(iv) information technology;

(v) research and development.

d.

Corporate operations for any of the foregoing.

(b) In furtherance of subsection (a) the legislative Page 5 intent and public purpose of this act is:

(1) To provide authority to municipalities and counties for the creation of districts with corporate authority and power to provide, in the discretion of the districts, public resources,resources; including, without limitation, special public revenues, on a continuing basis to qualified enterprises for the location, development, support, and continuation of projects in the state;

(a) The governing body of any subdivision, or the Page 5 HB349 INTRODUCED governing bodies of any two or more subdivisions, may authorize the incorporation and organization of an innovation district as a public corporation of the state, with powers set forth in this act, for the purpose of establishing or undertaking any project.

(4) Attach the proposed certificate of incorporation of the proposed district and state that the proposed certificate Page 6 of incorporation is attached to the application and made a part thereof;

Page 6 HB349 INTRODUCED (c) The certificate of incorporation of an innovation district shall state all of the following:

(4) The name of each authorizing subdivision together with the date on which the governing body thereof adopted an Page 7 authorizing resolution.

(7) The number of members, which must be an odd number not less than three, of the board of directors of the district,district with each director to hold a place on the board, which may be designated by number in consecutive order, and Page 7 HB349 INTRODUCED for each such place the duration of the term of office, which shall not be in excess of six years,years. for the director holding such place, and, subject to the provisions of this act, the person or persons, which may include any natural person, any corporate person, any public entity, or the state, having the authority and power of appointment of the director holding such place;

provided,(8) however,A adescription majority of the directorsgeographic boundaries of the districtinnovation mustdistrict, which description may be appointedby reference to tax assessment tracts in accordance with the tax assessor's system, by onemetes and bounds, by subdivision lot, by reference to recorded deeds, or moreby ofother thereasonable authorizingreference subdivisions.method.

Additionally,(9) theThe certificateterms of incorporationany mayprohibition, allowlimitation, foror thecondition Alabamawith Innovationrespect Corporation to appointthe aexercise single,of non-votingany directorauthority whoor shallpower notof countthe towardsdistrict or the establishmentduration of athe quorum.district, if any.

(8)(10) TheAny termsprovision ofthat anyprovides prohibition,for limitation,the orvesting conditionof withtitle respect to theits exerciseproperty upon dissolution of anythe authoritydistrict orwhich powermust not be in violation of thethis district.act or other state law.

(9)(11) AnyThat provisionthe thatdistrict providesshall forbe thea vestingnonprofit ofcorporation titleand tono part of its propertynet uponearnings dissolutionremaining ofafter thepayment districtof whichits mustexpenses notshall beinure into violationthe benefit of thisany actindividual, firm, or othercorporation. state law.

(10)(d)(1) ThatThe thegoverning districtbody shallof be a nonprofitsubdivision corporationwith andwhich noan partapplication ofis itsfiled netpursuant earningsto remainingthis afteract, paymentas ofpromptly itsas expensespracticable, shall inurereview tothe application and the benefitattached ofPage any8 individual,form firm,of orcertificate corporation.of incorporation.

(11) Any other provision that:

a.

Describes any special public revenues that have been pledged or assigned to the district by an authorizing subdivision in the authorizing resolution;

and b.

May be required to be included in the certificate of incorporation by an authorizing subdivision in the authorizing Page 8 HB349 INTRODUCED resolution and which must not be in violation of this act or any other state law.

(d)(1) The governing body of a subdivision with which an application is filed pursuant to this act, as promptly as practicable, shall review the application and the attached form of certificate of incorporation and thereupon, at any regular or special meeting called and held in accordance with state law, either adopt a resolution denying the application or adopt an authorizing resolution in which the governing body declares that it is wise, expedient, and necessary that the proposed district be formed, approve the form and content of its certificate of incorporation, and authorize and direct the applicants to proceed to form the proposed district by the filing for record of the proposed certificate of incorporation in accordance with this act.

