SB194ENGROSSED
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SB194
DG2P1NT-2
By Senator Melson
RFD: Agriculture, Conservation, and Forestry
First Read: 25-Feb-25
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First Read: 25-Feb-25
A BILL
TO BE ENTITLED
AN ACT
Relating to agriculture authorities; to amend Section
11-20-73, as last amended by Act 2024-236, 2024 Regular
Session, Code of Alabama 1975, to authorize authorities to
terminate or move easements on authority property via eminent
domain.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-20-73, as last amended by Act
2024-236, 2024 Regular Session, and Section 11-20-80, Code of
Alabama 1975, is amended to read as follows:
"§11-20-73
(a) An agriculture authority shall have the following
powers, which it may exercise in the agriculture authority's
authorized operational area:
(1) To have succession by its corporate name until
dissolved as provided in this article.
(2) To adopt bylaws making provisions for its actions
not inconsistent with this article.
(3) To institute and defend legal proceedings in any
court of competent jurisdiction and proper venue; provided,
however, that the board may not be sued in any trial court
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however, that the board may not be sued in any trial court
other than the courts of the county of incorporation;
provided, further, that the officers, directors, agents, and
employees of an agriculture authority may not be sued for
their actions on behalf of the authority except for actions
that are unreasonable or known by the person to be unlawful or
are performed with reckless disregard for the lawfulness of
such actions.
(4) To plan for construction and development of an
agriculture center within the operational area of the
agriculture authority on property owned by the authority.
Construction and development may include, without limitation,
any or all of the following:
a. Buildings to hold offices for use by the federal
government, the state or any agency of the state, the county,
or one or more municipalities within the county.
b. Buildings to house or accommodate public facilities
of the federal government, the state or any agency of the
state, the county, or one or more municipalities within the
county.
c. Streets, boulevards, walkways, parkways, parks, or
other places of recreation.
d. Monuments, statues, or other structures beautifying
the agriculture center.
e. Community houses, meeting houses, or auditoriums.
f. Arenas, convention halls, sports facilities,
stadiums, hotels or other facilities for use as a transient
guest housing facility, multifamily housing, dormitory
housing, food courts or other food venue facilities, any
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housing, food courts or other food venue facilities, any
facilities that provide for or support any public or private
educational institution, and any other facilities related to
or incidental to the foregoing.
g. Music halls, art museums, art exhibits, or other
exhibits for the advancement of the humanities and cultural
development.
h. Any other buildings, structures, facilities, and
other improvements that the board of directors of the
agriculture authority determines are appropriate, useful, or
expedient to the authority's purposes from time to time. The
determination of the authority board of directors shall be
conclusive.
(5) To acquire property and rights and interests in
property by gift, grant, lease, or purchase.
(6) To accept or receive gifts, bequests, and devises.
(7) To have and use a corporate seal and alter the seal
at its pleasure.
(8) To appoint officers, agents, employees, and
attorneys and to fix their compensation.
(9) To hire professionals and enter into contracts for
their services in designing and supervising the construction
of any building, agriculture center, auditorium, arena,
convention hall, music hall, art museum, place of recreation,
art exhibit, office building, or other structure that it
desires to construct.
(10) To make and enter into contracts and to execute
all instruments necessary or convenient to lease or purchase
and own real or personal property to be used for the
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and own real or personal property to be used for the
furtherance of the purposes for the accomplishment of which
the authority is created.
(11) To plan for programs and exhibits in the
agriculture center for the advancement of the agricultural,
cultural, and workforce development interests of the citizens
of the county and of the municipalities thereof.
(12) To purchase or lease real property and rights or
easements therein necessary or convenient for its purposes and
to use the same so long as its existence shall continue.
(13) To accept pledges of revenues or grants of money
from any person or governmental entity.
(14) To sell and lease its property to any person or
governmental entity.
(15) To enter into financing agreements with federal or
state agencies that may require the authority to mortgage its
property.
(16) To plan for programs and exhibits in the
agriculture center for the advancement of agricultural and
workforce development interests in the county.
(17) To enter into long-term contracts or agreements
for sewer service with any Class 5 municipality within three
miles of the authority or a utility board of the Class 5
municipality.
(18) To accept lease payments, loan repayments, or
other compensation to or for the authority or other public
person.
