23 LC 47 2222ERS
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The Senate Committee on State and Local Governmental Operations - General offered the
following substitute to SB 113:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 31 of Title 36 of the Official Code of Georgia Annotated, relating to1
incorporation of municipal corporations, so as to provide for the transition of services and2
facilities from an existing municipality to a newly incorporated municipality; to provide3
definitions; to provide for the preservation of existing facilities and assets of an existing4
facility prior to transfer to a newly incorporated municipality; to provide for newly5
incorporated municipalities purchasing portions of an existing municipality's water or6
sewerage systems; to provide for bonded and other obligations; to provide for the creation7
of special tax districts; to prohibit certain actions of existing municipalities relating to newly8
incorporated municipalities; to provide for automatic deannexation in certain circumstances;9
to provide for related matters; to repeal conflicting laws; and for other purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
Chapter 31 of Title 36 of the Official Code of Georgia Annotated, relating to incorporation13
of municipal corporations, is amended by adding a new Code section to read as follows:14 23 LC 47 2222ERS
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"36-31-1.1.15
As used in this chapter, the term:16
(1) 'Bond obligation date' means the date that an Act providing for a charter for a newly17
qualified municipality that includes a deannexed area is signed by the Governor or18
becomes law without such approval.19
(2) 'Deannexed area' means any area removed from the boundaries of one municipality20
for the purposes of a charter for a newly qualified municipality.21
(3) 'General obligation bond obligations' means any obligations a prior municipality has22
under general obligation bonds that are in effect on the bond obligation date.23
(4) 'Intergovernmental contract obligations' means any obligations a prior municipality24
has under intergovernmental contracts executed in connection with the issuance of25
revenue bonds that are in effect on the bond obligation date.26
(5) 'Lease-purchase agreement obligations' means any obligations a prior municipality27
has under lease-purchase agreements that are in effect on the bond obligation date.28
(6) 'Prior municipality' means the municipality from which the deannexed area is taken."29
SECTION 2.30
Said chapter is further amended by revising Code Section 36-31-8, relating to transition31
periods for governmental functions and appointment by the Governor of interim32
representatives, as follows:33
"36-31-8.34
(a) When a new municipal corporation is created by local Act, the local Act may provide35
for a transition period not to exceed 24 months for the orderly transition of governmental36
functions from the county or prior municipality to the new municipal corporation. The37
local Act may specify the time or times during the transition period (or the method or38
methods for determining the time or times during the transition period) at which:39 23 LC 47 2222ERS
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(1) Various governmental functions, services, and responsibilities will be assumed by the40
new municipal corporation within its territory; and41
(2) The municipal court of the new municipality shall begin to exercise its jurisdiction42
over various subject matters.43
(b) When a chartering local Act so provides for a transition period, the county in which the44
new municipality is located or the prior municipality shall continue to provide within the45
territory of the new city all government services and functions which it provided as of the46
date of enactment of the chartering local Act. The county or prior municipality shall47
continue to provide such services and functions until the end of the transition period;48
provided, however, that the new city may assume the provision of any service or function49
at such earlier time as may be specified in the chartering local Act or at such earlier time50
as may be agreed upon by the county or prior municipality and the new city.51
(c) When a chartering local Act so provides for a transition period, on and after the first52
day the initial governing authority takes office, the governing authority may from time to53
time adopt appropriate measures to initiate collection within the territory of the new city54
during the transition period of all taxes, fees, assessments, fines and bond forfeitures, and55
other moneys. Where a particular tax, fee, assessment, fine, forfeiture, or other amount56
collected by the city during the transition period is specifically related to the provision of57
a particular government service or function by the county or prior municipality, the service58
or function shall continue to be provided by the county or prior municipality during the59
transition period contingent upon payment by the city of the actual cost of providing such60
service or function unless otherwise provided in a written agreement between the new city61
and the county or prior municipality.62
(d) When a chartering local Act so provides for a transition period, the county in which the63
new city is located shall not from the time of enactment of the charter until the end of the64
transition period remove from the county road system any road within the territory of the65
new city except with the agreement of the new city.66 23 LC 47 2222ERS
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(e) When a chartering local Act so provides for a transition period, the new municipality67
