SB260: SB260 Central State Hospital Redevelopment Authority; create

26 LC 62 0510S The House Committee on Intragovernmental Coordination offers th e following substitute to SB 260: A BILL TO BE ENTITLED AN ACT To amend Title 50 of the Official Code of Georgia Annotated, relating to state government,1 so as to create the Central State Hospital Redevelopment Author ity; to confer powers and2 impose duties on the authority; to provide for membership, appo intment of members, and3 terms of members of the authority; to provide for meetings; to prohibit employees and4 members from having certain interests; to provide for revenue bonds; to provide for venue5 and jurisdiction; to provide for the authority's purpose; to provide for rules and regulations;6 to provide for tax exemptions; to provide for supplemental powe rs; to provide for liberal7 construction; to provide for successor interests; to provide for definitions; to provide for an8 effective date; to provide for related matters; to repeal confl icting laws; and for other9 purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended13 by adding a new chapter to read as follows:14 S. B. 260 (SUB) - 1 - 26 LC 62 0510S "Chapter 4115 50-41-1.16 As used in this article, the term:17 (1) 'Authority' means the Central State Hospital Redevelopment Authority created in this18 article.19 (2) 'Central State Hospital' means the Central State Hospital in Milledgeville, Georgia,20 now or formerly under the jurisdiction of the Department of Beh avioral Health and21 Developmental Disabilities.22 (3) 'Cost of the project' means and embraces the cost of const ruction; the cost of all23 lands, properties, rights, easements, and franchises acquired; the cost of all machinery and24 equipment, financing charges, interest prior to and during construction and for one year25 after completion of construction; the cost of engineering, architectural, fiscal agent, and26 legal expenses, and of plans and specifications and other expenses necessary or incident27 to determining the feasibility or practicability of the project, administrative expenses, and28 such other expenses as may be necessary or incident to the financing authorized in this29 article; the cost of the acquisition or construction of any project; and the cost of placing30 any project in operation. Any obligation or expense incurred f or any of the foregoing31 purposes shall be regarded as a part of the cost of the project and may be paid or32 reimbursed as such out of the proceeds of revenue bonds issued under the provisions of33 this article for such projects.34 (4) 'Economic development conveyance' shall have the same meaning as provided in 3235 C.F.R. Section 174.9(a).36 (5) 'Local government' means, individually or in combination, the City of Milledgeville,37 Baldwin County, or any development authority of either or both.38 (6)(A) 'Project' includes:39 S. B. 260 (SUB) - 2 - 26 LC 62 0510S (i) The land and any one or more buildings or structures locat ed in or on the real40 property formerly occupied by Central State Hospital and the real property adjacent41 thereto to be used in education, parks and recreation, transpor tation, healthcare,42 research, housing, commerce, or the production, manufacturing, processing,43 assembling, storing, or handling of any agricultural, manufactu red, mining, or44 industrial products or any combination of the foregoing or similar uses, in every case45 with all necessary or useful furnishings, machinery, equipment, parking facilities,46 landscaping, and facilities for ou tdoor storage, all as determi ned by the authority,47 which determination shall be final and not subject to review; a nd there may be48 included as part of any such project all improvements necessary to the full utilization49 thereof, including site preparation, roads and streets, sidewalks, water supply, outdoor50 lighting, belt line railroad sidings and lead tracks, bridges, causeways, terminals for51 railroad and automotive transportation, and transportation facilities incidental to the52 project;53 (ii) The acquisition, construction, leasing, or equipping of new industrial facilities or54 the improvement, modification, acquisition, expansion, moderniz ation, leasing,55 equipping, or remodeling of existing industrial or governmental facilities located or56 to be located in or on the property formerly occupied by Central State Hospital and57 the properties adjacent thereto;58 (iii) The acquisition, construction, improvement, or modification of any property, real59 or personal, which any industrial concern might desire to use, acquire, or lease in60 connection with the operation of any plant or facility located or to be located in or on61 the property formerly occupied by Central State Hospital and the properties adjacent62 thereto; and63 (iv) The acquisition and development of land in or on the property formerly occupied64 by Central State Hospital as the site for an educational facility, historic preservation65 site, commercial enterprise, entertainment facility, park or re creational facility,66 S. B. 260 (SUB) - 3 - 26 LC 62 0510S industrial park, transportation facility, healthcare facility, research facility, residential67 project, or similar uses, provided that, as used in this division, the term 'development68 of land' includes the provision of water, sewage, drainage, or similar facilities or69 transportation, power, or communication facilities which are incidental to use of the70 site as an educational facility, historic preservation site, co mmercial