AL SB242

Authorizes counties and municipalities to create innovation districts as public corporations to support qualified enterprises and economic development activities using public revenues.

Districts governed by boards with odd-numbered membership of at least three directors, with majority appointed by authorizing subdivisions; allows diverse board composition reflecting racial, gender, geographic, and economic diversity.

Exempts districts from taxation, competitive bid laws, usury limitations, probate fees, and most state oversight requirements while requiring audited financial statements if receiving public funds or issuing financial obligations.

Grants districts broad powers including acquiring/leasing property, issuing financial obligations (up to 45 years), pledging special public revenues, entering contracts, and providing funds to qualified enterprises identified in state economic development plans.

Districts must be nonprofit corporations; can be dissolved when no outstanding financial obligations exist, with property vesting in authorizing subdivision(s); effective June 1, 2024.