25 LC 44 3173S
The Senate Committee on State and Local Governmental Operations-General offered
the following substitute to HB 513:
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 70 of Title 36 of the Official Code of Georgia Annotated,1
relating to service delivery, so as to revise provisions related to the county share of funding2
for jointly funded county-wide services be borne by unincorporated residents; to provide for3
annual reports thereof; to provide for review and revisions to approved strategies; to provide4
for related matters; to provide for an effective date; to repeal conflicting laws; and for other5
purposes.6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
SECTION 1.8
Article 2 of Chapter 70 of Title 36 of the Official Code of Georgia Annotated, relating to9
service delivery, is amended by revising Code Section 36-70-24, relating to criteria for10
service delivery strategy, as such Code section becomes effective on January 1, 2026, as11
follows:12
"36-70-24.13
In the development of a service delivery strategy, the following criteria shall be met:14
(1) The strategy shall promote the delivery of local government services in the most15
efficient, effective, and responsive manner. The strategy shall identify steps which will16
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be taken to remediate or avoid overlapping and unnecessary competition and duplication17
of service delivery and shall identify the time frame in which such steps shall be taken. 18
When a municipality provides a service at a higher level than the base level of service19
provided throughout the geographic area of the county by the county, such service shall20
not be considered a duplication of the county service;21
(2)(A) The strategy shall provide that water or sewer fees charged to customers located22
outside the geographic boundaries of a service provider shall not be arbitrarily higher23
than the fees charged to customers receiving such service which are located within the24
geographic boundaries of the service provider.25
(B) If a governing authority disputes the reasonableness of water and sewer rate26
differentials imposed within its jurisdiction by another governing authority, that27
disputing governing authority may hold a public hearing for the purpose of reviewing28
the rate differential. Following the preparation of a rate study by a qualified engineer,29
the governing authority may challenge the arbitrary rate differentials on behalf of its30
residents in a court of competent jurisdiction. Prior to such challenge, the dispute shall31
be submitted to some form of alternative dispute resolution;32
(3)(A) The strategy shall ensure that the cost of any service which a county provides33
primarily for the benefit of the unincorporated area of the county shall be borne by the34
unincorporated area residents, individuals, and property owners who receive the35
service. Further, when the county and one or more municipalities jointly fund a36
county-wide service, the county share of such funding shall be borne by the37
unincorporated residents, individuals, and property owners that receive the service.38
(B) Such funding shall be derived from:39
(i) Any one or more of the following sources:40
(i)(I) Special service districts created by the county in which ad valorem property41
taxes, assessments, or user fees are levied or imposed;42
(ii)(II) Grants;43
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(iii)(III) Any one or more of the following taxes and fees: solid waste franchise44
fees, cable Cable franchise fees, alcohol excise taxes, alcohol licensing fees,45
financial institution taxes, hotel-motel taxes, occupation taxes, railroad equipment46
taxes, insurance premium taxes, rental car excise taxes, impact fees, stormwater47
fees, zoning fees, or title ad valorem taxes, but excluding any amounts of such taxes48
or and fees to the extent such amount is derived from incorporated areas of the49
county; and50
(iv)(IV) Revenues apportioned to the county as part of an intergovernmental51
agreement from the county and one or more municipalities; or52
(v)(ii) Through such other mechanism agreed upon by the parties approving the53
strategy which complies with the intent of subparagraph (A) of this paragraph; and.54
(C)(i) The strategy shall require the county to provide an annual report to each party55
to the strategy that:56
(I) Identifies the total amount of funds received by the county from the funding57
sources utilized under division (i) or (ii) of subparagraph (B) of this paragraph for58
the provision of county services provided primarily for the benefit of the59
unincorporated area of the county and the county's share of any countywide service60
funded with one or more municipalities; and61
(II) The total cost to the county of providing the services described in62
subdivision (I) of this division.63
(ii) The provisions of this subparagraph shall not require any party to the strategy to64
establish separate accounts for such funds; and65
(4)(A) Local governments within the same county shall, if necessary, amend their land66
use plans so that such plans are compatible and nonconflicting, or, as an alternative,67
they shall adopt a single land use plan for the unincorporated and incorporated areas of68
the county.69
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(B) The provision of extraterritorial water and sewer services by any jurisdiction shall70
be consistent with all applicable land use plans and ordinances."71
SECTION 2.72
Said article is further amended by revising Code Section 36-70-28, relating to review and73
revision of approved strategy, as such Code section becomes effective on January 1, 2026,74
as follows:75
"36-70-28.76
(a) As used in this Code section, the term 'affected municipality' means the county seat and77
each municipality of at least 500 persons.78
(b) In addition to the ten-year update required by paragraph (1) of subsection (a) of Code79
Section 36-70-21, each county and affected municipality shall review and revise the80
approved strategy:81
(1) Whenever necessary due to changes in revenue distribution arrangements;82
(2) In the event of the creation, abolition, or consolidation of local governments;83
(3) When the existing service delivery strategy agreement expires; and84
(4) Whenever the county and affected municipalities agree to revise the strategy.85
(b.1)(1) In the event that a change in service delivery or revenue distribution86
arrangements affects less than all of the local governments that are parties to the approved87
strategy, an amendment to the strategy limited to such changed service or services or88
revenue distribution arrangements between only those specific local governments may89
be submitted solely by the affected local governments and without the approval of the90
other nonimpacted county and affected municipalities in the county whose approval91
would otherwise be required under subsection (b) of Code Section 36-70-25.92
(2) Any amendments to the approved strategy or revenue distribution arrangement which93
affect less than all of the local governments that are parties to the approved strategy shall94
be subject to review and revision whenever the service delivery strategy affecting the95
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county and all municipalities within the county becomes subject to review and revision96
under paragraph (1) of subsection (a) of Code Section 36-70-21 or subsection (b) of this97
Code section.98
(c) No amendment to Code Section 36-70-24 made by the General Assembly shall99
constitute an event necessitating review and revision to an approved strategy under100
subsection (b) of this Code section.101
(d) In the event that a county or an affected municipality located within the county refuses102
to review and revise a strategy in accordance with paragraph (2) of subsection (b) of this103
Code section, then any of the parties may use the mediation or nonbinding arbitration104
processes provided for in this article."105
SECTION 3.106
This Act shall become effective on January 1, 2026.107
SECTION 4.108
All laws and parts of laws in conflict with this Act are repealed.109
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