SB327ENROLLED
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SB327
6GE4131-3
By Senator Elliott
RFD: County and Municipal Government
First Read: 16-Apr-24
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First Read: 16-Apr-24
Enrolled, An Act,
Relating to Capital Improvement Cooperative Districts
incorporated under Chapter 99B of Title 11, Code of Alabama
1975; to amend Sections 11-99B-5, 11-99B-7, 11-99B-9, and
11-99B-11 of the Code of Alabama 1975, to authorize the
articles of incorporation to be amended to add new areas to
the district and new projects authorized to be financed; and
to authorize the imposition of rates, fees, and other charges
from users of the projects or from business owners or property
owners in the district which would be required to be approved
by the governing body forming the district if required by the
certificate of incorporation; and to provide for the use of
any funds of the district to pay for the construction costs of
the new projects.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 11-99B-5, 11-99B-7, 11-99B-9, and
11-99B-11 of the Code of Alabama 1975, are amended to read as
follows:
"§11-99B-5
(a) The certificate of incorporation of any district
may at any time and from time to time be amended in the manner
provided in this section.
(b)(1) The board shall first adopt a resolution
proposing an amendment to the certificate of incorporation
which shall be set forth in full in the said resolution and
which amendment may include, without limitation:
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which amendment may include, without limitation:
a. A change in the name of the district.
b. The addition to the project or projects of the
district of a new project or projects and the proposed
location thereof.
c. A change in the general description of the area or
areas in which the district proposes to acquire each project
or projects, including, but not limited to, the addition of
new or additional areas or property with the consent of the
owner or owners of the new or additional property.
c.d. Any matters which might have been included in the
original certificate of incorporation, or any change in any
such matters.
(2) If any proposed amendment would add any new county,
municipality, or public corporation as a member of a district,
suchthe proposed amendment shall include, in addition:
a. Provisions for election of at least one director by
the governing body of each such the new county, municipality,
or public corporation.
b. Provisions for any change in the total number of
directors that the board deems appropriate; and any provision
to give the directors proportional voting power based upon the
percentage of indebtedness and operating expenses of the
district for which the entities electing the directors will be
guarantors, or any other measure for establishing proportional
voting power of directors; provided, however, that the total
number of directors shall be at least equal to the number of
directors immediately before the amendment, plus the number
added pursuant to paragraph a. of this subdivision (2) .
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added pursuant to paragraph a. of this subdivision (2) .
c. Any provision that the board deems appropriate for
apportioning of the properties of the district upon its
dissolution among its members.
(c) After the adoption by the board of a resolution
proposing an amendment to the certificate of incorporation of
the district, the chairman of the board or other chief
executive officer of the district and the secretary of the
district shall sign and file a written application in the name
of and on behalf of the district, under its seal, with the
governing body of each member and each additional county,
municipality, or public corporation proposed to be added as a
member of the district. SuchThe application shall request each
governing body with which the application is filed to adopt a
resolution approving the proposed amendment and shall be
accompanied by a certified copy of the said resolution adopted
by the board proposing the said amendment to the certificate
of incorporation, together with such any documents in support
of the application as the said chairman or other chief
executive officer may consider appropriate.
(d) As promptly as may be practicable after the filing
of the said application with any governing body pursuant to
the provisions of subsection (c), that governing body shall
review the said application and shall adopt a resolution
either denying the said application or authorizing the
proposed amendment.
