(b) Before making a site development grant, the authority shall make both of the following findings:

(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.

(2) 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.

(c) The authority may impose additional requirements with regard to the sites, including, but not limited to, environmental and geotechnical matters, as well as utility and transportation related issues.

(d) Each applicant must enter into a project agreement with the authority to establish the terms and conditions of 95 the site development grant.

§41-10-47.05 (a) For the benefit of the state and the residents of the state, there is created an irrevocable fund named the Alabama Site Development Fund, which shall be funded from all of the following sources:

(1) Proceeds of any gifts, grants, or contributions.

(2) Revenue sources as directed by, and at the discretion of, the Legislature.

(3) Appropriations as directed by, and at the discretion of, the Legislature.

(4) Investment income.

(5) Federal grants relating to site-based development initiatives which the authority finds will have the effect of advancing economic development in Alabama.

(6) Any other lawful sources.

(b) The funds shall be administered in accordance with this article.

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by the fund shall be Page 4 HB257 Engrossed deposited in the fund upon receipt and may be invested by the board and withdrawn and expended by the authority for the purposes of this article in a manner consistent with the powers granted to the authority by this article.

(c) The fund shall be under the management and control of the board, and all powers necessary or appropriate for the management and control of the fund shall be vested solely in the board.

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 it deems reasonable or necessary to implement such grants.

§41-10-47.06 (a) The funds shall be held in perpetual trust and shall not be appropriated by the Legislature or expended or disbursed for any purpose other than as provided in this article.

The board may expend the fund's earnings and principal in furtherance of its purposes.

(b)(1) To the extent practicable, the board shall keep all monies at any time held in the fund invested in eligible investments, in its sole judgment, as shall produce the greatest trust income over the term of the investments while preserving capital.

(2) The board may select the eligible investments in which monies held in the fund shall at any time be invested.

(3) The board may invest the fund capital in any eligible investments producing trust income in accordance with the schedule as the board, in its sole judgment, determines to be in the best interests of the state.

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

A board member shall not be responsible for the adequacy of the fund to satisfy and discharge any obligation of the corporation.

§41-10-47.07 The Legislature recognizes that economic conditions may 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).

The board, by majority vote, may cause a grant to be made so long as the board determines that the site is suitable for development for one or more activities listed in Section 40-18-372(1) and is in the best interest of the public.

§41-10-47.08 The authority may contract with and rely on one or more statewide economic development organizations in implementing this article.

The authority may enter into such contracts, leases, agreements, and investments and may otherwise expend monies without compliance with Article 5 of Chapter 4 of Title 41 or Chapter 2 of Title 39.

Solely as a result of entering into contracts, leases, agreements, investments, or otherwise, no local economic development organization, nor the officers, employees, agents, or directors of any of the foregoing, shall become subject to Chapter 25 or Chapter 25A of Title 36;

Article 5 of Chapter 4 of Title 41;

Chapter 2 of Title 39;

or Section 36-12-40.

§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.

Section 2.

Section 41-10-27.2, Code of Alabama 1975, is amended to read as follows:

"§41-10-27.2 Beginning in the fiscal year ending September 30, 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.

The bond commission established by Amendment 666 of the Constitution of Alabama of 1901, now appearing as Section 210.04, of the Official Recompilation of the Constitution of Alabama of 19012022, as amended, shall consult with the State Industrial Development Authority and recommend to the Legislature the actual amount of the annual appropriation." Section 3.

This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Page 7 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