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06 LC 18 5183ER

House Bill 1323

By: Representatives O`Neal of the 146th, Keen of the 179th, Royal of the 171st, and Porter of the 143rd

A BILL TO BE ENTITLED
AN ACT

To amend Title 36 of the Official Code of Georgia Annotated, relating to local government, so as to provide for a comprehensive program for the creation of infrastructure development districts; to provide for a short title; to provide for definitions; to provide for the powers, duties, and authority of infrastructure development districts; to provide for a board to administer infrastructure development districts; to provide for appointment or election of members of an infrastructure development district board; to provide for levying taxes, fees, and assessments; to provide for the debt of infrastructure development districts; to provide for general obligation bonds, revenue bonds, notes, and other obligations of infrastructure development districts; to provide for the form of bonds; to provide for consolidation, termination, or dissolution of infrastructure development districts; to provide for related matters; to provide a contingent effective date; to provide for automatic repeal under certain circumstances; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Title 36 of the Official Code of Georgia Annotated, relating to local government, is amended by adding a new chapter at the end thereof, to be designated as Chapter 93, to read as follows:

"CHAPTER 93

36-93-1.

This chapter shall be known and may be cited as the 'Georgia Smart Infrastructure Growth Act of 2006.'

36-93-2.

As used in this chapter, the term:

(1) 'Assessable improvements' means, without limitation, any and all public improvements, infrastructure, and community facilities that a district is empowered to provide in accordance with this chapter.

(2) 'Board' means the governing board of a district or, if the board has been abolished, the board, body, or commission succeeding to the principal functions of the board.

(3) 'Bond' means any bonds, notes, or debt obligations of a district which are authorized to be issued under the Constitution and laws of this state.

(4) 'Cost,' when used with reference to any project, includes, but is not limited to:

(A) The expense of determining the feasibility or practicability of acquisition, construction, or reconstruction;

(B) The cost of surveys, estimates, plans, and specifications;

(D) Engineering, fiscal, and legal expenses and charges;

(E) The cost of all labor, materials, machinery, and equipment;

(F) The cost of all lands, properties, rights, easements, and franchises acquired;

(G) Financing charges;

(H) The creation of operation and maintenance reserve funds, debt service reserve funds, repair and replacement reserve funds, and debt service funds;

(I) Working capital;

(J) Interest charges incurred or estimated to be incurred on money borrowed prior to and during construction and acquisition and for such reasonable period of time after completion of construction or acquisition as the board may determine;

(K) The cost of issuance of bonds pursuant to this chapter, including advertisements, printing, and credit enhancement and related interest rate swaps, hedges, or similar items, whether incurred in connection with the issuance of or after the issuance of bonds;

(L) The cost of any election held pursuant to this chapter;

(M) The discount, if any, on the sale or exchange of bonds;

(N) Administrative expenses;

(O) Such other expenses as may be necessary or incidental to the acquisition, construction, or reconstruction of any project or to the financing of any project, or to the development of any lands within a district; and

(P) Payments, contributions, and dedications required as a condition to receive any government approval or permit necessary to accomplish any district purpose or the exercise of any district power.

(5) 'Deed restrictions' means those covenants, conditions, and restrictions contained in any applicable deeds, agreements, or declarations of covenants and restrictions that govern the use and operation of real property within the district and, for such covenants, conditions, and restrictions, there is no homeownerś association or property ownerś association having respective enforcement powers.

(6) 'District' means an infrastructure development district.

(7) 'District roads' means highways, streets, roads, alleys, sidewalks, bridges, and thoroughfares of all kinds and descriptions within a district, including any landscaping and storm drains associated therewith.

(8) 'Elector' means a landowner.

(9) 'Government member' means a member of the board named by a local government.

(10) 'Infrastructure development district' means a geographic area of development created pursuant to this chapter and limited to the performance of those specialized functions authorized by this chapter; the governing body of which is a board created and authorized to function specifically as prescribed in this chapter for the delivery of projects and the formation, powers, operation, duration, accountability, requirements for disclosure, and termination of which are as required by this chapter.

(11) 'Landowner' means any entity or person shown as a taxpayer for one or more parcels of real estate in a district as reflected on the most recent ad valorem tax records in the county or counties that have jurisdiction over the property included in the district as certified by the tax commissioner of the county or counties.

(12) 'Local government' means a county, municipality, or consolidated city-county government. For purposes of this chapter, local government may be read as the singular or plural.

(13) 'Petitioner member' means a member of the board named by the petitioner.

(14) 'Petitioner' means an entity, person, or group of persons who intends to create a district.

(15) 'Project' means any development, improvement, property, utility, facility, works, enterprise, or service existing on January 1, 2007, or thereafter undertaken or established under this chapter.

(16) 'Revenues' means the proceeds of taxes, assessments, rates, fees, rentals, or other charges prescribed, fixed, established, and collected by the board for the projects furnished by the district.

(17) 'Sewer system' means any plant, system, facility, or property serving a district, and any additions, extensions, and improvements constructed or acquired as part of the system, useful or necessary or having the present capacity for future use in connection with the collection, treatment, purification, or disposal of sewage, including, without limitation, industrial wastes resulting from any process of industry, manufacture, trade, or business or from the development of any natural resource. Without limiting the generality of the foregoing, the term 'sewer system' includes treatment plants, pumping stations, lift stations, valves, force mains, intercepting sewers, laterals, pressure lines, mains, and all necessary appurtenances and equipment; all sewer mains, laterals, and other devices for the reception and collection of sewage from premises connected to the devices; and all real and personal property and any interest in all real and personal property, rights, easements, and franchises of any nature relating to any such system and necessary or convenient for the operation of the system.

(18) 'Short-term borrowing' means a debt obligation of the district in the form of loan, note, warrant, or other evidence with a maturity not to exceed five years.

