SB 630: City of Hiram; transfer of duties and obligations to Paulding County; provide

Senate Bill 630

By: Senator Anavitarte of the 31st

A BILL TO BE ENTITLED

AN ACT

To repeal an Act incorporating the City of Hiram, approved February 27, 1956 (Ga. L. 1956, p. 2620), as amended; to provide for transfer of duties and obligations to Paulding County; to provide for transfer of all legal rights, privileges, and assets to Paulding County; to establish a special tax and service district for outstanding bonded indebtedness and other obligations; to provide for transfer of all federal and state permits and licenses; to provide for the transfer of ongoing judicial actions; to provide for the continuation of zoning and land use regulations; to provide for future proceeds of special and regular local option sales taxes; to provide for the designation of the Community of Hiram; to provide for related matters; to provide for legislative findings and intent; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

WHEREAS, the State of Georgia has a responsibility to ensure that municipalities operate in a fiscally sound and sustainable manner for the protection of their residents; and

WHEREAS, concerns have arisen regarding the financial condition and long-term viability of the City of Hiram; and

WHEREAS, it is in the best interest of the citizens of such municipality and the surrounding community to provide a clear and orderly framework to address such concerns; and

WHEREAS, the General Assembly finds it appropriate to establish a future effective date for the dissolution of the municipal corporation, thereby providing the City with a defined opportunity to demonstrate financial stability, responsible governance, and long-term viability prior to such date; and

WHEREAS, it is the intent of the General Assembly that such time be used by the City to take necessary corrective action, and that the General Assembly retains the authority to revisit and amend such dissolution prior to its effective date should the City demonstrate its ability to operate in a financially sound manner.

SECTION 2.

An Act incorporating the City of Hiram, approved February 27, 1956 (Ga. L. 1956, p. 2620), as amended, is hereby repealed in its entirety.

SECTION 3.

Paulding County, Georgia, shall be vested with full authority to provide all governmental services within that area comprising the former jurisdictional boundary of the City of Hiram. All ordinances, rules, and regulations of Paulding County shall apply within that area as they do in other unincorporated areas of the county, and the appropriate courts of Paulding County shall have jurisdiction to enforce such ordinances; provided, however, that this transition shall not impact any vested rights accrued prior to the effective date of this Act.

SECTION 4.

Upon the effective date of this Act, the existence of any local authority created by or for the City of Hiram shall likewise terminate on the same date; provided, however, that any joint authority of which the City of Hiram was a part shall be modified by operation of law to remove the City of Hiram, and that authority shall continue in existence with its remaining members. The assets and liabilities of any authority terminated pursuant to this section shall be treated in the same manner as assets and liabilities of the City of Hiram under this Act.

SECTION 5.

There is hereby created a special tax and service district to be known as the Hiram Services District which shall correspond to and be coterminous with the corporate limits of the City of Hiram as those corporate limits existed on the effective date of this Act. Upon the completion of the purposes provided in this Act for such service district, the tax and service district may be abolished by resolution of the governing authority of Paulding County.

SECTION 6.

(a) Except as provided herein, all legal rights, privileges, and assets of the City of Hiram and all records of such assets shall pass to Paulding County without the necessity or formality of a deed, bill of sale, or other instrument of transfer. The assets that shall transfer include all real property assets of the City of Hiram of any nature, including, without limitation, freehold estates, easements, life estates, future interests, and co-owned interests; all tangible and intangible personal property assets of the City of Hiram of any nature, including, without limitation, vehicles, heavy equipment, office equipment, and software; all accounts receivable, rights to payment under contracts fully performed by the City of Hiram, and similar financial assets of the City of Hiram of any nature; and all digital and electronic papers and records of the City of Hiram. Expressly excluded from this section are any rights or assets that derive from executory contracts of the City of Hiram addressed in Section 6 of this Act.

(b) Those amounts in any general fund for the City of Hiram shall be immediately transferred to the general fund of Paulding County and segregated by Paulding County for the provision of services within the Hiram Services District.

(c) Those amounts in any special fund for the City of Hiram shall immediately be transferred to a special fund of Paulding County and segregated by Paulding County for their designated special purpose.

SECTION 7.

