sb83_Committee_sub_LC_18_6172S_4.html
07 LC 18 6172S

The Senate State and Local Governmental Operations Committee offered the following substitute to SB 83:

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 change certain local government provisions with respect to newly created municipalities; to provide for legislative intent; to revise certain provisions relating to the removal of new municipal corporations from county special districts for the provision of local government services; to provide for the offer of sale to certain qualified municipalities of county property used as police stations, fire stations, cultural properties, or vacant properties within the geographical boundaries of the qualified municipality; to provide for procedures, conditions, and limitations; to specify additional service delivery strategy requirements regarding garbage and solid waste collection and disposal fees and fire protection services fees; to provide for additional limitations and requirements in the event a new municipality is created in a county subsequent to a referendum in which bonded indebtedness is approved; to provide an effective date; 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 revising Code Section 36-31-11, relating to removal of new municipalities from county special services districts, as follows:
"36-31-11.
When a municipal corporation is created by local Act within a county which has a special district for the provision of local government services consisting of the unincorporated area of the county, the territory within the new municipal corporation shall be removed from the special district except to the extent otherwise provided by Code Section 36-31-8 during a transition period and on such date as specified in the local Act creating the municipality except that the county may continue to levy within such territory any previously imposed tax for the purpose of retiring any special district debt until such time as such debt is retired."

