House Bill 317
By: Representatives Stephens of the 164th, Smith of the 70th, Greene of the 154th, Williams
of the 168th, and Jackson of the 128th
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 provide for a short title; to provide legislative findings; to provide for definitions; to
provide for establishment of community development districts; to provide for boards of
supervisors; to provide for budgets, reports, and reviews; to provide for disclosure of public
financing; to provide for general and special powers; to provide for rules and regulations; to
provide for issuance of bond anticipation notes; to provide for short-term borrowing; to
provide for bonds; to provide for trust agreements; to provide for taxes and non-ad valorem
assessments; to provide for tax liens; to provide for payment of taxes and redemption of tax
liens by the district and sharing in proceeds of tax sale; to provide for enforcement by civil
action; to provide for mandatory use of certain district facilities and services; to provide for
fees, rentals, and charges, procedure for adoption and modifications, and minimum revenue
requirements; to provide for recovery of delinquent charges; to provide for discontinuance
of service; to provide for enforcement and penalties; to provide for exemption of district
property from execution; to provide for termination, contraction, or expansion of a district;
to provide for sale of real estate within a district; to provide for required disclosures to
purchasers; to provide for notices of establishment; to provide for notices to service delivery
providers; to provide for related matters; to provide for an effective date; to provide for
contingent repeal; 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 adding a new chapter to read as follows:
<ins>"CHAPTER 93
36-93-1.
This chapter shall be known and may be cited as the 'Workforce and Residential
Infrastructure District for Georgia Act.'
36-93-2.
The General Assembly finds that:
(1) Independent districts are a legitimate alternative method available for use by the
private and public sectors, as authorized by state law, to manage and finance basic
services for community developments;
(2) The exercise by any independent district of its powers as set forth by uniform general
law should comply with all applicable governmental laws, rules, regulations, and policies
governing planning and permitting of the development to be serviced by the district, to
ensure that neither the establishment nor operation of such district is a zoning decision
and that the district so established does not have any zoning or permitting powers
governing development;
(3) The process of establishing a community development district should be fair and
based only on factors material to managing and financing the service delivery function
of the district, so that any matter concerning permitting or planning of the development
is not material or relevant; and
</ins>
<ins>(4) It is the legislative intent and purpose, based upon and consistent with the General
Assembly's findings of fact and declarations of policy, to authorize a uniform procedure
by general law to establish community development districts as an alternative method to
manage and finance basic services for community development. It is further the
legislative intent and purpose to provide by general law for the uniform operation,
exercise of power, and procedure for termination of any such district. It is further the
purpose and intent of the General Assembly that a district created under this chapter not
have or exercise any zoning or development permitting power, that the establishment of
a community development district as provided in this chapter not be a zoning decision,
and that all applicable planning and permitting laws, rules, regulations, and policies
control the development of the land to be serviced by the district. It is further the purpose
and intent of the General Assembly that no debt or obligation of a community
development district constitutes a burden on any general purpose local government
without its consent.
36-93-3.
As used in this chapter, the term:
(1) 'Assessable improvements' means, without limitation, any and all public
improvements and community facilities that a district is empowered to provide in
accordance with this chapter.
(2) 'Board' or 'board of supervisors' means the governing board of a district or, if such
board has been abolished, the board, body, or commission succeeding to the principal
functions thereof or to which the powers given to such board by this chapter have been
given by law.
(3) 'Bond' includes any general obligation bond, assessment bond, refunding bond,
revenue bond, and other such obligation in the nature of a bond of a district as is provided
for in this chapter and authorized to be issued under the Constitution and laws of this
</ins>
<ins>state, including, but not limited to, any revenue bonds issued under Article 3 of Chapter
82 of this title, the 'Revenue Bond Law.' Such term shall not include notes or other
obligations of the district.
(4) 'Community development district' or 'district' means a geographic area of
development created pursuant to this chapter and limited to the performance of those
specialized functions authorized by this chapter, the governing body of which is a board
created and authorized to function specifically as prescribed in this chapter for the
financing of projects and the formation, powers, operation, duration, accountability,
requirements for disclosure, and termination of which are as required by this chapter.
Such term shall be considered a political subdivision of this state.
(5) 'Cost,' when used with reference to any project, includes, but is not limited to:
(A) The expenses of determining the feasibility or practicability of acquisition,
construction, or reconstruction;
(B) The cost of surveys, estimates, plans, and specifications;
(C) The cost of improvements;
(D) Engineering, fiscal, and legal expenses and charges;
(E) The cost of all labor, materials, machinery, and equipment;
(F) The cost of all lands, properties, rights, easements, and franchises acquired;
(G) Financing charges;
(H) The creation of initial reserve and debt service funds;
(I) Working capital;
(J) Interest charges incurred or estimated to be incurred on money borrowed prior to
and during construction and acquisition and for such reasonable period of time after
completion of construction or acquisition as the board may determine;
(K) The cost of issuance of bonds pursuant to this chapter;
(L) The cost of any election held pursuant to this chapter and all other expenses of
issuance of bonds;
</ins>
<ins>(M) The discount, if any, on the sale or exchange of bonds;
(N) Administrative expenses;
(O) Such other expenses as may be necessary or incidental to the acquisition,
construction, or reconstruction of any project or to the financing thereof, or to the
development of any lands within a district; and
(P) Payments, contributions, dedications, fair share or concurrency obligations, and any
other exactions required as a condition to receive any government approval or permit
necessary to accomplish any district purpose.
(6) 'District manager' means the manager of a district.
(7) 'District road' means any public road as defined in paragraph (24) of Code
Section 32-1-3, excluding subparagraphs (E), (K), (P), and (Q) of such paragraph, that
is located within a district.
(8) 'Elector' means a landowner.
(9) 'Equitably apportioned among the properties subject to such assessments,' with
reference to assessments levied by a board, means that the burden of the assessments
shall be apportioned among the properties subject thereto based upon the values
established in the most recent ad valorem tax reassessment of such properties certified
by the county tax assessor or may be apportioned among the properties subject thereto
in direct or approximate proportion to the receipt of services or benefits derived from the
improvements or other activities for which the assessments are to be expended or may be
apportioned in any other manner or combination of manners deemed equitable by the
board, including, but not limited to, the recognition of differential benefits which may
reasonably be expected to accrue to new land development in contrast to lands and
improvements already in existence at the time of creation of the community improvement
district.
(10) 'General obligation bonds' means bonds which are secured by, or provide for their
payment by, the pledge, in addition to those special taxes levied for their discharge and
</ins>
<ins>such other sources as may be provided for their payment or pledged as security under the
resolution authorizing their issuance, of the full faith and credit and taxing power of a
district and for payment of which recourse may be had against the general fund of such
district.
(11) 'General purpose local government' means a county, municipal corporation, or
consolidated government of the State of Georgia.
(12) 'Landowner' means the owner of a freehold estate as appears by the deed record,
including a trustee, a private corporation, and an owner of a condominium unit. Such
term does not include a reversioner, remainderman, mortgagee, grantee of a security
deed, or any governmental entity, which shall not be counted and need not be notified of
proceedings under this chapter. Such term shall also mean the owner of a ground lease
from a governmental entity, which leasehold interest has a remaining term, excluding all
renewal options, in excess of 30 years.
(13) 'Project' means any development, improvement, property, utility, facility, works,
enterprise, or service existing on January 1, 2027, or thereafter undertaken or established
under the provisions of this chapter. Such term shall not include an electric utility or a
gas company as such terms are defined in Code Section 46-1-1 or a telecommunications
company as such term is defined in Code Section 46-5-162.
(14) 'Qualified elector' means a landowner within a district who, at the time such district
was created, was not shown as a landowner for one or more parcels of real estate within
the district on the ad valorem tax records of the county or counties in which such district
is located.
(15) 'Refunding bonds' means bonds issued to refinance outstanding bonds of any type
and the interest and redemption premium thereon. Refunding bonds shall be issuable and
payable in the same manner as bonds being refunded, except that no approval by the
electorate shall be required in the case of refunding bonds which are general obligation
</ins>
<ins>bonds if the conditions described in subparagraphs (e)(1)(A) through (e)(1)(D) of Code
Section 36-82-1 are met.
(16) 'Revenue bonds' means obligations of a district which are payable from revenues
derived from sources other than ad valorem taxes on real or tangible personal property
and which do not pledge the full faith, credit, and taxing power of such district.
(17) 'Revenues' means the proceeds of assessments, rates, fees, rentals, or other charges
prescribed, fixed, established, and collected by a board for the projects furnished by a
district.
(18) 'Service delivery provider' means a local government or local government authority
that provides services to a designated area pursuant to Article 2 of Chapter 70 of this title.
(19) 'Sewer system' means any plant, system, facility, or property, and additions,
extensions, and improvements thereto at any future time constructed or acquired as part
thereof, useful or necessary or having the present capacity for future use in connection
with the collection, treatment, purification, or disposal of sewage, including, without
limitation, industrial wastes resulting from any process of industry, manufacture, trade,
or business or from the development of any natural resource. Without limiting the
generality of the foregoing, such term includes treatment plants, pumping stations, lift
stations, valves, force mains, intercepting sewers, laterals, pressure lines, mains, and all
necessary appurtenances and equipment; all sewer mains, laterals, and other devices for
the reception and collection of sewage from premises connected therewith; and all real
and personal property and any interest therein, rights, easements, and franchises of any
nature relating to any such system and necessary or convenient for operation thereof.
(20) 'Water management and control facilities' means any lakes, canals, ditches,
reservoirs, dams, levees, sluiceways, floodways, curbs, gutters, pumping stations, or any
other works, structures, or facilities for the conservation, control, development,
utilization, and disposal of water and any purposes appurtenant, necessary, or incidental
thereto. Such term includes all real and personal property and any interest therein, rights,
</ins>
<ins>easements, and franchises of any nature relating to any such facilities or necessary or
convenient for the acquisition, construction, reconstruction, operation, or maintenance
thereof.
(21) 'Water system' means any plant, system, facility, or property or additions,
extensions, or improvements thereto at any future time constructed or acquired as part
thereof, useful or necessary or having the present capacity for future use in connection
with the development of sources, treatment, or purification and distribution of water.
Without limiting the generality of the foregoing, such term includes dams, reservoirs,
storage tanks, mains, lines, valves, hydrants, pumping stations, chilled water distribution
systems, laterals, and pipes for the purpose of carrying water to the premises connected
with such system and all rights, easements, and franchises of any nature relating to any
such system and necessary or convenient for the operation thereof. Such water system
shall be subject to the provisions of Part 5 of Article 3 of Chapter 5 of Title 12, the
'Georgia Safe Drinking Water Act of 1977.'
36-93-4.
(a) The exclusive and uniform method for the establishment of a community development
district shall be pursuant to resolution or ordinance adopted by the applicable general
purpose local government or governments granting a petition for the establishment of a
community development district as follows:
(1)(A) If all of the land of the proposed district is solely within the territorial
jurisdiction of a municipal corporation, then the petition requesting establishment of
such district shall be filed by the petitioner with the general purpose local government
of such municipal corporation and may be established by resolution or ordinance of
such general purpose local government.
(B) If all of the land of the proposed district is solely within the unincorporated area
of a county, then the petition requesting establishment of such district shall be filed by
</ins>
<ins>the petitioner with the general purpose local government of such county and may be
established by resolution or ordinance of such general purpose local government.
