HB1253: HB1253 Georgia Charter School Facilities Authority; establish

26 LC 49 2494 House Bill 1253 By: Representatives Carpenter of the 4th, Jones of the 47th, Dickey of the 134th, Williams of the 148th, Hilton of the 48th, and others A BILL TO BE ENTITLED AN ACT To amend Article 31B of Chapter 2 of Title 20 of the Official Code of Georgia Annotated,1 relating to charter school capital finance, so as to establish the Georgia Charter School2 Facilities Authority for the purpose of enabling charter schools to obtain revolving loan funds3 and other public financing assistance for purposes of construct ing, renovating, and4 rehabilitating educational facilities for such schools; to provide for definitions; to provide for5 the composition, duties, and powers of such authority; to amend Article 2 of Chapter 17 of6 Title 50 of the Official Code of Georgia Annotated, the "Georgi a State Financing and7 Investment Commission Act," so as to provide for the issuance of general obligation bonds8 by the Georgia State Financing and Investment Commission to pro vide for educational9 facilities for charter schools; to provide for and revise defin itions; to provide for related10 matters; to repeal conflicting laws; and for other purposes.11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12 SECTION 1.13 Article 31B of Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to14 charter school capital finance, is amended by designating Code Sections 20-2-209515 through 20-2-2095.5 as Part 1, by replacing the term "article" with the term "part" wherever16 H. B. 1253 - 1 - 26 LC 49 2494 the former term appears in any of such Code sections, and by adding a new part to read as17 follows:18 "Part 219 20-2-2095.20.20 As used in this part, the term:21 (1) 'Authority' means the Georgia Charter School Facilities Authority created in this part.22 (2) 'Charter school' shall have the same meaning as set forth in Code Section23 20-2-2095.1.24 (3) 'Cost of project' or 'cost of any project' means:25 (A) All costs of acquisition, by purchase or otherwise, constr uction, assembly,26 installation, modification, renovation, extension, or rehabilit ation incurred in27 connection with any project or any part of any project;28 (B) All costs of real property, fixtures, or personal property used in or in connection29 with or necessary for any project or for any facilities related thereto, including but not30 limited to, the costs of all land, interests in land, estates f or years, easements, rights,31 improvements, water rights, and connections for utility service s; the costs of fees,32 franchises, permits, approvals, licenses, and certificates; the costs of securing any such33 franchises, permits, approvals, licenses, or certificates; the costs of preparation of any34 application therefor; and the costs of all fixtures, machinery, equipment, furniture, and35 other property used in or in connection with or necessary for any project;36 (C) All financing charges and loan or loan guarantee fees and all interest on notes of37 the authority which accrue or are paid prior to and during the period of construction of38 a project and during such additional period as the authority may reasonably determine39 to be necessary to place such project in operation;40 H. B. 1253 - 2 - 26 LC 49 2494 (D) All costs of engineering, surveying, planning, environmental assessments, financial41 analyses, and architectural, legal, and accounting services and all expenses incurred by42 engineers, surveyors, planners, environmental scientists, fisca l analysts, architects,43 attorneys, accountants, and any other necessary technical personnel in connection with44 any project;45 (E) All expenses for inspection of any project;46 (F) All fees and all other costs and expenses incurred relativ e to the issuance of any47 notes for any project;48 (G) All fees of any type charged by the authority in connection with any project;49 (H) All expenses of or incidental to determining the feasibility or practicability of any50 project;51 (I) All costs of plans and specifications for any project;52 (J) All costs of title insurance and examinations of title with respect to any project;53 (K) Repayment of any loans for the advance payment of any part of any of the54 foregoing costs, including interest thereon and any other expenses of such loans;55 (L) Administrative expenses of the authority and such other ex penses as may be56 necessary or incidental to any project or the financing thereof or the placing of any57 project in operation; and58 (M) The establishment of a fund or funds as the authority may approve with respect to59 the financing and operation of any project and as may be authorized by any instrument60 or agreement pursuant to the provisions of which the issuance o f any notes of the61 authority may be authorized.62 Any cost, obligation, or expense incurred for any of the purpos es specified in this63 paragraph shall be a part of the cost of the project and may be paid or reimbursed as such64 out of the proceeds of