SB328 Alabama 2024 Session

Updated Feb 23, 2026

High Interest

Summary

Primary Sponsor: J.T. WaggonerSenator
Republican
Session: Regular Session 2024
Title: Community development districts, additional criteria for establishment of district on impounded reservoir created by river from wilderness area, sale of alcoholic beverages authorized
Summary: SB328 broadens Alabama’s community development districts and allows alcohol sales inside those districts once formed, subject to local rules and voter approval.
What This Bill Does
Creates an expanded category of community development districts (CDDs) that meet specific size and facility criteria and, once formed, permits the sale of alcohol within the district. Alcohol sales would be licensed through the Alabama Alcoholic Beverage Control Board and taxed at the county liquor tax rate with distribution to the county per existing law. The bill requires a referendum (municipal if the district is inside a city, otherwise county-wide) to authorize alcohol sales, with election costs paid by the local government; if the referendum fails, no new petition may be filed for 12 months. It imposes on-premises consumption, distance restrictions from highways, and limits on the number of restaurant licenses per district, while allowing district-specific entertainment districts and associated licensing rules. The act takes effect July 1, 2024.

Who It Affects
Private developers and property owners who might form new or expanded community development districts.
Residents and property owners living in or near the proposed or existing CD districts.
Club members, golf course operators, marina owners, hotel/restaurants, and other businesses operating within a CD district.
County and municipal governments responsible for district formation, elections, and tax revenue distribution.
The Alabama Alcoholic Beverage Control Board and licensees within districts (clubs, restaurants, entertainment venues).

Key Provisions
Adds an additional category of community development district defined by specific size and facility criteria (e.g., 250+ acres, residences, private streets, a social club with an 18-hole golf course, restaurant, and membership structures).
Authorizes the sale of alcoholic beverages within the district after district board consent and ABC Board licensing, with on-premises consumption and tax treatment at the county liquor tax rate, distributed per 35-8B-5.
Requires a restaurant license and local business license for the restaurant within the district; restricts to one restaurant license per district.
Establishes a referendum process to authorize alcohol sales (municipal if the district is within a city; county-wide otherwise), sets election timing and costs, and prohibits a new petition for 12 months if the referendum fails.
Imposes practical restrictions and possibilities, including on-premises consumption within entertainment districts and potential open-container allowances within those districts, with local regulatory oversight.
Defines various district types (residential, commercial, resort, etc.) and accompanying requirements (e.g., location rules, highways proximity, and ownership structures) to qualify for alcohol sales within a CD district.
Effective date: July 1, 2024.

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