08 LC 21
9669/AP
House
Bill 1468 (AS PASSED HOUSE AND SENATE)
By:
Representative Cole of the
125th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
create the Monroe County Public Facilities Authority; to provide for a short
title and legislative findings; to confer powers and impose duties on the
authority; to provide for the membership and the appointment of members of the
authority and their terms of office, qualifications, duties, powers, and
compensation; to provide for vacancies, organization, meetings, and expenses; to
provide for definitions; to provide for the issuance and sale of revenue bonds
and other obligations and their negotiability, sale, and use of proceeds from
such sales; to provide for conditions for issuance of such obligations; to
prohibit the pledge of credit for the payment of bonds; to provide for trust
indentures and a sinking fund; to provide for payment of bond proceeds; to
provide for bondholder remedies and protection; to provide for refunding bonds;
to provide for bond validation; to provide for venue and jurisdiction; to
provide for trust funds; to provide for the authority´s purpose; to provide
for charges; to provide for rules and regulations; to provide for tort immunity;
to provide for tax exemptions and exemptions from levy and sale; to provide for
supplemental powers; to provide for effect on other governments; to provide for
liberal construction; to provide for severability; to provide an effective date;
to provide for related matters; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Name of Act.
Name of Act.
This
Act shall be known and may be cited as the "Monroe County Public Facilities
Authority Act."
SECTION
2.
Creation of authority; purpose.
Creation of authority; purpose.
There
is created a body corporate and politic to be known as the "Monroe County Public
Facilities Authority," which shall be deemed to be a public corporation. Such
corporation shall be separate and distinct from any public corporation or other
entity heretofore created by the General Assembly and shall be an
instrumentality of the State of Georgia exercising governmental powers. The
authority is created for the purpose of promoting the public good and general
welfare of the citizens of Monroe County and assisting Monroe County in
providing facilities, equipment, and services to the citizens of Monroe County
in the most efficient means possible. In connection with the exercise of any of
its powers, the members of the authority may make findings or determinations
regarding the public good and general welfare of Monroe County and the use of
facilities, equipment, and services, and such findings or determinations, if
made, shall be conclusive and binding.
SECTION
3.
Definitions.
Definitions.
As
used in this Act, the term:
(1)
"Authority" means the Monroe County Public Facilities Authority created in this
Act.
(2)
"Cost of the project" shall include (A) the cost of construction, (B) the cost
of all land or interests therein, properties, rights, easements, and franchises
acquired, (C) the cost of acquiring, constructing, or erecting buildings,
improvements, materials, labor, and services, (D) the cost of all machinery and
equipment, (E) financing charges, including interest prior to and during
construction or acquisition of any project and for six months after such project
is placed in service and operational at the level intended, (F) the cost of
construction, engineering, architectural, fiscal, accounting, inspection, and
legal expenses, relating to a project or to the financing or refinancing of any
project and other expenses necessary or incident to determining the feasibility
or practicability of any project, (G) administrative expenses relating to any
project or to the financing or refinancing thereof, and such other expenses as
may be necessary or incident to the financing of a project authorized by this
Act, the acquisition, construction, renovation, reconstruction, or remodeling of
a project, and the placing of the same in operation. Any such obligation or
expense shall be regarded as a part of the cost of the project and may be paid
or reimbursed as such out of any funds of the authority, including proceeds of
any revenue bonds issued under the provisions of this Act for any such project
or projects and the proceeds of the sale of any contracts, lease agreements, or
installment sale agreements or the amounts payable thereunder, either directly
or by the creation of interests therein.
(3)
"County" means Monroe County, Georgia, or its successor.
(4)
"Project" means any capital project determined by the authority to promote the
public good or general welfare of the citizens of the county or to be necessary
or convenient for the efficient operation of the county, or any of its
enterprises or systems, including, but not limited to, the acquisition,
construction, renovation, improvement, extension, addition, or equipping of (A)
utility systems and improvements, including without limitation, water and sewer
systems and facilities, sewage and solid waste disposal systems and facilities,
and electric, gas, and other similar facilities or systems, (B) emergency
facilities, including emergency, fire, sheriff, and rescue facilities, (C)
recreational facilities, including parks, athletic fields, buildings, or
facilities or other similar facilities, (D) public safety facilities, including
jails, sheriff´s offices, facilities, or equipment, state patrol or other
law enforcement facilities or equipment, (E) healthcare facilities and
equipment, (F) educational, cultural, or historical facilities and equipment,
(G) transportation facilities and equipment, and (H) administrative facilities
and equipment.
