SB327 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Chris ElliottSenator
Republican
Session: Regular Session 2024
Title: Capital Improvement Cooperative Districts under Chapter 99B, Title 11, Code of Alabama 1975, amendment of articles of incorporation for new areas, use of funds for construction costs, approval of certain rates and fees
Summary: SB327 lets Capital Improvement Cooperative Districts add new areas and projects, use district funds for construction, and require local government approval of certain charges.
What This Bill Does
The bill allows the district's articles of incorporation to be amended to add new areas and projects (and potentially change the district's name). It authorizes using district funds to pay the construction costs of newly added projects. It also requires that rates, fees, and other charges set by the district be approved by the governing bodies of the member governments if required by the certificate of incorporation. If new members join, the amendment process includes provisions for electing directors from those members and may adjust the board size and voting power, with filings and approvals by the relevant governing bodies.

Who It Affects
Residents, businesses, and property owners within the district who would pay rentals, rates, fees, and deposits for the district's projects.
Counties, municipalities, and public corporations that are or may become district members and who must approve amendments and charges and who may elect directors.

Key Provisions
Amendments to the district's certificate of incorporation to add new areas and new projects, including location details and changes in the district's general description.
If new counties, municipalities, or public corporations join, requirements for electing at least one director from each new member and for adjusting the board size and voting power (potentially based on indebtedness and operating expenses).
After board approval of an amendment, the district must file resolutions with each member's governing body and, for name changes, obtain a Secretary of State certificate and notice from the judge of probate; amendments become effective upon filing.
Authority to use district funds to pay construction costs for newly added projects.
Rates, fees, rentals, and other charges must be approved by the relevant governing bodies when required by the certificate of incorporation.
The district retains broad powers (issuing revenue bonds, operating and maintaining projects, creating reserves, enforcing regulations, and managing revenues) to support projects.
Deposits may be required from users to secure payment of charges and to cover potential damages.

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