SB630: SB630 City of Hiram; transfer of duties and obligations to Paulding County; provide

26 LC 61 0495 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. 1956,1 p. 2620), as amended; to provide for transfer of duties and obligations to Paulding County;2 to provide for transfer of all legal rights, privileges, and as sets to Paulding County; to3 establish a special tax and service district for outstanding bo nded indebtedness and other4 obligations; to provide for transfer of all federal and state p ermits and licenses; to provide5 for the transfer of ongoing judicial actions; to provide for the continuation of zoning and land6 use regulations; to provide for future proceeds of special and regular local option sales taxes;7 to provide for the designation of the Community of Hiram; to provide for related matters; to8 provide for legislative findings and intent; to provide an effective date; to repeal conflicting9 laws; and for other purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 WHEREAS, the State of Georgia has a responsibility to ensure that municipalities operate13 in a fiscally sound and sustainable manner for the protection of their residents; and14 S. B. 630 - 1 - 26 LC 61 0495 WHEREAS, concerns have arisen regarding the financial condition and long-term viability15 of the City of Hiram; and16 WHEREAS, it is in the best interest of the citizens of such municipality and the surrounding17 community to provide a clear and orderly framework to address such concerns; and18 WHEREAS, the General Assembly finds it appropriate to establish a future effective date19 for the dissolution of the municipal corporation, thereby providing the City with a defined20 opportunity to demonstrate financial stability, responsible gov ernance, and long-term21 viability prior to such date; and22 WHEREAS, it is the intent of the General Assembly that such time be used by the City to23 take necessary corrective action, and that the General Assembly retains the authority to24 revisit and amend such dissolution prior to its effective date should the City demonstrate its25 ability to operate in a financially sound manner.26 SECTION 2.27 An Act incorporating the City of Hiram, approved February 27, 1956 (Ga. L. 1956, p. 2620),28 as amended, is hereby repealed in its entirety.29 SECTION 3.30 Paulding County, Georgia, shall be vested with full authority t o provide all governmental31 services within that area comprising the former jurisdictional boundary of the City of Hiram. 32 All ordinances, rules, and regulations of Paulding County shall apply within that area as they33 do in other unincorporated areas of the county, and the appropriate courts of Paulding County34 shall have jurisdiction to enforce such ordinances; provided, h owever, that this transition35 shall not impact any vested rights accrued prior to the effective date of this Act.36 S. B. 630 - 2 - 26 LC 61 0495 SECTION 4.37 Upon the effective date of this Act, the existence of any local authority created by or for the38 City of Hiram shall likewise terminate on the same date; provided, however, that any joint39 authority of which the City of Hiram was a part shall be modifi ed by operation of law to40 remove the City of Hiram, and that authority shall continue in existence with its remaining41 members. The assets and liabilities of any authority terminated pursuant to this section shall42 be treated in the same manner as assets and liabilities of the City of Hiram under this Act.43 SECTION 5.44 There is hereby created a special tax and service district to be known as the Hiram Services45 District which shall correspond to and be coterminous with the corporate limits of the City46 of Hiram as those corporate limits existed on the effective dat e of this Act. Upon the47 completion of the purposes provided in this Act for such service district, the tax and service48 district may be abolished by resolution of the governing authority of Paulding County.49 SECTION 6.50 (a) Except as provided herein, all legal rights, privileges, and assets of the City of Hiram and51 all records of such assets shall pass to Paulding County without the necessity or formality of52 a deed, bill of sale, or other instrument of transfer. The assets that shall transfer include all53 real property assets of the City of Hiram of any nature, including, without limitation, freehold54 estates, easements, life estates, future interests, and co-owne d interests; all tangible and55 intangible personal property assets of the City of Hiram of any nature, including, without56 limitation, vehicles, heavy equipment, office equipment, and so ftware; all accounts57 receivable, rights to payment under contracts fully performed b y the City of Hiram, and58 similar financial assets of the City of Hiram of any nature; an d all digital and electronic59 papers and records of the City of Hiram. Expressly excluded from this section are any rights60 S. B. 630 - 3 - 26 LC 61 0495 or assets that derive from executory contracts of the City of Hiram addressed in Section 6 of61 this Act.62 (b) Those amounts in any general fund for the City of Hiram sh all be immediately63 transferred to the general fund of Paulding County and segregated by Paulding County for64 the provision of services within the Hiram Services District.65 (c) Those amounts in any special fund for the City of Hiram shall immediately be transferred66 to a special fund of Paulding County and segregated by Paulding County for their designated67 special purpose.68 SECTION 7.69 (a) Except