HJR270 Alabama 2022 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2022

Title

Joint Legislative Study Commission on Renewing Economic Development Incentives, created

Summary

Creates a Joint Legislative Study Commission to review and recommend renewal, repeal, or modernization of Alabama economic development incentives.

What This Bill Does

Establishes a 15-member commission led by the Lieutenant Governor to study the economic impact of major state incentives and other incentives that may be unused or ineffective; assesses potential effects on the Education Trust Fund. It will issue written recommendations by January 31, 2023 on whether to reauthorize incentives and, if appropriate, propose changes; it can also recommend repealing, amending, or consolidating incentives. The commission will be dissolved no later than February 1, 2023 after delivering its recommendations.

Who It Affects

• State government agencies involved in the study (Lieutenant Governor, Department of Commerce, Department of Revenue, Finance Director, and chairs of key legislative committees) and their processes.
• Businesses that currently receive incentives or are subject to incentives, plus private Alabama businesses consulted during the study.
• Taxpayers and the Education Trust Fund, since the study analyzes revenue and budget impact of incentives.
• Industry and advocacy groups represented by appointed members (Business Council of Alabama, Manufacture Alabama, NFIB Alabama, Economic Development Association of Alabama, Alabama Education Association) whose input will be considered.
• Local governments and the broader public through data sharing and collaboration.

Key Provisions

• Establishes the Joint Legislative Study Commission on Renewing Economic Development Incentives with 15 named members, including the Lt. Governor as chair, key state officials, legislative leaders, minority caucus members, and appointees from business and education organizations.
• Appointments must be made within 30 days and commissions must reflect the state's diversity in race, gender, geography, urban/rural status, and economy.
• Defines 'economic development incentives' to include tax credits, deductions, exemptions, abatements, preferential rates, or rebates offered to encourage economic activity.
• Directs study of incentives in Article 16 and Article 19A of Chapter 18, Title 40, plus other incentives that are unused or ineffective, with a cost-benefit analysis for the Education Trust Fund.
• Requires written recommendations by January 31, 2023 on whether to reauthorize studied incentives and, if reauthorizing, potential legislation to align incentives with current priorities; also requires recommendations on repealing, amending, or consolidating incentives, with possible alignment proposals.
• Upon submission of recommendations, the commission stands dissolved no later than February 1, 2023.
• Authorizes collaboration with the Department of Commerce, Department of Revenue, other state entities, counties, municipalities, and incentivized businesses; may request data and information as needed.
• First meeting deadline set for May 6, 2022; commission to elect officers, set meeting schedules; nonlegislative members may be reimbursed for travel; legislative members receive compensation and per diem.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Resolutions, Legislative