Research and Development Corridors

Ala. Code tit. 11, tit. 2, ch. 66A

in effect

Ala. Code § 11-66A-1 Definitions.

11-66A-1. Definitions. When used in this chapter, the following terms have the following meanings unless the context clearly indicates otherwise: (1) APPLICANT. Each natural person who is an elector of the authorizing subdivision and who has executed and filed a written application with the governing body of any subdivision for the incorporation of a research and development corridor. (2) AUTHORIZING RESOLUTION. A resolution adopted by the governing body of a subdivision to authorize the incorporation of a research and development corridor with powers to operate within the corporate limits of the subdivision. (3) AUTHORIZING SUBDIVISION. Any municipality the governing body of which has adopted an authorizing resolution. (4) BOARD. The board of directors of a research and development corridor. (5) CORPORATE PERSON. Any corporation, partnership, association, or organization that may be incorporated or organized under any chapter of Title 10A or under the laws of any state of the United States. (6) CORRIDOR. A research and development corridor incorporated pursuant to this chapter as a public corporation. (7) DIRECTOR. A natural person who is member of the board of directors of a corridor. (8) ELIGIBLE FUNDS. Any of the following: 1. Any federal funds received by the corridor, by grant or otherwise, for use in support of the corridor or its operations. 2. Any state appropriations, grants, or other public and private sources of funds made available for the public purposes of the corridor. (9) ELIGIBLE TAXES. Any tax, fee, or charge levied or imposed by an authorizing subdivision within the geographical boundaries of a corridor, other than: 1. Taxes levied for public school purposes; or 2. Incremental ad valorem taxes levied within a tax increment district and required by state law to be paid to the tax increment district. (10) FINANCIAL OBLIGATION. Any contractual obligation of any person, whether direct, indirect, or contingent, to pay or provide money to, or for the benefit of, any person or persons, as evidenced by any agreement or instrument, including, but not limited to, any bond, certificate, economic incentive grant agreement, funding or guaranty agreement, installment sale agreement, lease agreement, negotiable instrument, note, or warrant. (11) GOVERNING BODY. The elected group of natural persons which is organized for the purposes of exercising the legislative functions and powers of a public entity. (12) NATURAL PERSON. A natural person who is 21 years of age or older. (13) PERSON. Collectively, corporate persons, natural persons, and public entities. (14) PRINCIPAL OFFICE. The principal office of a research and development corridor, which shall be located within the corporate limits of an authorizing subdivision, as stated in the certificate of incorporation. (15) PROJECT. Any activity undertaken, or property acquired or provided in whole or in part, by a research and development corridor for the establishment, benefit, or support of a qualified enterprise located within the corporate limits of an authorizing subdivision that adopted an authorizing resolution to create the corridor. (16) PROPERTY. Any tangible or intangible property and interests therein, including all property characterized under state law as real, personal, or mixed. (17) PUBLIC CORPORATION. Any public corporation or public body corporate organized under the laws of the state other than a municipal corporation. (18) PUBLIC ENTITY. Any county or municipality, any political subdivision or other instrumentality of the state, and any public corporation. (19) PUBLIC NOTICE REQUIREMENTS. Notice and the holding of a public meeting by a research and development corridor, an authorizing subdivision, or another public entity that proposes to exercise the authority granted under Section 11-66A-10 or 11-66A-12, at which time the corridor, authorizing subdivision, or such other public entity proposes to take an action, as authorized pursuant to this chapter. Notice shall be by publication at least seven days prior to the public meeting in a newspaper of general circulation in the authorizing subdivision or by electronic posting on the primary public website of the authorizing subdivision, which shall describe in reasonable detail the applicable action proposed to be taken by the corridor and the authorizing subdivision, the public benefits expected to be achieved by the applicable action, and the person or persons expected to benefit by the applicable action. (20) QUALIFIED ENTERPRISE. Any activity, business, or trade that is described in one of the following categories: a. Advanced Manufacturing: (i) aerospace/aviation; (ii) automotive; (iii) agriculture products/food production; (iv) metal and advanced metals; (v) chemicals; (vi) forestry products; (vii) alternative energy, battery/fuel cell, and similar facilities. b. Bioscience: (i) medical equipment and supplies; (ii) pharmaceuticals; (iii) biotechnology. c. Foundational Targets: (i) cybersecurity; (ii) data centers; (iii) distribution/logistics; (iv) information technology; (v) research and development. d. Education: Educational research, development, or other areas of higher education. e. Corporate operations for any of the foregoing. (21) SUBDIVISION. Any municipality. EndFragment (Act 2024-308, §1.)

Ala. Code § 11-66A-2 Legislative Findings and Intent. (Amended by Act 2026-550)

11-66A-2. Legislative Findings and Intent. (Amended by Act 2026-550) AMENDED BY ACT 2026-550, EFFECTIVE JUNE 1, 2026. SEE ACT FOR REVISED LANGUAGE. (a) The Legislature finds and determines the public good, welfare, and economy of the state are best served by providing and encouraging the development, growth, improvement, and support of new and creative economic opportunities for existing and future qualified enterprises to establish and continue projects in this state for innovative processes and products. These include specifically those business sectors expressly identified in Accelerate Alabama 2.0, the strategic economic development plan developed by the Department of Commerce. (b) In furtherance of subsection (a) the legislative intent and public purpose of this chapter is: (1) To provide authority to municipalities for the creation of research and development corridors with corporate authority and power to provide, in the discretion of the corridors, its resources; and (2) To provide authority to public entities to provide public resources to, or for the benefit of, corridors. (Act 2024-308, §2.)

