10 HB
936/AP
House
Bill 936 (AS PASSED HOUSE AND SENATE)
By:
Representatives Battles of the
15th,
Rynders of the
152nd,
Roberts of the
154th,
Coleman of the
97th,
Maxwell of the
17th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating
to elementary and secondary education, so as to enact certain provisions
relating to school funding; to provide that the replacement allowance for
purchasing new school buses shall also be available to refurbish existing school
buses; to revise certain provisions relative to the "Georgia Education Authority
(Schools) Act" in order to qualify for the federal American Recovery and
Reinvestment Act (ARRA) bond program for schools; to provide for related
matters; to provide for an effective date; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
2 of Title 20 of the Official Code of Georgia Annotated, relating to elementary
and secondary education, is amended in Code Section 20-2-188, relating to
student transportation, by adding a new subsection to read as
follows:
"(a.1)
Any funds that the State Board of Education allocates for school bus replacement
may be used by local boards of education to refurbish existing school buses.
Bus replacement funds may not be restricted by the state board for use only in
purchasing new or replacement school buses. Any school bus that is refurbished
shall be subject to all safety and maintenance inspection requirements provided
for by law. Refurbishment of a school bus shall be done by a school bus
manufacturer or by a dealer of a
manufacturer.
Each local
board of education that refurbishes a school bus pursuant to this subsection is
strongly encouraged to apply for federal funds to retrofit the engine. The
State Board of Education shall notify the Environmental Protection Division when
a local board of education receives state funds to refurbish a school bus so
that the division may provide information to such local board regarding the
availability of federal funds for such
purposes."
SECTION
2.
Said
chapter is further amended by revising Code Section 20-2-552, relating to the
creation, members, officers, and staff of the Georgia Education Authority
(Schools), procedural rules and regulations, and assignment to the Department of
Administrative Services, as follows:
"20-2-552.
(a)
There is created a body corporate and politic to be known as the Georgia
Education Authority (Schools), which shall be deemed to be an instrumentality of
the State of Georgia and a public corporation and
which
by that name, style, and title such body may contract and be contracted with,
bring and defend actions, and implead and be impleaded. The authority shall
consist of
seven
five
members, as follows:
the
Governor, an appointee of the Governor who is not the Attorney General, the
state auditor, the chairman of the State Board of Education, the chairman of the
Board of Regents of the University System of Georgia, the State School
Superintendent, and the chancellor of the University System of
Georgia
three
appointees of the Governor, one appointee of the Lieutenant Governor, and one
appointee of the Speaker of the House of Representatives. The terms of office
for all members shall be three years and until their successors are appointed
and qualified.
(b)
The authority shall elect one of its members as
chairman
chairperson
and another as
vice-chairman
vice
chairperson and a secretary and treasurer,
who need not necessarily be a member of the authority
but who
shall be the same as the secretary and treasurer of the Georgia Education
Authority (University). The 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. The members of the authority shall not
be entitled to compensation for their services but shall be entitled to and
shall be reimbursed for their actual expenses necessarily incurred in the
performance of their duties.
The staff
of the authority shall be the same as the staff of the Georgia Education
Authority (University).
The authority
may have staff assigned from within the Department of Education or the Georgia
State Financing and Investment Commission for the purposes of carrying out the
authority's duties and responsibilities, with compensation paid from resources
available to the authority or the Department of Education or the Georgia State
Financing and Investment Commission, as the department, the commission, and the
authority may agree. The Department of Education and all other state or local
government entities shall provide all necessary assistance requested by the
authority. The Georgia State Financing and Investment Commission shall provide
financial advisory services to the authority in accordance with Code Section
50-17-22, and all debt of the authority shall be subject to the approval of the
Georgia State Financing and Investment
Commission. The authority shall make
rules and regulations for its own government. It shall have perpetual existence.
Any change in name or composition of the authority shall in no way affect the
vested rights of any person under this part or impair the obligations of any
contracts existing under this part.
(c)
The authority is assigned to the
Department
of Administrative Services
Georgia State
Financing and Investment Commission for
administrative purposes only as prescribed in Code Section
50-4-3."
SECTION
3.
Said
part is further amended by revising Code Section 20-2-553, relating to powers of
the Georgia Education Authority (Schools), as follows:
"20-2-553.