(C) If all of the land of the proposed district is:
(i) Within the territorial jurisdiction of two or more municipal corporations;
(ii) Within both the territorial jurisdiction of one or more municipal corporations and
the unincorporated area of one or more counties; or
(iii) Within the unincorporated areas of two or more counties,
then the petition requesting establishment of such district shall be filed by the petitioner
with each applicable general purpose local government. A district established across
county boundaries shall be required to maintain records, hold meetings and hearings,
and publish notices only in the county where the majority of the acreage within the
district lies;
(2) A petition for the establishment of a community development district shall contain:
(A) A description of each property to be located within the boundaries of the district
by metes and bounds description, plat or block and lot reference, rectangular survey
system, or any combination thereof. Any real property within the external boundaries
of the district which is to be excluded from the district shall be specifically described,
and the last known address of all owners of such real property shall be listed. The
petition shall also address the impact of the proposed district on any real property
within the external boundaries of the district which is to be excluded from the district;
(B) The written consent to the establishment of the district by all landowners whose
real property is to be included in the district or documentation demonstrating that the
petitioner has control by deed, trust agreement, contract, or option of all of the real
property to be included in the district, and when real property to be included in the
district is owned by a governmental entity and subject to a ground lease as described
in paragraph (12) of Code Section 36-93-3, the written consent by such governmental
entity;
</ins>
<ins>(C) A designation of five persons to be the initial members of the board of supervisors,
who shall serve in such office until replaced by elected members as provided in Code
Section 36-93-5;
(D) The proposed name of the district, and such name shall not be the same as the
name of any existing city, county, or district, or any other local government entity in
this state;
(E) Based upon reasonably available data, an identification of the water and sewer
facilities located within the district, if any;
(F) Based upon reasonably available data, a description of the anticipated district
projects, the proposed timetable for construction of the district projects, and the
estimated cost of construction. Such estimates shall be submitted in good faith but shall
not be binding and may be subject to change;
(G) A designation of the future general distribution, location, and extent of public and
private uses of land proposed for the area within the district as shown on the applicable
general purpose local government's comprehensive land use plan, if one has been
adopted pursuant to Article 1 of Chapter 70 of this title;
(H) Identification of any service delivery provider under Code Section 36-93-29 and
the status of any such service delivery provider's decision regarding provision of service
to the district;
(I) A preliminary master plan; and
(J) Based on the preliminary master plan submitted with the petition, a projection of
the ad valorem tax impact on the applicable general purpose local governments and
school districts in which the proposed district would be wholly or partially located;
(3) A petitioner shall submit to the applicable general purpose local government or
governments an application fee to be established by the applicable general purpose local
government or governments. Such application fee shall be in an amount reasonably
determined by the applicable general purpose local government or governments to be
</ins>
<ins>necessary to defray the approximate cost of reviewing and evaluating the application.
Upon request by a petitioner, the applicable general purpose local government or
governments shall meet to discuss a petitioner's application and shall upon request
provide a petitioner with a good faith estimate of an associated application fee and the
basis therefor;
(4)(A) Each applicable general purpose local government shall conduct a public
hearing to consider the relationship of the petition to the factors specified in paragraph
(5) of this subsection. The public hearing shall be concluded within 90 days after the
date the petition is filed unless an extension of time is requested by the petitioner and
granted by such general purpose local government or unless such general purpose local
government provides written notice to the petitioner that some reasonable additional
period is necessary to complete review and evaluation of the application and the basis
therefor. The hearing shall include oral and written comments on the petition pertinent
to the factors specified in paragraph (5) of this subsection. The hearing shall be held
at an accessible location in the county in which the community development district is
to be located. The petitioner shall cause a notice of the hearing to be published in the
legal organ of the applicable county, counties, municipality, or municipalities at least
once a week for the four successive weeks immediately prior to the hearing. The notice
shall give the time and place for the hearing, a description of the area to be included in
the district, and any other relevant information which the appropriate general purpose
local government or governments may require. All applicable general purpose local
governments and local boards of education and the general public shall be given an
opportunity to appear at the hearing and present oral or written comments on the
petition. The petitioner shall provide a copy of the petition to any other general purpose
local governments whose boundaries would be contiguous with any portion of the
district's proposed boundaries, and to each local board of education in the jurisdiction
of which the proposed district would be wholly or partially located, at the same time as
</ins>
<ins>submittal to the applicable general purpose local governments submitted to for
establishment.
(B) If published in the print edition of a newspaper, the advertisement shall not be
placed in the portion of the newspaper where legal notices and classified advertisements
appear. The advertisement shall be published in the legal organ of the applicable
county, counties, municipality, or municipalities.
(C) The county or municipality holding such public hearing may by resolution express
its support of, or objection to the granting of, the petition. A resolution shall base any
objection to the granting of the petition upon the factors specified in paragraph (5) of
this subsection;
(5) In making its determination to grant or deny a petition for the establishment of a
community development district, the applicable general purpose local government shall
consider the record of the public hearing and:
(A) Whether all statements contained within the petition have been found to be true
and correct;
(B) Whether the proposed district projects are consistent or inconsistent with any
applicable element or portion of the applicable general purpose local government's
comprehensive plan adopted pursuant to Article 1 of Chapter 70 of this title or an
existing service delivery agreement pursuant to Article 2 of Chapter 70 of this title;
(C) Whether the area of land within the proposed district is of sufficient size, is
sufficiently compact, and is sufficiently contiguous to be developable as one functional
interrelated community;
(D) Whether the district is the best alternative available for delivering community
development services and facilities to the area that will be served by the district;
(E) Whether the community development services and facilities of the district will be
incompatible with the capacity and uses of existing local and regional community
development services and facilities, including existing educational facilities, provided
</ins>
<ins>that, as a condition for approval of creation, the district shall submit a proposed
postdevelopment storm-water management system plan and shall plan for sewer service
to be made available to all buildings within the district;
(F) Whether the creation of the district is compatible with the applicable general
purpose local government in general and will supplement rather than be a detriment to
the general population; and
(G) Whether the district will result in an increase in taxes paid by existing taxpayers in
the county or municipality residing outside the district;
(6) No applicable general purpose local government shall adopt any resolution or
ordinance which would expand, modify, or delete any provision of this chapter. No
community development district shall be established that includes within its boundaries
any property already included within the boundaries of a community improvement
district existing pursuant to Article IX, Section VII of the Constitution of the State of
Georgia without the express written consent of such community improvement district.
A resolution or ordinance establishing a community development district shall only
include the matters provided for in paragraph (7) of this subsection unless the applicable
general purpose local government consents to any of the optional powers under paragraph
(2) of Code Section 36-93-10 at the request of the petitioner; and
(7) Any resolution or ordinance establishing a community development district shall only
contain the following:
(A) A description of the property to be located within the boundaries of the district by
metes and bounds description, plat or block and lot reference, rectangular survey
system, or any combination thereof, and any real property within the external
boundaries of the district which is to be excluded;
(B) The names of five persons designated to be the initial members of the board of
supervisors;
(C) The name of the district; and
</ins>
<ins>(D) Other information required or authorized by this chapter.
(b) A district created pursuant to this chapter is not a general purpose local government
and specifically shall not be included in the term 'local government' as that term is defined
in Code Section 36-70-2, and the creation of a district shall not override any agreement
entered into between local governing authorities pursuant to Article 2 of Chapter 70 of this
title or any other provision of law.
(c) The powers granted to a district pursuant to paragraph (2) of Code Section 36-93-10
may be exercised by a board upon execution of an agreement between such board and the
applicable general purpose local government or governments. Such agreement shall
include reasonable terms, including, but not limited to, describing the services and facilities
to be provided within the district and the source of funding for such services and facilities.
If such agreement is amended, the amendment or amendments shall be agreed to by mutual
consent of the board and the applicable general purpose local government or governments.
36-93-5.
(a) A board shall exercise the powers granted to a district pursuant to this chapter. A board
shall consist of five members. Except as otherwise provided in this Code section, each
member shall hold office for a term of two years or four years, as provided in this Code
section, and until a successor is chosen and qualified. The members of a board shall be at
least 18 years old, residents of this state, and citizens of the United States. The provisions
of Code Section 45-10-3 shall apply to all members of a board who are elected pursuant
to this Code section and their successors.
(b)(1) Within 90 days following the effective date of the resolution or ordinance
establishing a district, there shall be held a meeting of the landowners of such district for
the purpose of electing five supervisors for such district. The petitioner shall cause notice
of the landowners' meeting to be published once a week for two consecutive weeks in the
legal organ of the applicable county or municipality, the last day of such publication to
</ins>
<ins>be not fewer than 14 days nor more than 28 days before the date of the election. The
landowners, when assembled at such meeting, shall organize by electing a chairperson
who shall conduct the meeting. The chairperson may be any person present at the
meeting. If the chairperson is a landowner or proxy holder of a landowner, he or she may
nominate candidates and make and second motions.
(2) At such meeting, each landowner shall be entitled to cast one vote per acre of land
owned by him or her and located within the district for each person to be elected. A
landowner may vote in person or by proxy in writing. Each proxy shall be signed by one
of the legal owners of the property for which the vote is cast and shall contain the typed
or printed name of the individual who signed the proxy; the street address, legal
description, or tax parcel identification number of the property entitling such landowner
to vote; and the number of authorized votes. If the proxy authorizes more than one vote,
each property entitling the landowner to vote shall be listed and the number of acres of
each property shall be included. The signature on a proxy need not be notarized. A
fraction of an acre shall be treated as one acre, entitling the landowner to one vote with
respect thereto. For purposes of determining voting interests, platted lots shall be counted
individually and rounded up to the nearest whole acre. The acreage of platted lots shall
not be aggregated for determining the number of voting units held by a landowner or a
landowner's proxy. The two candidates receiving the highest number of votes shall be
elected for terms of four years, and the three candidates receiving the next largest number
of votes shall be elected for terms of two years, with the term of office for each successful
candidate commencing upon election. The members of the first board elected by
landowners shall serve their respective four-year or two-year terms; provided, however,
that the next election by landowners shall be held on the first Tuesday in November.
Thereafter, there shall be an election of supervisors for the district every two years in
November on a date established by the board and noticed pursuant to paragraph (1) of
this subsection. The second and subsequent landowners' election shall be announced at
</ins>
<ins>a public meeting of the board at least 90 days prior to the date of the landowners' meeting
and shall also be noticed pursuant to paragraph (1) of this subsection. Instructions on
how all landowners may participate in the election, along with sample proxies, shall be
provided during the board meeting that announces the landowners' meeting. The two
candidates receiving the highest number of votes shall be elected to serve for a four-year
term, and the remaining candidate elected shall serve for a two-year term.
(c)(1) Commencing six years after the initial appointment of members or, for a district
exceeding 5,000 acres in area, ten years after the initial appointment of members, the
position of each member whose term has expired shall be filled by a qualified elector of
the district, elected by the qualified electors of the district. If, in the sixth year after the
initial appointment of members, or in the tenth year after such initial appointment for
districts exceeding 5,000 acres in area, there are not at least 250 qualified electors in the
district, or there are not at least 500 qualified electors in a district exceeding 5,000 acres,
members of the board shall continue to be elected by landowners.
(2) After the sixth or tenth year, once a district reaches 250 or 500 qualified electors,
respectively, the positions of two board members whose terms are expiring shall be filled
by qualified electors of the district, elected by the qualified electors of the district for
four-year terms. The remaining board member whose term is expiring shall be elected
for a four-year term by the landowners and is not required to be a qualified elector.
Thereafter, as terms expire, board members shall be qualified electors elected by qualified
electors of the district for terms of four years.
(3) On or before June 1 of each year, the board shall determine the number of qualified
electors in the district as of the immediately preceding April 15. The board shall use and
rely upon the official records maintained by the election superintendent and property
appraiser or tax collector in each applicable county in making such determination. Such
determination shall be made at a properly noticed meeting of the board and shall become
a part of the official minutes of the district.