Ala. Code § 11-66A-3 Incorporation and Organization of a Research and Development Corridor; Certificate of Incorporation.

11-66A-3. Incorporation and Organization of a Research and Development Corridor; Certificate of Incorporation. (a) Upon compliance with public notice requirements, the governing body of any subdivision, or the governing bodies of any two or more subdivisions, may authorize the incorporation and organization of a research and development corridor, located exclusively within the respective corporate limits of the proposed authoring subdivisions, as a public corporation of the state, with powers set forth in this chapter, for the purpose of establishing or undertaking any project. (b) In order to incorporate and organize a research and development corridor, not less than three natural persons who are qualified electors of a proposed authorizing subdivision shall file a written application with the governing body of each proposed authorizing subdivision. The application shall: (1) State that the applicants propose to incorporate a research and development corridor pursuant to this chapter; (2) State the name of each subdivision with which the application is filed; (3) State that each of the applicants is a qualified elector of a proposed authorizing subdivision; (4) Attach the proposed certificate of incorporation of the proposed corridor and state that the proposed certificate of incorporation is attached to the application and made a part thereof; (5) Attach an affidavit of publication from a newspaper of circulation in each authorizing subdivision of the intent to form a research and development corridor and the geographic boundaries of the corridor; and (6) Request the governing body of each proposed authorizing subdivision to adopt a resolution that the proposed corridor be formed, that the proposed certificate of incorporation of the corridor be approved, and that the applicants are authorized and directed to proceed to form the proposed corridor by the filing for record of a certificate of incorporation in accordance with this chapter. (c) The certificate of incorporation of corridor shall state all of the following: (1) The names of the individuals forming the corridor, and that each of them is a qualified elector of an authorizing subdivision for the corridor. (2) The name of the corridor, which may be a name indicating in a general way the area proposed to be included within or served by the corridor and shall include the words “___________ Research and Development Corridor,” or “The Research and Development Corridor of ____________,” the blank spaces to be filled in with the name of the authorizing subdivisions or other geographically descriptive word or words. (3) That the corridor is organized pursuant to this chapter. (4) The name of each authorizing subdivision together with the date on which the governing body thereof adopted an authorizing resolution. (5) The period for the duration of the corridor, which may be perpetual subject to this chapter. (6) The location of the principal office of the corridor, which must be within the corporate limits of an authorizing subdivision. (7) The number of members, which must be an odd number not less than three, of the board of directors of the corridor and the duration of the term of office, which shall not be in excess of six years. (8) A description of the geographic boundaries of the corridor, which boundaries must be within the corporate limits of an authorizing subdivision that adopted an authorizing resolution to create the corridor and which description may be by reference to tax assessment tracts in accordance with the tax assessor’s system, by metes and bounds, by subdivision lot, by reference to recorded deeds, or by other reasonable reference method. (9) The terms of any prohibition, limitation, or condition with respect to the exercise of any authority or power of the corridor or the duration of the corridor, if any. (10) Any provision that provides for the vesting of title to property of the corridor upon dissolution of the corridor, which must not be in violation of this chapter or other state law. (11) That the corridor shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation. (d)(1) The governing body of a subdivision with which an application is filed pursuant to this chapter, as promptly as practicable, shall review the application and the attached form of certificate of incorporation. (2) The governing body of each subdivision that has adopted an authorizing resolution shall cause the resolution to be made a part of the minutes and record of the meeting of the governing body during which the authorizing resolution was adopted. (3) An authorizing resolution shall operate and be construed only as historical and evidential. An authorizing resolution shall not operate or be construed as of general and permanent nature or operation, may be adopted at the same meeting at which it is introduced, and shall be effective immediately upon adoption without posting or publication by any electronic, printed, or other means. (e) As soon as practicable after the adoption of an authorizing resolution by each authorizing subdivision, the applicants shall do all of the following: (1) Execute and acknowledge the certificate of incorporation as approved by each of the authorizing subdivisions before an officer authorized by law to take acknowledgments to deeds. (2) Attach to the certificate of incorporation both of the following: a. A certified copy of each authorizing resolution. b. A certificate by the Secretary of State stating that the name proposed for the corridor is not identical to that of any other corporation organized under state law or so nearly similar as to lead to confusion and uncertainty. (3) File the certificate of incorporation for record in the office of the judge of probate of the county in which the principal office of the corridor is to be located. (f) Upon the filing for record of the certificate of incorporation, the corridor shall come into existence and shall constitute a public corporation under the name set forth in the certificate of incorporation, whereupon the corridor shall be vested with all authority, powers, and rights granted by this chapter, and the judge of probate shall send a notice to the Secretary of State that the certificate of incorporation of the corridor has been filed for record. (g) The certificate of incorporation of any corridor may be amended in the following manner: (1) The board shall first adopt a resolution proposing an amendment to the certificate of incorporation which must be set forth in full in the resolution. The amendment may include any matters that may have been included in the original certificate of incorporation. An amendment to the certificate of incorporation may not authorize the corridor to acquire property or otherwise expand its activities outside the corporate limits of its authorizing subdivision or authorizing subdivisions. (2) After the adoption by the board of a resolution proposing an amendment to the certificate of incorporation of the corridor, the chair of the board and the secretary of the corridor shall sign and file a written application in the name of and on behalf of the corridor with the governing body of each authorizing subdivision requesting the governing body to adopt a resolution approving the proposed amendment, and accompanied by a certified copy of the resolution adopted by the board proposing the amendment to the certificate of incorporation, together with documents in support of the application as the chair considers appropriate. (3) As promptly as practicable after the filing of the application with the authorizing subdivision and upon compliance with public notice requirements, the governing body shall review the application. The governing body of each subdivision that has adopted a resolution approving the amendment shall cause the resolution to be made a part of the minutes and record of the meeting of the governing body during which the resolution was adopted. A resolution approving an amendment shall operate and be construed only as historical and evidential. An authorizing resolution shall not operate or be construed as of general and permanent nature or operation, may be adopted at the same meeting at which it is introduced, and shall be effective immediately without posting or publication by any electronic, printed, or other means. (4) As soon as practicable after the adoption of a resolution approving the amendment by each authorizing subdivision, the chair of the board of the corridor and the secretary of the corridor shall sign and file for record in the office of the judge of probate with which the certificate of incorporation of the corridor was originally filed a certificate in the name of and on behalf of the corridor reciting the adoption of the respective resolutions by the board and by the governing body of each authorizing subdivision, setting forth the proposed amendment. The judge of probate for the county shall thereupon record the certificate in an appropriate book in his or her office. When the certificate has been so filed and recorded, the amendment shall become effective and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation of a research and development corridor shall be amended except in the manner provided in this section. EndFragment (Act 2024-308, §3.)

Ala. Code § 11-66A-4 Board of Directors of Corridor.

11-66A-4. Board of Directors of Corridor. (a) Each corridor shall be governed by a board of directors that shall exercise, or authorize the exercise of, all powers of the corridor. (b) The board of each corridor shall consist of the number of directors provided in the certificate of incorporation. (c) Any natural person may serve on the board of a corridor. All directors with voting powers shall be appointed by the authorizing subdivision of the corridor unless there are two or more authorizing subdivisions for a corridor, in which case a majority of the directors must be appointed by a single authorizing subdivision. A majority of the directors must be natural persons who are residents of an authorizing subdivision, and a minority of the directors may be natural persons who are not residents of any of the authorizing subdivisions; provided, however that any non-resident director must also be approved by the governing body of each authorizing subdivision. In addition, the Alabama Innovation Corporation may appoint a single non-voting member who shall not count towards the establishment of a quorum. (d) Notwithstanding any other provision of this chapter, board membership shall be inclusive and reflect the racial, gender, geographic, and economic diversity of the authorizing subdivisions of the corridor. Minority business organizations in Alabama shall submit names that they suggest for appointment to the board to the authorizing subdivision. (e) Each director shall hold a place on the board and shall be appointed for the term of that place by the authorizing subdivision appointing that director, all as provided in the certificate of incorporation. Except as may be otherwise provided in the certificate of incorporation, an officer or employee of any authorizing subdivision shall be eligible for appointment and may serve as a member of the board for the first to expire of the term for which that officer is appointed or the term thereof as an officer of the authorizing subdivision. (f) Each director may hold a place on the board for successive terms without limit. If at the expiration of any term of office of any director a successor has not been appointed, the director whose term of office expired shall continue to hold office until the successor is appointed by the person or persons having the appointive power for the place of that director. If at any time there is a vacancy on the board, whether by death, resignation, incapacity, disqualification, or otherwise, a successor director to serve for the unexpired term applicable to the vacancy shall be elected or appointed by the authorizing subdivision that appointed the predecessor director, or, in the case of a director appointed by the Alabama Innovation Corporation, by the Alabama Innovation Corporation. (g) Each director shall serve as such without compensation but shall be reimbursed for expenses actually incurred by the director while conducting his or her official duties. (h) The board may hold regular and special meetings as the board determines or as provided in the bylaws of the board. Any member of the board, any provision of law to the contrary notwithstanding, may attend and participate in, and constitute part of the quorum for, any regular or special meeting of the board in person or by means of telephone conference, video conference, or similar communications equipment that allows all participants in the meeting to hear each other at the same time; provided, every meeting shall have one physical location available in an authorizing subdivision for individuals wishing to be physically present, and any vote taken at a meeting using the foregoing communication equipment shall be taken by roll call vote that allows each participant to vote individually in a manner audible to all participants. The board may take any action at any regular or special meeting. A majority of the directors present, in person or by electronic or telephonic communications, at a meeting shall constitute a quorum for the exercise of any authority or power of the board. Any meeting of the board may be adjourned by a majority of the directors present or may be adjourned by a single director if the director is the only director present at the meeting. No vacancy in the membership of the board or the voluntary disqualification or abstention of any member of the board shall impair the right of a quorum to exercise all the powers and perform all the duties of the board at a regular or special meeting. The secretary of the corridor shall reduce to writing and maintain in a permanent record all proceedings and resolutions of the board. Copies of the proceedings, when certified by the secretary of the corridor, shall be received in all courts as prima facie evidence of the matters and things therein certified. (i) The determinations set forth in a resolution of the board, including the determination that an activity, facility, or undertaking, or application of funds under control of the board constitutes a “project” or are otherwise in furtherance of the purposes of this chapter, shall be subject to judicial review as provided and limited by law for judicial review of legislative acts and determinations by a subdivision. (j) If a matter comes before the board with respect to which any director, any related party, including a sibling, spouse, or lineal descendant, or any business enterprise with which the director is associated, has any direct or indirect pecuniary interest, the director shall immediately disclose the interest to the board and remove himself or herself and withdraw from the meeting prior to the consideration, deliberation, and voting on the matter by the board. (k) The corridor and the incorporators, directors, officers, employees, and agents of the corridor shall have the same limitations on liability as a municipality and its officers, employees, and agents for negligent acts. These limitations shall not apply to subcontractors or independent contractors of the corridor. (l) Any director may be removed from office in the same manner and on the same grounds provided in the state constitution and the general laws of the state for impeachment and removal of officers. EndFragment (Act 2024-308, §4.)

Ala. Code § 11-66A-5 Officers of Corridor.

11-66A-5. Officers of Corridor. The officers of a research and development corridor shall consist of a chair, a vice chair, a secretary, a treasurer, and such other officers as its board deems necessary or desirable. The offices of secretary and treasurer may be held by the same individual. The chair and vice chair of a research and development corridor shall be elected by the board from the board membership. The secretary, the treasurer, and any other officers of the corridor may but need not be members of the board and shall also be elected by the board. The chair, vice chair, and secretary of the corridor shall also be the chair, vice chair, and secretary of the board, respectively. EndFragment (Act 2024-308, §5.)

Ala. Code § 11-66A-6 Powers of Corridor.

11-66A-6. Powers of Corridor. In furtherance of a project, each corridor shall have all of the following stated powers together with all powers incidental to these powers and necessary to effect the proper exercise of the corridor: (1) To have succession in its corporate name for the duration of the corridor specified in the certificate of incorporation. (2) To sue and be sued in its own name in civil suits and actions and to defend suit against the corridor. (3) To adopt and make use of a corporate seal and to alter the seal as necessary. (4) To adopt, alter, and repeal the provisions of the corridor’s certificate of incorporation or the bylaws, regulations, and rules, not inconsistent with this chapter, for the regulation and conduct of its affairs and business. (5) To acquire real property within the geographic boundaries of the corridor and the corporate limits of its authorizing subdivision or authorizing subdivisions, whether by gift, purchase, transfer, foreclosure, lease, or devise, and to construct, improve, operate, maintain, equip, and furnish the property and interests in property as the board determines to be necessary for the purposes of the corridor. (6) To lease all or any part of any property upon such terms and conditions as its board determines necessary or desirable. (7) To convey any property of the corridor with or without valuable consideration as the board shall determine. (8) To enter into a management contract or contracts with any person or persons of all or any part of its property as may in the judgment of such corridor be necessary or desirable in order to perform more efficiently or economically any function for which the corridor may become responsible in the exercise of the powers conferred upon it by this chapter. (9) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as its board determines to be necessary or desirable. (10) Upon compliance with public notice requirements, to fix and revise, and charge and collect, fees, licenses, rates, rentals, and assessments to any qualified enterprise or other business located within the geographic boundaries of the corridor, but only as to each qualified enterprise or other business, for any tax year, the amount of eligible taxes abated for the qualified enterprise or business under subdivision (22), and apply the proceeds thereof for any lawful purpose of the corridor. (11) To the extent authorized or permitted by the state constitution, to grant, loan, or donate, or otherwise make available any funds, money, revenues, or property of the corridor upon such terms as the board shall determine to: (i) any public entity or entities, and (ii) upon compliance with public notice requirements and approval by each authorizing subdivision, any corporate person or corporate persons and natural person or natural persons. (12) To the extent authorized or permitted by the state constitution, to assume, incur, or issue any financial obligation or financial obligations for any lawful purpose, as more particularly provided in this chapter. (13) To pledge for the benefit of any financial obligation of the corridor any revenues, including, but not limited to, proceeds of any tax to which it is entitled, from which the financial obligation is payable, and to mortgage or pledge its property and revenues, or any portion thereof, as further provided in this chapter. (14) To assume obligations secured by a lien on, or secured by and payable out of or secured by a pledge of, any property or part thereof or the revenues derived from any property that may be acquired by the corridor. (15) To make, enter into, and execute contracts, agreements, leases, and other instruments, and to take such other actions as may be necessary or convenient to accomplish any purpose for which the corridor was organized or to exercise any power granted under this chapter. (16) To enter into contracts with, to accept aid, loans, and grants from, to cooperate with, and to take any action not specifically prohibited by this chapter or other applicable laws of the state that may be necessary in order to obtain or secure the aid and cooperation of the United States, the state, or any agency, department, instrumentality, or political subdivision of either in furtherance of the purposes of this chapter. (17) To apply for, accept, receive, apply, disburse, expend, and use to accomplish the purposes of this chapter any money, property, labor, or other things of value, from any source, including, without limitation, the state, any public entity, and the United States, subject to any lawful condition upon which the aid or contributions may be given or made. (18) To appoint, employ, contract with, and provide for compensation of the employees and agents of the corridor including, but not limited to, architects, engineers, attorneys, accountants, investment advisors and financial experts, fiscal agents, and such other advisors, consultants, and agents as the board determines to be necessary or desirable. (19) To invest its monies, including, but not limited to, the monies held in any special fund created pursuant to any trust indenture or agreement or resolution securing any of its financial obligations and proceeds from the sale of any financial obligations not required for immediate use, in such investments as are authorized by the laws of the state for the investment of funds and money of a municipality. (20) To acquire, create, establish, operate, or support, or to participate as a member of, any corporate person that will assist the corridor in, or which otherwise has as a purpose of accomplishing the purposes of this chapter, including, but not limited to, the support of any corporate person by means of grants or loans of property or the issuance of financial obligations for the benefit of the corporate person. (21) To exercise any authority or power that is granted by state law to any private corporation or public corporation which is not in conflict with the purposes of this chapter. (22) To abate any eligible tax or eligible taxes for any project. (23) To do any and all things necessary or convenient to carry out its purposes and to exercise its powers pursuant to this chapter to the extent permitted by law. EndFragment (Act 2024-308, §6.)

Ala. Code § 11-66A-7 Financial Obligations of a Research and Development Corridor.

11-66A-7. Financial Obligations of a Research and Development Corridor. (a) Each corridor shall have, and may exercise as provided in Section 11-66A-6(12), the authority and power to assume, incur, or issue, at any time and from time to time, any financial obligation or financial obligations, without limitation as to aggregate principal amount, as the board determines to be necessary or desirable for any lawful purpose of the corridor, including, but not limited to: (1) Payment of the costs of a project; (2) Payment, in whole or in part, in advance or at stated maturity, of any financial obligation of the corridor; (3) Provision for such reserves as may be required in connection with the financial obligations; (4) Payment of any extraordinary, nonrecurring obligations, including, but not limited to, casualty losses, legal judgments, and contractual termination payments; (5) Payment of administration and operation of projects; and (6) Provision of funds to accomplish or effect any purpose of this chapter. (b) Each financial obligation of a research and development corridor may be in such form and denomination and of such tenor and maturity or maturities, shall be payable in lawful currency of the United States in such installments as serial or term obligations or a combination thereof, and at such time or times, not exceeding 45 years from the date thereof, may be payable at such place or places whether within or without the state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be subject to prepayment or redemption in advance of maturity at such price or prices and upon such notice, terms, and conditions, and may contain such provisions which are not in violation of this chapter, all as provided in the applicable agreement, indenture, or resolution of the corridor which has authorized the incurrence or issuance thereof. (c) A research and development corridor may provide that any financial obligation shall bear interest at a rate or rates fixed to maturity at the time of issuance or at a rate or rates which may be changed from time to time during the term of the financial obligation in accordance with an objective procedure determined by the board at the time of issuance of the financial obligation or in connection with published interest rates or indices that reflect an objective response to market changes in interest rates by financial institutions, governmental agencies, or other generally recognized public or private sources of information concerning interest rates. (d) A research and development corridor may deliver and perform all agreements and contracts for the services of paying agents and trustees with respect to financial obligations incurred or issued under this chapter, for the purchase of any financial obligations issued under this chapter, and for the guarantee or insurance, pursuant to municipal bond insurance policies, letters of credit, standby purchase agreements, and other credit or liquidity facilities, of the payment, when due, of the principal of, and premium and interest on, any financial obligations so assumed, incurred, or issued by the corridor pursuant to this chapter. (e) A research and development corridor shall cause all financial obligations assumed, incurred, or issued by the corridor to be executed by manual or electronic signature of an officer or officers as authorized and provided in the agreement, indenture, or resolution of the corridor that authorized the financial obligation. A statement upon the signature page of a financial obligation of a research and development corridor that the financial obligation was issued under the seal of the corridor shall be conclusive for all purposes of state law. A financial obligation that has been executed by an officer or officers in office on the date of the execution shall be valid and enforceable, notwithstanding that before delivery of the financial obligation, any such officer whose signature appears thereon has ceased to hold such office. (f) All financial obligations incurred or issued pursuant to this chapter by a research and development corridor may be sold at private or public sale at such price or prices and in such manner as the board shall determine. (g) Each financial obligation of a research and development corridor is hereby made a negotiable instrument for all purposes, anything in state law, including, but not limited to, the Alabama Uniform Commercial Code, to the contrary notwithstanding and without regard to whether the financial obligation is of such form and character as to be a negotiable instrument under state law; provided, however, the corridor, in its discretion, may provide that any particular financial obligation shall not be negotiable or may be negotiable only upon such terms as the corridor shall prescribe. (h)(1) The corridor shall apply the proceeds of any financial obligation solely for the purposes for which the financial obligation has been incurred or issued, including, but not limited to, payment of the costs of incurrence or issuance of the financial obligations, including, but not limited to: (i) fees and expenses of attorneys, accountants, financial advisors, consultants, trustees and paying agents, and underwriters; and (ii) the costs of municipal bond insurance policies, letters of credit, and such other credit or liquidity facilities which provide for payment when due of all or part of the principal of, and premium and interest on, the financial obligations. (2) The corridor may deposit in trust the proceeds of any financial obligation incurred or issued for payment of another financial obligation of the corridor on such terms as the board approves with a financial institution having trust powers within or without the state. The proceeds, to the extent required by the terms of and purpose of the trust, may be invested as provided for public funds of a municipality. (i) The financial obligations of any corridor shall be legal investments in which the state and its agencies and instrumentalities, all subdivisions and public corporations organized under the laws of the state, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions, and investment companies of any kind, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons whosoever are now or may hereafter be authorized to invest in financial obligations or other obligations of the state, may properly and legally invest funds in their control or belonging to them. (j) The validity of any financial obligation that states therein that it is issued pursuant to this chapter, in any action or proceeding involving the validity thereof, shall be incontestable, and the financial obligation shall be conclusively deemed to be the valid financial obligation of the applicable corridor enforceable by all rights and remedies available at law or in equity under state law. EndFragment (Act 2024-308, §7; Act 2025-289, §1(b)(2).)

Ala. Code § 11-66A-8 Sources of Payment Of, and Security For, Financial Obligations of a Research and Development Corridor.

