HB1386: HB1386 Local government; county development authorities for certain counties shall not operate within certain municipalities; provide

This bill amends Georgia's development authority law (O.C.G.A. § 36-62-4.1), which already applies to what the law calls a 'massively municipalized county,' meaning a county without a consolidated government where two or more cities cover 95 percent or more of its land. Under the revised language, a county development authority in such a county could not purchase or take title to property for a property tax incentive project inside a city that sits north of the northernmost boundary of the city where the county courthouse (the county site) is located, but only if that city's council or commission has passed a resolution telling the development authority to stay out. The bill protects projects the development authority already approved before January 1, 2026, and it also protects later amendments, refinancing, renewals, or property transfers tied to those earlier projects from being disrupted by the new rule.

• Bars a county development authority in a massively municipalized county (95%+ covered by two or more cities, no consolidated government) from acquiring property for tax incentive projects in certain northern cities.
• Applies the restriction only to cities that have formally adopted a resolution asking the county development authority to stop operating within their limits.
• Limits the restriction geographically to cities located north of the city containing the county's official county site (courthouse location).
• Exempts projects already approved before January 1, 2026, and any later resolution adoption, from disrupting those earlier deals.
• Protects amendments, refinancing, renewals, or property transfers connected to pre-2026 projects from being affected by the new restriction.
• Repeals any existing Georgia laws that conflict with these changes.

County development authorities operating in counties almost entirely covered by incorporated cities, city governments that may adopt resolutions to exclude a county authority, businesses seeking property tax incentive deals, and residents of those cities who could see fewer or different development projects.

Cities in heavily municipalized counties would gain a formal tool to stop a county development authority from buying property or issuing tax incentives inside their borders, shifting control over local economic development deals from the county level toward individual city governments.

• Section 1 revises O.C.G.A. § 36-62-4.1 to define 'massively municipalized county' as one without a consolidated government where two or more cities cover 95 percent or more of its land area.
• Subsection (b) bars the county development authority from acquiring property for a tax incentive project in a qualifying city north of the city with the county site, if that city adopted a resolution against it.
• Subsection (c) grandfathers in projects approved before January 1, 2026, and protects related amendments, refinancing, renewals, or transfers from the new restriction.
• Section 2 repeals any conflicting Georgia laws.

1. 2026-03-03House Committee Favorably Reported (House)
2. 2026-02-24House Second Readers (House)
3. 2026-02-20House First Readers (House)
4. 2026-02-19House Hopper (House)

• Robert Dawson (D, HD-065)Primary sponsor
• Bryce Berry (D, HD-056)
• Sheila Jones (D, HD-060)
• Lydia Glaize (D, HD-067)
• Mekyah McQueen (D, HD-061)
• Jan Jones (R, HD-047)

• local government
• development authorities
• property tax incentives
• city and county relations