(a)
The authority shall have the power:
(1)
To have a seal and alter it at pleasure;
(2)
To acquire by purchase, lease, or otherwise and to hold, lease,
sell,
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 any and
all existing laws applicable to the condemnation of property for public use,
real property or rights of easements therein or franchises necessary or
convenient for its corporate purposes and to use them so long as its corporate
existence shall continue and to lease or make contracts
with
respect to
for
the use of or dispose of them 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 part, except from the funds provided under the
authority of this part. In any proceedings to condemn, such orders may be made
by the court having jurisdiction of the action or proceeding as may be just to
the authority and to the owners of the property to be condemned; and no property
shall be acquired under this part 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. If the authority shall deem it expedient to construct any project
on lands which are subject to the control of the public school system of the
state or of any county board of education, city board of education, or governing
body of an independent or quasi-independent district or system or local unit of
administration, the Governor, in the case of the state, or the boards of
education of counties or cities, or the equivalent governing authorities of
independent school districts or systems are authorized to execute for and in
behalf of the state or the various county boards of education, city boards of
education, or governing bodies of independent districts or systems, as the case
may be, a lease upon such lands to the authority for such parcel or parcels as
shall be needed for a period not to exceed 50 years, at a nominal rental of
$1.00 per year. If the authority shall deem it expedient to construct any
project on any other lands the title to which shall then be in the state, the
Governor is authorized to convey, for and in behalf of the state, title to such
lands to the authority, upon payment into the state treasury for the credit of
the general fund of the state of the reasonable value of such lands, such value
to be determined by three appraisers to be agreed upon by the Governor and the
chairman
chairperson
of the authority. Further, if the authority shall deem it expedient to
construct any project on any other lands the title to which shall then be in any
county, municipality, or other governmental subdivision of the state, the proper
authorities of such county, municipality, or governmental subdivision are
authorized to convey, for and in behalf of such county, municipality, or
governmental subdivision, title to such lands to the authority, upon payment to
the proper fiscal officer of the county, municipality, or other governmental
subdivision of the reasonable value of such lands, such value to be determined
by three appraisers to be agreed upon between such governmental authorities and
the
chairman
chairperson
of the authority;
(4)
To appoint and select officers, agents, and employees, including engineering,
architectural, and construction experts, fiscal agents, and attorneys, and to
fix their compensation;
(5)
To make
contracts,
agreements of sale, and leases and to
execute all instruments necessary or convenient, including contracts for
construction of
projects,
agreements for the sale of projects, and
leases of projects or contracts
with
respect to
for
the use of projects which the authority causes to be erected or acquired; 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 and for such purposes as they deem advisable. Without
limiting the generality of the
above
foregoing,
authority is specifically granted to the county boards of education, city boards
of education, or governing bodies of independent districts or systems, for and
on behalf of the units and institutions within their respective counties,
cities, or districts, and to the authority to enter into
contracts,
agreements of sale, and lease agreements
for the
purchase
or use of any structure, building, or
facilities of the authority for a term not exceeding 50
years,;
and the board of education or equivalent governing body for and on behalf of the
respective political subdivision may obligate itself and its successors to use
only such structure, building, or facility and none other and so long as such
property is used by such political subdivision to pay an amount to be determined
from year to year for the use of such property so leased and also to obligate
itself and its successors as a part of the lease contract to pay the cost of
maintaining, repairing, and operating the property so leased from the
authority;
(6)
To construct, erect, acquire, own, repair, remodel, maintain, add to, extend,
improve, equip, operate, and manage projects, as defined in paragraph (4) of
subsection (a) of Code Section 20-2-551, to be located on property owned by or
leased by the authority, the cost of any such project to be paid in whole or in
part from the proceeds of revenue bonds of the authority,
or
from such proceeds and any grant from the United States or any agency or
instrumentality thereof, or from any other source;
(7)
To accept loans or 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 such agency or instrumentality may
impose;
(8)
To borrow money for any of its corporate purposes and to issue negotiable
revenue bonds payable solely from funds pledged for that purpose and to provide
for the payment of such bonds and for the rights of the holders
thereof;
(9)
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;
and
(10)
To issue various types of bonds with various federal tax consequences and to
apply for and participate in any federal program which provides financial or
other benefits or is supportive of functions of the authority. For purposes of
federal law and without limiting the powers of the authority to issue other
types of bonds and to participate in federal programs, the authority may act as
the state education agency and may issue Qualified Zone Academy Bonds, Qualified
School Construction Bonds, or Build America Bonds or, in its discretion, permit
other authorized governmental bodies to issue Qualified Zone Academy Bonds,
Qualified School Construction Bonds, or Build America Bonds. In participating
in any federal program, the authority may apply for and receive funds, make
certifications and designations, and do all other things necessary or convenient
in the opinion of the authority to participate in or obtain the benefits of
federal programs, including programs of bond finance provided under federal
law;
(11)
Deposit, or arrange for, federal funds in any form to be deposited into the
sinking fund provided for in Code Section 20-2-567; and
(10)(12)
To do all things necessary or convenient to carry out the powers expressly given
in this part.
