SB 260: Central State Hospital Redevelopment Authority; create

The House Committee on Intragovernmental Coordination offers the 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, so as to create the Central State Hospital Redevelopment Authority; to confer powers and impose duties on the authority; to provide for membership, appointment of members, and terms of members of the authority; to provide for meetings; to prohibit employees and members from having certain interests; to provide for revenue bonds; to provide for venue and jurisdiction; to provide for the authority's purpose; to provide for rules and regulations; to provide for tax exemptions; to provide for supplemental powers; to provide for liberal construction; to provide for successor interests; to provide for definitions; to provide for 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.

Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended by adding a new chapter to read as follows:

"Chapter 41

50-41-1.

As used in this article, the term:

(1) 'Authority' means the Central State Hospital Redevelopment Authority created in this article.

(2) 'Central State Hospital' means the Central State Hospital in Milledgeville, Georgia, now or formerly under the jurisdiction of the Department of Behavioral Health and Developmental Disabilities.

(3) 'Cost of the project' means and embraces the cost of construction; the cost of all lands, properties, rights, easements, and franchises acquired; the cost of all machinery and equipment, financing charges, interest prior to and during construction and for one year after completion of construction; the cost of engineering, architectural, fiscal agent, and legal expenses, and of plans and specifications and other expenses necessary or incident to determining the feasibility or practicability of the project, administrative expenses, and such other expenses as may be necessary or incident to the financing authorized in this article; the cost of the acquisition or construction of any project; and the cost of placing any project in operation. Any obligation or expense incurred for any of the foregoing purposes shall be regarded as a part of the cost of the project and may be paid or reimbursed as such out of the proceeds of revenue bonds issued under the provisions of this article for such projects.

(4) 'Economic development conveyance' shall have the same meaning as provided in 32 C.F.R. Section 174.9(a).

(5) 'Local government' means, individually or in combination, the City of Milledgeville, Baldwin County, or any development authority of either or both. (6)(A) 'Project' includes:

(i) The land and any one or more buildings or structures located in or on the real property formerly occupied by Central State Hospital and the real property adjacent thereto to be used in education, parks and recreation, transportation, healthcare, research, housing, commerce, or the production, manufacturing, processing, assembling, storing, or handling of any agricultural, manufactured, mining, or industrial products or any combination of the foregoing or similar uses, in every case with all necessary or useful furnishings, machinery, equipment, parking facilities, landscaping, and facilities for outdoor storage, all as determined by the authority, which determination shall be final and not subject to review; and there may be included as part of any such project all improvements necessary to the full utilization thereof, including site preparation, roads and streets, sidewalks, water supply, outdoor lighting, belt line railroad sidings and lead tracks, bridges, causeways, terminals for railroad and automotive transportation, and transportation facilities incidental to the project;

(ii) The acquisition, construction, leasing, or equipping of new industrial facilities or the improvement, modification, acquisition, expansion, modernization, leasing, equipping, or remodeling of existing industrial or governmental facilities located or to be located in or on the property formerly occupied by Central State Hospital and the properties adjacent thereto;

(iii) The acquisition, construction, improvement, or modification of any property, real or personal, which any industrial concern might desire to use, acquire, or lease in connection with the operation of any plant or facility located or to be located in or on the property formerly occupied by Central State Hospital and the properties adjacent thereto; and

(iv) The acquisition and development of land in or on the property formerly occupied by Central State Hospital as the site for an educational facility, historic preservation site, commercial enterprise, entertainment facility, park or recreational facility, industrial park, transportation facility, healthcare facility, research facility, residential project, or similar uses, provided that, as used in this division, the term 'development of land' includes the provision of water, sewage, drainage, or similar facilities or transportation, power, or communication facilities which are incidental to use of the site as an educational facility, historic preservation site, commercial enterprise, entertainment facility, park or recreational facility, industrial park, transportation facility, healthcare facility, research facility, residential project, or similar use but, except with respect to such facilities, does not include the provision of structures or buildings.

(B) Such term excludes real property, personal property, and fixtures within the control of the Department of Behavioral Health and Developmental Disabilities and not declared surplus to its needs.

50-41-2.

(a)(1) The authority is authorized to acquire, construct, operate, maintain, expand, and improve a project for the purpose of promoting trade, commerce, industry, and employment opportunities within this state for the public good and general welfare and, without limitation of the foregoing, with the approval of the State Properties Commission, to acquire land for such purposes.

(2) The authority may pay the costs of the project from any lawful fund source available for the purpose, including, without limitation, where applicable, funds received by appropriation, proceeds of general obligation debt, funds of local government, grants of the United States or any agency or instrumentality thereof, gifts, and otherwise.

