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| Georgia General Assembly |
HB879.html
01 LC 18 1008ER
House Bill
879
By: Representatives Royal of the 164th,
Sholar of the 179th, Bulloch of the 180th, Houston of the
166th and Scott of the 165th
A BILL TO BE
ENTITLED
AN ACT
To create the South Georgia Governmental Services Authority
and to authorize such authority to provide, acquire, construct, equip, maintain,
and operate public service facilities, to acquire the necessary property
therefor, both real and personal, and to lease or sell any or all of such
facilities, including real and personal property; to confer powers and to impose
duties on the authority; to provide for the membership and for the appointment
of members of the authority and their term of tenure and compensation; to
authorize the authority to contract with others pertaining to facilities and
services, to execute leases and contracts relating to such facilities and
services, to convey title to property of the authority in fee simple, and to do
all things deemed necessary or convenient for the operation of such
undertakings; to authorize the authority and other political subdivisions,
including specifically the City of Cairo, the City of Camilla, the City of
Moultrie, and the City of Thomasville, to enter into contracts and leases
pertaining to uses of such facilities and services, which contracts and leases
shall obligate the lessees to make payment for the use of such facilities and
services for the term thereof and to pledge for that purpose revenues derived
from taxation; to provide that no debt of the City of Cairo, the City of
Camilla, the City of Moultrie, or the City of Thomasville, or other political
subdivisions within the meaning set forth in Article IX, Section V, Paragraph I
of the Constitution of the State of Georgia, shall be incurred by exercise of
the powers granted; to authorize the issuance of revenue bonds or obligations of
the authority, payable from the revenues, tolls, fees, charges, and earnings of
the authority, including, but not limited to, earnings derived from contracts,
leases, and income from conveyances of real or personal property of the
authority; to authorize the payment of the cost of such undertakings, to
authorize the collection and pledging of the revenues and earnings of the
authority for the payment of such bonds or obligations and to secure the payment
thereof; to define the rights of the holders of such bonds or obligations; to
make the bonds or obligations of the authority exempt from taxation; to make the
property of the authority exempt from taxation and assessment; to grant the
authority and its members certain immunities; to authorize the issuance of
refunding bonds or obligations; to fix the venue or jurisdiction of actions
relating to any provisions of this Act; to provide that bonds or obligations be
validated as authorized by Article 3 of Chapter 82 of Title 36 of the O.C.G.A.,
the "Revenue Bond Law"; to provide for construction; to provide for conveyance
of property upon dissolution; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION
1.
Short title.
This Act shall be known and may be cited as the "South
Georgia Governmental Services Authority Act."
SECTION
2.
Creation of authority; members.
(a) There is created a body corporate and politic to be
known as the South Georgia Governmental Services Authority, which shall be
deemed to be a political subdivision of the State of Georgia and a public
corporation and instrumentality by that name, style, and title, and said body
may contract and be contracted with, sue and be sued, implead and be impleaded,
and complain and defend in all courts of law and equity, except that the
authority or the trustee acting under a trust indenture shall in no event be
liable for any torts committed by any of the officers, agents, and employees of
the authority. The authority shall not be a state institution, nor a department
or agency of the state, but shall be an instrumentality of the state having a
distinct corporate entity and being exempt from the provisions of Article 2 of
Chapter 17 of Title 50 of the O.C.G.A., the "Georgia State Financing and
Investment Commission Act." The authority is granted the same exemptions and
exclusions from taxes as are now granted to cities and counties for the
operation of facilities similar to facilities to be operated by the authority as
provided under the provisions of this Act.
(b) The
authority shall consist of eight members who shall be appointed as follows: Two
members each shall be appointed by the governing bodies of the City of Cairo,
the City of Camilla, the City of Moultrie, and the City of Thomasville. Each
member shall serve for a term of four years, except that one of the two initial
members appointed by each of the governing bodies shall serve for two years. If
at the end of any term of a member, a successor has not been appointed, such
member shall continue to be a member of the authority until a successor is so
appointed. Each member must be a resident of the city making the appointment or
the county in which such city is located. City or county officials or employees
may serve as members of the authority.