(19) To invest in bank deposits, U.S. Treasury bills,
projects, instruments, real, personal, or mixed property, or
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projects, instruments, real, personal, or mixed property, or
any other investments as the board of directors of the
authority may from time to time determine to be appropriate
and convenient to accomplish any purpose for which an
agriculture authority is organized, including works of
internal improvement, interests in private or corporate
enterprises, loans of money or credit to individuals,
associations, or corporations; and to lend the authority's
credit, grant public money or things of value in aid of or to
any individual, association, or corporation whatsoever, or
become a stockholder in any such corporation, association, or
company by issuing bonds or otherwise even though they may be
in violation of Section 93 or Section 94 of the Constitution
of Alabama of 2022, if done by the state, a county, city,
town, or other subdivision of the state, notwithstanding the
fact that any such investment or action may involve the
expenditure or appropriation of funds received from a public
person. In particular, but not by way of limitation, an
authority may invest its funds, from whatever source, in the
stock, bonds, debentures, notes, or other securities issued by
any person locating a project in the authority's operational
area and may enter into contracts or options, including
contracts or options for the conveyance, sale, or lease of
property, to the person and make direct grants of money,
property, or services for the purpose of inducing the person
to locate a project in the authority's operational area.
(20) To enter into deeds, mortgages, leases, loan
agreements, or other agreements with any person.
(21) To acquire real property for the purpose of
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(21) To acquire real property for the purpose of
establishing one or more agriculture centers; to improve
agriculture center sites, whether owned by the authority or by
any other person, including the improvement of the centers or
sites by the construction of roads, curbing, gutters,
drainage, sewerage, utilities, railroad spurs, docks, harbors,
ports, grading, and the like; to construct, for its own
account or the account of others, improvements thereon,
including any project, for the purpose of conveying, leasing,
or selling the same to any person, including the power to
convey, lease, or sell the same for its own account or to
construct the same as an inducement for any person to locate
and operate a project in the agriculture center or operational
area, even though the person may not have been identified at
the time that the improvement may be constructed.
(22) To sell, exchange, donate, and convey any or all
of its properties whenever its board of directors finds the
action to be in furtherance of the purposes for which the
authority was organized.
(23) To issue its bonds for the purpose of carrying out
any of its powers and to apply proceeds from the sale of its
bonds, whether heretofore or hereafter issued, not only for
payment of interest thereon prior to and during the
construction and equipment of any buildings, structures,
facilities, or other improvements being financed thereby, but
also for payment of interest thereon.
(24) To mortgage and pledge any or all of its
properties both real and personal or any part or parts
thereof, as security for the payment of the principal of and
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thereof, as security for the payment of the principal of and
the 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.
(25) To enter into contracts, agreements, options,
leases, loan agreements, deeds, and other instruments, and to
take other actions as may be necessary or convenient to
accomplish any purpose for which an authority is organized or
to exercise any power expressly granted hereunder.
(26) To enter into contracts, agreements, leases, or
other instruments, either independently or through another
entity, to design, develop, construct, own, or operate any
commercial facility, to acquire lands or other assets for the
facility, to raise revenue from the operation of the facility,
and to use any revenue from the operation of the facility to
fund projects and operations in support of the authority's
mission, including the payment of any expenses and debt of the
authority. The power provided in this subdivision shall
include the power to make advance payments to third parties
for services.
(27)a. To terminate or relocate an easement on property
owned by the authority using the same power of eminent domain
as the state possesses, which shall be exercised in the same
manner and under the same conditions as are provided by law
for the exercise of the power of eminent domain by the state.
b. This subdivision shall not apply to any easement to
which an electric utility has the right to enter upon.
(b) Contracts of an agriculture authority shall be
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(b) Contracts of an agriculture authority shall be
executed in the name of the authority by the chair and
attested by the secretary of the authority. The board may
provide by resolution for a different form for the execution
of a contract by an officer or agent other than the chair and
secretary. A contract, irrespective of its form and of the
persons executing the contract, shall not be binding unless
the contract is authorized or ratified by the board.
(c) An agriculture authority may deposit its funds not
needed to meet expenses or obligations in any bank or building
and loan association, provided the deposit is fully insured by
a federal corporation or agency of the federal government
insuring deposits in financial institutions.
(d) In exercising the powers enumerated in this
section, all mortgages, contracts, judgments, investments,
loans, debts, and other obligations of any sort of the
authority due to any third party shall be recovered and
enforced only against the authority unless the county
commission approving the formation of the authority
specifically agrees to accept the obligation by a separate
affirmative vote of a majority of the members of the county
commission.
(e) In addition to all other powers at any time
conferred on it by this section or otherwise by law, an
authority shall have the following powers together with all
powers incidental thereto or necessary to the discharge
thereof in corporate form:
(1) To participate: As a shareholder in a corporation;
as a joint venturer in a joint venture, whether the joint
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as a joint venturer in a joint venture, whether the joint
venture is to be memorialized contractually or through the
formation of one or more separate business entities; as a
general or limited partner in a limited partnership or a
general partnership; as a member in a nonprofit corporation or
limited liability company; or as a member of any other lawful
form of business organization that may be involved in the
development or operational activities of any buildings,
structures, facilities, and other improvements that the board
of directors of the authority determines are appropriate,
useful, or expedient to the authority's purposes. In
connection with the foregoing, an authority may elect or
appoint an individual or individuals to a governing body and
enter into contracts or other agreements with other parties
for the development, operation, design, marketing,
maintenance, and use of any facilities upon the terms as the
board of directors of the authority determines are
appropriate, useful, or expedient to the authority's purposes.
