SB 166 — 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.
Last action — Enacted as 2023-253
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced April 04, 2023. Enacted.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 R).
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Cleared a recorded vote
Passed 3 recorded votes so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Summary
Economic Development and Tourism, provide Business Improvement Districts for Class 3 Municipalities.
Bill Text
What changed in the latest version
709 added · 709 removedPlain-language change summary
The updated version of Bill SB 166 now allows Class 3 municipalities in Alabama to establish self-help business improvement districts. Previously, only Class 1 and Class 2 municipalities could create these districts, which are aimed at boosting economic growth and supporting local businesses. This change is significant because it expands the potential for economic development in smaller communities, helping them improve their business districts and attract more visitors. By including Class 3 municipalities, the bill aims to address the needs of more towns across the state, ultimately benefiting the local economy.
SB166 ENGROSSEDENROLLED RBD1YN-2RBD1YN-3 By Senator Givhan RFD:
04-Apr-23 2023 Regular Session Page 0 SB166 EngrossedEnrolled 2Enrolled, 4An AAct, BILL3 TO BE ENTITLED AN ACT 9 Relating to municipalities;
(3) The public interest would also be advanced by Page 1 SB166 Engrossed authorizing the creation of self-help business improvement districts to assist any Class 3 municipality to increase tourism with the support of businesses of a particular class.
(4) A district management corporation representing real property owners, or in certain cases, owners of a particular class of business, within self-help business improvement Page 1 SB166 Enrolled districts can assist any Class 3 municipality in promoting economic growth and employment or tourism by funding supplemental business services through the levy of assessments on real property owners or owners of a particular class of business.
In the case of a self-help business Page 2 SB166 Engrossed improvement district formed to promote economic growth, the geographical area or areas comprising the parcels of real property designated to be located within the district, regardless of whether the individual parcels are subject to the special assessment.
An entity created Page 2 SB166 Enrolled by incorporation under the Alabama Nonprofit Corporation Act, Chapter 3 of Title 10A, and designated by ordinance by the municipality to administer and provide services to a self-help business improvement district.
An area within the municipality designated by ordinance in which a special assessment may be levied on the Page 3 SB166 Engrossed owners of real property located within the area to provide supplemental services in order to promote the economic growth of the district or, alternatively, an area or areas designated by ordinance in which a special assessment may be levied on businesses of a particular class located within the area or areas to provide supplemental services in order to increase Page 3 SB166 Enrolled tourism in the municipality.
§11-54B-82 A municipality, by ordinance, may provide for the creation and maintenance of one or more self-help business 95 improvement districts pursuant to this article.
§11-54B-83 A public hearing on the adoption of an ordinance 95 creating a self-help business improvement district may be called only if the governing body of a municipality finds all of the following:
(3) That the self-help business improvement district plan includes a designated district management corporation to Page 4 SB166 Engrossed provide administrative and other services to benefit businesses, properties, employees, residents, and consumers in the self-help business improvement district.
(4) That the self-help business improvement district plan includes a special assessment that will be levied by the municipality on the district members to finance the Page 4 SB166 Enrolled supplemental services described in the plan, and that the assessment is expected to produce revenue that is consistent with the annual budget adopted and approved as provided in this article.
(1) In the case of a district formed to promote economic growth within the municipality, the signatures of the owners of real property comprising at least 60 percent of the total fair market value of all real property located within the proposed district and the signatures of owners owning at Page 5 SB166 Engrossed least 50 percent of parcels of real property within the proposed district or, in the case of a district formed to increase tourism, the signatures of the owners or operators of the businesses in a particular class who would pay at least 60 percent of the total amount of the self-help improvement district special assessment to be levied and the signatures of Page 5 SB166 Enrolled the owners of at least 50 percent of the number of the businesses in a particular class located within the proposed district, in accordance with the following requirements:
Page 6 SB166 Engrossed (2) Copies of the self-help business improvement district plan, which shall include all of the following:
A budget outlining the annual cost of the Page 6 SB166 Enrolled supplemental services described in paragraph a.
shall be Page 7 SB166 Engrossed levied.
§11-54B-85 Page 7 SB166 Enrolled (a)(1) At least 20 days prior to the date set for a public hearing on the proposed self-help business improvement district plan, notice of the date, time, and place of the hearing, with a description of the area proposed to be included in the district, the proposed ordinance, and the self-help business improvement district plan shall be mailed to all prospective district members.
(c) An owner of real property or a business owner in the particular class may not contest the validity of a self-help business improvement district established by Page 8 SB166 Engrossed ordinance on the grounds that he or she did not receive a copy of the notice.