(c) Any vacancy
on the authority shall be filled in the same manner as was the original
appointment of the member whose termination of membership resulted in such
vacancy, and the person so selected and appointed shall serve for the remainder
of the unexpired term.
(d) The authority shall elect
one of its members as chairperson and another member as vice chairperson. The
authority shall elect a secretary and a treasurer, or a secretary-treasurer, who
need not be members of the authority.
(e) A majority of
the members of the authority shall constitute a quorum. No vacancy on the
authority shall impair the right of the quorum to exercise all the rights and
perform all the duties of the authority.
(f) The
members of the authority shall be reimbursed for all actual expenses incurred in
the performance of their duties out of funds of the
authority.
(g) The authority shall make rules and
regulations for its own government. It shall have perpetual
existence.
SECTION
3.
Declaration of need and
purpose.
The joint delivery of services and facilities by
political subdivisions and governmental bodies on a regional basis provides
economies of scale, the sharing of assets, and the development of expertise in
providing more efficient and economical delivery of such services and benefits
to the citizens of Georgia. The authority is created for the purpose of
providing governmental, proprietary, and administrative services and facilities
to the City of Cairo, the City of Camilla, the City of Moultrie, the City of
Thomasville, and other political subdivisions, agencies, and authorities within
its area of operation.
SECTION
4.
Definitions.
As used in this Act, the
term:
(1) "Authority" means the South Georgia
Governmental Services Authority created in Section 2 of this
Act.
(2) "Cost of the project" or "cost" means the
cost of construction; the cost of all equipment, lands, properties, rights,
easements, and franchises acquired and the cost of all conveyances of the
authority´s title thereto and leases thereof; the cost of all machinery and
equipment and financing charges and interest prior to and during construction
and for one year after completion of construction; the cost of engineering,
architectural, fiscal, and legal expenses and of plans and specifications and
other expenses necessary or incident to determining the feasibility or
practicability of the project; administrative expenses and such other expenses
as may be necessary or incident to the financing authorized by this Act; and
the acquisition and construction of any project, the placing of the same in
operation, and the condemnation of property necessary for such construction and
operation. Any obligation or expense incurred for any of the foregoing purposes
shall be regarded as a part of the cost of the project and may be paid or
reimbursed as such out of the proceeds of revenue bonds or notes issued under
the provisions of this Act for such project.
(3)
"Project" means and include the acquisition, construction, equipping,
maintenance, and operation of any undertaking as defined in Article 3 of Chapter
82 of the Title 36 of the O.C.G.A., the "Revenue Bond Law"; any undertaking,
project, or service for which the governmental body contracting with the
authority is authorized by law to undertake in the performance of its
governmental, proprietary, or administrative functions; all personal property to
be used in connection therewith; the lease and sale of any part or all of such
facilities, including real and personal property, so as to ensure the efficient
and proper development, maintenance, and operation of such project deemed by the
authority to be necessary, convenient, or desirable. A project may be composed
exclusively of real or personal property, equipment, fixtures, machinery, or
other property of any nature whatsoever used or useful in connection with the
governmental, administrative, and proprietary functions of any governmental body
contracting with the authority for its services or
facilities.
(4) "Revenue bonds," "bonds," and
"obligations" means revenue bonds or obligations as defined and provided for in
Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the "Revenue Bond Law," as
amended, and obligations of the authority the issuance of which are provided for
in this Act.
(5) "Self-liquidating" means the revenues
and earnings of any project to be derived by the authority therefrom and all
properties used, leased, and sold in connection therewith will be sufficient, in
the judgement of the authority, to pay the cost of operating, maintaining,
repairing, improving, and extending the project and to pay the principal of and
interest on the revenue bonds or notes which may be issued to finance, in whole
in part, the cost of such project.
SECTION
5.
Powers.