enterprise,71 entertainment facility, park or recreational facility, industri al park, transportation72 facility, healthcare facility, research facility, residential p roject, or similar use but,73 except with respect to such facilities, does not include the provision of structures or74 buildings.75 (B) Such term excludes real property, personal property, and fixtures within the control76 of the Department of Behavioral Health and Developmental Disabi lities and not77 declared surplus to its needs.78 50-41-2.79 (a)(1) The authority is authorized to acquire, construct, operate, maintain, expand, and80 improve a project for the purpose of promoting trade, commerce, industry, and81 employment opportunities within this state for the public good and general welfare and,82 without limitation of the foregoing, with the approval of the State Properties Commission,83 to acquire land for such purposes.84 (2) The authority may pay the costs of the project from any lawful fund source available85 for the purpose, including, without limitation, where applicabl e, funds received by86 appropriation, proceeds of general obligation debt, funds of local government, grants of87 the United States or any agency or instrumentality thereof, gifts, and otherwise.88 (3) The authority shall consider the impact of any project on the current operations of89 Central State Hospital and consult the Department of Behavioral H e a l t h a n d90 Developmental Disabilities as needed.91 S. B. 260 (SUB) - 4 - 26 LC 62 0510S (4) The project shall be located in Baldwin County, Georgia, and shall be known as the92 Central State Hospital Redevelopment Authority except that any facility included within93 the project may be otherwise designated.94 (b) A local government and the authority are both authorized to contract with one another95 whereby the local government may exercise on behalf of the auth ority such future96 responsibility in connection with the construction, operation, management, and97 maintenance of the project as is now or may be vested in the authority; and the authority98 is authorized by such contract to delegate to the local governm ent corresponding99 responsibilities and powers with respect to the project and to transfer to the local100 government any and all contracts, plans, documents, or other pa pers of the authority101 relating to the project, as compensation to the local government under such contract. To102 the extent provided by such contract with the authority, the local government on behalf of103 the authority shall acquire, plan, construct, erect, repair, remodel, maintain, add to, extend,104 improve, equip, operate, and manage the project.105 (c) Without limiting the generality of any provision of this article, the general purpose of106 the local government under this article is declared to be that of acquiring, constructing,107 equipping, maintaining, and operating the project, in whole or in part, directly or under108 contract with the authority and engaging in such other activities as it deems appropriate to109 promote the use of the project and the use of the industrial, a gricultural, educational,110 historical, cultural, recreational, commercial, and natural resources of the State of Georgia111 by those using the project or visiting this state.112 (d) The authority shall have the power with the approval of th e State Properties113 Commission to lease any improved or unimproved land or other pr operty acquired by it114 under this Code section to the local government for a term not to exceed 50 years but upon115 such other terms and conditions as the authority may determine necessary or convenient.116 Any such lease may be for and in consideration of $1.00 annually for each calendar year117 or portion thereof paid in kind to and receipted for by the Office of the State Treasurer and118 S. B. 260 (SUB) - 5 - 26 LC 62 0510S in further consideration that such property be held, constructe d, operated, maintained,119 expanded, or improved for the purposes for which the authority was authorized to acquire120 such property. It is determined that such consideration is good and valuable and sufficient121 consideration for such lease and in the interest of the public welfare of the State of Georgia122 and its citizens.123 50-41-3.124 (a) There is created a body corporate and politic to be known as the Central State Hospital125 Redevelopment Authority, which shall be deemed to be a political subdivision of the State126 of Georgia and a public corporation, and by that name, style, a nd title, said body may127 contract and be contracted with, sue and be sued, implead and be impleaded, and bring and128 defend actions in all courts. The authority shall have perpetual existence.129 (b)(1) The authority shall consist of five members to be appoi nted in the following130 manner:131 (A) One member shall be appointed by the Governor;132 (B) One member shall be appointed by the President of the Senate;133 (C) One member shall be appointed by the Speaker of the House of Representatives; 134 (D) One member shall be appointed by the governing authority o f the City of135 Milledgeville; and136 (E) One member shall be appointed by the governing authority of Baldwin County.137 (2) Persons so appointed shall serve for initial terms of offi ce which shall expire on138 December 31 of the fourth year after such appointment. After the initial terms of office,139 members of the authority shall serve for terms of office of four years each. Members of140 the authority shall serve their respective terms of