HB578 Alabama 2012 Session

Summary

Primary Sponsor

Mark Tuggle

Republican

Session

Regular Session 2012

Title

Community Development, additional class of community development district, established, incorporation and powers of districts, Secs. 35-8B-1, 35-8B2, 35-8B-3 am'd

Summary

HB578 adds a new class of community development districts in Alabama, expands how districts can be formed and governed, and changes rules for alcohol sales within those districts.

What This Bill Does

The bill creates additional district types with specific size and amenity requirements (ranging from 250 to 650+ acres and including golf, clubs, marinas, and other facilities). It establishes how districts are formed, including consent from property owners, boundary descriptions, district layouts, and initial board composition, with associated filing and establishment fees. It also modifies alcohol sale rules within certain districts, allowing on-site consumption by members and guests, with varying restrictions and approvals (including potential Sunday sales in some cases) and waiving some existing limits for districts defined under the new provisions. It requires counties to participate in tax and license fee distributions and aligns alcohol revenue handling with TVA-related provisions, with immediate effect upon passage.

Who It Affects

• Private developers and property owners who want to create new community development districts, including those meeting the 250+ acre or 650+ acre thresholds and the associated amenity requirements.
• Club members, residents, and businesses within the districts who will use district facilities (golf, marinas, clubs, restaurants) and pay membership fees.
• Counties and municipalities, which will participate in tax and license fee distributions and may receive or offset certain alcohol-related revenues and probate fees.
• Alcohol licensees and patrons within the districts, who may obtain on-premises alcohol sales through district clubs or facilities, subject to board approvals and district-specific rules (including Sunday sales in some cases and distance restrictions in others).

Key Provisions

• Defines an additional class of community development district with several subtypes: (a) private residential developments of at least 250 acres with 100+ residential sites, private streets, and a social club with an 18-hole golf course, restaurant, and at least 100 paid members; (b) privately owned social districts in dry counties with wet municipalities featuring a golf course, marina, large clubhouse, restaurant, and at least 600 paid-up members, plus non-discriminatory membership policies and a full-time management staff; (d) larger districts (at least 650 acres) with multiple amenities including a golf course, fitness center, lake, and a significant initial membership pool, with potential for developer-controlled access to the golf course; (e) commercial districts in wet counties with specified facilities.
• Provides alcohol sale rules: for districts defined in (a) and (b), alcohol may be sold for on-premises consumption to members and guests via a club liquor license; Sundays sales may be allowed in districts where the board of control approves; in specific (d) districts, alcohol sales may be authorized without the usual restrictions.
• Outlines establishment and filing procedures: articles of establishment must be filed with the probate judge, including owner consent (51% of property), boundary descriptions, district layout, district name and address, and initial Board of Control members; sets required financial and administrative details and specifies filing fees payable to the appropriate local government entity; establishes ongoing financial provisions and fee schedules.
• Implements fiscal and governance provisions: requires counties to participate in tax and license fee distributions for districts; aligns alcohol revenue handling with TVA-related payments; and details the administrative framework for districts created under these amendments.
• Effective date: the act becomes effective immediately upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Community Development Districts