25 LC 47 3336
Senate Bill 138
By: Senators Dixon of the 45th, Still of the 48th, Cowsert of the 46th, Setzler of the 37th and
Anavitarte of the 31st
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 31 of Title 36 of the Official Code of Georgia Annotated, relating to
1
incorporation of municipal corporations, so as to provide for the transition of certain services2
related to newly incorporated municipalities in certain counties; to provide definitions; to3
provide for the provision and cost allocation of police and law enforcement services for such4
municipalities; to provide for the ownership, control, and maintenance of road rights of ways5
and certain storm-water drainage infrastructure in such municipalities; to provide for the6
transfer of certain fees and taxes collected by such county to such municipalities; to exempt7
such counties from having to renegotiate service delivery strategy agreements and address8
the provision of services to such municipalities in lieu of such renegotiations; to provide that9
such municipalities shall not be obligated to pay certain election costs; to provide that a10
county shall cover the legal expenses of such a newly incorporated municipality in the event11
of legal challenges relating to or arising from the transition of such services; to provide for12
a limited waiver of sovereign immunity; to amend Chapter 8 of Title 33 of the Official Code13
of Georgia Annotated, relating to fees and taxes related to insurance, so as to revise14
provisions related to population data related to newly incorporated municipalities and15
municipal taxes on life insurance and other insurance companies; to provide for related16
matters; to provide an effective date; to repeal conflicting laws; and for other purposes.17
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
18
SECTION 1.19
Chapter 31 of Title 36 of the Official Code of Georgia Annotated, relating to incorporation20
of municipal corporations, is amended by adding a new Code section to read as follows:21
"36-31-11.2.
22
(a) As used in this Code section, the term:23
(1) 'County' means a county with more than 15 municipalities wholly or partially located24
within its boundaries.25
(2) 'Qualified municipality' means any new municipality created by local Act which26
becomes law on or after January 1, 2024.27
(3) 'Transition period' means the period for the transition of governmental services from28
a county to a qualified municipality as provided for by this chapter or the local Act29
incorporating such qualified municipality.30
(b) Notwithstanding any provision of law to the contrary:31
(1)(A) When a qualified municipality is created within a county which has a special32
district consisting of both the unincorporated area and certain incorporated areas of the33
county for the provision of police or law enforcement services, the territory within the34
new qualified municipality shall remain in such special district until the qualified35
municipality notifies the county of its intention to leave such special district and assume36
full responsibility for the provision of police and law enforcement services. In no event37
shall a qualified municipality be required to provide more than one year's notice prior38
to exercising the option provided for in this paragraph to leave such special district if39
the county police department is staffed at less than 95 percent of its authorized number40
of certified peace officers.41
(B)(i) During the period that a qualified municipality remains within a police or law42
enforcement special district as provided for in subparagraph (A) of this paragraph, the43
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county shall continue to provide police and law enforcement services within the44
boundaries of the qualified municipality in the same manner as other parts of the45
special district.46
(ii) In the event that, at the end of a fiscal year for the special district, the actual47
special district ad valorem taxes collected within the boundaries of the qualified48
municipality are greater than the actual costs incurred by the county in providing49
police or law enforcement services within the boundaries of the qualified50
municipality, within 60 days of the final day of such fiscal year, the county shall51
deliver such excess funds to the qualified municipality.52
(iii) For the purpose of complying with division (ii) of this subparagraph, the actual53
costs of providing police or law enforcement services within the qualified54
municipality shall be calculated based upon the actual time county police or law55
enforcement officers spend providing police or law enforcement services within the56
boundaries of the qualified municipality. The costs of such police and law57
enforcement services shall include the costs of county police or law enforcement58
officers:59
(I) Patrolling and responding to dispatches or calls for service within the qualified60
municipality; and61
(II) Investigating crimes originating within the qualified municipality regardless of62
the physical location where such investigative activities occur.63
(iv) The fiscal authority for a special district for the provision of police or law64
