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

Allows counties or municipalities to withdraw from a multijurisdiction authority, create a local successor if desired, and reallocate or share funds and taxes tied to the authority.

What This Bill Does

The bill lets a county or municipality withdraw from a multijurisdiction authority if there is no outstanding debt. After withdrawal, the withdrawing locality can establish a local entity within its borders that can perform similar functions and borrow money or issue revenue bonds, or direct how funds previously distributed to the authority are used. The multijurisdiction authority must remit to the withdrawing locality a portion of its unencumbered funds proportional to the withdrawing area's share of total funding. The authority may still borrow money and issue revenue bonds, and the act allows adjustments to tax rates collected in conjunction with the authority; the law takes effect immediately.

Who It Affects

• Counties or municipalities that are part of a multijurisdiction authority: may withdraw, form a local successor, and reallocate funds or tax arrangements.
• Multijurisdiction authorities and their remaining member jurisdictions: must remit funds to withdrawing entities and continue to have borrowing power.
• Taxpayers and local residents in withdrawing areas: potential changes to local taxes tied to the authority.
• New or existing local successor entities created by withdrawing jurisdictions: gain borrowing powers to operate local functions.

Key Provisions

• Defines 'multijurisdiction authority' as a state-created entity operating in more than one county or municipality for economic development with representation from multiple jurisdictions.
• Authorizes unilateral withdrawal by a county or municipality if the authority has no outstanding debt.
• After withdrawal, allows the withdrawing jurisdiction to establish a local entity with borrowing power or to determine the use/distribution of funds previously distributed to the authority.
• Requires the multijurisdiction authority to remit to the withdrawing locality a share of its unencumbered funds corresponding to that locality's funding share.
• Gives the multijurisdiction authority continued borrowing and revenue bond powers after withdrawal.
• Authorizes adjustments to the rate of any tax collected in conjunction with the authority.
• Effective immediately.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 18, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities