers incidental thereto or necessary to the
214		-	discharge thereof in corporate form:
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242		-	112 SB327 ~~Enrolled~~
	239	+	112 SB327 Engrossed
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	241	+	judge of probate shall promptly send a notice to the Secretary
	242	+	of State, advising him or her of such the change."
	243	+	"§11-99B-7
	244	+	Each district shall have the following powers, together
	245	+	with all powers incidental thereto or necessary to the
244	246		discharge thereof in corporate form:
245	247		(1) To have succession by its corporate name for the
246	248		duration of time, which may be in perpetuity, subject to the
247	249		provisions of Section 11-99B-15, specified in its certificate
248	250		of incorporation.
249	251		(2) To sue and to be sued in its own name in civil
250	252		actions, and to defend civil actions against it; provided,
251	253		that the district shall be deemed to be a "governmental
252	254		entity" as defined in Chapter 93 of this title , for the
253	255		purposes of limiting the damages for which the district and
254	256		its members may be liable.
255	257		(3) To adopt and make use of a corporate seal and to
256	258		alter the same at pleasure.
257	259		(4) To adopt and alter bylaws for the regulation and
258	260		conduct of its affairs and business.
259	261		(5) To acquire, receive, and take , by purchase, gift,
260	262		lease, devise, or otherwise, and to hold property of every
261	263		description, whether located in one or more counties or
262	264		municipalities.
263	265		(6) To make, enter into, and execute such licences,
264	266		contracts, agreements, leases, and other instruments and to
265	267		take such other actions as may be necessary or convenient to
266	268		accomplish any purpose for which the district was organized or
267	269		to exercise any power expressly granted under this section.
268		-	(7) To plan, establish, develop, acquire, purchase,
269		-	lease, construct, reconstruct, enlarge, improve, maintain,
270		-	equip, and operate a project or projects or any part or
271		-	combination of any thereof, whether located in one or more
272		-	counties or municipalities, and to acquire franchises and
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300		-	140 SB327 ~~Enrolled~~
	297	+	140 SB327 Engrossed
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	299	+	to exercise any power expressly granted under this section.
	300	+	(7) To plan, establish, develop, acquire, purchase,
	301	+	lease, construct, reconstruct, enlarge, improve, maintain,
	302	+	equip, and operate a project or projects or any part or
	303	+	combination of any thereof, whether located in one or more
302	304		counties or municipalities, and to acquire franchises and
303	305		easements deemed necessary or desirable in connection
304	306		therewith.
305	307		(8) To sell and issue bonds of the district in order to
306	308		provide funds for any corporate function, use, or purpose, any
307	309		such bonds to be payable solely out of the revenues derived
308	310		from any project or projects of the district, or pursuant to
309	311		any guarantees by any of its members.
310	312		(9) To assume obligations secured by a lien on or
311	313		payable out of or secured by a pledge of the revenues from any
312	314		project or any part of any thereof that may be acquired by the
313	315		district, any obligation so assumed to be payable by the
314	316		district solely out of the revenues derived from the operation
315	317		of any project or any thereof of the district.
316	318		(10) To pledge for payment of any bonds issued or
317	319		obligations assumed by the district any revenues from which
318	320		those bonds or obligations are made payable as provided in
319	321		this chapter.
320	322		(11) To execute and deliver trust indentures in
321	323		accordance with the provisions of this chapter.
322	324		(12) To exercise the power of eminent domain in the
323	325		manner provided in and subject to the provisions of Title 18;
324	326		provided, that this subdivision shall not be deemed to
325	327		authorize the district to acquire, without the consent of the
326		-	owner or owners thereof, any property or interests therein at
327		-	the time dedicated to public use.
328		-	(13) To appoint, employ, contract with, and provide for
329		-	the compensation of such officers, employees, and agents,
330		-	including, but without limitation to, engineers, attorneys,
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358		-	168 SB327 ~~Enrolled~~
	355	+	168 SB327 Engrossed
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	357	+	authorize the district to acquire, without the consent of the
	358	+	owner or owners thereof, any property or interests therein at
	359	+	the time dedicated to public use.