The authority shall have the
power:
(1) To have a seal and alter the same at
pleasure;
(2) To acquire by purchase, lease, or
otherwise and to hold, lease, and dispose of real and personal property of every
kind and character for its corporate purposes;
(3) To
acquire in its own name by purchase, on such terms and conditions and in such
manner as it may deem proper, or by condemnation, in accordance with the
provisions of any and all existing laws applicable to the condemnation of
property for public use, real property, rights, or easements therein or
franchises necessary or convenient for its corporate purposes; to use the same
so long as its corporate existence shall continue; to lease or make contracts
with respect to the use of or to dispose of the same in any manner it deems to
the best advantage of the authority, the authority being under no obligation to
accept and pay for any property condemned under this Act except from the funds
provided under the authority of this Act; and in any proceedings to condemn,
such orders may be made by the court having jurisdiction of the suit, action, or
proceedings as may be just to the authority and to the owners of the property to
be condemned; provided, however, no property shall be acquired under the
provisions of this Act upon which any lien or other encumbrance exists, unless
at the time such property is so acquired a sufficient sum of money is deposited
in trust to pay and redeem the fair value of such lien or
encumbrance;
(4) To appoint, select, and employ
officers, agents, and employees including engineering, architectural, and
construction experts, fiscal agents, and attorneys and fix their respective
compensations;
(5) To make contracts and leases and to
execute all instruments necessary or convenient, including contracts for
construction of projects and leases of projects or contracts with respect to the
use of projects which it causes to be erected or acquired; and any and all
persons, firms, and corporations and any and all political subdivisions,
departments, institutions, or agencies of the state are authorized to enter into
contracts, leases, or agreements with the authority upon such terms for such
purposes as they deem advisable; and, without limiting the generality of the
above, authority is specifically granted to municipal corporations, counties,
and the authority to enter into contracts, lease agreements, or other
undertakings relative to the furnishing of services and facilities by the
authority to such municipal corporations and counties or relative to the
furnishing of facilities and services by municipal corporations, counties,
corporations, or individuals to the authority for a term not exceeding 50
years;
(6) To plan, design, construct, erect, acquire,
own, lease, repair, remodel, maintain, add to, extend, improve, equip, operate,
and manage projects, the cost of any such project to be paid in whole or in part
from the proceeds of revenue bonds, notes, or other funds of the authority, from
the contracting for services, or from such proceeds or other funds and any
grant from the United States, the State of Georgia, or any political
subdivision, agency, or instrumentality thereof;
(7)
To accept loans and grants of money or materials or property of any kind from
the United States or any agency or instrumentality thereof, upon such terms and
conditions as the United States or any agency or instrumentality thereof may
impose;
(8) To accept loans and grants of money or
materials or property of any kind from the State of Georgia or any agency or
instrumentality or political subdivision thereof, upon such terms and conditions
as the State of Georgia or any agency or instrumentality or political
subdivision thereof may impose;
(9) To borrow money
for any of its corporate purposes, to execute notes or other evidences of such
indebtedness, to secure the same, to issue revenue bonds payable solely from
funds pledged for that purpose, and to provide for the payment of the same and
for the rights of the holders thereof;
(10) To
exercise any power usually possessed by private corporations performing similar
functions which is not in conflict with the Constitution and laws of this
state;
(11) To sell, lease, grant, exchange, or
otherwise dispose of any surplus property, both real and personal, or interest
therein not required in the normal operation of and usable in the furtherance of
the purpose for which the authority was created;
(12)
To borrow money for any of its corporate purposes from any bank, banks, or other
lending institutions; to execute notes or other evidences of such indebtedness;
and to secure the same by assigning all rights and pledging all funds to be
received by the authority from a contract or lease entered into by the authority
and any political subdivision or governmental
body;
(13) To exercise any power which is usually
possessed by private corporations performing similar functions and which is not
in conflict with the Constitution and laws of this state;
and
(14) To do all things necessary or convenient to
carry out the powers expressly given in this Act.
SECTION
6.
Revenue bonds.
