SB112 Alabama 2019 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Vivian Davis FiguresSenator
Democrat
Session: Regular Session 2019
Title: Class 2 municipalities, business improvement districts, levy on class of businesses for promotion of tourism, including for room levy, procedures for establishment, expansion or reduction of other business improvement districts, Secs. 11-54B-40, 11-54B-41, 11-54B-43 to 11-54B-50, inclusive, 11-54B-57, 11-54B-58 am'd.
Summary: Class 2 municipalities can create self-help business improvement districts to promote tourism and economic growth through nonprofit district management corporations and targeted special assessments.
What This Bill Does
The bill allows Class 2 municipalities to create self-help business improvement districts (BIDs) to promote tourism and local business. It requires form a nonprofit district management corporation to run the district and imposes a special assessment on property owners or a designated class of businesses to pay for additional services. It also sets rules for how the district is formed, funded, governed, expanded or reduced, dissolved, and reviewed, including annual reports and audits, plus a sunset review after five budgets.

Who It Affects
Owners of nonexempt real property within the proposed district, who must sign the formation petition and would pay the special assessment to fund supplemental services (with liens on property for nonpayment, subject to exemptions).
Owners of businesses that are part of a designated class (for tourism-focused districts), who may pay assessments based on activity, gross revenue, or a per-room/occupancy basis and who are represented in district governance.

Key Provisions
Allows Class 2 municipalities to designate self-help BID areas and appoint a nonprofit district management corporation to provide administrative and other services.
Imposes a special assessment to fund supplemental district services, collected from nonexempt real property owners or from designated class of businesses; exemptions include single-family owner-occupied homes and most utility property.
Sets eligibility, signatures, and plan requirements (area description, budget, assessment method, duration up to five years) for forming a district; requires public hearings before an ordinance.
Creates governance rules for the district management corporation (board structure, annual reports, audits, city-municipality contract, enforcement of budgets) and provides tax exemptions for the nonprofit corporation.
Provides for expansion, reduction, dissolution, and continuation decisions with notice, signatures, and hearings; allows dissolution or continuation after a sunset review following the fifth annual budget.
Lien and collection rules give the special assessment a priority lien on property (with specified exceptions) and mandate collection through district or municipal offices.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Class 2 Municipalities