The bill SB322 amends Sections 35-8B-1 and 35-8B-2 of the Code of Alabama 1975 to facilitate the annexation of community development districts by wet municipalities within the same county. It introduces new definitions and criteria for various types of community development districts, including private residential and commercial developments, with specific requirements regarding size, amenities, and membership policies that prohibit discrimination. The bill allows for features such as golf courses, marinas, and restaurants within these districts and establishes that the sale of alcoholic beverages will be taxed at the same rate as in the largest municipality in the county, while also imposing restrictions on where these beverages can be sold.

Key insertions in the bill include provisions that allow for annexation without the requirement of contiguity between the district and the municipality, contingent upon a petition from the district's board and approval from the municipality's governing body. The bill mandates that any annexation must begin by June 1, 2026, and prohibits the use of the property for casino or gambling activities. It also outlines the requirements for the articles of establishment for community development districts, including necessary documentation and governance structures. The act is set to take effect on October 1, 2025, reflecting a commitment to modernizing legal statutes to better serve community needs while eliminating unnecessary complexities.

Statutes affected:
Introduced: 35-8B-1, 35-8B-2
Engrossed: 35-8B-1, 35-8B-2
Enrolled: 35-8B-1, 35-8B-2