notes issued by the authority.65 (4) 'Educational facilities' shall include buildings, fixtures, and equipment necessary for66 the effective and efficient operation of charter schools, which , without limiting the67 H. B. 1253 - 3 - 26 LC 49 2494 generality of the foregoing, shall include: classrooms; librari es; rooms and space for68 physical education; space for fine arts; restrooms; specialized laboratories; cafeterias;69 media centers; building equipment; building fixtures; furnishings; career, technical, and70 agricultural education labs and facilities to support industry credentialing; related exterior71 facilities; landscaping and paving; and similar items which the State Board of Education72 may determine necessary. The following facilities are specifically excluded: swimming73 pools, tracks, stadiums, and other facilities or portions of fa cilities used primarily for74 athletic competition.75 (5) 'Project' means the acquisition, construction, installation, modification, renovation,76 repair, extension, renewal, replacement, or rehabilitation of l and, interest in land,77 buildings, structures, facilities, or other improvements and the acquisition, installation,78 modification, renovation, repair, extension, renewal, replaceme nt, rehabilitation, or79 furnishing of fixtures, machinery, equipment, furniture, or other property of any nature80 whatsoever used on, in, or in connection with any such land, in terest in land, building,81 structure, facility, or other improvement, all for the essential public purpose of providing82 educational facilities.83 (6) 'Qualified charter school organization' shall have the sam e meaning as set forth in84 Code Section 20-2-2095.1.85 (7) 'Renovation' or 'modernization' or both refers to construction projects which consist86 of the installation or replacem ent of major building components including lighting,87 heating, air-conditioning, plumbing, roofing, electrical, electronic, or flooring systems;88 millwork; cabinet work and fixed equipment; energy retrofit pac kages; or room-size89 modifications within an existing facility, but excluding routine maintenance and repair90 items or operations.91 H. B. 1253 - 4 - 26 LC 49 2494 20-2-2095.21.92 (a) There is created a body corporate and politic to be known as the Georgia Charter93 School Facilities Authority which shall be deemed an instrument ality of the state and a94 public corporation; and by that name, style, and title such bod y may contract and be95 contracted with and bring and defend actions in all courts of this state. The authority shall96 consist of 15 members: the State School Superintendent, ex officio; the chairperson of the97 State Board of Education, ex officio; the state property officer, ex officio; the state auditor,98 ex officio; the executive director of the State Charter Schools Commission, ex officio; the99 director of the Office of Charter School Compliance, ex officio ; three members to be100 appointed by the Governor; three members to be appointed by the President of the Senate;101 and three members to be appointed by the Speaker of the House of Representatives. The102 Governor, the President of the Senate, and the Speaker of the H ouse of Representatives103 shall each appoint one member to serve until July 1, 2028, and two members to serve until104 July 1, 2030. Upon the expiration of each such initial terms, the terms of all succeeding105 members shall be for four years.106 (b) A majority of the members of the authority shall constitute a quorum. No vacancy on107 the authority shall impair the right of a majority of the appointed members from exercising108 all rights and performing all duties of the authority.109 (c) The members of the authority shall be accountable in all r espects as trustees. The110 authority shall keep suitable books and records of all actions and transactions and shall111 submit such books together with a statement of the authority's financial position to an112 independent auditing firm selected by the authority on or about the close of the state's fiscal113 year for the purpose of obtaining a certified audit of the authority's finances.114 (d) The authority shall make rules and regulations for its own government. The authority115 shall have perpetual existence. Any change in the name or comp osition of the authority116 shall in no way affect the vested rights of any person under th is part or impair the117 obligations of any contracts existing under this part.118 H. B. 1253 - 5 - 26 LC 49 2494 (e) The Attorney General shall provide legal services for the authority and in connection119 therewith Code Sections 45-15-13 through 45-15-16 shall be fully applicable.120 (f) The members of the commission shall not be compensated for their services on the121 commission but may be reimbursed for per diem and travel expenses in the same manner122 as provided for in Code Section 45-7-21.123 (g) The authority is assigned to the Department of Education for administrative purposes124 only.125 20-2-2095.22.126 (a) The corporate