Alabama 2025 Regular Session

Alabama House Bill HB407 Compare Versions

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

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1	1	HB407INTRODUCED
2	2	Page 0
3	3	HB407
4	4	KHMHR5U-1
5	5	By Representative Ingram
6	6	RFD: County and Municipal Government
7	7	First Read: 06-Mar-25
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12	12	5 KHMHR5U-1 03/06/2025 KHF (L)DJ 2025-981
13	13	Page 1
14	14	First Read: 06-Mar-25
15	15	SYNOPSIS:
16	16	Under current law, a local redevelopment
17	17	authority is authorized to require payments in lieu of
18	18	tax, to be administered in a parallel manner to state
19	19	ad valorem, income, sales, and use taxes, and
20	20	authorizes such authorities to enter into any
21	21	agreements requiring the payment and enforcement of
22	22	payment in lieu of taxes due to the governing body
23	23	establishing the authority.
24	24	This bill authorizes the local redevelopment
25	25	authority to require transient occupancy tax as a
26	26	payment in lieu of tax and authorizes its payment and
27	27	enforcement.
28	28	This bill would also require these authorities
29	29	to report certain payments in lieu of taxes to the
30	30	Department of Revenue.
31	31	A BILL
32	32	TO BE ENTITLED
33	33	AN ACT
34	34	Related to local redevelopment authorities; to amend
35	35	Section 11-92C-8, Code of Alabama 1975, regarding the powers
36	36	of a local redevelopment authority; to authorize the authority
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66	66	of a local redevelopment authority; to authorize the authority
67	67	to require a payment in lieu of tax for transient occupancy
68	68	tax; and to require these authorities to report certain
69	69	payments in lieu of taxes to the Department of
70	70	Revenue.
71	71	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
72	72	Section 1. Section 11-92C-8, Code of Alabama 1975, is
73	73	amended as follows:
74	74	"§11-92C-8
75	75	(a) The authority shall have the following powers,
76	76	together with all powers incidental thereto or necessary to
77	77	the discharge thereof in corporate form:
78	78	(1) To have succession by its corporate name for the
79	79	duration of time, which may be in perpetuity, subject to
80	80	Section 11-92C-20, specified in its certificate of
81	81	incorporation.
82	82	(2) To sue and be sued in its own name and to prosecute
83	83	and defend civil actions in any court having jurisdiction of
84	84	the subject matter and of the parties; provided , that the
85	85	authority shall be deemed to be a governmental entity as
86	86	defined in Chapter 93 of this title for the purpose of
87	87	limiting the damages for which the authority may be liable.
88	88	(3) To adopt and make use of a corporate seal and to
89	89	alter the seal at its pleasure.
90	90	(4) To adopt and alter bylaws for the regulation and
91	91	conduct of its affairs and business.
92	92	(5) To acquire, whether by purchase, construction,
93	93	exchange, gift, lease, or otherwise, and to refinance existing
94	94	indebtedness on, improve, maintain, equip, and furnish one or
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124	124	indebtedness on, improve, maintain, equip, and furnish one or
125	125	more projects, including all real and personal properties
126	126	which the board of the authority may deem necessary in
127	127	connection therewith, regardless of whether or not the
128	128	projects shall then be in existence.
129	129	(6) To lease to others any or all of its projects and
130	130	to share and collect rent thereof, and to terminate any lease
131	131	upon the failure of the lessee to comply with any of the
132	132	obligations thereof.
133	133	(7) To sell, exchange, donate, or convey and to grant
134	134	options to any lessee to acquire any of its projects and any
135	135	or all of its properties if the board finds that action is in
136	136	furtherance of the purposes for which the authority was
137	137	organized.
138	138	(8) To issue its bonds for the purpose of carrying out
139	139	any of its powers.
140	140	(9) To mortgage and pledge any or all of its projects,
141	141	or any part or parts thereof, as security for the payment of
142	142	the principal of and interest on any bonds so issued and any
143	143	agreements made in connection therewith, whether then owned or
144	144	thereafter acquired, and to pledge the revenues and receipts
145	145	therefrom or from any thereof.
146	146	(10) To execute and deliver, in accordance with this
147	147	section and Section 11-92C-9, mortgages and deeds of trust and
148	148	trust indentures, or either.
149	149	(11) To finance, by loan, bond, grant, lease, or
150	150	otherwise, construct, erect, assemble, purchase, acquire, own,
151	151	repair, remodel, renovate, rehabilitate, modify, maintain,
152	152	extend, improve, install, sell, equip, expand, add to,
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182	182	extend, improve, install, sell, equip, expand, add to,
183	183	operate, or manage projects and to pay the costs of any
184	184	project from the proceeds of bonds, or any other funds of the
185	185	authority, or from any contributions or loans by persons,
186	186	corporations, partnerships, either general or limited, or
187	187	other entities, all of which the authority is hereby
188	188	authorized to receive, accept, and use.
