Section 35-8B-1
Definitions; sale of alcoholic beverages.
THIS SECTION WAS AMENDED BY ACT 2022-153 IN THE 2022 REGULAR SESSION, EFFECTIVE JUNE 1, 2022. TO SEE THE AMENDED VERSION, SEE THE VERSION LABELED PENDING.
(a)(1) “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.
(2) The sale of any alcoholic beverages in any community development district established under this subsection shall be subject to a tax levied by the county on any sale at the same rate as the tax on any sale of beer and wine in the largest municipality in the county in which the district is established and shall be distributed as provided in Section 35-8B-5.
(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 (a)(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) “Community development district” also means a commercial district located in a wet county that does not authorize Sunday sales, has a restaurant with a seating capacity of at least 120, is adjacent to a marina with at least 34 boat slips, and is located on property where the marina and restaurant are under common ownership.
(g) “Community development district” also means a commercial district that includes a marina located on a river in an unincorporated area of a wet county that does not authorize seven-day sales with two separate food and beverage buildings with a combined space of at least 7,500 square feet connected by a boardwalk and separated by a patio with an entertainment stage.
(h) “Community development district” also means a commercial district located in a dry county that shares a geographic border with another state, has an elevation of at least 1,500 feet, and has a recreational waterway, specialty shops and restaurants, summer camps and retreat centers, an art gallery, and annual festivals showcasing the area.
(i)(1) “Community development district” also means a commercial district that borders on a lake that is formed by an impounded reservoir of a river whose source is in a federal wilderness area and has a marina with not less than 30 boat slips and a restaurant with seating capacity of not less than 100 seats of which not less than 50 seats must be inside seating and is located on property where the marina and restaurant are under common ownership. In addition to any other requirements by law, the restaurant shall obtain a business license from the local governing body having primary jurisdiction of the property where the restaurant is located and shall be subject to additional regulation as determined necessary by the local governing body. Only one restaurant license per community development district shall be allowed.
(2) The sale of any alcoholic beverages in any community development district established under this subsection shall be subject to a tax levied by the county on any sale at the same rate as the tax on any sale of beer and wine in the largest municipality in the county in which the district is established and shall be distributed as provided in Section 35-8B-5.
(j) “Community development district” also means a parcel of real property that meets all of the following criteria:
(1) It is owned by the same person or entity.
(2) It consists of not less than 160 acres.
(3) It is located partially in a dry county and partially in a wet county.
(4) It contains a lake of not less than 70 acres with a fishing resort consisting of a rental boathouse, campsites, and a community room.
(k) “Community development district” also means a parcel of real property that meets all of the following:
(1) Consists of at least 1,600 acres.
(2) Holds concerts and other family-oriented events.
(3) Is located in a dry county with at least one wet municipality.
(l) “Community development district” also means a commercial district located in a wet county that does not authorize Sunday sales which district is composed of resort property consisting of 3,000 or more contiguous acres under common ownership, has a public golf course with a practice area and clubhouse, has a restaurant on the property, has overnight accommodations consisting of 40 or more guest suites, and has a shooting range.
(m) “Community development district” also means a parcel of land in a resort area consisting of a lodge for overnight accommodations and homesites that include vacation rentals and meets all of the following:
(1) The development was originally developed by entities owned by the same family.
(2) It consists of not less than 180 acres located in a dry county which borders an adjoining state and has an elevation of not less than 1,100 feet.
(3) It has a lodge providing overnight accommodations, including a dining facility with a seating capacity of not less than 50 which is open to the public.
(4) It contains a platted subdivision of not less than 90 homesites, including homes available for vacation rental with plans for additional development.
(5) It is located on a bluff over the backwaters of a major river that flows through an adjoining state and flows through or borders on another adjoining state.
(n) “Community development district” also means a commercial district located in a wet county that does not authorize Sunday sales, has a restaurant with a seating capacity of at least 96 seats inside and 24 seats outside, is located on a lake and adjacent to docking facilities and boat slips for at least 24 boats, is licensed only to sell beer and wine, and is located on property where the restaurant and boat slips and docking facilities are under common ownership.
(o) “Community development district” also means privately owned property that meets all of the following criteria:
(1) It is used for social purposes.
(2) It is located in a dry county that has one or more wet municipalities, but outside the corporate limits of any municipality.
(3) It has a marina and a boat storage facility with at least 150 spaces.
(4) It has a shipstore with at least 2,200 square feet.
(5) It is adjacent to a lake of at least 100,000 acres.
(6) It has a restaurant or eatery used for the purpose of preparing and serving meals, with a seating capacity of at least 40 patrons.
(p) “Community development district” also means an area owned by an industrial development board located in a dry county with a wet municipality, but in a municipality that has more than 750 persons, according to the 2010 federal decennial census, and the property meets all of the following:
(1) The property is in a county bordering on two other states.
(2) The property is on a bluff overlooking a river flowing through two adjoining states.
(3) The property would be used only for a hotel having not less than 50 rooms and a restaurant.
(q)(1) “Community development district” also means privately owned property that meets all of the following criteria:
a. It is located in a dry county that has one or more wet municipalities, but outside the corporate limits of any municipality.
b. It consists of at least 60 acres.
c. It has facilities on the property which employ a full-time management staff for the social activities of the facilities, including the management of the premises where food and drink are sold.
d. It has a restaurant or eatery used for the purpose of preparing and serving meals, with a seating capacity of at least 500 patrons operated on the property.
e. It has concerts and other family-oriented events held on the property.
f. It has overnight accommodations with the capacity to sleep at least 70 individuals.
g. It has at least five fishing ponds.
h. It has an amphitheater for outdoor entertainment events.
i. It has a chapel for wedding services.
j. It has an RV park with a capacity of at least four RVs.
k. It has five reception halls with a seating capacity of at least 1,900 individuals.
l. It has an outdoor stage.
(2) The sale of any alcoholic beverages in any community development district established under this subsection shall be subject to a tax levied by the county on any sale at the same rate as the tax on any sale of beer and wine in the largest municipality in the county in which the district is established and shall be distributed as provided in Section 35-8B-5.
(r) 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.
(s) 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.
(t) 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.
(Acts 1992, No. 92-532, p. 1074, §1; Act 2000-470, p. 892, §1; Act 2004-541, p. 1143, §1; Act 2007-417, p. 869, §1; Act 2012-327, p. 769, §1; Act 2014-87, p. 138, §1; Act 2016-222, p. 570, §1; Act 2017-350, §1; Act 2017-359, §1; Act 2018-433, §1; Act 2020-176, §1; Act 2021-463, §1.)