HB609: HB609 Local government; prohibitions on employees holding interest in redevelopment activities; revise provisions

Georgia law currently bars any elected official, appointed official, or employee of a city or county (or its boards or redevelopment agencies) from acquiring a financial interest in property or contracts tied to a redevelopment area. This bill narrows that ban for employees: instead of covering all employees of the political subdivision, it would only apply to employees whose primary job responsibilities involve creating or administering a redevelopment area or redevelopment activities. Elected and appointed officials remain fully covered by the ban, as do the existing rules requiring written disclosure of any involuntary interest, the 30-day disclosure requirement before a plan is adopted, the ability of the local legislative body to void violating contracts, and the classification of violations as misconduct in office. The bill repeals conflicting laws and does not state a delayed effective date.

• Narrows the existing ban on holding financial interests in redevelopment property so it only applies to employees whose primary job duties relate to redevelopment areas or activities.
• Leaves the ban fully intact for elected officials, appointed officials, and members of boards, commissions, or redevelopment agencies.
• Keeps the existing disclosure requirements for involuntary interests and interests acquired within two years before a redevelopment plan is submitted.
• Preserves the rule that violating contracts or undisclosed interests can be voided by the local legislative body.
• Keeps the classification of a violation as misconduct in office for covered officials and employees.

Local government employees of Georgia cities, counties, and their boards, commissions, or redevelopment agencies, especially those who work directly on redevelopment planning or administration; elected and appointed local officials also remain subject to the underlying rule.

Employees who have no connection to redevelopment work would no longer be barred from owning property or holding contracts in a redevelopment area, while employees who do handle redevelopment matters would remain restricted, along with all elected and appointed officials.

• Section 1 revises O.C.G.A. § 36-44-21(a) to limit the prohibition on acquiring interests to employees whose primary job responsibilities relate to creating or administering a redevelopment area or activities.
• Section 1 keeps the requirement that involuntary interests be disclosed in writing and entered in the local legislative body's minutes.
• Section 1 retains the rule requiring disclosure at least 30 days before plan adoption for interests acquired within two years before the plan is submitted, plus a bar on participating in related actions.
• Subsection (b) continues to allow the local legislative body to void contracts made in violation of the disclosure rules, with an exception for bond security.
• Subsection (c) continues to classify a violation as misconduct in office.
• Section 2 repeals all conflicting laws.

1. 2025-02-27House Second Readers (House)
2. 2025-02-26House First Readers (House)
3. 2025-02-24House Hopper (House)

• Teddy Reese (D, HD-140)Primary sponsor
• Carolyn Hugley (D, HD-141)
• Carmen Rice (R, HD-139)
• Debbie Buckner (D, HD-137)
• Vance Smith (R, HD-138)

• local government ethics
• redevelopment law
• conflicts of interest
• public employees