§11-54B-86 (a) The governing body of the municipality, upon review of the self-help business improvement district plan and after public hearing, by ordinance, may designate, establish, and Page 8 SB166 Enrolled maintain the area described in the plan as a self-help business improvement district.
(5) A summary of the proposed supplemental services to Page 9 SB166 Engrossed promote economic growth or increase tourism, which shall be funded by a levy of a special assessment on the district members.
(6) An adequate description of the method used to determine the special assessment, including different assessment rates if applicable, and how the burden of the Page 9 SB166 Enrolled special assessment is equitably apportioned among district members.
Page 10 SB166 Engrossed (2) A statement that except for foreclosures for state, county, or municipal taxes, a prior special assessment, or a prior recorded mortgage, deed of trust, or similar security instrument, the lien for the special assessment shall not be defeated or postponed by any private or judicial sale, or by any mortgage, deed of trust, or similar security instrument Page 10 SB166 Enrolled recorded after the date of final adoption by the municipality of the self-help business improvement district ordinance.
(b) The resolution of the board of directors of the Page 11 SB166 Engrossed district management corporation pursuant to subsection (a) shall include a request to the governing body of the municipality to approve the proposed modification to the district plan and shall be transmitted to the governing body for consideration at a public hearing.
(c)(1) At least 20 days prior to the date set for a Page 11 SB166 Enrolled public hearing on the proposed modification of the self-help business improvement district ordinance, notice of the date, time, and place of the hearing shall be mailed to all district members.
Where a request for expansion is sought under Page 12 SB166 Engrossed this subsection, the request shall contain the signatures of the owners of real property located in the area to be added to the district consistent with the signatures required under Section 11-54B-84(1).
The county property tax records of the assessor or the revenue commissioner shall determine ownership of the Page 12 SB166 Enrolled property and the fair market value.
Page 13 SB166 Engrossed b.
An owner of real property may not contest the validity of the reduction or expansion of the district on the Page 13 SB166 Enrolled grounds that he or she did not received a copy of the notice.
Page 14 SB166 Engrossed (b) To qualify for designation by ordinance to manage a self-help business improvement district, the articles of incorporation of a proposed district management corporation shall provide all of the following:
(1) A board of directors, numbering no fewer than three and no more than 13, shall manage the property, business, and Page 14 SB166 Enrolled affairs of the corporation.
Page 15 SB166 Engrossed (8) Vacancies on the board of directors resulting from death, resignation, or removal shall be filled by the remaining members of the board of directors for the unexpired portion of the term.
(9) At least once a year after creation of the district, the corporation shall hold a general membership and Page 15 SB166 Enrolled public meeting appropriately advertised in at least three public places within the district area and on the district's website.
(14) Upon dissolution, or upon any withdrawal of the designation as the district management corporation, all interests in and title to funds held by or for the corporation, and all property of the corporation shall be transferred and assigned to a successor district management Page 16 SB166 Engrossed corporation, or if no successor district management corporation exists, to the general fund of the municipality for use in funding the programs as the board of directors of the district management corporation shall direct and designate.
(c) The district management corporation may do all Page 16 SB166 Enrolled things necessary to implement its purposes, including, but not limited to, the following:
Page 17 SB166 Engrossed (8) Provide security, sanitation, and other services to the district supplemental to those provided by the municipality.
(10) Recruit new businesses to fill vacancies in the Page 17 SB166 Enrolled district.
Page 18 SB166 Engrossed (b) The budget shall be introduced, approved, amended, and adopted by resolution passed by not less than a majority of the full membership of the board of directors by the procedure as follows:
Page 18 SB166 Enrolled (2) Public advertising of the budget.
(3) Increases the amount needed to be raised by special assessment by more than 20 percent of the total special Page 19 SB166 Engrossed assessment revenues stated in the approved budget.
Page 19 SB166 Enrolled §11-54B-92 No self-help business improvement district or district management corporation shall have the power of eminent domain.
§11-54B-94 A municipality, by ordinance, may authorize the district management corporation to contract construction and maintenance work to be done on any street or on other municipal property included in the self-help business improvement district, provided that the plans and specifications of any construction work to be contracted shall Page 20 SB166 Engrossed be approved by the municipal engineer prior to initiation of any actions for the awarding of a contract under this article.
Show all 52 changed lines (12 more)
§11-54B-95 This article shall not prohibit a municipality from including a self-help business improvement district within the bounds of any area, district, or zone, including any Page 20 SB166 Enrolled enterprise zone established pursuant to law which has as one of its purposes the encouragement of the construction of improvements or the rehabilitation of properties located within those boundaries, or the inducement of private enterprises to locate within those boundaries, whether by tax credits, exemptions, or abatements, or by special public financing arrangements.