</ins>
<ins>(4) The board shall organize district elections which shall be held at a meeting of the
landowners of the district. Notice of the meeting and the election of board members shall
be published once a week for two consecutive weeks in the legal organ of the applicable
county, counties, municipality, or municipalities and the last day of such publication shall
be not fewer than 14 days nor more than 28 days before the meeting; provided, however,
that such notice shall not be published in the area reserved for legal advertisements. The
chairperson of the board shall conduct the meeting. If the chairperson is a qualified
elector or proxy holder for a qualified elector or landowner, he or she may nominate
candidates and make and second motions.
(d) Each qualified elector and landowner shall be entitled to vote commensurate with his
or her ownership interest in the district. At a district election, each qualified elector and
landowner shall be entitled to cast one vote per acre of land owned by him or her, located
within the district, for each member to be elected by landowners or qualified electors as
provided in this subsection; provided, however, that a qualified elector shall not cast a vote
representing any land currently used or identified for future use of district facilities,
infrastructure, or other district specific purposes including common areas. No qualified
elector shall cast votes representing more than 15 percent of the available votes. A
qualified elector or landowner may vote in person or by a properly executed written proxy.
Each proxy shall be signed by one of the landowners of the property for which the vote is
cast and shall contain the typed or printed name of the individual who signed the proxy; the
street address, legal description, or tax parcel identification number of the property entitling
such landowner to vote; and the number of authorized votes. If the proxy authorizes more
than one vote, each property entitling such landowner to vote shall be listed and the number
of acres of each property shall be included. The signature on a proxy need not be
notarized. A fraction of an acre shall be treated as one acre, entitling the qualified elector
to one vote with respect thereto. In the event that an acre or a fraction of an acre is jointly
</ins>
<ins>owned, only one such owner shall be entitled to vote as a qualified elector. Nominees for
the board shall be elected by a majority of votes cast in accordance with this subsection.
(e) Elections of board members shall be nonpartisan. Board members shall assume their
office immediately upon their election.
(f) Members of the board shall be known as supervisors and shall hold office for the terms
for which they were elected or appointed and until their successors are chosen and
qualified. If, during the term of office, a vacancy occurs, the remaining members of the
board shall fill the vacancy by an appointment for the remainder of the unexpired term.
(g) A majority of the members of the board constitutes a quorum for the purposes of
conducting its business and exercising its powers and for all other purposes. Action taken
by the district shall be upon a vote of a majority of the members present unless general law
or a rule of the district requires a greater number.
(h) As soon as practicable after each election or appointment, the board shall organize by
electing one of its members as chairperson and by electing a secretary, who need not be a
member of the board, and such other officers as the board may deem necessary.
(i) The board shall keep a permanent record book entitled 'Record of Proceedings of
(Name of District) Community Development District,' in which shall be recorded minutes
of all meetings, resolutions, proceedings, certificates, bonds given by all employees, and
any and all corporate acts. The record book and any other documents shall be open to
inspection and governed by the provisions of Article 4 of Chapter 18 of Title 50. The
record book shall be kept at the office or other regular place of business maintained by the
board in the county or municipality in which the district is located.
(j) Each supervisor shall be entitled to receive for his or her services an amount not to
exceed $200.00 per meeting of the board of supervisors, not to exceed $4,800.00 per year
per supervisor, or an amount established by the qualified electors at a referendum. In
addition, each supervisor may receive travel and per diem expenses as approved by the
board and as otherwise allowed by law. All meetings of the board shall be open to the
</ins>
<ins>public and governed by the provisions of Chapter 14 of Title 50. The board shall hold at
least one annual meeting on the same date every year, such date to be published as part of
the resolution or ordinance creating the district. The meeting shall begin no earlier than
6:00 P.M. nor later than 7:00 P.M. and shall address issues related to the district, including,
but not limited to, current projects, district finances, and potential future projects. In
addition, the board shall make available to any person upon request a report of the names
and contact information of the board members, their employers, and their relationships to
other members of the board and to any officer or employee of the developer.
36-93-6.
(a) A board shall employ, and fix the compensation of, a district manager. Such district
manager shall have charge and supervision of the works of the district and shall be
responsible for preserving and maintaining any improvement or facility constructed or
erected pursuant to the provisions of this chapter, for maintaining and operating the
equipment owned by the district, and for performing such other duties as may be prescribed
by the board. It shall not be a conflict of interest for a board member or the district
manager or another employee of the district to be a stockholder, officer, or employee of a
landowner or of an entity affiliated with a landowner or to vote on matters affecting such
landowner or affiliated entity. A board member or an employee of a district does not abuse
his or her position if the board member or employee commits an act or omission that is
otherwise authorized under this subsection. A district manager may hire or otherwise
employ and terminate the employment of such other persons, including, without limitation,
professional, supervisory, and clerical employees, as may be necessary and authorized by
the board. The compensation and other conditions of employment of the officers and
employees of the district shall be as provided by the board.
(b) A board shall designate a person who is a resident of this state, but not a current
member of the board, as treasurer of a district, who shall have charge of the funds of the
</ins>
<ins>district. Such funds shall be disbursed only upon the order, or pursuant to the resolution,
of the board by warrant or check countersigned by the treasurer and by such other person
as may be authorized by the board. A board may give the treasurer such other or additional
powers and duties as the board deems appropriate and may fix his or her compensation.
A board may require the treasurer to give a bond in such amount, on such terms, and with
such sureties as deemed satisfactory by the board to secure the performance by the
treasurer of his or her powers and duties. The financial records of a board shall be audited
by an independent certified public accountant at least once a year. The results of such audit
shall be recorded in the district's record book and made available to the public pursuant to
subsection (i) of Code Section 36-93-5. A district shall file its audits annually with the
Department of Audits and Accounts. A district shall comply with and be subject to the
audit requirements of Code Section 36-81-7.
(c) A board is authorized to select as a depository for its funds any commercial bank or
trust company, mutual savings bank, savings and loan association, or building and loan
association existing under the laws of this state or of the United States upon such terms and
conditions as to the payment of interest by such depository upon the funds so deposited as
such board deems just and reasonable.
36-93-7.
(a) The fiscal year for each district shall be July 1 to June 30.
(b)(1) On or before March 15 of each year, the district manager shall prepare a proposed
budget for the ensuing fiscal year to be submitted to the board for board approval. The
proposed budget shall include at the direction of the board an estimate of all necessary
expenditures of the district for the ensuing fiscal year and an estimate of income to the
district from assessments and other revenues provided for in this chapter. The board shall
consider the proposed budget item by item and may either approve the budget as
proposed by the district manager or modify the same in part or in whole. The board shall
</ins>
<ins>indicate its approval of the budget by resolution, which resolution shall provide for a
hearing on the budget as approved. Notice of the hearing on the budget shall be
published in the legal organ of the applicable county, counties, municipality, or
municipalities once a week for two consecutive weeks, except that the first publication
shall be not fewer than 15 days prior to the date of the hearing. The notice shall further
contain a designation of the day, time, and place of the public hearing. At the time and
place designated in the notice, the board shall hear all objections to the budget as
proposed and may make such changes as the board deems necessary. At the conclusion
of the budget hearing, the board shall, by resolution, adopt the budget as finally approved
by the board. The budget shall be adopted prior to July 1 of each year.
(2) At least 60 days prior to adoption of the budget, a board shall submit to the applicable
general purpose local government or governments, for purposes of disclosure and
information only, the proposed annual budget for the ensuing fiscal year and any
proposed long-term financial plan or program of the district for future operations.
(3) Any applicable general purpose local government may review the proposed annual
budget and any long-term financial plan or program and may submit written comments
to a board for its assistance and information in adopting its annual budget and any
long-term financial plan or program.
36-93-8.
(a) A district shall take affirmative steps to provide for the full disclosure of information
relating to the public financing and maintenance of improvements to real property
undertaken by a district. Such information shall be made available to all existing residents,
and to all prospective residents, of the district. A district shall furnish each developer of
a residential development within the district with sufficient copies of that information to
provide each prospective initial purchaser of property in that development with a copy, and
any developer of a residential development within the district, when required by law to
</ins>
<ins>provide a public offering statement, shall include a copy of such information relating to the
public financing and maintenance of improvements in the public offering statement.
(b) The Department of Community Affairs shall keep a current list of districts and their
disclosures pursuant to this chapter and shall make such studies and reports and take such
actions as it deems necessary.
36-93-9.
A district shall have, and a board may exercise, the following powers:
(1) To sue and be sued in the name of the district; to adopt and use a seal and authorize
the use of a facsimile thereof; to acquire, by purchase, gift, devise, or otherwise, and to
dispose of, real and personal property, or any estate therein;
(2) To make and execute contracts and other instruments necessary or convenient to the
exercise of its powers. All public works contracts shall be made in accordance with the
provisions of Chapter 91 of this title. All contracts let by the board for any goods,
supplies, or materials to be purchased shall be made in accordance with the provisions
of this title applicable to general purpose local governments. The bid of the lowest
responsive and responsible bidder for contracts for purchase of any goods, supplies, or
materials shall be accepted unless all bids are rejected because the bids are too high or the
board determines it is in the best interests of the district to reject all bids. The board may
require such bidders to furnish bonds with a responsible surety to be approved by the
board. Contracts for the operation, maintenance, and management of district projects
shall contain the following provisions:
(A) With the exception of contracts with the federal government, the state, a state or
local authority, a local board of education, or a political subdivision of the state, any
district contract shall terminate absolutely and without further obligation on the part of
the district at the close of the calendar year in which it was executed and at the close of
</ins>
<ins>each succeeding calendar year for which it may be renewed as provided in this Code
section; and
(B) The contract may provide for automatic renewal unless positive action is taken by
the district to terminate such contract, and the nature of such action shall be determined
by the district and specified in the contract;
(3) To contract for the services of consultants to perform planning, engineering, legal,
or other appropriate services of a professional nature. Such contracts shall be subject to
public bidding or competitive negotiation requirements if otherwise required by law;
(4) To borrow money and accept gifts; to apply for and use grants or loans of money or
other property from the United States, the state, a general purpose local government, or
any person for any district purposes and enter into agreements required in connection
therewith; and to hold, use, and dispose of such moneys or property for any district
purposes in accordance with the terms of the gift, grant, loan, or agreement relating
thereto;
(5) To adopt resolutions and orders prescribing the powers, duties, functions, and ethical
requirements of the officers of the district; the conduct of the business of the district; the
maintenance of records; and the form of certificates evidencing assessment liens and all
other documents and records of the district. The board may also adopt resolutions with
respect to any of the projects of the district and define the area to be included therein.
The board may also adopt resolutions which may be necessary for the conduct of district
business;
(6) To maintain an office at such place or places as it may designate within a county in
which the district is located;
(7) To hold, control, and acquire by donation or purchase, or dispose of, any public
easements, dedications to public use, platted reservations for public purposes, or
reservations for those purposes authorized by this chapter and to make use of such
easements, dedications, or reservations for any of the purposes authorized by this chapter;
</ins>
<ins>(8) To lease as lessor or lessee to or from any person, firm, corporation, association, or
body, public or private, any projects of the type that the district is authorized to undertake
and facilities or property of any nature for the use of the district to carry out any of the
purposes authorized by this chapter;
(9) To borrow money and issue bonds, certificates, warrants, notes, or other evidence of
indebtedness as provided in this Code section; to levy such taxes and special assessments
as may be authorized; and to charge, collect, and enforce fees and other user charges.
