On Thursday, both the Alabama House of Representatives and the Senate voted in favor of portions of Alabama Governor Kay Ivey’s “Game Plan” legislative package.
“The Game Plan will position Alabama for a new era of vigorous growth, allowing us to continue our record-breaking economic development success while providing new levels of support for the state’s innovation economy,” said Gov. Ivey. “This package will benefit all Alabamians, those living in both urban centers and rural areas, and ensure our citizens are ready for high-paying careers.”
“The Game Plan — our plan for Alabama’s continued economic success — had great momentum today in the Alabama Legislature,” Ivey wrote on Twitter. “I commend both the Senate and House for their work on this package of bills and look forward to their final passage. Let’s keep Alabama winning!”
The House passed four-game plan bills on Thursday, while the Senate passed two more. The legislation from each now has to be considered by the second House.
House Bill 257 (HB257) is sponsored by State Rep. Danny Garrett. HB257 creates the Alabama Site Development Fund. This legislation authorizes the State Industrial Development Authority to make site assessment grants and site development grants to private companies. The bill also provides for the criteria that must be met for grant approval, including changes to criteria based on economic conditions. It limits the funding that may be received by any site under the grant program. HB257 passed the House 105 to 0. HB257 has been referred to the Senate Fiscal Responsibility and Economic Development Committee, which is chaired by Sen. Garlan Gudger.
Senate Bill 165 is sponsored by State Sen. Arthur Orr. It also addresses the creation of the Alabama Site Development Fund. SB165 appears to be the Senate version of HB257. SB165 passed the Senate by a vote of 30 to 0. The legislation has been referred to the House Ways and Means Education Committee – which Garrett chairs.
House Bill 241 (HB241) is also sponsored by Garrett. HB241 extends the Alabama Jobs Act sunset date to July 31, 2028. It also increases the annualized cap on outstanding Alabama Jobs Act incentives by $25 million yearly for five up to $475 million. The bill increases the investment tax credit transfer time to provide that the first five years of the investment credit may be transferred by the incentivized company and applied by another person or company under the Alabama Jobs Act. It also extends the Growing Alabama Act sunset date to July 31, 2028, while increasing the annual cap on funding approved pursuant to the Growing Alabama Act incrementally to $35 million. The legislation transfers certain programs from the Growing Alabama Act to Innovate Alabama and creates the Sweet Home Alabama Tourism Investment Act. The Alabama Tourism Department is tasked with developing standards for the review and approval of certified tourism destination projects. HB247 passed the House 105 to 0. It has been referred to the Senate Finance and Taxation Education Committee, which Sen. Orr chairs.
Senate Bill 151 (SB151) is sponsored by Sen. Garlan Gudger. SB151 would amend existing law on economic development to authorize the Joint Legislative Advisory Committee on Economic Development to conduct an economic incentive evaluation. It would also require the Department of Commerce to publish certain information regarding economic development incentives awarded under the Alabama Jobs Act. SB151 Passed the Senate 30 to 0. The legislation has been referred to the House Ways and Means Education Committee.
House Bill 247 is sponsored by House Minority Leader Anthony Daniels. Under existing law, the Alabama Innovation Corporation is a public corporation created to support, financially and otherwise, growth in technology, innovation, and entrepreneurship sectors in the state. HB247 would change that to Innovate Alabama. Under existing law, the Alabama Innovation Corporation is also authorized to make Small Business Innovation Research and Small Business Technology Transfer Research matching grants to certain entities. To receive a grant, the entity must make its primary place of business in Alabama. The location of residency of one top executive must be in Alabama, and 75 percent of its employees must reside in Alabama for five years. This bill would add a one-year time frame for making Alabama the principal place of business, requiring the majority of top executives to reside in Alabama and a majority of employees to live in Alabama as a condition for receiving a grant. This bill would create the Innovating Alabama tax credit program to allow certain economic development organizations that create, operate, or support certain programs relating to technology accelerators and underrepresented companies to claim specified tax credits. This bill would also exempt working groups, task forces, and subcommittees of the Alabama Innovation Corporation from the Alabama Open Meetings Act. HB247 passed the Alabama House of Representatives 105 to 0. The bill has been referred to the Senate Finance and Taxation Education Committee.
House Bill 240 is sponsored by State Rep. Cynthia Almond. HB240 requires the Alabama Department of Commerce to publish on its website certain information about economic development incentives awarded under the Alabama Jobs Act. It provides transparency to the awarding of incentives. HB240 passed the Alabama House of Representatives 105 to 0. It has been referred to the Senate Fiscal Responsibility and Economic Development Committee.
Following passage of the six bills in their respective Houses of origin, Speaker of the House Nathaniel Ledbetter posted on Twitter.
“The state’s economy is stronger than at any other time in our history, and we have an abundance of long-lasting, good-paying jobs,” Ledbetter said. “But while our state has already achieved remarkable milestones, Alabama is on the cusp of transforming its economy for generations.”
“Growing Alabama’s economy through increased incentives and industry expansion is imperative to keeping our state the best place to live and work for its citizens,” Ledbetter added. “The Legislature is working for you, and we look forward to building on our progress.”
As of Thursday, 542 bills have been filed in the 2023 Alabama Regular Legislative Session.
Tuesday will be day 11 of the regular session. The Alabama Constitution limits the Legislature to no more than thirty legislative days during a regular session.
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