shall not be subject to the laws specified in this subsection during the transition period;68
provided, however, that the new city and other political subdivisions may during the69
transition period commence planning, negotiations, and other actions necessary or70
appropriate for compliance after the transition period. During the transition period, the new71
municipality shall not be subject to:72
(1) Chapter 70 of this title, relating to planning and service delivery strategies;73
(2) Provisions of Code Section 12-8-31.1, relating to solid waste planning;74
(3) Provisions of Code Section 48-13-56, relating to reporting of excise taxes collected75
and expended pursuant to Article 3 of Chapter 13 of Title 48; and76
(4) Provisions of Code Section 36-81-8, relating to reporting of local government77
finances, reporting of revenues derived from a tax levied pursuant to Article 3 of78
Chapter 13 of Title 48, and reporting of local government services and operations.79
(f) When a chartering local Act so provides for a transition period, upon the termination80
of the transition period subsections (b) through (e) of this Code section shall cease to apply81
and the new city shall be a fully functioning municipal corporation and subject to all82
general laws of this state.83
(g) As of the date a chartering local Act is approved by the Governor or becomes law84
without such approval, the Governor is authorized to appoint five persons to serve as85
interim representatives of the newly incorporated municipality until the election of the86
municipality's first governing authority. The interim representatives shall cease to serve87
as of the time the members of the first governing authority take office. The function of the88
interim representatives shall be to facilitate the provision of municipal services and89
facilities, the collection of taxes and fees, and the negotiation of intergovernmental90
agreements in preparation of the establishment of the new municipality. The interim91
representatives shall not have the ability to enter into any binding agreements, to expend92
public funds, or to incur any liability on behalf of the new municipality. Any person who93 23 LC 47 2222ERS
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is serving as or has served as an interim representative shall be ineligible to qualify for94
election as a member of the initial governing authority of the new municipality."95
SECTION 3.96
Said chapter is further amended by revising Code Section 36-31-11.1, relating to97
municipality control over parks and fire stations and obligation of county, as follows:98
"36-31-11.1.99
(a) As used in this Code section, the term: 100
(.1) 'Assets' means all real property, personal property, moneys, instruments, and101
reserves of any nature held by a municipality as a trustee or agent for the public trust,102
provided that any real property currently designated and operated as an international103
airport shall not be considered assets.104
(1) 'County' means a county in which a tax is being levied and collected for purposes of105
a metropolitan area system of public transportation.106
(2) 'Fire station' means any property or facility that is located wholly within the territory107
of a qualified municipality, owned by the county or prior municipality or subject to a108
lease-purchase or installment sale arrangement by the county or prior municipality, and109
used by the county or prior municipality as of the date immediately prior to the date the110
local Act incorporating a qualified municipality became law to provide fire protection111
services authorized by Article IX, Section II, Paragraph III(a)(1) of the Constitution.112
Such term shall include any buildings, fixtures, or other improvements on such property113
or in such facilities.114
(3) 'Park' means any property or facility that is located wholly within the territory of a115
municipality, including but not limited to athletic fields, athletic courts, recreation116
centers, playgrounds, swimming pools, arts centers, historical properties, and adjacent117
greenspace, owned by the county or prior municipality, or subject to a lease-purchase or118
installment sale arrangement by the county or prior municipality and used by the county119 23 LC 47 2222ERS
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or prior municipality as of the date immediately prior to the date the local Act120
incorporating a qualified municipality became law to provide any services authorized by121
Article IX, Section II, Paragraph III(a)(5) of the Constitution or to provide any services122
authorized by Article IX, Section II, Paragraph III(a)(10) of the Constitution. Such term123
shall include any buildings, fixtures, or other improvements on such property or in such124
facilities.125
(4) 'Qualified municipality' means any new municipality located in a county or126
deannexed area and created by local Act which becomes law on or after January 1, 2008.127
(b) A qualified municipality that succeeds to the control of local government services128
pursuant to Article IX, Section II, Paragraph III(a) of the Constitution may take control of129
and hold title to parks and fire stations as a trustee or agent for the public.130
(c)(1) A qualified municipality located within a county which has a special district for131
the provision of fire services shall continue to be part of such special fire district where132
the local Act creating such qualified municipality so provides or where the governing133
authority of the qualified municipality elects by formal resolution to continue to be part134
of the special fire district and delivers a copy of such resolution to the governing135
authority of the county within 30 days after the date the resolution is adopted.136