	360	+	(13) To appoint, employ, contract with, and provide for
	361	+	the compensation of such officers, employees, and agents,
360	362		including, but without limitation to, engineers, attorneys,
361	363		accountants, architects, management consultants, and fiscal
362	364		advisers as the business of the district may require.
363	365		(14) To make and enforce reasonable rules and
364	366		regulations governing the use of any project owned or
365	367		controlled by the district.
366	368		(15) To provide for such insurance as the board may
367	369		deem advisable.
368	370		(16) To invest any funds of the district that the board
369	371		may determine are not presently needed in the operation of its
370	372		properties in any investment which may be made by any of its
371	373		members.
372	374		(17) To cooperate with the United States of America,
373	375		any agency or instrumentality thereof, the state, any county,
374	376		municipality, or other political subdivision of the state , and
375	377		any public corporation and to make such contracts with them or
376	378		any of them, as the board may deem advisable to accomplish the
377	379		purpose for which the district was established.
378	380		(18) To sell and convey any of its properties that may
379	381		have become obsolete or worn out or that may no longer be
380	382		needed or useful as a part of any project of the district.
381	383		(19) To sell and convey, with or without valuable
382	384		consideration, any of its projects or any portion thereof to
383	385		any one or more counties, municipalities, or public
384		-	corporations which have the corporate power to operate the
385		-	project or portions thereof so conveyed and the property and
386		-	income of which are not subject to taxation; provided, that
387		-	any such sale and conveyance may be made only with the consent
388		-	of each member of the district, any such consent to be
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	413	+	196 SB327 Engrossed
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	415	+	any one or more counties, municipalities, or public
	416	+	corporations which have the corporate power to operate the
	417	+	project or portions thereof so conveyed and the property and
	418	+	income of which are not subject to taxation; provided, that
	419	+	any such sale and conveyance may be made only with the consent
418	420		of each member of the district, any such consent to be
419	421		evidenced by a resolution adopted by the governing body of
420	422		each such member and only if any such conveyance would not
421	423		constitute a breach of any then outstanding trust indenture or
422	424		other agreement to which the district is a party.
423	425		(20) To enter into a management agreement or agreements
424	426		with any person for the management by the district of any
425	427		project or any part thereof upon such the terms and conditions
426	428		as may be mutually agreeable.
427	429		(21) To fix and revise from time to time reasonable
428	430		rentals, licenceslicenses, rates, fees, and other charges for
429	431		the use of any project or portion thereof, owned or operated
430	432		by the district, from the users of the project or projects, or
431	433		from the businesses or property owners within the district,
432	434		which shall be approved by each governing body that is a
433	435		member of the district to the extent required by its
434	436		certificate of incorporation, and to collect all charges made
435	437		by it.
436	438		(22) To require any user of any of its projects or any
437	439		part thereof to make a reasonable deposit with the district in
438	440		advance to insure ensure the payment of rentals, licences,
439	441		rates, fees, or charges, or costs of repair to any damage to
440	442		the project and to be subject to the application to the
441	443		payment thereof if and when delinquent."
442		-	"§11-99B-9
443		-	As security for payment of the principal of and the
444		-	interest on bonds issued or obligations assumed by it, the
445		-	district may enter into a contract or contracts binding itself
446		-	for the proper application of the proceeds of bonds and other
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474		-	224 SB327 ~~Enrolled~~
	471	+	224 SB327 Engrossed
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	473	+	payment thereof if and when delinquent."
