25 SB 138/AP
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
AS PASSED
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 revise provisions related16
to when newly incorporated municipalities may be allocated taxes on life insurance and other17
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insurance companies; to provide for related matters; to provide an effective date; to repeal
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conflicting laws; and for other purposes.19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:20
SECTION 1.21
Chapter 31 of Title 36 of the Official Code of Georgia Annotated, relating to incorporation22
of municipal corporations, is amended by adding a new Code section to read as follows:23
"36-31-11.2.
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(a) As used in this Code section, the term:25
(1) 'County' means a county with more than 15 municipalities wholly or partially located26
within its boundaries.27
(2) 'Qualified municipality' means any new municipality created by local Act which28
becomes law on or after January 1, 2024.29
(3) 'Transition period' means the period for the transition of governmental services from30
a county to a qualified municipality as provided for by this chapter or the local Act31
incorporating such qualified municipality.32
(b) Notwithstanding any provision of law to the contrary:33
(1)(A) When a qualified municipality is created within a county which has a special34
district consisting of both the unincorporated area and certain incorporated areas of the35
county for the provision of police or law enforcement services, the territory within the36
new qualified municipality shall remain in such special district until the qualified37
municipality notifies the county of its intention to leave such special district and assume38
full responsibility for the provision of police and law enforcement services. In no event39
shall a qualified municipality be required to provide more than one year's notice prior40
to exercising the option provided for in this paragraph to leave such special district if41
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the county police department is staffed at less than 95 percent of its authorized number42
of certified peace officers.43
(B)(i) During the period that a qualified municipality remains within a police or law44
enforcement special district as provided for in subparagraph (A) of this paragraph, the45
county shall continue to provide police and law enforcement services within the46
boundaries of the qualified municipality in the same manner as other parts of the47
special district.48
(ii) In the event that, at the end of a fiscal year for the special district, the actual49
special district ad valorem taxes collected within the boundaries of the qualified50
municipality are greater than the actual costs incurred by the county in providing51
police or law enforcement services within the boundaries of the qualified52
municipality, within 60 days of the final day of such fiscal year, the county shall53
deliver such excess funds to the qualified municipality.54
(iii) For the purpose of complying with division (ii) of this subparagraph, the actual55
costs of providing police or law enforcement services within the qualified56
municipality shall be calculated based upon the actual time county police or law57
enforcement officers spend providing police or law enforcement services within the58
boundaries of the qualified municipality. The costs of such police and law59
enforcement services shall include the costs of county police or law enforcement60
officers:61
(I) Patrolling and responding to dispatches or calls for service within the qualified62
municipality; and63
(II) Investigating crimes originating within the qualified municipality regardless of64
the physical location where such investigative activities occur.65
(iv) The fiscal authority for a special district for the provision of police or law66
enforcement services shall have the duty of tracking all information and making all67
calculations necessary to comply with the provisions of this paragraph.68
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(v) Nothing in the paragraph shall affect or be affected by the provision of law69
enforcement services by a county sheriff.70
(2) A qualified municipality during the transition period shall assume ownership or71
control over any road rights of way located within the area incorporated and shall have72
the full power and authority to regulate the use of such rights of ways, including but not73
limited to the granting of franchises and collection of franchise fees related to the use of74
such rights of way. At the sole discretion of the qualified municipality, during any such75
transition period, the county shall continue to perform maintenance and care for such road76
rights of way in the same manner that the county maintains and cares for road rights of77
way owned and controlled by the county in the unincorporated parts of the county.78
(3) A qualified municipality shall not take control of, maintain, be responsible for, or79
hold title to any infrastructure designed to temporarily retain 1,000 gallons or more of80
storm water or any dams or detention ponds located within the boundaries of such81
municipality that, prior to the creation of such municipality, were controlled, maintained,82
or the responsibility of the county unless such municipality explicitly agrees otherwise.83