In the case of a district whose purpose is to increase tourism, a list of the businesses in the designated Page 21 SB166 Engrossed class that are currently operating within the district.
(b)(1) The district management corporation shall have its books, accounts, and financial transactions annually Page 21 SB166 Enrolled audited by a certified public accountant.
(2) At least 20 days before the hearing, notice of the date, time, and place of the hearing shall be posted in at Page 22 SB166 Engrossed least three public places within the district, on the websites of the municipality and the district, and mailed to each district member.
(3) At or immediately after the hearing, the board of directors shall adopt a resolution requesting the governing body of the municipality to adopt an ordinance providing for Page 22 SB166 Enrolled one of the following:
Page 23 SB166 Engrossed (b) The governing body of the municipality shall adopt an ordinance ratifying the board of directors' resolution pursuant to subdivision (a)(4), to take effect at the end of the current fiscal year, to continue, modify, or terminate the district.
(c) In the event of termination of the district, any Page 23 SB166 Enrolled remaining revenues, after all outstanding debts are paid, derived from the collection of the special assessment or derived from the sale of district assets acquired with the revenues shall be spent as near as possible in accordance with the district plan or shall be refunded to district members who paid the special assessment by applying the same method that was used to calculate the assessment in the last fiscal year for which the special assessment was collected.
Page 24 SB166 EngrossedEnrolled Senate________________________________________________ ReadPresident forand thePresiding firstOfficer timeof andthe referredSenate ................04-Apr-23________________________________________________ toSpeaker of the SenateHouse committeeof onRepresentatives FiscalSB166 ResponsibilitySenate and27-Apr-23 EconomicI Developmenthereby Readcertify forthat the secondwithin timeAct andoriginated placedin ................19-Apr-23and onpassed the calendar:Senate, as amended.
amendments Read for the third time and passed ................27-Apr-23 as amended Yeas 29 Nays 0 Abstains 0 Patrick Harris, Secretary.
PageHouse 25of Representatives Passed:
16-May-23 By:
Senator Givhan Page 25
Show all 52 changed rows (12 more)
Amendments
1 amendmentClick Show changes on an amendment above to see how it modifies the bill.
Action History
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Enrolled
Sponsors
- Sam Givhan · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 139 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (139)
139 members have not signed on to this bill.
Show all 139 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 5 | 0 | 0 | 0 |
| R | 69 | 0 | 0 | 2 |
| D | 26 | 0 | 0 | 0 |
| Total | 100 | 0 | 0 | 2 |
| % of votes cast | 98% | 0% | 0% | 2% |
How each member voted (102)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 21 | 0 | 0 | 4 |
| D | 6 | 0 | 0 | 2 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 28 | 0 | 0 | 6 |
| % of votes cast | 82% | 0% | 0% | 18% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Yea |
| Kirk Hatcher | D | Not Voting |
| Linda Coleman-Madison | D | Yea |
| Merika Coleman | D | Yea |
| Robert Stewart | D | Yea |
| Rodger M. Smitherman | D | Yea |
| Vivian Davis Figures | D | Not Voting |
| William M. Beasley | D | Yea |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Yea |
| Clyde Chambliss | R | Not Voting |
| Dan Roberts | R | Yea |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Not Voting |
| Garlan Gudger | R | Not Voting |
| Gerald H. Allen | R | Yea |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Yea |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Not Voting |
| Larry Stutts | R | Yea |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Yea |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 21 | 0 | 0 | 4 |
| D | 6 | 0 | 0 | 2 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 28 | 0 | 0 | 6 |
| % of votes cast | 82% | 0% | 0% | 18% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Yea |
| Kirk Hatcher | D | Not Voting |
| Linda Coleman-Madison | D | Yea |
| Merika Coleman | D | Yea |
| Robert Stewart | D | Yea |
| Rodger M. Smitherman | D | Yea |
| Vivian Davis Figures | D | Not Voting |
| William M. Beasley | D | Yea |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Yea |
| Clyde Chambliss | R | Not Voting |
| Dan Roberts | R | Yea |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Not Voting |
| Garlan Gudger | R | Not Voting |
| Gerald H. Allen | R | Yea |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Yea |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Not Voting |
| Larry Stutts | R | Yea |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Yea |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
Subjects
Frequently asked questions
- What does SB 166 do?
- Economic Development and Tourism, provide Business Improvement Districts for Class 3 Municipalities.
- Who sponsors SB 166?
- SB 166 is sponsored by Sam Givhan (R).
- What is the current status of SB 166?
- This bill has been enacted into law. Introduced April 04, 2023. Enacted.
- Where can I track SB 166?
- Track SB 166 free on One Click Politics — get push/email alerts when it moves.
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