During the 2022 regular session of the Georgia General Assembly, the Legislature enacted several pieces of legislation that will affect development agencies in our state. Below is a summary:
By Diem Cap
Law 751 adds a maximum per diem payable to directors of development agencies registered under Ga. Code Ann. § 36-62-1, et seq., at the daily rate reimbursable to members of the General Assembly, which is approximately $7,000 per year.
Jurisdiction for Violations of the Code of Ethics
Law 751 also grants the Georgia Government Transparency and Campaign Finance Commission concurrent jurisdiction over allegations of ethics violations by directors of development agencies acting under Ga. Code Ann. § 36-62-1, et seq.
Creation of regional authorities for industrial development
Law 878 authorizes the creation of a new type of development agency known as the “regional industrial development agency.” Such authority may be created and activated by a duly joint decision of the local governing bodies of each group of 3 to 5 contiguous counties, provided that at least half of the governing body members from each county have completed a basic economic development training course. Such agency shall have the same powers as an individual county development agency established under Ga. Code Ann. § 36-62-1 et seq. and his property qualify for the Quality Employment Tax Credit under Ga. Code Ann. § 48-7-40.17 based on lowest participating region. Law 878 also contains an operational requirement for such regional industrial development agency that it shall develop and operate an “operational business plan” which is also required for joint development agencies operating under the Ga. Code Ann. § 36-62-5.1.
Study Committee of the Development Authorities
With Senate Resolution 809, the “Study Committee of the Senate Development Authorities and the Inner City Development Authorities” was set up. The resolution notes that the practices and procedures of some development agencies have raised questions about the nature and benefits of certain tax breaks, and that there is little to no statewide or centralized oversight or data on the activities of local and inner-city development agencies. The resolution went on to say that because of these problems, a thorough investigation into the establishment, operation and management of development agencies and inner-city development agencies is long overdue to determine whether appropriate provisions in state law are needed to prevent abuse the citizens and taxpayers of the state. It is our understanding that this committee has met several times, held a number of hearings and solicited testimonies from various industry participants. It will be very interesting to follow the progress of this committee (particularly given the recent Rivian bond validation case) and important for development agencies and their constituents to follow the work of this committee closely.
Remarks:
Law 751 amends Ga. Code Ann. §§ 36-62-4 and 36-62-5.
Act 878 amends Ga. Code Ann. § 36-76-2 and issues Ga. Code Ann. § 36-62-5.2.
