06 LC 18
5541S
The
Senate Finance Committee offered the following substitute to HB
1012:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 82 of Title 36 of the Official Code of Georgia Annotated, relating
to bonds, so as to change certain provisions regarding the contents of certain
bond reports; to provide for additional performance audit requirements with
respect to general obligation bonds and revenue bonds; to provide for a
definition; to provide for power, duties, and authority of the inspector
general; to provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
82 of Title 36 of the Official Code of Georgia Annotated, relating to bonds, is
amended in Code Section 36-82-10, relating to reporting requirements regarding
bonds, by striking subsection (b) and inserting in its place a new subsection
(b) to read as follows:
"(b)
A political subdivision which issues general obligation bonds, revenue bonds, or
any other bonds, notes, certificates of participation, or other such obligations
of that political subdivision in an amount exceeding $1 million, shall file a
report with the Department of Community Affairs which contains the
following:
(1)
Name of issuer;
(2)
Whether the issue is a new issue or a refinancing or refunding;
(3)
Total amount issued;
(4)
Term of issue;
(5)
Detailed description of purpose or purposes;
(5.1)
Whether the issue is a general obligation bond, revenue bond, or other bond,
note, certificate of participation, or other obligation;
(6)
Name of underwriter;
(7)
Underwriting
costs
Proceeds used
for bond issuance costs, including
underwriterś
discount as reported on Line 24 of the United States Department of
Treasurýs
Internal Revenue Service Form
8038-G;
(8)
Name of bond counsel;
(9)
Interest rate; and
(10)
True or net interest costs.
Such
information shall be reported to the Department of Community Affairs in
accordance with Code Section
36-81-8."
SECTION
2.
Said
chapter is further amended by striking the Reserved designation of Article 4 and
inserting in its place a new Article 4 to read as follows:
"ARTICLE
4
36-82-100.
(a)
As used in this Code section, the term 'bonds' means any revenue or general
obligation bonds issued under this chapter.
(b)
When bonds are issued by a county, municipality, or local authority in the
amount of $5 million or more, the expenditure of bond proceeds shall be subject
to an ongoing performance audit or performance review as provided in this Code
section; but this Code section shall not apply if such bond issue is below $5
million.
(c)
Each county, municipality, or local authority expending bond proceeds shall
provide for a continuing performance audit or performance review of the
expenditure of such funds. The county, municipality, or local authority shall
contract with a certified public accountant or with an outside auditor,
consultant, or other provider accredited or certified in the field of
performance audits or performance reviews. Such accountant, auditor,
consultant, or other provider shall only be qualified to perform the audit and
review functions under this Code section if such accountant, auditor,
consultant, or other provider has significant experience and competence in
conducting comprehensive audits and reviews in conformance with generally
accepted government auditing standards. The performance audit or performance
review contract shall:
(1)
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,
municipality, or local authority the maximum possible benefit from the bond
funds;
(2)
Provide for the issuance of periodic public reports, made accessible through
electronic or printed format, or both, at a location advertised in the legal
organ not less often than once annually, with respect to the extent to which
expenditures are meeting the goal specified in paragraph (1) of this subsection;
and
(3)
Provide for the issuance of periodic public recommendations, made accessible
through electronic or printed format, or both, at a location advertised in the
legal organ not less often than once annually, for improvements in meeting the
goal specified in paragraph (1) of this subsection.
(d)
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 reasonable cost of the performance audit or performance review
shall be paid from the proceeds of the bonds unless a specific waiver of public
accountability is included in a legal advertisement in bold print which
expressly states that no performance audit or performance review shall be
conducted with respect to such bond issue.
(e)
On and after the effective date of this Code section, the expenditure of bond
proceeds shall be under the jurisdiction of and subject to review by the
inspector general of this state with respect to any claim of fraud, waste,
abuse, or mismanagement of funds.
(f)
This Code section shall apply with respect to any bonds which are subject to the
requirements of subsection (b) of this Code section which are issued after the
effective date of this Code section until the proceeds of such bond issue have
been
expended."
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.