---
title: SB 38. Development Impact Fees; provide for education
collection: bills
id: 2025-2026/sb38
cite_as: SB 38, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb38
md_url: https://georgiacommons.org/bills/2025-2026/sb38.md
text_url: https://georgiacommons.org/bills/2025-2026/sb38/text
source_url: https://www.legis.ga.gov/legislation/69559
date: 2025-01-29
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb38.md?full=1
bill_number: SB 38
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2025-01-28
last_action: Senate Read and Referred
sponsors:
  - Greg Dolezal
  - Shawn Still
  - Jason Anavitarte
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB38/2025
upstream_id: 1945138
summaries_model: claude-sonnet-5
topic_tags:
  - development impact fees
  - school funding
  - education construction
  - property development
  - school enrollment growth
---

# SB 38. Development Impact Fees; provide for education

## Text

Senate Bill 38
By: Senators Dolezal of the 27th, Still of the 48th and Anavitarte of the 31st
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 71 of Title 36 of the Official Code of Georgia Annotated, relating to
development impact fees, so as to provide for development impact fees for education; to
provide for definitions; to provide for the manner of calculation, imposition, and collection
of such fees; to provide for related matters; to provide for a contingent effective date and for
automatic repeal; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 71 of Title 36 of the Official Code of Georgia Annotated, relating to development
impact fees, is amended by revising Code Section 36-71-1, relating to short title and
legislative findings and intent, as follows:
"36-71-1.
(a) This chapter shall be known and may be cited as the 'Georgia Development Impact Fee
Act.'
(b) The General Assembly finds that an equitable program for planning and financing
public facilities needed to serve new growth and development is necessary in order to
promote and accommodate orderly growth and development and to protect the public
health, safety, and general welfare of the citizens of the State of Georgia. It is the intent of
this chapter to:
(1) Ensure that adequate public facilities are available to serve new growth and
development;
(2) Promote orderly growth and development by establishing uniform standards by
which municipalities, <del>and</del> counties, <ins>and local school systems</ins> may require that new
growth and development pay a proportionate share of the cost of new public facilities
needed to serve new growth and development;
(3) Establish minimum standards for the adoption of development impact fee ordinances
<ins>or resolutions</ins> by municipalities, <del>and</del> counties, <ins>and local school systems;</ins> and
(4) Ensure that new growth and development is required to pay no more than its
proportionate share of the cost of public facilities needed to serve new growth and
development and to prevent duplicate and ad hoc development exactions."
SECTION 2.
Said chapter is further amended by designating Code Sections 36-71-1 and 36-71-2 as Article
1, by designating Code Sections 36-71-3 through 36-71-13 as Article 2, and by adding a new
article to read as follows:
<ins>"ARTICLE 3
36-71-20.
As used in this article, the term:
(1) 'Educational development impact fees' means development impact fees that are
imposed to pay for a share of the cost of additional educational facilities to serve new
growth and development in the same area in which such fees are imposed.
(2) 'High growth school system' means a local school system in this state with:
</ins>
<ins>(A) A total increase in system-wide student enrollment of 20 percent or more during
the immediately preceding ten-year period; and
(B) Total expenditures of $250 million or more for the construction of new educational
facilities as such term is defined in Code Section 20-2-260 during the immediately
preceding ten-year period.
36-71-21.
Each local board of education of a high growth school system may by resolution impose,
levy, and collect educational development impact fees within any area of such school
system with a total increase in student enrollment of 20 percent or more during the
immediately preceding ten-year period.
36-71-22.
(a) Before imposing educational development impact fees under this article, a local board
of education of a high growth school system shall adopt a public resolution finding that
such school system is a high growth school system and shall create an educational
development impact fee advisory committee.
(b) The educational development impact fee advisory committee shall be composed in the
same manner as provided for development impact fee advisory committees in
subsection (b) of Code Section 36-71-5.
(c) The educational development impact fee advisory committee shall serve in an advisory
capacity to assist and advise the local board of education with regard to the adoption of an
educational development impact fee resolution. Such committee shall be advisory, and no
action of such committee shall be considered a necessary prerequisite for action of a local
board of education in regard to adoption of a resolution.
(d) In determining the educational development impact fees, the local board of education
and the educational development impact fee advisory committee shall consider the
</ins>
<ins>projected number of students that will come from different types of developments, such as
single-family houses, apartments, condominiums, multifamily housing, age restricted
communities, assisted or senior living facilities, and other residential rental properties;
provided, however, that in all other matters educational development impact fees shall be
calculated as provided by and conform to the requirements of Code Section 36-71-4.
(e) The educational development impact fee advisory committee may also recommend to
the local board of education how the educational development impact fees shall be used to
offset bonded indebtedness, educational special purpose local option sales taxes, millage
rates, and other tax burdens on citizens residing in the area served by the local school
system.
(f) The educational development impact fee advisory committee shall provide its
calculations, recommendations, and explanations in a report to the local board of education.
(g) The local board of education shall adopt a resolution adopting the educational
development impact fee schedule. Such fee schedule shall be sent to each local
government in the area served by the local school system.
(h) Each local government in the area served by the local school system shall collect
educational development impact fees at the same time and in the same manner as other
development impact fees under Article 2 of this chapter. Such local governments are
authorized to retain 3 percent of the educational development impact fees collected as
reimbursement for their administrative costs and shall forward the remaining amount to the
local board of education.
36-71-23.
Educational development impact fees shall be valid for a period of ten years following their
adoption by the local board of education. Notwithstanding any other Code section of this
article to the contrary, the fees may be extended for additional five-year periods in the
manner provided for in Code Section 36-71-22 for the initial adoption, provided that, in at
</ins>
<ins>least one of the preceding five years, such local school system experienced an increase of
3 percent or more in the total number of students enrolled system wide. The local board
of education may at any time by resolution of such local board of education lower or
remove such fees if the growth assumptions change."
</ins> SECTION 3.
This Act shall become effective on January 1, 2027, only if an amendment to the state
Constitution authorizing educational development impact fees is adopted by the General
Assembly and is ratified by the voters at the 2026 general election. Otherwise, this Act shall
not become effective and shall stand repealed by operation of law on January 1, 2027.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