11-66A-8. Sources of Payment Of, and Security For, Financial Obligations of a Research and Development Corridor. (a) Each financial obligation or obligations of a research and development corridor shall be a limited obligation of the corridor payable solely from the sources of payment specified therein, subject to the limitations and provisions thereof, including, but not limited to, the issuance of financial obligations payable from the same source of funds on an equal and proportionate basis or on a subordinate basis, as the corridor may determine. (b) The corridor may assign, mortgage, or pledge any property of the corridor to secure the payment and performance of any financial obligation of the corridor; provided, the corridor, in its discretion, may provide property as security for any one or more financial obligations of the corridor without, to the extent permitted by any applicable contractual agreements, provision of the same or any other any property as security for any other financial obligation or obligations of the corridor. In furtherance of this subsection, the corridor may deliver a contractual agreement to, or for the benefit of, the owner or owners of any financial obligation of the corridor, which agreement may contain such agreements, conditions, covenants, provisions, and terms as the corridor may determine to be necessary or desirable to provide for the protection and security of the owners of the financial obligations, including, but not limited to, restrictions on the use of the property of the corridor and the incurrence of additional financial obligations of the corridor, the terms for amendment, with and without the consent of the owner or owners, of the financial obligations and the documents pursuant to which such financial obligations were incurred or issued, providing for the rights, duties, and authority of a trustee, and providing for the exercise of legal and equitable rights and remedies by the owner or owners. (c) Any assignment, mortgage, or pledge of property by the corridor for the benefit of any financial obligation shall be effective, valid, and binding from the time the assignment, mortgage, or pledge is made, and the property subject thereto shall immediately, or as soon thereafter as the corridor obtains any right thereto or interest therein, be subject to the assignment, mortgage, or pledge without physical delivery of the subject property or any agreement, document, or instrument providing therefor, or any further act, and the encumbrance and lien of any such assignment, mortgage, or pledge shall be effective, valid, and binding as against all persons having claims of any kind in tort, contract, or otherwise against the corridor, irrespective of whether the persons have actual notice thereof, from the time notice of the assignment, mortgage, or pledge is filed for record: (i) in the office of the judge of probate in which the certificate of incorporation of the corridor was filed for record; and (ii) in the case of any assignment, mortgage, or pledge of any tangible property, whether real, personal, or mixed, in the office of the judge of probate of the county in which the property is or is to be located pursuant to any agreement made by the corridor with any person respecting the location and use of the property. The notice shall contain a statement of the existence of any such assignment, mortgage, or pledge, a description of the subject property, and a description of the financial obligations secured thereby, all in terms sufficient to give notice to a reasonably prudent person of the existence and effect of any such assignment, mortgage, or pledge; provided, the notice may be in form of: (i) a summary statement; or (ii) an executed counterpart of the agreement, document, or instrument which contains the assignment, mortgage, or pledge. The recording of the notice shall operate as constructive notice of the contents thereof. (d) All financial obligations assumed, incurred, or issued by a research and development corridor shall be solely and exclusively an obligation of the corridor and shall not create a direct, indirect, or contingent obligation or pecuniary liability, or general obligation or charge against the general assets, credit, funds, property, revenues, or taxing power of the state, of any other public entity, or of any subdivision, including, but not limited to, any authorizing subdivision and any public entity exercising the authority granted under Section 11-66A-10 or 11-66A-12. (e) The owner or owners of any financial obligation or financial obligations of the corridor shall have no recourse against any incorporator, any past, present, or future director, officer, employee, or agent of the corridor, or of any successor thereof, for the payment of any amount which shall have become due and payable under the financial obligation or financial obligations or for the payment or performance of any agreement, document, or instrument pursuant to which the financial obligation or financial obligations were assumed, incurred, or issued by which the financial obligation or financial obligations shall be secured. EndFragment (Act 2024-308, §8.)

Ala. Code § 11-66A-9 Validation of Financial Obligations of a Research and Development Corridor.

11-66A-9. Validation of Financial Obligations of a Research and Development Corridor. (a) A research and development corridor shall constitute a “unit” for purposes of Article 17 of Chapter 6 of Title 6. A research and development corridor, in the determination of the board, may file a petition with respect to any financial obligation or financial obligations thereof pursuant to Article 17 of Chapter 6 of Title 6. (b)(1) A research and development corridor, in the determination of the board and upon the adoption by the board of a resolution providing for the issuance of financial obligations, may cause a notice respecting the issuance of the financial obligations to be published once a week for two consecutive weeks in each county in which shall be located any project financed or in any way assisted by the issuance of the financial obligations. The publication in each such county shall be in a newspaper having general circulation therein and shall be in substantially the following form (the blanks being properly filled in) at the end of which shall be printed the name and title of either the chair or secretary of the corridor: “____________________________, a public corporation and instrumentality of the State of Alabama, on the _______ day of ________________, authorized the issuance of $______ principal amount of __________________ (identification of the obligation) of the said public corporation for purposes authorized in Chapter 66A of Title 11, Code of Alabama 1975, under which the public corporation was organized. Any action or proceeding questioning or contesting the validity of the said financial obligations, or the instruments securing the same, or the proceedings authorizing the same, must be commenced on or before _________________ (here insert date determined in accordance with the provisions of subdivision (2).” (2) The date stated in the notice as the date on or before which any action or proceeding questioning or contesting the validity of the financial obligations referred to in the notice must be commenced shall be a date at least 30 days after the date on which occurs the last publication of the notice necessary for it to have been published at least once in all counties in which it is required to be published. (3) Any action or proceeding in any court to set aside or question the proceedings for the issuance of the financial obligations referred to in the notice or to contest the validity of any such financial obligations, or the validity of any instruments securing the same, must be commenced on or before the date determined in accordance with subdivision (2) and stated in the notice as the date on or before which any such action or proceeding must be commenced. After that date, no right of action or defense shall be asserted questioning or contesting the validity of the financial obligation or the instruments securing the same, or the proceedings authorizing the same, nor shall the validity of such financial obligations or such instruments or proceedings be open to question in any court on any ground whatsoever, except in an action or proceeding commenced on or before that date. EndFragment (Act 2024-308, §9.)

