House Bill 501 Alabama 2026 Session

Summary

Primary Sponsor

Napoleon BracyRepresentative

Democrat

Session

2026 Regular Session

Title

Mobile County; City of Prichard, business improvement districts authorized

Summary

HB501 would let Prichard form self-help business improvement districts funded by local business assessments to pay for district improvements.

What This Bill Does

The bill lets the City Council create districts inside Prichard, adopt a district plan, and levy benefit assessments on businesses within the district to pay for improvements. Establishing a district requires signatures from at least 60% of affected business owners and a public hearing, with protests from more than 50% of owners able to block formation. The district would be run by a business owners' association under contract with the city, collect assessments (often up to 4% of gross revenue or another approved method), and spend the money only on district-approved activities and improvements. It also sets up rules for annual reporting and audits, potential bonds to pay for projects, and processes to renew, modify, dissolve, or dissolve districts and handle any remaining revenues if dissolved.

Who It Affects

• Businesses located within the proposed Prichard district (or those that would be subject to the benefit assessment), who may be required to pay annual assessments and whose approval is part of forming or modifying a district.
• The City of Prichard and the designated business owners' association, which would administer the district, collect assessments, fund improvements, and manage the district plan.

Key Provisions

• Authorized creation of self-help business improvement districts in the City of Prichard and the requirement that district plans, boundaries, and assessments be defined in the authorizing ordinance.
• Benefit assessments may be based on a percentage of gross revenue (capped at 4%) or another approved method; assessments are used only for district-approved activities and improvements and may be raised or reduced per the district plan.
• Formation requires a petition signed by at least 60% of affected business owners; a public hearing is required with notices, and protests by more than 50% of business owners can prevent the district from taking effect.
• Management by a business owners' association under contract with the city, with annual reports, audits, and the possibility to issue bonds to fund improvements; districts can be renewed, modified, dissolved, or dissolved with revenue handling specified.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Mobile County