The Alabama Senate has advanced a significant economic development bill that could reshape tourism opportunities and alcohol licensing in previously dry counties. Senate Bill 322, sponsored by Sen. Pro Tem Garlan Gudger (R-Cullman), passed with a 27-1 vote and notably without the contentious procedural battles that have characterized recent legislative sessions.
What the Bill Does
SB322 amends state law to allow qualifying community development districts to be annexed into nearby wet municipalities, even if they are not geographically contiguous. The legislation could pave the way for expanded alcohol licensing and tourism investment in otherwise dry counties, particularly in the Smith Lake area.
As Sen. Gudger explained on the Senate floor: “This particular bill does two things, mainly. It provides for a board of governors or board of directors for a resort that’s trying to locate on Smith Lake. And then number two, it allows for the district so that a wet city or municipality can annex this particular parcel that the owner, the developer owns and wants to come into the city.”
Development Requirements
The bill updates establishment requirements for community development districts, ranging from golf communities to multi-acre resort areas, including details on marina space, dining capacity, and entertainment offerings.
Gudger has defended the measure, arguing it brings long-overdue economic opportunity to the region while remaining consistent with legal standards for development. He’s pushed back on what he called “mass confusion” surrounding the bill’s purpose and said misinformation had spread rapidly online and in the press.
The Path Forward
The bill’s passage in the Senate marked a noticeable break from the gridlock that had previously stalled progress. It now heads to the House for consideration with six legislative days remaining in the current session.
Why This Matters
For communities near potential development districts like Smith Lake, this legislation could create new pathways for economic growth and tourism investment. The bill’s provisions for non-contiguous annexation could allow previously dry areas to benefit from alcohol licensing through nearby wet municipalities.
For residents and businesses in affected areas, the legislation may present both opportunities and challenges as development patterns potentially shift in response to these new legal frameworks.
We’ll continue to monitor this legislation through the remainder of the session and provide updates as it progresses through the House.For questions about how this legislation might affect your property or business interests, please contact our team at Baxley Maniscalco.