(b)
The validity of any bonds issued by the authority for projects certified as
eligible for state development assistance under Code Section
45-12-170,
which bonds were
and
issued prior to the time the first general obligation debt was incurred under
Article VII, Section III, Paragraph I of the Constitution of
1945,
shall not be impaired; but no future such bonds shall be
issued."
SECTION
4.
Said
part is further amended by revising Code Section 20-2-555, relating to the
authority to issue revenue bonds and terms, as follows:
"20-2-555.
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
part, shall have power, at one time or from time to time, to provide by
resolution for the issuance of negotiable revenue bonds in an unlimited amount
for the purpose of paying all or any part of the cost, as defined in paragraph
(3) of subsection (a) of Code Section 20-2-551, of any one project or
combination of projects. The principal and
interest, if
any, of such revenue bonds shall be
payable solely from the special fund provided in this part for such payment. The
bonds of each issue shall be dated; shall bear
interest, if
any, at such rate or rates, payable
semiannually
on a date or
dates certain; shall mature at such time
or times not exceeding 30 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 provided for the issuance of the
bonds."
SECTION
5.
Said
chapter is further amended by revising Code Section 20-2-556, relating to forms
of bonds, denominations, place of payment, and registration, as
follows:
"20-2-556.
The
authority shall determine the form of the bonds, including any interest coupons
to be attached thereto, and shall fix the denomination or denominations of the
bonds and the place or places of payment of principal and
interest, if
any, thereof, which may be at any bank or
trust company within or without the state. The bonds may be issued in coupon or
registered form, or both, as the authority may determine; and provision may be
made for the registration of any coupon bond as to principal alone and also as
to both principal and
interest, if
any."
SECTION
6.
Said
chapter is further amended by revising Code Section 20-2-559, relating to manner
of sale and price bonds and assistance by Georgia Building Authority, as
follows:
"20-2-559.
The
authority may sell its bonds in such manner and for such price as it may
determine to be for the best interests of the authority.
Whenever
the authority shall determine to issue its bonds, it shall call upon the Georgia
Building Authority to render advice and to perform, as its agent, ministerial
services in connection with the marketing of such
bonds."
SECTION
7.
Said
chapter is further amended by revising Code Section 20-2-560, relating to use of
bond proceeds and additional bonds, as follows:
"20-2-560.
The
proceeds of bonds shall be used solely for the payment of the cost of the
project or combined project and shall be disbursed upon requisition or order of
the
chairman
chairperson
of the authority under such restrictions, if any, as the resolution authorizing
the issuance of the bonds or the trust indenture mentioned in Code Section
20-2-565 may provide. If the proceeds of such bonds, by error of calculation or
otherwise, shall be less than the cost of the project or combined project,
unless otherwise provided in the resolution authorizing the issuance of the
bonds or in the trust indenture, additional bonds may in like manner be issued
to provide the amount of such deficit. Unless otherwise provided in the
resolution authorizing the issuance of the bonds or in the trust indenture, such
additional bonds shall be deemed to be of the same issue and shall be entitled
to payment from the same fund, without preference or priority, as the bonds
first issued for the same purpose. If the proceeds of the bonds of any issue
shall exceed the amount required for the purpose for which such bonds are
issued, the surplus shall be paid into the fund provided in Code Section
20-2-567 for the payment of principal and
interest, if
any, of such bonds."
SECTION
8.
Said
chapter is further amended by revising Code Section 20-2-564, relating to bonds
not state debt, uses of appropriations and other funds for leases from
authority, collection or rentals, and assignment of rentals, as follows:
"20-2-564.
(a)
Revenue bonds issued under this part shall not be deemed to constitute a debt of
the state or a pledge of the faith and credit of the state, but such bonds shall
be payable solely from the fund provided for in Code Section
20-2-577
20-2-567.
