HB313 Alabama 2021 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Rod Scott
Democrat
Session: Regular Session 2021
Title: Class 1 mun. (Birmingham), business improvement districts, self-help, requirements to estab., amend, expand, and terminate, Secs. 11-54B-5, 11-54B-7, 11-54B-10, 11-54B-19 am'd.
Summary: HB313 updates the rules for creating, expanding, amending, and terminating self-help business improvement districts in Class 1 municipalities (like Birmingham).
What This Bill Does
The bill tightens creation requirements by requiring signatures from owners representing at least two-thirds of the district's total real property value, plus a detailed plan with services, budget, how assessments will be set, a maximum five-year period, and articles/by-laws of the district management corporation. It allows the municipality to designate and maintain a self-help district after a public hearing, with a 60-day effective date and protections that can void the district if enough property owners object. It streamlines amendments by letting the municipality change the district, and sets rules for reducing or expanding the district with specific owner-approval thresholds, description requirements, notice, and public hearings, noting that contiguity is not required. It adds a formal process to review the district after the fifth budget, including notices and potential hearings, and allows termination if a defined group of property owners objects or pays a substantial share of assessments.

Who It Affects
Real property owners inside or within the proposed district: must sign petitions showing substantial ownership, will be subject to special assessments, and can object to creation, expansion, or continuation of the district.
Class 1 municipalities (e.g., Birmingham) and district management corporations: responsible for initiating, approving, contracting with the district management corporation, implementing amendments, and conducting hearings on expansion, reduction, and continuation or termination.

Key Provisions
§11-54B-5: Creation requires signatures of property owners representing at least two-thirds of the district's total fair market value, an accurate district description, and a self-help district plan including services, budget, assessment method, a maximum five-year term, and copies of the district management corporation's articles and by-laws.
§11-54B-7: The municipality may adopt an ordinance to designate and maintain the district after a public hearing; the district is void if enough owners (one-third by number or more) object; the municipality must contract with the district management corporation, ensuring the same level of municipal services as before.
§11-54B-10: Amendments to district ordinances can be initiated by the district or property owners; expansion or reduction requires specific owner signatures (typically two-thirds of FMV for expansion) and detailed descriptions, with notices and a public hearing; contiguity of the district is not required.
§11-54B-19: After the fifth annual budget, the district must hold a hearing to decide continuation, modification, or termination; notices are mailed to owners who paid assessments; petitions from owners paying a substantial share of assessments or representing a substantial number of parcels can trigger a hearing; if enough owners object, the district terminates at the end of the fiscal year following the hearing.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Class 1 Municipalities