(2) If a qualified municipality initially elected to remain in a fire services special district,137
such municipality shall be removed from such fire services special district by adopting138
a resolution stating its intent to be removed from the district and the date of removal,139
provided the governing authority of the qualified municipality delivers a copy of such140
resolution to the governing authority of the county. The fire services shall be141
discontinued by the county on the first day of the next fiscal year of the county that142
begins at least 180 days after the specified notice is received by the county.143
(d) A qualified municipality located within a county or prior municipality that charges fees144
on a periodic basis for the provision of water or sewer services, or both, may elect to145
continue receiving such services for the same fees charged residents in the prior146 23 LC 47 2222ERS
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municipality or the unincorporated area of the county. Such election may be set forth in147
the local Act creating such qualified municipality or be made by resolution of the148
governing authority of the qualified municipality provided the governing authority of the149
qualified municipality delivers a copy of such resolution to the governing authority of the150
prior municipality or county within 30 days after the date the resolution is adopted.151
(e) The county or prior municipality shall not convey, otherwise encumber, move any152
fixtures or buildings, or enter into or renew any contractual obligations with respect to any153
park or fire station located in the qualified municipality. The governing authority of the154
county or prior municipality shall assign to the governing authority of the qualified155
municipality all of its right, title, and interest in any executory contract in effect on any156
park or fire station that the qualified municipality elects to purchase as provided in this157
Code section. Such assignment shall be effective on the date the qualified municipality158
assumes ownership of any such park or fire station or as otherwise may be agreed between159
the governing authority of the qualified municipality and the governing authority of the160
county or prior municipality.161
(f) A qualified municipality may elect to purchase parks within the territory of the162
qualified municipality from the county in which the municipality is located or prior163
municipality. Notwithstanding any other law to the contrary, whenever a qualified164
municipality elects to purchase any such parks, the governing authority of the qualified165
municipality shall provide written notice to the governing authority of the county or prior166
municipality specifying the parks to be purchased and the date or dates the qualified167
municipality will assume ownership of such parks; the purchase price for such parks shall168
be $100.00 per acre. Such notice shall be provided for each such park no less than 30 days169
prior to the date the qualified municipality intends to assume ownership.170
(g) Upon the payment of the purchase price, all of the county's or prior municipality's171
right, title, and interest in the parks that the qualified municipality elects to purchase shall172
be transferred to the governing authority of the qualified municipality. Such transfer shall173 23 LC 47 2222ERS
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be effective on the date the qualified municipality intends to assume ownership of such174
parks and as stated in the notice given pursuant to subsection (f) of this Code section. The175
governing authority of the county or prior municipality shall transfer, execute, and deliver176
to the governing authority of the qualified municipality such instruments as may be177
necessary to record the transfer of such right, title, and interest. Notwithstanding any178
provision in any property deed or law to the contrary, a qualified municipality may179
purchase a park from the county or prior municipality without permission of the state and180
may use such park for all purposes for which the county or prior municipality was181
authorized under such deed or law.182
(h) In the event a park is transferred by a county or prior municipality to a qualified183
municipality under this Code section, the qualified municipality shall be prohibited from184
imposing or collecting user fees from residents of the county or prior municipality in185
excess of the amount of such fees imposed or collected from residents of the qualified186
municipality.187
(i) Where residents of a qualified municipality are required pursuant to Code188
Section 36-31-11 or otherwise to continue to pay taxes for the purpose of retiring any189
special district debt or other debt created by the issuance of bonds by the county on behalf190
of the special district or bonds issued by the prior municipality for the purpose of191
improving parks and the qualified municipality elects to purchase any such park pursuant192
to this Code section, the county or prior municipality shall transfer to the qualified193
municipality as an agent of the special district the portion of the bond proceeds that the194
county or prior municipality planned to spend on such park at the time of the referendum195
on the bonds, based upon any statements of intention or representations concerning use of196
the bond proceeds by the governing authority of the county or prior municipality. Such197
amount shall be determined based on county or prior municipality resolutions and any198
attachments thereto, staff recommendations, or similar documents presented at the time of199
passage of a resolution, county or prior municipality records, and any public statements or200 23 LC 47 2222ERS