The issuance of such revenue bonds shall not directly, indirectly, or
contingently obligate the state to levy or to pledge any form of taxation
whatever therefor or to make any appropriation for their payment. All such bonds
shall contain recitals on their face covering substantially the foregoing
provisions of this Code section; provided, however, that such funds as may be
received from state appropriations or from any other source are declared to be
available and may be used on behalf of the county boards of education, city
boards of education, or governing bodies of independent districts or systems for
the performance of any lease contract entered into by such boards or governing
bodies, unless the use of such funds shall be otherwise stipulated by
law.
(b)
In the event any county board of education, city board of education, or
governing body of an independent school district or system shall enter into a
lease contract
or an
agreement of sale with the authority as
provided in this part, then any sums accruing to and for the benefit of such
political
subdivision
school
district or system by virtue of any
amounts
appropriated and allocated for that purpose pursuant to Code Section 20-2-250
shall, by the State Board of Education, be paid all
or
state
appropriation to which such school district or system may be entitled shall be
withheld from such school district or system and the State Board of Education
shall, on behalf of such school district or system,
apply so much thereof as is necessary
directly to the authority until such time as the obligation
in respect
to such lease or lease contract
of the lease
contract or agreement of sale shall have
been paid in full; it being intended that such sums, if any, as may be
appropriated by the legislature and
accrue and
be allocated by the state board for the benefit of any particular political
subdivision for 'capital outlay' as provided by Code Section
20-2-250
to which a
school district or system may be entitled
shall be subject to be first applied
on behalf of
such school district or system to the
extent necessary to the faithful performance of any lease contract
or agreement
of sale of that particular
subdivision
school
district or system with the
authority.
(c)
In the event
any
such sums so appropriated by the legislature to the state board
to be used
in accordance with Code Section 20-2-250 and allocated by the state
board to and for the benefit of each
political
subdivision
county, city,
or independent school district or system
which has entered into a lease contract
or an
agreement of sale with the authority are
not sufficient to discharge the
lease or
installment purchase obligations and
undertakings therein agreed to be performed and should the
political
subdivision
school
district or system fail to pay any sum
necessary to make up the difference between the amount to be paid under the
lease contract
or agreement
of sale and that actually paid by the
state board on
behalf of the school district or system
directly to the authority as provided in subsection (b) of this Code section,
then it shall be the duty of the authority to notify immediately, in writing,
the state board, the Department of Education, and the Office of Treasury and
Fiscal
Services,
of the amount due said authority, and thereupon
the Office
of Treasury and Fiscal Services, the state
board,
and
the
department,
and the Office of Treasury and Fiscal
Services are authorized and directed to
withhold from any other funds appropriated, allotted, or due to be paid to such
county, city, or independent school district or system an amount sufficient to
pay the obligation due the authority by the defaulting county, city, or
independent school district or system for
rental
the rental or
purchase of buildings or
facilities,;
and the state board, the department, and the Office of Treasury and Fiscal
Services are authorized and directed to pay such funds to the authority
on behalf of
the county, city, or independent school district or
system to be applied in payment on such
unpaid rentals
or installment
payments of purchase price, such payment
being charged against the respective funds due such county, city, or independent
school district or system.
(d)
The rentals contracted to be paid by the state board or other contracting or
leasing department, agency, or institution of the state to the authority under
leases or contracts entered upon pursuant to this part shall constitute
obligations of the state for the payment of which the good faith of the state is
pledged. Such rentals shall be paid as provided in the lease contracts from
funds appropriated for such purposes by the terms of the Constitution of
Georgia. It shall be the duty of the state board or other contracting or leasing
department, agency, or institution of the state to see to the punctual payment
of all such rentals.
(e)
In the event of any failure or refusal on the part of
lessees
any
party punctually to perform any covenant
or obligation contained in any
lease
contract
entered upon pursuant to this part, the authority may enforce performance by any
legal or equitable process against
the
lessees
such
party; and consent is given for the
institution of any such action.
(f)
The authority shall be permitted to assign any
rental
payment
due it by
the
lessees
a contracting
party to a trustee or paying agent as may
be required by the terms of any trust indenture entered into by the
authority."
SECTION
9.
Said
chapter is further amended by revising Code Section 20-2-567, relating to
sinking fund, as follows:
"20-2-567.