Ala. Code § 11-66A-10 Special Authority of Public Persons to Support Corridors.

11-66A-10. Special Authority of Public Persons to Support Corridors. (a) In furtherance of the public purposes of this chapter, the state, and any public entity, upon such terms and with or without consideration as it may determine and in compliance with the state constitution and public notice requirements, may undertake any of the following for the benefit of any corridor project, without regard to whether any public entity may be an authorizing subdivision with respect to the corridor or may have a project located or undertaken within the jurisdiction thereof: (1) Donate, grant, loan, or pledge to, or for the benefit of, any corridor any funds, revenues, or tax proceeds of the public entity; (2) Perform services for the benefit of any corridor; (3) Pay, commit to pay, or guarantee, on a continuing basis by contractual agreement, the payment when due of all or any part of the principal of, and premium and interest on, any financial obligation of a research and development corridor for such period, including the period ending on the stated maturity of the financial obligation, as the public entity may determine; (4) Donate, sell, convey, transfer, lease, or grant any property to any corridor without the necessity of authorization at any election of qualified voters of the public entity; and (5) Do any and all things, whether or not specifically authorized in this chapter, not otherwise prohibited by law, that are necessary or desirable to aid and cooperate with any corridor with respect to any project or in furtherance of the public purposes of this chapter. (b) The state and each public entity, upon such terms and conditions and with or without consideration as it may determine and in compliance with the state constitution and public notice requirements, may assume, incur, or issue, by private or public sale in compliance with applicable state law and the state constitution, any financial obligation as a general, limited, or special obligation thereof, to provide funds for any purpose of this section. (c) The state and each public entity shall cause each contractual agreement or instrument delivered for any purpose in subsection (a) to provide for, or set forth, in the agreement or instrument: (i) the purpose of the agreement; and (ii) the authorization and direction of a specific officer or officers, by title or office, of the public entity to pay any pecuniary obligation of the public entity in lawful currency of the United States and in liquidated amounts when due on a date or dates certain, which amounts and dates of payment may be set forth in the agreement or instrument, or schedule thereto, or incorporated therein by specific reference. (d) With specific regard to the state, the Governor or his or her designee may enter into any contractual agreement or instrument, exercising the state’s authority hereunder. (e) Any court in the state having competent jurisdiction shall issue mandamus for the payment of any pecuniary obligation of the state or a public entity in a contractual agreement or instrument delivered pursuant to this section upon proper proof of nonpayment thereof, or failure of compliance with the provisions of law with respect thereto, being furnished by, or on behalf of, the corridor or any beneficiary of the pecuniary obligation of the state or the public entity under the contractual agreement or instrument. EndFragment (Act 2024-308, §10.)

Ala. Code § 11-66A-11 Audited Financial Statements.

11-66A-11. Audited Financial Statements. (a) A research and development corridor shall be required to produce audited financial statements from a certified public accountant or a firm thereof regularly engaged in the auditing of financial records, or an auditor who is regularly employed by the Department of Examiners of Public Accounts, for each fiscal year and, when available, deliver the audited financial statements to each public entity that financially supports the corridor, if the corridor: (i) receives any eligible funds; (ii) receives any funds, proceeds, or revenues from any public entity; or (iii) issues any financial obligation. (b) For purposes of this section, the person conducting an audit pursuant to subsection (a) must be a person who: (i) is in fact independent; (ii) does not have any direct financial interest or any material indirect financial interest in the corridor; and (iii) is not connected with the corridor or any officer, employee, promoter, underwriter, trustee, partner, director, or person performing similar functions. EndFragment (Act 2024-308, §11.)

Ala. Code § 11-66A-12 Exemption of Corridor from Taxation.

11-66A-12. Exemption of Corridor from Taxation. (a) Each corridor shall be exempt from all fees and charges imposed by any judge of probate. (b) The income of any corridor, all financial obligations of a corridor, the income and interest from the financial obligations, conveyances by or to a research and development corridor, and leases, mortgages, and deeds of trust or trust indentures by or to a corridor, shall be exempt from all taxation in the state. (c) An authorizing subdivision may elect by a majority vote of the members of its governing body to exempt the corridor and its real and tangible property from the payment of eligible taxes. The exemptions authorized in this subsection may be granted in the subdivision’s authorizing resolution or by subsequent resolution, upon compliance with public notice requirements. The resolutions may provide for limitations on and eligibility for exemptions from the payment of eligible taxes. (d)(1) Except as provided in subdivision (2), upon compliance with public notice requirements, a governing body of a public entity other than an authorizing subdivision may elect by a majority vote of the members of the governing body to exempt the corridor and its real and tangible property from the payment of any taxes levied by the public entity within the geographical boundaries of the corridor. The resolutions may provide for limitations on and eligibility for exemptions from the payment of taxes. (2) Notwithstanding subdivision (1), the exemptions authorized by this subsection shall not apply to the following: a. Taxes levied for public school purposes. b. Incremental ad valorem taxes levied within a tax increment district and required by state law to be paid to the tax increment district. c. Real or personal property to the extent the property is or will be treated as owned for federal income tax purposes by a corporate person or natural person. (e) The corridor shall be exempt from the state’s portion of taxes levied by the State of Alabama. EndFragment (Act 2024-308, §12.)