(3) The authority shall consider the impact of any project on the current operations of Central State Hospital and consult the Department of Behavioral Health and Developmental Disabilities as needed.

(4) The project shall be located in Baldwin County, Georgia, and shall be known as the Central State Hospital Redevelopment Authority except that any facility included within the project may be otherwise designated.

(b) A local government and the authority are both authorized to contract with one another whereby the local government may exercise on behalf of the authority such future responsibility in connection with the construction, operation, management, and maintenance of the project as is now or may be vested in the authority; and the authority is authorized by such contract to delegate to the local government corresponding responsibilities and powers with respect to the project and to transfer to the local government any and all contracts, plans, documents, or other papers of the authority relating to the project, as compensation to the local government under such contract. To the extent provided by such contract with the authority, the local government on behalf of the authority shall acquire, plan, construct, erect, repair, remodel, maintain, add to, extend, improve, equip, operate, and manage the project.

(c) Without limiting the generality of any provision of this article, the general purpose of the local government under this article is declared to be that of acquiring, constructing, equipping, maintaining, and operating the project, in whole or in part, directly or under contract with the authority and engaging in such other activities as it deems appropriate to promote the use of the project and the use of the industrial, agricultural, educational, historical, cultural, recreational, commercial, and natural resources of the State of Georgia by those using the project or visiting this state.

(d) The authority shall have the power with the approval of the State Properties Commission to lease any improved or unimproved land or other property acquired by it under this Code section to the local government for a term not to exceed 50 years but upon such other terms and conditions as the authority may determine necessary or convenient. Any such lease may be for and in consideration of $1.00 annually for each calendar year or portion thereof paid in kind to and receipted for by the Office of the State Treasurer and in further consideration that such property be held, constructed, operated, maintained, expanded, or improved for the purposes for which the authority was authorized to acquire such property. It is determined that such consideration is good and valuable and sufficient consideration for such lease and in the interest of the public welfare of the State of Georgia and its citizens.

50-41-3.

(a) There is created a body corporate and politic to be known as the Central State Hospital Redevelopment Authority, which shall be deemed to be a political subdivision of the State of Georgia and a public corporation, and by that name, style, and title, said body may contract and be contracted with, sue and be sued, implead and be impleaded, and bring and defend actions in all courts. The authority shall have perpetual existence. (b)(1) The authority shall consist of five members to be appointed in the following manner:

(A) One member shall be appointed by the Governor;

(B) One member shall be appointed by the President of the Senate;

(C) One member shall be appointed by the Speaker of the House of Representatives;

(D) One member shall be appointed by the governing authority of the City of Milledgeville; and

(E) One member shall be appointed by the governing authority of Baldwin County.

(2) Persons so appointed shall serve for initial terms of office which shall expire on December 31 of the fourth year after such appointment. After the initial terms of office, members of the authority shall serve for terms of office of four years each. Members of the authority shall serve their respective terms of office specified in this subsection and until their respective successors are appointed and qualified. Any member of the authority may be appointed to succeed himself or herself. After such appointment, the members of such authority shall enter upon their duties. Any vacancy on the authority shall be filled in the same manner as was the original appointment of the member whose term of office resulted in such vacancy. A person appointed to fill a vacancy shall serve for the remainder of the unexpired term and until the appointment and qualification of a successor. The members of the authority shall be reimbursed, upon submission of sworn vouchers, for all actual expenses incurred in the performance of their duties out of funds of the authority, with a maximum reimbursement of $100.00 per meeting for no more than three meetings per month. The authority shall make rules and regulations for its own government.

(3) To be eligible for appointment as a member of the authority, a person shall be at least 21 years of age and shall not have been convicted of a felony.

(4) The members of the authority shall elect from their number a chairperson, vice chairperson, secretary, and treasurer. The secretary may also serve as treasurer. Each of such officers shall serve for a period of two years and until their successors are duly elected. The chairperson of the authority shall be entitled to vote upon any issue, motion, or resolution.

(c) The authority may create subcommittees as it deems appropriate. The authority may appoint as members of the subcommittees such individuals from the community as the authority deems appropriate, and such members do not have to be members of the authority. The subcommittees shall serve in an advisory capacity to the authority. The chairperson of the authority shall choose from among the members of each subcommittee a person to serve as chairperson of that subcommittee. The chairpersons of the subcommittees shall serve four-year terms and shall be eligible for reappointment.

(d) A majority of the members of the authority shall constitute a quorum. No vacancy on the authority shall impair the right of the quorum to exercise all of the rights and perform all of the duties of the authority.

(e) A vacancy on the authority shall exist in the office of any member of the authority who is convicted of a felony or who enters a plea of nolo contendere thereto; who is convicted of a crime involving moral turpitude or who enters a plea of nolo contendere thereto; who is convicted of any act of misfeasance, malfeasance, or nonfeasance of such person's duties as a member of the authority; or who fails to attend three consecutive regular meetings of the authority without an excuse approved by a resolution of the authority.

