SB322 Alabama 2025 Session

Updated Feb 23, 2026

Summary

Primary Sponsor: J.T. WaggonerSenator
Republican
Session: 2025 Regular Session
Title: Community development districts, annexation of a district into a municipality authorized
Summary: SB322 allows certain types of community development districts to be annexed by wet municipalities in the county and updates how those districts are created and governed.
What This Bill Does
The bill lets a wet municipality in the county annex a specified type of community development district after the district board petitions and the municipality approves. It tightens and clarifies what must be included in the district's articles of establishment, including consent from property owners, boundary descriptions, and how the district's board is chosen (with some districts using club member elections). It also sets rules for alcohol sales and tax distribution within these districts, preserves county environmental services, and requires a plat to be provided to the county probate judge at least 30 days before annexation approval. Annexation must begin by June 1, 2026, and the act becomes effective October 1, 2025, with restrictions such as a prohibition on casino use inside the district.

Who It Affects
Owners and boards of qualifying community development districts, who may petition for annexation and must meet new establishment requirements and governance provisions.
Wet municipalities in the county and the county government (including the judge of probate and county officials) that would approve annexations, regulate districts, and share in tax and license fee distributions.

Key Provisions
Authorizes annexation of a certain type of community development district by a wet municipality in the district's county upon petition by the district board and approval by the municipality; requires a plat or map to be given to the judge of probate at least 30 days before approval.
Updates articles of establishment for these districts, including at least 51 percent ownership consent or control, boundary description, schematic layout, district name and office, and initial board; for some districts, initial board members are elected by club members.
Allows certain districts to have on site alcohol sales with licensees under the Alcoholic Beverage Control Board, sets tax distribution to match the largest municipality in the county, and makes related provisions to alcohol regulation and licensing.
Requires the county to participate in tax and license fee distributions under Title 28, and outlines how alcohol revenues interact with TVA in lieu of taxes payments.
Prohibits casino or gambling uses within annexed districts; preserves county environmental service responsibilities; clarifies that annexation may occur without contiguity between the district and the annexing municipality.
Effective date is October 1, 2025, with annexations required to commence by June 1, 2026.

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