HB1523: HB1523 Sumter County Public Facilities Authority; create

26 LC 47 4164 House Bill 1523 By: Representatives Cheokas of the 151st and Stinson of the 150th A BILL TO BE ENTITLED AN ACT An Act to create the Sumter County Public Facilities Authority and to provide for the1 appointment of members of the authority; to confer powers upon the authority; to authorize2 and provide for the issuance of revenue bonds; to provide that credit is not pledged; to3 provide for security, validation, and protection of revenue bo nds; to provide bondholder4 remedies; to fix and provide the venue and jurisdiction; to pro vide for proceeds as trust5 funds; to provide for tort immunity; to provide for the tax sta tues of property and revenue6 bonds of the authority; to provide for reversion of assets; to provide for construction and7 severability; to provide a short title; to provide for definitions; to provide for related matters;8 to repeal conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Short Title.12 This Act shall be known and may be cited as the "Sumter County Public Facilities Authority13 Act."14 H. B. 1523 - 1 - 26 LC 47 4164 SECTION 2.15 Sumter County Public Facilities Authority.16 (a) There is hereby created a public body corporate and politic to be known as the "Sumter17 County Public Facilities Authority," which shall be deemed to be a political subdivision of18 the state and a public corporation, and by that name, style and title such body may contract19 and be contracted with, sue and be sued, implead and be impleaded and complain and defend20 in all courts of law and equity. The authority shall have perpetual existence.21 (b) The authority shall consist of five members appointed by the Sumter County Board of22 Commissioners. The members of the board of commissioners may be appointed as members23 of the authority. With respect to the initial appointments, two members shall be appointed24 for a term of three years, two members shall be appointed for a term of two years, and one25 member shall be appointed for a term of one year. Thereafter, all appointments shall be26 made for terms of three years and until successors are appointed and qualified. Immediately27 after such appointments the members of the authority shall ente r upon their duties. To be28 eligible for appointment as a member of the authority, a person shall be at least 21 years of29 age, shall be a resident of the county for at least two years p rior to the date of his or her30 appointment, and shall not have been convicted of a felony. Any member of the authority31 may be selected and appointed to succeed himself or herself.32 (c) The members shall not be compensated for their services; provided, however, that such33 members shall be reimbursed for their actual expenses necessari ly incurred in the34 performance of their duties.35 (d) The members of the authority shall elect one of their number as chairperson and another36 as vice chairperson. The members of the authority shall also elect a secretary, who need not37 be a member of the authority, and may also elect a treasurer, who need not be a member of38 the authority. The secretary may also serve as treasurer. If the secretary and treasurer are39 H. B. 1523 - 2 - 26 LC 47 4164 not members of the authority, such officers shall have no votin g rights. Each such officer40 shall serve for a period of one year or until his or her successor is duly elected and qualified.41 (e) Three members of the authority shall constitute a quorum. No vacancy on the authority42 shall impair the right of the quorum to exercise all of the rights and perform all of the duties43 of the authority.44 SECTION 3.45 Definitions.46 As used in this Act, the term:47 (1) "Authority" means the Sumter County Public Facilities Authority created by this Act.48 (2) "Costs of the project" means and embraces the cost of cons truction; the cost of all49 lands, properties, rights, easements and franchises acquired; the cost of all machinery and50 equipment; financing charges; interest prior to and during construction and for six months51 after completion of construction; the cost of engineering, arch itectural, fiscal agents,52 accounting, legal, plans and specifications and expenses necess ary or incidental to53 determining the feasibility or practicability of the project; administrative expenses; working54 capital; and all other costs necessary to acquire, construct, add to, extend, improve, equip,55 operate, maintain or finance the project.56 (3) "County" means Sumter County, Georgia.57 (4) "Project" means all buildings, facilities and equipment necessary or convenient for the58 efficient operation of the county or any department, agency division or commission thereof;59 the Sumter County School System; any municipal corporation within the county; and any60 "undertaking" permitted by the Revenue Bond Law.61 (5) "Revenue Bond Law" means Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the62 "Revenue Bond Law," or any other similar law hereinafter enacted.63 (6) "Revenue bonds" means revenue