(5)
"Revenue bonds" means revenue bonds issued by the authority pursuant to the
terms of this Act or under Article 3 of Chapter 82 of Title 36 of the O.C.G.A.,
known as the "Revenue Bond Law."
SECTION
4.
Powers of the authority.
Powers of the authority.
The
authority shall have the power:
(1)
To hold, own, lease, transfer, and convey real and personal property or
interests;
(2)
To sue and be sued;
(3)
To have and to use a seal and to alter the same at its pleasure;
(4)
To acquire, construct, purchase, own, equip, operate, extend, improve, lease,
and sell any project;
(5)
To exercise the powers conferred upon a "public corporation" or a "public
authority" by Article IX, Section III, Paragraph I of the Constitution of
Georgia, such authority being expressly declared to be a "public corporation" or
a "public authority" within the meaning of such provision of the Constitution of
Georgia;
(6)
To acquire property and projects in its own name by gift or by purchase on such
terms and conditions and in such manner as it may deem proper. If the authority
shall deem it expedient to construct any project on real property or any
interest therein or usufruct which is subject to the control of the county. The
county is authorized to convey such real property or interest therein to the
authority for no consideration or for such consideration as may be agreed upon
by the authority and the county, taking into consideration the public benefit to
be derived from such conveyance. The county may transfer such property or
interest therein without the necessity of putting the same out for bid and
without regard to any determination as to whether or not such property or
interest therein is in surplus.
(7)
To accept gifts and bequests for its corporate purposes;
(8)
To appoint, select, and employ, with or without bidding, as the authority may
choose, officers, agents, and employees, including engineering, architectural,
and construction experts, fiscal agents, underwriters, or other advisors, and
attorneys, and to fix their compensation;
(9)
To make and execute with public and private persons and corporations contracts,
lease agreements, rental agreements, installment sale agreements, and other
instruments, relating to its projects and incident to the exercise of the powers
of the authority, including contracts for constructing, renting, leasing, and
selling its projects for the benefit of the county; provided, without limiting
the generality of this paragraph, that the authority is specifically granted the
power to enter into contracts, lease agreements, rental agreements, installment
sale agreements, and related agreements for a term not exceeding 50 years as
provided in Section III of Article IX of the Constitution of
Georgia;
(10)
To lease, sell, transfer, or otherwise dispose of any property, real or
personal, or assets of the authority, or to assign its rights under its
contracts, lease agreements, or installment sale agreements or its right to
receive payments thereunder, either directly or through trusts or custodial
arrangements whereby interests are created in such contracts, lease agreements,
or installment sale agreements or the payments to be received thereunder through
the issuance of trust certificates, certificates of participation, custodial
receipts, or other similar instruments. In connection with any such sale,
lease, transfer or assignment, the authority need not comply with any other
provision of law requiring public bidding or any announcement to the public of
the sale of such property, assets, or rights;
(11)
To accept loans and grants of money or property of any kind from the United
States, the State of Georgia, or any political subdivision of the State of
Georgia;
(12)
To borrow money for any of its corporate purposes and to issue revenue bonds,
notes or other types of indebtedness payable solely from funds or revenues of
the authority pledged for that purpose and to pledge and assign any of its
revenues, income, rent, charges, and fees to provide for the payment of the same
and to provide for the rights of the holders of such revenue bonds; provided,
however, that the power conferred by this paragraph may not be exercised after
the expiration of four years from the effective date of this Act;
(13)
To enter into (A) interest rate swaps, collars, or other types of interest rate
management agreements, or (B) credit enhancement or liquidity agreements
relating to any obligations of the authority, provided that the obligation of
the authority under any such agreements shall not be a general obligation of the
authority but shall be a limited obligation of the authority payable from a
specific source of funds identified for such purpose. The authority shall be
exempt from any requirement of Georgia law requiring a swap management plan or
other similar plan relating to interest rate swap agreements;
(14)
To make such rules and regulations governing its employees and property as it
may in its discretion deem proper;
(15)
The authority may be sued the same as any private corporation on any contractual
obligation of the authority. The authority shall have the same rights to sue
any other person or entity as any private corporation; and
(16)
To issue its revenue bonds, notes, or other obligations to finance or refinance
any project which may be financed by the county under the Revenue Bond Law of
the State of Georgia; provided, however, that the power conferred by this
paragraph may not be exercised after the expiration of four years from the
effective date of this Act.
SECTION
5.
Members of the authority; terms of office.