The authority, or any authority or body which has or
which may in the future succeed to the powers, duties, and liabilities vested in
the authority created by this Act, shall have power and is authorized at one
time or from time to time to provide by resolution for the issuance of revenue
bonds for the purpose of paying all or any part of the cost as defined in this
Act of any one or more projects. The principal of and interest on such revenue
bonds shall be payable from the special fund provided for in this Act for such
payment. The bonds of each issue shall be dated; shall bear interest at such
rate or rates as determined by the authority, payable on such dates as
determined by the authority; shall mature at such time or times not exceeding 40
years from their date or dates; shall be payable in such medium of payment as to
both principal and interest as may be determined by the authority; and may be
made redeemable before maturity at the option of the authority at such price or
prices and under such terms and conditions as may be fixed by the authority in
the resolution providing for the issuance of the bonds. Such revenue bonds or
obligations shall be issued pursuant to and in conformity with Article 3 of
Chapter 82 of Title 36 of the O.C.G.A., the "Revenue Bond Law," and all
procedures pertaining to such issuance and the conditions thereof shall be the
same as those contained in said article and any amendments
thereto.
SECTION
7.
Bonds for essential purpose.
All revenue bonds issued under this Act are declared to
be issued for an essential public and governmental purpose, and said bonds and
the income thereof shall be exempt from all taxation within the
state.
SECTION
8.
Sale of bonds.
The authority may sell bonds in such manner and for such
price as it may determine to be in the best interests of the authority through
negotiated or public sale, and the proceeds derived from the sale of such bonds
shall be used solely for the purpose provided in the proceedings authorizing the
issuance of such bonds.
SECTION
9.
Conditions for issuance of
bonds.
Such revenue bonds may be issued without any other
proceedings or the happening of any other conditions or things than those
proceedings, conditions, and things which are specified or required by this Act
and by Article 3 of Chapter 82 of Title 36, the "Revenue Bond Law." Any
resolution providing for the issuance of revenue bonds under the provisions of
this Act shall become effective immediately upon its passage and need not be
published or posted, and any such resolution may be passed at any regular or
special or adjourned meeting of the authority by a majority of its
members.
SECTION
10.
Revenue bonds not debt.
Revenue bonds issued under the provisions of this Act
shall not be deemed to constitute a debt of the State of Georgia or any
political subdivision thereof, nor a pledge of the faith and credit thereof; but
such bonds shall be payable solely from the rentals, revenues, earnings, and
funds of the authority as provided in the resolution or trust agreement or
indenture authorizing the issuance and securing the payment of such bonds; and
the issuance of such revenue bonds shall not directly, indirectly, or
contingently obligate the state or any political subdivision thereof to levy or
to pledge any form of taxation whatsoever therefor or to make any appropriation
for their payment, and all such bonds shall contain recitals on their fact
covering substantially the foregoing provisions of this section. However, any
other political subdivision contracting with the authority may obligate itself
to pay the amounts required under any contract entered into with the authority
from funds received from taxes to be levied and collected for that purpose to
the extent necessary to pay the obligations contractually incurred under this
section and from any other source. The obligation to make such payments shall
constitute a general obligation and a pledge of the full faith and credit of the
obligor but shall not constitute a debt of the obligor within the meaning of
Article IX, Section V, Paragraph I of the Constitution. When such obligation is
made to make such payments from taxes to be levied for that purpose, then the
obligation shall be mandatory to levy and collect such taxes from year to year
in an amount sufficient to fulfill and fully comply with the terms of such
obligation.
SECTION
11.
Sinking fund.
The revenue, rents, and earnings derived from any
particular project or projects and any and all revenue, rents, and earnings
received by the authority, regardless of whether such revenue, rents, and
earnings were produced by a particular project for which bonds have been issued,
unless otherwise pledged, may be pledged by the authority for payment of the
principal of and interest on the revenue bonds of the authority as may be
provided in any resolution authorizing the issuance of such bonds or in any
trust instrument pertaining to such bonds. Such funds so pledged, from whatever
source received, may include funds received from one or more or all sources and
may be set aside at regular intervals into sinking funds for which provision may
be made in any such resolution or trust instrument and which may be pledged to
and charged with the payment of:
(1) The interest upon
such revenue bonds as such interest shall become
due;
(2) The principal of the bonds as the same shall
mature;
(3) The necessary charges of any trustee or
paying agent for paying such principal and interest;
and
(4) Any premium upon bonds retired by call or
purchase.
The use and disposition of any sinking fund
may be subject to such regulation as may be provided for in the resolution
authorizing the issuance of the bonds or in the trust instrument securing the
payment of the same.