The district may incur debt without regard to the requirements of Article IX, Section V
of the Constitution or any other provision of law prohibiting or restricting the borrowing
of money or the creation of debt by political subdivisions of this state. Debt of the district
may be backed by the full faith and credit of the district but shall not be an obligation of
the state, the applicable general purpose local government or governments, or any local
government or other unit of government of this state;
(10) To raise, by user charges or fees authorized by resolution of the board, amounts of
money which are necessary for the conduct of the district activities and services and to
enforce their receipt and collection in the manner prescribed by resolution not
inconsistent with law;
(11) To cooperate with, or contract with, other governmental agencies as may be
necessary, convenient, incidental, or proper in connection with any of the powers, duties,
or purposes authorized by this chapter;
(12) To assess, levy, impose, collect, and enforce upon lands in the district ad valorem
taxes as provided by this chapter;
(13) To determine, order, levy, impose, collect, and enforce special assessments pursuant
to this chapter;
(14) To exercise all of the powers necessary, convenient, incidental, or proper in
connection with any of the powers, duties, or purposes authorized by this chapter,
</ins>
<ins>including any power granted by the laws of this state to public or private corporations
which is not in conflict with this chapter or with the purposes of the district; and
(15) To exercise such special powers as may be authorized by this chapter.
36-93-10.
A district shall have, and a board may exercise, subject to the regulatory jurisdiction and
permitting authority of all applicable general purpose local governments, and other
governmental bodies, agencies, and special districts having authority with respect to any
area included therein, any or all of the following special powers relating to public
improvements and community facilities authorized by this chapter:
(1) To finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or extend,
equip, operate, and maintain systems, facilities, and basic infrastructures for the following
purposes, provided that such systems, facilities, and basic infrastructures shall be built
according to the then-current specifications applicable to or within the jurisdiction or the
service area of the service delivery provider in which such systems, facilities, and basic
infrastructures are to be located and the district shall be subject to Chapter 9 of Title 25
and other provisions of state or federal law that are generally applicable to government
entities providing the same infrastructure, facility, or service as the district, and provided,
further, that exercising such powers shall constitute an essential governmental function
for a public purpose:
(A) Water management and control for the lands within the district and to connect
some or any of such facilities with roads and bridges;
(B) Water supply, sewer, and waste-water management, reclamation, and reuse or any
combination thereof, and to construct and operate connecting intercepting or outlet
sewers and sewer mains and pipes and water mains, conduits, or pipelines in, along, and
under any street, alley, highway, or other public place or ways; to connect such mains,
conduits, and pipelines with existing infrastructure upon entering into an agreement to
</ins>
<ins>do so with the owner of such existing infrastructure; and to dispose of any effluent,
residue, or other byproducts of such system or sewer system. Such sewerage or
sewerage system shall have the same rights, duties, and obligations as publicly owned
treatment works that discharge treated waste water;
(C) Bridges or culverts that may be needed across any drain, ditch, canal, floodway,
holding basin, excavation, public highway, tract, grade, fill, or cut and roadways over
levees and embankments, and to construct any and all of such works and improvements
across, through, or over any public right-of-way, highway, grade, fill, or cut;
(D)(i) District roads equal to or exceeding the applicable specifications of the county
in which such district roads are located; roads and improvements to existing public
roads that are owned by or conveyed to the applicable general purpose local
government, the state, or the federal government; sidewalks; bike paths; walking
trails; street lights; alleys; landscaping; hardscaping; and the undergrounding of
electric utility lines.
(ii) Buses, trolleys, transit shelters, ridesharing facilities and services, parking
improvements, and related signage;
(E) Investigation and remediation costs associated with the cleanup of actual or
perceived environmental contamination within the district under the supervision or
direction of a competent governmental authority unless the expenditure of investigation
and remediation costs benefit any person who is a landowner within the district and
who caused or contributed to the contamination;
(F) Conservation areas, mitigation areas, and wildlife habitats, including the
maintenance of any plant or animal species, and any related interest in real or personal
property, including green spaces and common areas;
(G) Any other project within or outside the boundaries of a district consistent with the
applicable general purpose local government's comprehensive plan;
</ins>
<ins>(H) Parks and facilities for indoor and outdoor recreational, cultural, and educational
uses; and
(I) Security, including, but not limited to, guardhouses, fences and gates, electronic
intrusion-detection systems, and patrol cars, when authorized by proper governmental
agencies, except that the district shall not exercise any police power but may contract
with the applicable general purpose local government agencies for an increased level
of such services within the district boundaries; provided, however, that this
subparagraph shall not prohibit a district from contracting with a towing operator to
remove a vehicle or vessel from a district owned facility or property if otherwise
authorized;
(2) To finance, fund, plan, establish, acquire, construct or reconstruct, enlarge or extend,
equip, and maintain additional systems, facilities, and basic infrastructures for the
following purposes, provided that such systems, facilities, and basic infrastructures shall
be built according to the then-current specifications applicable to or within the
jurisdiction or the service area of the service delivery provider in which such systems,
facilities, and basic infrastructures are to be located, and provided, further, that exercising
such powers shall constitute an essential governmental function for a public purpose:
(A) Fire prevention and control, including fire stations, water mains and plugs, fire
trucks, and other vehicles and equipment when authorized by the service delivery
provider and pursuant to a written agreement with such service delivery provider;
(B) School buildings and related structures which may be leased, sold, or donated for
use in the public educational system when authorized by the local board of education;
(C) Control and elimination of pests of public health importance; and
(D) Waste collection and disposal when authorized by the service delivery provider
and pursuant to a written agreement with such service delivery provider;
(3) To adopt and enforce appropriate resolutions in connection with the provision of one
or more services through its projects; and
</ins>
<ins>(4) To demolish buildings or other facilities located within a district and to redevelop
areas located in a district where authorized by the applicable general purpose local
government.
36-93-11.
In addition to such authority as provided elsewhere in this chapter, a district may adopt and
enforce reasonable rules and regulations to:
(1) Secure and maintain safe, sanitary, and adequate plumbing installations, connections,
and appurtenances as subsidiary parts of its sanitary sewer system;
(2) Preserve the sanitary condition of all water controlled by the district;
(3) Prevent waste or the unauthorized use of water controlled by the district;
(4) Provide and regulate a safe and adequate freshwater distribution system; and
(5) Regulate activities on any land or any easement owned or controlled by the district;
provided, however, that the applicable general purpose local government shall retain all
home rule and police powers, including, but not limited to, code enforcement, regulatory
authority, zoning powers, and land use control powers under the laws of this state.
36-93-12.
In addition to the other powers provided for in this chapter, and not in limitation thereof,
a district shall have the power, at any time, and from time to time, to borrow money for the
purposes for which such bonds are to be issued in anticipation of the receipt of the proceeds
of the sale of such bonds and to issue bond anticipation notes and to renew from time to
time any such notes by the issuance of new notes, whether the notes to be renewed have
matured. A district may issue such bond anticipation notes only to provide funds which
otherwise would be provided by the issuance of the bonds. Bond anticipation notes shall
not be issued in an amount exceeding the par value of the bonds in anticipation of which
they are to be issued. Bond anticipation notes may be authorized, sold, executed, and
</ins>
<ins>delivered in the same manner as bonds. As with its bonds, bond anticipation notes may be
sold at either public or private sale or, if such notes are renewal notes, may be exchanged
for notes then outstanding on such terms as the board shall determine. Any resolution or
resolutions authorizing notes of a district or any issue thereof may contain any provisions
which the district is authorized to include in any resolution or resolutions authorizing bonds
of the district or any issue thereof and which the district is authorized to include in any
bonds. Such notes shall be paid from the proceeds of such bonds when issued.
36-93-13.
A district at any time may obtain loans, in such amount and on such terms and conditions
as a board may approve, for the purpose of paying any of the expenses of the district or any
costs incurred or that may be incurred in connection with any of the projects of the district
and related operation and maintenance costs of the projects of the district. Such loans shall
bear such interest as the board may determine and may be payable from and secured by a
pledge of such funds, revenues, taxes, and assessments as the board may determine, subject
to the provisions contained in any proceeding under which bonds were theretofore issued
and are then outstanding; provided, however, that the board shall disclose the interest rate
or rates payable on such loans and shall notify each property owner of his or her share of
such costs as will be repaid on such loan or loans.
36-93-14.
(a) Bonds, notes, or other obligations issued by a district shall be paid from revenues and
other property pledged to pay such bonds, notes, or other obligations. In the event a district
defaults on its obligations, landowners shall only be responsible for such obligations that
are associated with their property and not the obligations of the district as a whole or the
obligations of any other landowner. Landowners shall have the right to satisfy or make
</ins>
<ins>arrangements to satisfy the proportionate share of obligations related to the district and any
related reasonable interest.
(b) Bonds may be sold in blocks or installments at different times, or an entire issue or
series may be sold at one time. Bonds may be sold at public or private sale after such
advertisement, if any, as the board may deem advisable. Bonds may be sold or exchanged
for refunding bonds. Revenue bonds may be delivered by the district as payment of the
purchase price of any project or part thereof, or a combination of projects or parts thereof,
or as the purchase price or exchange for any property, real, personal, or mixed, including
franchises or services rendered by any contractor, engineer, or other person, all at one time
or in blocks from time to time, in such manner and upon such terms as the board in its
discretion shall determine. The price or prices for any bonds sold, exchanged, or delivered
may be:
(1) The money paid for the bonds;
(2) The principal amount, plus accrued interest to the date of redemption or exchange,
or outstanding obligations exchanged for refunding bonds; or
(3) In the case of revenue bonds, the amount of any indebtedness to contractors or other
persons paid with such bonds, or the fair value of any properties exchanged for the bonds,
as determined by the board.
(c) Any general obligation bonds or revenue bonds may be authorized by resolution or
resolutions of a board which shall be adopted by a majority of all the members thereof then
in office. Such resolution or resolutions may be adopted at the same meeting at which they
are introduced and need not be published or posted. A board may, by resolution, authorize
the issuance of bonds and fix the aggregate amount of bonds to be issued, the purpose or
purposes for which the moneys derived therefrom shall be expended, including, but not
limited to, payment of costs as defined in this chapter; the rate or rates of interest, which
may be fixed or may fluctuate or otherwise change from time to time or be subject to
interest rate hedge arrangements; the denomination of the bonds; whether or not the bonds
</ins>
<ins>are to be issued in one or more series; the date or dates of maturity, which shall not exceed
30 years from their respective dates of issuance; the medium of payment; the place or
places within or without the state where payment shall be made; registration privileges;
redemption terms and privileges, whether with or without premium; the manner of
execution; the form of the bonds, including any interest coupons to be attached thereto; the
manner of execution of bonds and coupons; and any and all other terms, covenants, and
conditions thereof and the establishment of revenue or other funds. A resolution
authorizing the issuance of the bonds may delegate to such officers charged with the
responsibility of issuing such bonds the authority to set the final terms, conditions, and
details thereof, including the interest rate or rates and maturity, within reasonable
parameters established and set forth in such resolution.
(d) Pending the preparation of definitive bonds, a board may issue interim certificates or
receipts or temporary bonds, in such form and with such provisions as such board may
determine, exchangeable for definitive bonds when such bonds have been executed and are
available for delivery. A board may also provide for the replacement of any bonds which
become mutilated, lost, or destroyed.
(e) Any bond issued under this chapter or any temporary bond, in the absence of an
express recital on the face thereof that it is nonnegotiable, shall be fully negotiable and
shall be and constitute a negotiable instrument within the meaning and for all purposes of
the law merchant and the laws of the state.
