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HB 1419 - Housing authorities; for profit subsidiaries; authorization

Stanley, Lanett (50th)	Shanahan, Tom E (10th)	Allen, Ben (117th)
Stanley, Pamela A (49th)	Randall, Nikki T (127th)	Howard, Henry L (118th)

Status Summary	HC:	SPCA	SC:	F&PU	FR:	02/10/00	LA:	05/01/00	Signed by Governor

First Reader Summary

A BILL to amend Code Section 8-3-30 of the Official Code of Georgia Annotated, relating to general powers of housing authorities, so as to authorize housing authorities to create for profit subsidiary corporations to participate in certain financing; and for other purposes.

HB 1419                                            HB 1419/FA 
 
      H. B. No. 1419 (AM) 
      By:  Representatives Stanley of the 50th, Shanahan of the 
      10th, Allen of the 117th, Stanley of the 49th, Randall of 
      the 127th and others 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 8-3-30 of the Official Code of Georgia 
  1- 2  Annotated, relating to general powers of housing 
  1- 3  authorities, so as to authorize housing authorities to 
  1- 4  create for profit subsidiary corporations to participate in 
  1- 5  certain financing; to provide for conditions and 
  1- 6  limitations; to provide for authority of the Secretary of 
  1- 7  State in connection therewith; to change certain provisions 
  1- 8  regarding loans and compliance with certain usury statutes; 
  1- 9  to repeal conflicting laws; and for other purposes. 
 
  1-10       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-11                           SECTION 1. 
 
  1-12  Code Section 8-3-30 of the Official Code of Georgia 
  1-13  Annotated, relating to general powers of housing 
  1-14  authorities, is amended in subsection (a) by striking "and" 
  1-15  at the end of paragraph (9); by striking the period at the 
  1-16  end of paragraph (10) and inserting in its place "; and"; 
  1-17  and by adding a new paragraph immediately following 
  1-18  paragraph (10), to be designated paragraph (11), to read as 
  1-19  follows: 
 
  1-20      "(11) To incorporate one or more corporations as 
  1-21      subsidiary corporations of the authority for the purpose 
  1-22      of carrying out any of the powers of the authority and 
  1-23      accomplishing any of the purposes of the authority.  Any 
  1-24      subsidiary corporations created pursuant to this 
  1-25      paragraph shall be created pursuant to Chapter 2 of 
  1-26      Title 14, the 'Georgia Business Corporation Code,' and 
  1-27      the Secretary of State shall be authorized to accept 
  1-28      such filings.  Some or all of the members of the board 
  1-29      of commissioners of the authority may serve as directors 
  1-30      of any subsidiary corporation and such service shall not 
  1-31      constitute a conflict of interest; provided, however, 
  1-32      that no member of the board of commissioners of the 
  1-33      authority shall be eligible to serve as a director of 
  1-34      any subsidiary corporation if that member has any 
  1-35      financial interest in the subsidiary corporation. Upon 
 
 
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  2- 1      dissolution of any subsidiary corporation of the 
  2- 2      authority, any assets shall be distributed to the 
  2- 3      authority as the sole shareholder or to any successor to 
  2- 4      the authority or, failing such succession, to the city 
  2- 5      or county, as applicable.  The authority shall not be 
  2- 6      liable for the debts, obligations, or bonds of any 
  2- 7      subsidiary corporation or for the actions or omissions 
  2- 8      to act of any subsidiary corporation unless the 
  2- 9      authority expressly so consents." 
 
  2-10                           SECTION 2. 
 
  2-11  Said Code section is further amended by striking subsection 
  2-12  (c) and inserting in its place a new subsection (c) to read 
  2-13  as follows: 
 
  2-14    "(c) No loan made by an authority to an entity with which 
  2-15    the authority has entered into a private enterprise 
  2-16    agreement shall be deemed usurious as long as such loan 
  2-17    complies with applicable federal law usurious or otherwise 
  2-18    in violation of Code Section 7-4-17 as long as such loan 
  2-19    complies with Code Section 7-4-18." 
 
  2-20                           SECTION 3. 
 
  2-21  All laws and parts of laws in conflict with this Act are 
  2-22  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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