SB390 Alabama 2013 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: George M. “Marc” Keahey
Democrat
Session: Regular Session 2013
Title: Community development, alcoholic beverages in annexed territory, Sec. 35-8B-1 am'd.
Summary: SB390 keeps alcohol sales valid in a community development district after annexation or incorporation and broadens how different district types can sell alcohol.
What This Bill Does
If a municipality annexes a community development district (CDD) or a CDD becomes a municipality, the CDD territory stays wet and the remaining part of the city may also be wet at the city’s discretion. The bill defines several CDD types with different alcohol rules, including some that allow only on-premises sales, some with distance restrictions near highways, and some where ABC-licensed sales are fully authorized. It includes tax and revenue provisions for counties related to CDDs and offsets TVA payments with alcohol revenues, and it clarifies that if a new municipality covers an entire CDD, the whole area remains wet. The changes become effective after the governor signs the act (three months after passage).

Who It Affects
Residents and businesses within community development districts, who gain or lose access to alcohol sales depending on the district type and annexation status.
Municipalities and counties, which gain new authority over wet/dry status in annexed or incorporated areas and participate in tax and license-fee distributions tied to CDDs.

Key Provisions
Amends 35-8B-1 to require that a CDD’s territory remains wet if annexed by a municipality or if the CDD is incorporated as a municipality, with the remainder of the municipality potentially wet at the governing body’s discretion.
Creates and defines multiple CDD categories (a–e) with specific alcohol sale rules, including on-premises-only sales for some, distance restrictions for others, and full ABC-Board license authority for certain large districts.
For certain CD definitions, prohibits or restricts alcohol sales near highways (e.g., within 3,000 feet of state or federal highway) and specifies on-premises consumption rules.
If a new municipality includes the entire CDD, the entire area remains wet and sale of alcohol is authorized to the same extent as other wet municipalities.
Requires counties to participate in tax and license-fee distributions related to CD activity and provides revenue offsets between alcohol revenues and TVA in-lieu-of-taxes payments.
Effective date: the first day of the third month after passage and governor’s approval.

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