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HB526
G3BRY62-2
By Representative Brown
RFD: Ways and Means General Fund
First Read: 03-Apr-25
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First Read: 03-Apr-25
A BILL
TO BE ENTITLED
AN ACT
Relating to the Alabama 21st Century Authority; to
amend Section 41-10-629, Code of Alabama 1975, establishing
the Alabama 21st Century Fund; to allow funds not needed to
pay debt service on bonds of the authority to be used to pay
other project costs and debt service obligations of the State
Industrial Development Authority; to transfer five million
dollars ($5,000,000) from the fund to the Alabama Department
of Commerce for the establishment of international offices,
enhancement of rural development strategies, and to cover
operational and personnel costs.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 41-10-629, Code of Alabama 1975, is
amended to read as follows:
"ยง41-10-629
(a) For the benefit of the State of Alabama and the
citizensresidents thereof, there is hereby created a special
fund named the "Alabama 21st Century Fund" which shall be
funded with tobacco revenues and administered in accordance
with this division. The following amounts shall be retained in
the special fund in the following fiscal years and shall be
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the special fund in the following fiscal years and shall be
used to pay principal, interest, and premium, if any, due on
bonds issued by the authority.
Fiscal Year Amount to be Retained
2000 $7,000,000
2001 9,000,000
2002 11,000,000
2003-2017 13,000,000
2018 and thereafter 16,000,000
Beginning in fiscal year 2018 and thereafter, sixteen
million dollars ($16,000,000) shall be retained in the special
fund and shall be used to pay principal, interest, and
premium, if any, due on bonds issued by the authority.
(b) Pending the use of revenues in the special fund for
the payment of debt service on the bonds, such revenues shall
be invested by the State Treasurer in permitted investments
until such revenues are needed for such purposes. Earnings on
such permitted investments shall remain a part of the special
fund. For the fiscal year ended September 30, 2015, twenty
million dollars ($20,000,000) shall be transferred from the
Alabama 21st Century Fund to the State General Fund. If amounts
in the special fund are no longer needed to pay obligations of
the Alabama 21st Century Authority, the authority must
maintain no less than 1.3 times the maximum annual debt
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maintain no less than 1.3 times the maximum annual debt
service payable on all authority obligations. Funds in excess
thereof may be used for the following:
(1) To pay for project and project costs as defined in
Section 41-10-541.
(2) To pay debt service on bonds issued by the Alabama
Incentives Financing Authority.
(3) For the fiscal year ending September 30, 2025, a
one-time transfer of $5,000,000 from the Alabama 21st Century
Fund to the Alabama Department of Commerce for the
establishment of international offices, enhancement of rural
development strategies, and to cover operational and personnel
costs.
(c) In addition to any uses permitted by law, the funds
of the Alabama 21st Century Authority may be used in any
manner consistent with this article as determined by
resolution of the authority. "
Section 2. This act shall become effective
immediately.
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immediately.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means General
Fund
................03-Apr-25
Read for the second time and placed
on the calendar:
1 amendment
................09-Apr-25
Read for the third time and passed
as amended
Yeas 96
Nays 0
Abstains 3
................15-Apr-25
John Treadwell
Clerk
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