enforcement services shall have the duty of tracking all information and making all65
calculations necessary to comply with the provisions of this paragraph.66
(v) Nothing in the paragraph shall affect or be affected by the provision of law67
enforcement services by a county sheriff.68
(2) A qualified municipality during the transition period shall assume ownership or69
control over any road rights of way located within the area incorporated and shall have70
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the full power and authority to regulate the use of such rights of ways, including but not71
limited to the granting of franchises and collection of franchise fees related to the use of72
such rights of way. At the sole discretion of the qualified municipality, during any such73
transition period, the county shall continue to perform maintenance and care for such road74
rights of way in the same manner that the county maintains and cares for road rights of75
way owned and controlled by the county in the unincorporated parts of the county.76
(3) A qualified municipality shall not take control of, maintain, be responsible for, or77
hold title to any infrastructure designed to temporarily retain 1,000 gallons or more of78
storm water or any dams or detention ponds located within the boundaries of such79
municipality that, prior to the creation of such municipality, were controlled, maintained,80
or the responsibility of the county unless such municipality explicitly agrees otherwise. 81
Regardless of any transition period, the county shall continue to control, maintain, and82
be responsible for such infrastructure in the same manner and degree as it did prior to the83
incorporation of the qualified municipality until the qualified municipality and the county84
agree otherwise.85
(4)(A) In the event that:86
(i) A qualified municipality succeeds to the control of local government services87
pursuant to Article IX, Section II, Paragraph III(a) of the Constitution, this chapter,88
or the local Act incorporating the qualified municipality during the middle of a89
county's fiscal year;90
(ii) The county, immediately prior to the qualified municipality succeed to the91
provision of such service, levied or collected any tax, fee, or other charge within92
territory that is then or subsequently within the boundaries of the qualified93
municipality; and94
(iii) Such tax, fee, or charge is directly related to the provision of such service,95
the county shall remit to the qualified municipality funds equal to a pro rata share of96
such collections based upon the amount of time during such fiscal year that the county97
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verses the qualified municipality provide the service related to such tax, fee, or98
collection.99
(B) This paragraph shall apply, but not be limited, to alcoholic beverage fees and taxes,100
business license fees, and occupation taxes collected within the qualified municipality,101
and shall not affect the validity of any permits or licences issued by the county upon the102
collection of such taxes, fees, or charges.103
(5)(A) For the purposes of this paragraph, the term 'permit or other official approval104
of activity' mean any permitting or application process related to licenses or permits105
related, but not limited to, alcoholic beverages, building, community development, land106
use and zoning, and regulated businesses or industries.107
(B) In the event that a county, prior to a qualified municipality succeeding to the108
control of a local government services pursuant to Article IX, Section II,109
Paragraph III(a) of the Constitution, this chapter, or the local Act incorporating the110
qualified municipality, accepts any application and fee related to the issuance of a111
permit or other official approval of activity relating to a governmental service assumed112
by the qualified municipality, and the related permitting or regulatory process is not113
fully completed by the county by the time the qualified municipality succeeds to the114
provision of such service, and such fees are not fully refunded to the applicant, the115
county shall transfer and remit to the qualified municipality the following percentage116
of such fees collected by the county:117
(i) Ninety-five percent if no action beyond mere acceptance has been taken upon the118
application;119
(ii) Seventy-five percent if the application has been processed but no required120
inspections have occurred; or121
(iii) Fifty percent if the application or regulatory process has been completed but final122
approval or permits have not be issued.123
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(C) The county shall transfer all required funds to the qualified municipality within 30124
days of being obligated to remit fees as required by subparagraph (B) of this paragraph.125
(6) The incorporation of a qualified municipality shall not require the county or any126
municipalities located within such county to renegotiate any service delivery strategy127
agreement enacted pursuant to Chapter 72 of this title that is in place on the date that the128
qualified municipality is incorporated. In lieu of such agreement being renegotiated129