purpose and the general nature of the business of the authority shall be127 assistance in constructing, extending, rehabilitating, repairin g, replacing, and renewing128 educational facilities necessary for educational purposes or necessary or incidental to such129 purposes by providing loans and other forms of financial and te chnical assistance to130 qualified charter school organizations to finance any project or pay the cost of any project.131 (b) The authority shall have power:132 (1) To sue and be sued in all courts of this state, the origin al jurisdiction and venue of133 such actions being the Superior Court of Fulton County;134 (2) To have a seal and alter the same at its pleasure;135 (3) To adopt bylaws governing the conduct of business by the authority, the election and136 duties of officers of the authority, and other matters which th e authority determines to137 deal with in its bylaws;138 (4) To designate three or more of its number to constitute an executive committee who,139 to the extent provided in such resolution or in the bylaws of the authority, shall have and140 may exercise the powers of the authority in the management of the affairs and property141 of the authority and the exercise of its powers;142 (5) To appoint an executive director who shall be executive officer and administrative143 head of the authority. The executive director shall be appointed and serve at the pleasure144 H. B. 1253 - 6 - 26 LC 49 2494 of the authority. The executive director shall hire officers, agents, and employees,145 prescribe their duties and qualifications and fix their compens ation, and perform such146 other duties as may be prescribed by the authority. Such officers, agents, and employees147 shall serve at the pleasure of the executive director;148 (6) To make and execute contracts, lease agreements, and all other instruments necessary149 or convenient to exercise the powers of the authority or to further the public purpose for150 which the authority is created, such contracts, leases, or instruments to include contracts151 for construction, operation, management, or maintenance of projects and facilities owned152 by a charter school organization, a local government, the authority, or by the state or any153 state authority; and any and all local governments, departments, institutions, authorities,154 or agencies of the state are authorized to enter into contracts, leases, agreements, or other155 instruments with the authority upon such terms and to transfer real and personal property156 to the authority for such consideration and for such purposes a s the authority deems157 advisable;158 (7) To acquire by purchase, lease, or otherwise and to hold, lease, and dispose of real or159 personal property of every kind and character, or any interest therein, in furtherance of160 the public purpose of the authority;161 (8) To make loans to qualified charter school organizations to finance projects and to pay162 the cost of any project by qualified charter school organizatio ns and to adopt rules,163 regulations, and procedures for making such loans, including to fund a revolving loan164 fund;165 (9) To make loans to any qualified charter school organization for the cost or expense166 of any project or any part of the cost or expense of any projec t, which loans may be167 evidenced or secured by trust indentures, loan agreements, note s, mortgages, deeds to168 secure debt, trust deeds, security agreements, or assignments, on such terms and169 conditions as the authority shall determine to be reasonable in connection with such170 loans, including provision for the establishment and maintenance of reserve funds; and,171 H. B. 1253 - 7 - 26 LC 49 2494 in the exercise of powers granted by this part in connection with any project, the authority172 shall have the right and power to require the inclusion in any such trust indentures, loan173 agreement, note, mortgage, deed to secure debt, trust deed, sec urity agreement,174 assignment, or other instrument such provisions or requirements for guaranty of any175 obligations, insurance, construction, use, operation, maintenan ce, and financing of a176 project and such other terms and conditions as the authority ma y deem necessary or177 desirable;178 (10) To finance projects by loan, loan guarantee, lease, or otherwise, and to pay the cost179 of any project from any funds of the authority or from any cont ributions or loans by180 persons, corporations, partnerships, whether limited or general , or other entities, all of181 which the authority is authorized to receive, accept, and use;182 (11) To collect fees and charges in connection with its loans, loan guarantees,183 commitments, management servi ces, and servic ing including, but not limited to,184 reimbursements of costs of financing, as the authority shall determine to be reasonable185 and as shall be approved by the authority;186 (12) To lease to qualified charter school organizations any authority owned facilities or187 property or any state owned