(e) As soon as practicable after the adoption of an Page 9 HB349 INTRODUCED authorizing resolution by each authorizing subdivision, the applicants shall do all of the following:

(3) File the certificate of incorporation for record in Page 9 the office of the judge of probate of the county in which the principal office of the district is to be located.

(1) The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which must be Page 10 HB349 INTRODUCED set forth in full in the resolution.

Page 10 (3) As promptly as practicable after the filing of the application with the authorizing subdivision, the governing body shall review the applicationapplication. and shall either adopt a resolution denying the application or adopt a resolution authorizing the proposed amendment.

An authorizing resolution shall not operate or be construed as of general and permanent nature or operation, may be adopted at the same meeting at which it is introduced, and shall be effective immediately without posting or Page 11 HB349 INTRODUCED publication by any electronic, printed, or other means.

When the certificate has been so filed and recorded, the amendment shall become effective and the certificate of incorporation shall thereupon be amended to the extent provided in the Page 11 amendment.

(c) Any natural person may serve on the board of an innovation district without regard to whether the natural Page 12 HB349 INTRODUCED person is a resident,district; owner of property, taxpayer, or elector in or of any authorizing subdivision or the state;

provided, however,however boarda membershipmajority shallof the directors must be inclusivenatural andpersons reflectwho are residents of any of the racial,authorizing gender,subdivisions geographic,of andthe economicdistrict diversityand, to the extent there are multiple authorizing subdivisions, a majority of the district.directors must be appointed by a single authorizing subdivision.

(d)A Eachminority director of the districtdirectors shallmay hold a place on the board and shall be appointed for the term of the place by the person or persons, which may include the board, any natural person,persons anywho corporateare person,not anyresidents public entity, or the state, having the authority and power of appointmentany of the directorauthorizing forsubdivisions; the place, as provided in the certificate of incorporation of the district;

provided, however,however anythingthat inany thisnon-resident actdirector to the contrary notwithstanding, a majority of the directors of the district must also be appointedapproved by onethe orgoverning morebody of theeach authorizing subdivisions.subdivision.

ExceptThe asappointment may be otherwise provided in the certificate of incorporationall ofvoting anmembers innovation district, an officer or employee of anya authorizingboard subdivisionmust shall be eligibleapproved forby appointment and may serve as a member of the boardauthorizing forsubdivisions the first to expire of the termdistrict forin whicha themanner officerset isforth appointedby or the termrespective thereof as an officer of the authorizing subdivision.subdivisions.

(e)In Eachaddition, directorthe Alabama Innovation Corporation may holdappoint a placesingle onnon-voting themember boardwho forshall successivenot termscount withouttowards limit.the establishment of a quorum.

(d) Notwithstanding any other provision of this act, board membership shall be inclusive and reflect the racial, Page 12 gender, geographic, and economic diversity of the authorizing subdivisions of the district.

(e) Each director of the district shall hold a place on the board and shall be appointed for the term of such place by the person or persons, which may include the board, any natural person, any corporate person, any public entity, or the state, having the authority and power of appointment of the director for such place, all as provided in the certificate of incorporation of the district.

Except as may be otherwise provided in the certificate of incorporation of a district, an officer or employee of any authorizing subdivision shall be eligible for appointment and may serve as a member of the board for the first to expire of the term for which such officer is appointed or the term thereof as an officer of the authorizing subdivision.

(f) Each director may hold a place on the board for successive terms without limit.

If at any time there is a vacancy on Page 13 HB349 INTRODUCED the board, whether by death, resignation, incapacity, disqualification, or otherwise, a successor director to serve for the unexpired term applicable to the vacancy shall be elected or appointed by the person or persons who appointed the predecessor director.

(f)(g) Each director shall serve as such without Page 13 compensation but shall be reimbursed for expenses actually incurred by the director while conducting his or her official duties.

(g)(h) The board may hold regular and special meetings as the board determines or as provided in the bylaws of the board.