(f) A board may make such provision with respect to the defeasance of the right, title, and
interest of the holders of any of the bonds and obligations of a district in any revenues,
funds, or other properties by which such bonds are secured as such board deems
appropriate and, without limitation on the foregoing, may provide that when such bonds
or obligations become due and payable or shall have been called for redemption and the
whole amount of the principal and interest and premium, if any, due and payable upon the
bonds or obligations then outstanding shall be held in trust for such purpose and provision
</ins>
<ins>shall also be made for paying all other sums payable in connection with such bonds or
other obligations, then and in such event the right, title, and interest of the holders of the
bonds in any revenues, funds, or other properties by which such bonds are secured shall
thereupon cease, terminate, and become void; and the board may apply any surplus in any
sinking fund established in connection with such bonds or obligations and all balances
remaining in all other funds or accounts other than money held for the redemption or
payment of the bonds or other obligations to any lawful purpose of the district as the board
shall determine.
(g) If the proceeds of any bonds are less than the cost of completing the project in
connection with which such bonds were issued, a board may authorize the issuance of
additional bonds, upon such terms and conditions as the board may provide in the
resolution authorizing the issuance thereof, but only in compliance with the resolution or
other proceedings authorizing the issuance of the original bonds.
(h) A board is authorized to provide by resolution for the issuance of bonds of the board
for the purpose of funding or refunding any bonds issued under the provisions of this
chapter and then outstanding, together with accrued interest thereon and premium, if any.
The issuance of such funding or refunding bonds, the maturities and all other details
thereof, the rights of the holders thereof, and the duties of the board in respect to the same
shall be governed by the provisions of this chapter insofar as the same may be applicable.
A district shall have the power to issue bonds to provide for the retirement or refunding of
any bonds or obligations of the district that at the time of such issuance are or subsequently
thereto become due and payable, or that at the time of issuance have been called or are or
will be subject to call for redemption within ten years thereafter, or the surrender of which
can be procured from the holders thereof at prices satisfactory to the board. Refunding
bonds may be issued at any time when in the judgment of a board such issuance will be
advantageous to the district. A board may by resolution confer upon the holders of such
refunding bonds all rights, powers, and remedies to which the holders would be entitled if
</ins>
<ins>they continued to be the owners and had possession of the bonds for the refinancing of
which such refunding bonds are issued, including, but not limited to, the preservation of
the lien of such bonds on the revenues of any project or on pledged funds, without
extinguishment, impairment, or diminution thereof. The provisions of this chapter
pertaining to bonds of a district shall, unless the context otherwise requires, govern the
issuance of refunding bonds, the form and other details thereof, the rights of the holders
thereof, and the duties of the board with respect thereto.
(i)(1) Revenue bonds may be secured by, or payable from, the gross or net pledge of the
revenues to be derived from any project or combination of projects; from the rates, fees,
or other charges to be collected from the users of any project or projects; from any
revenue-producing undertaking or activity of a district; from special assessments; or from
any other source or pledged security. Such bonds shall not constitute an indebtedness of
a district, and the approval of the qualified electors shall not be required unless such
bonds are additionally secured by the full faith and credit and taxing power of a district.
(2) Any two or more projects may be combined and consolidated into a single project
and may hereafter be operated and maintained as a single project. The revenue bonds
authorized in this chapter may be issued to finance any one or more of such projects,
regardless of whether such projects have been combined and consolidated into a single
project. If a board deems it advisable, the proceedings authorizing such revenue bonds
may provide that a district may thereafter combine the projects then being financed or
theretofore financed with other projects to be subsequently financed by the district and
that revenue bonds to be thereafter issued by the district shall be on parity with the
revenue bonds then being issued, all on such terms, conditions, and limitations as shall
have been provided in the proceeding which authorized the original bonds.
(j)(1) A district shall have the power from time to time to issue general obligation bonds
to finance or refinance capital projects or to refund outstanding bonds in an aggregate
principal amount of general bonds outstanding at any one time not in excess of 35 percent
</ins>
<ins>of the assessed value of the taxable property within the district as shown on the pertinent
tax records at the time of the authorization of the general obligation bonds for which the
full faith and credit of the district is pledged. Except for refunding bonds that satisfy the
conditions described in subparagraphs (e)(1)(A) through (e)(1)(D) of Code
Section 36-82-1, no general obligation bonds shall be issued unless the bonds are issued
to finance or refinance a capital project and the issuance has been approved at an election
within the district held in the same manner and under the same rules and regulations that
elections for officers of the general purpose local government wherein the district's land
lies are held. Such election shall be called to be held in the district by the board of
elections of the county wherein a majority of the district's land lies upon the request of
the board of the district. The expenses of calling and holding such election shall be at the
expense of the district, and the district shall reimburse the county for any expenses
incurred in calling or holding such election.
(2) A district may pledge its full faith and credit for the payment of the principal and
interest on such general obligation bonds and for any reserve funds provided therefor and
may unconditionally and irrevocably pledge itself to levy ad valorem taxes on all taxable
property in the district, to the extent necessary for the payment thereof, without
limitations as to rate or amount.
(3) If a board determines to issue general obligation bonds for more than one capital
project, the approval of the issuance of the bonds for each and all such projects may be
submitted to the electors on one and the same ballot. The failure of the electors to
approve the issuance of bonds for any one or more capital projects shall not defeat the
approval of bonds for any capital project which has been approved by the electors.
(4) In arriving at the amount of general obligation bonds permitted to be outstanding at
any one time pursuant to paragraph (1) of this subsection, there shall not be included any
general obligation bonds which are additionally secured by the pledge of:
</ins>
<ins>(A) Special assessments levied in an amount sufficient to pay the principal and interest
on the general obligation bonds so additionally secured, which assessments have been
equalized and confirmed by resolution of the board;
(B) Revenues determined by the board to be sufficient to pay the principal and interest
on the general obligation bonds so additionally secured; or
(C) Any combination of assessments and revenues described in subparagraphs (A)
and (B) of this paragraph.
(k)(1) Notwithstanding any provisions of any other law to the contrary, all bonds issued
under the provisions of this chapter shall constitute legal investments for savings banks,
banks, trust companies, insurance companies, executors, administrators, trustees,
guardians, and other fiduciaries and for any board, body, agency, instrumentality, county,
municipality, or other political subdivision of the state and shall be and constitute security
which may be deposited by banks or trust companies as security for deposits of state,
county, municipal, or other public funds or by insurance companies as required or
voluntary statutory deposits.
(2) Any bonds issued by a district shall be incontestable in the hands of bona fide
purchasers or holders for value and shall not be invalid because of any irregularity or
defect in the proceedings for the issue and sale thereof.
(l) Any resolution authorizing the issuance of bonds may contain such covenants as a
board deems advisable, and all such covenants shall constitute valid and legally binding
and enforceable contracts between a district and the bondholders, regardless of the time of
issuance thereof. Such covenants may include, without limitation, covenants concerning
the disposition of the bond proceeds; the use and disposition of project revenues; the
pledging of revenues, taxes, and assessments; the obligations of the district with respect to
the operation of the project and the maintenance of adequate project revenues; the issuance
of additional bonds; the appointment, powers, and duties of trustees and receivers; the
acquisition of outstanding bonds and obligations; restrictions on the establishment of
</ins>
<ins>competing projects or facilities; restrictions on the sale or disposal of the assets and
property of the district; the priority of assessment liens; the priority of claims by
bondholders on the taxing power of the district; the maintenance of deposits to assure the
payment of revenues by users of district facilities and services; the discontinuance of
district services by reason of delinquent payments; acceleration upon default; the execution
of necessary instruments; and the procedure for amending or abrogating covenants with the
bondholders and such other covenants as are deemed necessary or desirable for the security
of the bondholders.
(m)(1) All bonds issued under this chapter shall be validated pursuant to the procedures
set forth in Article 3 of Chapter 82 this title, the 'Revenue Bond Law.' Bonds shall bear
a certificate of validation. In the case where property within a district is within multiple
jurisdictions, validation shall occur in the jurisdiction within which the majority of the
property of the district lies. The signature of the clerk of the superior court may be made
on the certificate of validation of such bonds by facsimile or by manual execution, stating
the date on which such bonds were validated.
(2) In lieu of specifying the rate or rates of interest which such bonds are to bear and the
principal amount and maturities of such bonds, the notice to the district attorney; the
notice to the public of the time, place, and date of the validation hearing; and the petition
and complaint for validation shall state that the bonds when issued will bear interest at
a rate not exceeding a maximum per annum rate of interest which may be fixed or may
fluctuate or otherwise change from time to time, and that the principal amount will not
exceed an amount specified in and the final maturity date will not be later than a date
specified in such notices, petition, and complaint or may state that, in the event the bonds
are to bear different rates of interest for different maturity dates, none of such rates will
exceed the maximum rate so specified which may be fixed or may fluctuate or otherwise
change from time to time; provided, however, that nothing in this Code section shall be
construed as prohibiting or restricting the right of a board to sell such bonds at a discount,
</ins>
<ins>even if in doing so the effective interest cost resulting therefrom would exceed the
maximum per annum interest rate specified in such notices and in the petition and
complaint.
(n) This chapter constitutes full and complete authority for the issuance of bonds and the
exercise of the powers of a district provided in this chapter. No procedures or proceedings,
publications, notices, consents, approvals, orders, acts, or things by a board, or any board,
officers, commission, department, agency, or instrumentality of a district, other than those
required by this chapter, shall be required to perform anything under this chapter, except
that the issuance or sale of bonds pursuant to the provisions of this chapter shall comply
with the general law requirements applicable to the issuance or sale of bonds by a district.
Nothing in this chapter shall be construed to authorize a district to utilize bond proceeds
to fund the ongoing operations of such district.
(o) The state pledges to the holders of any bonds issued under this chapter that it will not
limit or alter the rights of a district to own, acquire, construct, reconstruct, improve,
maintain, operate, or fulfill the terms of any agreement made with the holders of such
bonds or other obligations and that it will not in any way impair the rights or remedies of
such holders. Any limitations with respect to interest rates found in Article 3 of Chapter
82 of this title, the 'Revenue Bond Law,' or the usury laws of this state shall not apply to
obligations issued under this chapter.
(p) All bonds, notes, and other obligations issued under this chapter and interest paid and
all fees, charges, and other revenues derived by a district from the projects provided by this
chapter are exempt from all taxes of the state or of any political subdivision, agency, or
instrumentality thereof.
(q) A default on the bonds or obligations of a district shall not constitute a debt or
obligation of a general purpose local government or the state.
</ins>
<ins>36-93-15.
Any issuance of bonds may be secured by a trust agreement by and between a district and
a corporate trustee or trustees, which may be any trust company or bank having the powers
of a trust company within or without this state. A resolution authorizing the issuance of
the bonds or such trust agreement may pledge the revenues to be received from any
projects of a district and may contain such provisions for protecting and enforcing the
rights and remedies of the bondholders as the board approves, including, without limitation,
covenants setting forth the duties of the district in relation to the acquisition, construction,
reconstruction, improvement, maintenance, repair, operation, and insurance of any projects;
the fixing and revising of the rates, fees, and charges; and the custody, safeguarding, and
application of all moneys and for the employment of consulting engineers in connection
with such acquisition, construction, reconstruction, improvement, maintenance, repair, or
operation. It shall be lawful for any bank or trust company within or without this state
which may act as a depository of the proceeds of bonds or of revenues to furnish such
indemnifying bonds or to pledge such securities as may be required by a district. Such
resolution or trust agreement may set forth the rights and remedies of the bondholders and
of the trustee, if any, and may restrict the individual right of action by bondholders. The
rights and remedies of bondholders shall be subject to the limitation specified in subsection
(a) of Code Section 36-93-14. A board may provide for the payment of proceeds of the
sale of the bonds and the revenues of any project to such officer, board, or depository as
it may designate for the custody thereof and may provide for the method of disbursement
thereof with such safeguards and restrictions as it may determine. All expenses incurred
in carrying out the provisions of such resolution or trust agreement may be treated as part
of the cost of operation of the project to which such trust agreement pertains.