facilities or property which the authority is managing under188 contract with the state;189 (13) To provide advisory, technical, consultative, training, e ducational, and project190 assistance services to qualified charter school organizations a nd to enter into contracts191 with qualified charter school organizations to provide such ser vices. Qualified charter192 school organizations are authorized to enter into contracts wit h the authority for such193 services and to pay for such services as may be provided them;194 (14) To acquire or contract to acquire from any person, firm, corporation, local195 government, federal or state agency, or corporation by grant, p urchase, or otherwise,196 leaseholds, real or personal property, or any interest therein; and to sell, assign, exchange,197 transfer, convey, lease, mortgage, or otherwise dispose of or e ncumber the same; and198 H. B. 1253 - 8 - 26 LC 49 2494 qualified charter school organization is authorized to grant, s ell, or otherwise alienate199 leaseholds, real and personal property, or any interest therein to the authority;200 (15) To apply for and to accept any gifts or grants or loan guarantees or loans of funds201 or property or financial or other aid in any form from the fede ral government or any202 agency or instrumentality thereof, or from the state or any age ncy or instrumentality203 thereof, or from any other source for any or all of the purposes specified in this part and204 to comply, subject to the provisions of this part, with the terms and conditions thereof;205 (16) To contract with state agencies or any qualified charter school organization for the206 use by the authority of any property or facilities or services of the state or any such state207 qualified charter school organization or for the use by any sta te agency or qualified208 charter school organization of any facilities or services of th e authority and such state209 agencies and qualified charter school organizations are authori zed to enter into such210 contracts;211 (17) As security for repayment of any obligations of the autho rity, to pledge, lease,212 mortgage, convey, assign, hypothecate, or otherwise encumber an y property of the213 authority including, but not limited to, real property, fixtures, personal property, and other214 funds and to execute any lease, trust indenture, trust agreemen t, agreement for the sale215 of the authority's obligations, loan agreement, mortgage, deed to secure debt, trust deed,216 security agreement, assignment, or other agreement or instrument as may be necessary217 or desirable, in the judgment of the authority, to secure any s uch obligations, which218 instruments or agreements may provide for foreclosure or forced sale of any property of219 the authority upon default in any obligation of the authority, either in payment of220 principal, premium, if any, or interest or in the performance o f any term or condition221 contained in any such agreement or instrument;222 (18) To use income earned on any investment for such corporate purposes of the223 authority as the authority in its discretion shall determine;224 H. B. 1253 - 9 - 26 LC 49 2494 (19) To incorporate one or more nonprofit corporations as subsidiary corporations of the225 authority for the purpose of carrying out any of the powers of the authority and to226 accomplish any of the purposes of the authority. Any such subsidiary corporation shall227 be a nonprofit corporation, a public body corporate and politic, a political subdivision of228 the state, and an instrumentality of the state and shall exerci se essential governmental229 functions. Any subsidiary corporations created pursuant to this power shall be created230 pursuant to Chapter 3 of Title 14, the 'Georgia Nonprofit Corpo ration Code,' and the231 Secretary of State shall be a uthorized to accept such filings. Upon dissolution of any232 subsidiary corporation of the authority, any assets shall revert to the authority or to any233 successor to the authority or, failing such succession, to the State of Georgia. The234 authority shall not be liable for the debts or obligations of any subsidiary corporation or235 for the actions or omissions to act of any subsidiary corporati on unless the authority236 expressly so consents;237 (20) To cooperate and act in conjunction with educational organizations; with agencies238 of the federal government and this state and local government; with other states and their239 political subdivisions; and with joint agencies thereof, and su ch state agencies, local240 government, and joint agencies are authorized and empowered to cooperate and act in241 conjunction and to enter into contracts or agreements with the authority and qualified242 charter school organizations to achieve or further the policies of the state declared in this243 part;244 (21) To procure insurance against any loss in connection with its property and other245 assets or obligations or to establish cash reserves to enable it to act as self-insurer against246 any