SB217 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

J.T. WaggonerClay ScofieldGerald O. DialTom Whatley

Session

Regular Session 2012

Title

Alabama Economic Development Trust Fund, established, funded by two percent administrative fee from bonds issued by the state, state agencies, or authorities for economic development purposes

Summary

SB217 would require a 2% administrative fee on every bond issued by the state or its agencies and would create the Alabama Economic Development Trust Fund to receive and use those proceeds for economic development.

What This Bill Does

The bill requires a 2% administrative fee to be included in all bond proceeds issued by the State of Alabama and any state agency or public authority. The money collected from the fee would go into a newly created Alabama Economic Development Trust Fund in the State Treasury and would be used for economic development purposes as defined by the state constitution. The funds in the Trust Fund would be appropriated to and spent by the Alabama Development Office, and the bill is named the David Echols bill with an effective date set for the first day of the third month after passage and approval.

Who It Affects

• State of Alabama, including all state agencies and state-created public authorities that issue bonds, which must include the 2% fee from bond proceeds.
• Alabama Development Office, which would receive appropriations and oversee expenditure of funds from the Alabama Economic Development Trust Fund.
• Alabama Economic Development Trust Fund itself, a new state treasury fund that collects and distributes proceeds for economic development.

Key Provisions

• Each bond issue authorized by the State of Alabama, a state agency, or a state-created public authority must include a 2% administrative fee taken from the bond proceeds.
• Funds from the administrative fee go into the Alabama Economic Development Trust Fund created by the bill.
• The Trust Fund is for economic development activities as defined in Amendment 666 to the Alabama Constitution, and funds deposited are to be appropriated to and expended by the Alabama Development Office.
• The bill is named the David Echols bill.
• The act becomes effective on the first day of the third month following its passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Business and Commerce