Any meeting Page 14 HB349 INTRODUCED of the board may be adjourned from time to time by a majority of the directors present or may be so adjourned by a single director if the director is the only director present at the meeting.

No vacancy in the membership of the board or the voluntary disqualification or abstention of any member of the board shall impair the right of a quorum to exercise all the Page 14 powers and perform all the duties of the board at a regular or special meeting.

(h)(i) The determinations set forth in a resolution of the board, including the determination that an activity, facility, or undertaking, or application of funds or tax proceeds,proceeds including any special public revenues, under control of the board constitutes a "project" or are otherwise in furtherance of the purposes of this chapter, shall constitute a legislative act by the board under state law to the same extent as would similar action by a subdivision and shall be subject to judicial review as provided and limited by law for judicial review of legislative acts and determinations by a subdivision.

(i)(j) If a matter comes before the board with respect to which any director, any related party, including a sibling, spouse, or lineal descendant, or any business enterprise with which the director is associated, has any direct or indirect Page 15 HB349 INTRODUCED pecuniary interest, the director shall immediately disclose the interest to the board and remove himself or herself and withdraw from the meeting prior to the consideration, deliberation, and voting on the matter by the board.

(j)(k) The district and the incorporators, directors, officers, employees, and agents of the district shall have the same immunitylimitations fromon liability as a municipality and its officers, employees, and agents.agents for negligent acts.

NoThese actionlimitations or suit shall benot broughtapply or maintained against the district or any director thereof for or on account of the negligence of the district or director or the district's or director's agents, servants, or employees, relating to thesubcontractors construction, acquisition, installation, maintenance, operation, superintendence, or managementindependent ofPage any15 projectcontractors or facility of the innovation district.

No(l) civilAny actiondirector may be maintainedremoved againstfrom anoffice appointingin subdivision,the itssame officers,manner servants,and employees,on orthe agentssame relatinggrounds toprovided anin innovationthe district'sstate acquisition,constitution construction,and ownership,the maintenance,general operation,laws orof managementthe ofstate anyfor project,impeachment facility,and orremoval otherof improvement.officers.

(k) Any director may be removed from office in the same manner and on the same grounds provided in the state constitution and the general laws of the state for impeachment and removal of officers.

The offices of secretary and treasurer may be held by the same Page 16 HB349 INTRODUCED individual.

Page 16 (4) To adopt, alter, and repeal bylaws, regulations, and rules, not inconsistent with the provisions of this act, for the regulation and conduct of its affairs and business.

(5) Notwithstanding Chapter 1B of Title 18 of the Code of Alabama 1975, to acquire real property,property whetherwithin bythe gift,geographic purchase,boundaries transfer, foreclosure, lease, devise, exercise of the powerinnovation ofdistrict, eminentwhether domain in the manner provided by law,gift, including,purchase, Chaptertransfer, 1Aforeclosure, oflease, Title 18 of the Code of Alabama 1975, or otherwise,devise, and to construct, improve, operate, maintain, equip, and furnish the property and interests in property as Page 17 HB349 INTRODUCED the board determines to be necessary for the purposes of the district,district. which property may be located in any subdivision in the state without regard to whether the subdivision is an authorizing subdivision with respect to the district;

provided, however, the district shall not be authorized to condemn any property or interests in property held by utilities or other entities engaged in the generation, transmission, or distribution of communications, gas, electricity, water, sewer, or other utility products or services.

(10) To fix and revise, and charge and collect, fees, licenses, rates, and rentals for services rendered by the district,district within the geographic boundaries of the district or Page 17 for the use of any property ofowned by and located within the district,geographic andboundaries Pageof 18the HB349district, INTRODUCEDand to apply the proceeds thereof for any lawful purpose of the district.

