HB140: HB140 End Local Taxation by Citation Act; enact

26 LC 47 3928S The House Committee on Governmental Affairs offers the following substitute to HB 140: A BILL TO BE ENTITLED AN ACT To amend Article 1 of Chapter 81 of Title 36 of the Official Co de of Georgia Annotated,1 relating to local government budgets and audits, so as to cap t he amount of funds derived2 from court fines or forfeiture action that municipalities may u se as part of their yearly3 budgets; to provide that any funds collected in excess of such cap shall escheat to the state;4 to supersede any conflicting home rule powers of municipalities; to provide for applicability;5 to provide a short title; to provide for related matters; to repeal conflicting laws; and for other6 purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 This Act shall be known and may be cited as the "End Local Taxation by Citation Act."10 SECTION 2.11 Article 1 of Chapter 81 of Title 36 of the Official Code of Geo rgia Annotated, relating to12 local government budgets and audits, is amended by revising Code Section 36-81-10, relating13 to effect of article on right to make expenditures and raise revenue, and effect on home rule14 powers, as follows:15 H. B. 140 (SUB) - 1 - 26 LC 47 3928S "36-81-10.16 Except as provided for in Code Section 36-81-12, this This article shall not be construed17 so as to prohibit local governments from making authorized expenditures for any lawful18 purpose or from raising revenues in any manner otherwise author ized by law. It is the19 specific intent of the General Assembly in adopting this article that, except as provided for20 in Code Section 36-81-12, local units of government shall continue to have and to exercise21 their home rule powers as provided by law."22 SECTION 3.23 Said article is further amended by adding a new Code section to read as follows:24 "36-81-12.25 (a) The funds appropriated in a municipality's budget ordinanc e derived from funds26 collected by such municipality as criminal or civil fines or as a result of a criminal or civil27 forfeiture action shall not exceed the following percentages by the following applicable28 dates:29 (1) No more than 30 percent of the funds appropriated for any budget ordinance adopted30 by a municipality for any fiscal year beginning on or after January 1, 2027;31 (2) No more than 25 percent of the funds appropriated for any budget ordinance adopted32 by a municipality for any fiscal year beginning on or after January 1, 2028;33 (3) No more than 20 percent of the funds appropriated for any budget ordinance adopted34 by a municipality for any fiscal year beginning on or after January 1, 2029;35 (4) No more than 15 percent of the funds appropriated for any budget ordinance adopted36 by a municipality for any fiscal year beginning on or after January 1, 2030;37 (b) Any funds received by a municipality as criminal or civil fines or as a result of a38 criminal or civil forfeiture action in excess of the amount provided for in subsection (a) of39 this Code section shall escheat to the state at the conclusion of the municipality's fiscal40 year. Within 30 days of the end of a municipality's fiscal year, such escheated funds shall41 H. B. 140 (SUB) - 2 - 26 LC 47 3928S be transmitted to the Office of the State Treasurer for deposit in the general fund of this42 state."43 SECTION 4.44 All laws and parts of laws in conflict with this Act are repealed.45 H. B. 140 (SUB) - 3 -