PRIA Logo™
GeorgiaSB 1382025-2026 Regular SessionSenate

Incorporation of Municipal Corporations; transition of certain services related to newly incorporated municipalities in certain counties; provide

Sponsored By: Jason Anavitarte (Republican), Bill Cowsert (Republican), Clint Dixon (Republican), Ed Setzler (Republican), Shawn Still (Republican)

Signed by Governor

Intragovernmental CoordinationState and Local Governmental OperationsGeneral Bill

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

7 provisions identified: 7 benefits, 0 costs, 0 mixed.

New cities gain road control

During transition, qualifying new cities gain ownership or control of road rights-of-way within their boundaries. They can regulate use, grant franchises, and collect franchise fees. At the city’s choice, the county can keep maintaining these areas as it does in unincorporated areas. Cities do not take over county stormwater systems designed to temporarily hold at least 1,000 gallons without explicitly agreeing. County-controlled dams and detention ponds also require that agreement; the county remains responsible until both governments agree otherwise.

New cities gain transition legal protections

A county must repay all legal expenses and damages a qualifying city pays in two transition-related situations. One is when the city wins a case seeking a remedy for the county’s failure to follow transition rules. The other is a third-party suit over a city duty left unmet directly because of county transition actions. County immunity is waived as needed for reimbursement, with no stated dollar cap. After a court finds a county violated a transition duty, county and local-official immunity is waived for matters arising during the next year.

New cities keep county police coverage

Transition rules cover cities created by local Acts becoming law on or after January 1, 2024, in counties with more than 15 municipalities. A qualifying city stays in an existing county police district until it gives notice and takes full responsibility for policing. The county must provide the same service as elsewhere in the district; the sheriff’s role stays unchanged. Below 95% of authorized certified-officer staffing, the county cannot require more than one year’s notice to leave. The district must track taxes and costs, using officers’ actual time for patrols, responses, and investigations originating in the city. The county must send taxes above those costs to the city within 60 days after the district’s fiscal year ends.

New cities keep county service options

Existing service agreements remain valid and do not need renegotiation just because a qualifying city incorporates. During transition, the city can choose services the county provides elsewhere under those agreements, on the same terms. It must choose within six months of the section’s effective date or incorporation, whichever is later. The law took effect upon the Governor’s approval or upon becoming law without approval. The city also owes no repayment for special elections on incorporation or for its first governing authority.

Unfinished permit fees follow new cities

Counties must share unfinished permit fees when a qualifying city takes over the related service. This applies to county-accepted applications whose fees were not fully refunded, including building, zoning, alcohol, and regulated-business permits. The city gets 95% if the county only accepted the application, or 75% after processing without required inspections. It gets 50% if processing finished but final approval or the permit was not issued. Payment is due within 30 days after the county’s obligation arises; the transfer does not change the applicant’s fee.

New cities qualify for insurance-tax money

Voter-approved new cities qualify for incorporation-year life and other-than-life insurance-tax distributions if they complete tax-imposition steps within 18 months. The Commissioner must not have already allocated that year’s proceeds. Allocations use the 1990 or a later U.S. decennial census, including corrections issued before September 1 preceding distribution. The Office of Planning and Budget must certify corrections, revisions, and additional census data by August 31 each year. Official census data for new cities applies back to their initial filing. If official data is insufficient, the Commissioner must use census-tract data from the city’s charter. These rules divide revenue among local governments rather than changing household tax rates.

Service tax money follows new cities

When a qualifying city takes over a service midyear, the county must transfer a time-based share of related collections. This covers service-related taxes, fees, and charges collected before the takeover. The share depends on the portion of the county fiscal year when the county provided the service. Covered collections include alcoholic-beverage taxes and fees, business-license fees, and occupation taxes. County-issued permits and licenses remain valid; these transfers move money between governments rather than refunding taxpayers.

Sponsors & Cosponsors

Sponsors

  • Jason Anavitarte

    Republican • Senate

  • Bill Cowsert

    Republican • Senate

  • Clint Dixon

    Republican • Senate

  • Ed Setzler

    Republican • Senate

  • Shawn Still

    Republican • Senate

Cosponsors

  • Chuck Efstration

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 149 • No: 123

House vote • 3/13/2025

PASSAGE

Yes: 96 • No: 69 • Other: 5

Senate vote • 2/20/2025

ADOPTION OF AMENDMENT #1 BY THE SENATOR FROM THE 9TH

Yes: 21 • No: 32 • Other: 1

Senate vote • 2/20/2025

PASSAGE BY SUBSTITUTE

Yes: 32 • No: 22

Actions Timeline

  1. Senate Date Signed by Governor

    5/14/2025Senate

  2. Act 289

    5/14/2025

  3. Effective Date

    5/14/2025

  4. Senate Sent to Governor

    4/7/2025Senate

  5. House Third Readers

    3/13/2025House

  6. House Passed/Adopted

    3/13/2025House

  7. House Committee Favorably Reported

    2/26/2025House

  8. House Second Readers

    2/24/2025House

  9. House First Readers

    2/21/2025House

  10. Senate Third Read

    2/20/2025Senate

  11. Senate Passed/Adopted By Substitute

    2/20/2025Senate

  12. Senate Read Second Time

    2/19/2025Senate

  13. Senate Committee Favorably Reported By Substitute

    2/18/2025Senate

  14. Senate Read and Referred

    2/11/2025Senate

  15. Senate Hopper

    2/10/2025Senate

Bill Text

  • SB 138/AP* (v7)

    PDF

Related Bills

Back to State Legislation