(11) To the extent authorized or permitted by the state constitution, to grant, lend,loan, or donate, or otherwise make available to any person or persons any funds, money, revenues, including, but not limited to, any special public revenues, or other property of the district upon such terms as the board shall determine.determine to:

(i) any public person or persons, and (ii) upon compliance with the public notice requirements, any corporate person or corporate persons and natural person or natural persons.

(13) To pledge for the benefit of any financial obligation of the district any revenues, including, but not limited to, any special public revenues or proceeds of any special tax to which it mayis be entitled, from which the financial obligation is payable, and to mortgage or pledge its property and revenues, or any portion thereof, as further provided in this act.

(15) To make, enter into, and execute 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 Page 18 exercise any power granted under this act.

Page 19 HB349 INTRODUCED (16) To enter into contracts with, to accept aid, loans, and grants from, to cooperate with, and to take any action not specifically prohibited by this act or other applicable laws of the state that may be necessary in order to obtain or secure the aid and cooperation of the United States, the state, or any agency, department, instrumentality, or political subdivision of either in furtherance of the purposes of this act.

(18) To abate,appoint, eliminate,employ, orcontract reducewith, theand liabilityprovide for compensation of anythe taxpayeremployees forand agents of the paymentdistrict ofincluding, anybut onenot orlimited moreto, ofarchitects, theengineers, eligibleattorneys, taxesaccountants, pursuantinvestment toadvisors and financial experts, fiscal agents, and such agreements,other instruments,advisors, orconsultants, proceedingsand agents as the districtboard determines shallto be effective.necessary or desirable.

(19) To appoint,invest employ,its contractmonies, with,including, andbut providenot forlimited compensationto, of the employeesmonies andheld agentsin ofany thespecial districtfund including,created butpursuant notto limitedany to,trust architects,indenture engineers,or attorneys,agreement accountants,or investmentresolution advisorssecuring any of its financial obligations and proceeds from the sale of any financial experts,obligations fiscalnot agents,required andfor immediate use, in such otherinvestments advisors,as consultants,are andauthorized agentsby asthe laws of the boardstate determinesfor tothe bePage necessary19 orinvestment desirable.of funds and money of a municipality.

(20) To investacquire, itscreate, monies,establish, including,operate, butor notsupport, limitedor to,to theparticipate moniesas helda inmember of, any specialcorporate fundperson createdthat pursuantwill toassist anythe trustdistrict indenturein, or agreementwhich orotherwise resolutionhas securingas anya purpose of Pageaccomplishing 20the HB349purposes INTRODUCEDof itsthis financialact, obligationsincluding, andbut proceedsnot fromlimited to, the salesupport of any financialcorporate obligationsperson notby requiredmeans forof immediategrants use,or inloans suchof investmentsproperty asor are authorized by the lawsissuance of thefinancial stateobligations for the investmentbenefit ofthe fundscorporate andperson. money of a municipality.

(21) To acquire,exercise create,any establish,authority operate, or support,power orthat tois participategranted asby astate memberlaw of,to any corporateprivate personcorporation thator willpublic assistcorporation the district in, or which otherwiseis hasnot asin aconflict purposewith of accomplishing the purposes of this act,act. including, but not limited to, the support of any corporate person by means of grants or loans of property or the issuance of financial obligations for the benefit the corporate person.

(22) To exercisedo any authorityand orall powerthings thatnecessary isor grantedconvenient byto statecarry lawout toits anypurposes publicand orto privateexercise corporationits whichpowers ispursuant notto inthis conflictact withto the purposesextent ofpermitted thisby act.law.

(23) To do any and all things necessary or convenient to carry out its purposes and to exercise its powers pursuant to this act.

Contributions and Application of SpecialEligible PublicTaxes. Revenues.