SECTION 2.
Said title is further amended by adding a new Code section to read as follows:
"36-31-11.1.
(a) As used in this Code section, the term:
(1) 'Assessed value' for a county owned property means the assessed value determined by the county assessor´s office as of December 31 of the year prior to the date of incorporation.
(2) 'Assigned capital assets' for a county property means county owned capital assets, including, without limitation, vehicles, trucks, equipment, computers, and furniture located at such property or used by county employees working at or stationed at such property as of December 31 of the calendar year prior to the date of incorporation.
(3) 'Book value' for county owned capital assets means the book value of such assets determined in accordance with standard accounting practices as of the date the qualified municipality gives notice under subsection (h) of this Code section.
(4) 'Cultural property' means any qualified county property or facility, used in whole or in part as a park, green space, library, arts center, nature center, golf course, recreational facility, or any property or facility used for recreational, cultural, educational, or institutional purposes. Each cultural property shall be deemed to include assigned capital assets relative to that property.
(5) 'Date of incorporation' means the date the local Act creating a municipality becomes law.
(6) 'Qualified county property' means any police station, fire station, cultural property, or vacant property, including buildings and fixtures located on such property, that is located within the municipality. Each qualified property shall be deemed to include assigned capital assets relating to such property.
(7) 'Qualified municipality' means any new municipality created by local Act which becomes law on or after January 1, 2007, or any existing municipality for which the 24-month transition period provided for in Code Section 36-31-8 has not yet expired.
(8) 'Vacant property' means any water drainage areas, easements, retention ponds, ponds, lakes, forest, or vacant land areas, which are owned by the county and are not part of a cultural property.
(b) It is the intent of the legislature that the residents of a qualified municipality receive full credit for taxes paid for qualified county properties and assigned capital assets to be purchased by the qualified municipality; to assure that qualified municipalities will have the facilities necessary to deliver municipal services; and to provide certainty as to how the purchase price for such properties will be determined.
(c)(1) A qualified municipality located within a county which has a special district for the provision of fire services shall continue to be part of such special fire district where the local Act creating such qualified municipality so provides or where the governing authority of the qualified municipality, within 30 days of taking office, elects by formal resolution to continue to be part of the special fire district by formal resolution, provided the governing authority of the qualified municipality delivers a copy of such resolution to the governing authority of the county within ten business days after the date the resolution is adopted.
(2) If a qualified municipality elected initially to remain in a fire services special district, such municipality shall be removed from such fire services special district by adopting a resolution stating its intent to be removed from the district and the date of removal, provided the governing authority of the qualified municipality delivers a copy of such resolution to the governing authority of the county at least 30 days prior to the date of removal.
(d)(1) A qualified municipality located within a county which has an enterprise fund whereby the county charges fees on a periodic basis for the provision of water and sewer operating services, water and sewer construction, and water and sewer renewal and extension may elect to continue receiving such services for the same fees charged residents in the unincorporated area of the county. Such election may be set forth in the local Act creating such qualified municipality or be made by resolution of the governing authority of the qualified municipality within 30 days of taking office, provided the governing authority of the qualified municipality delivers a copy of such resolution to the governing authority of the county within ten business days after the date the resolution is adopted.
(2) Such qualified municipality may elect to terminate water and sewer operating services by adopting a resolution stating the date of termination, provided the governing authority of the qualified municipality delivers a copy of such resolution to the governing authority of the county at least 30 days prior to the date of removal.
(e)(1) A qualified municipality located within a county which has an enterprise fund whereby the county charges fees on a periodic basis for the provision of sanitation services, including garbage and solid waste disposal and collection, may elect to continue receiving such services for the same fees charged residents of the unincorporated area of the county. Such election may be set forth in the local Act creating such qualified municipality or be made by resolution the governing authority of the qualified municipality within 30 days of taking office, provided the governing authority of the qualified municipality delivers a copy of such resolution to the governing authority of the county within ten business days after the date the resolution is adopted.
(2) Such qualified municipality may elect to terminate sanitation services by adopting a resolution stating the date of removal, provided the governing authority of the qualified municipality delivers a copy of such resolution to the governing authority of the county at least 30 days prior to the date of removal.
(f) Within 60 days after the date of incorporation for the municipality, the governing authority of the county shall provide to each of the county commissioners and members of the General Assembly whose district includes any portion of the new municipality a listing of all county owned properties located in the qualified municipality and a listing of assigned capital assets for each such property. The listing of the capital assets shall also include the current book value of each capital asset. Such information shall be made available to the public for inspection and copying.
(g) The county shall not convey, otherwise encumber, or enter into any contractual obligations with respect to any qualified county property or capital assets located in the qualified municipality on or after the date of incorporation to the end of the transition period provided in Code Section 36-31-8. The governing authority of the county shall assign to the governing authority to the qualified municipality all of its right, title, and interest in any executory contract in effect on the date of incorporation with respect to any qualified county property or capital assets located in the qualified municipality.
(h) When a qualified municipality is removed from a special district as provided in either Code Section 36-31-11 or subsection (c) of this Code section, the qualified municipality may elect to purchase from the county qualified county properties, as provided in subsections (h) through (l) of this Code section. If a qualified municipality elects to purchase any qualified county property from the county, whether or not the property is listed on the county property listing as provided in section (f) of this Code section, the governing authority of the qualified municipality shall provide written notice to the governing authority of the county specifying the qualified county properties and assigned capital assets to be purchased and the date or dates the qualified municipality will assume ownership of such property. Such notice shall be provided with respect to each such property no less than 30 days prior to the date the qualified municipality intends to assume ownership of the property.
(i) If a qualified municipality elects to purchase any qualified county property, the purchase price may be determined by negotiation and agreement of the two governing authorities. In that event, all of the county´s right, title, and interest in such property shall be transferred to the governing authority of the qualified municipality as provided in such agreement.
(j) If a qualified municipality elects to purchase one or more county police stations or fire stations the purchase price shall be $5,000.00 for each police station or fire station.
(k) If a qualified municipality elects to purchase one or more cultural properties, the purchase price shall be $100.00 per acre. If a qualified municipality elects to purchase one or more vacant properties, the purchase price shall be one payment of $1,000.00 for all of the vacant properties to be purchased by the qualified municipality. Upon payment by the qualified municipality of the purchase price, all of the county´s right, title, and interest in such properties and any assigned capital for such properties that the qualified municipality elects to purchase shall be transferred to the governing authority of the qualified municipality. The governing authority of the county shall transfer, execute, and deliver to the governing authority of the qualified municipality such instruments as may be necessary to record the transfer of such right, title, and interest.
(l) In the event of a dispute between the county and the qualified municipality as to the purchase of any qualified county property, the following process is available to the parties:
(1) The county or qualified municipality may file a petition in superior court of the county seeking mandatory mediation. Such petition shall be assigned to a judge, pursuant to Code Section 15-1-9.1 or 15-6-13, who is not a judge in the circuit in which the county is located. The judge selected may also be a senior judge pursuant to Code Section 15-1-9.2 who resides in another circuit;
(2) The visiting or senior judge shall appoint a mediator within 30 days of receipt of the petition. Mediation shall commence within 30 days of the appointment of a mediator. The mandatory mediation process shall be completed within 60 days following the appointment of the mediator. A majority of the members of the governing body of the county and of the qualified municipality shall attend the initial mediation. Following the initial meeting, the mediation shall proceed in the manner established at the initial meeting. If there is no agreement on how the mediation should proceed, a majority of the members of the governing body of the county and of the qualified municipality shall be required to attend each mediation session unless another process is agreed upon. The cost of alternative dispute resolution authorized by this subsection shall be shared by the parties to the dispute pro rata based on each party´s population according to the most recent United States decennial census;
(3) If no agreement is reached at the conclusion of the mediation, either the county or the qualified municipality may petition the superior court and seek resolution of the items remaining in dispute. The visiting or senior judge shall conduct an evidentiary hearing or hearings as such judge deems necessary and render a decision with regard to the disputed items. The judge shall expedite the hearing and ruling if the court finds that the dispute before the court is causing an impairment of the use of any property for delivery of services to residents of the unincorporated area of the county or the qualified municipality.
(m) In the event a cultural property is transferred by a county to a qualified municipality under this Code section, the qualified municipality shall be prohibited from imposing or collecting user fees from residents of the county in excess of the amount of such fees imposed or collected from residents of the qualified municipality.
(n) In the event that a portion of a county owned property qualifies as a qualified county property, and the remainder of the property was used by the county during the year prior to the date of incorporation to provide services that will not be provided by the qualified municipality, the qualified municipality may elect to purchase the entire property or facility in the same manner as otherwise authorized under this Code section for the appropriate type of qualified county property. Following such purchase, the qualified municipality shall lease such portion of a building and fixtures which is to be continued as county-operated property back to the county. Such lease shall be for $10.00 per month for so long as the county continues to use such property for a county provided service that is not provided by the qualified municipality, unless otherwise agreed to by the governing authority of the qualified municipality and the governing authority of the county."

