HB257 Alabama 2023 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2023

Title

Relating to economic development; to add Article 2D, commencing with Section 41-10-47.01, to Chapter 10 of Title 41, Code of Alabama 1975; to authorize the State Industrial Development Authority to make site assessment grants and site development grants to certain companies; to provide for the criteria that must be met for grant approval; to provide for changes to criteria based on economic conditions; to limit the funding that may be received by any site under the grant program; to create the Alabama Site Development Fund and provide for its management; to amend Section 41-10-27.2, Code of Alabama 1975, providing for an annual appropriation to the State Industrial Development Authority, to authorize the appropriation to be expended on the grant program created herein; and to exempt the State Industrial Development Authority and certain economic development organizations from certain state laws.

Summary

HB257 creates a Site Evaluation Economic Development Strategy with grants for site assessment and site development, funded by a new Alabama Site Development Fund and administered by the State Industrial Development Authority to help develop large sites for economic growth.

What This Bill Does

It establishes two grant programs—site assessment grants to evaluate potential sites and site development grants to prepare sites for development—administered by the State Industrial Development Authority. Local economic development organizations must apply and provide matching funds; sites have size and other criteria, with project agreements required. It creates and funds the Alabama Site Development Fund to hold and disburse grant money, outlines funding sources and investment powers, and allows for exemptions from certain laws and annual reporting on grant activity. The bill also specifies a set annual appropriation (up to $2 million) to pay these grants and allows adjustments based on economic conditions.

Who It Affects

• Local economic development organizations in Alabama (e.g., chambers of commerce, industrial development boards) would apply for site assessment and site development grants and must provide matching funds.
• The State Industrial Development Authority and related statewide economic development organizations would administer the grant program, manage the Alabama Site Development Fund, determine eligibility, may contract with other groups, and report annually on grant activity.

Key Provisions

• Creates the Site Evaluation Economic Development Strategy, introducing two grant programs: site assessment grants and site development grants, to be administered by the State Industrial Development Authority.
• Sets eligibility criteria: site assessment grants require the site to be owned by a local economic development organization or have an option to purchase, and the site must be at least 50 acres; site development grants require a site comprising at least 200 (and possibly 75) contiguous acres, with mandatory matching funds and potential additional site-related requirements; both require a project agreement.
• Establishes the Alabama Site Development Fund as an irrevocable perpetual trust managed by the board, funded from gifts, appropriations, investment income, and federal grants, with revenues deposited to the fund and expended only for purposes of this article.
• authorizes an annual appropriation to the State Industrial Development Authority (up to $2,000,000) from the Capital Improvement Trust Fund to pay site grants, with the bond commission advising on the actual amount.
• Allows exemptions from certain state laws for the SID Authority and related organizations, enables contracting with statewide economic development organizations, and provides for annual reporting to the Legislature on grants issued.

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