Bill > HB1166

This bill amends existing Georgia law concerning municipal corporations, specifically focusing on how inactive or "distressed" municipalities are handled. It clarifies that a municipal corporation is considered inactive and its charter is repealed if it fails to meet certain minimum standards for being an "active" municipality, such as providing essential services like law enforcement or fire protection, holding public meetings, and conducting regular elections. The bill also introduces a new process for identifying and intervening in "distressed municipalities," which are defined as those failing to meet active municipality standards or exhibiting specific financial or operational problems like failing to pay debts, defaulting on bonds, or operating with significant deficits. If a municipality is deemed distressed, the Governor can appoint a review commission, and if they agree, the Governor can petition a court to appoint a receiver. This receiver, who must have relevant experience and is paid by the state, will develop and implement a recovery plan to address the municipality's financial issues, potentially involving the sale or lease of assets and renegotiation of contracts, with the goal of restoring financial stability within a set timeframe, though extensions are possible. The bill also outlines emergency procurement procedures for distressed municipalities and establishes a roster of qualified turnaround specialists.

Government Affairs

https://www.legis.ga.gov/legislation/72776