HB 709: Demorest, City of; Redevelopment Powers Law; provide for a referendum

Georgia law lets cities use special redevelopment tools, such as tax allocation districts and tax allocation bonds, to fund community redevelopment projects, but a city must be specifically authorized by the General Assembly to use them. This bill grants that authorization to the City of Demorest, Georgia, allowing it to exercise all powers available under the Redevelopment Powers Law (O.C.G.A. § 36-44-1 et seq.) and the related section of the Georgia Constitution. The authorization does not take effect automatically. Section 2 requires Demorest's election superintendent to hold a referendum on November 4, 2025, asking voters to approve or reject the redevelopment powers. If more than half of the votes cast favor approval, the authorization becomes effective immediately. If voters reject it, or if the election is not properly held, the authorization never takes effect and the bill automatically repeals itself on the following January 1.

• Authorizes the City of Demorest to use all powers under Georgia's Redevelopment Powers Law (O.C.G.A. § 36-44-1 et seq.), including creating tax allocation districts and issuing tax allocation bonds.
• Requires a citywide referendum on November 4, 2025, so Demorest voters can approve or reject the new redevelopment powers.
• Sets the ballot question voters will see and requires the result to be certified to the Georgia Secretary of State.
• Makes the authorization take effect immediately if a majority of voters approve it in the referendum.
• Automatically repeals the authorization on the following January 1 if voters reject it or the election is not properly conducted.

Residents and registered voters of the City of Demorest, who will decide the outcome in the referendum; Demorest city government, which would gain new financing tools for redevelopment projects; and Habersham County's election officials, who must publish notice of and administer the vote.

If approved by voters, Demorest could pursue redevelopment financing tools like tax allocation districts and bonds, potentially funding revitalization projects using future increases in property tax revenue from those areas. Whether the city gains these tools depends entirely on the outcome of the November 2025 referendum.

• Section 1 authorizes the City of Demorest to exercise all redevelopment powers under Chapter 44 of Title 36 of the O.C.G.A. and the related constitutional provision, including creating tax allocation districts and issuing bonds.
• Section 2 requires a referendum on November 4, 2025, with the exact ballot language specified, and requires published notice in Habersham County's official legal organ 90 days and then weekly for two weeks before the vote.
• Section 2 specifies that if a majority vote yes, Section 1 takes effect immediately; if not, or if the election isn't properly held, the whole Act is automatically repealed the following January 1.
• Section 2 assigns the cost of the election to the City of Demorest and requires certification of results to the Secretary of State.
• Section 3 sets the general effective date as upon the Governor's approval or the bill becoming law without signature, except where Section 2 controls.
• Section 4 repeals any conflicting laws.

1. 2025-05-13Effective Date
2. 2025-05-13Act 213
3. 2025-05-13House Date Signed by Governor (House)
4. 2025-04-10House Sent to Governor (House)
5. 2025-04-04Senate Passed/Adopted (Senate)
6. 2025-04-04Senate Committee Favorably Reported (Senate)
7. 2025-03-31Senate Read and Referred (Senate)
8. 2025-03-28House Passed/Adopted (House)

• Victor Anderson (R, HD-10)Primary sponsor
• Chris Erwin (R, HD-32)

1. PassedHouse voteMarch 28, 2025

   160 yea, 0 nay (8 not voting, 12 excused)

   Local Calendar: House Vote #332

2. PassedSenate voteApril 4, 2025

   51 yea, 1 nay (3 not voting, 1 excused)

   LOCAL CONSENT CALENDAR: Senate Vote #446

• redevelopment powers
• tax allocation districts
• local referendum
• Demorest Georgia
• municipal government