SB165 Alabama 2023 Session

Summary

Primary Sponsor

Arthur OrrSenator

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

SB165 creates a Site Evaluation Economic Development Strategy to fund site assessment and site development grants for large sites, managed by the State Industrial Development Authority through the new Alabama Site Development Fund.

What This Bill Does

It authorizes the State Industrial Development Authority to award site assessment grants and site development grants to local economic development organizations for acquiring and preparing large sites. Grants require local matching funds that vary by county population, and sites must meet minimum acreage requirements. The bill creates the Alabama Site Development Fund to hold and govern the grant money, sets up investment rules, and directs annual reporting to the Legislature, along with exemptions for some state laws for the involved authorities.

Who It Affects

• Local economic development organizations may apply for grants and must provide matching funds, coordinating with companies to develop sites.
• Companies or landowners with eligible sites (and statewide economic development groups) could receive grants to assess and develop sites, subject to size, matching, and project-agreement requirements.

Key Provisions

• Creates the Site Evaluation Economic Development Strategy, including two grant programs (site assessment grants and site development grants) administered by the State Industrial Development Authority and funded through the Alabama Site Development Fund.
• Site assessment grants require the site to be at least 50 acres and must be matched by funds from the applicant, with matching percentages based on county population: <12,000 population ($0.25 per grant dollar), 12,000–<50,000 ($0.50), 50,000–<150,000 ($0.75), and 150,000+ ($1). Additional requirements may apply (environmental, geotechnical, utilities, transportation) and a project agreement is required.
• Site development grants require the site to include at least 75 contiguous acres (with possible noncontiguous adjacent parcels) and use the same matching structure as site assessment grants; additional site-specific requirements and a project agreement apply.
• The Alabama Site Development Fund is an irrevocable fund funded by gifts, appropriations, investment income, federal grants, and other lawful sources, managed by the Board, and used only for the purposes of this article.
• The Fund shall be held in trust, invested to generate income while preserving capital, and expenditures from the fund are controlled by the Board for the purposes of site grants and related activities.
• The Legislature shall annually appropriate up to $2,000,000 from the Capital Improvement Trust Fund to the State Industrial Development Authority for site grants, with the Bond Commission advising on the actual amount.
• The Authority may contract with statewide economic development organizations and may undertake activities without certain state-law constraints; these organizations and Authority staff are exempt from specific listed statutes.
• The Authority must report annually to the Legislature on the number, amount, and location of site grants distributed.
• The act becomes effective immediately upon Governor’s signature.

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