Local Government Organization of County Government: 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; Provide for a Short Title; Provide for Definitions; Provide for the Powers, Duties, and Authority of Infrastructure Development Districts; Provide for a Board to Administer Infrastructure Development Districts; Provide for Appointment or Election of Members of an Infrastructure Development District Board; Provide for Fees and Assessments; Provide for the Debt of Infrastructure Development Districts; Provide for Bonds, Notes and Other Obligations of Infrastructure Development Districts; Provide for the Form of Bonds; Provide for Consolidation, Termination, or Dissolution of Infrastructure Development Districts; Provide for Notice of the Creation of the District; Amend Chapter 5 of Title 12 of the Official Code of Georgia Annotated, Relating to Water Resources, So as to Ch

• Jurisdiction: Georgia,United States
• Publication year: 2010
• Citation: Vol. 24 No. 1

Georgia State University Law Review

Volume 24 . .

Issue 1 Fall 2007 ¹³

4-5-2012

LOCAL GOVERNMENT Organization of County Government: 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; Provide for a Short Title; Provide for Definitions; Provide for the Powers, Duties, and Authority of Infrastructure Development Districts; Provide for a Board to Administer Infrastructure Development Districts; Provide for Appointment or Election of Members of an Infrastructure Development District Board; Provide for Fees and Assessments; Provide for the

Recommended Citation

Georgia State University Law Review (2007) "LOCAL GOVERNMENT Organization of County Government: 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; Provide for a Short Title; Provide for Definitions; Provide for the Powers, Duties, and Authority of Infrastructure Development Districts; Provide for a Board to Administer Infrastructure Development Districts; Provide for Appointment or Election of Members of an Infrastructure Development District Board; Provide for Fees and Assessments; Provide for the Debt of Infrastructure Development Districts; Provide for Bonds, Notes and Other Obligations of Infrastructure Development Districts; Provide for the Form of Bonds; Provide for Consolidation, Termination, or Dissolution of Infrastructure Development Districts; Provide for Notice of the Creation of the District; Amend Chapter 5 of Title 12 of the Official Code of Georgia Annotated, Relating to Water Resources, so as to Change Certain Provisions Regarding Permits for Discharging Pollutants into Waters; to Change Certain Provisions Regarding Permits for Surface-Water Withdrawal, Diversion, or Impoundment; to Change Certain Provisions Regarding Permits for Withdrawing, Obtaining, or Using Ground Water; Provide for Related Matters; Provide a Contingent Effective Date; Provide for Automatic Repeal Under Certain Circumstances; Repeal Conflicting Laws; and for Other

Debt of Infrastructure Development Districts; Provide for Bonds, Notes and Other Obligations of Infrastructure Development Districts; Provide for the Form of Bonds; Provide for Consolidation, Termination, or Dissolution of Infrastructure Development Districts; Provide for Notice of the Creation of the District; Amend Chapter 5 of Title 12 of the Official Code of Georgia Annotated, Relating to Water Resources, so as to Change Certain Provisions Regarding Permits for Discharging Pollutants into Waters; to Change Certain Provisions Regarding Permits for Surface-Water Withdrawal, Diversion, or Impoundment; to Change Certain Provisions Regarding Permits for Withdrawing, Obtaining, or Using Ground Water; Provide for Related Matters; Provide a Contingent Effective Date; Provide for Automatic Repeal Under Certain Circumstances; Repeal Conflicting Laws; and for Other Purposes

Georgia State University Law Review

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LOCAL GOVERNMENT

Organization of County Government: 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; Provide for a Short Title;

Provide for Definitions; Provide for the Powers, Duties, and Authority of Infrastructure Development Districts; Provide for a Board to Administer Infrastructure Development Districts; Provide for Appointment or Election of Members of an Infrastructure Development District Board; Provide for Fees and Assessments;

Provide for the Debt of Infrastructure Development Districts; Provide for Bonds, Notes, and Other Obligations of Infrastructure Development Districts; Provide for the Form of Bonds; Provide for Consolidation, Termination, or Dissolution of Infrastructure Development Districts; Provide for Notice of the Creation of the

District; Amend Chapter 5 of Title 12 of the Official Code of Georgia Annotated, Relating to Water Resources, so as to Change Certain Provisions Regarding Permits for Discharging Pollutants into Waters; to Change Certain Provisions Regarding Permits for Surface-Water Withdrawal, Diversion, or Impoundment; to Change Certain Provisions Regarding Permits for Withdrawing, Obtaining, or Using Ground Water; Provide for Related Matters; Provide a Contingent Effective Date; Provide for Automatic Repeal Under Certain Circumstances; Repeal Conflicting Laws; and for Other

Purposes

Code Sections:

O.C.G.A. §§ 36-91-1 to -26 (new); § 12-5-30 (amended); § 12-5-31 (amended); § 12-5-96 (amended)