and all such losses;247 (22) To lend any of the securities of the type described in this subsection;248 (23) To transfer to the state any funds of the authority determined by the authority to be249 in excess of those needed for its corporate purposes;250 H. B. 1253 - 10 - 26 LC 49 2494 (24) To make loan commitments and loans to qualified charter school organizations for251 educational facilities projects;252 (25) To exercise any power granted by the laws of this state t o public or private253 corporations which is not in conflict with the public purpose of the authority;254 (26) To do all things necessary or convenient to carry out the powers conferred by this255 part; and256 (27) To promulgate and adopt rules and regulations to carry out the purposes of this part.257 (c) The authority shall not have the power of eminent domain.258 20-2-2095.23.259 (a) The authority may make loans to a qualified charter school organization to pay all or260 any part of the cost of:261 (1) A project, up to a maximum of the lesser of 20 percent of the project total or $2262 million, except as provided for in paragraph (2) of this subsection; and263 (2) A renovation or modernization project, up to a maximum of $200,000.00.264 (b) The authority shall not enter into any loan or loan commitment with a qualified charter265 school organization for a term that exceeds the earlier of the expiration date of such266 qualified charter school organization's current charter agreement with the State Board of267 Education or five years.268 (c) The authority and a qualified charter school organization may enter into such loan or269 other loan commitments as may be determined appropriate by the authority.270 (d) The authority may require as a condition of any loan to a qualified charter school271 organization that such qualified charter school organization shall perform any or all of the272 following:273 (1) Create and maintain a special fund or funds as additional security for the payment of274 any amounts becoming due under any agreement as shall be suffic ient to make such275 payment as the same shall become due and payable;276 H. B. 1253 - 11 - 26 LC 49 2494 (2) Create and maintain such other special funds as may be required by the authority; and277 (3) Such other acts, including the conveyance of real and personal property together with278 all right, title, or interest therein to the authority, as may be deemed necessary or desirable279 by the authority to secure the payment of the principal of and interest on notes or280 obligations and to provide for the remedies of the authority in the event of any default by281 such qualified charter school organization in such payment.282 (e) All qualified charter school organizations are authorized to perform such acts, take283 such action, adopt such proceedings, and make and carry out suc h contracts with the284 authority as may be contemplated by this part.285 (f) In connection with the making of any loan authorized by this part, the authority may286 fix and collect such fees and charges, including but not limite d to, the reimbursement of287 all costs of financing by the authority, as the authority shall determine to be reasonable.288 20-2-2095.24.289 (a) For the purposes of this Code section, the term 'lease agreement' means and includes290 a lease, operating lease rental agreement, usufruct, sale and lease back, or any other lease291 agreement having a term of not more than 50 years and concerning real, personal, or mixed292 property, any right, title, or interest therein by and between the state, the authority, a293 qualified charter school organization, or any combination thereof.294 (b) A qualified charter school organization may enter into a l ease agreement for the295 provision of educational facilities owned by the authority upon such terms and conditions296 as the authority shall determine to be reasonable including, bu t not limited to, the297 reimbursement of all costs of construction and financing and claims arising therefrom.298 (c) No lease agreement shall be deemed to be a contract subject to any law requiring that299 a contract shall be let only after receipt of competitive bids.300 (d) Any lease agreement may provide for the construction of an educational facility by the301 qualified charter school organization as agent for the authority. In such event, all contracts302 H. B. 1253 - 12 - 26 LC 49 2494 for such construction shall be let by such qualified charter sc hool organization in303 accordance with the provisions of law otherwise applicable to the letting of such contracts304 by such qualified charter school organization and with the prov isions of state law305 pertaining to prevailing wages, labor standards, and working ho urs. Any such lease306 agreement may contain provisions by which such qualified charte r school organization307 shall indemnify the authority against any and all damages resulting from acts or omissions308 to act on the part of such qualified charter school organizatio n or its officers, agents, or309 