bonds authorized to be issued pursuant to this Act.64 H. B. 1523 - 3 - 26 LC 47 4164 (7) "Self-liquidating" means any project which the revenues and earnings to be derived by65 the authority therefrom, including, but not limited to, any con tractual payments with66 governmental or private entities, and all properties used, leas ed, and sold in connection67 therewith, together with any grants and any other available funds, will be sufficient to pay68 the costs of operating, maintaining and repairing the project and to pay the principal and69 interest on the revenue bonds or other obligations which may be issued for the purpose of70 paying the costs of the project.71 (8) "State" means the State of Georgia.72 SECTION 4.73 Powers.74 The authority shall have the power:75 (1) To have a seal and alter the same at its pleasure;76 (2) To acquire by purchase, lease, gift, condemnation, or otherwise, and to hold, operate,77 maintain, lease, and dispose of real and personal property of every kind and character for78 its corporate purposes;79 (3) To acquire, construct, add to, extend, improve, equip, ope rate, maintain, lease and80 dispose of projects;81 (4) To execute contracts, leases, installment sale agreements and other agreements and82 instruments necessary or convenient in connection with the acqu isition, construction,83 addition, extension, improvement, equipping, operation, mainten ance, disposition or84 financing of a project;85 (5) To appoint, select and employ officers, agents and employe es, including, but not86 limited to, engineering architectural and construction experts, fiscal agents and attorneys,87 and fix their respective compensation;88 H. B. 1523 - 4 - 26 LC 47 4164 (6) To pay the costs of the project with the proceeds of reven ue bonds, notes or other89 forms of obligations issued by the authority or from any grant or contribution from the90 United States of America or any agency or instrumentality thereof or from the state or any91 agency, instrumentality, municipality or political subdivision thereof or from any other92 source whatsoever;93 (7) To pledge to the payment of revenue bonds, notes and other forms of obligations issued94 by the authority any and all revenues and properties of the aut hority, both real and95 personal;96 (8) To accept loans or grants of money or materials or propert y of any kind from the97 United States of America or any agency or instrumentality there of, upon such terms and98 conditions as the United States of America or such agency or instrumentality may require;99 (9) To accept loans or grants of money or materials or property of any kind from the state100 or any agency, instrumentality, municipality or political subdi vision thereof, upon such101 terms and conditions as the state or such agency, instrumentality, municipality or political102 subdivision may require;103 (10) To borrow money for any of its corporate purposes and to issue or execute revenue104 bonds, notes and other forms of obligations, deeds to secure debt, security agreements and105 such other instruments as may be necessary or convenient to evi dence and secure such106 borrowing;107 (11) To adopt, alter or repeal its own bylaws, rules and regulations governing the manner108 in which its business is transacted;109 (12) To prescribe rules, regulations, service policies and procedures for the operation of110 any project;111 (13) To exercise any power usually possessed by private corporations performing similar112 functions; and113 (14) To do all things necessary or convenient to carry out the powers expressly given in114 this Act.115 H. B. 1523 - 5 - 26 LC 47 4164 SECTION 5.116 Revenue Bonds.117 The authority shall have power and is hereby authorized to prov ide by resolution for the118 issuance of revenue bonds for the purpose of paying all or any part of the costs of the project119 and for the purpose of refunding revenue bonds or other obligations previously issued. The120 principal of and interest on such revenue bonds shall be payable solely from the revenues and121 properties pledged to the payment of such revenue bonds. The revenue bonds issued by the122 authority shall contain such terms as the authority shall determine are in the best interest of123 the authority; provided, however, no revenue bonds shall have a maturity exceeding 40 years.124 SECTION 6.125 Same; Signatures; Seal.126 All such revenue bonds shall bear the manual or facsimile signa ture of the chairperson or127 vice chairperson of the authority and the attesting manual or f acsimile signature of the128 secretary or secretary-treasurer of the authority, and the official seal of the authority shall be129 impressed or imprinted thereon. Any revenue bonds may bear the manual or facsimile130 signature of such persons as at the actual time of the execution of such revenue bonds shall131 be duly authorized or hold the proper office, although at the date of issuance of such revenue132 bonds such person may not have been so authorized or shall not have held such office. In133 the event any officer