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2026 Capitol Update - Week 4

2026 Capitol Update - Week 4

February 2, 2026

Last week, lawmakers met Monday through Thursday for Legislative Days 6 through 9, though Monday was a pro forma day due to the ice preventing many legislators and staff from traveling to the Capitol. 

 

House leadership unveiled one of their top legislative priorities for the year: the Home Ownership and Market Equalization Act of 2026 (HOME Act). The bill, HB 1116 by Chairman Shaw Blackmon (R-Bonaire), would phase out property taxes on an individual’s primary residence by 2032. The phase-out would be accomplished by gradually increasing the state homestead exemptionThe proposal requires the passage of a constitutional amendment, HR 1114which would place the initiative on the ballot before Georgia votersThe HOME Act also includes provisions allowing local governments to adjust other funding mechanisms to offset lost revenue. This proposal is a major priority for House Republicans this year and aligns with the party’s broader affordability theme this session 

 

Data centers are another reoccurring theme this year. Measures include an immediate elimination of the sales and use tax exemption on data centers (SB 410 by Sen. Matt Brass (R-Newnan)); moving up the sunset of the tax exemption from 2032 to 2027 (SB 408 by Sen. Nan Orrock (D-Atlanta))imposing a moratorium on new data centers (HB 1012 by Rep. Ruwa Romman (D-Duluth)); and limiting power companies’ ability to recover data center related infrastructure costs from other customers (SB 34 by Sen. Chuck Hufstetler (R-Rome))The interest in reexamining data center policy appears to be bipartisansuggesting that any final legislation could reflect a negotiated compromiseGiven the significant role data centers play in generating property tax revenue, these proposals and others yet to come will very likely play into the overall property tax proposals mentioned above.  

 

On the topic of real property, HB 812 by Rep. Mike Cheokas (R-Americus) continues to be reviewed by stakeholders seeking to reduce some of the regulatory burdens local governments impose on commercial and residential developments. We believe that clarifying that the private plan review processes currently applicable to vertical construction also apply to horizontal construction would strengthen the bill and address concerns from local governments about staffing needs and compliance with tighter application turnaround timelines. 

 

Additionally, this week SB 437 by Sen. Clint Dixon (R-Buford) was introduced and assigned to the Senate State and Local Governmental Operations Committee. The bill clarifies that when a permit applicant hires a private professional provider to conduct a plan review or inspection, the local government must acknowledge and allow that review to proceed, even if the local authority has not completed its own review. The proposal also shortens the shot clock for determining whether an application is complete for plan review or inspection from 30 days to 10 daysFurther, the bill clarifies that a review or inspection can be done in person or virtually. The bill is expected to evolve as local governments and industry stakeholders work through potential revisions. 

 

This week, lawmakers will be convening for Legislative Days 10 through 14. See you soon! 


LEGISLATION ACEC GEORGIA IS FOLLOWING:  

  

Local Government   

HB 152 by Representative Matt Reeves (R-Duluth): would extend the existing Mini Brooks Act to local governments. This would require Qualifications-Based Selection for the procurement of A/E services for projects where professional services are estimated to be $75,000 or more or for any project with a total preliminary construction cost of over $1 million.  

Status: Assigned to the House Governmental Affairs Committee  

Position: SUPPORT  

  

HB 168 by Representative Mitchell Horner (R-Ringgold): would require any local proposal to reimpose a previously passed SPLOST to pass the General Assembly as a local bill (i.e., if a jurisdiction wants to reimpose a SPLOST, they will have to go through the General Assembly to do it.) 

Status: Assigned to the Ways & Means Committee  

Position: Reviewing   

  

HB 317 by Representative Ron Stephens (R-Savannah): would create a new option for local governments to help finance essential infrastructure needs called a “Workforce and Residential Infrastructure District (WRID). If approved by the local government, this would allow landowners within the district to self-impose taxes to fund these public infrastructure projects & improvements. A constitutional amendment would be required for the enactment of the legislation which has been filed as HR 192 by Representative Ron Stephens (R-Savannah).  

Status: Assigned to the House Ways & Means Committee (was originally assigned to Governmental Affairs). The sponsor and advocates agree that this should be a 2 year bill, as it requires a constitutional amendment. This initiative is back this session.  

Position: SUPPORT   

 

HB 531 by Representative Matt Reeves (R-Duluth): proposes to extend the period for plaintiffs to provide notice (ante litem notice) for an intent to sue a city from six months to twelve months. The legislation also has a provision to limit the liability for cities at $3 million per person and $5 million per occurrence. Read more about cities liability appeal here. 

Status: Passed the House Judiciary Committee; Passed the House 161 to 13; Passed the Senate Judiciary Committee; Recommitted to the Senate Judiciary Committee  

Position: Monitor  

 

HB 812 by Representative Mike Cheokas (R-Americus): proposes to reinforce the shot clock on local government plan reviews by limiting the number of rounds an application may undergo. The legislation continues to enforce the 45-day turn around requirement for local governments but would require a new 14-day turn around where a local government would then be required to issue or deny the permit. Any comments made by the local government would need a citation for the exact local, state, or federal rule or regulation they violate. The main purpose of this bill is to limit a local government’s ability to perpetually run the clock on a permit issuance or denial and end the practice of unlimited rounds of comments where new items are introduced during subsequent rounds.  

