Senate Bill 91 Alabama 2026 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

2026 Regular Session

Title

County and municipal authorities; withdrawal from multi-jurisdiction authority authorized, taxes and distribution of monies from taxes further provided for

Summary

SB91 would allow counties or municipalities to withdraw from multijurisdiction authorities if there is no outstanding debt, create a local successor, control funds and tax rates, and require the authority to share funds with the withdrawing entity.

What This Bill Does

If enacted, a county or municipality that participates in a multijurisdiction authority can withdraw unilaterally by resolution if there is no outstanding debt. After withdrawal, the governing body may establish a local entity to perform similar functions, decide how funds within its territory are used, and adjust the tax rate tied to the authority by up to two percentage points (up or down). The multijurisdiction authority must remit a portion of its unencumbered funds to the withdrawing entity proportionate to that territory’s share of total funding.

Who It Affects

• Counties and municipalities that participate in multijurisdiction authorities: could withdraw unilaterally (if debt-free), form a local successor, and control fund use and tax rate changes for their area.
• Multijurisdiction authorities and their governing bodies: would lose participating funding from the withdrawing entity and must remit a proportional share of unencumbered funds to the withdrawing entity; overall revenue and governance could be affected.

Key Provisions

• Defines multijurisdiction authority and sets withdrawal conditions (no outstanding debt).
• Authorizes unilateral withdrawal by resolution and allows the withdrawal entity to establish a successor entity to perform similar functions.
• Permits redistribution of funds and allows increasing or decreasing the tax rate by up to 2 percentage points for the withdrawing territory.
• Requires the authority to remit a proportionate share of unencumbered funds to the withdrawing entity based on the withdrawing territory’s funding share.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities