09 LC 28
4413
House
Bill 35
By:
Representatives Jacobs of the
80th,
Chambers of the
81st,
Millar of the
79th,
and Levitas of the
82nd
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 1 of Chapter 82 of Title 36 of the Official Code of Georgia
Annotated, relating to general provisions concerning bonds, so as to provide
that interest and dividends received on bond funds shall be used only for the
stated purposes for which such bonds were issued; to provide for related
matters; to provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
1 of Chapter 82 of Title 36 of the Official Code of Georgia Annotated, relating
to general provisions concerning bonds, is amended by revising subsection (b) of
Code Section 36-82-1, relating to election on bonded debt, as
follows:
"(b)
The officers charged with levying taxes, contracting debts, and the like for the
county, municipal corporation, or political subdivision shall give notice for
not less than 30 days immediately preceding the day of the election in the
newspaper in which sheriff's advertisements for the county are published,
notifying the qualified voters that on the day named an election will be held to
determine the question of whether bonds shall be issued by the county, municipal
corporation, or political subdivision. The notice shall specify the principal
amount of the bonds to be issued, the purpose
and
projects for which the bonds are issued,
the interest rate or rates which such bonds are to bear, and the amount of
principal to be paid in each year during the life of the bonds. The notice, in
the discretion of the issuing body, in lieu of specifying the rate or rates of
interest which the bonds are to bear, may state that the bonds, when issued,
will bear interest at a rate not exceeding a maximum per annum rate of interest
specified in the election notice or, in the event the bonds are to bear
different rates of interest for different maturity dates, that none of such
rates will exceed the maximum rate specified in the election
notice."
SECTION
2.
Said
article is further amended by revising Code Section 36-82-4.2, relating to
expenditure of bond funds for purposes other than stated in public bond notice,
as follows:
"36-82-4.2.
(a)
Interest and dividends received from the investment of bond proceeds as provided
in Code Section 36-82-7 or the maintenance of bond proceeds in interest bearing
accounts shall be used only for the purpose and projects stated in the notice
required by subsection (b) of Code Section 36-82-1 for such bonds or to reduce
the bonded indebtedness of the county, municipality, or political subdivision
that issued such bonds.
(a)(b)
When, subsequent to the issuance of any bonds pursuant to the provisions of this
article, the governing authority of any county, municipal corporation, or
political subdivision adopts by a two-thirds' majority vote a resolution
declaring that:
(1)
A portion of the bond funds
or any
interest and dividends that have accrued on such bond
funds remains after the purpose stated in
the notice required by subsection (b) of Code Section 36-82-1 has been achieved
or accomplished;
(2)
The purpose stated in such notice is no longer necessary; or
(3)
Circumstances have changed such that the expenditure of all or part of such bond
funds is no longer practicable or feasible,
the
governing authority shall be authorized to expend such bond funds, including
interest, for purposes of a nature substantially similar to the purpose
and
projects stated in such notice or to
reduce the bonded indebtedness of the county, municipality, or political
subdivision.
(b)(c)
Not sooner than ten days prior to expending bond funds as provided in
subsection (a)
(b)
of this Code section, the governing authority shall cause to be published once
in the official county organ a copy of the resolution adopted pursuant to
subsection (a)
(b)
of this Code section, which resolution shall set forth the reason the bond funds
or any
interest and dividends that have accrued on such bond
funds were not expended for the original
purpose and shall state the purpose for which such funds will be expended. In
addition, the governing authorities shall cause a copy of such resolution to be
sent by registered or certified mail or statutory overnight delivery to any
trustee for bondholders or other paying agent."
SECTION
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.