SB501 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Tammy Irons
Democrat
Co-Sponsors: William “Bill” M. Beasley Cam Ward Del Marsh Quinton Ross Roger Bedford, Jr.George M. “Marc” Keahey Jerry L. Fielding
Session: Regular Session 2012
Title: Commercial development authorities, formation, requirement that incorporator be a natural person or qualified elector remove; Secs. 11-54-171, 11-54-173, 11-54-174, 11-54-178, 11-54-190 am'd
Summary: SB501 broadens who can form a commercial development authority by allowing LLCs or partnerships to be involved and by relaxing the requirement that incorporators be individual Electors.
What This Bill Does
The bill redefines 'person' to include limited liability companies and partnerships for forming a commercial development authority. It removes the rule that an authority must be formed by at least three natural persons and eliminates the requirement that incorporators be qualified electors of the municipality where the authority is formed. This changes who can participate in forming these authorities and could allow more non-individual entities to take part in the process.

Who It Affects
Limited liability companies and partnerships would be eligible to participate as incorporators in forming a commercial development authority.
Individual residents and potential incorporators who previously needed to be part of at least three qualified electors would no longer be bound by that specific requirement, altering who can initiate authority formation.

Key Provisions
Defines 'person' to include a limited liability company or a partnership for purposes of forming a commercial development authority.
Eliminates the requirement that the authority be formed by not less than three natural persons.
Eliminates the requirement that an incorporator be a qualified elector of the municipality where the authority is being formed.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Public Authorities