06 LC 18
4917
House
Bill 1012
By:
Representatives Millar of the
79th,
Watson of the
91st,
Chambers of the
81st,
Jennings of the
82nd,
and Jacobs of the
80th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 36-82-1 of the Official Code of Georgia Annotated, relating
to requirements and conditions applicable to general obligation bonds, so as to
provide for additional bond performance audit requirements; to provide an
effective date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 36-82-1 of the Official Code of Georgia Annotated, relating to
requirements and conditions applicable to general obligation bonds, is amended
by striking subsection (d) and inserting in its place a new subsection (d) to
read as follows:
∀(d)(1)
Every legal advertisement of a bond election shall contain a reference that any
brochures, listings, or other advertisements issued by the governing body of any
county, municipality, or other political subdivision of this state or by any
other person, firm, corporation, or association with the knowledge and consent
of the governing body of such county, municipality, or other political
subdivision of this state shall be deemed to be a statement of intention of the
governing body of such county, municipality, or other political subdivision of
this state concerning the use of the bond funds; and such statement of intention
shall be binding on the governing body of such county, municipality, or other
political subdivision of this state in the expenditure of any such bond funds or
interest received from such bond funds which have been invested, unless the
governing body of such county, municipality, or other political subdivision of
this state uses such bond funds for the retirement of bonded indebtedness, in
the manner provided for in this Code section; and such statement of intention
shall be set forth in the resolution pursuant to which such bonds are issued.
Bond funds and interest received from such bond funds which have been invested
shall be expended in the manner in which advertised and for the purpose stated
in such statement of intention. The governing body of such county,
municipality, or other political subdivision of this state may, by a
two-thirdś
vote, declare any project which has been established pursuant to any such
statement of intention to be unnecessary. In that event, the governing body of
such county, municipality, or other political subdivision of this state shall
use such bond funds for the payment of all or any part of the principal and
interest on any bonded indebtedness of such county, municipality, or other
political subdivision of this state then outstanding. Surpluses from the
overestimated projects, including interest received on bond funds of such
projects, shall be used first to complete underestimated projects and all
remaining funds received from interest and overestimated projects shall be used
for other projects or improvements which the governing body of such county,
municipality, or other political subdivision of this state may deem necessary
and which are encompassed within the language of the statement of purpose in the
election notice. Any meetings of any governing bodies at which any bond fund
allocation is made shall be open to the public. Such meetings shall be
announced to the news media in advance and shall be open to the news
media.
(2)(A)
When bonds are issued in the amount of $25 million or more, the expenditure of
bond proceeds shall be subject to an ongoing performance audit or performance
review as provided in this paragraph; but this paragraph shall not apply if such
bond issue is below $25 million.
(B)
Each county or municipality expending bond proceeds shall provide for a
continuing performance audit or performance review of the expenditure of such
funds. The county or municipality shall contract with an outside auditor,
consultant, or other provider for such performance audit or performance review.
The performance audit or performance review contract shall:
(i)
Include a goal of ensuring to the maximum extent possible that the bond funds
are expended efficiently and economically, so as to secure to the county or
municipality the maximum possible benefit from the bond funds;
(ii)
Provide for the issuance of periodic public reports, not less often than once
annually, with respect to the extent to which expenditures are meeting the goal
specified in division (i) of this subparagraph; and
(iii)
Provide for the issuance of periodic public recommendations, not less often than
once annually, for improvements in meeting the goal specified in division (i) of
this subparagraph.
(C)
The auditor, consultant, or other provider to carry out the performance audit or
performance review shall be selected through a public request for proposals
process. The cost of the performance audit or performance review may be paid
from any available funds of the county or municipality.
(D)
The requirements of this paragraph shall apply with respect to any bonds issued
prior to July 1, 2006, as well as any bonds issued after that
date.∀
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.