as specifically provided in this Act, neither Pauld ing County nor the State of70 Georgia nor any political subdivision of the State of Georgia shall bear any responsibility or71 liability for obligations, amounts, claims, debts, causes of action, judgments, or liabilities that72 have accrued to the City of Hiram or its local public authoriti es, up to and including the73 effective date of this Act. Nothing in this Act shall in any manner obligate Paulding County74 to provide continued employment for any employee of the City of Hiram or any local public75 authority of the city.76 (b) Any bonded indebtedness of the City of Hiram shall become the debt and obligation of77 the special tax and service district established pursuant to Se ction 4 of this Act. Paulding78 County shall be the successor to the City of Hiram for all purposes relating to such bonded79 indebtedness, including the enforcement of rights and remedies of bondholders. The county80 shall be authorized but not required to levy a special district tax, fee, or assessment within81 the Hiram Services District for the purpose of paying the amounts due on such bonded debt.82 (c) Other than those bonded debts provided for in subsection ( b) of this section and83 Section 11 of this Act, Paulding County shall be authorized but not required to assume the84 rights and duties of any executory contract of the City of Hiram in effect as of the effective85 date of this Act. If assumed, any rights and obligations of such contracts that by their nature86 S. B. 630 - 4 - 26 LC 61 0495 are personal to the city shall be deemed to apply to the person nel, services, and assets87 formerly belonging to the city so as to reasonably fulfill the basic purpose and bargain of the88 original contract. The county shall be authorized but not required to levy a special district89 tax, fee, or assessment within the Hiram Services District for the purpose of paying the90 amounts due under such assumed contracts, to the extent that the financial obligations under91 such contract cannot be fully funded by funds and assets devolv ed to the county from the92 City of Hiram.93 (d) Financial assets and property devolved to Paulding County that are deemed by the94 county to be excess for purposes of serving the Hiram Services District shall be used to95 satisfy any obligations and retire any indebtedness of the City of Hiram.96 SECTION 8.97 To the maximum extent permitted by law, all federal and state permits and licenses issued98 to the City of Hiram or its local authorities shall be transfer red by operation of law to99 Paulding County.100 SECTION 9.101 Notwithstanding any provisions of this Act to the contrary, on the effective date of this Act,102 if any person is held in the custody of the City of Hiram, such person may be transferred over103 to the custody of the Paulding County Sheriff's Office or other appropriate law enforcement104 agency.105 SECTION 10.106 All cases pending in the Municipal Court of the City of Hiram s hall be automatically107 transferred to the Paulding County Magistrate Court or the appropriate court of competent108 jurisdiction in Paulding County if jurisdiction does not lie in magistrate court. Any transfer109 of law enforcement jurisdiction to Paulding County shall not in and of itself abate any110 S. B. 630 - 5 - 26 LC 61 0495 pending prosecution of any violation of any ordinance of the City of Hiram, and the county111 shall be entitled to enforce such city ordinance if a violation o c c u r r e d w h i l e t h e c i t y112 ordinances were in effect. As for any other lawsuits involving the City of Hiram in the113 Georgia judicial system, the city shall cease to exist and therefore shall no longer be a proper114 party to any legal action.115 SECTION 11.116 The zoning and land use regulations of the City of Hiram shall be deemed Paulding County117 ordinances and shall apply within the Hiram Services District only, unless and until Paulding118 County adopts zoning and land use regulations covering the prop erties within the Hiram119 Services District.120 SECTION 12.121 Paulding County shall be entitled to receive the City of Hiram' s share of proceeds of any122 special purpose local option sales tax imposed pursuant to Article 3 of Chapter 8 of Title 48123 of the O.C.G.A. and shall use those proceeds to complete the city projects authorized by the124 applicable referendum or otherwise abandon the projects in acco rdance with general law. 125 To the extent that any intergovernmental agreement has been app roved between Paulding126 County and its qualified municipalities in connection with such special purpose local option127 sales tax, the county shall have the power to act in place of t he city for purposes of that128 agreement.129 SECTION 13.130 Paulding County and its qualified municipalities shall divide t he City of Hiram's share of131 proceeds of any local option sales tax in accordance with the p rovisions of Code132 Section 48-8-89.2 of the O.C.G.A.133 S. B. 630 - 6 - 26 LC 61 0495 SECTION 14.134 There is hereby designated a Community of Hiram which shall cor respond to and be135 coterminous with the corporate limits of the City of Hiram as those corporate limits existed136 on the effective date of this Act. Paulding County is authoriz ed to provide appropriate137 signage so as to mark the boundaries of such community.138 SECTION 15.139 This Act shall become effective on July 1, 2027.140 SECTION 16.141 All laws and parts of laws in conflict with this Act are repealed.142 S. B. 630 - 7 -