HB319

66157-2

By Representatives Starkey and Greer (Constitutional

Amendment)

RFD: Local Legislation

First Read: 10-FEB-04

 

Page 0  HB319

 

ENROLLED, An Act,

 

To propose an amendment to the Constitution of

Alabama of 1901, to authorize a county to perform certain

actions for the purpose of economic and industrial development

in the county.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

 

Section 1. The following amendment to the

Constitution of Alabama of 1901, as amended, is proposed and

shall become valid as a part thereof when approved by a

majority of the qualified electors voting thereon and in

accordance with Sections 284, 285, and 287 of the Constitution

of Alabama of 1901, as amended:

 

PROPOSED AMENDMENT

 

(a) The governing body of any county, and the

governing body of any municipality located therein, for which

a local constitutional amendment has not been adopted

authorizing any of the following, shall have full and

continuing power to do any of the following:

(1) Use public funds to purchase, lease, or

otherwise acquire real property, buildings, plants, factories,

facilities, machinery, and equipment of any kind, or to

utilize the properties heretofore purchased or otherwise

acquired, and improve and develop the properties for use as

sites for industry of any kind or as industrial park projects,

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including, but not limited to, grading and the construction of

roads, drainage, sewers, sewage and waste disposal systems,

parking areas, and utilities to serve the sites or projects.

 

(2) Lease, sell, grant, exchange, or otherwise

convey, on terms approved by the governing body of the county

or the municipality, as applicable, all or any part of any

real property, buildings, plants, factories, facilities,

machinery, and equipment of any kind or industrial park

project to any individual, firm, corporation, or other

business entity, public or private, including any industrial

development board or other public corporation or authority

heretofore or hereafter created by the county or the

municipality, for the purpose of constructing, developing,

equipping, and operating industrial, commercial, research, or

service facilities of any kind.

(3) Lend its credit to or grant public funds and

things of value in aid of or to any individual, firm,

corporation, or other business entity, public or private, for

the purpose of promoting the economic and industrial

development of the county or the municipality.

(4) Become indebted and issue bonds, warrants which

may be payable from funds to be realized in future years,

notes, or other obligations, or evidences of indebtedness to a

principal amount not exceeding 50 percent of the assessed

value of taxable property therein as determined for state

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taxation, in order to secure funds for the purchase,

construction, lease, or acquisition of any of the property

described in subdivision (1) or to be used in furtherance of

any of the other powers or authorities granted in this

amendment. The obligations or evidences of indebtedness may be

issued upon the full faith and credit of the county or any

municipality or may be limited as to the source of their

payment.

 

The recital in any bonds, warrants, notes, or other

obligations or evidences of indebtedness that they were issued

pursuant to this amendment or that they were issued to provide

funds to be used in furtherance of any power or authority

herein authorized shall be conclusive, and no purchaser or

holder thereof need inquire further. The bonds, warrants,

notes, or other obligations or evidences of indebtedness

issued hereunder shall not be considered an indebtedness of

the county or any municipality for the purpose of determining

the borrowing capacity of the county or municipality under

this Constitution.

 

(b) In carrying out the purpose of this amendment,

neither the county nor any municipality located therein shall

be subject to Section 93 or 94 of this Constitution. Each

public corporation heretofore created by the county or by any

municipality located therein, including specifically any

industrial development board incorporated under Article 4 of

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Chapter 54 of Title 11 of the Code of Alabama 1975, and any

industrial development authority incorporated or

reincorporated under Chapter 92A of Title 11 of the Code of

Alabama 1975, and the Shoals Economic Development Authority

enacted under Act No. 95-512, 1995 Regular Session, are

validated and the powers granted to the board or authority

under its respective enabling legislation are validated

notwithstanding any other provision of law or of this

Constitution. The powers granted by this amendment may be

exercised as an alternative to, or cumulative with, and in no

way restrictive of, powers otherwise granted by law to the

county, or to any municipality, or to any agency, board, or

authority created pursuant to the laws of this state.

 

(c) Neither the county nor any municipality located

therein shall lend its credit to or grant any public funds or

thing of value to or in aid of any private entity under the

authority of this amendment unless prior thereto both of the

following are satisfied:

(1) The action proposed to be taken by the county or

municipality is approved at a public meeting of the governing

body of the county or municipality, as the case may be, by a

resolution containing a determination by the governing body

that the expenditure of public funds for the purpose specified

will serve a valid and sufficient public purpose,

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notwithstanding any incidental benefit accruing to any private

entity or entities.

 

(2) At least seven days prior to the public meeting,

a notice is published in the newspaper having the largest

circulation in the county or municipality, as the case may be,

describing in reasonable detail the action proposed to be

taken, a description of the public benefits sought to be

achieved by the action, and identifying each individual, firm,

corporation, or other business entity to whom or for whose

benefit the county or the municipality proposes to lend its

credit or grant public funds or thing of value.

For purposes of the foregoing, any sale, lease, or

other disposition of property for a price equal to the fair

market value thereof shall not constitute the lending of

credit or a grant of public funds or thing of value in aid of

a private entity.

 

Nothing in this amendment shall authorize the county

commission to own or operate a cable television system.

 

(d) This amendment shall have prospective

application only. Any local constitutional amendments

previously adopted and any local law enacted pursuant to such

amendment shall remain in full force and effect.

Section 2. An election upon the proposed amendment

shall be held in accordance with Sections 284 and 285 of the

 

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Constitution of Alabama of 1901, as amended, and the election

laws of this state.

 

Section 3. The appropriate election official shall

assign a ballot number for the proposed constitutional

amendment on the election ballot and shall set forth the

following description of the substance or subject matter of

the proposed constitutional amendment:

 

"Proposing an amendment to the Constitution of

Alabama of 1901, to authorize a county commission of any

county or any municipality therein to perform certain actions

for the purpose of economic and industrial development in the

county.

 

"Proposed by Act ________."

 

This description shall be followed by the following

language:

 

"Yes ( ) No ( )."

 

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 House of Representatives8 I hereby certify that the within Act originated in9 and was passed by the House 17-FEB-04.

Greg Pappas Clerk  

Senate 01-APR-04 Amended and Passed

 Concurred in Sen

 House 06-APR-04 ate Amendment

 Page 7