HB 257 — Relating to economic development; to add Article 2D, commencing with Section 41-10-47.01, to Chapter 10 of Title 41, Code of Alabama 1975; to authorize the State Industrial Development Authority to make site assessment grants and site development grants to certain companies; to provide for the criteria that must be met for grant approval; to provide for changes to criteria based on economic conditions; to limit the funding that may be received by any site under the grant program; to create the Alabama Site Development Fund and provide for its management; to amend Section 41-10-27.2, Code of Alabama 1975, providing for an annual appropriation to the State Industrial Development Authority, to authorize the appropriation to be expended on the grant program created herein; and to exempt the State Industrial Development Authority and certain economic development organizations from certain state laws.

HB257 INTRODUCEDENGROSSED U8URXG-1U8URXG-2 By Representatives Garrett, Ledbetter, Lovvorn, Stadthagen, Daniels, Moore (P), Reynolds RFD:

04-Apr-23 Page 0 U8URXG-1HB257 04/04/2023Engrossed PMG2 (L)tgw4 2023-10306 2A 4BILL SYNOPSIS:TO BE ENTITLED AN ACT Relating to economic development;

Thisto billadd wouldArticle create2D, thecommencing Sitewith EvaluationSection Economic41-10-47.01, Developmentto Strategy,Chapter a10 siteof developmentTitle grant41, fundingCode program that encourages the acquisition of newAlabama sites1975; to meet speed-to-market demand.

Grants would be available for the assessment of sites and for the subsequent development of sites.

This bill would require matching funds from local economic development organizations.

This bill would also provide that the site development grant funding program would be administered by the State Industrial Development Authority.

This bill would create the Alabama Site Development Fund and provide for its management.

This bill would also exempt the State Industrial Development Authority and economic development organizations from specified state laws.

A BILL TO BE ENTITLED AN ACT Relating to economic development;

to add Article 2D, Page 1 HB257 INTRODUCED commencing with Section 41-10-47.01, to Chapter 10 of Title 41, Code of Alabama 1975;

A new Article 2D, commencing with Section 41-10-47.01, is added to Chapter 10 of Title 41, Code of Page 1 HB257 Engrossed Alabama 1975, to read as follows:

Page 2 HB257 INTRODUCED (2) BOARD.

Any parcel of real property intended for Page 2 HB257 Engrossed development by a company.

Page 3 HB257 INTRODUCED (3) The application includes proof that the grant funds that are approved by the authority will be matched by funds on hand with, or contingently committed to, the applicant.

95 §41-10-47.04 (a) Any local economic development organization may apply to the authority for a site development grant.

(1) The site is comprised of at least 200 75 contiguous acres, provided that in addition to the 200 75 contiguous acres, other proximate but noncontiguous property may be a Page 3 HB257 Engrossed part of the site.

(d) Each applicant must enter into a project agreement with the authority to establish the terms and conditions of Page95 4 HB257 INTRODUCED the site development grant.

All revenues received by the fund shall be Page 4 HB257 Engrossed deposited in the fund upon receipt and may be invested by the board and withdrawn and expended by the authority for the purposes of this article in a manner consistent with the powers granted to the authority by this article.

The authority may make whatever representations and covenants it finds reasonable or necessary for federal grant applications and agreements, and it may take whatever actions Page 5 HB257 INTRODUCED it deems reasonable or necessary to implement such grants.

In determining the Page 5 HB257 Engrossed schedule, the board may emphasize future benefits in preference to near-term needs.

A board member may not be held personally liable for any liability, loss, or expense suffered by the fund, unless the liability, loss, or expense arises out of or results from the willful misconduct or intentional wrongdoing of the board member.

§41-10-47.07 The Legislature recognizes that economic conditions may Page 6 HB257 INTRODUCED require the consideration of a grant for a site that does not meet one or more requirements of Section 41-10-47.03(b) or 41-10-47.04(b).

§41-10-47.09 The authority shall report annually to each member of Page 6 HB257 Engrossed the Legislature on the number, amount, and location of site grants distributed by the authority.

"§41-10-27.2 Beginning in the fiscal year ending September 30, Page 7 HB257 INTRODUCED 20062024, the Legislature shall annually appropriate an amount up to $2,000,000 from the Capital Improvement Trust Fund to the State Industrial Development Authority for the purpose of paying industrial development site grants, site assessment grants, or site development grants.

Page 87 HB257 Engrossed House of Representatives Read for the first time and referred ................04-Apr-23 to the House of Representatives committee on Ways and Means Education Read for the second time and placed ................12-Apr-23 on the calendar:

amendments Read for the third time and passed ................13-Apr-23 as amended Yeas 105 Nays 0 Abstains 0 John Treadwell Clerk Page 8