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Subcommittee advances bill to cap municipal revenue from fines at 10%
Summary
HB 140 would bar municipalities from retaining more than 10% of their budgets from criminal and civil fines and, for any excess, remits the remainder to the state; the subcommittee advanced the bill after extensive testimony for and against.
The State and Local Government Subcommittee voted to advance HB 140, legislation that would cap the portion of a municipality's budget derived from criminal and civil fines at 10 percent and direct any excess to the state.
Representative Gullett, the bill's sponsor, told the committee the measure aims to stop municipalities from funding government operations primarily with fines and citations. “No city, no municipality can raise more than 10% of their entire city budget or through, criminal and civil fines,” he said. Gullett said the cap was modeled on a recent Alabama reform and argued that excessive reliance on fines can amount to a backdoor tax that should be decided by voters.
Multiple witnesses testified both for and against the bill. Ray Calofani of the Georgia Budget and Policy Institute (GBPI) supported the measure and cited GBPI research that identified roughly 77 cities in 2022 with fines and fees equal to 10 percent or more of municipal budgets, arguing fines disproportionately burden low-income residents.
DJ Waller of the Georgia Municipal Association (GMA) said GMA supports the bill's goals but urged refinements. GMA recommended raising the cap to 25 percent for smaller cities, excluding asset forfeiture from the calculation, directing excess revenue to the Criminal Justice Coordinating Council (CJCC) for public-safety grants, and delaying the effective date to allow jurisdictions to adjust.
Scott Turner, a former state representative testifying in favor, spoke about civil asset forfeiture and due process concerns and said reform would reduce incentives for policing for profit. A resident, Emma Boone, described places she said were policing for profit and urged passage.
Reason Foundation's Vittorio Nastasi, testifying remotely, said the bill severs monetary incentives linking enforcement priorities and municipal revenue and noted the existing DPS oversight counts only speeding revenue against a 35 percent police-budget threshold, leaving other citation revenue uncounted.
Committee members asked about how many municipalities would be affected, treatment of forfeitures and whether limiting fine revenue could trigger statutory constraints enacted in 2021 that restrict reductions to law-enforcement budgets. GMA said some small local governments rely heavily on fines and expressed concern that a 10 percent cap could force cuts or conflicts with the 2021 law; GMA proposed 25 percent as an alternative.
After testimony and questions, the subcommittee voted to advance HB 140. The chair announced the motion passed; the transcript does not record a roll-call tally.