</ins>
<ins>36-93-16.
(a) A board shall have the power to impose and collect assessments on all taxable real
property in a district to construct and maintain district projects and to pay the costs thereof;
to pay the principal of, and interest on, any bonds of a district; and to provide for any
sinking or other funds established in connection with any such bonds. The district project
assessment shall be in addition to all other assessments provided for by law. The amount
of the assessment shall be determined by the board based upon a report of the district's
engineer and shall be equitably apportioned among the properties subject to such
assessments. Such assessments shall be a lien on the property against which imposed until
paid and shall be enforceable in like manner as taxes in the applicable general purpose local
</ins> 1000 <ins>government, or as otherwise provided by law.
</ins> 1001 <ins>(b)(1) A board may impose and collect a maintenance and operation special assessment
</ins> 1002 <ins>on all taxable real property in a district to maintain, operate, or preserve the facilities and
</ins> 1003 <ins>projects of the district and to pay the costs thereof; to pay the principal of, and interest on,
</ins> 1004 <ins>any obligations of a district; and to provide for any sinking or other funds established in
</ins> 1005 <ins>connection with any such obligations. The amount of the assessment shall be determined
</ins> 1006 <ins>by the board based upon the operation and maintenance needs of the district and shall be
</ins> 1007 <ins>equitably apportioned among the properties subject to such assessments.
</ins> 1008 <ins>(2) Maintenance and operation special assessments shall be a lien on the property against
</ins> 1009 <ins>which imposed until paid and shall be enforceable in like manner as taxes in the
</ins> 1010 <ins>applicable general purpose local government, or as otherwise provided by law.
</ins> 1011 <ins>(c) Any assessment imposed pursuant to this Code section may be collected by the
</ins> 1012 <ins>applicable general purpose local government using the methods and procedures as
</ins> 1013 <ins>designated by the tax authority of the applicable general purpose local government. Such
</ins> 1014 <ins>tax authority may provide disclosure regarding any special assessment, ad valorem tax, or
</ins> 1015 <ins>fee attributable to the district. Delinquent assessments shall bear the same interest and
</ins> 1016 <ins>penalties as ad valorem taxes of the applicable general purpose local government and may
</ins>
1017 <ins>be enforced and collected in the same manner. The applicable general purpose local
</ins> 1018 <ins>government may retain a fee to reimburse the actual increased costs of preparing and
</ins> 1019 <ins>mailing notices to collect such assessments for the board. The remaining proceeds shall
</ins> 1020 <ins>be transmitted by the applicable general purpose local government to the board and shall
</ins> 1021 <ins>be expended by the board only for the purposes authorized in this chapter.
</ins> 1022 <ins>(d) A board shall impose the assessments provided for in this Code section between
</ins> 1023 <ins>January 1 and August 1 of each calendar year and shall notify in writing the tax authority
</ins> 1024 <ins>of the applicable general purpose local government by a date to be determined by the
</ins> 1025 <ins>applicable general purpose local government and such general purpose local government
</ins> 1026 <ins>shall include the assessment on its regular ad valorem tax bills. In the event assessments
</ins> 1027 <ins>are imposed at an amount based on property valuation, a board shall use the assessed
</ins> 1028 <ins>values of property contained in the tax digest approved by the county to determine the
</ins> 1029 <ins>amount applicable to each property assessment.
</ins> 1030 <ins>(e) If a parcel of real property is removed from a district or assessment becomes otherwise
</ins> 1031 <ins>inapplicable to such parcel of real property, it shall continue to bear its assessment burden
</ins> 1032 <ins>then extant until paid, including upon such event for bonded indebtedness of a district then
</ins> 1033 <ins>outstanding until any bonded indebtedness then outstanding is paid or refunded.
</ins> 1034 <ins>(f) Each property subject to fees or assessments imposed by a board for any public facility
</ins> 1035 <ins>that is also subject to impact fees levied by the applicable general purpose local
</ins> 1036 <ins>government shall receive a credit equal to the present value of all fees and assessments
</ins> 1037 <ins>toward any impact fee as may be levied by the applicable general purpose local
</ins> 1038 <ins>government against said property for system improvements which are in the same category
</ins> 1039 <ins>as said public facility in accordance with Chapter 71 of this title, the 'Georgia Development
</ins> 1040 <ins>Impact Fee Act.'
</ins> 1041 <ins>(g) All bonds, notes, and other obligations issued according to this chapter and interest
</ins> 1042 <ins>paid and all fees, charges, and other revenues derived by a district from the projects
</ins>
1043 <ins>provided by this chapter are exempt from all taxes of the state or of any political
</ins> 1044 <ins>subdivision, agency, or instrumentality thereof.
</ins> 1045 <ins>(h) With the exception of maintenance and operation special assessments, district
</ins> 1046 <ins>assessments may be made payable in no more than 30 yearly installments.
</ins> 1047 <ins>(i) An elected board shall have the power to levy and assess an ad valorem tax on all the
</ins> 1048 <ins>taxable property in a district to construct, operate, and maintain assessable improvements;
</ins> 1049 <ins>to pay the principal of, and interest on, any general obligation bonds of a district; and to
</ins> 1050 <ins>provide for any sinking or other funds established in connection with any such bonds. The
</ins> 1051 <ins>ad valorem tax provided for in this subsection shall be in addition to county and all other
</ins> 1052 <ins>ad valorem taxes provided for by law. Such tax shall be assessed, levied, collected, and
</ins> 1053 <ins>enforced in the same manner and same time as county taxes.
</ins> 1054 <ins>(j) In the case of a county which is by law or constitutional amendment subject to a
</ins> 1055 <ins>maximum allowable mill rate for taxes levied by such county, and only in the case of such
</ins> 1056 <ins>a county, ad valorem taxes or assessments imposed under this chapter by a district created
</ins> 1057 <ins>within such county shall be considered assessments imposed by such county for purposes
</ins> 1058 <ins>of the maximum allowable mill rate. No district created by such a county shall impose any
</ins> 1059 <ins>assessments under this chapter unless the county governing authority has certified in
</ins> 1060 <ins>writing to the district that the district assessments will not result in a violation of the
</ins> 1061 <ins>maximum allowable mill rate applicable to the county.
</ins> 1062 <ins>36-93-17.
</ins> 1063 <ins>All taxes, assessments, rates, fees, rentals, and charges of a district provided for in this
</ins> 1064 <ins>chapter, together with all penalties for default in the payment of the same and all costs in
</ins> 1065 <ins>collecting the same, including reasonable attorney's fees and costs fixed by the court and
</ins> 1066 <ins>taxed as a cost in the action brought to enforce payment, shall, from January 1 for each year
</ins> 1067 <ins>the property is liable to assessment and until paid, constitute a lien of equal dignity with
</ins> 1068 <ins>the liens for state and county taxes and other taxes of equal dignity, notwithstanding the
</ins>
1069 <ins>provisions of Code Section 48-2-56, with the liens for municipal taxes and other taxes of
</ins> 1070 <ins>equal dignity with municipal taxes upon all the lands against which such assessments have
</ins> 1071 <ins>been imposed. A sale of any of the real property within a district for state, county, or other
</ins> 1072 <ins>taxes shall not operate to relieve or release the property so sold from the lien for subsequent
</ins> 1073 <ins>district taxes or installments of district taxes, which lien may be enforced against such
</ins> 1074 <ins>property as though no such sale thereof had been made. Nothing in this chapter shall affect
</ins> 1075 <ins>the rights of lien holders for municipal taxes.
</ins> 1076 <ins>36-93-18.
</ins> 1077 <ins>(a) A district has the right to:
</ins> 1078 <ins>(1) Pay any delinquent state, county, district, municipal, or other tax or assessment upon
</ins> 1079 <ins>lands located wholly or partially within the boundaries of the district; and
</ins> 1080 <ins>(2) Redeem or purchase any tax sales certificates issued or sold on account of any state,
</ins> 1081 <ins>county, district, municipal, or other taxes or assessments upon lands located wholly or
</ins> 1082 <ins>partially within the boundaries of the district.
</ins> 1083 <ins>(b) Delinquent taxes paid, or tax sales certificates redeemed or purchased, by a district,
</ins> 1084 <ins>together with all penalties for the default in payment of the same and all costs in collecting
</ins> 1085 <ins>the same and reasonable attorney's fees and costs, shall constitute a lien in favor of a
</ins> 1086 <ins>district of equal dignity, notwithstanding the provisions of Code Section 48-2-56, with the
</ins> 1087 <ins>liens of municipal taxes and other taxes of equal dignity with municipal taxes upon all the
</ins> 1088 <ins>real property against which the taxes were levied. The lien of a district may be enforced
</ins> 1089 <ins>in the manner provided in this chapter.
</ins> 1090 <ins>(c) In any sale of land, a district may certify to the tax commissioner, tax collector, or other
</ins> 1091 <ins>public official holding such sale the amount of assessments due to such district upon the
</ins> 1092 <ins>lands sought to be sold, and such district shall share in the disbursement of the sales
</ins> 1093 <ins>proceeds in accordance with the provisions of this chapter and under the laws of this state.
</ins>
1094 <ins>36-93-19.
</ins> 1095 <ins>In the event that any assessments, rates, fees, rentals, charges, or delinquent penalties
</ins> 1096 <ins>provided for in Code Section 36-93-18 are not paid when due and are in default for 60 days
</ins> 1097 <ins>or more, the unpaid balance thereof and all interest accrued thereon, together with
</ins> 1098 <ins>reasonable attorney's fees and costs, may be recovered by a district in a civil action.
</ins> 1099 <ins>36-93-20.
</ins> 1100 <ins>To the full extent permitted by law, a district shall require all lands, buildings, premises,
</ins> 1101 <ins>persons, firms, and corporations within such district to use the water management and
</ins> 1102 <ins>control facilities and water and sewer facilities of the district, or any other facility or
</ins> 1103 <ins>service of the district when the district relies on the collection of any rates, fees, or charges
</ins> 1104 <ins>to provide said facility or service or to pay principal and interest on debt obligations
</ins> 1105 <ins>secured by a pledge of revenues generated by the collection of such rates, fees, and
</ins> 1106 <ins>charges.
</ins> 1107 <ins>36-93-21.
</ins> 1108 <ins>(a) A district is authorized to prescribe, fix, establish, and collect rates, fees, rentals, or
</ins> 1109 <ins>other charges, and to revise the same from time to time, for the facilities and services
</ins> 1110 <ins>furnished by such district, within the limits of the district, including, but not limited to,
</ins> 1111 <ins>recreational facilities, water management and control facilities, and water and sewer
</ins> 1112 <ins>systems; to recover the costs of making connection with any district facility or system; and
</ins> 1113 <ins>to provide for reasonable penalties against any user or property for any such rates, fees,
</ins> 1114 <ins>rentals, or other charges that are delinquent.