Members of the authority; terms of office.
The
authority shall consist of five members who shall be the persons at the time
serving as the five duly elected commissioners of the Monroe County Board of
Commissioners, who shall be eligible to succeed themselves. The members of the
authority shall hold office for terms coinciding with their terms on the board
of commissioners and shall serve until their successors are elected. In the
event that the number of members of the Board of Commissioners is changed, then
the number of members of the authority shall be correspondingly changed.
Immediately after their election to the board of commissioners, each member of
the authority shall enter upon their duties. A majority of the members of the
authority shall constitute a quorum, and 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 and, in every instance, a majority vote of a quorum
shall authorize any legal act of the authority, including all things necessary
to authorize and issue revenue bonds. The authority shall elect one of its
members as chairperson and shall elect a secretary and treasurer who need not
necessarily be a member of the authority. The authority may elect a vice
chairperson or any number of assistant secretaries or treasurers as it may from
time to time deem necessary or desirable. The members of the authority shall not
be entitled to compensation for their services but shall be entitled to and
shall be reimbursed for the actual expenses necessarily incurred in the
performance of their duties. The authority shall make rules and regulations for
its own governance and 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 the provisions of this Act or impair the obligations of any
contracts existing under this Act.
SECTION
6.
Issuance and sale of revenue bonds.
Issuance and sale of revenue bonds.
The
authority shall have power and is authorized from time to time to provide for
the issuance and sale of negotiable revenue bonds in the maimer provided by
Article 3 of Chapter 82 of Title 36 of the O.C.G.A., known as the "Revenue Bond
Law," for the purpose of paying all or any part of the cost of any one or more
projects, including the cost of constructing, reconstructing, equipping,
extending, adding to, or improving any such project, or for the purpose of
refunding, as herein provided, any such bonds of the authority or any other
authority or public body previously issued to finance or refinance the cost of a
project. The principal of and interest on such revenue bonds shall be a limited
obligation of the authority payable solely from the source or sources of funds
specified in the indenture or resolution of the authority authorizing the
issuance of such revenue bonds. The revenue bonds of each issue shall be issued
and validated under and in accordance with the provisions of the Revenue Bond
Law. Such revenue bonds shall mature on such dates, bear interest at such rate
or rates, whether fixed or variable, be subject to redemption and have such
other terms as the authority may provide in the indenture or resolution relating
thereto. Such revenue bonds shall not be subject to any provision of Georgia
law limiting the rate of interest payable thereon and may be sold in a
negotiated sale or in a public sale as the authority may determine.
SECTION
7.
Power to incur loans or issue notes.
Power to incur loans or issue notes.
The
authority shall also have the power to incur indebtedness from time to time for
the purpose of financing or refinancing any project or refunding any obligations
previously issued for such purpose, or for any other purpose, whether in the
form of a loan or through the issuance of notes, and the principal of and
interest on such notes or loans shall be a limited obligation of the authority
payable solely from the source or sources of funds specified in the resolution
or indenture of the authority authorizing such loan or the issuance of such
notes. Any such loan or notes shall not be required to be validated as a
condition to the issuance thereof and shall have such terms as may be specified
by the authority in the resolution or indenture authorizing the
same.
SECTION
8.
Negotiable instruments; bonds and other obligations exempt from taxation.
Negotiable instruments; bonds and other obligations exempt from taxation.
All
revenue bonds issued under the provisions of this Act shall have all the
qualities and incidents of negotiable instruments under the negotiable
instruments law of this state. All such bonds, and any loan incurred or note
issued as provided in this Act, are declared to be issued or incurred for an
essential public and governmental purpose and such obligations and the interest
thereon shall be exempt from all taxation within this state.
SECTION
9.
Revenue bonds or notes not a debt or general obligation.
Revenue bonds or notes not a debt or general obligation.
Revenue
bonds or notes issued under the provisions of this Act or any loan incurred as
authorized herein shall not constitute a debt or a pledge of the faith and
credit of the State of Georgia or of any political subdivision thereof,
including the county, but shall be payable solely from the sources as may be
designated in the resolution or indenture of the authority authorizing the
issuance of the same. The issuance of such obligations shall not directly,
indirectly, or contingently obligate the State of Georgia or any political
subdivision thereof, including the county, to levy or to pledge any form of
taxation whatever for the payment thereof. No holder of any bond or receiver or
trustee in connection therewith shall have the right to enforce the payment
thereof against any property of the State of Georgia or any political
subdivision thereof, including the county, nor shall any such bond constitute a
charge, lien, or encumbrance, legal or equitable, upon any such property. All
such obligations shall contain on their face a recital setting forth
substantially the foregoing provisions of this section. Nothing in this section
shall be construed to prohibit the State of Georgia or any political subdivision
or agency thereof, including the county, from obligating itself to pay the
amounts required under any contract entered into with the authority pursuant to
Article IX of the Constitution of the State of Georgia, or any successor
provision, including from funds received from taxes to be levied and collected
for that purpose to the extent necessary to pay the obligations contractually
incurred with the authority, and from any other source.
