HB416 Alabama 2023 Session

Summary

Primary Sponsor

Kerry UnderwoodRepresentative

Republican

Session

Regular Session 2023

Title

Relating to the City of Florence; to establish a procedure for the establishment, operation, modification, renewal, and dissolution of tourism improvement districts.

Summary

HB416 creates a formal process for Florence to establish Tourism Improvement Districts funded by business assessments to support tourism-related improvements.

What This Bill Does

It allows the City of Florence to form tourism improvement districts within its limits after a petition from at least 60% of affected business owners. Each district must have a plan with boundaries, eligible business types, and an assessment method (maximum 4% of gross revenue if based on revenue) to fund activities and improvements. A business owners' association would manage the funds, implement the plan, and provide annual reports and audits; districts can be renewed or dissolved through public hearings and protests. The city may issue bonds to finance improvements, and assessments are collected and used only for district purposes.

Who It Affects

• Businesses located in Florence that would be subject to the district’s benefit assessment and would participate through a business owners’ association.
• The City of Florence and the local community, which would oversee district formation/renewal/dissolution, collect and allocate assessments, finance improvements (including bonds), and benefit from tourism-related projects.

Key Provisions

• The City of Florence may establish, renew, modify, or dissolve tourism improvement districts via an authorizing ordinance after petitions and public hearings.
• Petition requirements include signatures from at least 60% of affected business owners and a summary plan with district boundaries, eligible business types, and an assessment rate (not to exceed 4% of gross revenue for revenue-based assessments).
• A business owners' association will administer the district, manage funds, fund activities and improvements, and provide annual reports and audits; revenues must be used only for the district plan.
• Assessments may last up to 10 years (bonded districts may extend for the bond term); bonds can be issued to finance improvements, and assessments may be pledged to secure bonds; multiple districts may consolidate to issue a single bond.
• Public hearings and notices are required; protests from more than 50% of affected business owners can block the district’s establishment or funding changes.
• Dissolution or renewal of a district involves formal procedures, including notices and hearings; remaining revenues or assets are disposed of or refunded according to the plan, and the district can be renewed under the same framework.

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

Subjects

City of Florence, establish a tourism improvement district