Ala. Code § 11-66A-13 Exemption of Corridor from Usury and Interest Laws.

11-66A-13. Exemption of Corridor from Usury and Interest Laws. Each corridor and the contractual agreements and financial obligations of the corridor shall be exempt from state laws governing usury or prescribing or limiting interest rates, including, but not limited to, Chapter 8 of Title 8. EndFragment (Act 2024-308, §13.)

Ala. Code § 11-66A-14 Exemption of Corridor from Competitive Bid Laws.

11-66A-14. Exemption of Corridor from Competitive Bid Laws. Each corridor, all contractual agreements made by the corridor, and any building or improvement of a project shall be exempt from state laws requiring competitive bids for any contract to be entered into by any public entity, including, but not limited to, Chapter 2 of Title 39 and Article 3 of Chapter 16 of Title 41. EndFragment (Act 2024-308, §14.)

Ala. Code § 11-66A-15 Exemption of Corridor from State Oversight.

11-66A-15. Exemption of Corridor from State Oversight. (a) Except as provided in this chapter and specifically in subsection (b), a research and development corridor shall not be required to obtain the approval or consent of, or make any filing with, or provide notice to, the state or any state agency, department, or other instrumentality of the state, with respect to the incorporation or the amendment of the certificate of incorporation of the corridor, or the exercise of any authority or power provided in this chapter or permitted under state law. (b) A research and development corridor shall be subject to local codes and ordinances. EndFragment (Act 2024-308, §15.)

Ala. Code § 11-66A-16 Applicability of Certain State Laws.

11-66A-16. Applicability of Certain State Laws. (a) A research and development corridor shall be subject to Chapter 25 of Title 36, but board members shall not be required to file a statement of economic interests under Section 36-25-14, or any successor to that law. (b) Except as otherwise provided in this chapter, a research and development corridor shall be subject to the Alabama Open Meetings Act, Chapter 25A of Title 36. EndFragment (Act 2024-308, §16.)

Ala. Code § 11-66A-17 Corridor Shall Be Nonprofit Corporation.

11-66A-17. Corridor Shall Be Nonprofit Corporation. A research and development corridor shall be a nonprofit corporation, and no part of a research and development corridor’s net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm, or corporation, except that in the event a board shall determine that sufficient provision has been made for the full payment of the expenses, financial obligations, and other obligations of a research and development corridor, then any portion, as determined by the board, of the net earnings of a research and development corridor thereafter accruing, in the discretion of the board, may be paid to one or more of the corridor’s authorizing subdivisions. EndFragment (Act 2024-308, §17.)

Ala. Code § 11-66A-18 Dissolution of Corridor; Vesting of Title to Property of Corridor.

11-66A-18. Dissolution of Corridor; Vesting of Title to Property of Corridor. At any time when a research and development corridor has no financial obligations or other executory agreements outstanding, its board may adopt a resolution, which shall be entered upon its minutes, declaring that the corridor shall be dissolved. Upon filing for record of a certified copy of the resolution in the office of the judge of probate with which the corridor’s certificate of incorporation is filed, the corridor shall thereupon stand dissolved, and in the event the corridor owned any property at the time of the dissolution, the title to all its properties, subject to the state constitution, thereupon shall vest in the corridor’s authorizing subdivision, or if the corridor has more than one authorizing subdivision, in the corridor’s authorizing subdivisions as tenants in common. EndFragment (Act 2024-308, §18.)

Ala. Code § 11-66A-19 Incorporation of Multiple Corridors by Same Authorizing Subdivision.

11-66A-19. Incorporation of Multiple Corridors by Same Authorizing Subdivision. The existence of a research and development corridor incorporated under this chapter shall not prevent the subsequent incorporation under this chapter of another corridor pursuant to authority granted by the same authorizing subdivision. EndFragment (Act 2024-308, §19.)

Ala. Code § 11-66A-20 Reporting.

11-66A-20. Reporting. Not later than January 1, annually, each corridor shall submit a report detailing all activities, including the status of any qualified enterprise within the corridor and the audited financial statements submitted pursuant to Section 11-66A-12, to the Governor, the Lieutenant Governor, the Secretary of Commerce, the Speaker of the House of Representatives, the President of the Senate, and each authorizing subdivision. EndFragment EndFragment (Act 2024-308, §20.)

Ala. Code § 11-66A-21 Cumulative Effect of Chapter.

11-66A-21. Cumulative Effect of Chapter. The provisions of this chapter are cumulative and shall not be deemed to repeal existing laws; provided, however, this chapter shall supersede any other laws to the extent the laws are clearly inconsistent with the provisions of this chapter. EndFragment (Act 2024-308, §21.)

Ala. Code § 11-66A-22 Anti-poaching

11-66A-22. Anti-poaching If a qualified enterprise exists in the state, then the qualified enterprise, or any portion thereof, cannot relocate into a research and development corridor or otherwise be deemed or treated as a qualified enterprise unless the governing body of each municipality within whose corporate limits the qualified enterprise, or portion thereof, exists consents to the relocation. EndFragment (Act 2024-308, §22.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026