Status: Heard in House Governmental Affairs subcommittee on State & Local Government.  

Position: Support 

   

SB 51 by Senator Ed Setzler (R-Acworth): this legislation would require qualifications-based selection for the procurement of A/E services for local government projects where the professional services cost is estimated to be $75,000 or more, or if the project cost is estimated to be $1 million or more. This is not a prohibition on cost being a factor, this simply shifts the consideration of cost to a second stage of negotiation after the firms have been ranked, rather than cost being an initial evaluation.   

Status: Passed the Senate State and Local Governmental Affairs Committee unanimously; passed the Senate 54 to 1; passed the House Governmental Affairs Committee; recommitted to the House Governmental Affairs Committee 

Position: SUPPORT  

  

SB 151 by Senator Brandon Beach (R-Alpharetta): proposes the creation of a “Joint Development Authority of North Fulton Municipalities”. A committee of seven directors would be created with one representative each from Alpharetta, Johns Creek, Milton, Mountain Park, Roswell, and Sandy Springs, with a seventh member being appointed by the committee.   

Status: Passed out of the Senate State and Local Governmental Affairs Committee; passed the Senate 32 to 23. Passed the House Intragovernmental Coordination Committee. The House passed this with a substitute, however the substitute did not receive a final agree on the Senate side in 2025. With Senator Beach’s resignation to serve as US Treasurer, it is unclear what is happening to this measure.  

Position: Monitor  

  

Industry & Professions  

HB 107 by Representative Bethany Ballard (R-Warner Robins): would require all professional licensing boards in the state to adopt a process by which spouses of military members or transitioning service members may obtain a digitally verifiable license.   

Status: Passed the House Defense & Veterans Affairs Committee  

Position: Monitor  

  

SB 28 by Senator Greg Dolezal (R-Forsyth County): this legislation aims to reduce red tape and reconfigure how the regulatory environment operates in Georgia by allowing the legislature to take a more active role in regulatory activities.   

Status: Passed the Senate Economic Development & Tourism Committee; passed the Senate 31 to 23. Passed the Senate Budget and Fiscal Affairs Oversight Committee; recommitted to the Senate Budget and Fiscal Affairs Oversight Committee. 

Position: Monitor  

  

SB 207 by Senator Brian Strickland (R-McDonough): would provide a preclearance process for the licensing of individuals with criminal records who apply for a professional license in the state.  

Status: Passed the Senate Judiciary Committee; passed the Senate 55 to 0. Passed the House Judiciary Committee; Passed the House 170 to 0; Senate agreed to the House version with a Senate floor amendment, so it needs an agree on the House side before it can pass. Still pending an agree 

Position: SUPPORT   

  

Transportation   

 HB 76 by Representative Stacey Evans (D-Atlanta): would require the Department of Transportation to host public hearings for local transportation projects of significant impact.  

Status: Assigned to House Transportation Committee  

Position: REVIEWING   

  

HB 387 by Representative Brad Thomas (R-Holly Springs): would require a service delivery agreement to include a growth boundary agreement component.  

Status: Assigned to the House Governmental Affairs Committee  

Position: Monitor  

 

HB 1070 by Representative Leesa Hagan (R-Lyons): would increase the tax credit for Class III railroad maintenance expenditures from $3500 to $5000 and would move the sunset from December 30, 2026 to December 30, 2031. 

Status: Assigned to the House Ways & Means Committee 

Position: Monitor 

  

Water & Environmental  

HB 559 by Representative John Carson (R-Marietta): this legislation would revise the sunset date on the sales tax exemption for the equipment used in data centers from 2031 to 2026.   

Status: Assigned to the House Ways & Means Committee  

Position: Monitor   

 

HB 1012 by Rep. Ruwa Romman (D-Duluth): places a moratorium on new data centers construction after July 1, 2026.  

Status: Assigned to House Governmental Affairs  

Position: Monitor 

  

SB 34 by Senator Chuck Hufstetler (R-Rome): would prohibit an electrical utility provider from recovering the cost of servicing a data center from regular ratepayers.   

Status: Assigned to Senate Regulated Industries & Utilities Committee  

Position: Monitor  

 

SB 408 by Senator Nan Orrock (D-Atlanta): would change the sunset for the sales and use tax exemption on data centers from January 1, 2032 to January 1, 2027.  

Status: Assigned to Senate Finance Committee 

Position: Monitor 

 

SB 410 by Senator Matt Brass (R-Rome): proposes to end the sales & use tax exemptions for new data centers, effective upon signature of the governor.  

Status: Referred to the Senate Finance Committee 

Position: Reviewing  

 

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