Any determination by the authority shall be conclusive.
(2) To make or arrange for loans, contributions to
capital, and other debt and equity financing for the
activities of any corporation of which the authority is a
shareholder; any joint venture in which the authority is a
joint venture; any limited partnership or general partnership
of which the authority is a general or limited partnership;
any nonprofit corporation in which the authority is a member
of any other lawful form of business organization of which the
authority is a member; and to guarantee loans, issue bonds, or
incur other forms of indebtedness on behalf of the
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incur other forms of indebtedness on behalf of the
corporation, joint venture, partnership, nonprofit
corporation, or other business entity, for such purposes. An
authority may loan funds that include seller financing
arrangements whereby the authority is a seller to other
governmental entities or other business entities whether for
profit or nonprofit and whether affiliated or non-affiliated
with the authority, upon the terms as the authority shall
determine appropriate, useful, or expedient for the
authority's purposes and the determination by the authority
shall be conclusive.
(3) To create, establish, acquire, operate, or support
subsidiaries and affiliates, either for profit or nonprofit,
to assist the authority in fulfilling its purposes.
(4) To create, establish, or support nonaffiliated for
profit or nonprofit corporations or other lawful business
organizations that operate and have as their purposes the
furtherance of the authority's purposes.
(5) Without limiting the generality of subdivisions (1)
through (4), to accomplish and facilitate the creation,
establishment, acquisition, development, operation, or support
of any subsidiary, affiliate, nonaffiliated corporation, or
other lawful business organization by means of loans of funds,
leases of real or personal property, gifts and grants of
funds, or guarantees of indebtedness of the subsidiaries,
affiliates, and non-affiliated corporations.
(6) In addition to any other authority to enter into
contracts, to enter into contracts, agreements, or
understandings with any other public and private parties
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understandings with any other public and private parties
including, but not limited to, the following:
a. Design-build, design-build-operate,
design-build-own-operate, design-build-own-operate-maintain,
design-build-finance-operate-maintain, or other similar
arrangements or agreements pursuant to which the design,
right-of-way acquisition, relocation of structures or
utilities, construction, financing, ownership, management,
maintenance, and operation, or any combination thereof of a
project is accomplished by or on behalf of the authority.
b. Leases, licenses, franchises, concessions, or other
agreements for the development, operation, management, or
undertaking of all or any part of a project of or on behalf of
the authority.
(7) Notwithstanding any provision of law to the
contrary, proposals under this subsection may be evaluated and
awarded by the authority based on qualifications of
participants or best value, or both, as evaluated by
procedures of the authority and taking into consideration the
best interests of the authority. Evaluation criteria for a
contract procured pursuant to the preceding sentence shall be
set forth in the request for proposal for the contract. The
contract may also be awarded through any existing procurement
authority, proposals, or other means of procurement otherwise
available to the authority."
"§11-20-81
(a) An agriculture authority, as a governmental entity,
is exempt from the payment of all state, county, and municipal
sales and use taxes. An agriculture authority and its
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sales and use taxes. An agriculture authority and its
contractors shall be granted a certificate of exemption from
sales and use taxes by the Department of Revenue as provided
in Sections 40-9-14.1 and 40-9-60, or other general law.
(b)(1) Any county or municipal sales and use tax
proceeds that are collected by an agriculture authority; a
joint venture of the authority, including a public/private
venture of the authority; or a lessee of the authority or a
joint venture of the authority, and remitted to a local taxing
authority shall be rebated by that local taxing authority to
the agriculture authority.
(2) For an agriculture authority established pursuant
to this article, after May 1, 2022, the county commission, at
the time of the formation of the authority, may opt-out of the
requirement to rebate sales taxes collected by a private
entity, joint venture partner, or public-private partnership.
(c) An agriculture authority is exempt from paying all
state, county, and local ad valorem taxes.
(d) An agriculture authority is exempt from paying any
other taxes levied by a county, municipality, or other
political subdivision of the state, including, but not limited
to, license and excise taxes imposed relating to the privilege
of engaging in any activities that the authority may engage
in.
(e) All state lodging taxes collected by an authority
and remitted to the taxing authority shall be rebated by that
taxing authority to the agriculture authority "
Section 2. This act shall become effective on October
1, 2025.
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1, 2025.
Senate
Read for the first time and referred
to the Senate committee on
Agriculture, Conservation, and
Forestry
................25-Feb-25
Read for the second time and placed
on the calendar:
0 amendments
................27-Feb-25
Read for the third time and passed
as amended
Yeas 28
Nays 0
Abstains 0
................06-Mar-25
Patrick Harris,
Secretary.
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