employees in constructing such facility or facilities, in letting any contracts in connection310 therewith, or in operating and maintaining the same.311 (e) Any lease agreement directly between the state or authorit y and a qualified charter312 school organization may contain provisions requiring the qualif ied charter school313 organization to perform any or all of the following:314 (1) Create and maintain a special fund or funds as additional security for the payment of315 any amounts becoming due under any agreement as shall be suffic ient to make such316 payment as the same shall become due and payable;317 (2) Create and maintain such other special funds as may be required by the authority; and318 (3) Such other acts and take such other action as may be deemed necessary and desirable319 by the authority to secure the complete and punctual performanc e by such qualified320 charter school organization of such lease agreements and to provide for the remedies of321 the authority in the event of a default by such qualified chart er school organization in322 such payment.323 20-2-2095.25.324 Neither the members of the authority nor any officer or employee of the authority acting325 on behalf thereof, while acting within the scope of his or her authority, shall be subject to326 any liability resulting from:327 H. B. 1253 - 13 - 26 LC 49 2494 (1) The construction, ownership, maintenance, or operation of any project financed with328 the assistance of the authority; or329 (2) Carrying out any of the powers expressly given in this part.330 20-2-2095.26.331 No notice, proceeding, or publication except those required in this part shall be necessary332 to the performance of any act authorized in this part; nor shall any such act be subject to333 referendum.334 20-2-2095.27.335 No obligations of and no indebtedness incurred by the authority shall constitute an336 indebtedness or obligation or a pledge of the faith and credit of the State of Georgia or of337 its agencies; nor shall any act of the authority in any manner constitute or result in the338 creation of an indebtedness of the state or its agencies or a cause of action against the state339 or its agencies.340 20-2-2095.28.341 It is found, determined, and declared that the creation of this authority and the carrying out342 of its corporate purposes is in all respects for the benefit of the people of the state and that343 the authority is an institution of purely public charity and will be performing an essential344 governmental function in the exercise of the power conferred upon it by this part. For such345 reasons, the state covenants with the holders from time to time of obligations issued under346 this part that the authority shall not be required to pay any taxes or assessments imposed347 by the state or any of its counties, municipal corporations, political subdivisions, or taxing348 districts upon any property acquired by the authority or under its jurisdiction, control,349 possession, or supervision or leased by it to others, or upon its activities in the operation350 or maintenance of any such property or on any income derived by the authority in the form351 H. B. 1253 - 14 - 26 LC 49 2494 of fees, recording fees, rentals, charges, purchase price, installments, or otherwise, and that352 the notes of the authority, their transfer, and the income ther efrom shall at all times be353 exempt from taxation within the state. The tax exemption provided in this part shall not354 include any exemption from sales and use tax on property purchased by the authority or for355 use by the authority.356 20-2-2095.29.357 The authority shall have all rights afforded the state by virtu e of the Constitution of the358 United States, and nothing in this part shall be construed to remove any such rights.359 20-2-2095.30.360 This part, being for the welfare of this state and its inhabitants, shall be liberally construed361 to effect the purposes specified in this part.362 20-2-2095.31.363 (a) In the event of a failure of any qualified charter school organization to collect and remit364 in full all amounts due to the authority and all amounts due to others which involve the365 authority, on the date such amounts are due under the terms of any note of the qualified366 charter school organization, it shall be the duty of the authority to notify the state treasurer367 who shall withhold all funds of the state and all funds adminis tered by the state and its368 agencies, boards, and instrumentalities allotted to such qualif ied charter school369 organization until such qualified charter school organization has collected and remitted in370 full all sums due and cured or remedied all defaults on any such note.371 (b) Nothing contained in this Code section shall mandate the w ithholding of funds372 allocated to a qualified charter school organization which would violate contracts to which373 the state is a party, the requirements of federal law imposed on the state, or judgments of374 any court binding the state."375 