</ins> 1115 <ins>(b) No rates, fees, rentals, or other charges for any of the facilities or services of the district
</ins> 1116 <ins>provided for in subsection (a) of this Code section shall be fixed until after a public hearing
</ins> 1117 <ins>at which all the users of the proposed facility or services or owners, tenants, or occupants
</ins> 1118 <ins>served or to be served thereby and all other interested persons shall have an opportunity to
</ins>
1119 <ins>be heard concerning the proposed rates, fees, rentals, or other charges. Notice of such
</ins> 1120 <ins>public hearing setting forth the proposed schedule or schedules of rates, fees, rentals, and
</ins> 1121 <ins>other charges shall have been published in the legal organ of the applicable county,
</ins> 1122 <ins>counties, municipality, or municipalities at least once and at least ten days prior to such
</ins> 1123 <ins>public hearing. The rule-making hearing may be adjourned from time to time. After such
</ins> 1124 <ins>hearing, such schedule or schedules, either as initially proposed or as modified or amended,
</ins> 1125 <ins>may be finally adopted. A copy of the schedule or schedules of such rates, fees, rentals,
</ins> 1126 <ins>or charges as finally adopted shall be kept on file in an office designated by the board and
</ins> 1127 <ins>shall be open at all reasonable times to public inspection. The rates, fees, rentals, or
</ins> 1128 <ins>charges so fixed for any class of users or property served shall be extended to cover any
</ins> 1129 <ins>additional users or properties thereafter served which shall fall in the same class, without
</ins> 1130 <ins>the necessity of any notice or hearing.
</ins> 1131 <ins>(c) The rates, fees, rentals, and charges provided for in subsection (a) of this Code section
</ins> 1132 <ins>shall be just and equitable and uniform for users of the same class, and when appropriate
</ins> 1133 <ins>may be based or computed upon the amount of service furnished, upon the average number
</ins> 1134 <ins>of persons residing or working in or otherwise occupying the premises served, or upon any
</ins> 1135 <ins>other factor affecting the use of the facilities furnished, or upon any combination of the
</ins> 1136 <ins>foregoing factors, as may be determined by the board on an equitable basis.
</ins> 1137 <ins>(d) The rates, fees, rentals, or other charges prescribed shall be such as will produce
</ins> 1138 <ins>revenues, together with any other assessments, taxes, revenues, or funds available or
</ins> 1139 <ins>pledged for such purpose, at least sufficient to:
</ins> 1140 <ins>(1) Provide for all expenses of operation and maintenance of such facility or service; and
</ins> 1141 <ins>(2) Pay when due all bonds and interest thereon for the payment of which such revenues
</ins> 1142 <ins>are, or shall have been, pledged or encumbered, including reserves for such purpose and
</ins> 1143 <ins>bonds pursuant to this chapter.
</ins>
1144 <ins>(e) A board shall have the power to enter into contracts for the use of the projects of a
</ins> 1145 <ins>district and with respect to the services and facilities furnished or to be furnished by a
</ins> 1146 <ins>district.
</ins> 1147 <ins>36-93-22.
</ins> 1148 <ins>In the event that any rates, fees, rentals, charges, or delinquent penalties provided for in
</ins> 1149 <ins>Code Section 36-93-21 are not paid as and when due and are in default for 60 days or more,
</ins> 1150 <ins>the unpaid balance thereof and all interest accrued thereon, together with reasonable
</ins> 1151 <ins>attorney's fees and costs, may be recovered by a district in a civil action.
</ins> 1152 <ins>36-93-23.
</ins> 1153 <ins>In the event the fees, rentals, or other charges for water or sewer services are not paid when
</ins> 1154 <ins>due, a board shall have the power, under such reasonable rules and regulations as such
</ins> 1155 <ins>board may adopt, to discontinue and shut off such water or sewer services until such fees,
</ins> 1156 <ins>rentals, or other charges, including interest, penalties, and charges for the shutting off and
</ins> 1157 <ins>discontinuance and the restoration of such water or sewer services, are fully paid. For such
</ins> 1158 <ins>purposes, a board may enter on any lands, waters, or premises of any person, firm,
</ins> 1159 <ins>corporation, or body, public or private, within the district limits. Such delinquent fees,
</ins> 1160 <ins>rentals, or other charges, together with interest, penalties, and charges for the shutting off
</ins> 1161 <ins>and discontinuance and the restoration of such services or facilities and reasonable
</ins> 1162 <ins>attorney's fees and costs and other expenses, may be recovered by a district, which may
</ins> 1163 <ins>also enforce payment of such delinquent fees, rentals, or other charges by any other lawful
</ins> 1164 <ins>method of enforcement.
</ins> 1165 <ins>36-93-24.
</ins> 1166 <ins>A board or any aggrieved person may have recourse to such remedies in law and at equity
</ins> 1167 <ins>as may be necessary to ensure compliance with the provisions of this chapter, including
</ins>
1168 <ins>injunctive relief to enjoin or restrain any person violating the provisions of this chapter or
</ins> 1169 <ins>any bylaws, resolutions, regulations, rules, codes, or orders adopted under this chapter. In
</ins> 1170 <ins>case any building or structure is erected, constructed, reconstructed, altered, repaired,
</ins> 1171 <ins>converted, or maintained, or any building, structure, land, or water is used, in violation of
</ins> 1172 <ins>this chapter or of any code, order, resolution, or other regulation made under authority
</ins> 1173 <ins>conferred by this chapter or under law, a board, any landowner, any citizen residing in the
</ins> 1174 <ins>district, or any governmental agency or general purpose local government with jurisdiction
</ins> 1175 <ins>may institute any appropriate action or proceeding to prevent such unlawful erection,
</ins> 1176 <ins>construction, reconstruction, alteration, repair, conversion, maintenance, or use; to restrain,
</ins> 1177 <ins>correct, or avoid such violation; to prevent the occupancy of such building, structure, land,
</ins> 1178 <ins>or water; and to prevent any illegal act, conduct, business, or use in or about such premises,
</ins> 1179 <ins>land, or water.
</ins> 1180 <ins>36-93-25.
</ins> 1181 <ins>Property, real or personal, that belongs to or is owned by a district, or in which a district
</ins> 1182 <ins>has an ownership interest and is funded by a tax-exempt bond issued by such district, shall
</ins> 1183 <ins>be exempt from levy and sale by virtue of an execution, and no execution or other judicial
</ins> 1184 <ins>process shall issue against such property, nor shall any judgment against a district be a
</ins> 1185 <ins>charge or lien on its property or revenues; provided, however, that nothing in this Code
</ins> 1186 <ins>section shall apply to or limit the rights of bondholders to pursue any remedy for the
</ins> 1187 <ins>enforcement of any lien or pledge given by a district in connection with any of the bonds
</ins> 1188 <ins>or obligations of a district. In the event that taxes on such property become delinquent or
</ins> 1189 <ins>government liens are placed on such property, the federal government, the state
</ins> 1190 <ins>government, or any political subdivision of the state with an interest in such taxes or liens
</ins> 1191 <ins>may pursue a civil action against a district to recover such moneys. Any such government
</ins> 1192 <ins>shall be entitled to recover costs and attorney's fees and costs accrued in the pursuit of such
</ins> 1193 <ins>action.
</ins>
1194 <ins>36-93-26.
</ins> 1195 <ins>(a) A district board may petition to contract or expand the boundaries of a district in the
</ins> 1196 <ins>following manner:
</ins> 1197 <ins>(1) The petition shall comply with the same provisions and contain the same information
</ins> 1198 <ins>required by paragraphs (1) and (2) of subsection (a) of Code Section 36-93-4. In
</ins> 1199 <ins>addition, if the petitioner seeks to expand the district, the petition shall describe the
</ins> 1200 <ins>proposed timetable for construction of any district services in the area, the estimated cost
</ins> 1201 <ins>of constructing the proposed services, and the designation of the future general
</ins> 1202 <ins>distribution, location, and extent of public and private uses of land proposed for the area
</ins> 1203 <ins>by the future land use plan element of the local government comprehensive plan then in
</ins> 1204 <ins>force. If the petitioner seeks to contract the district, the petition shall describe what
</ins> 1205 <ins>services and facilities are currently provided by the district to the area being removed,
</ins> 1206 <ins>and the designation of the future general distribution, location, and extent of public and
</ins> 1207 <ins>private uses of land proposed for the area by the future land element of the adopted local
</ins> 1208 <ins>government comprehensive plan;
</ins> 1209 <ins>(2) A petitioner shall submit to the applicable general purpose local government or
</ins> 1210 <ins>governments an application fee to be established by the applicable general purpose local
</ins> 1211 <ins>government or governments not to exceed $500.00 per 100 acres to be added or removed
</ins> 1212 <ins>from the district's boundaries and located within the jurisdiction of such general purpose
</ins> 1213 <ins>local government or governments and not to exceed $15,000.00 regardless of acreage, to
</ins> 1214 <ins>defray administrative costs associated with the petition, including, but not limited to,
</ins> 1215 <ins>legal fees and any other professional fees incurred by the general purpose local
</ins> 1216 <ins>government or governments;
</ins> 1217 <ins>(3) A public hearing shall be held in the same manner and with the same public notice
</ins> 1218 <ins>as required in paragraph (4) of subsection (a) of Code Section 36-93-4. The applicable
</ins> 1219 <ins>general purpose local government or governments shall consider the record of the public
</ins> 1220 <ins>hearing and the factors set forth in paragraph (5) of subsection (a) of Code
</ins>
1221 <ins>Section 36-93-4 in making its determination to grant or deny a petition to amend the
</ins> 1222 <ins>boundaries of a community development district;
</ins> 1223 <ins>(4) The filing of the petition by the district board of supervisors constitutes consent of
</ins> 1224 <ins>the landowners within the district. In all cases, written consent of those landowners
</ins> 1225 <ins>whose land is to be added to or deleted from the district as provided in
</ins> 1226 <ins>subparagraph (a)(2)(B) of Code Section 36-93-4 is required;
</ins> 1227 <ins>(5) For a petition to establish a new district of less than 2,500 acres on land located
</ins> 1228 <ins>solely in one county or one municipality, sufficiently contiguous lands located within the
</ins> 1229 <ins>county or municipality which the petitioner anticipates adding to the boundaries of the
</ins> 1230 <ins>district within ten years after the effective date of the resolution or ordinance establishing
</ins> 1231 <ins>the district may also be identified. If such sufficiently contiguous land is identified, the
</ins> 1232 <ins>petition shall include a legal description of each additional parcel within the sufficiently
</ins> 1233 <ins>contiguous land, the current owner of the parcel, the acreage of the parcel, and the current
</ins> 1234 <ins>land use designation of the parcel. At least 14 days before the hearing required under
</ins> 1235 <ins>paragraph (4) of subsection (a) of Code Section 36-93-4, the petitioner shall give the
</ins> 1236 <ins>current owner of each such parcel notice of filing the petition to establish the district, the
</ins> 1237 <ins>date and time of the public hearing on the petition, and the name and address of the
</ins> 1238 <ins>petitioner. A parcel shall not be included in the district without the written consent of the
</ins> 1239 <ins>owner of the parcel; and
</ins> 1240 <ins>(6)(A) After establishment of a district, the district board may petition the county or
</ins> 1241 <ins>municipality to amend the boundaries of the district to include a previously identified
</ins> 1242 <ins>parcel that was a proposed addition to the district before its establishment. No filing
</ins> 1243 <ins>fee shall be charged for such petition. Each such petition shall include:
</ins> 1244 <ins>(i) A description of the property to be added to the boundaries of the district by metes
</ins> 1245 <ins>and bounds description, plat or block and lot reference, rectangular survey system, or
</ins> 1246 <ins>any combination thereof;
</ins> 1247 <ins>(ii) Written consent of all owners of the parcel to be added;
</ins>
1248 <ins>(iii) A map of the district including the parcel to be added;
</ins> 1249 <ins>(iv) A description of the development proposed on the additional parcel; and
</ins> 1250 <ins>(v) A copy of the original petition identifying the parcel to be added.
