AN ACT FOR THE DEPARTMENT OF COMMERCE - STATE INSURANCE DEPARTMENT APPROPRIATION FOR THE 2025-2026 FISCAL YEAR.

2025 Regular Session

Senate Bill 25 allocates sales tax from alcoholic beverages in Alabama to grants for education, civic activities, and tourism, guided by local legislators' recommendations.

Notification that SB25 is now Act 607

Purpose and Intent

Senate Bill 25 (SB 25) aims to amend the distribution process of sales tax proceeds collected from alcoholic beverage sales within community development districts in Alabama. The bill is designed to ensure that these funds are allocated as grants to support various community initiatives, with the distribution based on legislative representation.

Key Provisions

Grant Distribution: The bill mandates that proceeds from the sales tax on alcoholic beverages collected in community development districts be deposited into a special fund within the county treasury. These funds are to be used for grants that support:

Education
Civic activities
Community development
Tourism initiatives

Legislative Recommendations: Grants will be distributed based on the recommendations of legislators representing portions of the county. The allocation will reflect the population each legislator represents within the county.

Handling Vacancies: In cases where a legislative position is vacant, the funds for that portion of the county can be distributed upon the approval of any two other legislators representing parts of the county.

Affected Parties

Community Development Districts: The bill specifically impacts community development districts that allow the sale of alcoholic beverages.

Local Governments: Counties will manage the special fund and oversee the distribution of grants.

Legislators: State legislators will play a crucial role in recommending how the funds are allocated based on their constituents' needs.

Community Organizations: Various organizations involved in education, civic, and tourism activities may benefit from the grants funded by these tax proceeds.

Procedural Aspects

Enactment Date: The bill was enacted on April 9, 2025, and will become effective on June 1, 2025.

Legislative Journey:

Introduced on November 20, 2024.
Passed through several readings and committee actions in both the Senate and House before being signed by the Governor.
The final legislative actions included amendments and approvals from both chambers.

Conclusion

Senate Bill 25 represents a significant change in how sales tax proceeds from alcoholic beverages are utilized within community development districts in Alabama. By allowing legislators to recommend grant distributions, the bill aims to enhance community support and development through targeted funding for local initiatives.

Bill