HB382 Alabama 2020 Session

Summary

Primary Sponsor

Lynn Greer

Republican

Session

Regular Session 2020

Title

Economic development, establishing a procedure for the establishment, operation, modification, renewal, and disestablishment of tourism improvement district within the state by counties and municipalities, Alabama Tourism Improvement Act of 2020.

Summary

HB382 creates a framework for counties and municipalities in Alabama to form Tourism Improvement Districts funded by business assessments to support tourism-related improvements.

What This Bill Does

HB382 would establish a formal process to create, operate, modify, renew, or disestablish Tourism Improvement Districts (TIDs) across Alabama. Each district is governed by a board of local business owners and funded by assessments on businesses within the district, with the money used for district-approved improvements. It sets requirements for district plans (maps, boundaries, eligible business types, funding methods, and duration) and the petition/hearing process to form or renew a district, including protections like possible protests and limits on how plans can be changed. It also covers renewal, disestablishment, baseline funding considerations, reporting, and how any remaining funds or assets should be handled.

Who It Affects

• Businesses located within a tourism improvement district would pay assessments that fund district activities and improvements.
• Counties and municipalities that authorize and oversee districts; they decide whether to form districts and levy assessments, and must follow public hearing and protest rules.
• The business owners' association (a nonprofit or similar group) would run the district, with a board mostly composed of district business owners or their representatives and a committee to manage funds and implement activities.

Key Provisions

• Establishes Tourism Improvement Districts in counties and municipalities, possibly extending beyond city boundaries and enabling cross-jurisdiction districts.
• Requires the district to be governed by a board of local business owners; a business owners' association administers funds and selects activities within the district plan.
• Allows the governing body to levy assessments on district businesses, with proceeds used only for activities and improvements described in the district plan.
• Requires a district plan to include a map, district name, participating business types, assessment method, anticipated annual spending, financing sources, collection timing, duration (up to 10 years for new districts, up to 20 for renewals), and governance rules.
• Outlines formation process: petition by business owners paying majority of proposed assessments (>50%), notice and a public hearing, and protest rights; assessments may be modified only by reductions or boundary exclusions.
• Provides renewal and disestablishment rules, including handling of remaining revenues/assets and conditions for disestablishment (no debt, misappropriation or legal violations).
• Requires baseline service certification to ensure the district supplements, not replaces, existing funding and services.
• Requires annual reporting by the business owners' association with details on activities, costs, and how assessments are set.
• Defines dispute and appeal timelines, including a 30-day window to challenge the assessment after the authorizing resolution.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Economic Development