SB282 Alabama 2023 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2023

Title

Relating to municipalities; to amend Section 11-51-91, Code of Alabama 1975, to further provide for the reporting of certain monies collected outside of their corporate limits and inside their police jurisdiction.

Summary

SB282 slows when municipalities must start reporting outside-corporate-limit revenues inside police jurisdictions and sets licensing caps plus detailed annual reporting requirements.

What This Bill Does

It amends Section 11-51-91 to let municipalities continue collecting outside licenses, but with caps tied to the inside-corporate-limit licenses and the cost of services provided. It requires annual reporting starting in the police jurisdiction (dates indicate a 2022 start) that includes revenues, services provided, and providers, plus police or fire budgets and call data when those services exist. If a municipality fails to file, it cannot collect further outside-license revenues; audits can be ordered; and license responsibilities are allocated to the nearest municipality when multiple municipalities cover the same business location.

Who It Affects

• Municipalities with police jurisdictions outside their corporate limits: face licensing caps, reporting obligations, potential loss of outside revenue for noncompliance, and audit oversight.
• Businesses, trades, or professionals operating within the police jurisdiction outside corporate limits (and residents served by the municipality): subject to outside-license requirements and will gain access to annual reports detailing revenues, services, and providers.

Key Provisions

• Outside-license revenues may not exceed half the amount charged for like business inside corporate limits, and the total outside-license revenue cannot exceed the cost of services provided within the police jurisdiction.
• All outside licenses apply to all businesses within the police jurisdiction; no per-business cost calculation is required so long as total outside revenue does not exceed service costs.
• On/before December 31, 2021, municipalities must notify the Department of Examiners of Public Accounts about outside revenue collection; starting March 1, 2022 (2023 in the text), municipalities must prepare an annual report detailing revenues, taxes/fees, services, and providers, and include police/fire budget and call data if applicable.
• If a municipality fails to file the report within 12 months, it may not collect further license revenue or other taxes/fees in the police jurisdiction outside corporate limits.
• If two or more municipalities levy licenses for a business in the same police jurisdiction, licenses go to the municipality whose boundary is closest to the business.
• The Legislative Committee on Public Accounts can direct audits of municipalities collecting outside-revenue; audit costs are borne by the municipality only if noncompliance is found.
• Act takes effect immediately after governor's approval; existing contracts and certain agreements are not affected.

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

Subjects

Municipalities, delayed the starting point for certain reporting by municipalities