Regardless of any transition period, the county shall continue to control, maintain, and84
be responsible for such infrastructure in the same manner and degree as it did prior to the85
incorporation of the qualified municipality until the qualified municipality and the county86
agree otherwise.87
(4)(A) In the event that:88
(i) A qualified municipality succeeds to the control of local government services89
pursuant to Article IX, Section II, Paragraph III(a) of the Constitution, this chapter,90
or the local Act incorporating the qualified municipality during the middle of a91
county's fiscal year;92
(ii) The county, immediately prior to the qualified municipality succeed to the93
provision of such service, levied or collected any tax, fee, or other charge within94
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territory that is then or subsequently within the boundaries of the qualified95
municipality; and96
(iii) Such tax, fee, or charge is directly related to the provision of such service,97
the county shall remit to the qualified municipality funds equal to a pro rata share of98
such collections based upon the amount of time during such fiscal year that the county99
verses the qualified municipality provide the service related to such tax, fee, or100
collection.101
(B) This paragraph shall apply, but not be limited, to alcoholic beverage fees and taxes,102
business license fees, and occupation taxes collected within the qualified municipality,103
and shall not affect the validity of any permits or licences issued by the county upon the104
collection of such taxes, fees, or charges.105
(5)(A) For the purposes of this paragraph, the term 'permit or other official approval106
of activity' mean any permitting or application process related to licenses or permits107
related, but not limited to, alcoholic beverages, building, community development, land108
use and zoning, and regulated businesses or industries.109
(B) In the event that a county, prior to a qualified municipality succeeding to the110
control of a local government services pursuant to Article IX, Section II,111
Paragraph III(a) of the Constitution, this chapter, or the local Act incorporating the112
qualified municipality, accepts any application and fee related to the issuance of a113
permit or other official approval of activity relating to a governmental service assumed114
by the qualified municipality, and the related permitting or regulatory process is not115
fully completed by the county by the time the qualified municipality succeeds to the116
provision of such service, and such fees are not fully refunded to the applicant, the117
county shall transfer and remit to the qualified municipality the following percentage118
of such fees collected by the county:119
(i) Ninety-five percent if no action beyond mere acceptance has been taken upon the120
application;121
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(ii) Seventy-five percent if the application has been processed but no required122
inspections have occurred; or123
(iii) Fifty percent if the application or regulatory process has been completed but final124
approval or permits have not be issued.125
(C) The county shall transfer all required funds to the qualified municipality within 30126
days of being obligated to remit fees as required by subparagraph (B) of this paragraph.127
(6) The incorporation of a qualified municipality shall not require the county or any128
municipalities located within such county to renegotiate any service delivery strategy129
agreement enacted pursuant to Chapter 72 of this title that is in place on the date that the130
qualified municipality is incorporated. In lieu of such agreement being renegotiated131
during any transition period, the qualified municipality may elect to have the county132
provide within the boundaries of the qualified municipality any service or services that133
the county is providing to either another municipality or the unincorporated areas of the134
county pursuant to the then-current service delivery strategy agreement. The county shall135
provide any such elected services to the qualified municipality under the same conditions136
and in the same manner as it provides to the other municipality or the unincorporated area137
of the county. Such elections shall occur within six months of either the effective date138
of this Code section or the date of incorporation, whichever is later.139
(7) A qualified municipality shall have no obligation to repay the costs of any special140
election conducted either to:141
(A) Present a question to the voters on the incorporation of such municipality; or142
(B) Elect the initial governing authority of such municipality.143
(c)(1) In the event that:144
(A) A county fails to comply with the transition provisions provided for in this Code145
section, a qualified municipality is forced to seek judicial remedies for such failure to146
comply, and the qualified municipality is ultimately successful in such legal action; or147
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(B) A qualified municipality is subject to a legal action initiated by a third party148
seeking to enforce its rights as a result of the qualified municipality's failure to meet a149
duty or obligation provided by law, and the qualified municipality's failure to meet such150
duty or obligation was the direct result of actions taken by a county relating to the151
