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Committee adopts amendment, raises inland port grant funding to $5 million and caps admin costs at 10%
Summary
Lawmakers amended and approved HB 1-35 to expand an ADECA-administered inland port grant program to include municipal ports such as Bayou La Batre, increase funding from $3 million to $5 million, require a 20% local match, limit state grants to 50% of project costs and cap administrative costs at 10%.
The Ways and Means General Fund committee amended and approved House Bill 1-35 to expand and increase funding for Alabama’s inland port infrastructure grant program administered by the Alabama Department of Economic and Community Affairs (ADECA).
Representative Brown, the bill’s presenter, said HB 1-35 recognizes municipally owned facilities — including Bayou La Batre — as inland ports eligible for the program and would raise the fund from $3,000,000 to $5,000,000. "What we're looking to do is increase the fundings currently at 3,000,000 to go to 5,000,000," he said.
Under the bill as discussed in committee, grants will be used for construction, dredging and related facilities such as warehouses. Representative Brown said projects would require a local match equal to 20% of total project cost and that state grants may not exceed 50% of a project’s total cost.
During debate members adopted an amendment that replaces a line in the bill to limit administrative expenses. The amendment text as stated in the transcript reads: "No more than 10% of the total amount." A sponsor of the amendment said the change is meant to keep administrative costs from crowding out project funds.
Committee members asked when the new funding would be available. Representative Brown said the existing $3,000,000 was passed previously and will take effect this year, and that the additional funds would be effective October 1 of the following fiscal cycle.
The committee moved the measure with the adopted amendment and reported the bill favorably. Members characterized the measure as an opportunity to support inland port facilities that historically have not received state funding.
Next steps: the presenter said staff will report back once the Senate provides a timeline for further action; the transcript does not record a roll-call tally on the committee vote.
