HB458 Alabama 2022 Session

Summary

Primary Sponsor

Jeff SorrellsRepresentative

Republican

Session

Regular Session 2022

Title

Economic development, counties and municipalities, requirements revised for incurring indebtedness and for selling or granting public property for private economic development and for certain public notices, Amendment 772, Constitution of Alabama of 1901, am'd., const. amend.

Summary

A constitutional amendment change to Amendment 772 would broaden local governments' economic development powers, require public notice for related actions, and ratify prior related actions.

What This Bill Does

It would let counties and municipalities purchase, lease, or acquire property and improve it for industrial sites or parks; allow them to lease, sell, or convey land to private or public entities for development; permit lending or grants to promote economic development; and enable debt up to 50% of the property's assessed value to fund these projects. Bonds and other obligations could be secured by the entity or by full faith and credit, but would not count as general debt unless general obligation bonds are used. Actions taken under Amendment 772 before ratification would be ratified and remain valid, and new actions would require public meeting approval and a 7-day newspaper notice describing the public purpose and beneficiaries.

Who It Affects

• Counties and municipalities’ governing bodies, who gain authority to acquire, develop, finance, and manage economic development projects.
• Private and public developers, businesses, industrial boards and authorities that could receive property, loans, or public funds to support development.

Key Provisions

• Authorize counties/municipalities to purchase, lease, or acquire real property and develop industrial sites or parks, including necessary infrastructure.
• Authorize the lease, sale, grant, or conveyance of property to private or public entities for industrial development.
• Permit lending credit or grants of public funds to promote economic and industrial development.
• Allow indebtedness and issuance of bonds/notes up to 50% of the assessed value to fund property acquisition or development.
• Require public approval at a meeting and at least seven days’ newspaper notice describing the action, public benefits, and beneficiaries before proceeding.
• Bonds/obligations issued under this amendment are not general indebtedness unless specifically issued as general obligation bonds; existing authorities are grandfathered.
• Sale or lease at fair market value is not considered lending or a grant of public funds.
• Not authorize counties to own/operate a cable television system.
• Actions taken under Amendment 772 before ratification are ratified and remain valid; amendment applies prospectively.
• An election will be held to ratify the amendment with ballot language describing its purpose.

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

Subjects

Constitutional Amendments