SJR117 Alabama 2022 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2022

Title

Joint Legislative Study Commission on Renewing Economic Development Incentives, created

Summary

SJR117 creates a temporary joint legislative study commission to reevaluate Alabama's economic development incentives and recommend renewal, amendment, repeal, or consolidation before they expire in 2023.

What This Bill Does

It establishes the Joint Legislative Study Commission on Renewing Economic Development Incentives with a defined membership and leadership. The commission will study existing incentives in specified Alabama Code chapters, plus others that may be inactive or ineffective, and assess their impact on the Education Trust Fund. It must deliver written recommendations to the Governor and Legislature by January 31, 2023 on whether to reauthorize those incentives, and may propose changes or consolidation; the commission will dissolve by February 1, 2023 after delivering its recommendations and may collaborate with state agencies, counties, municipalities, incentivized businesses, and private sector groups in its analysis.

Who It Affects

• Alabama state government and its agencies (e.g., Department of Commerce, Department of Revenue, Finance and Taxation committees) that administer or oversee economic development incentives.
• Incentivized and potential future Alabama businesses that may receive tax credits, deductions, exemptions, abatements, or rebates.
• Alabama taxpayers and the Education Trust Fund, through the bill's requirement to analyze the cost/benefit and budget impact of incentives.
• Private sector organizations and minority/civic groups represented on the commission, whose concerns will be considered in the study.

Key Provisions

• Creates the Joint Legislative Study Commission on Renewing Economic Development Incentives with specified membership, including the Lt. Governor as chair and leaders from key fiscal and education committees.
• Requires diverse and inclusive appointment processes and authorizes replacements and quorum/voting by appointees or their designees.
• Defines 'economic development incentives' as various tax credits, deductions, exemptions, abatements, preferential rates, or rebates that forgo state revenue or provide benefits to spur economic activity.
• Tasked to study incentives in Article 16 of Chapter 18, Title 40 and Article 19A of Chapter 18, as well as other incentives that are inactive or ineffective, plus conduct 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, may include legislation to align with current priorities; also requires recommendations on repealing, amending, or consolidating incentives studied, with potential alignment suggestions.
• Mandates collaboration with the Department of Commerce, Department of Revenue, other government entities, counties, municipalities, and incentivized businesses, and consideration of private sector concerns and workforce development perspectives.
• Allows the commission to request information from state and local agencies and other entities as needed and sets deadlines for initial meetings and officer elections (first meeting by May 6, 2022).
• Provides for reimbursement of travel for nonlegislative members and legislative compensation for members for meetings, per constitutional allowances.

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