(19) 'Water management and control facilities' means any lakes, canals, ditches, reservoirs, dams, levees, sluiceways, floodways, pumping stations, or any other works, structures, or facilities for the conservation, control, development, utilization, and disposal of water, and any purposes appurtenant, necessary, or incidental to the facility serving a district. The term 'water management and control facilities' includes all real and personal property and any interest in the property, rights, easements, and franchises of any nature relating to any such water management and control facilities necessary or convenient for the acquisition, construction, reconstruction, operation, or maintenance of the water management and control facilities.

(20) 'Water system' means a system for the provision of piped water for human consumption within a district. Such term includes but is not limited to any collection, treatment, storage, and distribution facilities under the control of the operator of a water system and used primarily in connection with a water system and any collection or pretreatment storage facilities not under such control which are used primarily in connection with a water system. The term 'water system' includes all real and personal property and any interest in the property, rights, easements, and franchises of any nature relating to any such water system necessary or convenient for the acquisition, construction, reconstruction, operation, or maintenance of the water system.

36-93-3.

(a) When a petitioner proposes to create a district, a petition requesting creation shall be filed with the governing authority of the appropriate local government. The petition shall be signed by a majority in value of the holders of title of the taxable land within the proposed district, as determined by the most recent approved county ad valorem tax digest.

(b) The petition shall:

(1) Describe the boundaries of the proposed district by metes and bounds or by lot and block number if there is a recorded map or plat and survey of the area;

(2) State the general nature of the proposed projects to be undertaken, the necessity for the projects, and the cost of the projects as then estimated by the petitioner;

(3) Include a name of the proposed district which shall be generally descriptive of the locale of the proposed district followed by the words 'Infrastructure Development District,' or if a district is located within one county, it may be designated '____ County Infrastructure Development District No. ______'; provided, however, that the proposed district shall not have the same name as any other district in the same county; and

(4) Include a designation of four persons to be the initial private members of the board who shall serve in that office until replaced by elected members as provided in this chapter.

36-93-4.

(a) The petitioner shall submit a copy of the petition to the governing authority of the appropriate local government, the boundaries of which are contiguous with, or contain all or a portion of, the land within the external boundaries of the proposed district.

(b) A public hearing on the petition shall be conducted by the governing authority of the appropriate local government which has jurisdiction over the land to be included in the proposed district. The hearing shall include oral and written comments on the petition pertinent to the proposed district, including the factors specified in subsection (c) of this Code section. The hearing shall be held at an accessible location in the county or counties in which the district is to be located. The petitioner shall cause a notice of the hearing to be published in the legal organ of the county or municipality wherein the district́s land lies at least once a week for the four successive weeks immediately prior to the hearing. The notice shall give the time and place for the hearing, a description of the area to be included in the district, and any other relevant information which the governing authority of the appropriate local government may require. All affected local governments and the general public shall be given an opportunity to appear at the hearing and present oral or written comments on the petition.

(c) The governing authority of the local government which has jurisdiction over the land to be included in the district shall consider the entire record of the applicable hearing, the transcript of the hearing, and applicable factors and shall make a determination to grant or deny the petition for the establishment of a district. Such applicable factors shall include but are not limited to:

(1) Whether the statements contained within the petition have been found to be true and correct;

(2) Whether the area of land within the proposed district is of sufficient size, sufficiently compact, and sufficiently contiguous to be developed as one functional interrelated community;

(3) Whether creation of the district is a reasonable alternative for delivering community infrastructure and facilities to the area that will be served by the district; and

(4) Whether the community infrastructure and facilities of the district will be compatible with the capacity and uses of existing local and regional community services and facilities.

(d) The governing authority of the appropriate local government which has jurisdiction over the land to be included in the district shall not adopt any resolution or ordinance which would expand, modify, or delete any provision of this chapter. A resolution or ordinance establishing a district shall:

(1) Describe the external boundaries of the district and any real property within the boundaries of the district which is to be excluded;

(2) Name the persons designated to be the initial members of the board as described in Code Section 36-93-5;

(3) Name the district; and

(4) Include other information required or authorized by this chapter.

(e) The creation of a district pursuant to this chapter and the exercise of powers by or through a district as authorized by this chapter shall not be subject to Article 2 of Chapter 70 of this title. However, a summary shall be prepared by the local government within which the district is located describing the services and facilities to be provided within the district and the source of funding for such services and facilities. The summary shall be transmitted to the Department of Community Affairs on a form provided by such department. The summary shall be filed with the service delivery strategy agreement approved for the county within which the district is located. A copy of the summary shall also be transmitted to each party to the service delivery strategy agreement for information purposes.

36-93-5.

(a) The powers granted to a district pursuant to this chapter shall be exercised by the board. Except as provided in this Code section, the board shall consist of at least five members, and each member shall hold office for a term of four years and until a successor is appointed or elected and qualified. All members of the board must be at least 18 years old, a resident of this state, and a citizen of the United States. It shall not be a conflict of interest under the Constitution or any laws of this state or its political subdivisions for board members, employees, or officers of the district to be a landowner or a stockholder, officer, director, partner, member, or employee of a landowner in the district. As provided in this Code section, board members may also be required to be residents of the district.

(b) Unless expanded pursuant to this Code section, the initial board named under the resolution or ordinance establishing the district pursuant to Code Section 36-93-4 shall be comprised of four members named by the petitioner and one member chosen by each local government that issues a resolution or ordinance creating the district. In the event that a district is created by a resolution or ordinance by more than one local government, each local government may appoint one member to the board and the petitioner may appoint one additional petitioner member per additional government member.

(c)(1) Members of the board shall stand for election by electors pursuant to the following schedule:

(A) All government members shall stand for election within six months of the sale to the general public of land representing 20 percent of the geographic area within the boundaries of the district. If any residents reside within the district at the time of the election, only a resident of the district may qualify for election to this seat;

(B) The first petitioner member shall stand for election within six months of the sale to the general public of land representing 50 percent of the geographic area within the boundaries of the district. If any residents reside within the district at the time of the election, only a resident of the district may qualify for election to this seat;

(C) The second petitioner member shall stand for election within six months of the sale to the general public of land representing 80 percent of the geographic area within the boundaries of the district. If any residents reside within the district at the time of the election, only a resident of the district may qualify for election to this seat;

(D) The third petitioner member shall stand for election within six months of the sale to the general public of land representing 90 percent of the geographic area within the boundaries of the district. If any residents reside within the district at the time of the election, only a resident of the district may qualify for election to this seat; and

(E) All remaining petitioner members shall stand for election within six months of the sale to the general public of land representing 95 percent of the geographic area within the boundaries of the district or within ten years after the effective date of the resolution or ordinance establishing the district, whichever is sooner. If any residents reside within the district at the time of the election, only a resident of the district may qualify for election to this seat.