The
revenues, rents, and earnings derived from any particular project or combined
projects;
and
all sums allocated or paid by the State Board of Education or Department of
Education to the authority for the benefit of
and on behalf
of any
political
subdivision
county, city,
or independent school district or system
or its governing body for the performance of any lease contract
or agreement
of sale or any and all funds from any
sources received by the various county boards of education, city boards of
education, or governing bodies of independent school districts or systems that
have entered into lease contracts
or agreements
of sale with the authority and paid to it
in the performance of such contract or
contracts;
or
any and all revenues, rents, and earnings received by the authority, regardless
of whether or not such rents, earnings, and revenues were produced by a
particular project for which bonds have been issued, unless otherwise pledged
and
allocated,;
and federal funds where applicable may be
pledged and allocated by the authority to the payment of the principal and
interest, if
any, on revenue bonds of the authority as
the resolution authorizing the issuance of the bonds or the trust instrument may
provide. Such funds so pledged from whatever source
received,
which pledge may include funds received
from one or more or all
sources,
and
shall be set aside at regular intervals as may be provided in the resolution or
trust indenture, into a sinking fund, which shall be pledged by the authority to
and charged with the payment of:
(1)
The interest,
if any, upon such revenue bonds as such
interest shall fall due;
(2)
The principal of the bonds as the same shall fall due;
(3)
The necessary charges of paying agents for paying principal and
interest, if
any; and
(4)
Any premium upon bonds retired by call or purchase as provided in Code Section
20-2-555.
The
use and disposition of such sinking fund shall be subject to such covenants and
regulations as may be provided in the resolution authorizing the issuance of the
revenue bonds or in the trust indenture, but, except as may otherwise be
provided in such resolution or trust indenture, such sinking fund shall be a
fund for the benefit of all revenue bonds without distinction or priority of one
over another. Subject to the provisions of the resolution authorizing the
issuance of the bonds or in the trust indenture, surplus moneys in the sinking
fund may be applied to the purchase or redemption of bonds; and any such bonds
so purchased or redeemed shall immediately be canceled and shall not again be
issued."
SECTION
10.
Said
chapter is further amended by revising Code Section 20-2-568, relating to
remedies of bondholders, receivers, or indenture trustees, as
follows:
"20-2-568.
Any
holder of revenue bonds or interest coupons issued under this part, any receiver
for such holders, or indenture trustee, if any, except to the extent the rights
given in this part may be restricted by resolution passed before the issuance of
the bonds or by the trust indenture, may either at law or in equity, by action,
mandamus, or other proceedings, protect and enforce any and all rights under the
laws of this state or granted under this part or under such resolution or trust
indenture and may enforce and compel performance of all duties required by this
part or by resolution or trust indenture to be performed by the authority or any
officer thereof, including the fixing, charging, and collecting of revenues,
rents, and other charges for the use of the project or projects, and, in the
event of default of the authority upon the principal and interest obligations of
any revenue bond issue, shall be subrogated to each and every right,
specifically including the contract rights of collecting
rental or
installment payments of purchase price,
which the authority may possess against
the State
Board of Education, its successors, or
other
any
contracting
or leasing
department, agency, or institution of the
state
county, city,
or independent school district or system or political
subdivision. In the pursuit of his or its
remedies as subrogee, such individual, receiver, or trustee may proceed either
at law or in equity by action, mandamus, or other proceedings to collect any
sums by such proceedings due and owing to the authority and pledged or partially
pledged directly or indirectly to the benefit of the revenue bond issue of which
such individual, receiver, or trustee is representative. No holder of any such
bond or receiver or indenture trustee thereof shall have the right to compel any
exercise of the taxing power of the state to pay any such bond or the interest
thereon or to enforce the payment thereof against any property of the state; nor
shall any such bond constitute a charge, lien, or encumbrance, legal or
equitable, upon the property of the
state;
provided, however, that any provision of this part or any other Act to the
contrary notwithstanding, any such bondholder or receiver or indenture trustee
shall have the right by appropriate legal or equitable proceedings, including,
without being limited to, mandamus, to enforce compliance by the appropriate
public officials with Article VII, Section IV, Paragraph III of the Constitution
of Georgia; and permission is given for the institution of any such proceedings
to compel the payment of lease
obligations."
SECTION
11.
Said
chapter is further amended by revising Code Section 20-2-569, relating to
refunding bonds, as follows:
"20-2-569.
The
authority is authorized to provide by resolution for the issue of revenue
refunding bonds of the authority for the purpose of refunding any revenue bonds
issued under this part and then outstanding, together with accrued interest
thereon, if
any, and the premium, if any. The issuance
of such revenue refunding bonds, the maturities and all other details thereof,
the rights of the holders thereof, and the duties of the authority in respect to
such bonds shall be governed by Code Sections 20-2-550 through 20-2-568 insofar
as they may be applicable."