(f) All meetings of the authority, regular or special, shall be open to the public.

(g) No member or employee of the authority shall have, directly or indirectly, any financial interest, profit, or benefit in any contract, work, or business of the authority nor in the sale, lease, or purchase of any property to or from the authority.

50-41-4.

The general purpose of the authority is declared to be that of executing and administering the reuse plan for the property formerly occupied by Central State Hospital; executing economic development conveyances for such property formerly occupied by Central State Hospital resulting from the closure or realignment of Central State Hospital so as to ameliorate the impact of such closure or realignment on the communities and residents of the City of Milledgeville and Baldwin County; extending and improving such projects; acquiring the necessary property therefor, both real and personal, with the right to contract for the use of or to lease or sell any or all of such facilities, including real property, to any persons, firms, or corporations, whether public or private, if in the sole judgment of the authority such use, lease, or sale supports the general purposes of the authority; and doing all things deemed by the authority necessary, convenient, and desirable for and incident to the efficient and proper development and operation of such type of undertakings.

50-41-5.

(a) The authority shall have the power:

(1) To have a seal and alter the same at its pleasure;

(2) To acquire by purchase, lease, or otherwise, including acquisition of land from the state government, and to hold, lease, and dispose of real and personal property of every kind and character for its corporate purpose and to plan, acquire, establish, develop, construct, enlarge, improve, maintain, equip, and lease all projects which shall come under the control of the authority under the provisions of this article or which it may acquire or plan to acquire; to regulate, protect, and police such projects and all related activities and facilities; to enter into any contracts, leases, or other charges for the use of property or services of the authority and collect and use the same as necessary to operate the projects under control of the authority; and to accomplish any of the purposes of this article and make any purchases or sales necessary for such purposes;

(3) To acquire in its own name by purchase, on such terms and conditions and in such manner as it may deem proper, real property, or rights or easements therein, or franchises necessary or convenient for its corporate purpose, and to use the same so long as its corporate existence shall continue, and to lease or make contracts with respect to the use of such property, or dispose of the same in any manner it deems to be to the best advantage of the authority;

(4) To appoint, select, and employ officers, agents, and employees, including real estate, environmental, engineering, architectural, and construction experts; fiscal agents; and attorneys, and to fix their respective compensations;

(5) To make contracts and leases and to execute all instruments necessary or convenient, including contracts for construction of projects and leases of projects or contracts with respect to the use of projects which it causes to be constructed, erected, or acquired. Any and all persons, firms, and corporations and any and all political subdivisions, departments, institutions, or agencies of the state and federal government are authorized to enter into contracts, leases, or agreements with the authority upon such terms and for such purposes as they deem advisable; and, without limiting the generality of the foregoing, authority is specifically granted to municipal corporations, counties, political subdivisions, and the authority relative to entering into contracts, lease agreements, or other undertakings authorized between the authority and private corporations, both inside and outside this state, and between the authority and public bodies, including counties and cities outside this state and the federal government;

(6) To construct, erect, acquire, own, repair, remodel, maintain, add to, extend, improve, equip, operate, and manage projects, the cost of the project to be paid in whole or in part from the proceeds of revenue bonds of the authority or from such proceeds and any grant or contribution from the United States of America or any agency or instrumentality thereof or from the State of Georgia or any agency or instrumentality thereof;

(7) To accept loans and grants of money or materials or property of any kind from the United States of America or any agency or instrumentality thereof upon such terms and conditions as the United States of America or such agency or instrumentality may require;

(8) To accept loans and grants of money or materials or property of any kind from the State of Georgia or any agency or instrumentality or political subdivision thereof upon such terms and conditions as the State of Georgia or such agency or instrumentality or political subdivision may require;

(9) To borrow money for any of its corporate purposes and to issue negotiable revenue bonds payable solely from funds pledged for the purpose and to provide for the payment of the same and for the rights of the holders thereof;

(10) To exercise any power usually possessed by private corporations performing similar functions, including the power to make short-term loans and approve, execute, and deliver appropriate evidence of such indebtedness, provided that no such power is in conflict with the Constitution or general laws of this state;

(11) To encourage and facilitate job training and housing rehabilitation programs for residents surrounding Central State Hospital; and

(12) To do all things necessary or convenient to carry out the powers expressly given in this article.

(b) The authority shall be assigned for administrative purposes to the authority as provided for in Code Section 50-4-3.

(c) The Attorney General shall provide legal services for the authority in the same manner provided for in Code Sections 45-15-13 through 45-15-16.

50-41-6.