SECTION
12.
Exemption from taxation.
The exercise of the powers conferred upon the authority
under this Act shall constitute an essential governmental function for a public
purpose, and the authority shall be required to pay no taxes or assessments upon
any of the property acquired by it or under its jurisdiction, control,
possession, or supervision; upon its activities in the operation and maintenance
of property acquired by it or buildings erected or acquired by it; upon any
fees, rentals, or other charges for the use of such property or buildings; or
upon other income received by the authority.
SECTION
13.
Immunity from tort actions.
The authority shall have the same immunity and exemption
from liability for torts and negligence as the State of Georgia, and the
officers, agents, and employees of the authority, when in performance of work of
the authority, shall have the same immunity and exemption from liability for
torts and negligence as officers, agents, and employees of the State of Georgia.
The authority may be sued the same as private corporations on any contractual
obligation of the authority.
SECTION
14.
Property not subject to levy and
sale.
The property of the authority shall not be subject to
levy and sale under legal process.
SECTION
15.
Venue and jurisdiction.
Any action to protect or enforce any rights under the
provisions of this Act or any suit or action against the authority shall be
brought in the Superior Court of Mitchell County, Georgia, and any action
pertaining to validation of any bonds issued under the provisions of this Act
shall likewise be brought in said court which shall have exclusive, original
jurisdiction of such actions.
SECTION
16.
Validation of bonds.
Bonds of the authority shall be confirmed and validated
in accordance with the procedures set forth in Article 3 of Chapter 82 of Title
36 of the O.C.G.A., the "Revenue Bond Law." The petition for validation shall
also make party defendant to such action the State of Georgia or any
municipality, county, authority, political subdivision, or instrumentality of
the State of Georgia or the United States or any department or agency thereof,
if subject to being sued and if consenting to same, which has contracted with
the authority for the services and facilities of the project for which bonds are
to be issued and sought to be validated. The state or such municipality,
county, authority, political subdivision, or instrumentality shall be required
to show cause, if any, why such contract or contracts and the terms and
conditions thereof should not be inquired into by the court and the validity of
the terms thereof be determined and the contract or contracts adjudicated as
part of the basis of the security for the payment of any such bonds of the
authority. The bonds when validated, and the judgment of validation, shall be
final and conclusive with respect to such bonds, the security for the payment
thereof, and interest thereon and against the authority issuing the same and the
state and any municipality, county, authority, political subdivision, or
instrumentality, if a party to the validation proceedings, contracting with the
authority.
SECTION
17.
Interest of bondholders
protected.
While any of the bonds issued by the authority remain
outstanding, the powers, duties, or existence of said authority or of its
officers, employees, or agents shall not be diminished or impaired in any manner
that will affect adversely the interests and rights of the holders of such
bonds, and no other entity, department, agency, or authority will be created
which will compete with the authority to such an extent as to affect adversely
the interests and rights of the holders of such bonds, nor will the state itself
so compete with the authority. The provisions of this Act shall be for the
benefit of the authority and the holders of any such bonds, and the issuance of
bonds under the provisions of this Act shall constitute a contract with the
holders of such bonds.
SECTION
18.
Trust funds.
All funds received pursuant to authority hereof, whether
as proceeds from the sale of revenue bonds or as revenue, rents, fees, charges,
or other earnings or as grants, gifts, or other contributions, shall be deemed
to be trust funds to be held and applied by the authority, solely as provided
herein. The bondholders entitled to receive the benefits of such funds shall
have a lien on all such funds until the same are applied as provided for in any
such resolution or trust instrument of the authority.
SECTION
19.
Construction.
This Act and any other law enacted with reference to the
authority shall be liberally construed for the accomplishment of the purposes of
the authority.
SECTION
20.
Scope of operations.
The scope of the authority´s operation shall be
limited to the territory embraced within Colquitt, Grady, Mitchell, and Thomas
counties; provided, however, that nothing in this Act shall be construed as
prohibiting the authority from providing services or facilities to political
subdivisions or other public bodies outside of such territory pursuant to an
intergovernmental contract.
SECTION
21.
Repealer.
All laws and parts of laws in conflict with this Act are
repealed.