(e) Following the adoption of such a resolution by that
governing body that was the last to adopt such a resolution,
but if and only if the governing body of each other county,
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but if and only if the governing body of each other county,
public corporation, and municipality with whom such the
application was filed has theretofore adopted such a
resolution, the chairman of the board or other chief executive
officer of the district and the secretary of the district
shall sign and file for record in the office of the judge of
probate of the county where the certificate of incorporation
of the district was filed a certificate in the name of and in
behalf of the district, under its seal, reciting the adoption
of said the respective resolutions by the board and by each of
the said governing bodies and setting forth the said proposed
amendment. If the proposed amendment provides for a change in
the name of the district, there shall be filed, together with
the certificate required by the immediately preceding
sentence, a certificate of the Secretary of State showing that
the proposed new name of the district is not identical to that
of any other corporation then in existence and organized under
the laws of this state or so nearly similar to that of any
other such corporation so as to lead to confusion and
uncertainty. Upon the filing for record of each such
certificate, the said amendment to the certificate of
incorporation shall become effective. If the proposed
amendment effects a change in the name of the district, the
judge of probate shall promptly send a notice to the Secretary
of State, advising him or her of such the change."
"§11-99B-7
Each district shall have the following powers, together
with all powers incidental thereto or necessary to the
discharge thereof in corporate form:
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discharge thereof in corporate form:
(1) To have succession by its corporate name for the
duration of time, which may be in perpetuity, subject to the
provisions of Section 11-99B-15, specified in its certificate
of incorporation.
(2) To sue and to be sued in its own name in civil
actions, and to defend civil actions against it; provided,
that the district shall be deemed to be a "governmental
entity" as defined in Chapter 93 of this title , for the
purposes of limiting the damages for which the district and
its members may be liable.
(3) To adopt and make use of a corporate seal and to
alter the same at pleasure.
(4) To adopt and alter bylaws for the regulation and
conduct of its affairs and business.
(5) To acquire, receive, and take , by purchase, gift,
lease, devise, or otherwise, and to hold property of every
description, whether located in one or more counties or
municipalities.
(6) To make, enter into, and execute such licences,
contracts, agreements, leases, and other instruments and to
take such other actions as may be necessary or convenient to
accomplish any purpose for which the district was organized or
to exercise any power expressly granted under this section.
(7) To plan, establish, develop, acquire, purchase,
lease, construct, reconstruct, enlarge, improve, maintain,
equip, and operate a project or projects or any part or
combination of any thereof, whether located in one or more
counties or municipalities, and to acquire franchises and
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counties or municipalities, and to acquire franchises and
easements deemed necessary or desirable in connection
therewith.
(8) To sell and issue bonds of the district in order to
provide funds for any corporate function, use, or purpose, any
such bonds to be payable solely out of the revenues derived
from any project or projects of the district, or pursuant to
any guarantees by any of its members.
(9) To assume obligations secured by a lien on or
payable out of or secured by a pledge of the revenues from any
project or any part of any thereof that may be acquired by the
district, any obligation so assumed to be payable by the
district solely out of the revenues derived from the operation
of any project or any thereof of the district.
(10) To pledge for payment of any bonds issued or
obligations assumed by the district any revenues from which
those bonds or obligations are made payable as provided in
this chapter.
(11) To execute and deliver trust indentures in
accordance with the provisions of this chapter.
(12) To exercise the power of eminent domain in the
manner provided in and subject to the provisions of Title 18;
provided, that this subdivision shall not be deemed to
authorize the district to acquire, without the consent of the
owner or owners thereof, any property or interests therein at
the time dedicated to public use.
(13) To appoint, employ, contract with, and provide for
the compensation of such officers, employees, and agents,
including, but without limitation to, engineers, attorneys,
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including, but without limitation to, engineers, attorneys,
accountants, architects, management consultants, and fiscal
advisers as the business of the district may require.
(14) To make and enforce reasonable rules and
regulations governing the use of any project owned or
controlled by the district.
(15) To provide for such insurance as the board may
deem advisable.
(16) To invest any funds of the district that the board
may determine are not presently needed in the operation of its
properties in any investment which may be made by any of its
members.
(17) To cooperate with the United States of America,
any agency or instrumentality thereof, the state, any county,
municipality, or other political subdivision of the state , and
any public corporation and to make such contracts with them or
any of them, as the board may deem advisable to accomplish the
purpose for which the district was established.
(18) To sell and convey any of its properties that may
have become obsolete or worn out or that may no longer be
needed or useful as a part of any project of the district.