189	189	(12) To issue and use the proceeds of any bonds or
190	190	other indebtedness thereof for the purpose of paying or
191	191	loaning the proceeds thereof to pay all or any part of the
192	192	cost of any project and otherwise to further or carry out the
193	193	public purpose of the authority and to pay all costs of the
194	194	authority incident to, or necessary and appropriate to,
195	195	furthering or carrying out such purpose.
196	196	(13) To make application directly or indirectly to any
197	197	federal, state, county, or municipal government or agency or
198	198	to any other source, public or private, for loans, grants,
199	199	guarantees, or other financial assistance in furtherance of
200	200	the authority's public purpose and to accept and use the same
201	201	upon the terms and conditions as are prescribed by the
202	202	federal, state, county, or municipal government or agency or
203	203	other source.
204	204	(14) To enter into agreements with the federal
205	205	government or any agency thereof to use facilities or the
206	206	services of the federal government or any agency thereof in
207	207	order to further carry out the purposes of the authority.
208	208	(15) To contract for any period with this state, state
209	209	institutions, or any city, town, municipality, or county of
210	210	the state for the use by the authority of any facilities or
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240	240	the state for the use by the authority of any facilities or
241	241	services of the state or any state institution, city, town,
242	242	municipality, or county, or for the use by any state
243	243	institution or any city, town, municipality, or county of any
244	244	facilities or services of the authority, provided the
245	245	contracts deal with activities and transactions as the
246	246	authority and any political subdivision with which the
247	247	authority contracts are by law authorized to undertake.
248	248	(16) To extend credit or make loans to any person,
249	249	corporation, partnership, either general or limited, or other
250	250	entity for the costs of any project or any part of the costs
251	251	of any project, which credit or loans may be evidenced or
252	252	secured by loan agreements, notes, mortgages, deeds to secure
253	253	debt, trust deeds, security agreements, assignments, or other
254	254	instruments, or by rentals, revenues, fees, or charges, upon
255	255	the terms and conditions as the authority shall determine to
256	256	be reasonable in connection with the extension of credit or
257	257	loans, including provision for the establishment and
258	258	maintenance of reserve funds, and, in the exercise of powers
259	259	granted hereby in connection with any project, the authority
260	260	may require the inclusion in any loan agreement, note,
261	261	mortgage, deed to secure debt, trust deed, security agreement,
262	262	assignment, or other instrument of the provisions or
263	263	requirements for guaranty of any obligations, insurance,
264	264	construction, use, operation, maintenance, and financing of a
265	265	project, and other terms and conditions, as the authority may
266	266	deem necessary or desirable.
267	267	(17) To acquire, accept, or retain equitable interests,
268	268	security interests, or other interests in any real property,
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298	298	security interests, or other interests in any real property,
299	299	personal property, or fixtures by loan agreement, note,
300	300	mortgage, deed to secure debt, trust deed, security agreement,
301	301	assignment, pledge, conveyance, contract, lien, loan
302	302	agreement, or other consensual transfer in order to secure the
303	303	repayment of any moneysmonies loaned or credit extended by the
304	304	authority.
305	305	(18) To appoint, employ, contract with, and provide for
306	306	the compensation of officers, employees, and agents,
307	307	including, without limitation, engineers, attorneys,
308	308	contractors, consultants, and fiscal advisors, as the board
309	309	shall deem necessary for the conduct of the business of the
310	310	authority.
311	311	(19) To provide the insurance as the board may deem
312	312	advisable.
313	313	(20) To make, enter into, and execute contracts,
314	314	agreements, leases, and other instruments and to take other
315	315	actions as may be necessary or convenient to accomplish any
316	316	purpose for which the authority was organized or to exercise
317	317	any power expressly granted in this chapter.
318	318	(21) To require payments in lieu of tax, to be
319	319	administered in a parallel manner to state transient
320	320	occupancy, ad valorem, income, sales, and use taxes, to be
321	321	made by any private user of the project to the authority, a
322	322	cooperative district of which the authority is a member, any
323	323	municipality, or any county, as the case may be. To enter into
324	324	any agreements requiring any person to make a payment in lieu
325	325	of taxes and to enforce the payment in lieu of taxes with all
326	326	rights of a tax assessor or tax collector within this state
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356	356	rights of a tax assessor or tax collector within this state
357	357	collecting transient occupancy, ad valorem taxes, or sales
358	358	taxes, or income taxes due to the governing body establishing
359	359	the authority.
360	360	(22) To receive and use , or cause any cooperative
361	361	district of which the authority is a member to receive and
362	362	use, the proceeds of any tax, fee, charge, or payment in lieu
363	363	of tax to pay the costs of any project or for any other
364	364	purpose for which the authority may use its own funds pursuant
365	365	to this chapter.
366	366	(23) To encourage and promote the retention,
367	367	development, and redevelopment of any military installation or
368	368	the improvement and revitalization of the local redevelopment
369	369	area and to make, contract for, or otherwise cause to be made
370	370	long-range plans or proposals for the local redevelopment area
371	371	in cooperation with the authorizing subdivision.