</ins> 1251 <ins>(B) Before filing with the county or municipality, the district board shall provide the
</ins> 1252 <ins>petition to the owner of the proposed additional parcel.
</ins> 1253 <ins>(C) Once the petition is determined sufficient and complete, the county or municipality
</ins> 1254 <ins>shall process the addition of the parcel to the district as an amendment to the ordinance
</ins> 1255 <ins>or resolution that established the district.
</ins> 1256 <ins>(D) The district board shall cause to be published in the legal organ of the applicable
</ins> 1257 <ins>county, counties, municipality, or municipalities a notice of the intent to amend the
</ins> 1258 <ins>ordinance or resolution that established the district. The notice shall be in addition to
</ins> 1259 <ins>any notice required for adoption of the resolution or ordinance amendment. The notice
</ins> 1260 <ins>shall include a general description of the land to be added to the district and the date
</ins> 1261 <ins>and time of the scheduled hearing to amend the ordinance. The district board shall
</ins> 1262 <ins>deliver, including by mail or hand delivery, the notice of the hearing on the ordinance
</ins> 1263 <ins>amendment to the owner of the parcel at least 14 days before the scheduled hearing.
</ins> 1264 <ins>(E) The amendment of a district by the addition of a parcel pursuant to this paragraph
</ins> 1265 <ins>does not alter the transition from landowner voting to qualified elector voting pursuant
</ins> 1266 <ins>to Code Section 36-93-5, even if the total size of the district after the addition of the
</ins> 1267 <ins>parcel exceeds 5,000 acres. Upon adoption of the ordinance expanding the district, the
</ins> 1268 <ins>district board shall cause to be recorded a notice of boundary amendment which reflects
</ins> 1269 <ins>the new boundaries of the district.
</ins> 1270 <ins>(F) This subsection is intended to facilitate the orderly addition of lands to a district
</ins> 1271 <ins>under certain circumstances and does not preclude the addition of lands to any district
</ins> 1272 <ins>using the procedures in the other provisions of this Code section.
</ins> 1273 <ins>(b) A district shall remain in existence unless:
</ins>
1274 <ins>(1) The district is merged with another district as provided in subsection (c) of this Code
</ins> 1275 <ins>section;
</ins> 1276 <ins>(2) All of the specific community development systems, facilities, and services that such
</ins> 1277 <ins>district is authorized to perform have been transferred to a service delivery provider in
</ins> 1278 <ins>the manner provided in subsections (d) and (e) of this Code section; or
</ins> 1279 <ins>(3) The district is dissolved as provided in subsection (f) or (g) of this Code section.
</ins> 1280 <ins>(c) A district may merge with other districts upon filing a petition for merger, which
</ins> 1281 <ins>petition shall include the elements set forth in paragraph (2) of subsection (a) of Code
</ins> 1282 <ins>Section 36-93-4 and which shall be evaluated using the criteria set forth in paragraph (5)
</ins> 1283 <ins>of subsection (a) of Code Section 36-93-4. The filing fee shall be as set forth in
</ins> 1284 <ins>paragraph (3) of subsection (a) of Code Section 36-93-4. In addition, the petition shall
</ins> 1285 <ins>state whether a new district is to be established or whether one district will be the surviving
</ins> 1286 <ins>district. A new district formed by a merger pursuant to this subsection shall assume all
</ins> 1287 <ins>indebtedness of, and receive title to, all property owned by the preexisting districts, and the
</ins> 1288 <ins>rights of creditors and liens upon property are not impaired by such merger. Any claim
</ins> 1289 <ins>existing or action or proceeding pending by or against any district that is a party to the
</ins> 1290 <ins>merger may be continued as if the merger had not occurred, or the surviving district may
</ins> 1291 <ins>be substituted in the proceeding for the district that ceased to exist. Prior to filing a
</ins> 1292 <ins>petition, the districts desiring to merge shall enter into a merger agreement and shall
</ins> 1293 <ins>provide for the proper allocation of the indebtedness so assumed and the manner in which
</ins> 1294 <ins>such debt shall be retired. The approval of the merger agreement and the petition by the
</ins> 1295 <ins>board of supervisors of a district shall constitute consent of the landowners within the
</ins> 1296 <ins>district.
</ins> 1297 <ins>(d) Upon the request of the board of a district, a service delivery provider may adopt a
</ins> 1298 <ins>resolution or ordinance providing for and entering into a contract for the transfer of a
</ins> 1299 <ins>specific district service or infrastructure from a district to the service delivery provider.
</ins>
1300 <ins>(e) Upon the transfer of all of the community development services of a district to a
</ins> 1301 <ins>service delivery provider, the district shall be terminated in accordance with a plan of
</ins> 1302 <ins>termination which shall be adopted by the board of supervisors and filed with the clerk of
</ins> 1303 <ins>the superior court.
</ins> 1304 <ins>(f) If, within five years after the effective date of the rule or ordinance establishing a
</ins> 1305 <ins>district, a landowner has not received a building permit authorizing construction of a
</ins> 1306 <ins>building or structure within the district, the district shall be automatically dissolved.
</ins> 1307 <ins>(g) If a district has no outstanding financial obligations and no operating or maintenance
</ins> 1308 <ins>responsibilities, upon the petition of the district, the district may be dissolved by a
</ins> 1309 <ins>resolution or ordinance of the appropriate general purpose local government.
</ins> 1310 <ins>(h) Prior to any dissolution, debts and other obligations of a district shall be fully paid or
</ins> 1311 <ins>payment otherwise provided for.
</ins> 1312 <ins>36-93-27.
</ins> 1313 <ins>Subsequent to the establishment of a district under this chapter, each contract for the sale
</ins> 1314 <ins>of a parcel of real property and each contract for the sale of a residential unit within the
</ins> 1315 <ins>district shall include, immediately prior to the space reserved in the contract for the
</ins> 1316 <ins>signature of the purchaser, the following disclosure statement in boldface and conspicuous
</ins> 1317 <ins>type which is larger than the type in the remaining text of the contract: 'THE PROPERTY
</ins> 1318 <ins>YOU ARE ABOUT TO PURCHASE IS WITHIN THE (Name of District) COMMUNITY
</ins> 1319 <ins>DEVELOPMENT DISTRICT. THE (Name of District) COMMUNITY DEVELOPMENT
</ins> 1320 <ins>DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS ON THIS
</ins> 1321 <ins>PROPERTY FOR THE COSTS OF ALL IMPROVEMENTS, FACILITIES,
</ins> 1322 <ins>INFRASTRUCTURE, AND DEVELOPMENTS. THESE ASSESSMENTS PAY THE
</ins> 1323 <ins>CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN
</ins> 1324 <ins>PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET
</ins> 1325 <ins>ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES
</ins>
1326 <ins>AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL
</ins> 1327 <ins>GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND
</ins> 1328 <ins>ASSESSMENTS PROVIDED FOR BY LAW. THIS DISCLOSURE AND THE
</ins> 1329 <ins>CONTRACT FOR SALE IN WHICH IT APPEARS SHALL BE ENFORCEABLE IN
</ins> 1330 <ins>ANY COURT OF COMPETENT JURISDICTION.'
</ins> 1331 <ins>36-93-28.
</ins> 1332 <ins>Within 30 days after the effective date of a rule or ordinance establishing a community
</ins> 1333 <ins>development district under this chapter, the district shall cause to be recorded in the
</ins> 1334 <ins>property records in the county in which it is located a 'Notice of Establishment of the
</ins> 1335 <ins>(Name of District) Community Development District.' The notice shall, at a minimum,
</ins> 1336 <ins>include the legal description of the district and a copy of the disclosure statement specified
</ins> 1337 <ins>in Code Section 36-93-8.
</ins> 1338 <ins>36-93-29.
</ins> 1339 <ins>(a) A service delivery provider that is the designated provider of a service for the area in
</ins> 1340 <ins>which a district is to be located pursuant to a service delivery strategy under Article 2 of
</ins> 1341 <ins>Chapter 70 of this title shall receive a copy of the petition to create a district that is filed
</ins> 1342 <ins>with the applicable general purpose local government within five days of submission by
</ins> 1343 <ins>the petitioner to the applicable general purpose local government. The petitioner shall
</ins> 1344 <ins>address and provide such copy to the mayor, sole commissioner, county commission chair,
</ins> 1345 <ins>or director of the service delivery provider, as applicable, by statutory overnight delivery.
</ins> 1346 <ins>The service delivery provider shall have the right of first refusal to provide the service to
</ins> 1347 <ins>the district. Such right of first refusal shall be exercised, and such decision shall be
</ins> 1348 <ins>communicated to the applicable general purpose local government, no fewer than ten days
</ins> 1349 <ins>before its public hearing on the petition. If the service delivery provider exercises its right
</ins> 1350 <ins>to serve the district, it shall enter into a contract with the district, such contract to include
</ins>
1351 <ins>the requirement that the service delivery provider provide its service within the district in
</ins> 1352 <ins>conformity with a mutually agreed-upon timetable of service. A service delivery provider's
</ins> 1353 <ins>requirement that the infrastructure meet the existing standards used within the service area
</ins> 1354 <ins>shall not constitute a refusal to provide service to the district. Likewise, a service delivery
</ins> 1355 <ins>provider's requirement that the district construct, or pay the costs of construction of, any
</ins> 1356 <ins>infrastructure inside or outside of the district necessary to provide service to the district
</ins> 1357 <ins>shall not constitute a refusal to provide such service. Such construction or costs of
</ins> 1358 <ins>construction may include any infrastructure required to connect district infrastructure to the
</ins> 1359 <ins>service delivery provider's existing infrastructure and the costs of any modification,
</ins> 1360 <ins>improvement, or construction of infrastructure necessary to provide service to the district.
</ins> 1361 <ins>The district shall only be required to construct or pay for construction of infrastructure
</ins> 1362 <ins>project costs that are proportionately associated with the infrastructure necessary to serve
</ins> 1363 <ins>the anticipated usage within the district. Finally, a service delivery provider's delay in
</ins> 1364 <ins>providing service due to a lack of permit capacity or due to documented intended use of
</ins> 1365 <ins>existing permit capacity shall not constitute a refusal to provide service to the district.
</ins> 1366 <ins>(b) Water or sewer fees charged to customers located outside the geographic boundaries
</ins> 1367 <ins>of a service delivery provider and within the boundaries of a district shall not be arbitrarily
</ins> 1368 <ins>higher than the fees charged to customers receiving such service which are located within
</ins> 1369 <ins>the geographic boundaries of the service delivery provider.
</ins> 1370 <ins>(c) If a board disputes the water and sewer rate differentials imposed within the district by
</ins> 1371 <ins>the designated service provider, the board may hold a public hearing for the purpose of
</ins> 1372 <ins>reviewing the rate differential. Following the preparation of a rate study by a qualified
</ins> 1373 <ins>independent engineer, the district board may challenge the rate differentials on behalf of
</ins> 1374 <ins>its residents in a court of competent jurisdiction. Prior to such challenge, the dispute shall
</ins> 1375 <ins>be submitted to some form of alternative dispute resolution."
</ins>
1376 SECTION 2.
1377 This Act shall become effective on January 1, 2027, only if an amendment to the
1378 Constitution to provide for the creation of and comprehensive regulation of community
1379 development districts is ratified by the voters at the November, 2026, state-wide general
1380 election. If such an amendment is not so ratified, then this Act shall not become effective
1381 and shall stand repealed on January 1, 2027.
1382 SECTION 3.
1383 All laws and parts of laws in conflict with this Act are repealed.