SECTION
10.
Issuance of bonds or obligations under indentures or resolutions.
Issuance of bonds or obligations under indentures or resolutions.
In
the discretion of the authority, any issue of such revenue bonds, notes, or
other obligations may be secured by a trust indenture by and between the
authority and a trustee, which may be any trust company or bank having the
powers of a trust company within or outside of the State of Georgia. Such trust
indenture may pledge or assign fees, tolls, rents, revenues, and earnings to be
received by the authority, including the proceeds derived from the financing,
sale, or lease, from time to time, of any project. Either the resolution
providing for the issuance of revenue bonds or other obligations or such trust
indenture may contain such provisions for protecting and enforcing the rights
and remedies of the owners of such bonds or obligations as may be reasonable and
proper and not in violation of law, including covenants setting forth the duties
of the authority or any lessee or purchaser in relation to the acquisition and
construction of any project, the maintenance, operation, repair, and issuance of
any project, and the custody, safeguarding, and application of all moneys,
including the proceeds derived from the sale or lease of any project or from the
sale of any such bonds, notes, or other obligations and may also contain
provisions concerning the conditions, if any, upon which additional bonds notes
or other obligations may be issued, whether on a parity with, or subordinate to
any other obligations issued by the authority. Such indenture or resolution may
set forth the rights and remedies of the owners of such obligations and of the
trustee. In addition to the foregoing, such trust indenture may contain such
other provisions as the authority may deem reasonable and proper for the
security of the owners of such bonds or other obligations or otherwise necessary
or convenient in connection with the issuance of such obligations. All expenses
incurred in carrying out such trust indenture may be treated as a part of the
cost of maintenance, operation, and repair of the project affected by such
indenture.
SECTION
11.
Security for the payment of bonds or other obligations.
Security for the payment of bonds or other obligations.
The
authority may assign or pledge any property or revenues to the payment of the
principal and interest on revenue bonds of the authority as the resolution
authorizing the issuance of the bonds or the trust indenture may provide. The
use and disposition of such property or revenues assigned to the payment of
bonds or other obligations shall be subject to the indenture or resolution
authorizing the issuance of such revenue bonds or obligations. Any lien created
by the authority for the payment of such bonds or obligations may be a first
lien or a subordinate lien as the authority may provide, and any such indenture
or resolution may provide, at the option of the authority, for the issuance of
additional bonds or other obligations sharing any lien on a parity or
subordinate lien basis.
SECTION
12.
Refunding bonds or obligations.
Refunding bonds or obligations.
The
authority is authorized to provide by resolution for the issuance of
obligations, whether revenue bonds, notes, or other obligations, for the purpose
of refunding any revenue bonds or other obligations issued under the provisions
of this Act or under any other provision of Georgia law so long as such bonds or
other obligations were issued for a purpose or project for which the authority
could issue bonds. The issuance of such refunding bonds or other obligations
and all the details thereof, the rights of the holders thereof, and the duties
of the authority with respect to the same shall be governed by the foregoing
provisions of this Act insofar as the same may be applicable.
SECTION
13.
Principal office; venue.
Principal office; venue.
The
principal office of the authority shall be in the county, and the venue of any
action against it shall be in the county. Any action pertaining to the
validation of any bonds issued under the provisions of this Act and for the
validation of any contract entered into by the authority shall be brought in the
Superior Court of Monroe County, and such court shall have exclusive original
jurisdiction of such actions. Service upon the authority of any process,
subpoena, or summons shall be effected by serving the same personally upon any
member of the authority.
SECTION
14.
Validation of revenue bonds.
Validation of revenue bonds.
Revenue
bonds of the authority shall be confirmed and validated in accordance with the
procedure now or hereafter set forth in Article 3 of Chapter 82 of Title 36 of
the O.C.G.A., known as the "Revenue Bond Law," as the same now exists or may
hereafter be amended. The petition for validation shall also make a party
defendant to such action the county, if the county has or will contract with the
authority with respect to the project for which bonds are to be issued and are
sought to be validated. The bonds, when validated, and the judgment of
validation shall be final and conclusive with respect to the validity of such
bonds against the authority and against all other persons or entities,
regardless of whether such persons or entities were parties to such validation
proceedings.