whose signature shall appear on any revenue bond shall cease to be such134 officer before the delivery of such revenue bond, such signature shall nevertheless be valid135 and sufficient for all purposes, the same as if that person had remained in office until such136 delivery.137 H. B. 1523 - 6 - 26 LC 47 4164 SECTION 7.138 Same; Negotiability; Exemption from Taxation.139 All revenue bonds shall have and are hereby declared to have all the qualities and incidents140 of negotiable instruments under the laws of the state. As prov ided by general law, all141 revenue bonds, their transfer and the income therefrom shall be exempt from all taxation142 within the state.143 SECTION 8.144 Same; Conditions Precedent to Issuance.145 The authority shall adopt a resolution authorizing the issuance of the revenue bonds. In the146 resolution, the authority shall determine that the project fina nced or refinanced with the147 proceeds of the revenue bonds is self-liquidating. Revenue bonds may be issued without any148 other proceedings or the happening of any other conditions or t hings other than those149 proceedings, conditions and things which are specified or requi red by this Act. Any150 resolution providing for the issuance of revenue bonds under the provisions of this Act shall151 become effective immediately upon its passage and need not be published or posted, and any152 such resolution may be passed at any regular or special or adjourned meeting of the authority.153 SECTION 9.154 Same; Credit not Pledged.155 Revenue bonds shall not be deemed to constitute a debt of the s tate or any political156 subdivision or municipal corporation of the state nor a pledge of the faith and credit of the157 state or any political subdivision or municipal corporation of the state. Revenue bonds shall158 be payable solely from the revenues and properties pledged to the payment of such revenue159 H. B. 1523 - 7 - 26 LC 47 4164 bonds. The issuance of revenue bonds shall not directly, indirectly or contingently obligate160 the state or any political subdivision or municipal corporation of the state to levy or to pledge161 any form of taxation whatsoever for the payment of such revenue bonds or to make any162 appropriation for their payment. All revenue bonds shall conta in recitals on their face163 covering substantially the foregoing provisions of this section . Notwithstanding the164 foregoing provisions, this Act shall not affect the ability of the authority and a political165 subdivision or municipal corporation of the state from entering into an intergovernmental166 contract pursuant to which the political subdivision or municipal corporation agrees to pay167 amounts sufficient to pay operating charges and other costs of the authority or any project168 including, without limitation, the principal of and interest on revenue bonds, in consideration169 for services or facilities of the authority.170 SECTION 10.171 Same; Trust Indenture as Security.172 In the discretion of the authority, any issuance of revenue bonds may be secured by a trust173 indenture by and between the authority and a corporate trustee, which may be any trust174 company or bank having the powers of a trust company within or without the state. Such175 trust indenture may contain such provisions for protecting and enforcing the rights and176 remedies of the bondholders as may be reasonable and proper and not in violation of law,177 including covenants setting forth the duties of the authority in relation to the acquisition and178 construction of the project, the maintenance, operation, repair and insuring of the project, and179 the custody, safeguarding and application of all moneys.180 H. B. 1523 - 8 - 26 LC 47 4164 SECTION 11.181 Same; Remedies of Bondholders.182 Any holder of revenue bonds and the trustee under the trust indenture, if any, except to the183 extent the rights herein given may be restricted by resolution passed before the issuance of184 the revenue bonds or by the trust indenture, may, either at law or in equity, by suit, action,185 mandamus or other proceedings, protect and enforce any and all rights it may have under the186 laws of the state, including specifically, but without limitation, the Revenue Bond Law, or187 granted hereunder or under such resolution or trust indenture, and may enforce and compel188 performance of all duties required by this Act or by such resolution or trust indenture to be189 performed by the authority or any officer thereof, including th e fixing, charging and190 collecting of revenues, fees, tolls, fines and other charges fo r the use of the facilities and191 services furnished.192 SECTION 12.193 Same; Validation.194 Revenue bonds and the security therefor shall be confirmed and validated in accordance with195 the procedure of the Revenue Bond Law. The petition for validation shall also make party196 defendant to such action any political subdivision or municipal corporation of the state that197 has contracted with the authority for services or facilities re lating to the project