(a) Each authorizing subdivision of an innovation district, anything in this act or state law to the contrary notwithstanding, and to the extent permitted by the state constitution,constitution mayand pledgeupon orcompliance assignwith anythe special public revenuesnotice forrequirements theand benefitpursuant of any district with respect to whichcontractual itagreement isauthorized, anexecuted, authorizingand subdivisiondelivered by specific provision in the authorizing resolutionsubdivisions ofand theinnovation authorizing subdivision for the district, whichfrom provisiontime shallto specifytime themay officer of the subdivision charged with performance of a pledge or assignmentassign Pageany 21eligible HB349tax INTRODUCEDto andor thefor liquidated amounts in which, and dates on which, the specialbenefit publicof revenuesany shalldistrict bewith deliveredrespect to thewhich districtit inis performancean ofauthorizing thesubdivision. pledge or assignment.

The inclusion of a description of the pledge or assignment of the special public revenues in the certificate of incorporation of the district, upon the incorporation of the district, shall constitute acceptance of, and reliance by the district upon, the continuing validity of the pledge or assignment of the special public revenues.

The pledge or assignment of the special public revenues by the authorizing subdivision for the benefit of the district shall constitute a contractual agreement between the authorizing subdivision and the district and shall be enforceable by the district by all remedies available at law or in equity, including, but not limited to, an action for mandamus in a court of competent jurisdiction.

(b) An innovation district may use the proceeds of any special public revenues made available to the district, subject to the terms and conditions upon the special public revenues, for any lawful purpose the board of the district determines to be in furtherance of the purposes of this act, including, but not limited to, the gift, grant, guarantee, loan, or other form of contribution of all or any part of the special public revenues for the benefit of any person or persons, and the pledge of all or any part of the special public revenues for the benefit of any financial obligation or financial obligations of the district.

Page 22 HB349 INTRODUCED (a) Each district shall have, and may exercise as Page 20 provided in Section 6(12), the authority and power to assume, incur, or issue, at any time and from time to time, any financial obligation or financial obligations, without limitation as to aggregate principal amount, as the board determines to be necessary or desirable for any lawful purpose of the district, including, but limited to:

(b) Each financial obligation of an innovation district may be in such form and denomination and of such tenor and maturity or maturities, shall be payable in lawful currency of the United States in such installments as serial or term obligations or a combination thereof, and at such time or times, not exceeding 45 years from the date thereof, may be payable at such place or places whether within or without the state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in Page 23 HB349 INTRODUCED such manner, may be subject to prepayment or redemption in Page 21 advance of maturity at such price or prices and upon such notice, terms, and conditions, and may contain such provisions which are not in violation of this act, all as provided in the applicable agreement, indenture, or resolution of the district that has authorized the incurrence or issuance thereof.

Page 24 HB349 INTRODUCED (e) An innovation district shall cause all financial Page 22 obligations assumed, incurred, or issued by the district to be executed by manual or electronic signature of an officer or officers as authorized and provided in the agreement, indenture, or resolution of the district which authorized the financial obligation.

Page 25 HB349 INTRODUCED (h)(1) The district shall apply the proceeds of any Page 23 financial obligation solely for the purposes for which the financial obligation has been incurred or issued, including, but not limited to, payment of the costs of incurrence or issuance of the financial obligations, including, but not limited to:

(i) The financial obligations of any district shall be legal investments in which the state and its agencies and instrumentalities, all subdivisions and public corporations organized under the laws of the state, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions, and investment companies of any kind, all administrators, guardians, executors, trustees, and other fiduciaries, and all other Page 26 HB349 INTRODUCED persons whosoever are now or may hereafter be authorized to Page 24 invest in financial obligations or other obligations of the state, may properly and legally invest funds in their control or belonging to them.

provided, the district, in its discretion, may provide property as security for any one or more financial obligations of the district without, to the extent permitted by any applicable contractual agreements, provision of the same or any other any property as Page 27 HB349 INTRODUCED security for any other financial obligation or obligations of Page 25 the district.