	474	+	"§11-99B-9
	475	+	As security for payment of the principal of and the
	476	+	interest on bonds issued or obligations assumed by it, the
	477	+	district may enter into a contract or contracts binding itself
476	478		for the proper application of the proceeds of bonds and other
477	479		funds, for the continued operation and maintenance of any
478	480		project owned by it or any part or parts thereof, for the
479	481		imposition and collection of reasonable rates,
480	482		licenceslicenses, rentals, fees, and charges for and the
481	483		promulgation adoption of reasonable regulations respecting any
482	484		such project, for the disposition and application of its gross
483	485		revenues or any part thereof, and for any other act or series
484	486		of acts not inconsistent with the provisions of this chapter
485	487		for the protection of the bonds and other obligations being
486	488		secured and the assurance that the revenues from such the
487	489		project will be sufficient to operate such the project,
488	490		maintain the same in good repair and in good operating
489	491		condition, pay the principal of and the interest on any bonds
490	492		payable from such the revenues and maintain such reserves as
491	493		may be deemed appropriate for the protection of the bonds, the
492	494		efficient operation of such the project, and the making of
493	495		replacements thereof and capital improvements thereto.
494	496		Any contract pursuant to the provisions of this section
495	497		may be set forth in any resolution of the board authorizing
496	498		the issuance of bonds or the assumption of obligations or in
497	499		any trust indenture made by the district under this chapter."
498	500		"§11-99B-11
499	501		Rates, fees, charges, rentals, and licenses for
500		-	services rendered by the district or facilities provided by
501		-	the district from any of its projects shall be so fixed and,
502		-	from time to time, revised as at all times to provide funds at
503		-	least sufficient, taking into account other sources for the
504		-	payment thereof, to:
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532		-	252 SB327 ~~Enrolled~~
	529	+	252 SB327 Engrossed
533	530		Page 10
	531	+	Rates, fees, charges, rentals, and licenses for
	532	+	services rendered by the district or facilities provided by
	533	+	the district from any of its projects shall be so fixed and,
	534	+	from time to time, revised as at all times to provide funds at
	535	+	least sufficient, taking into account other sources for the
534	536		payment thereof, to:
535	537		(1) Pay the cost of constructing, operating,
536	538		maintaining, repairing, replacing, extending, and improving
537	539		the project or projects of the district and to pay the cost of
538	540		any new or additional projects .
539	541		(2) Pay the principal of and the interest on all bonds
540	542		issued and obligations assumed by the district that are
541	543		payable out of the revenues derived from operation of the
542	544		project or projects of the district as the said principal and
543	545		interest become due and payable.
544	546		(3) Create and maintain such reserves for the foregoing
545	547		purposes or any of them as may be provided in any trust
546	548		indenture executed by the district under this chapter or in
547	549		any resolutions of the board authorizing the issuance of
548	550		bonds, the assumption of any obligation, or the acquisition of
549	551		any such project.
550	552		(4) Make such annual payments, if any, to the United
551	553		States of America or any agency or instrumentality thereof,
552	554		the state, municipalities, counties, departments, authorities,
553	555		agencies, and political subdivisions of the state , and any
554	556		public corporations organized under the laws of the state as
555	557		the district may have contracted to make."
556	558		Section 2. This act shall become effective on October
557	559		1, 2024.
558	560		253
559	561		254
560	562		255
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580		-	275 SB327 Enrolled
581		-	Page 11
582		-	1, 2024.
583		-	________________________________________________
584		-	President and Presiding Officer of the Senate
585		-	________________________________________________
586		-	Speaker of the House of Representatives
587		-	SB327
588		-	Senate 25-Apr-24
589		-	I hereby certify that the within Act originated in and passed
590		-	the Senate, as amended.
591		-	Patrick Harris,
592		-	Secretary.
593		-	House of Representatives
594		-	Passed: 08-May-24
595		-	By: Senator Elliott
	582	+	275
596	583		276
597	584		277
598	585		278
599	586		279
600		-	280
	587	+	280 SB327 Engrossed
	588	+	Page 11
	589	+	1, 2024.
	590	+	Senate
	591	+	Read for the first time and referred
	592	+	to the Senate committee on County
	593	+	and Municipal Government
	594	+	................16-Apr-24
	595	+	Read for the second time and placed
	596	+	on the calendar:
	597	+	1 amendment
	598	+	................23-Apr-24
	599	+	Read for the third time and passed
	600	+	as amended
	601	+	Yeas 32
	602	+	Nays 0
	603	+	Abstains 0
	604	+	................25-Apr-24
	605	+	Patrick Harris,
	606	+	Secretary.
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