HB540 Alabama 2021 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular Session 2021

Title

Alabama Innovation Corporation; incorporation; legislative findings, implementation of Small Business Innovation Research or Small Business Technology grants, board of directors, powers, contracts, investments, Sec. 41-10-800 to 41-10-810, inclusive, added

Summary

HB540 creates the Alabama Innovation Corporation as a public, independent state entity to drive innovation, entrepreneurship, and economic growth through programs, partnerships, and a dedicated investment fund.

What This Bill Does

It establishes the Alabama Innovation Corporation as a public corporation separate from the state and sets up a governing board with broad powers to run programs, invest, contract, and manage funds to support innovation. It creates the Alabama Innovation Fund to finance programs and investments and authorizes the corporation to partner with public agencies and private entities, including ADECA, to support SBIR/SBTR grants, accelerators, incubators, and workforce development, especially in rural and low-income areas. It provides definitions and rules for eligible investments and opportunity funds, requires starting in 2023 a Legislative report on progress, and outlines dissolution procedures if the corporation ends, with assets returning to the state.

Who It Affects

• Aspiring Alabamians and residents in low-income or rural areas—potential beneficiaries of investment programs, job creation, and wealth-building efforts aimed at these communities.
• Alabama startups, small businesses, researchers, and nonprofit economic development entities—may gain access to accelerators, incubators, and SBIR/SBTR funding, plus statewide programs to support growth.
• Public and private partners (ADECA, universities, private companies) that will implement programs and manage funds and investments through the new structure.

Key Provisions

• Article 20 adds the Alabama Innovation Corporation as a separate public corporation and outlines its purpose to promote technology, entrepreneurship, and innovation in Alabama.
• A five-ex officio and six at-large director board is created, with diversity requirements and a chair (initially the current Alabama Innovation Commission leader) who presides until a new chair is appointed; the board has broad powers and requires a quorum for decisions.
• The board can execute contracts, leases, investments, and other actions without certain state procurement rules and may hire staff and contractors as needed to fulfill its mission.
• The Alabama Innovation Fund is created as an irrevocable, perpetual trust owned by the corporation, funded by gifts, appropriations, investment income, and other lawful sources; the board manages the fund and must audit it annually and publish quarterly financial reports.
• The board’s powers include promoting branding and statewide innovation, supporting accelerators, incubators, R&D centers, workforce development, and initiatives in rural and low-income areas; it may partner with public and private entities to implement programs.
• ADECA can oversee 'approved opportunity funds' and coordinate with the corporation, including requirements to invest primarily in Alabama-based opportunity zone properties and to maintain reporting, compliance, and governance standards; funds may be sourced from several state-related funds listed in the bill.
• Investments of the fund and related eligible investments are defined, emphasizing prudent management, potential growth of the state’s innovation economy, and protections for board members from personal liability.
• The bill requires the Alabama Innovation Corporation to report to the Legislature beginning in 2023 on its progress toward its goals and to dissolve under specified conditions with the state receiving title to property.
• The bill amends existing law (41-10-46.01) to include provisions about approved opportunity funds and how qualified funds may invest in such funds, with criteria and geographic focus in Alabama.

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

Subjects

Innovation Corporation