office specified in this subsection and141 until their respective successo rs are appointed and qualified. Any member of the142 authority may be appointed to succeed himself or herself. After such appointment, the143 members of such authority shall enter upon their duties. Any vacancy on the authority144 S. B. 260 (SUB) - 6 - 26 LC 62 0510S shall be filled in the same manner as was the original appointment of the member whose145 term of office resulted in such vacancy. A person appointed to fill a vacancy shall serve146 for the remainder of the unexpired term and until the appointment and qualification of a147 successor. The members of the authority shall be reimbursed, upon submission of sworn148 vouchers, for all actual expenses incurred in the performance of their duties out of funds149 of the authority, with a maximum reimbursement of $100.00 per m eeting for no more150 than three meetings per month. The authority shall make rules and regulations for its own151 government.152 (3) To be eligible for appointment as a member of the authorit y, a person shall be at153 least 21 years of age and shall not have been convicted of a felony.154 (4) The members of the authority shall elect from their number a chairperson, vice155 chairperson, secretary, and treasurer. The secretary may also serve as treasurer. Each of156 such officers shall serve for a period of two years and until t heir successors are duly157 elected. The chairperson of the authority shall be entitled to vote upon any issue, motion,158 or resolution.159 (c) The authority may create subcommittees as it deems appropriate. The authority may160 appoint as members of the subcommittees such individuals from t he community as the161 authority deems appropriate, and such members do not have to be m e m b e r s o f t h e162 authority. The subcommittees shall serve in an advisory capaci ty to the authority. The163 chairperson of the authority shall choose from among the members of each subcommittee164 a person to serve as chairperson of that subcommittee. The cha irpersons of the165 subcommittees shall serve four-year terms and shall be eligible for reappointment.166 (d) A majority of the members of the authority shall constitute a quorum. No vacancy on167 the authority shall impair the right of the quorum to exercise all of the rights and perform168 all of the duties of the authority.169 (e) A vacancy on the authority shall exist in the office of any member of the authority who170 is convicted of a felony or who enters a plea of nolo contendere thereto; who is convicted171 S. B. 260 (SUB) - 7 - 26 LC 62 0510S of a crime involving moral turpitude or who enters a plea of nolo contendere thereto; who172 is convicted of any act of misfeasance, malfeasance, or nonfeasance of such person's duties173 as a member of the authority; or who fails to attend three consecutive regular meetings of174 the authority without an excuse approved by a resolution of the authority.175 (f) All meetings of the authority, regular or special, shall be open to the public.176 (g) No member or employee of the authority shall have, directly or indirectly, any financial177 interest, profit, or benefit in any contract, work, or business of the authority nor in the sale,178 lease, or purchase of any property to or from the authority.179 50-41-4.180 The general purpose of the authority is declared to be that of executing and administering181 the reuse plan for the property formerly occupied by Central St ate Hospital; executing182 economic development conveyances for such property formerly occupied by Central State183 Hospital resulting from the closure or realignment of Central S tate Hospital so as to184 ameliorate the impact of such closure or realignment on the communities and residents of185 the City of Milledgeville and Baldwin County; extending and imp roving such projects;186 acquiring the necessary property therefor, both real and personal, with the right to contract187 for the use of or to lease or sell any or all of such facilities, including real property, to any188 persons, firms, or corporations, whether public or private, if in the sole judgment of the189 authority such use, lease, or sale supports the general purposes of the authority; and doing190 all things deemed by the authority necessary, convenient, and desirable for and incident to191 the efficient and proper development and operation of such type of undertakings.192 50-41-5.193 (a) The authority shall have the power:194 (1) To have a seal and alter the same at its pleasure;195 S. B. 260 (SUB) - 8 - 26 LC 62 0510S (2) To acquire by purchase, lease, or otherwise, including acquisition of land from the196 state government, and to hold, lease, and dispose of real and personal property of every197 kind and character for its corporate purpose and to plan, acqui re, establish, develop,198 construct, enlarge, improve, maintain, equip, and lease all pro jects which shall come199 under the control of the authority under the provisions of this article or which it may200 acquire or plan to acquire; to regulate, protect, and police su ch projects and all related201 activities and facilities; to enter into any contracts, leases, or other charges for the use of202 property or services of the authority and collect and use the same as necessary to operate203 the projects under control of the authority; and to accomplish any of the purposes of this204 article and make any purchases or sales necessary for such purposes;205 (3) To acquire in its own name by purchase, on such terms and