SECTION 3.
Said title is further amended in Code Section 36-82-1, relating to elections and requirements regarding bonded debt, by adding a new subsection to read as follows:
"(e.1)(1) As used in this subsection, the term:
(A) 'Bonds' means any bond to purchase properties or for capital improvements to existing properties or facilities which, at the time of the issuance of the bonds, were to be used by the county for the provision of any of the services listed in Article IX, Section II, Paragraph III of the Constitution of the State of Georgia and, subsequent to the issuance of the bonds, a new municipality took over the provision of such services.
(B) 'Net homestead digest' means for each qualified municipality the total net assessed value of all qualified homestead property located in that portion of a new municipality located in the county remaining after all other homestead exemptions are applied.
(C) 'Total homestead digest' means the total net assessed value of all qualified homestead property located in the county remaining after all other homestead exemptions are applied.
(2) This subsection shall apply only to a new municipal corporation created by local Act within a county which has a special district for the provision of local government services consisting of the unincorporated area of the county. In the event a new municipality lying wholly or partially in such a county is incorporated subsequent to the issuance of any bonds by the county, the governing authority of the county shall pay to the governing authority of the new municipality a portion of the bond proceeds. The amount to be paid shall be determined as follows:
(A) If the resolution pursuant to which such bonds were issued specifies the amount to be spent in the area included in the new municipality for the purchase of properties and for capital improvements, then such amount plus a proportionate amount of the interest earned by the county on the bond proceeds prior to the date payment to the new municipality is due, less any credit due under subparagraph (C) of this paragraph pursuant to which the bonds were issued shall be paid to the new municipality;
(B) If the resolution does not specify the amount to be spent in the area included in the new municipality for the purchase of properties and for capital improvements, then the amount to be paid shall be a portion of the bond proceeds plus a proportionate amount of the interest earned by the county on such proceeds prior to the date payment to the new municipality is due, less any credit due under subparagraph (C) of this paragraph. Such portion shall equal the net homestead digest for the new municipality divided by the total homestead digest;
(C) The county shall be given a credit against the amount due under either subparagraph (A) or (B) of this paragraph for any payments that were made by the county to any third party prior to the date the payment to the new municipality is due, were made pursuant to a valid contract in existence as of the date the local Act creating the new municipality became law, and were for the purchase of new properties or capital improvements in the area included in the new municipality; and
(D) The payment determined in accordance with subparagraphs (A) and (B) of this paragraph shall be due on the date the new municipality is removed from the special district as provided by Code Section 36-31-11 and in the local Act creating the municipality.
(3) If the county and municipality fail to reach an agreement as to the amount to be paid or any related matter, either the county or the municipality may petition the superior court and seek resolution of the items in dispute. Such petition shall be assigned to a judge, pursuant to Code Section 15-1-9.1 or 15-6-13, who is not a judge in the circuit in which the county is located. The judge selected may also be a senior judge pursuant to Code Section 15-1-9.2 who resides in another circuit. The visiting or senior judge shall conduct an evidentiary hearing or hearings as such judge deems necessary and render a decision with regard to the disputed items."

SECTION 4.
This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.