SB166 Alabama 2023 Session

Summary

Primary Sponsor

Sam GivhanSenator

Republican

Session

Regular Session 2023

Title

Relating to municipalities; to add a new Article 3, commencing with Section 11-54B-80 to Title 11, Chapter 54B, Code of Alabama 1975, to provide that Class 3 municipalities may establish self-help business improvement districts.

Summary

SB166 lets Class 3 municipalities create self-help business improvement districts to boost economic growth or tourism, funded by special assessments on property owners or designated businesses.

What This Bill Does

The bill adds a new Article 3 that authorizes Class 3 municipalities to form self-help BID districts. A nonprofit district management corporation will run the district and administer supplemental services funded by special assessments. The process requires an ordinance, a planned district, public hearings, notices to affected owners or businesses, and a budget; it also covers how assessments are set, how funds are used, and annual reporting and audits.

Who It Affects

• Class 3 municipalities (cities) that may form, designate, and manage self-help BID districts, including adopting ordinances and contracts with the district management corporation.
• Property owners (for economic-growth districts) or owners/operators of businesses in a designated class (for tourism districts) who would pay the district's special assessment and receive district services.

Key Provisions

• Class 3 municipalities may form self-help business improvement districts to promote economic growth or increase tourism.
• A district is administered by a nonprofit district management corporation designated by the municipality; the corporation is incorporated under the Alabama Nonprofit Corporation Act and has a board of directors.
• The district plan includes the area, the district management corporation, the special assessment, and a description of supplemental services funded to promote growth or tourism.
• Special assessments are levied on district members to fund supplemental services; methods for fair apportionment are described, with a maximum term of five years for the assessment.
• Delinquent assessments become a lien on the district member’s property or business, with priority over most other liens, and liens remain after private or judicial sales except for certain exclusions.
• Notice and public hearing requirements exist before creating or modifying a district, including mailed notices to property owners or class members and posting notices in public places and on websites.
• Annual budgets and audits are required for the district management corporation, with public hearings and member input; budgets must be approved by the board and are subject to modification procedures.
• The municipality may contract for services with the district management corporation, and the municipality must continue the same level of services in the district as before creation.
• Expansion or reduction of the district area can occur, following a modification process and public hearings, with appropriate notice and documentation.
• If the district terminates, remaining revenues or district assets are used per the district plan or refunded to district members using the same method as the assessment calculation.
• The district management corporation is exempt from state taxes and certain local taxes; the municipality retains police powers and other rights within the district; eminent domain is not granted to the district.

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 and Tourism, provide Business Improvement Districts for Class 3 Municipalities.