conditions and in such206 manner as it may deem proper, real property, or rights or easements therein, or franchises207 necessary or convenient for its corporate purpose, and to use t he same so long as its208 corporate existence shall continue, and to lease or make contracts with respect to the use209 of such property, or dispose of the same in any manner it deems to be to the best210 advantage of the authority;211 (4) To appoint, select, and employ officers, agents, and employees, including real estate,212 environmental, engineering, architectural, and construction exp erts; fiscal agents; and213 attorneys, and to fix their respective compensations;214 (5) To make contracts and leases and to execute all instruments necessary or convenient,215 including contracts for construction of projects and leases of projects or contracts with216 respect to the use of projects which it causes to be constructed, erected, or acquired. Any217 and all persons, firms, and corporations and any and all politi cal subdivisions,218 departments, institutions, or agencies of the state and federal government are authorized219 to enter into contracts, leases, or agreements with the authority upon such terms and for220 such purposes as they deem advisable; and, without limiting the generality of the221 foregoing, authority is specifically granted to municipal corporations, counties, political222 S. B. 260 (SUB) - 9 - 26 LC 62 0510S subdivisions, and the authority relative to entering into contr acts, lease agreements, or223 other undertakings authorized between the authority and private corporations, both inside224 and outside this state, and between the authority and public bo dies, including counties225 and cities outside this state and the federal government;226 (6) To construct, erect, acquire, own, repair, remodel, maintain, add to, extend, improve,227 equip, operate, and manage projects, the cost of the project to be paid in whole or in part228 from the proceeds of revenue bonds of the authority or from such proceeds and any grant229 or contribution from the United States of America or any agency or instrumentality230 thereof or from the State of Georgia or any agency or instrumentality thereof;231 (7) To accept loans and grants of money or materials or property of any kind from the232 United States of America or any agency or instrumentality thereof upon such terms and233 conditions as the United States of America or such agency or in strumentality may234 require;235 (8) To accept loans and grants of money or materials or property of any kind from the236 State of Georgia or any agency or instrumentality or political subdivision thereof upon237 such terms and conditions as the State of Georgia or such agenc y or instrumentality or238 political subdivision may require;239 (9) To borrow money for any of its corporate purposes and to issue negotiable revenue240 bonds payable solely from funds pledged for the purpose and to provide for the payment241 of the same and for the rights of the holders thereof;242 (10) To exercise any power usually possessed by private corporations performing similar243 functions, including the power to make short-term loans and app rove, execute, and244 deliver appropriate evidence of such indebtedness, provided tha t no such power is in245 conflict with the Constitution or general laws of this state;246 (11) To encourage and facilitate job training and housing reha bilitation programs for247 residents surrounding Central State Hospital; and248 S. B. 260 (SUB) - 10 - 26 LC 62 0510S (12) To do all things necessary or convenient to carry out the powers expressly given in249 this article.250 (b) The authority shall be assigned for administrative purposes to the authority as provided251 for in Code Section 50-4-3.252 (c) The Attorney General shall provide legal services for the authority in the same manner253 provided for in Code Sections 45-15-13 through 45-15-16.254 50-41-6.255 The authority, or any authority or body which had or which may in the future succeed to256 the powers, duties, and liabilities vested in the authority cre ated by this article, is257 authorized to provide by resolution for the issuance of negotia ble revenue bonds of the258 authority for the purpose of paying all or any part of the cost of the project of any one or259 more projects. The authority shall comply with Article 3 of Ch apter 82 of Title 36, the260 'Revenue Bond Law,' when issuing bonds.261 50-41-7.262 (a) Each year the authority shall have made an independent audit and examination of the263 authority's financial records and transactions. Such audit shall be made in accordance with264 established national audit and accounting standards. Such audit shall be made on or before265 the one hundred-eightieth day following the end of the authority's fiscal year. Copies of266 such audit shall be available for public review and provided to the state auditor.267 (b) Annual audit reports of the authority shall contain at least:268 (1) Financial statements prepared in conformity with generally accepted national269 accounting principles, setting forth the financial condition and results of operation of each270 fund and activity of the authority; and271 (2) The opinion of the performing auditor with respect to the financial statement in272 addition to an explanation of any qualification or disclaimers contained in the opinion.273 S. B. 260 (SUB) - 11 - 26 LC 62 0510S Such opinion shall also disclose, in accordance with generally accepted national auditing274 standards, any apparent or