HB 1448: Georgia Local Government Finance Authority Act; enact

Right now, small and mid-sized Georgia local governments (counties, cities, school districts, and other political subdivisions) often pay higher borrowing costs than the state or larger governments when they need to finance vehicles, equipment, or other capital assets such as police cars or school buses. HB 1448 adds a new chapter to Georgia's local government code creating the Georgia Local Government Finance Authority, a public body run by five appointed members, to pool financing needs and issue bonds on behalf of participating local governments. The authority could buy, lease, or sell assets to local governments, issue revenue bonds (with a 30-year maximum maturity), and secure those bonds with leases or installment payments from participating governments. Its bonds would not count as debt of the state or any local government, and neither the authority nor its bonds and property would be subject to state or local taxes. The authority's official legal home would be Fulton County, and bond validation lawsuits would go through the Fulton County Superior Court. The bill also updates a related definitions section so the new authority is recognized under existing interest rate management agreement law.

• Creates the Georgia Local Government Finance Authority, a five-member public body appointed by the Governor, Senate President, and House Speaker.
• Lets the authority issue revenue bonds, notes, and other debt instruments to finance capital assets like vehicles and equipment for local governments that choose to participate.
• Allows the authority to lease, sell, or finance assets to counties, cities, school districts, and other political subdivisions on negotiated terms without competitive bidding requirements.
• Exempts the authority, its bonds, and its property from state and local taxes, except sales and use tax exemptions are limited to what the participating local government would already get.
• Specifies that the authority's bonds are not a debt or credit pledge of the state or any local government, so no locality is on the hook if bonds default.
• Sets Fulton County as the authority's legal home and the exclusive venue for lawsuits, including bond validation cases.

Georgia counties, municipalities, consolidated governments, school districts, and other local political subdivisions that choose to finance vehicles or equipment through the new authority; the Governor, Senate President, and House Speaker, who appoint its board; the Georgia Municipal Association, which may provide staff support; and bondholders who purchase the authority's debt.

Local governments, especially smaller ones, could get access to pooled, potentially cheaper financing for police cars, school buses, and other equipment instead of borrowing individually. Because the authority's debt is not backed by state or local tax revenue, bondholders bear the financial risk rather than taxpayers directly, though local governments still make lease or purchase payments.

• Code Section 36-93-3 defines 'assets' broadly to include vehicles and equipment for public safety and schools, and defines 'participating local government' to include counties, municipalities, school districts, authorities, and special districts.
• Code Section 36-93-4 sets up a five-member authority (three Governor appointees, one each from the Senate President and House Speaker), all of whom must be elected local government officials, serving unpaid but reimbursed for expenses.
• Code Section 36-93-5 grants the authority broad powers including issuing bonds, buying and leasing assets, hiring staff and consultants, and investing funds.
• Code Section 36-93-7 allows revenue bonds maturing up to 30 years, at fixed or variable rates, sold publicly or privately, and requires validation only in the Fulton County Superior Court.
• Code Section 36-93-9 exempts the authority's bond sales from Georgia's securities law and exempts its contracts with local governments from competitive bidding requirements.
• Code Section 36-93-10 states that authority bonds are not a debt or tax pledge of the state or any local government.
• Code Section 36-93-11 exempts the authority, its property, activities, and bonds from state and local taxation, with limited sales and use tax exceptions.
• Section 2 amends O.C.G.A. § 36-82-250 to add the new authority to the definition of 'local governmental entity' for interest rate management agreement purposes.

1. 2026-02-25House Second Readers (House)
2. 2026-02-24House First Readers (House)
3. 2026-02-24House Hopper (House)

• Victor Anderson (R, HD-010)Primary sponsor
• Bill Yearta (R, HD-152)
• Rob Leverett (R, HD-123)
• Katie Dempsey (R, HD-013)
• Gary Richardson (R, HD-125)

• local government finance
• municipal bonds
• public authorities
• county and city government
• government equipment financing