| HB 1289 - Co/mun & school systems; multiyear contracts; amend provisions |
First Reader Summary
A BILL to amend Chapter 2 of Title 20 of the Official Code of
Georgia Annotated, relating to elementary and secondary
education, so as to repeal certain provisions relating to
multiyear contracts of school systems; to amend Title 36 of the
Official Code of Georgia Annotated, relating to local government,
so as to repeal certain provisions relating to multiyear
contracts of counties and municipalities and provide for
additional restrictions upon certain multiyear and other
contracts of counties, municipalities, and school systems; and
for other purposes.
HB 1289 LC 11 9939/2
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 2 of Title 20 of the Official Code of
1- 2 Georgia Annotated, relating to elementary and secondary
1- 3 education, so as to repeal certain provisions relating to
1- 4 multiyear contracts of school systems; to amend Title 36 of
1- 5 the Official Code of Georgia Annotated, relating to local
1- 6 government, so as to repeal certain provisions relating to
1- 7 multiyear contracts of counties and municipalities and
1- 8 provide for additional restrictions upon certain multiyear
1- 9 and other contracts of counties, municipalities, and school
1-10 systems; to repeal conflicting laws; and for other purposes.
1-11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-12 SECTION 1.
1-13 Chapter 2 of Title 20 of the Official Code of Georgia
1-14 Annotated, relating to elementary and secondary education,
1-15 is amended by striking Code Section 20-2-506, relating to
1-16 multiyear contracts of school systems, and inserting in its
1-17 place the following:
1-18 "20-2-506.
1-19 Repealed."
1-20 SECTION 2.
1-21 Title 36 of the Official Code of Georgia Annotated, relating
1-22 to local government, is amended by striking Code Section
1-23 36-60-13, relating to multiyear contracts of counties and
1-24 municipalities, and inserting in its place the following:
1-25 "36-60-13.
1-26 Reserved."
1-27 SECTION 3.
1-28 Said title is further amended by adding at the end of
1-29 Chapter 80 thereof the following:
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2- 1 "36-80-19.
2- 2 (a) As used in this Code section, the term 'political
2- 3 subdivision' means a county, municipality, or school
2- 4 system.
2- 5 (b) Except as provided in subsection (c) of this Code
2- 6 section, on and after July 1, 2000, no political
2- 7 subdivision in this state shall be authorized to enter
2- 8 into any lease, purchase, lease-purchase, or any other
2- 9 contract of any kind for the acquisition of goods,
2-10 materials, real or personal property, services, or
2-11 supplies unless that contract terminates absolutely and
2-12 without further obligation on the part of that political
2-13 subdivision at the close of the calendar year in which it
2-14 was executed and does not require or authorize its
2-15 renewal.
2-16 (c) Each political subdivision shall be authorized to
2-17 enter into any contract without being subject to the
2-18 limitations of subsection (b) of this Code section only
2-19 if:
2-20 (1) Such contract is for real or personal property which
2-21 is required to be financed pursuant to a federal or
2-22 state court order; or
2-23 (2) Each such contract contains the provisions specified
2-24 in subsection (d) of this Code section, and the
2-25 aggregate obligations of the political subdivision under
2-26 all such contracts executed by that political
2-27 subdivision under the authority of this paragraph shall
2-28 not exceed the lesser of $2 million or 1 percent of the
2-29 total operating budget of that political subdivision for
2-30 the immediately preceding fiscal year in which a
2-31 contract is first executed pursuant to the authority of
2-32 this paragraph; or
2-33 (3) The only other party to the contract is the state, a
2-34 state public agency, a state public corporation, a state
2-35 authority, a political subdivision of the state, or any
2-36 combination of the foregoing, but no party to such
2-37 contract may be a public agency, public corporation, or
2-38 public authority created by general or local law for or
2-39 by a political subdivision of the state.
2-40 (d) A contract authorized under subsection (c) of this
2-41 Code section shall contain provisions for the following:
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3- 1 (1) The contract shall terminate absolutely and without
3- 2 further obligation on the part of the political
3- 3 subdivision at the close of the calendar year in which
3- 4 it was executed and at the close of each succeeding
3- 5 calendar year for which it may be renewed as provided in
3- 6 this Code section;
3- 7 (2) The contract may provide for automatic renewal
3- 8 unless positive action is taken by the political
3- 9 subdivision to terminate such contract, and the nature
3-10 of such action shall be determined by the political
3-11 subdivision and specified in the contract;
3-12 (3) The contract shall state the total obligation of the
3-13 political subdivision for the calendar year of execution
3-14 and shall further state the total obligation which will
3-15 be incurred in each calendar year renewal term, if
3-16 renewed; and
3-17 (4) The contract shall provide that title to any
3-18 supplies, materials, equipment, or other personal
3-19 property shall remain in the vendor until fully paid for
3-20 by the political subdivision.
3-21 (e) In addition to the provisions enumerated in subsection
3-22 (d) of this Code section, any contract described by that
3-23 subsection may include:
3-24 (1) A provision which requires that the contract will
3-25 terminate immediately and absolutely at such time as
3-26 appropriated and otherwise unobligated funds are no
3-27 longer available to satisfy the obligations of the
3-28 political subdivision under the contract; or
3-29 (2) Any other provision reasonably necessary to protect
3-30 the interests of the political subdivision.
3-31 (f) Any contract developed under subsection (c) of this
3-32 Code section shall be deemed to obligate the political
3-33 subdivision only for those sums payable during the
3-34 calendar year of execution or, in the event of a renewal
3-35 by the political subdivision, for those sums payable in
3-36 the individual calendar year renewal term.
3-37 (g) No contract developed and executed pursuant to
3-38 subsection (c) of this Code section shall be deemed to
3-39 create a debt of the political subdivision for the payment
3-40 of any sum beyond the calendar year of execution or, in
3-41 the event of a renewal, beyond the calendar year of such
3-42 renewal.
-3-
4- 1 (h) No contract developed and executed pursuant to
4- 2 subsection (c) of this Code section with respect to the
4- 3 acquisition of real property may be delivered unless a
4- 4 public hearing has been held by the political subdivision
4- 5 after two weeks' notice published in a newspaper of
4- 6 general circulation within the political subdivision.
4- 7 (i) Any such contract executed pursuant to subsection (c)
4- 8 of this Code section may provide for the payment by the
4- 9 political subdivision of interest or the allocation of a
4-10 portion of the contract payment to interest, provided that
4-11 the contract is in compliance with this Code section.
4-12 (j) Any contract developed by a school system under
4-13 subsection (c) of this Code section shall comply with the
4-14 applicable provisions of this Code, and regulations
4-15 thereunder, relating to state allocated capital outlay
4-16 funds and entitlements.
4-17 (k) Nothing in this Code section shall limit the execution
4-18 of a contract by a political subdivision when executed as
4-19 security for general obligation bonds issued by the
4-20 contracting political subdivision."
4-21 SECTION 4.
4-22 All laws and parts of laws in conflict with this Act are
4-23 repealed.
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Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 01/27/00