(c) Any assignment, mortgage, or pledge of property by the district for the benefit of any financial obligation shall be effective, valid, and binding from the time the assignment, mortgage, or pledge is made, and the property subject thereto shall immediately, or as soon thereafter as the district obtains any right thereto or interest therein, be subject to the assignment, mortgage, or pledge without physical delivery of the subject property or any agreement, document, or instrument providing therefor, or any further act, and the encumbrance and lien of any such assignment, mortgage, or pledge shall be effective, valid, and binding as against all Page 28 HB349 INTRODUCED persons having claims of any kind in tort, contract, or Page 26 otherwise against the district, irrespective of whether such persons have actual notice thereof, from the time notice of the assignment, mortgage, or pledge is filed for record:

(d) All financial obligations assumed, incurred, or issued by an innovation district shall be solely and exclusively an obligation of the district and shall not create a direct, indirect, or contingent obligation or pecuniary liability, or general obligation, or charge against the general assets, credit, funds, property, revenues, or taxing Page 29 HB349 INTRODUCED power of the state or any subdivision, including, but not Page 27 limited to, any authorizing subdivision.

(b)(1) An innovation district, in the determination of the board and upon the adoption by the board of a resolution providing for the issuance of financial obligations, may cause a notice respecting the issuance of the financial obligations to be published once a week for two consecutive weeks in each county in which shall be located any project financed or in Page 30 HB349 INTRODUCED any way assisted by the issuance of the financial obligations.

Page 28 The publication in each such county shall be in a newspaper having general circulation therein and shall be in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chair or secretary of the district:

Any action or proceeding in any court to set aside or question the proceedings for the issuance of the financial obligations Page 31 HB349 INTRODUCED referred to in the notice or to contest the validity of any Page 29 such financial obligations, or the validity of any instruments securing the same, must be commenced on or before the date determined in accordance with the preceding sentence and stated in the notice as the date on or before which any such action or proceeding must be commenced.

(a) In furtherance of the public purposes of this chapter, the state and any public entity,entity or public corporation, upon such terms and with or without consideration as it may determine and in compliance with the state constitution,constitution and public notice requirements, may undertake any of the following for the benefit of any district, without regard to whether any public entity may be an authorizing subdivision with respect to the district or may have a project located or undertaken within the jurisdiction thereof:

(1) Donate, grant, loan, or pledge to, or for the benefit of, any district any funds, revenues, or tax proceeds of the public entity;entity or public corporation;

(3) Pay, commit to pay, or guarantee, on a continuing Page 3230 HB349 INTRODUCED basis by contractual agreement, the payment when due of all or any part of the principal of, and premium and interest on, any financial obligation of an innovation district for such period, including the period ending on the stated maturity of the financial obligation, as the public entity or public corporation may determine;

(b) The state and each public entity and public corporation, upon compliance with the public notice requirements, may assume, incur, or issue, by private or public sale in compliance with applicable state law and the state constitution, any financial obligation, as a general, limited, or special obligation thereof, to provide funds for any purpose of this section.

(c) The state and each public entity and public corporation shall cause each contractual agreement or instrument delivered for any purpose in subsection (a) to provide for, or set forth, in the agreement or instrument:

and (ii) the authorization and direction of a specific officer or officers, by title or Page 31 office, of the public entity or public corporation to pay any pecuniary obligation of the public entity or public corporation in lawful currency of the United States and in liquidated amounts when due on a date or dates certain, which amounts and dates of payment may Page 33 HB349 INTRODUCED be set forth in the agreement or instrument, or schedule thereto, or incorporated therein by specific reference.

(e) Any court in the state having competent jurisdiction shall issue mandamus for the payment of any pecuniary obligation of the state or a public entity or public corporation in a contractual agreement or instrument delivered pursuant to this section upon proper proof of nonpayment thereof, or failure of compliance with the provisions of law with respect thereto, being furnished by, or on behalf of, the district or any beneficiary of the pecuniary obligation of the state or the public entity or public corporation under the contractual agreement or instrument.

