HB407INTRODUCED
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HB407
KHMHR5U-1
By Representative Ingram
RFD: County and Municipal Government
First Read: 06-Mar-25
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5 KHMHR5U-1 03/06/2025 KHF (L)DJ 2025-981
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First Read: 06-Mar-25
SYNOPSIS:
Under current law, a local redevelopment
authority is authorized to require payments in lieu of
tax, to be administered in a parallel manner to state
ad valorem, income, sales, and use taxes, and
authorizes such authorities to enter into any
agreements requiring the payment and enforcement of
payment in lieu of taxes due to the governing body
establishing the authority.
This bill authorizes the local redevelopment
authority to require transient occupancy tax as a
payment in lieu of tax and authorizes its payment and
enforcement.
This bill would also require these authorities
to report certain payments in lieu of taxes to the
Department of Revenue.
A BILL
TO BE ENTITLED
AN ACT
Related to local redevelopment authorities; to amend
Section 11-92C-8, Code of Alabama 1975, regarding the powers
of a local redevelopment authority; to authorize the authority
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of a local redevelopment authority; to authorize the authority
to require a payment in lieu of tax for transient occupancy
tax; and to require these authorities to report certain
payments in lieu of taxes to the Department of
Revenue.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-92C-8, Code of Alabama 1975, is
amended as follows:
"ยง11-92C-8
(a) The authority shall have the following powers,
together with all powers incidental thereto or necessary to
the 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
Section 11-92C-20, specified in its certificate of
incorporation.
(2) To sue and be sued in its own name and to prosecute
and defend civil actions in any court having jurisdiction of
the subject matter and of the parties; provided , that the
authority shall be deemed to be a governmental entity as
defined in Chapter 93 of this title for the purpose of
limiting the damages for which the authority may be liable.
(3) To adopt and make use of a corporate seal and to
alter the seal at its pleasure.
(4) To adopt and alter bylaws for the regulation and
conduct of its affairs and business.
(5) To acquire, whether by purchase, construction,
exchange, gift, lease, or otherwise, and to refinance existing
indebtedness on, improve, maintain, equip, and furnish one or
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indebtedness on, improve, maintain, equip, and furnish one or
more projects, including all real and personal properties
which the board of the authority may deem necessary in
connection therewith, regardless of whether or not the
projects shall then be in existence.
(6) To lease to others any or all of its projects and
to share and collect rent thereof, and to terminate any lease
upon the failure of the lessee to comply with any of the
obligations thereof.
(7) To sell, exchange, donate, or convey and to grant
options to any lessee to acquire any of its projects and any
or all of its properties if the board finds that action is in
furtherance of the purposes for which the authority was
organized.
(8) To issue its bonds for the purpose of carrying out
any of its powers.
(9) To mortgage and pledge any or all of its projects,
or any part or parts thereof, as security for the payment of
the principal of and interest on any bonds so issued and any
agreements made in connection therewith, whether then owned or
thereafter acquired, and to pledge the revenues and receipts
therefrom or from any thereof.
(10) To execute and deliver, in accordance with this
section and Section 11-92C-9, mortgages and deeds of trust and
trust indentures, or either.
(11) To finance, by loan, bond, grant, lease, or
otherwise, construct, erect, assemble, purchase, acquire, own,
repair, remodel, renovate, rehabilitate, modify, maintain,
extend, improve, install, sell, equip, expand, add to,
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extend, improve, install, sell, equip, expand, add to,
operate, or manage projects and to pay the costs of any
project from the proceeds of bonds, or any other funds of the
authority, or from any contributions or loans by persons,
corporations, partnerships, either general or limited, or
other entities, all of which the authority is hereby
authorized to receive, accept, and use.
(12) To issue and use the proceeds of any bonds or
other indebtedness thereof for the purpose of paying or
loaning the proceeds thereof to pay all or any part of the
cost of any project and otherwise to further or carry out the
public purpose of the authority and to pay all costs of the
authority incident to, or necessary and appropriate to,
furthering or carrying out such purpose.
(13) To make application directly or indirectly to any
federal, state, county, or municipal government or agency or
to any other source, public or private, for loans, grants,
guarantees, or other financial assistance in furtherance of
the authority's public purpose and to accept and use the same
upon the terms and conditions as are prescribed by the
federal, state, county, or municipal government or agency or
other source.
(14) To enter into agreements with the federal
government or any agency thereof to use facilities or the
services of the federal government or any agency thereof in
order to further carry out the purposes of the authority.
(15) To contract for any period with this state, state
institutions, or any city, town, municipality, or county of
the state for the use by the authority of any facilities or
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the state for the use by the authority of any facilities or
services of the state or any state institution, city, town,
municipality, or county, or for the use by any state
institution or any city, town, municipality, or county of any
facilities or services of the authority, provided the
contracts deal with activities and transactions as the
authority and any political subdivision with which the
authority contracts are by law authorized to undertake.
(16) To extend credit or make loans to any person,
corporation, partnership, either general or limited, or other
entity for the costs of any project or any part of the costs
of any project, which credit or loans may be evidenced or
secured by loan agreements, notes, mortgages, deeds to secure
debt, trust deeds, security agreements, assignments, or other
instruments, or by rentals, revenues, fees, or charges, upon
the terms and conditions as the authority shall determine to
be reasonable in connection with the extension of credit or
loans, including provision for the establishment and
maintenance of reserve funds, and, in the exercise of powers
granted hereby in connection with any project, the authority
may require the inclusion in any loan agreement, note,
mortgage, deed to secure debt, trust deed, security agreement,
assignment, or other instrument of the provisions or
requirements for guaranty of any obligations, insurance,
construction, use, operation, maintenance, and financing of a
project, and other terms and conditions, as the authority may
deem necessary or desirable.