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representations made by county or prior municipality managers, representatives, officials,201
or their agents as to the amount that would be spent on such park in order to solicit voter202
support for the referendum; provided, however, that the amount to be transferred by the203
county or prior municipality to the qualified municipality shall be reduced by any amount204
spent by the county or prior municipality to improve such park prior to the date of the205
qualified municipality's notice of its election to purchase the park as provided in206
subsection (f) of this Code section. The transfer shall be due within 30 days after the207
qualified municipality assumes ownership of any such park. The qualified municipality208
shall be required to expend any such funds for and on behalf of the special district or prior209
municipality in a manner consistent with the purpose and intent of the issuance of the210
bonds.211
(j) A qualified municipality may elect to purchase one or more fire stations from the212
county or prior municipality in which it is located. Notwithstanding any other law to the213
contrary, whenever a qualified municipality elects to purchase a fire station from the214
county or prior municipality, the governing authority of the qualified municipality shall215
provide written notice to the governing authority of the county or prior municipality216
specifying the fire station to be purchased and the date or dates the qualified municipality217
will assume ownership of such fire station. Such notice shall be provided with respect to218
each such property no less than 30 days prior to the date the qualified municipality intends219
to assume ownership of the fire station.220
(k)(1) Except as otherwise provided in paragraph (2) of this subsection, if a qualified221
municipality elects to purchase a fire station that serves only territory wholly within the222
qualified municipality, the purchase price shall be $5,000.00 for each such fire station.223
(2) If the county or prior municipality uses a fire station to serve an area located outside224
the qualified municipality, the purchase price for each such fire station shall be $5,000.00225
plus an additional amount determined as provided in this paragraph. Such additional226
amount shall be the product of the fair market value of such fire station multiplied by the227 23 LC 47 2222ERS
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percentage of the total service area of such fire station which is located outside of the228
corporate limits of the qualified municipality. If the portion served outside the qualified229
municipality exceeds 20 percent of the total service area, then from the date the qualified230
municipality assumes ownership of such fire station, the qualified municipality shall be231
obligated to offer to lease the fire station back to the county or qualified municipality for232
a period not to exceed two years for an amount of $10.00 for the lease period.233
(l)(1) A prior municipality shall not convey, otherwise encumber, move any fixtures or234
buildings, or enter into or renew any contractual obligations with respect to any physical235
assets located in a qualified municipality. A prior municipality shall assign to the236
governing authority of the qualified municipality all of its right, title, and interest in any237
executory contract in effect that the qualified municipality elects to purchase as provided238
in this Code section. Such assignment shall be effective on the date the qualified239
municipality assumes ownership of any physical asset or as otherwise may be agreed240
between the governing authority of the qualified municipality and the prior municipality.241
(2) A qualified municipality may elect to purchase any physical assets within the242
territory of the qualified municipality from the prior municipality in which the qualified243
municipality is located. Notwithstanding any other law to the contrary, whenever a244
qualified municipality elects to purchase any physical assets the governing authority of245
the qualified municipality shall provide written notice to the governing authority of the246
prior municipality specifying any physical assets to be purchased and the date or dates247
the qualified municipality will assume ownership of any physical assets. The purchase248
price for land shall be $100.00 per acre. The purchase price for buildings shall249
be $1,000.00 per building including all fixtures. The purchase price for personalty shall250
be the depreciated value as shown on the prior municipality's records for the year251
immediately preceding issuance of the qualified municipality's charter. Notice shall be252
provided for any physical asset no less than 30 days prior to the date the qualified253
municipality intends to assume ownership.254 23 LC 47 2222ERS
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(m)(1) A qualified municipality may elect to purchase the water system within the255
territory of the qualified municipality from the prior municipality in which the qualified256
municipality is located. Notwithstanding any other law to the contrary, whenever a257
qualified municipality elects to purchase the water system, the governing authority of the258
qualified municipality shall provide written notice to the governing authority of the prior259
municipality specifying the water system to be purchased and the date or dates the260
qualified municipality will assume ownership of such water system; the purchase price261
for such water system shall be $100,000.00. Such notice shall be provided for such water262
system no less than 30 days prior to the date the qualified municipality intends to assume263