for which198 revenue bonds are to be issued and sought to be validated, and such defendant shall be199 required to show cause, if any exists, why such contract or contracts shall not be adjudicated200 as a part of the basis for the security for the payment of any such revenue bonds. The201 revenue bonds when validated, and the judgment of validation shall be final and conclusive202 with respect to such revenue bonds and the security for the pay ment thereof and interest203 thereon and against the authority and all other defendants.204 H. B. 1523 - 9 - 26 LC 47 4164 SECTION 13.205 Same; Interest of Bondholders Protected.206 While any of the revenue bonds issued by the authority remain o utstanding, the powers,207 duties or existence of the authority or its officers, employees or agents, shall not be208 diminished or impaired in any manner that will affect adversely the interests and rights of the209 holders of such revenue bonds, and no other entity, department, agency or authority will be210 created which will compete with the authority to such an extent as to affect adversely the211 interest and rights of the holders of such revenue bonds. The provisions of this Act shall be212 for the benefit of the authority and the holders of any such re venue bonds, and upon the213 issuance of such revenue bonds under the provisions hereof, shall constitute a contract with214 the holders of such revenue bonds.215 SECTION 14.216 Venue and Jurisdiction.217 Any action to protect or enforce any rights under the provision s of this Act or any suit or218 action against such authority shall be brought in the Superior Court of Sumter County,219 Georgia, and any action pertaining to validation of any revenue bonds issued under the220 provisions of this Act shall likewise be brought in such court, which shall have exclusive,221 original jurisdiction of such actions.222 H. B. 1523 - 10 - 26 LC 47 4164 SECTION 15.223 Moneys Received Considered Trust Funds.224 All moneys received pursuant to the authority of this Act, whether as proceeds from the sale225 of revenue bonds, as grants or other contributions, or as revenue, income, fees and earnings,226 shall be deemed to be trust funds to be held and applied solely as provided in this Act.227 SECTION 16.228 Purpose of the Authority; Scope of Operations.229 Without limiting the generality of any provision of this Act, t he general purpose of the230 authority is declared to be that of providing public buildings, facilities, equipment and231 services for the citizens in the county. The scope of operatio ns of the authority shall be232 limited to the county.233 SECTION 17.234 Tort Immunity.235 To the extent permitted by law, the authority shall have the same immunity and exemption236 from liability for torts and negligence as the county. The officers, agents and employees of237 the authority when in the performance of the work of the author ity shall have the same238 immunity and exemption from liability for torts and negligence as the officers, agents and239 employees of the county when in the performance of their public duties or work of the240 county.241 H. B. 1523 - 11 - 26 LC 47 4164 SECTION 18.242 Property Acquired for Public Purpose.243 The exercise of the powers conferred upon the authority under t his Act shall constitute an244 essential governmental function for a public purpose, and the p roperty it acquires shall be245 deemed to be public property. To the maximum extent permitted by laws of this state, the246 authority shall not be required to pay taxes or assessments upon any of its real or personal247 property and all revenue bonds, notes and other forms of obligations issued by the authority. 248 Nothing provided in this section shall include an exemption fro m sales and use tax on249 property purchased by or for the use of the authority.250 SECTION 19.251 Reversion of Assets Upon Dissolution.252 Upon the dissolution of the authority, all assets owned by the authority shall become property253 of the county subject to any property rights vested in other parties.254 SECTION 20.255 Effect on Other Governments.256 This Act shall not and does not in any way take from any political subdivision or municipal257 corporation of the state the authority to own, operate and maintain public facilities or to issue258 revenue bonds as provided by the Revenue Bond Law.259 H. B. 1523 - 12 - 26 LC 47 4164 SECTION 21.260 Liberal Construction of Act.261 This Act being for the welfare of various political subdivisions and municipal corporations262 of the state and its inhabitants and shall be liberally construed to effect the purposes hereof.263 SECTION 22.264 Severability; Effect of Partial Invalidity of Act.265 The provisions of this Act are severable, and if any of its pro visions shall be held266 unconstitutional by any court of competent jurisdiction, the decision of such court shall not267 affect or impair any of the remaining provisions.268 SECTION 23.269 Repealer.270 All laws and parts of laws in conflict with this Act are repealed.271 H. B. 1523 - 13 -