SB296 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Steve LivingstonSenator
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: SB296 would revise Amendment 772 to expand how counties and municipalities can fund and develop economic projects, introduce public notice requirements for such projects, and ratify past actions taken under Amendment 772.
What This Bill Does
It gives counties and municipalities broader authority to acquire and develop real property for industrial sites and related infrastructure, and to lease, sell, or lend property or credits to private entities for economic development. It allows them to incur debt up to 50% of the assessed property value to fund these activities, with certain conditions on repayment and how the debt is classified. It requires public meetings to approve actions and at least seven days’ prior notice in a newspaper describing the action, benefits, and recipients. It also ratifies actions and agreements made under Amendment 772 before ratification, unless those actions are already under pending judicial proceedings, and clarifies how those powers interact with other constitutional debt limits.

Who It Affects
Counties and municipalities: gain authority to purchase, lease, convey, lend to private entities, and incur debt up to 50% of assessed value to support economic development.
Private businesses and developers: may receive public funds, property, or other support for economic development projects under the amended framework.
General public (residents of counties/municipalities): benefit from added transparency through required public notices and public meeting approvals for actions involving public funds or credit.
Public authorities and industrial development boards created by counties or municipalities: their powers and authorities are validated and may be used under the revised amendment.

Key Provisions
Amendment 772 authorizes counties and municipalities to acquire real property and improve it for industrial use, including related infrastructure.
The powers include leasing, selling, granting, or conveying property to private entities for industrial development.
Counties and municipalities may lend credit or grant public funds to promote economic development for the entity's benefit.
They may become indebted and issue bonds or other obligations up to 50% of the assessed value of taxable property to fund these activities, with debt instruments potentially secured by full faith and credit or limited as to payment source.
Bonds and other obligations issued under this amendment are not automatically considered general indebtedness for borrowing capacity, and certain constitutional debt limits may not apply unless general obligation bonds are involved.
Action to lend funds or credit to private entities requires public approval at a meeting and at least seven days’ prior publication describing the action, public benefits, and recipients.
Sales or leases at fair market value are not considered lending of credit or a grant of public funds.
Nothing in the amendment authorizes the county commission to own or operate a cable television system.
Actions taken under Amendment 772 before ratification are ratified and validated, except where pending judicial proceedings exist on the date of ratification.

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