HB540 Summary

• Creates the Alabama Innovation Corporation as a public corporation with a separate legal existence from the state to promote entrepreneurship, innovation, technology, research and development, and economic growth.

• Establishes a 11-member board of directors consisting of 5 ex officio members (Governor, House Speaker, Senate President Pro Tempore, and House and Senate minority leaders) and 6 at-large directors appointed by the Governor with relevant innovation and entrepreneurship experience.

• Creates the Alabama Innovation Fund to be funded through gifts, grants, contributions, legislative appropriations, and investment income; fund shall be invested in eligible investments and expended for purposes including marketing the state, supporting accelerators and research centers, assisting Small Business Innovation Research grant recipients, and supporting innovation-focused workforce development.

• Authorizes the corporation to enter into contracts without compliance with standard state procurement requirements and to partner with economic development entities, other state agencies, and private entities to accomplish its purposes.

• Requires the corporation to report to the Legislature beginning in 2023 on efforts to accomplish the goals of the act; act becomes effective the first day of the second month following passage and approval by the Governor.