HB314 By Representatives Martin and Tuggle RFD Economic Development and Tourism Rd 1 18-MAR-15

SYNOPSIS: Under existing law, community development districts may consent to and approve the sale and distribution of alcoholic beverages within the district.

This bill would provide that if a municipality annexes a community development district or if a community development district is incorporated as a municipality, the territory of the community development district remains wet and any remaining portion of the municipality, at the discretion of the governing body of the municipality, shall be wet.

A BILL TO BE ENTITLED AN ACT

To amend Section 35-8B-1, Code of Alabama 1975, as amended by Act 2014-87, 2014 Regular Session, relating to community development districts; to provide that if a community development district is located on navigable waters of a lake that is within a certain district between a man-made dam has at least a certain amount of shoreline, a certain number of private residential houses located in the development and is bordered by a wet county and a dry county, and a wet municipality.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 35-8B-1, Code of Alabama 1975, as amended by Act 2014-87, 2014 Regular Session, is amended to read as follows:

§35-8B-1.

"(a) "Community development district" shall mean a private residential development that: (1) Is a size of at least 250 acres of contiguous land area; (2) has at least 100 residential sites, platted and recorded in the probate office of the county as a residential subdivision; (3) has streets that were or will be built with private funds; (4) has a social club with: (i) an 18-hole golf course of regulation size; (ii) a restaurant or eatery used exclusively for the purpose of preparing and serving meals, with a seating capacity of at least 60 patrons; (iii) social club memberships with at least 100 paid-up members who have paid a membership initiation fee of not less than two hundred fifty dollars ($250) per membership; (iv) membership policies whereby membership is not denied or impacted by an applicant's race, color, creed, religion, or national origin; and (v) a full-time management staff for the social activities of the club, including the management of the premises where food and drink are sold.

"(b) "Community development district" also means privately owned property used for social purposes that: (1) Is a size of at least 250 acres of contiguous land area; (2) is located in a dry county that has one or more wet municipalities, but outside the corporate limits of any municipality; (3) is a social club with: (i) An 18-hole golf course of regulation size; (ii) a marina and boat storage facility with at least 35 spaces; (iii) a clubhouse with more than 20,000 square feet; (iv) a restaurant or eatery used exclusively for the purpose of preparing and serving meals, with a seating capacity of at least 88 patrons; (v) at least 600 paid-up golf or social members who have paid a membership initiation fee of not less than two thousand dollars ($2,000) per family or individual membership; (vi) membership policies whereby membership is not denied or impacted by an applicant's race, color, creed, religion, or national origin; and (vii) a full-time management staff for the social activities of the club, including the management of the premises where food and drink are sold.

"(c) In addition to the limitations specified in Section 35-8B-3, with regard to a community development district defined in subsections (a) and (b) of this section, alcoholic beverages shall be sold only for on-premises consumption, as defined in Section 35-8B-3 (3), and in regard to a community development district defined in subsection (b), alcoholic beverages shall not be sold within 3,000 feet of the south right-of-way of any state or federal highway adjacent to any such district.

"(d) "Community development district" also means a private residential development that may or may not include additional contiguous privately-owned property used for residential, social, commercial, or charitable purposes that: (1) Is the size of at least 650 acres of contiguous land area, but may also contain non-contiguous land if so divided by a public highway which shall be made part of the district per the articles of establishment; (2) is located in a dry county that has one or more wet municipalities, but may be outside the corporate limits of any municipality or within the corporate limits of a municipality; (3) has the following: (i) At least a 9-hole golf course; (ii) an amenity complex to include a fitness center and a swimming pool; (iii) a clubhouse with at least 7,000 square feet; (iv) a restaurant or eatery used for the purpose of preparing and serving meals, with a seating capacity of at least 50 patrons; (v) a recreational lake of at least 30 acres; (vi) at least 200 paid-up golf or club memberships paid initially by either the developer, residential landowners, or commercial entities located within the district at the rate of at least five hundred dollars ($500) per membership provided the developer reserves the right through residential and commercial lease and purchase agreements to require additional membership and initiation fees and further provided the developer has the discretion to restrict use of the golf course to district landowners and guests or at the developer's discretion to extend use of the golf course to the general public subject to fees set and determined by the developer which may differ from fees applicable to residential and commercial lease and purchase agreements; and (vii) membership policies whereby membership is not denied or impacted by an applicant's race, color, religion, or national origin; (4) may include a multi-purpose use entertainment facility with a minimum capacity to accommodate at least 7,500 patrons; and (5) may include commercial establishments. Notwithstanding any other provisions of law, the sale and distribution of alcoholic beverages, including draft or keg beer, by licensees of the Alcoholic Beverage Control Board shall be authorized in a community development district defined under this subsection and Section 35-8B-3 shall not apply.

"(e) "Community development district" also means a commercial district located in a wet county that does not authorize Sunday sales and outside the corporate limits and police jurisdiction of any municipality and which has a restaurant with a seating capacity of at least 120, a grocery-delicatessen, riding stables and riding trails, a community information center, outdoor programming activities, and rural lifestyle demonstrations.

"(f) If a community development district is located in any county, including within any wet or dry municipality located within the county, the county shall participate in the distribution of taxes and license fees pursuant to Chapters 3 and 3A of Title 28.

"(g) Any alcohol revenues received by a county under Act 2007-417 shall offset in an equal amount any T.V.A. in-lieu-of-taxes payments received by the county. Any T.V.A. in-lieu-of-taxes payments replaced by alcohol revenues under this subsection shall be distributed to T.V.A.-served counties.

"(h) If a community development district established prior to June 1, 2014, becomes a new municipality pursuant to Sections 11-41-1 and 11-41-2, the section requiring a vote of the residents of the property described in the petition, the new municipality created thereby shall be wet and the sale and distribution of alcoholic beverages therein shall be authorized to the full extent of any other wet municipality. In addition to the other requirements for incorporating into a municipality set forth in Sections 11-41-1 and 11-41-2, the petition shall provide notice to potential voters that if the new municipality is incorporated it shall be wet.

"(i)(1) "Community Development District" also means a lakeside residential area located on navigable waters of a lake at least 10 miles in length situated between man-made dams and have at least 50 miles of shoreline, which has a development of private homes along the shoreline of at least 100 in number and there must be at least one wet county and one dry county with one or more wet municipalities in that wet county that borders the main body of water.

"(2) Any place of business used primarily for the purpose of preparing and serving meals with a seating of at least 60 patrons in the community development district may sell and serve alcoholic beverages for on-premises consumption only and the place shall have an Alabama alcoholic beverage control license if qualified.

"(j) Any place of business located on a tributary of navigable waters as referenced in subsection (1)(l) that was formally a grist mill that was in use for more than 100 years and has been remodeled for use as a corporate retreat, for weddings, receptions, or as a business for on-premises consumption of food and serving of alcoholic beverages and such place shall have an Alabama alcoholic beverage control license if qualified.

"(k) Community development district also means a community which is incorporated, and which as of the 2010 census is below 700, may by a vote of the governing body declare it is a community development district. Such a community shall be in a dry county and must have at least two municipalities that are wet. In addition, such incorporated community must have several businesses that employ 250 persons total. Such community development district may authorize qualified businesses to sell alcoholic beverages.

"(4) The development established in subsections (i), (j), and (k) do not have to conform to Sections 35-80-2 and 35-80-3."

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Community Development Districts

Alcoholic Beverages

Property, Real and Personal

Business and Commerce

Municipalities

Code Amended