material violation of state law discovered during the audit.275 (c) The authority shall forward to the state auditor written comments on the findings and276 recommendations in the report, including a plan for corrective action taken or planned and277 comments on the status of the corrective action taken on prior findings.278 (d) The state auditor shall review the audit report and written comments submitted to the279 auditor's office to ensure that it conforms with generally acce pted national auditing280 principles. After review, the state auditor shall submit to the authority a list of deficiencies281 to be corrected.282 (e) Upon failure, refusal, or neglecting to have an annual aud it made; a failure to file a283 copy of the audit report with the state auditor; or a failure to correct auditing deficiencies284 noted by the state auditor, the state auditor shall cause a prominent notice to be published285 in the legal organ of Baldwin County and in any other newspapers of general circulation286 within the City of Milledgeville. Such notice shall be a promi nently displayed287 advertisement or news article and shall not be placed in the section of the newspaper where288 legal notices appear. Such notice shall be published twice and shall state that the authority289 has failed, refused, or neglected, as the case may be, to have an annual audit made, to file290 an audit report, or to correct auditing deficiencies, as the case may be, for the fiscal year291 or years in question. The notice shall further state that such failure, refusal, or neglect is292 a violation of law.293 50-41-8.294 It shall be the duty of the authority to prescribe rules and regulations for the operation of295 the project or projects constructed or acquired under the provisions of this article.296 S. B. 260 (SUB) - 12 - 26 LC 62 0510S 50-41-9.297 It is found, determined, and declared that the creation of the authority and the carrying out298 of its corporate purpose is in all respects for the benefit of the people of this state; that the299 authority is an institution of purely public charity and will b e performing an essential300 governmental function in the exercise of the power conferred upon it by this article; that301 this state covenants with the holders of the bonds; that the authority shall not be required302 to pay any taxes or assessments upon any of the property acquired or leased by it or under303 its jurisdiction, control, possession, or supervision or upon its activities in the operation or304 maintenance of the projects erected by it or any rates, fees, tolls, or other charges for the305 use of such projects or other income received by the authority; and that the bonds of the306 authority, their transfer, and the income therefrom shall at al l times be exempt from307 taxation within this state. The exemption from taxation provided for in this Code section308 shall not extend to tenants or lessees of the authority and shall not include exemptions from309 sales and use taxes on property purchased by the authority or for use by the authority.310 50-41-10.311 This article shall be regarded as supplemental and additional to powers conferred by other312 laws, and shall not be regarded as in derogation of any powers now existing.313 50-41-11.314 Any action to protect or enforce any rights under this article shall be brought in the315 Superior Court of Baldwin County.316 50-41-12.317 The property of the authority shall not be subject to levy and sale under legal process.318 S. B. 260 (SUB) - 13 - 26 LC 62 0510S 50-41-13.319 All funds received by the authority pursuant to this article, whether as revenue, rents, fees,320 charges, or other earnings or as grants, gifts, or other contributions, shall be deemed to be321 trust funds held and applied by the authority solely as provided in this article.322 50-41-14.323 This article shall be liberally construed to effect the purposes of this article.324 50-41-15.325 (a) Should the authority for any reason be dissolved, title to all property of any kind and326 nature, real and personal, held by the authority at the time of such dissolution shall be327 conveyed to the State of Georgia; or title to any such property may be conveyed prior to328 such dissolution in accordance with provisions which may be mad e therefor in any329 resolution or trust instrument relating to such property, subject to any liens, leases, or other330 encumbrances outstanding against or in respect to such property at the time of such331 conveyance.332 (b) All powers, duties, assets, real and personal property, liabilities, and indebtedness of333 the Central State Hospital Local Redevelopment Authority created by an Act to create the334 Central State Hospital Local Redevelopment Authority, approved February 29, 2012 (Ga.335 L. 2012, p. 3837), as amended, are transferred to the authority. The authority shall be the336 successor to the Central State Hospital Local Redevelopment Aut hority in all contracts337 entered into by the Central State Hospital Local Redevelopment Authority which are in338 existence on the effective date of this Act and to all accounts of and debts owed to the339 Central State Hospital Local Redevelopment Authority that are outstanding on the effective340 date of this Act."341 S. B. 260 (SUB) - 14 - 26 LC 62 0510S SECTION 2.342 This Act shall become effective upon its approval by the Governor or upon its becoming law343 without such approval.344 SECTION 3.345 All laws and parts of laws in conflict with this Act are repealed.346 S. B. 260 (SUB) - 15 -