(2) The board shall organize district elections, which shall be held at a meeting of the electors of the district. Notice of the meeting and the election of board members shall be published once a week for two consecutive weeks in the legal organ of the county or municipality wherein the district́s land lies, and the last day of such publication shall be not fewer than 14 days or more than 28 days before the meeting. The electors, when assembled at a meeting held for an election, shall organize by electing by a majority of electors in attendance a chairperson who shall conduct the meeting. The chairperson may be any person present at the meeting. If the chairperson is an elector or proxy holder for an elector, he or she may nominate candidates and make and second motions.

(3) At a district election, each elector shall be entitled to cast one vote per acre of land owned by him or her and located within the district for each member to be elected. An elector may vote in person or by a properly executed written proxy. Each proxy must be signed by one of the landowners of the property for which the vote is cast and must contain the typed or printed name of the individual who signed the proxy; the street address, legal description of the property, or tax parcel identification number; and the number of authorized votes. If the proxy authorizes more than one vote, each property must be listed and the number of acres of each property must be included. The signature on a proxy need not be notarized. A fraction of an acre shall be treated as one acre, entitling the elector to one vote with respect thereto. Nominees for the board are elected by a majority of votes cast in accordance with this paragraph.

(4) On or before June 1 of each year, the board shall determine the amount of land sold within the district to the general public and the proportion of that land sold relative to the overall amount of land within the district boundary for purposes of determining whether any seats of the board shall be contested by election pursuant to this Code section. Such determination shall be made at a meeting of the board and shall become part of the official minutes of the district. Such calculation shall not consider land currently used or identified for future use of district facilities, infrastructure, or other district-specific purposes.

(5) Elections of board members shall be nonpartisan. Board members shall assume their office immediately upon their election.

(d)(1) Members of the board shall hold office for the terms for which they were elected or appointed and until their successors are chosen and qualified. If, during the term of office, a vacancy occurs, the remaining members of the board shall fill the vacancy by an appointment for the remainder of the unexpired term.

(2) Notwithstanding paragraph (1) of this subsection, a board may not appoint a person to fill a vacancy on the board if the person:

(A) Resigned from the board:

(i) In the two years preceding the vacancy date; or

(ii) On or after the vacancy date but before the vacancy is filled; or

(B) Was defeated in a board election held by the district in the two years preceding the vacancy date.

(e) A majority of the members of the board constitutes a quorum for the purposes of conducting its business and exercising its powers and for all other purposes. Action taken by the district shall be upon a vote of a majority of the members present unless general law or a rule of the district requires a greater number.

(f) As soon as practicable after each election or appointment, the board shall organize by electing one of its members as chairperson and by electing a secretary, who need not be a member of the board, and such other officers as the board may deem necessary.

(g) The board shall keep a permanent record book entitled 'Record of Proceedings of (name of district) Infrastructure Development District,' in which shall be recorded minutes of all meetings, resolutions, proceedings, certificates, and any and all corporate acts. The record book shall be open to inspection at a reasonable time and place. The record book shall be kept at the district office.

(h) All meetings of the board shall be open to the public and governed by the provisions of subsections (d) and (e) of Code Section 50-14-1. The board shall hold at least one annual meeting on the same date every year, such date to be published as part of the resolution or ordinance creating the district. The meeting shall address issues related to the district, including but not limited to current projects, district finances, and potential future projects.

(i) The district and the board shall enjoy the same rights and responsibilities of sovereign immunity as the state and its departments and agencies.

36-93-6.

(a) The board shall designate a resident of the state as treasurer of the district who shall have charge of the funds of the district. Such funds shall be disbursed only upon the order, or pursuant to the resolution, of the board. The board may give the treasurer additional powers and duties as the board may deem appropriate and may fix his or her compensation. The board may require the treasurer to give a bond in such amount, on such terms, and with such sureties as may be deemed satisfactory to the board to secure the performance by the treasurer of his or her powers and duties. The financial records of the board shall be audited by an independent certified public accountant at least once a year.

(b) The board is authorized to select as a depository for its funds any commercial bank or trust company, mutual savings bank, savings and loan association, or building and loan association existing under the laws of this state or of the United States domiciled in this state upon such terms and conditions as to the payment of interest by such depository upon the funds so deposited as the board may deem just and reasonable.

36-93-7.

(a) A district board shall set its fiscal year.

(b) At least 60 days prior to adoption of the annual budget for the district, the board shall submit to the local government having jurisdiction over the area included in the district, for purposes of disclosure and information only, the proposed annual budget for the ensuing fiscal year and any proposed long-term financial plan or program of the district for future operations. The local governing authorities may review the proposed annual budget and any long-term financial plan or program and may submit written comments to the board for its assistance and information in adopting its annual budget and long-term financial plan or program.

36-93-8.