(a) Except as specifically provided in this Act, neither Paulding County nor the State of Georgia nor any political subdivision of the State of Georgia shall bear any responsibility or liability for obligations, amounts, claims, debts, causes of action, judgments, or liabilities that have accrued to the City of Hiram or its local public authorities, up to and including the effective date of this Act. Nothing in this Act shall in any manner obligate Paulding County to provide continued employment for any employee of the City of Hiram or any local public authority of the city.

(b) Any bonded indebtedness of the City of Hiram shall become the debt and obligation of the special tax and service district established pursuant to Section 4 of this Act. Paulding County shall be the successor to the City of Hiram for all purposes relating to such bonded indebtedness, including the enforcement of rights and remedies of bondholders. The county shall be authorized but not required to levy a special district tax, fee, or assessment within the Hiram Services District for the purpose of paying the amounts due on such bonded debt.

(c) Other than those bonded debts provided for in subsection (b) of this section and Section 11 of this Act, Paulding County shall be authorized but not required to assume the rights and duties of any executory contract of the City of Hiram in effect as of the effective date of this Act. If assumed, any rights and obligations of such contracts that by their nature are personal to the city shall be deemed to apply to the personnel, services, and assets formerly belonging to the city so as to reasonably fulfill the basic purpose and bargain of the original contract. The county shall be authorized but not required to levy a special district tax, fee, or assessment within the Hiram Services District for the purpose of paying the amounts due under such assumed contracts, to the extent that the financial obligations under such contract cannot be fully funded by funds and assets devolved to the county from the City of Hiram.

(d) Financial assets and property devolved to Paulding County that are deemed by the county to be excess for purposes of serving the Hiram Services District shall be used to satisfy any obligations and retire any indebtedness of the City of Hiram.

SECTION 8.

To the maximum extent permitted by law, all federal and state permits and licenses issued to the City of Hiram or its local authorities shall be transferred by operation of law to Paulding County.

SECTION 9.

Notwithstanding any provisions of this Act to the contrary, on the effective date of this Act, if any person is held in the custody of the City of Hiram, such person may be transferred over to the custody of the Paulding County Sheriff's Office or other appropriate law enforcement agency.

SECTION 10.

All cases pending in the Municipal Court of the City of Hiram shall be automatically transferred to the Paulding County Magistrate Court or the appropriate court of competent jurisdiction in Paulding County if jurisdiction does not lie in magistrate court. Any transfer of law enforcement jurisdiction to Paulding County shall not in and of itself abate any pending prosecution of any violation of any ordinance of the City of Hiram, and the county shall be entitled to enforce such city ordinance if a violation occurred while the city ordinances were in effect. As for any other lawsuits involving the City of Hiram in the Georgia judicial system, the city shall cease to exist and therefore shall no longer be a proper party to any legal action.

SECTION 11.

The zoning and land use regulations of the City of Hiram shall be deemed Paulding County ordinances and shall apply within the Hiram Services District only, unless and until Paulding County adopts zoning and land use regulations covering the properties within the Hiram Services District.

SECTION 12.

Paulding County shall be entitled to receive the City of Hiram's share of proceeds of any special purpose local option sales tax imposed pursuant to Article 3 of Chapter 8 of Title 48 of the O.C.G.A. and shall use those proceeds to complete the city projects authorized by the applicable referendum or otherwise abandon the projects in accordance with general law. To the extent that any intergovernmental agreement has been approved between Paulding County and its qualified municipalities in connection with such special purpose local option sales tax, the county shall have the power to act in place of the city for purposes of that agreement.

SECTION 13.

Paulding County and its qualified municipalities shall divide the City of Hiram's share of proceeds of any local option sales tax in accordance with the provisions of Code Section 48-8-89.2 of the O.C.G.A.

SECTION 14.

There is hereby designated a Community of Hiram which shall correspond to and be coterminous with the corporate limits of the City of Hiram as those corporate limits existed on the effective date of this Act. Paulding County is authorized to provide appropriate signage so as to mark the boundaries of such community.

SECTION 15.

This Act shall become effective on July 1, 2027.

SECTION 16.

All laws and parts of laws in conflict with this Act are repealed.