SB298 Alabama 2021 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2021

Title

Economic and Community Affairs Department, Alabama Innovation Act, awarding of grants, further provided, Secs. 41-23-252, 41-23-253, 41-23-255 am'd.

Summary

SB298 updates the Alabama Innovation Act to guide ADECA in awarding research grants through a competitive scoring system, clarifies grant amounts and costs (including intern compensation), and creates a dedicated R&D enhancement fund.

What This Bill Does

It defines who qualifies as Alabama research entities and what activities count as approved research, including categories based on NAICS codes and biofuel production. It creates the Alabama Research and Development Enhancement Fund and lets ADECA award grants on a 1:1 non-state match basis, with grants typically ranging from $10,000 to $50,000 per year for projects that involve interns or faculty. It sets a complex cap on individual grants (the lesser of 20% of total annual grant funds or 50% of project costs, plus indirect costs limited to 10%), plus a possible alternative cap based on prior year research expenses. It requires a competitive scoring system with criteria like new research, industry commitment, and benefits to Alabama, sets a 150-day application window with awards announced within 90 days, and allows partial awards and pro rata distribution if funds run short.

Who It Affects

• Alabama research entities (such as universities, university-affiliated foundations, public colleges, and publicly owned hospitals) that partner with private sector applicants; they may apply for grants, conduct qualified research in Alabama, and receive matching funds.
• Private sector partners and industry sponsors that collaborate with Alabama research entities; they must provide matching funds and may benefit from research outcomes and the resulting products and services.

Key Provisions

• Defines ADECA, eligible Alabama research entities (universities, affiliated foundations, public colleges, publicly owned hospitals, or other qualifying entities with specific criteria), and approved activities (broad list including certain NAICS sectors and biofuel production).
• Creates the Alabama Research and Development Enhancement Fund in the State Treasury; funds are subject to legislative appropriations, may be carried over year to year, and ADECA cannot spend for purposes other than those listed; funds are invested for the fund's benefit.
• Establishes grant terms: the program provides up to $1 of grant funding for each $1 of non-state matching funds, for one- or two-year projects with a minimum of $10,000 and a maximum of $50,000 in grant funds per year; matching funds can be cash, grants, or contracts.
• Indirect and administrative costs cannot exceed 10% of the grant amount; ADECA may adopt rules to require an intern partnership program to involve students and/or faculty on projects.
• Imposes grant caps: an individual grant may not exceed the lesser of (a) 20% of the total grant funds awarded in a single fiscal year or (b) 50% of the budgeted project costs, with a separate framework based on prior-year and consortium research expenses for determining grant amounts.
• Grants are awarded via a competitive scoring system developed by ADECA, considering factors such as new research, industry commitment, benefits to Alabama businesses and residents, impact on small- and medium-sized businesses, growth of R&D in Alabama, and other appropriate criteria.
• Application process and funding management: first annual start date is September 4, 2019 (and March 1 thereafter), with a 150-day grant window; if funds are insufficient, grants may be awarded pro rata or in partial amounts; unspent funds can be carried over or reallocated if additional funds become available; funds are allocated to various taxpayers in accordance with section-specific procedures.
• Program effectiveness: initiates an ability for ADECA to continue awarding grants if funds become available after initial approvals, and provides for timely notification to benefiting entities; the act takes effect immediately upon governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

State Government