(19) To sell and convey, with or without valuable
consideration, any of its projects or any portion thereof to
any one or more counties, municipalities, or public
corporations which have the corporate power to operate the
project or portions thereof so conveyed and the property and
income of which are not subject to taxation; provided, that
any such sale and conveyance may be made only with the consent
of each member of the district, any such consent to be
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of each member of the district, any such consent to be
evidenced by a resolution adopted by the governing body of
each such member and only if any such conveyance would not
constitute a breach of any then outstanding trust indenture or
other agreement to which the district is a party.
(20) To enter into a management agreement or agreements
with any person for the management by the district of any
project or any part thereof upon such the terms and conditions
as may be mutually agreeable.
(21) To fix and revise from time to time reasonable
rentals, licenceslicenses, rates, fees, and other charges for
the use of any project or portion thereof, owned or operated
by the district, from the users of the project or projects, or
from the businesses or property owners within the district,
which shall be approved by each governing body that is a
member of the district to the extent required by its
certificate of incorporation, and to collect all charges made
by it.
(22) To require any user of any of its projects or any
part thereof to make a reasonable deposit with the district in
advance to insure ensure the payment of rentals, licences,
rates, fees, or charges, or costs of repair to any damage to
the project and to be subject to the application to the
payment thereof if and when delinquent."
"§11-99B-9
As security for payment of the principal of and the
interest on bonds issued or obligations assumed by it, the
district may enter into a contract or contracts binding itself
for the proper application of the proceeds of bonds and other
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for the proper application of the proceeds of bonds and other
funds, for the continued operation and maintenance of any
project owned by it or any part or parts thereof, for the
imposition and collection of reasonable rates,
licenceslicenses, rentals, fees, and charges for and the
promulgation adoption of reasonable regulations respecting any
such project, for the disposition and application of its gross
revenues or any part thereof, and for any other act or series
of acts not inconsistent with the provisions of this chapter
for the protection of the bonds and other obligations being
secured and the assurance that the revenues from such the
project will be sufficient to operate such the project,
maintain the same in good repair and in good operating
condition, pay the principal of and the interest on any bonds
payable from such the revenues and maintain such reserves as
may be deemed appropriate for the protection of the bonds, the
efficient operation of such the project, and the making of
replacements thereof and capital improvements thereto.
Any contract pursuant to the provisions of this section
may be set forth in any resolution of the board authorizing
the issuance of bonds or the assumption of obligations or in
any trust indenture made by the district under this chapter."
"§11-99B-11
Rates, fees, charges, rentals, and licenses for
services rendered by the district or facilities provided by
the district from any of its projects shall be so fixed and,
from time to time, revised as at all times to provide funds at
least sufficient, taking into account other sources for the
payment thereof, to:
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payment thereof, to:
(1) Pay the cost of constructing, operating,
maintaining, repairing, replacing, extending, and improving
the project or projects of the district and to pay the cost of
any new or additional projects .
(2) Pay the principal of and the interest on all bonds
issued and obligations assumed by the district that are
payable out of the revenues derived from operation of the
project or projects of the district as the said principal and
interest become due and payable.
(3) Create and maintain such reserves for the foregoing
purposes or any of them as may be provided in any trust
indenture executed by the district under this chapter or in
any resolutions of the board authorizing the issuance of
bonds, the assumption of any obligation, or the acquisition of
any such project.
(4) Make such annual payments, if any, to the United
States of America or any agency or instrumentality thereof,
the state, municipalities, counties, departments, authorities,
agencies, and political subdivisions of the state , and any
public corporations organized under the laws of the state as
the district may have contracted to make."
Section 2. This act shall become effective on October
1, 2024.
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1, 2024.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB327
Senate 25-Apr-24
I hereby certify that the within Act originated in and passed
the Senate, as amended.
Patrick Harris,
Secretary.
House of Representatives
Passed: 08-May-24
By: Senator Elliott
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