Bill Number: Act Number: Georgia Laws: Summary:

SB 200 372

2007 Ga. Laws 739

The Act authorizes the General Assembly to create infrastructure development districts (IDDs) by

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1

256 GEORGIA STATE UNIVERSITY LAW REVIEW [Vol. 24:255

general law. An BDD is a geographic area in which developers may issue tax-exempt bonds to finance infrastructure that supports new development inside the district. These new entities will provide a way for local governments experiencing population growth pressures to transfer the cost of financing public infrastructure to the private sector. The Act establishes procedures that allow landowners to petition a local government to create an IDD and, if approved, the procedures for creating a governing board. Most significantly, it provides the governing board with the authority to fund projects and maintain district infrastructure by borrowing money, issuing tax-exempt bonds, and levying assessments on new landowners, without regard to constitutional debt limitations. Senate Resolution 309 is the enabling legislation for Senate Bill 200, and calls for a constitutional amendment that would authorize the Georgia General Assembly to create and regulate Infrastructure Development Districts.¹ Effective Date: January 1, 2009, contingent upon the

ratification of Senate Resolution 309, at the November 4, 2008, general election.

1. SR 309, as passed, 2007 Ga. Gen. Assem. The ballot submitting the proposed amendment will ask, "Shall the Constitution of Georgia be amended so as to authorize the General Assembly to provide by general law for the creation and comprehensive regulation of infrastructure development districts for the provision of infrastructure as authorized by local governments?" Id.

2007] LEGISLATIVE REVIEW 257

History

Georgia is the fourth-fastest growing state in the nation, with 250,000 new residents projected to move into the state every year for the foreseeable future.² This rapid population growth has created a great need for new infrastructure such as roads, sewers, and police stations.³ The expense of providing this infrastructure falls heavily on local governments. Impact fees⁴ do not cover all of the costs associated with new development, like additional schools.⁵ Current city and county residents often object when property taxes are raised to cover the cost of infrastructure that will support new developments.⁶

The challenge of funding new infrastructure without raising taxes has led other rapidly growing states to approve the creation of "development districts."⁷ Called Infrastructure Development Districts (IDDs) in Senate Bill 200, these new entities intend to make growth pay for itself, especially in cash-poor counties that cannot provide infrastructure quickly enough to keep up with the influx of new residents.⁸ SB 200 establishes the procedures for landowners— usually developers—to petition the appropriate local government to approve an EDD.⁹ Once approved, a governing board is appointed by the petitioners to oversee the build-out of the infrastructure, and to

2. Video Recording of Senate Proceedings, Mar. 27,2007 at 1 nr., 48 min., 2 sec. (remarks by Sen. Johnny Grant (R-25th», http://www.georgia.gov/00/article/0,2086,4802_6107103_72682316,00.html [hereinafter Senate Video]; see U.S. Census Bureau, http://www.census.gov (last visited June 12,2007).

3. Senate Video, supra note 2, at 1 hr., 48 min., 2 sec. (remarks by Sen. Johnny Grant (R-25th)).

4. "Impact fees are charges levied by local governments on new developments in order to pay a proportionate share of the capital costs of providing public infrastructure to those developments." Julian C. Juergensmeyer & Thomas E. Roberts, Land Use Planning and Development Regulatory Law 350 (2003).

5. See O.C.G.A. §§ 36-71-1 to -13 (Supp. 2007).

6. See Video Recording of House Committee on Economic Development and Tourism, Apr. 10, 2007, at 1 nr., 13 min., 30 sec. (remarks by Clint Mueller, Legislative Director, Association County Commissioners of Georgia), http://www.legis.ga.gov/legis/2007_08/house/Committees/ economicDev/economicArchives.htm [hereinafter House Committee Video]

7. See id. at 0 min., 35 sec. (remarks by Sen. Johnny Grant (R-25th)). According to Senator Grant, seventeen other states have entities similar to IDDs. Id. In many states, however, the districts are run by the local governments, not private boards.

8. See Interview with Sen. Johnny Grant (R-25th) (Apr. 20, 2007) [hereinafter Grant Interview]; Dave Williams, 'Private Cities' Measure Back Before Lawmakers, gwinnett daily post, Mar. 4, 2007, at C3.

9. O.C.G.A. § 36-93-3 (Supp. 2007).

258 GEORGIA STATE UNIVERSITY LAW REVIEW |Vol. 24:255

manage the finances and operations of the IDD.¹⁰ At the center of all "development district" legislation is the ability of a local government to authorize a district governing board to issue tax-exempt bonds, which pay for the district's up-front infrastructure needs.¹¹ These bonds are paid off by the new purchasers of land within the district, typically homeowners.

SB 200 was similar to two bills introduced in the 2006 Georgia General Assembly:...