HB323 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Mike Hill
Republican
Session: Regular Session 2013
Title: Improvement districts, board of directors further provided for, procedure for assessment of lands within a district, clarified, temporary construction financing authorized, retroactive effect, Sec. 11-99A-52 added; Secs. 11-99A-9, 11-99A-11, 11-99A-13, 11-99A-17, 11-99A-21, 11-99A-30, 11-99A-42, 11-99A-43 am'd.
Summary: HB323 updates the Alabama Improvement District Act to clarify board terms, land assessments and financing, and to validate past districts, with retroactive effect.
What This Bill Does
It clarifies how district boards are formed and how long they serve. It details the process for assessing land within a district for improvements, including required plans, land descriptions, cost estimates, and who must approve the assessment. It strengthens how assessments are collected and used to pay bonds, outlines foreclosure as a remedy for nonpayment, and allows temporary financing for district projects. It adds a new section to validate districts formed in the past and to address deannexation scenarios, and it states that these changes apply to both existing and future law (prospectively and retroactively).

Who It Affects
Landowners within an improvement district, who may be assessed for improvements, subject to consent/election requirements and potential foreclosure if assessments are not paid.
Appointing governments (counties/municipalities) and the district boards, who appoint directors, approve petitions, oversee assessments and hearings, manage bond financing, and enforce collection and foreclosure processes.

Key Provisions
Amends 11-99A-9 to set board size (3-11 members) and staggered initial terms with successors serving 3- or 6-year terms thereafter.
Adds 11-99A-52 to validate past district formations and confirm their status despite past noncompliance, with exceptions for districts already challenged in court.
Amends 11-99A-11 to require plans for improvements, cost estimates, land descriptions, and an assessment method; requires either landowner consent or a vote approving the assessment; requires approvals from the appointing government and allows for hearings.
Amends 11-99A-13 to establish final cost calculations after bids, enable council hearings to confirm assessments or methodologies, and confirm liens; excludes lands used by utilities for electric power.
Amends 11-99A-17 to pledge assessment proceeds to bond payments and direct payment to the board or bondholder trustee.
Amends 11-99A-21 to set foreclosure steps for nonpayment, including 10-day notice, late fees, and options to foreclose or sell the property with specified sale procedures and distribution of proceeds.
Amends 11-99A-30 to allow levying assessments based on front feet, square footage, acreage, or increase in land value, using an approved methodology.
Amends 11-99A-42 to permit reassessment or new assessment under specified conditions (court action, excessive/invalid assessments, or to correct errors).
Amends 11-99A-43 to authorize temporary bonds and other debt to pay district costs, with repayment from revenues and possible assessment anticipation bonds.
Section 3 clarifies that amendments are declarative of existing law and have both prospective and retrospective effect; Section 5 makes the act effective immediately.

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