SECTION
15.
No impairment of rights.
No impairment of rights.
While
any of the bonds or other obligations issued by the authority or any interests
in contracts of the authority remain outstanding, the powers, duties, or
existence of the authority or of its officers, employees, or agents shall not be
diminished or impaired in any manner that will affect adversely the interest and
rights of the holders of such bonds or obligations or such interests in
contracts of the authority. The provisions of this section of this Act shall be
for the benefit of the authority and of the holders of any such bonds or
obligations and interests in contracts of the authority and, upon the issuance
of bonds or obligations or the creation of interests in contracts of the
authority under the provisions of this Act, shall constitute a contract with the
holders of such bonds or obligations or such interests in contracts of the
authority.
SECTION
16.
Trust Funds; permitted investments.
Trust Funds; permitted investments.
All
moneys received by the authority pursuant to this Act, whether as proceeds from
the sale of revenue bonds or obligations of the authority, as grants or other
contributions, or as revenues, income, fees, and earnings, shall be deemed to be
the trust funds to be held and applied solely as provided in this Act and in
such resolutions and trust indentures as may be adopted and entered into by the
authority pursuant to this Act. Any such moneys or funds may be invested from
time to time in such investments as may be permitted under the indenture,
agreement, or resolution establishing the fund or account in which such funds
are held, or if not held in such a fund or account, in such investments as would
be permitted investments for a development authority created under O.C.G.A.
Section 36-62-1, et seq., as amended.
SECTION
17.
Power to set rates, fees, and charges.
Power to set rates, fees, and charges.
The
authority is authorized to prescribe and fix and collect rates, fees, tolls,
rents, and charges and to revise, from time to time, and collect such revised
rates, fees, tolls, rents, and charges for the services, facilities, or
commodities furnished, including leases, concessions, or subleases of its
projects, and to determine the price and terms at and under which its projects
may be sold, leased or otherwise disposed of.
SECTION
18.
Essential governmental function; no taxes or assessments.
Essential governmental function; no taxes or assessments.
All
property or interests in property owned by the authority shall be public
property held and owned for governmental purposes and shall be exempt from ad
valorem taxation. The exercise of the powers conferred upon the authority
hereunder 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 or upon its activities in the operation and
maintenance of property acquired by it or of buildings erected or acquired by it
or any fees, rentals, or other charges for the use of such property or buildings
or other income received by the authority. The tax exemption herein provided
shall not include an exemption from sales and use tax on property purchased by
or for the use of the authority.
SECTION
19.
Immunity of authority and members.
Immunity of authority and members.
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 the 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.
SECTION
20.
Authority property not subject to levy and sale.
Authority property not subject to levy and sale.
The
property of the authority shall not be subject to levy and sale under legal
process.
SECTION
21.
Authority area of operation.
Authority area of operation.
The
scope of the authority´s operations shall be limited to the territory
embraced within the territorial limits of the county, as the same now or may
hereafter exist; provided, however, that nothing in this section shall prevent
the authority from contracting with any entity, public or private, outside of
the county with respect to any project located in the county, or located outside
of the county, if the authority shall determine that entering into such contract
is in the best interest of the authority and in furtherance of its public
purposes.
SECTION
22.
Supplemental powers.
Supplemental powers.
This
Act does not in any way take away from the authority any power which may be
conferred upon it by law but is supplemental thereto.
SECTION
23.
No power to impose taxes.
No power to impose taxes.
The
authority shall not have the right to impose any tax on any person or
property.
SECTION
24.
Act to be liberally construed.
Act to be liberally construed.
This
Act shall be liberally construed to effect the purposes hereof.
SECTION
25.
Severability of provisions.
Severability of provisions.
Should
any sentence, clause, phrase, or part of this Act be declared for any reason to
be unconstitutional or invalid, the same shall not affect the remainder of this
Act, or any part hereof, other than the part so held to be invalid, but the
remaining provisions of this Act shall remain in full force and effect, and it
is the express intention of this Act to enact each provision of this Act
independently of any other provision hereof.
SECTION
26.
Effective date.
Effective date.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
27.
Conflicting laws.
Conflicting laws.
All
laws and parts of laws in conflict with this Act are repealed.