Alabama House Bill HB318

Alabama 2023 Regular Session

• Introduced: 4/13/23
• Refer: 4/13/23
• Report Pass: 4/26/23

Caption

Relating to municipalities; to add a new Article 3, commencing with Section 11-54B-80 to Title 11, Chapter 54B, Code of Alabama 1975, to provide that Class 3 municipalities may establish self-help business improvement districts.

Impact

This legislation aims to stimulate local economies by allowing Class 3 municipalities to levy special assessments on property owners and businesses, which will fund supplemental services for promoting business growth. The municipality will oversee a nonprofit management corporation that will be responsible for facilitating these services, which could include marketing, sanitation, security, and event organization. By equipping Class 3 municipalities with these powers, the state aims to revitalize struggling business districts and improve the overall urban landscape.

Summary

House Bill 318 introduces provisions for the creation of self-help business improvement districts in Alabama's Class 3 municipalities. The bill seeks to empower these municipalities to establish districts designed to enhance economic development and tourism. Unlike existing laws that limit such districts to Class 1 and Class 2 municipalities, HB 318 broadens this capability, thereby encouraging Class 3 municipalities to actively participate in improving their local economies and tourism potential by engaging business entities within a specified area.

Contention

The bill may face opposition related to funding mechanisms and tax implications for property owners and business operators in these newly established districts. The introduction of special assessments could be viewed unfavorably by some stakeholders who may argue that there is a lack of accountability in how these funds are utilized. Additionally, the need for public hearings and the process for modifying district parameters might also engender debate, especially regarding who decides on changes and how effectively constituents' voices are represented in these matters.