The district shall have, and the board may exercise, the following general powers:

(1) To sue and be sued in the name of the district; to adopt and use a seal and authorize the use of a facsimile thereof; to acquire, by purchase, devise, or otherwise, and to dispose of real and personal property or any estate therein, however, pursuant to the provisions of Code Section 36-93-9, the district may not acquire property through eminent domain; and to make and execute contracts and other instruments necessary or convenient to the exercise of its powers;

(2) To contract for the services of consultants to perform planning, engineering, legal, or other appropriate services of a professional nature. Such contracts shall not be subject to open or competitive bidding;

(3) To borrow money and issue bonds, bond anticipation notes, certificates, warrants, notes, or other evidence of indebtedness to fund any project or portion thereof or cost incident thereto as provided in this chapter; to levy such tax and special assessments as may be authorized; to charge, collect, and enforce fees and other user charges; to apply for and use grants or loans of money or other property from the United States, this state, a unit of local government, or any person for any district purposes and enter into agreements required in connection therewith; and to hold, use, and dispose of such moneys or property for any district purposes in accordance with the terms of the gift, grant, loan, or agreement relating thereto. The district may incur debt without regard to the requirements of Article IX, Section V of the Constitution or any other provision of law prohibiting or restricting the borrowing of money or the creation of debt by political subdivisions of this state, which debt may be backed by the full faith, credit, and taxing power of the district but shall not be an obligation of this state, the local government or governments that approved the district, or any other unit of government of this state;

(4) To adopt resolutions and orders prescribing the powers, duties, and functions of the officers of the district; the conduct of the business of the district; and the maintenance of records of the district. The board may also adopt resolutions with respect to any of the projects of the district and define the area to be included therein. The board may also adopt resolutions which may be necessary for the conduct of district business;

(5) To maintain an office at such place or places as it may designate within a county in which the district is located, which office must be reasonably accessible to the landowners;

(6) To hold, control, and acquire by donation or purchase, or dispose of, any public easements, dedications to public use, platted reservations for public purposes, or any other easements, dedications, or reservations for those purposes authorized by this chapter and to make use of such easements, dedications, or reservations for any of the purposes authorized by this chapter;

(7) To lease as lessor or lessee to or from any person, firm, corporation, association, or body, public or private, any projects of the type that the district is authorized to undertake and facilities or property of any nature for the use of the district to carry out any of the purposes authorized by this chapter;

(8) To raise, by user charges or fees authorized by resolution of the board, amounts of money which are necessary for the conduct of district activities and upkeep of district facilities and to enforce their receipt and collection in the manner prescribed by resolution not inconsistent with law.

(A) The board is authorized to prescribe, fix, establish, and collect rates, fees, rentals, or other charges, and to revise the same from time to time, for the projects furnished by the district, including, but not limited to, recreational facilities, water management and control facilities, and water and sewer systems; to recover the costs of making connection with any district facility or system; and to provide for reasonable penalties against any user or property for any such rates, fees, rentals, or other charges that are delinquent.

(B) A copy of the schedule or schedules of such rates, fees, rentals, or charges shall be kept on file in the district office. The rates, fees, rentals, or charges so fixed for any class of users or property served shall be extended to cover any additional users or properties thereafter served which shall fall in the same class, without the necessity of any notice or hearing. Such rates may only be raised by the board.

(C) Rates, fees, rentals, and charges shall be just and equitable and uniform for users of the same class and when appropriate may be based or computed either upon the amount of service furnished, upon the number of average number of persons residing or working in or otherwise occupying the premises served, upon any other factor affecting the use of the facilities furnished, or upon any combination of the foregoing factors as may be determined by the board on an equitable basis.

(D) The rates, fees, rentals, or other charges prescribed shall be such as will produce revenues, together with any other assessments, taxes, revenues, or funds available or pledged for such purpose, at least sufficient to provide for following:

(i) All expenses of, including reserves for, the operation and maintenance of projects;

(ii) Payment when due of all bonds and interest thereon and costs related thereto for the payment of which revenues are, or shall have been, pledged or encumbered, including reserves for such purpose; and

(iii) Any other funds which may be required under the resolution or resolutions authorizing the issuance of bonds pursuant to this chapter.

(E) The board shall have the power to enter into contracts for the use of the projects of the district and with respect to the services and facilities furnished or to be furnished by the district;

(9) To cooperate with, or contract with, governmental agencies as may be necessary, convenient, incidental, or proper in connection with any of the powers, duties, or purposes authorized by this chapter;

(10) To assess and impose upon lands in the district ad valorem taxes and assessments as provided by this chapter;

(11) To finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or extend, equip, operate, and maintain systems, facilities, and basic infrastructures for the following:

(A) Water management and control facilities for the lands within the district and to connect some or any of such facilities with roads and bridges;

(B) Water supply, sewer, and waste-water management, reclamation, and reuse or any combination thereof, and to construct and operate connecting intercepting or outlet sewers and sewer mains and pipes and water mains, conduits, or pipelines in, along, and under any street, alley, highway, or other public place or ways; and to dispose of any effluent, residue, or other byproducts of such system or sewer system. Such sewer or sewer system shall have the same rights, duties, and obligations as publicly owned treatment works that discharge treated waste water; provided, however, that such water supply, sewer, and waste-water management, reclamation, and resuse systems shall be built to the specifications approved by this state for the local government in which such projects are located;

(C) Bridges or culverts that may be needed across any drain, ditch, canal, floodway, holding basin, excavation, public highway, tract, grade, fill, or cut and roadways over levees and embankments; and to construct any and all of such works and improvements across, through, or over any public right of way, highway, grade, fill, or cut;

(D)(i) District roads equal to or exceeding the specifications of the county in which such district roads are located;

(ii) Street lights; and

(iii) Buses, trolleys, transit shelters, ridesharing facilities and services, parking improvements, and related signage;

(E) Investigation and remediation costs associated with the cleanup of actual or perceived environmental contamination within the district under the supervision or direction of a competent governmental authority, unless the expenditure of investigation and remediation costs benefit any person who is a landowner within the district and who caused or contributed to the contamination;

(F) Conservation areas, mitigation areas, and wildlife habitat, including the maintenance of any plant or animal species, and any related interest in real or personal property, including green spaces and common areas;

(G) Security, including, but not limited to, guardhouses, fences and gates, electronic intrusion detection systems, and patrol cars, when authorized by proper governmental agencies, except that the district may not exercise any police power, but may contract with the appropriate local government agencies for an increased level of such services within the district boundaries;

(H) Indoor and outdoor recreational, cultural, and educational uses; and

(I) Any other project within or outside the boundaries of a district consistent with the local government comprehensive plan of the local government within which the project is to be located;

(12) To finance, plan, establish, acquire, construct or reconstruct, enlarge or extend, equip, and maintain additional facilities for:

(A) Fire prevention and control, including fire stations, water mains and plugs, fire trucks, and other vehicles and equipment when authorized by the governing authority of the local government that authorized the district;

(B) School buildings and related structures, which may be leased, sold, or donated for use in the public educational system when authorized by the local school board;

(D) Waste collection and disposal;

(13) To adopt and enforce appropriate resolutions in connection with the provision of one or more services through its projects;

(14)(A) To impose and enforce certain deed restrictions pertaining to the use and operation of real property within the district. The district may impose all or certain portions of the deed restrictions that:

(i) Relate to limitations or prohibitions that apply only to external structures and are deemed by the district to be generally beneficial for the district́s landowners and for which enforcement by the district is appropriate, as determined by the district́s board; or

(ii) Are consistent with the requirements of a development order or regulatory agency permit.

(B) The board may vote to adopt deed restrictions only when all of the following conditions exist:

(i) The district́s geographic area contains no homeownerś associations;

(ii) The majority of the board has been elected by electors pursuant to this chapter; and

(iii) The declarant or other party establishing such deed restrictions has provided the board with a written agreement that such deed restrictions may be adopted by the district. A memorandum of the agreement shall be recorded in the public records.

(C) Within 60 days after such deed restrictions take effect, the district shall cause to be recorded in the property records in the county in which the district is located the deed restrictions, stating generally what deed restrictions were adopted and where a copy of the deed restrictions may be obtained. Districts may impose fines for violations of such deed restrictions and enforce such deed restrictions and fines through injunctive relief; and

(15) To exercise all of the powers necessary, convenient, incidental, or proper in connection with any of the powers, duties, or purposes authorized by this chapter, including any power granted by the laws of this state to public or private corporations which is not in conflict with the purposes of the district.

36-93-9.

A district formed under this chapter shall not have the power of eminent domain and nothing in this chapter shall be construed to give a district such power.

36-93-10.

A district may adopt and enforce reasonable rules and regulations to:

(1) Secure and maintain safe, sanitary, and adequate plumbing installations, connections, and appurtenances as subsidiary parts of its sanitary sewer system;

(2) Preserve the sanitary condition of all water controlled by the district;

(3) Prevent waste or the unauthorized use of water controlled by the district;

(4) Provide and regulate a safe and adequate freshwater distribution system; and

(5) Regulate activities on any land or any easement owned or controlled by the district; provided, however, the local government shall retain all zoning powers and land use control rights under this Code.

36-93-11.

(a) In addition to the other powers provided for in this chapter, and not in limitation thereof, the district shall have the power to issue from time to time notes in anticipation of such bonds as validated and to renew from time to time any such notes by the issuance of new notes, whether the notes to be renewed have or have not matured. The district may issue such bond anticipation notes only to provide funds which otherwise would be provided by the issuance of the bonds as validated. Bond anticipation notes may be authorized, sold, executed, and delivered in the same manner as bonds. As with its bonds, the district may sell notes at public or private sale. Any resolution or resolutions authorizing notes of the district or any issue thereof may contain any provisions which the district is authorized to include in any resolution or resolutions authorizing bonds of the district or any issue thereof and which the district is authorized to include in any bonds. Validations of bonds shall be a condition precedent to the issuance of notes, but it shall not be required that notes be judicially validated. Bond anticipation notes shall not be issued in an amount exceeding the par value of the bonds in anticipation of which they are to be issued.

(b) The district may, at any time, obtain loans for short term borrowing, in such amounts and on such terms and conditions as the board may approve for the purpose of paying any of the expenses of the district or any cost incurred or that may be incurred in connection with any of the projects of the district and related operation and maintenance costs of the projects of the district. Such loans shall bear interest as the board may determine and may be payable from and secured by a pledge of such funds, revenues, taxes, and assessments as the board may determine.

36-93-12.

(a) Bonds, notes, or other obligations issued by the district, other than general obligation bonds, shall be paid solely from revenues and other property pledged to pay such bonds, notes, or other obligations. General obligation bonds issued by the district shall constitute a general obligation of the district to the repayment of which the full faith, credit, and taxing power of the district shall be pledged. The district may issue bonds secured by both general obligation and revenue pledges.

(b) All bonds, notes, and other obligations of the district shall be authorized by resolution of its board.

(c) Bonds, notes, or other obligations shall bear such date or dates, shall mature at such time or times not more than 40 years from their respective dates, shall bear interest at such rate or rates which may be fixed or may fluctuate or otherwise change from time to time, may be subject to interest rate hedge arrangements, shall be subject to redemption on such terms, and shall contain such other terms, provisions, covenants, assignments, and conditions as the resolution authorizing the issuance of such bonds, notes, or other obligations may permit or provide. The resolution authorizing the issuance of the bonds may delegate to such officers charged with the responsibility of issuing such bonds the authority to set the final terms, conditions, and details thereof, including the interest rate or rates and maturity, within reasonable parameters established and set forth in such resolution.

(d) The board shall have power from time to time and whenever it deems it expedient to refund any bonds by the issuance of new bonds, whether or not the bonds to be refunded have matured. The board may issue bonds partly to refund bonds then outstanding and partly for any other purpose permitted under this chapter. The refunding bonds may be exchanged for the bonds to be refunded, with such cash adjustments as may be agreed upon, or may be sold and the proceeds applied to the purchase or redemption of the bonds to be refunded.

(e) There shall be no limitation upon the interest rates of any maximum interest rate or rates on any bonds, notes, or other obligations of the district; and the usury laws of this state shall not apply to bonds, notes, or other obligations of the district.

(f) Bonds issued by the district may be in such form, either coupon or fully registered, or both coupon and fully registered, and may be subject to such exchangeability and transferability provisions as the bond resolution authorizing the issuance of such bonds or any indenture or trust agreement may provide.

(g) Bonds shall bear a certificate of validation. In the case where property within the district is within multiple jurisdictions, validation shall occur in the jurisdiction within which the majority of the property lies. The signature of the treasurer of the district may be made on the certificate of validation of such bonds by facsimile or by manual execution, stating the date on which such bonds were validated; and such entry shall be original evidence in any court of this state.

(h) In lieu of specifying the rate or rates of interest which such bonds are to bear and the principal amount and maturities of such bonds, the notice to the district attorney, the notice to the public of the time, place, and date of the validation hearing, and the petition and complaint for validation may state that the bonds when issued will bear interest at a rate not exceeding a maximum per annum rate of interest which may be fixed or may fluctuate or otherwise change from time to time, and that the principal amount will not exceed an amount specified in and the final maturity date will not be later than a date specified in such notices, petition, and complaint or may state that, in the event the bonds are to bear different rates of interest for different maturity dates, none of such rates will exceed the maximum rate so specified which may be fixed or may fluctuate or otherwise change from time to time; provided, however, that nothing in this section shall be construed as prohibiting or restricting the right of the board to sell such bonds at a discount, even if in doing so the effective interest cost resulting therefrom would exceed the maximum per annum interest rate specified in such notices and in the petition and complaint.

(i) The terms 'cost' and 'project,' when used in the phrases 'cost of the project' and 'cost of any project' in bond resolutions of the board, in bonds, notes, or other obligations of the district, or in notices of proceedings to validate such bonds, notes, or other obligations of the district, shall have the same meaning as provided in paragraphs (4) and (15) of Code Section 36-92-2.

(j) Pursuant to this chapter, all bonds issued under this chapter and interest paid and all fees, charges, and other revenues derived by the district from the projects provided by this chapter are exempt from all taxes of the state or of any political subdivision, agency, or instrumentality thereof.

(k) All bonds issued under this chapter shall be validated pursuant to the procedures set forth in this title.

36-93-13.

Any issue of bonds may be secured by a trust agreement by and between the district and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or outside the state. The resolution authorizing the issuance of the bonds or trust agreement may provide for the pledge of the revenues to be received from any projects of the district and may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as the board may approve, including, without limitation, covenants setting forth the duties of the district in relation to: the acquisition, construction, reconstruction, improvement, maintenance, repair, operation, and insurance of any projects; the fixing and revising of the rates, fees, and charges; and the custody, safeguarding, and application of all moneys and for the employment of consulting engineers in connection with such acquisition, construction, reconstruction, improvement, maintenance, repair, or operation. It shall be lawful for any bank or trust company within or outside the state which may act as a depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the district. The resolution authorizing the issuance of the bonds or trust agreement may set forth the rights and remedies of the bondholders and of the trustee, if any, and may restrict the individual right of action by bondholders. The board may provide for the payment of proceeds of the sale of the bonds and the revenues of any project to such officer, board, or depository as it may designate for the custody thereof and may provide for the method of disbursement thereof with such safeguards and restrictions as it may determine. All expenses incurred in carrying out the provisions of such resolution or trust agreement may be treated as part of the cost of the project to which such trust agreement pertains.

36-93-14.

(a) The board shall have the power to levy and assess an ad valorem tax on all the taxable property in the district to construct and maintain projects; to pay the principal of, and interest on, any general obligation or revenue bonds of the district; and to provide for any sinking or other funds established in connection with any such bonds. An ad valorem tax levied by the board for operating purposes, exclusive of debt service on bonds, shall not exceed five mills. The ad valorem tax provided for by this chapter shall be in addition to all other ad valorem taxes provided for by law.

(b) The board may levy a maintenance special assessment to maintain and preserve the facilities and projects of the district; to pay the principal of, and interest on, any general obligation or revenue bonds of the district; and to provide for any sinking or other funds established in connection with any such bonds. This assessment may be evidenced to and certified to the appropriate tax authority of the local government by the board not later than June 15 of each year and shall be entered by the appropriate tax authority of the local government on the county tax rolls and shall be collected and enforced, and the proceeds therefrom shall be paid to the district, as provided for in this Code section. Maintenance special assessments shall be a lien on the property against which assessed until paid and shall be enforceable in like manner as county taxes. The amount of the maintenance special assessment for the exercise of the district́s powers under this chapter shall be determined and assessed by the board upon such lands, which may be all of the lands within the district benefited by the maintenance thereof, apportioned between the benefited lands in proportion to the benefits received by each tract of land.

(c) Any tax, fee, or assessment levied pursuant to this Code section shall not exceed ten mills on each dollar of the assessed value of all such real property. Except for specially designated property as provided for in Code Section 36-93-25, the taxes, fees, and assessments levied by the board upon the properties shall be equitably apportioned among the properties according to the need for infrastructure created by the degree of density of development within the district and not for the purpose of providing infrastructure to the county or municipality as a whole. Any tax, fee, or assessment so levied shall be collected by the county in which the property is located using the methods and procedures as designated by the county commission. Delinquent taxes, fees, and assessments shall bear the same interest and penalties as ad valorem taxes of the county in which the property is located and may be enforced and collected in the same manner. The county in which the property is located may retain a fee to reimburse the actual increased costs, if any, of preparing and mailing notices to collect such taxes, fees, and assessments for the board. The remaining proceeds shall be transmitted by the county to the board and shall be expended by the board only for the purposes authorized in this chapter.

(d) The board shall levy the taxes and assessments provided for in this Code section between January 1 and June 1 of each calendar year and shall notify in writing the appropriate tax authority of the county in which the property is located by June 15 each year so the county may include the levy on the countýs regular ad valorem tax bills.

(e) If a parcel of real property is removed from the district or otherwise becomes nontaxable, it shall continue to bear its tax millage then extant upon such event for bonded indebtedness of the district then outstanding until any bonded indebtedness then outstanding is paid or refunded.

(f) Each property for which there is paid taxes, fees, or assessments levied by the board for any project shall receive a credit equal to the present value of all such taxes, fees, and assessments toward any impact fee as may be levied by the county against said property for system improvements which are in the same category as said public facility in accordance with Chapter 71 of this title, the 'Georgia Development Impact Fee Act.'

(g) All bonds issued according to this chapter and interest paid and all fees, charges, and other revenues derived by the district from the projects provided by this chapter are exempt from all taxes of the state or of any political subdivision, agency, or instrumentality thereof.

(h) With the exception of maintenance special assessments, district assessments may be made payable in no more than 40 yearly installments.

(i) The proceeds of taxes, fees, and assessments levied by the board shall be used only for the purpose of providing infrastructure and facilities which are or will be required by the degree of density of development within the infrastructure development district and not for the purpose of providing those infrastructure and facilities for the county or municipality as a whole.

36-93-15.

All taxes and assessments of the district provided for in this chapter, together with all penalties for default in the payment of the same and all costs in collecting the same, including a reasonable attorneýs fee fixed by the court and taxed as a cost in the action brought to enforce payment, shall, from January 1 for each year the property is liable to assessment and until paid, constitute a lien of equal dignity with the liens for state and county taxes and other taxes of equal dignity with state and county taxes upon all the lands against which such taxes shall be levied. A sale of any of the real property within the district for state, county, or other taxes shall not operate to relieve or release the property so sold from the lien for subsequent district taxes or installments of district taxes, which lien may be enforced against such property as though no such sale thereof had been made.

36-93-16.

(a) The district has the right to:

(1) Pay any delinquent state, county, district, municipal, or other tax or assessment upon lands located wholly or partially within the boundaries of the district; and

(2) Redeem or purchase any tax sales certificates issued or sold on account of any state, county, district, municipal, or other taxes or assessments upon lands located wholly or partially within the boundaries of the district.

(b) Delinquent taxes paid, or tax sales certificates redeemed or purchased, by the district, together with all penalties for the default in payment of the same and all costs in collecting the same and a reasonable attorneýs fee, shall constitute a lien in favor of the district of equal dignity with the liens of state and county taxes and other taxes of equal dignity with state and county taxes upon all the real property against which the taxes were levied.

(c) In any sale of land, the district may certify to the clerk of the superior court of the county holding such sale the amount of taxes due to the district upon the lands sought to be sold; and the district shall share in the disbursement of the sales proceeds in accordance with the provisions of this chapter and other laws of the state.

36-93-17.

To the full extent permitted by law, the district may require all lands, buildings, premises, persons, firms, and corporations within the district to use the water management and control facilities and water and sewer facilities of the district or any other facility or service of the district when the district relies on the collection of any rates, fees, or charges to provide said facility or service or to pay principal and interest on debt obligations secured by a pledge of revenues generated by the collection of such rates, fees, and charges.

36-93-18.

In the event that any rates, fees, rentals, charges, or delinquent penalties are not paid when due and are in default for 60 days or more, the unpaid balance thereof and all interest accrued thereon, together with reasonable attorneýs fees and costs, may be recovered by the district in a civil action.

36-93-19.

In the event the fees, rentals, or other charges for water and sewer services, or either of them, are not paid when due, the board shall have the power, under such reasonable rules and regulations as the board may adopt, to discontinue and shut off both water and sewer services until such fees, rentals, or other charges, including interest, penalties, and charges for the shutting off and discontinuance and the restoration of such water and sewer services or both, are fully paid; and, for such purposes, the board may enter on any lands, waters, or premises of any person, firm, corporation, or body, public or private, within the district limits. Delinquent fees, rentals, or other charges, together with interest, penalties, and charges for the shutting off and discontinuance and the restoration of services and facilities and reasonable attorneýs fees and other expenses, may be recovered by the district, which may also enforce payment of delinquent fees, rentals, or other charges by any other lawful method of enforcement.

36-93-20.

The board or any aggrieved person may have recourse to such remedies in law and at equity as may be necessary to ensure compliance with the provisions of this chapter, including injunctive relief to enjoin or restrain any person from violating the provisions of this chapter or any bylaws, resolutions, regulations, rules, codes, or orders adopted under this chapter. In case any building or structure is erected, constructed, reconstructed, altered, repaired, converted, or maintained, or any building, structure, land, or water is used, in violation of this chapter or of any code, order, resolution, or other regulation made by the board under authority conferred by this chapter or under law, the board, any landowner, or any citizen residing in the district may institute any appropriate action or proceeding to prevent such unlawful erection, construction, reconstruction, alteration, repair, conversion, maintenance, or use; to restrain, correct, or prevent such violation; to prevent the occupancy of such building, structure, land, or water; and to prevent any illegal act, conduct, business, or use in or about such premises, land, or water.

36-93-21.

Any suit or action brought or maintained against the district for damages arising out of tort, including, without limitation, any claim arising from an act causing an injury or loss of property, personal injury, or death, shall be subject to the limitations provided in Code Section 50-21-29.

36-93-22.

Property, real or personal, that belongs to or is owned by the district, or in which the district has an interest, shall be exempt from levy and sale by virtue of an execution; and no execution or other judicial process shall issue against such property, nor shall any judgment against the district be a charge or lien on its property or revenues; however, nothing contained herein shall apply to or limit the rights of bondholders to pursue any remedy for the enforcement of any lien or pledge given by the district in connection with any of the bonds or obligations of the district.

36-93-23.

(a) The board may petition to contract or expand the boundaries of a district in the following manner:

(1) The petition to contract or expand the boundaries of a district shall contain the same information required for a petition for creation pursuant to Code Section 36-93-3. In addition, if the petitioner seeks to expand the district, the petition shall describe the proposed timetable for construction of any district projects in the area, the estimated cost of constructing the proposed projects, and the designation of the future general distribution, location, and extent of public and private uses of land proposed for the area by the future land use plan element of the local government comprehensive plan currently in force. If the petitioner seeks to contract the district, the petition shall describe what projects are currently provided by the district to the area being removed, and the designation of the future general distribution, location, and extent of public and private uses of land proposed for the area by the future land element of the adopted local government comprehensive plan; and

(2) A public hearing shall be held in the same manner and with the same public notice as required for creation of a new district pursuant to this chapter. The appropriate local government shall consider the record of the public hearing and the factors set forth in Code Section 36-93-3 in making its determination to grant or deny the petition.

(b) The district shall remain in existence unless:

(1) The district is merged with another district as provided by subsection (c) of this Code section;

(2) All of the specific community development systems, facilities, and services that it is authorized to perform have been transferred to the local government; or

(3) The district is dissolved as provided by subsection (e) of this Code section.

(c) The district may merge with other districts upon filing a petition, which shall contain the same information required for a petition for creation pursuant to Code Section 36-93-3. The new district formed by a merger involving existing districts shall assume all indebtedness of, and receive title to, all property owned by the preexisting districts. Prior to filing a petition for merger, the districts desiring to merge shall enter into a merger agreement and shall provide for the proper allocation of the indebtedness so assumed and the manner in which the assumed debt shall be retired. The approval of the merger agreement by the board of each district shall constitute consent of the landowners within the district.

(d) Upon the request of the board of the district, the governing authority of the appropriate county or municipality within which the district lies may adopt a resolution or ordinance providing for a plan for the transfer of a specific district service or infrastructure from a district to the local government. The plan must provide for the assumption and guarantee of the district debt that is related to the service or infrastructure by the local government.

(e)(1) Dissolution of the district may be allowed under the following circumstances:

(A) Upon the transfer of all of the community development services of the district to the local government, the district shall be dissolved in accordance with a plan of dissolution adopted by the board and filed with the clerk of the superior court;

(B) If, within five years after the effective date of the resolution or ordinance establishing the district, a landowner has not received a building permit authorizing construction of a building or structure within the district, then the district shall be automatically dissolved; or

(C) If a district has no outstanding financial obligations and no operating or maintenance responsibilities, upon the petition of the district, the district may be dissolved by a resolution or ordinance of the local government that created the district.

(2) Prior to any dissolution, debts and other obligations of the district must be fully paid or payment otherwise provided for.

36-93-24.

(a) The district shall take affirmative steps to provide for the full disclosure of information relating to the public financing and maintenance of improvements to real property undertaken by the district. The required information shall be made available to all existing residents, and to all prospective residents, of the district. The district shall furnish each developer of a development within the district with sufficient copies of that information to provide a copy to each prospective initial purchaser of property in that development; and any developer of a development within the district, when required by law to provide a public offering statement, shall include a copy of information relating to the public financing and maintenance of improvements in the public offering statement.

(b) Subsequent to the establishment of a district under this chapter, each contract for the initial sale of a parcel of real property, each contract for the initial sale of a residential unit, and each lease agreement for the rental of a residential unit within the district shall include, immediately prior to the space reserved in the contract for the signature of the purchaser, the following disclosure statement in boldface and conspicuous type which is larger than the type in the remaining text of the contract: 'THE (Name of District) INFRASTRUCTURE DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC INFRASTRUCTURE OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW.'

(c) Within 30 days after the effective date of a resolution or ordinance establishing a district under this chapter, the district shall cause to be recorded in the property records in the county in which it is located a 'Notice of Establishment of the ______ Infrastructure Development District.' The notice shall, at a minimum, include the legal description of the district and a copy of the disclosure statement specified in subsection (b) of this Code section.

36-93-25.

(a) A district that is composed of at least 1,500 acres may define areas or designate certain property of the district to pay for improvements, facilities, or services that primarily benefit that designated area or property and do not generally and directly benefit the district as a whole.

(b) The board shall state in its designation the physical and economic reasons, the particular diverse local needs, or the comparative potential benefits of the defined areas or designated property in the district that make it necessary or equitable to levy all or part of the tax on a defined area or designated property of the district.

(c)(1) The board shall adopt a proposed plan that defines the particular area to be taxed by metes and bounds or designates the property to be served, affected, and taxed.

(2) The board shall adopt a proposed plan for improvements in the defined area or to serve the designated property.

(3) The board shall adopt a proposed plan of taxation to apply to the defined area or designated property that may or may not be in addition to other taxes imposed by the district on the same area or property.

(d) After adoption of the plans as provided for in this Code section, the district, under the limitations of this Code section, may apply separately, differently, equitably, and specifically its taxing and assessment powers and lien authority to the defined area or designated property to provide funds to construct, administer, maintain, and operate improvements and facilities that primarily benefit the defined area or designated property.

(e) After adoption of the plans as provided for in this Code section, the district may issue its bonds to provide the specific projects included in the plans adopted for the defined area or to serve the designated property, and shall provide the improvements and facilities.

(f) The district may issue bonds that pledge only the faith and credit based on the property values in the defined area and may not pledge the full faith and credit of the district.

(g) In lieu of the general notice required under Code Section 36-93-24, a person who sells or conveys real property located within the defined area or designated property of the district shall provide the following prescribed notice: 'THE (Name of District) INFRASTRUCTURE DEVELOPMENT DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS, ON THIS PROPERTY. THE REAL PROPERTY DESCRIBED BELOW, WHICH YOU ARE ABOUT TO PURCHASE, IS LOCATED WITHIN A DESIGNATED AREA OF THE DISTRICT AND YOUR LAND WILL BE SUBJECT TO A HIGHER TAX THAN OTHER LAND WITHIN THE DISTRICT. YOUR RATE OF TAXES WILL BE HIGHER BY $_____ ON EACH $1,000.00 OF ASSESSED VALUATION THAN LAND NOT WITHIN THE DEFINED AREA. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC INFRASTRUCTURE OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW.'"

SECTION 2.

This Act shall become effective on January 1, 2007; provided, however, that this Act shall only become effective on January 1, 2007, upon the ratification of a resolution at the November, 2006, state-wide general election that amends the Constitution so as to authorize the General assembly to provide by general law for the creation and comprehensive regulation of infrastructure development districts. If such resolution is not so ratified, this Act shall not become effective and shall stand repealed in its entirety on January 1, 2007.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.