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SB 91

County and municipal authorities; withdrawal from multi-jurisdiction authority authorized, taxes and distribution of monies from taxes further provided for

2026 Regular Session Introduced by Tim Melson

Alabama bill permits county/municipal withdrawal from multi-jurisdiction authorities and requires fair distribution of assets and tax revenues upon exit.

Read for the first time and referred to the House Committee on Economic Development and Tourism
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Bill Summary · SB 91

Legislative bill overview

SB 91 allows counties and municipalities in Alabama to withdraw from multi-jurisdiction authorities (regional entities that provide services across multiple jurisdictions). The bill also establishes procedures for distributing tax revenues and other financial assets when a jurisdiction exits such an authority.

Why is this important

Multi-jurisdiction authorities pool resources for services like water systems, waste management, or economic development. Allowing withdrawal gives local governments more autonomy but could destabilize regional services if major participants leave, potentially raising costs for remaining members or forcing service reductions.

Potential points of contention

  • Service continuity and cost impacts: Withdrawals could strand remaining jurisdictions with debt obligations and fixed costs spread across fewer members, increasing their financial burden
  • Stranded asset distribution: Disputes may arise over how to fairly divide infrastructure, equipment, and financial reserves accumulated by the authority
  • Regional coordination: Fragmentation could undermine coordinated approaches to regional problems like water management, transportation, or environmental protection that benefit from unified planning

Compiled from official sources — confirm details with the bill’s official record.

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