ownership.264
(2) A qualified municipality may elect to purchase the sewer system within the territory265
of the qualified municipality from the prior municipality in which the qualified266
municipality is located. Notwithstanding any other law to the contrary, whenever a267
qualified municipality elects to purchase the sewer system, the governing authority of the268
qualified municipality shall provide written notice to the governing authority of the prior269
municipality specifying the sewer system to be purchased and the date or dates the270
qualified municipality will assume ownership of such sewer system; the purchase price271
for such sewer system shall be $100,000.00. Such notice shall be provided for such272
sewer system no less than 30 days prior to the date the qualified municipality intends to273
assume ownership.274
(n) All physical assets of a prior municipality located outside the corporate limits of either275
municipality shall be divided on a pro rata basis. If division is not possible, the assets shall276
be sold and the proceeds shall be divided on a pro rata basis between the prior and qualified277
municipality.278
(o) All moneys, reserves, or other investments of a prior municipality shall be divided on279
a pro rata basis between the prior and qualified municipalities.280 23 LC 47 2222ERS
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(p)(1) When a prior municipality has outstanding general obligation bond obligations,281
the qualified municipality created from a deannexed area shall assume a pro rata share282
of such outstanding obligations as they existed on such date.283
(2) When the creation of a qualified municipality from a deannexed area would result in284
a prior municipality losing revenues that historically had been used to pay obligations285
arising from lease-purchase agreement obligations or intergovernmental contract286
obligations the prior municipality was a party to on the bond obligation date, the qualified287
municipality created from a deannexed area shall assume a pro rata share of such288
outstanding obligations as they existed on such date. Such qualified municipality also289
shall remain contingently obligated on its pro rata share of any unassumed lease-purchase290
agreement obligations or intergovernmental contract obligations should the revenues used291
to pay such obligations be insufficient to pay the same.292
(3) Upon approval of the charter for a newly qualified municipality composed of any293
deannexed area:294
(A) A special tax district shall be established, the boundaries of such district to be295
coterminous with the corporate limits of the prior municipality; and296
(B) A special tax district shall be established, the boundaries of such district to be297
coterminous with the corporate limits of the newly qualified municipality.298
(4) A prior municipality shall levy and collect a tax in the district established pursuant299
to subparagraph (A) of paragraph (3) of this subsection sufficient to pay its share of the300
obligations as provided in paragraphs (1) and (2) of this subsection.301
(5) A newly qualified municipality shall levy and collect a tax in the district established302
pursuant to subparagraph (B) of paragraph (3) of this subsection sufficient to pay its share303
of the obligations as provided in paragraphs (1) and (2) of this subsection.304
(6) For the purpose of this subsection, a qualified municipality's pro rata share of any305
bond obligations shall be equal to the value of the qualified municipality's ad valorem306
property tax digest divided by the prior municipality's ad valorem property tax digest that307 23 LC 47 2222ERS
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is based upon the tax digest approved by the Department of Revenue for the tax year of308
the bond obligation date.309
(q) After the bond obligation date, a prior municipality shall not:310
(1) Incur any bond obligations or any obligations of any kind that would directly or311
indirectly obligate the newly qualified municipality;312
(2) Exercise any extraordinary optional redemption that would accelerate the maturity313
of any bond obligations in effect on such date;314
(3) Create a special district that has boundaries coterminous with the boundaries of the315
newly qualified municipality; or316
(4) Take any other action that would have an adverse effect on the newly qualified317
municipality.318
(r) Any territory contained within a new qualifying municipality that was within the319
corporate limits of a prior municipality on the day immediately prior to date of320
incorporation of the new qualifying municipality shall automatically be deannexed from321
the corporate limits of such prior municipality contemporaneously with incorporation of322
the new qualifying municipality.323
(l)(s) If a county or prior municipality and a qualified municipality fail to reach an324
agreement on the amount to be paid or any related matter under this Code section, either325
the county or prior municipality or the qualified municipality may petition the superior326
court to seek resolution of the items in dispute. Such petition shall be assigned to a judge,327
pursuant to Code Section 15-1-9.1 or 15-6-13, who is not a judge in the circuit in which the328
county or prior municipality is located. The judge selected may also be a senior judge329
pursuant to Code Section 15-1-9.2 who resides in another circuit. The visiting or senior330
judge shall conduct an evidentiary hearing or hearings as such judge deems necessary and331
render a decision with regard to the disputed items."332 23 LC 47 2222ERS
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SECTION 4.333
All laws and parts of laws in conflict with this Act are repealed.334