The bill amends Section 41-10-629 of the Code of Alabama 1975 to establish the Alabama 21st Century Fund, which will be funded with tobacco revenues. The amendment allows for funds that are not needed for debt service on bonds issued by the Alabama 21st Century Authority to be redirected towards other project costs and debt service obligations of the State Industrial Development Authority. Specifically, it stipulates that beginning in fiscal year 2018, $16 million will be retained in the fund for bond obligations, and any excess funds may be utilized for project costs, debt service on bonds issued by the Alabama Incentives Financing Authority, and a one-time transfer of $5 million to the Alabama Department of Commerce for various initiatives.

Additionally, the bill introduces new provisions regarding the investment of revenues in the special fund, allowing the State Treasurer to invest these funds until they are needed for debt service. It also mandates that the Alabama 21st Century Authority maintain a minimum of 1.3 times the maximum annual debt service on all obligations, ensuring financial stability. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 41-10-629
Engrossed: 41-10-629