during any transition period, the qualified municipality may elect to have the county130
provide within the boundaries of the qualified municipality any service or services that131
the county is providing to either another municipality or the unincorporated areas of the132
county pursuant to the then-current service delivery strategy agreement. The county shall133
provide any such elected services to the qualified municipality under the same conditions134
and in the same manner as it provides to the other municipality or the unincorporated area135
of the county. Such elections shall occur within six months of either the effective date136
of this Code section or the date of incorporation, whichever is later.137
(7) A qualified municipality shall have no obligation to repay the costs of any special138
election conducted either to:139
(A) Present a question to the voters on the incorporation of such municipality; or140
(B) Elect the initial governing authority of such municipality.141
(c)(1) In the event that:142
(A) A county fails to comply with the transition provisions provided for in this Code143
section, a qualified municipality is forced to seek judicial remedies for such failure to144
comply, and the qualified municipality is ultimately successful in such legal action; or145
(B) A qualified municipality is subject to a legal action initiated by a third party146
seeking to enforce its rights as a result of the qualified municipality's failure to meet a147
duty or obligation provided by law, and the qualified municipality's failure to meet such148
duty or obligation was the direct result of actions taken by a county relating to the149
transition of services between the county and qualified municipality,150
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then the county shall be responsible for reimbursing the qualified municipality for all151
legal expenses incurred by such qualified municipality in prosecuting or defending such152
action as well as any damages paid by the qualified municipality to such injured third153
party. The sovereign immunity of the county is waived to the extent necessary to154
effectuate this paragraph.155
(2) In the event that a county is found by a court of competent jurisdiction to have156
violated any duty or obligation arising from this chapter, the sovereign immunity of such157
county and the governmental immunity of all local officials of such local governing body158
is waived in all matters arising during a period of one year from the date of such judicial159
finding."160
SECTION 2.161
Chapter 8 of Title 33 of the Official Code of Georgia Annotated, relating to fees and taxes162
related to insurance, is amended by revising subsection (h) of Code Section 33-8-8.1, relating163
to county and municipal corporation taxes on life insurance companies, as follows:164
"(h) For purposes of this Code section, population shall be measured by the United States165
decennial census of 1990 or any future such census plus any corrections or revisions166
contained in official statements by the United States Bureau of the Census made prior to167
the first day of September immediately preceding the distribution of the proceeds of such168
taxes by the Commissioner and any additional official census data received by the169
Commissioner from the United States Bureau of the Census or its successor agency170
pertaining to any newly incorporated municipality. Any such official census data relating171
to any newly incorporated municipality shall be backdated to the initial filing provided for172
in subsection (e) of this Code section. Such corrections, revisions, or additional data shall173
be certified to the Commissioner by the Office of Planning and Budget on or before August174
31 of each year."175
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SECTION 3.
176
Said chapter is further amended by revising subsection (c) of Code Section 33-8-8.2, relating177
to county and municipal corporation taxes on other than life insurance companies, as follows:178
"(c) For purposes of this Code section, population shall be measured by the United States179
decennial census of 1990 or any future such census plus any corrections or revisions180
contained in official statements by the United States Bureau of the Census made prior to181
the first day of September immediately preceding the distribution of the proceeds of such182
taxes by the Commissioner and any additional official census data received by the183
Commissioner from the United States Bureau of the Census or its successor agency184
pertaining to any newly incorporated municipality. Any such official census data relating
185
to any newly incorporated municipality shall be backdated to the initial filing provided for186
in paragraph (1) of subsection (b) of this Code section. Such corrections, revisions, or187
additional data shall be certified to the Commissioner by the Office of Planning and Budget188
on or before August 31 of each year."189
SECTION 4.190
This Act shall become effective upon its approval by the Governor or upon its becoming law191
without such approval.192
SECTION 5.193
All laws and parts of laws in conflict with this Act are repealed. 194
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