Constitution of the State of Georgia

Article VII. TAXATION AND FINANCE · Article VII. TAXATION AND FINANCE · Section IV. STATE DEBT

Art. VII, Sec. IV, Para. IV. Certain contracts prohibited.

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

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The state, and all state institutions, departments and agencies of the state are prohibited from entering into any contract, except contracts pertaining to guaranteed revenue debt, with any public agency, public corporation, authority, or similar entity if such contract is intended to constitute security for bonds or other obligations issued by any such public agency, public corporation, or authority and, in the event any contract between the state, or any state institution, department or agency of the state and any public agency, public corporation, authority or similar entity, or any revenues from any such contract, is pledged or assigned as security for the repayment of bonds or other obligations, then and in either such event, the appropriation or expenditure of any funds of the state for the payment of obligations under any such contract shall likewise be prohibited.

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

Other notes

1976 Constitution.: Art. III, Sec. X, Para. V; Art. VII, Sec. III, Para. I.
Garbage collection contract valid.: — There was no merit in a resident’s arguments that the provision in a contract in which a county agreed to reimburse a private enterprise for a percentage of uncollected fees for garbage collection services prior to the county’s recovery of those fees from residents by means provided by O.C.G.A. § 12-8-39.3 violated Ga. Const. 1983,Art. VII, Sec. IV, Para. IV, prohibiting the state from entering contracts with any public agency, public corporation, authority, or similar entity as security for bonds or other obligations. Strykr v. Long County Bd. of Comm’rs, 277 Ga. 624, 593 S.E.2d 348 (2004).
ALR.: Right of creditor of public body to full or pro rata payment when fund out of which obligation is payable is insufficient to pay all like obligations of equal dignity, 90 ALR 717; 171 ALR 1033. Bonds issued by state officer or board payable solely out of proceeds of obligations of political subdivisions pledged as security as within constitutional or statutory provisions which impose a limit on state indebtedness or require consent of electors, 100 ALR 1114.

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from 2ga-const-(v2)-2016-pdf.pdf, Volume V2, 2016 edition, pages 1245 to 1246; merge action: carried; file SHA-256 1b27199d8655.