SECTION
12.
Said
chapter is further amended by revising Code Section 20-2-570, relating to bonds
legal investments and depositing bonds, as follows:
"20-2-570.
The
bonds authorized in this part are made securities in which all public officers
and bodies of this state and all municipalities and all
municipal
political
subdivisions; all insurance companies and associations and other persons
carrying on an insurance business; all banks, bankers, trust companies, savings
banks, and savings associations, including savings and loan associations,
building and loan associations, investment companies, and other persons carrying
on a banking business; all administrators, guardians, executors, trustees, and
other fiduciaries; and all other persons whatsoever who are now or may hereafter
be authorized to invest in bonds or other obligations of the state may properly
and legally invest funds, including capital, in their control or belonging to
them. The bonds are also made securities which may be deposited with and shall
be received by all public officers and bodies of this state and all
municipalities and
municipal
political
subdivisions for any purpose for which the deposit of the bonds or other
obligations of this state is authorized."
SECTION
13.
Said
chapter is further amended by revising Code Section 20-2-571, relating to tax
exemption of authority's property, activities, charges, and bonds, as
follows:
"20-2-571.
The
creation of the authority and the carrying out of its corporate purpose shall be
a public purpose and in all respects for the benefit of the people of this
state. The authority will be performing an essential governmental function in
the exercise of the power conferred upon it by this part; and this state
covenants with the holders of the bonds that the authority shall be required to
pay no taxes or assessments upon any of the property acquired or leased by it or
under its jurisdiction, control, possession, or supervision or upon its
activities in the operation or maintenance of the buildings erected or acquired
by it or any fees,
revenues,
rentals, or other charges for the use of such buildings or other income received
by the authority and that the bonds of the authority and the income therefrom
shall at all times be exempt from taxation within
the
this
state."
SECTION
14.
Said
chapter is further amended by revising Code Section 20-2-572, relating to
procedure for validating bonds, as follows:
"20-2-572.
Bonds
of the authority shall be confirmed and validated in accordance with the
procedure of Article 3 of Chapter 82 of Title 36. The petition for validation
shall make the authority party defendant and shall also make party defendant to
such action
the State
Board of Education and any political
subdivision or
county, city, or independent school district or
system which has contracted with the
authority for the
purchase
or use of any building, structure, or
facility for which bonds have been issued and sought to be validated; and such
parties shall be required to show cause, if any, why the contract or contracts
and the terms and conditions thereof should not be inquired into by the court,
the validity of the terms thereof determined, the matters and conditions imposed
on the
state
board
contracting
parties to be performed, and all such
undertakings adjudicated as security for the payment of any such bonds of the
authority. In the event no appeal is taken or if taken and the judgment is
affirmed by the proper appellate court of this state, the judgment of the
superior court so confirming and validating the issuance of the bonds shall be
forever conclusive upon the validity of the bonds against the authority issuing
them and against all parties to such proceedings."
SECTION
15.
Said
chapter is further amended by revising Code Section 20-2-577, relating to fixing
rentals and charges for use of projects, as follows:
"20-2-577.
The
authority is authorized to fix
rentals,
installment payments of purchase price,
and other charges which the various county boards of education, city boards of
education, or governing bodies of independent districts or systems shall pay to
the authority for the use
or
purchase of each project or part thereof
or combination of projects, to charge and collect them, and to lease
or
sell and make contracts with the various
counties
county, city,
or independent school districts or systems
with
respect to
for
the use or
purchase by any
institution
or unit under its control
county, city,
or independent school districts or systems
of any project or part thereof. Such
rentals,
installment payments of purchase price,
and other charges shall be so fixed and adjusted in
respect
relation
to their total amount from the project or projects for which a single issue of
revenue bonds is issued
so
as to provide a fund sufficient with other revenues of such project or projects,
if any, to pay:
(1)
The cost of maintaining, repairing, and operating the project or projects,
including reserves for extraordinary repairs and insurance and other reserves
required by the resolution or trust indentures, unless such
cost
reserves
shall be otherwise provided for,
which
cost shall be deemed to include the
expenses incurred by the authority on account of the project or projects for
water, light, sewer, and other services furnished by other facilities at such
institution; and
(2)
The principal of the revenue bonds and the interest
thereon, if
any, as they shall become
due."
SECTION
16.
This
Act shall become effective on July 1, 2010.
SECTION
17.
All
laws and parts of laws in conflict with this Act are repealed.