(a) An innovation district shall be required to produce audited financial statements from a certified public accountant, or a firm thereof, regularly engaged in the auditing of financial records, or an auditor who is regularly employed by the Department of Examiners of Public Accounts, for each fiscal year and, when available, deliver the audited Page 32 financial statements to each public entity that financially supports the district, if the district:

(i) receives any specialeligible publictaxes; revenues;

(b) For purposes of this section, the person conducting Page 34 HB349 INTRODUCED an audit pursuant to subsection (a) must be a person who:

Each(a)(1) district,Except andas theprovided projectsin thereof,subdivision (2), each district and its property shall be exempt from all fees, charges, and taxes levied by any judge of probate or taxing authority of the state, including, but not limited to, ad valorem taxes, privilege, license, and excise taxes, occupational taxes, business license taxes, and recording fees and taxes.

The(2) propertyNotwithstanding andsubdivision income(1), property of anya district,district allshall financialbe obligationssubject ofto anall innovationof district, the incomefees and interesttaxes fromdescribed thein financialsubdivision obligations,(1) conveyancesif bythe project or toproperty anis innovationor district,will andbe leases,treated mortgages,as andowned deedsfor offederal trustincome ortax trustpurposes indentures by ora tocorporate anperson innovationor district,a shallnatural beperson. exempt from all taxation in the state.

(b) The income of any district, all financial obligations of a district, the income and interest from the financial obligations, conveyances by or to an innovation Page 33 district, and leases, mortgages, and deeds of trust or trust indentures by or to an innovation district, shall be exempt from all taxation in the state.

Page 35 HB349 INTRODUCED Each district and all contractual agreements made by the district shall be exempt from state laws requiring competitive bids for any contract to be entered into by any public entity, including, but not limited to, Chapter 2 of Title 39 and Article 3 of Chapter 16 of Title 41, of the Code of Alabama 1975.

(a) Except as provided in this act,act and specifically in subsection (b), an innovation district shall not be required to obtain the approval or consent of, or make any filing with, or provide notice to the state or any 991 state agency, department, or other instrumentality of the state, with respect to the incorporation or the amendment of the certificate of incorporation of the district, or the exercise of any authority or power provided in this act or permitted under state law.

Page 34 (b) An innovation district shall be subject to local codes and ordinances.

An innovation district shall be a nonprofit corporation, and no part of an innovation district's net Page 36 HB349 INTRODUCED earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, financial obligations, and other obligations of an innovation district, then any portion, as determined by the board, of the net earnings of an innovation district thereafter accruing, in the discretion of the board, may be paid to one or more of the district's authorizing subdivisions.

At any time when an innovation district has no financial obligations or other executory agreements Page 35 outstanding, its board may adopt a resolution, which shall be duly entered upon its minutes, declaring that the district shall be dissolved.

The existence of an innovation district incorporated Page 37 HB349 INTRODUCED under this act shall not prevent the subsequent incorporation under this act of another district pursuant to authority granted by the same authorizing subdivision.

CumulativeReporting. Effect of Chapter.

TheNot provisionslater than January 1, annually, each innovation district shall submit a report detailing all activities, including the status of thisany chapterqualified areenterprise cumulativewithin the district and shallthe notaudited befinancial deemedstatements submitted pursuant to repealSection existing12, laws;to the Governor, the Lieutenant Governor, the Speaker of the House of Representatives, the President of the Senate, and each authorizing subdivision.

provided, however, the provisions of this act shall supersede any other laws to the extent the laws are clearly inconsistent with the provisions of this act.

ThisCumulative actEffect shallof becomeChapter. effective on June 1, 2024.

The provisions of this act are cumulative and shall not Page 3836 be deemed to repeal existing laws;

provided, however, this act shall supersede any other laws to the extent the laws are clearly inconsistent with the provisions of this act.

Section 23.

This act shall become effective upon the ratification of the constitutional amendment proposed in House Bill 368 or Senate Bill 243 of the 2024 Regular Session.

Page 37