H. B. 1253 - 15 - 26 LC 49 2494 SECTION 2.376 Article 2 of Chapter 17 of Title 50 of the Official Code of Georgia Annotated, the "Georgia377 State Financing and Investment Commission Act," is amended in C ode Section 50-17-21,378 relating to definitions, by revising paragraph (5) and adding n ew paragraphs to read as379 follows:380 "(0.1) 'Charter school' shall have the same meaning as set fort h in Code Section381 20-2-2095.1."382 "(5) 'General obligation debt' means obligations of this state issued pursuant to this article383 to acquire, construct, develop, extend, enlarge, or improve lan d, waters, property,384 highways, buildings, structures, equipment, or facilities of th e state, its agencies,385 departments, institutions, and those state authorities which we re created and activated386 prior to the amendment to Article VII, Section VI, Paragraph I( a) of the Constitution387 of 1945, adopted November 8, 1960, for which the full faith, credit, and taxing power of388 the state are pledged for the payment thereof. 'General obligation debt' Such term also389 means obligations of this state issued to provide educational f acilities for county and390 independent school systems, to provide educational facilities for charter schools, and to391 provide public library facilities for county and independent sc hool systems, counties,392 municipalities, and boards of trustees of public libraries or b oards of trustees of public393 library systems. 'General obligation debt' Such term further means debt incurred to make394 loans to counties, municipal corporations, political subdivisio ns, local authorities, and395 other local governmental entities for water or sewerage facilities or systems."396 "(7.1) 'Qualified charter school organization' shall have the same meaning as set forth in397 Code Section 20-2-2095.1."398 SECTION 3.399 Said article is further amended in Code Section 50-17-22, relating to the State Financing and400 Investment Commission, by revising subsection (a) as follows:401 H. B. 1253 - 16 - 26 LC 49 2494 "(a) Responsibilities. Subject to the limitations contained in this article, the commission402 shall be responsible for the issuance of all public debt incurred hereunder, for the proper403 application of the proceeds of such debt to the purposes for wh ich it is incurred, for the404 proper application of an appropriation to the commission for capital outlay to the purpose405 for which it is appropriated, and for the application and admin istration of this article;406 provided, however, that the proceeds of guaranteed revenue obligations shall be paid to the407 issuer thereof, and such proceeds and the application thereof shall be the responsibility of408 the issuer. The commission shall also be responsible for the p roper disbursement of an409 appropriation to it for public school capital outlay, including charter school capital outlay,410 and the commission and the State Board of Education will be concurrently responsible for411 its proper application. The commission shall be responsible for the issuance of guaranteed412 revenue debt, except that bonds themselves evidencing such debt shall be in the name of413 the instrumentality of this state issuing the same and shall be issued and executed in414 accordance with the laws relative to such instrumentality and the applicable provisions of415 this article."416 SECTION 4.417 Said article is further amended in Code Section 50-17-24, relating to authority to incur public418 debt, purposes, and limitations, by revising paragraph (3) of subsection (b) as follows:419 "(3) Public debt for public purposes may be either general obligation debt or guaranteed420 revenue debt. General obligation debt may be incurred by issuing obligations to acquire,421 construct, develop, extend, enlarge, or improve land, waters, p roperty, highways,422 buildings, structures, equipment, or facilities of the state, i ts agencies, departments,423 institutions, and those state authorities which were created an d activated prior to the424 amendment adopted November 8, 1960, to Article VII, Section VI, Paragraph I(a) of the425 Constitution of 1945. General obligation debt may also be incu rred to provide426 educational facilities for county and independent school systems and for charter schools427 H. B. 1253 - 17 - 26 LC 49 2494 and to provide public library facilities for county and indepen dent school systems,428 counties, municipalities, and boards of trustees of public libr aries or boards of trustees429 of public library systems. General obligation debt may also be incurred in order to make430 loans to counties, municipal co rporations, political subdivisions, local authorities, and431 other local governmental entities for water or sewerage facilities or systems. It shall not432 be necessary for the state or a state authority to hold title to or otherwise be the owner of433 such facilities or systems. General obligation debt for these purposes may be authorized434 and incurred for administration and disbursement