The authority, or any authority or body which had or which may in the future succeed to the powers, duties, and liabilities vested in the authority created by this article, is authorized to provide by resolution for the issuance of negotiable revenue bonds of the authority for the purpose of paying all or any part of the cost of the project of any one or more projects. The authority shall comply with Article 3 of Chapter 82 of Title 36, the 'Revenue Bond Law,' when issuing bonds.

50-41-7.

(a) Each year the authority shall have made an independent audit and examination of the authority's financial records and transactions. Such audit shall be made in accordance with established national audit and accounting standards. Such audit shall be made on or before the one hundred-eightieth day following the end of the authority's fiscal year. Copies of such audit shall be available for public review and provided to the state auditor.

(b) Annual audit reports of the authority shall contain at least:

(1) Financial statements prepared in conformity with generally accepted national accounting principles, setting forth the financial condition and results of operation of each fund and activity of the authority; and

(2) The opinion of the performing auditor with respect to the financial statement in addition to an explanation of any qualification or disclaimers contained in the opinion. Such opinion shall also disclose, in accordance with generally accepted national auditing standards, any apparent or material violation of state law discovered during the audit.

(c) The authority shall forward to the state auditor written comments on the findings and recommendations in the report, including a plan for corrective action taken or planned and comments on the status of the corrective action taken on prior findings.

(d) The state auditor shall review the audit report and written comments submitted to the auditor's office to ensure that it conforms with generally accepted national auditing principles. After review, the state auditor shall submit to the authority a list of deficiencies to be corrected.

(e) Upon failure, refusal, or neglecting to have an annual audit made; a failure to file a copy of the audit report with the state auditor; or a failure to correct auditing deficiencies noted by the state auditor, the state auditor shall cause a prominent notice to be published in the legal organ of Baldwin County and in any other newspapers of general circulation within the City of Milledgeville. Such notice shall be a prominently displayed advertisement or news article and shall not be placed in the section of the newspaper where legal notices appear. Such notice shall be published twice and shall state that the authority has failed, refused, or neglected, as the case may be, to have an annual audit made, to file an audit report, or to correct auditing deficiencies, as the case may be, for the fiscal year or years in question. The notice shall further state that such failure, refusal, or neglect is a violation of law.

50-41-8.

It shall be the duty of the authority to prescribe rules and regulations for the operation of the project or projects constructed or acquired under the provisions of this article.

50-41-9.

It is found, determined, and declared that the creation of the authority and the carrying out of its corporate purpose is in all respects for the benefit of the people of this state; that the authority is an institution of purely public charity and will be performing an essential governmental function in the exercise of the power conferred upon it by this article; that this state covenants with the holders of the bonds; that the authority shall not be required to pay any taxes or assessments upon any of the property acquired or leased by it or under its jurisdiction, control, possession, or supervision or upon its activities in the operation or maintenance of the projects erected by it or any rates, fees, tolls, or other charges for the use of such projects or other income received by the authority; and that the bonds of the authority, their transfer, and the income therefrom shall at all times be exempt from taxation within this state. The exemption from taxation provided for in this Code section shall not extend to tenants or lessees of the authority and shall not include exemptions from sales and use taxes on property purchased by the authority or for use by the authority.

50-41-10.

This article shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing.

50-41-11.

Any action to protect or enforce any rights under this article shall be brought in the Superior Court of Baldwin County.

50-41-12.

The property of the authority shall not be subject to levy and sale under legal process.

50-41-13.

All funds received by the authority pursuant to this article, whether as revenue, rents, fees, charges, or other earnings or as grants, gifts, or other contributions, shall be deemed to be trust funds held and applied by the authority solely as provided in this article.

50-41-14.

This article shall be liberally construed to effect the purposes of this article.

50-41-15.

(a) Should the authority for any reason be dissolved, title to all property of any kind and nature, real and personal, held by the authority at the time of such dissolution shall be conveyed to the State of Georgia; or title to any such property may be conveyed prior to such dissolution in accordance with provisions which may be made therefor in any resolution or trust instrument relating to such property, subject to any liens, leases, or other encumbrances outstanding against or in respect to such property at the time of such conveyance.

(b) All powers, duties, assets, real and personal property, liabilities, and indebtedness of the Central State Hospital Local Redevelopment Authority created by an Act to create the Central State Hospital Local Redevelopment Authority, approved February 29, 2012 (Ga. L. 2012, p. 3837), as amended, are transferred to the authority. The authority shall be the successor to the Central State Hospital Local Redevelopment Authority in all contracts entered into by the Central State Hospital Local Redevelopment Authority which are in existence on the effective date of this Act and to all accounts of and debts owed to the Central State Hospital Local Redevelopment Authority that are outstanding on the effective date of this Act."

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.