Senate Bill 38 would let fast-growing Georgia school systems charge developers a new fee, called an educational development impact fee, to help pay for new schools needed because of new housing growth.

### Plain-language summary

Georgia already allows cities and counties to charge development impact fees under the Georgia Development Impact Fee Act (O.C.G.A. Chapter 71 of Title 36), which make new construction pay a share of the cost of public facilities needed to serve growth. This bill would extend that idea to public schools. It adds a new article letting a local board of education in a 'high growth school system,' defined as one with at least 20 percent enrollment growth and $250 million or more in new school construction spending over the prior ten years, adopt a resolution to impose these fees in fast-growing parts of its district.
Before charging the fee, the school board must form an advisory committee, calculate the fee based on projected students from different housing types, and adopt a public fee schedule. Local governments would collect the fees alongside other development impact fees, keeping 3 percent for administrative costs. The fees last ten years and can be renewed in five-year increments if growth continues. The whole bill only takes effect if Georgia voters approve a related state constitutional amendment in the 2026 general election; otherwise it is automatically repealed on January 1, 2027.

### What it does

- Creates a new type of fee, called an educational development impact fee, that high-growth local school systems can charge new development to help fund new school construction.
- Defines a 'high growth school system' as one with 20 percent or more student enrollment growth and $250 million or more in new school construction spending over the prior ten years.
- Requires a local board of education to adopt a public resolution and create an advisory committee before imposing the fee.
- Directs local governments to collect the fees using the same process as existing development impact fees, while keeping 3 percent of collections for administrative costs.
- Sets a ten-year limit on the fees, renewable in five-year periods if enrollment keeps growing by at least 3 percent in one of the prior five years.
- Makes the entire law contingent on voters ratifying a related state constitutional amendment in the 2026 general election, with automatic repeal on January 1, 2027 if that fails.

### Who it affects

Local boards of education in fast-growing Georgia school districts, city and county governments that collect development impact fees, homebuilders and developers of new housing, and residents and families who buy or rent homes in areas experiencing rapid enrollment growth.

### Why it matters

If enacted, growing school districts could shift some of the cost of building new schools onto new housing development rather than existing taxpayers, potentially raising costs for builders and new homebuyers while giving school boards another funding tool tied directly to enrollment growth.

### Key provisions

- Section 1 revises the Code's statement of intent (O.C.G.A. § 36-71-1) to add local school systems alongside municipalities and counties as entities that can require growth to pay its share of new facility costs.
- Section 2 adds new Article 3 (O.C.G.A. §§ 36-71-20 through 36-71-23) creating educational development impact fees for 'high growth school systems.'
- Section 2 requires the school board to form an advisory committee modeled on the existing committee structure in O.C.G.A. § 36-71-5 before adopting a fee.
- Section 2 requires fee calculations to follow the existing methodology in O.C.G.A. § 36-71-4, factoring in projected students from different housing types.
- Section 2 lets local governments retain 3 percent of collected fees for administrative costs before forwarding the rest to the school board.
- Section 2 sets a ten-year validity period for the fees, renewable in five-year increments tied to continued enrollment growth.
- Section 3 makes the entire Act contingent on a 2026 constitutional amendment being ratified by voters, with automatic repeal on January 1, 2027 if it is not.

## Status

- Status: Introduced (2025-01-28)
- Last action: Senate Read and Referred (2025-01-29)
- Sponsors: Greg Dolezal, Shawn Still, Jason Anavitarte
- Official page: https://www.legis.ga.gov/legislation/69559

> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb38.md?full=1