by a state aut hority created and435 activated before, on, or after November 8, 1960. Guaranteed re venue debt may be436 incurred by guaranteeing the payment of revenue obligations issued by an instrumentality437 of the state if such revenue obligations are issued to finance toll bridges, toll roads, or any438 other land public transportation facilities or systems, or wate r or sewage treatment439 facilities or systems, or to make or purchase, or lend or depos it against the security of,440 loans to citizens of the state for educational purposes; provided, however, that in no event441 shall general obligation debt or guaranteed revenue debt be incurred for water or sewage442 treatment facilities or systems for counties or municipalities unless such facilities are443 financed in whole or in part through an instrumentality of the state created by the General444 Assembly for the purpose of assisting the state, counties, or m unicipalities in the445 financing of water or sewage treatment facilities or systems for the benefit of the citizens446 of Georgia. General obligation debt or guaranteed revenue debt may be incurred to fund447 or refund any such debt or to fund or refund any obligations issued upon the security of448 contracts to which the second paragraph of Article IX, Section VI, Paragraph I(a) of the449 Constitution of Georgia of 1976 is applicable."450 H. B. 1253 - 18 - 26 LC 49 2494 SECTION 5.451 Said article is further amended in Code Section 50-17-27, relat ing to application and452 investment of public debt proceeds by commission and by the Env ironmental Finance453 Authority, by revising subsection (b) as follows:454 "(b) Proceeds received from the sale of bonds evidencing general obligation debt shall be455 held in trust by the commission and disbursed promptly by the commission in accordance456 with the original purpose set forth in the authorization of the General Assembly and in457 accordance with rules and regulations established by the commission. Bond proceeds and458 other proceeds held by the commission shall be as fully invested as is practical, consistent459 with the proper application of such proceeds for the purposes intended. Investments shall460 be limited to general obligations of the United States or of subsidiary corporations of the461 United States government fully guaranteed by such government, or to obligations issued462 by the Federal Land Bank, Federal Home Loan Bank, Federal Intermediate Credit Bank,463 Bank for Cooperatives, Federal Farm Credit Banks regulated by t he Farm Credit464 Administration, Federal Home Loan Mortgage Corporation, Federal National Mortgage465 Association, or to tax exempt obligations issued by any state, county, municipal466 corporation, district, or political subdivision, or civil division or public instrumentality of467 any such government or unit of such government, or to prime bankers' acceptances, or to468 the units of any unit investment trusts the assets of which are exclusively invested in469 obligations of the type described in this subsection, or to the shares of any mutual fund the470 investments of which are limited to securities of the type described in this subsection and471 distributions from which are treated for federal income tax purposes in the same manner472 as the interest on said obligations, provided that at the time of investment such obligations473 or the obligations held by any such unit investment trust or th e obligations held or to be474 acquired by any such mutual fund are limited to obligations which are rated within one of475 the top two rating categories of any nationally recognized rati ng service or any rating476 service recognized by the commissioner of banking and finance, and no others, or to477 H. B. 1253 - 19 - 26 LC 49 2494 securities lending transactions involving securities of the type described in this subsection. 478 Income earned on any such investments or otherwise earned by the commission shall be479 retained by the commission and used to purchase and retire any public debt or any bonds480 or obligations issued by any public agency, public corporation, or authority which are481 secured by a contract to which the second paragraph of Article IX, Section VI,482 Paragraph I(a) of the Constitution of Georgia of 1976 is applicable and may be used to pay483 operating expenses of the commission. However, in order to pro vide for contingencies,484 efficiency, and flexibility, the commission may agree by contract or grant agreement with485 county and independent school systems and with qualified charter school organizations that486 income earned during grant administration on a direct appropriation of state funds to the487 commission for public school capital outlay will be applied to the capital outlay purposes488 of the appropriation. Otherwise, the interest on direct approp riations to the commission489 shall be deposited into the treasury."490 SECTION 6.491 All laws and parts of laws in conflict with this Act are repealed.492 H. B. 1253 - 20 -