SB 165 — 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.

SB165 ENGROSSEDENROLLED WV4V9E-2WV4V9E-3 By Senators Orr, Weaver, Williams, Chesteen, Price, Reed, Allen, Butler, Jones, Gudger, Waggoner, Kelley, Chambliss, Hovey, Sessions, Bell, Shelnutt, Scofield, Melson, Singleton, Livingston, Hatcher, Stewart, Figures, Smitherman, Coleman-Madison RFD:

04-Apr-23 Page 0 SB165 EngrossedEnrolled 2Enrolled, 4An 6Act, A3 BILL5 TO BE ENTITLED AN ACT Relating to economic development;

A new Article 2D, commencing with Section 41-10-47.01, is added to Chapter 10 of Title 41, Code of Page 1 SB165 Engrossed Alabama 1975, to read as follows:

Page 1 SB165 Enrolled §41-10-47.02 As used in this article, the following terms have the following meanings:

Any parcel of real property intended for Page 2 SB165 Engrossed development by a company.

An organization that is determined by the authority to be an Alabama entity not operating for profit which is charged with improving the state or a region of the state and has a record Page 2 SB165 Enrolled of supporting or otherwise participating in economic development in the state.

If the site is located in a targeted county with a population of 12,000 or greater but less than 50,000, for Page 3 SB165 Engrossed every dollar of grant funds, the applicant will contribute fifty cents ($0.50) of additional funds.

If the site is located in a county with a population of 50,000 or greater but less than 150,000, for every dollar of grant funds, the applicant will contribute seventy-five Page 3 SB165 Enrolled cents ($0.75) of additional funds.

95 (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 related and transportation related issues.

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

(2) The application includes proof that the grant funds that are approved by the authority will be matched by funds on Page 4 SB165 Engrossed hand with, or contingently committed to, the applicant such that one of the following is true:

If the site is located in a targeted county with a population of less than 12,000, for every dollar of grant funds, the applicant will contribute twenty-five cents ($0.25) Page 4 SB165 Enrolled of additional funds.

§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 Page 5 SB165 Engrossed Alabama Site Development Fund, which shall be funded from all of the following sources:

Page 5 SB165 Enrolled (3) Appropriations as directed by, and at the discretion of, the Legislature.

§41-10-47.06 (a) The funds shall be held in perpetual trust and shall not be appropriated by the Legislature or expended or Page 6 SB165 Engrossed disbursed for any purpose other than as provided in this article.

(b)(1) To the extent practicable, the board shall keep all monies at any time held in the fund invested in eligible Page 6 SB165 Enrolled investments, in its sole judgment, as shall produce the greatest trust income over the term of the investments while preserving capital.

§41-10-47.08 Page 7 SB165 Engrossed 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 Page 7 SB165 Enrolled 41 or Chapter 2 of Title 39.

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 Page 8 SB165 Engrossed 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 Page 8 SB165 Enrolled otherwise becoming law.

Page 9 SB165 EngrossedEnrolled Senate________________________________________________ ReadPresident forand thePresiding firstOfficer timeof andthe referredSenate ................04-Apr-23________________________________________________ toSpeaker of the SenateHouse committeeof onRepresentatives FiscalSB165 ResponsibilitySenate and13-Apr-23 EconomicI Developmenthereby Readcertify forthat the secondwithin timeAct andoriginated placedin ................11-Apr-23and onpassed the calendar:Senate, as amended.

amendment Read for the third time and passed ................13-Apr-23 as amended Yeas 30 Nays 0 Abstains 0 Patrick Harris, Secretary.

PageHouse 10of Representatives Passed:

20-Apr-23 By:

Senator Orr Page 10