transition of services between the county and qualified municipality,152
then the county shall be responsible for reimbursing the qualified municipality for all153
legal expenses incurred by such qualified municipality in prosecuting or defending such154
action as well as any damages paid by the qualified municipality to such injured third155
party. The sovereign immunity of the county is waived to the extent necessary to156
effectuate this paragraph.157
(2) In the event that a county is found by a court of competent jurisdiction to have158
violated any duty or obligation arising from this chapter, the sovereign immunity of such159
county and the governmental immunity of all local officials of such local governing body160
is waived in all matters arising during a period of one year from the date of such judicial161
finding."162
SECTION 2.163
Chapter 8 of Title 33 of the Official Code of Georgia Annotated, relating to fees and taxes164
related to insurance, is amended by revising subsection (h) of Code Section 33-8-8.1, relating165
to county and municipal corporation taxes on life insurance companies, and by adding a new166
subsection to read as follows:167
"(h) For purposes of this Code section, population shall be measured by the United States168
decennial census of 1990 or any future such census plus any corrections or revisions169
contained in official statements by the United States Bureau of the Census made prior to170
the first day of September immediately preceding the distribution of the proceeds of such171
taxes by the Commissioner and any additional official census data received by the172
Commissioner from the United States Bureau of the Census or its successor agency173
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pertaining to any newly incorporated municipality. Any such official census data relating174
to any newly incorporated municipality shall be backdated to the initial filing provided for175
in subsection (e) of this Code section; provided, however, in the event that such census data176
is insufficient, the Commissioner shall use the census tract data from the charter of the177
newly incorporated municipality in lieu of the official census data. Such corrections,178
revisions, or additional data shall be certified to the Commissioner by the Office of179
Planning and Budget on or before August 31 of each year.180
(i) Notwithstanding any other provisions of this Code section to the contrary, in the event181
a new municipality is incorporated in a given year by the approval of a referendum of the182
electors of such municipality, and within 18 months of such referendum taking place such183
municipality has completed all steps necessary to impose a tax as provided for in this Code184
section, and the proceeds of such tax have not already been allocated by the Commissioner,185
such municipality shall be entitled to be considered a municipality pursuant to186
paragraph (2) of subsection (d) of this Code section and shall be allocated taxes collected187
pursuant to this Code section for the year such referendum took place."188
SECTION 3.189
Said chapter is further amended by revising subsection (c) and adding a new subsection to190
Code Section 33-8-8.2, relating to county and municipal corporation taxes on other than life191
insurance companies, as follows:192
"(b.1) Notwithstanding any other provisions of this Code section to the contrary, in the193
event a new municipality is incorporated in a given year by the approval of a referendum194
of the electors of such municipality, and within 18 months of such referendum taking place195
such municipality has completed all steps necessary to impose a tax as provided for in this196
Code section, and the proceeds of such tax have not already been allocated by the197
Commissioner, such municipality shall be entitled to be considered a municipality pursuant198
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to this Code section to be allocated taxes collected pursuant to this Code section for the199
year such referendum took place.200
(c) For purposes of this Code section, population shall be measured by the United States201
decennial census of 1990 or any future such census plus any corrections or revisions202
contained in official statements by the United States Bureau of the Census made prior to203
the first day of September immediately preceding the distribution of the proceeds of such204
taxes by the Commissioner and any additional official census data received by the205
Commissioner from the United States Bureau of the Census or its successor agency206
pertaining to any newly incorporated municipality. Any such official census data relating207
to any newly incorporated municipality shall be backdated to the initial filing provided for208
in paragraph (1) of subsection (b) of this Code section; provided, however, in the event that209
such census data is insufficient, the Commissioner shall use the census tract data from the210
charter of the newly incorporated municipality in lieu of the official census data. Such211
corrections, revisions, or additional data shall be certified to the Commissioner by the212
Office of Planning and Budget on or before August 31 of each year."213
SECTION 4.214
This Act shall become effective upon its approval by the Governor or upon its becoming law215
without such approval.216
SECTION 5.217
All laws and parts of laws in conflict with this Act are repealed.218
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