372	372	(24) To exercise any power granted by the laws of this
373	373	state to public or private corporations, not to include the
374	374	power of eminent domain, which is not in conflict with the
375	375	public purpose of the authority.
376	376	(25) To do all things necessary or convenient to carry
377	377	out the powers conferred by this chapter. Nothing in this
378	378	chapter shall affect any right, title, or interest in real or
379	379	personal property, whether recorded or unrecorded, that is
380	380	held by any person or entity engaged in providing utility
381	381	services.
382	382	(26) To enter into agreements with a private user.
383	383	(27) To pursue any tax liens relating to the failure of
384	384	any person to make any payments in lieu of tax.
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414	414	any person to make any payments in lieu of tax.
415	415	(28) To acquire, receive, and take, by purchase, gift,
416	416	lease, devise, or otherwise, and to hold property of every
417	417	description, whether located in one or more counties or
418	418	municipalities.
419	419	(29) To make, enter into, and execute licenses,
420	420	contracts, agreements, leases, and other instruments and to
421	421	take other actions as may be necessary or convenient to
422	422	accomplish any purpose for which the authority was organized
423	423	or to exercise any power expressly granted under this section.
424	424	(30) To plan, establish, develop, acquire, purchase,
425	425	lease, construct, reconstruct, enlarge, improve, maintain,
426	426	equip, and operate a project or projects or any part or
427	427	combination of any thereof, whether located in one or more
428	428	counties or municipalities, and to acquire franchises and
429	429	easements deemed necessary or desirable in connection
430	430	therewith.
431	431	(31) To assume obligations secured by a lien on or
432	432	payable out of or secured by a pledge of the revenues from any
433	433	project or any part of any thereof that may be acquired by the
434	434	authority, any obligation so assumed to be payable by the
435	435	authority solely out of the revenues derived from the
436	436	operation of any project or any thereof of the authority, or
437	437	any other sources of revenue, taxes, fees, or payments in lieu
438	438	of tax.
439	439	(32) To pledge for payment of any bonds issued or
440	440	obligations assumed by the authority any revenues from which
441	441	those bonds or obligations are made payable as provided in
442	442	this chapter.
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472	472	this chapter.
473	473	(33) To execute and deliver trust indentures in
474	474	accordance with this chapter.
475	475	(34) To appoint, employ, contract with, and provide for
476	476	the compensation of officers, employees, and agents,
477	477	including, but without limitation not limited to, engineers,
478	478	attorneys, accountants, architects, management consultants,
479	479	and fiscal advisers as the business of the authority may
480	480	require.
481	481	(35) To make and enforce reasonable rules governing the
482	482	use of any project managed, leased, owned, or controlled by
483	483	the authority, a cooperative district of which the authority
484	484	is a member, or any private users.
485	485	(36) To cooperate with the United States of America,
486	486	any agency or instrumentality thereof, this state, any county,
487	487	municipality, or other political subdivision of the state and
488	488	any public corporation, and to make contracts with them or any
489	489	of them, as the board may deem advisable to accomplish the
490	490	purpose for which the authority was established.
491	491	(37) To sell and convey any of its properties that may
492	492	have become obsolete or worn out or that may no longer be
493	493	needed or useful as a part of any project of the authority.
494	494	(38) To sell and convey, with or without valuable
495	495	consideration, any of its projects or any portion thereof to
496	496	any one or more counties, municipalities, or public
497	497	corporations which have the corporate power to operate the
498	498	project or portions thereof so conveyed and the property and
499	499	income of which are not subject to taxation.
500	500	(39) To enter into a management agreement or agreements
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530	530	(39) To enter into a management agreement or agreements
531	531	with any person for the management by the authority of any
532	532	project or any part thereof upon the terms and conditions as
533	533	may be mutually agreeable.
534	534	(40) To fix and revise from time to time reasonable
535	535	rentals, licenses, rates, fees, and other charges for the use
536	536	of any project or portion thereof owned, managed, leased, or
537	537	operated by the authority, a cooperative district of which the
538	538	authority is a member, or any private users, and to collect
539	539	all charges imposed by the foregoing.
540	540	(41) To require any users of any of its projects or any
541	541	part thereof to make a reasonable deposit with the authority
542	542	in advance to insureensure the payment of rentals, licenses,
543	543	rates, fees or charges, or costs of repair to any damage to
544	544	the project and to be subject to the application to the
545	545	payment thereof if and when delinquent.
546	546	(b) All projects of the authority shall be located
547	547	wholly within the local redevelopment area."
548	548	Section 2. (a) An authority, as defined in Section
549	549	11-92C-2, Code of Alabama 1975, shall annually report any
550	550	payments received pursuant to subdivisions (21) or (22) of
551	551	Section 11-92C-8(a) to the Department of Revenue, as provided
552	552	by rule of the department.
553	553	(b) The Department of Revenue shall compile and publish
554	554	a summary of this information each year on its website.
555	555	Section 3. The Department of Revenue may adopt rules
556	556	for the implementation and administration of this act.
557	557	Section 4. This act shall become effective on October
558	558	1, 2025.
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