(17) To acquire, accept, or retain equitable interests,
security interests, or other interests in any real property,
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security interests, or other interests in any real property,
personal property, or fixtures by loan agreement, note,
mortgage, deed to secure debt, trust deed, security agreement,
assignment, pledge, conveyance, contract, lien, loan
agreement, or other consensual transfer in order to secure the
repayment of any moneysmonies loaned or credit extended by the
authority.
(18) To appoint, employ, contract with, and provide for
the compensation of officers, employees, and agents,
including, without limitation, engineers, attorneys,
contractors, consultants, and fiscal advisors, as the board
shall deem necessary for the conduct of the business of the
authority.
(19) To provide the insurance as the board may deem
advisable.
(20) To make, enter into, and execute contracts,
agreements, leases, and other instruments and to take other
actions as may be necessary or convenient to accomplish any
purpose for which the authority was organized or to exercise
any power expressly granted in this chapter.
(21) To require payments in lieu of tax, to be
administered in a parallel manner to state transient
occupancy, ad valorem, income, sales, and use taxes, to be
made by any private user of the project to the authority, a
cooperative district of which the authority is a member, any
municipality, or any county, as the case may be. To enter into
any agreements requiring any person to make a payment in lieu
of taxes and to enforce the payment in lieu of taxes with all
rights of a tax assessor or tax collector within this state
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rights of a tax assessor or tax collector within this state
collecting transient occupancy, ad valorem taxes, or sales
taxes, or income taxes due to the governing body establishing
the authority.
(22) To receive and use , or cause any cooperative
district of which the authority is a member to receive and
use, the proceeds of any tax, fee, charge, or payment in lieu
of tax to pay the costs of any project or for any other
purpose for which the authority may use its own funds pursuant
to this chapter.
(23) To encourage and promote the retention,
development, and redevelopment of any military installation or
the improvement and revitalization of the local redevelopment
area and to make, contract for, or otherwise cause to be made
long-range plans or proposals for the local redevelopment area
in cooperation with the authorizing subdivision.
(24) To exercise any power granted by the laws of this
state to public or private corporations, not to include the
power of eminent domain, which is not in conflict with the
public purpose of the authority.
(25) To do all things necessary or convenient to carry
out the powers conferred by this chapter. Nothing in this
chapter shall affect any right, title, or interest in real or
personal property, whether recorded or unrecorded, that is
held by any person or entity engaged in providing utility
services.
(26) To enter into agreements with a private user.
(27) To pursue any tax liens relating to the failure of
any person to make any payments in lieu of tax.
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any person to make any payments in lieu of tax.
(28) 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.
(29) To make, enter into, and execute licenses,
contracts, agreements, leases, and other instruments and to
take other actions as may be necessary or convenient to
accomplish any purpose for which the authority was organized
or to exercise any power expressly granted under this section.
(30) 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
easements deemed necessary or desirable in connection
therewith.
(31) 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
authority, any obligation so assumed to be payable by the
authority solely out of the revenues derived from the
operation of any project or any thereof of the authority, or
any other sources of revenue, taxes, fees, or payments in lieu
of tax.
(32) To pledge for payment of any bonds issued or
obligations assumed by the authority any revenues from which
those bonds or obligations are made payable as provided in
this chapter.
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this chapter.
(33) To execute and deliver trust indentures in
accordance with this chapter.
(34) To appoint, employ, contract with, and provide for
the compensation of officers, employees, and agents,
including, but without limitation not limited to, engineers,
attorneys, accountants, architects, management consultants,
and fiscal advisers as the business of the authority may
require.
(35) To make and enforce reasonable rules governing the
use of any project managed, leased, owned, or controlled by
the authority, a cooperative district of which the authority
is a member, or any private users.
(36) To cooperate with the United States of America,
any agency or instrumentality thereof, this state, any county,
municipality, or other political subdivision of the state and
any public corporation, and to make contracts with them or any
of them, as the board may deem advisable to accomplish the
purpose for which the authority was established.
(37) 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 authority.
(38) 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.
(39) To enter into a management agreement or agreements
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(39) To enter into a management agreement or agreements
with any person for the management by the authority of any
project or any part thereof upon the terms and conditions as
may be mutually agreeable.
(40) To fix and revise from time to time reasonable
rentals, licenses, rates, fees, and other charges for the use
of any project or portion thereof owned, managed, leased, or
operated by the authority, a cooperative district of which the
authority is a member, or any private users, and to collect
all charges imposed by the foregoing.
(41) To require any users of any of its projects or any
part thereof to make a reasonable deposit with the authority
in advance to insureensure the payment of rentals, licenses,
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.
(b) All projects of the authority shall be located
wholly within the local redevelopment area."
Section 2. (a) An authority, as defined in Section
11-92C-2, Code of Alabama 1975, shall annually report any
payments received pursuant to subdivisions (21) or (22) of
Section 11-92C-8(a) to the Department of Revenue, as provided
by rule of the department.
(b) The Department of Revenue shall compile and publish
a summary of this information each year on its website.
Section 3. The Department of Revenue may adopt rules
for the implementation and administration of this act.
Section 4. This act shall become effective on October
1, 2025.
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