HB526 Alabama 2025 Session

Updated Feb 23, 2026

Summary

Primary Sponsor: Chip BrownRepresentative
Republican
Session: 2025 Regular Session
Title: Alabama 21st Century Fund, further distribution of funds, one-time appropriation to the Department of Commerce
Summary: HB526 allows the Alabama 21st Century Fund to be used for additional project costs and debt service on state bonds, and directs a one-time $5 million transfer to the Department of Commerce for international offices and rural development activities.
What This Bill Does
The bill amends the law to let revenues in the Alabama 21st Century Fund be used not only for debt service but also for other project costs and debt service on bonds issued by the State Industrial Development Authority. It preserves a minimum debt-service coverage of 1.3 times and allows any excess funds to pay project costs, debt service on the Alabama Incentives Financing Authority, or the specified one-time transfer to Commerce in 2025. It also authorizes a one-time transfer of $5 million to the Alabama Department of Commerce for establishing international offices and expanding rural development and operating costs, effective for the fiscal year ending September 30, 2025.

Who It Affects
Bondholders and authorities (Alabama 21st Century Authority, State Industrial Development Authority, and Alabama Incentives Financing Authority) — their debt service is funded from the Fund, with a required minimum reserve and potential use of excess funds for other purposes.
Alabama Department of Commerce — receives a onetime $5 million transfer in 2025 to support international offices, rural development efforts, and operating costs.
Rural communities and economic development initiatives — could benefit indirectly from expanded funding for development and international outreach.

Key Provisions
Amends Section 41-10-629 to establish how the Alabama 21st Century Fund is funded and used, including required debt-service reserves and allowed uses of excess funds for project costs and other bonded obligations.
Allows funds not needed for debt service to be used to pay other project costs and debt service on bonds issued by the State Industrial Development Authority; permits debt-service payments for the Alabama Incentives Financing Authority from excess fund amounts.
For the fiscal year ending September 30, 2025, authorizes a one-time transfer of $5,000,000 from the Alabama 21st Century Fund to the Alabama Department of Commerce for international offices, enhancement of rural development strategies, and to cover operational and personnel costs.
The Alabama 21st Century Authority may use fund amounts in any manner consistent with the article as determined by its resolutions; effective date is immediate.

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