23 LC 46 0611/AP
H. B. 750
- 1 -
House Bill 750 (AS PASSED HOUSE AND SENATE)
By: Representative Wiedower of the 121
st
A BILL TO BE ENTITLED
AN ACT
To create the City of Watkinsville Public Facilities Authority; to confer powers and impose
1
duties on the authority; to provide for the membership and the appointment of members of2
the authority and their terms of office, qualifications, duties, powers, and compensation; to3
provide for vacancies, organization, meetings, and expenses; to provide for definitions; to4
provide for the issuance and sale of revenue bonds and other obligations and their5
negotiability, sale, and use of proceeds from such sales; to provide for conditions for issuance6
of such obligations; to prohibit the pledge of credit for the payment of bonds; to provide for7
trust indentures; to provide for payment of bond proceeds; to provide for bondholder8
remedies and protection; to provide for refunding bonds; to provide for bond validation; to9
provide for venue and jurisdiction; to provide for trust funds; to provide for the authority's10
purpose; to provide for charges; to provide for rules and regulations; to provide for tort11
immunity; to provide for tax exemptions and exemptions from levy and sale; to provide for12
supplemental powers; to provide for effect on other governments; to provide for liberal13
construction; to provide for severability; to provide an effective date; to provide for a short14
title; to provide for related matters; to repeal conflicting laws; and for other purposes.15
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:16 23 LC 46 0611/AP
H. B. 750
- 2 -
SECTION 1.
17
Short title.18
This Act shall be known and may be cited as the "City of Watkinsville Public Facilities19
Authority Act."20
SECTION 2.21
Creation of authority; purpose.22
There is created a body corporate and politic to be known as the "City of Watkinsville Public23
Facilities Authority," which shall be a public corporation. Such corporation shall be separate24
and distinct from any public corporation or other entity heretofore created by the General25
Assembly and shall be an instrumentality of the State of Georgia exercising governmental26
powers. The authority is created for the purpose of promoting the public good and general27
welfare of the citizens of the City of Watkinsville and assisting the City of Watkinsville in28
providing facilities, equipment, and services to the citizens of the City of Watkinsville and29
the citizens located in the territories served by the City of Watkinsville in the most efficient30
means possible. In connection with the exercise of any of its powers, the members of the31
authority may make findings or determinations regarding the public good and general welfare32
of the City of Watkinsville and the use of facilities, equipment, and services, and such33
findings or determinations, if made, shall be conclusive and binding.34 23 LC 46 0611/AP
H. B. 750
- 3 -
SECTION 3.
35
Definitions.36
As used in this Act, the term:37
(l) "Authority" means the City of Watkinsville Public Facilities Authority created in this38
Act.39
(2) "Cost of the project" shall include (A) the cost of construction; (B) the cost of all land40
or interests therein, properties, rights, easements, and franchises acquired; (C) the cost of41
acquiring, constructing, or erecting buildings, improvements, materials, labor, and42
services; (D) the cost of all machinery and equipment; (E) financing charges, including43
interest prior to and during construction or acquisition of any project and for six months44
after such project is placed in service and operational at the level intended; (F) the cost45
of construction, engineering, architectural, fiscal, accounting, inspection, legal expenses46
relating to a project or to the financing or refinancing of any project, and other expenses47
necessary or incident to determining the feasibility or practicability of any project; (G)48
administrative expenses relating to any project or to the financing or refinancing thereof49
and such other expenses as may be necessary or incident to the financing of a project50
authorized by this Act; the acquisition, construction, renovation, reconstruction, or51
remodeling of a project; and the placing of the same in operation. Any such obligation52
or expense shall be regarded as a part of the cost of the project and may be paid or53
reimbursed as such out of any funds of the authority, including proceeds of any revenue54
bonds issued under the provisions of this Act for any such project or projects and the55
proceeds of the sale of any contracts, lease agreements, or installment sale agreements56
or the amounts payable thereunder, either directly or by the creation of interests therein.57
(3) "City" means the City of Watkinsville, Georgia.58
(4) "Project" means any capital project, located inside or outside the territorial59
boundaries of the city, determined by the authority to promote the public good or general60 23 LC 46 0611/AP
H. B. 750
- 4 -
welfare of the citizens of the city or to be necessary or convenient for the efficient
61
operation of the city or any of its enterprises or systems, including, but not limited to, the62
acquisition, construction, renovation, improvement, extension, addition, or equipping63
of (A) recreational facilities, including parks, athletic fields, buildings, or facilities or64
other similar facilities; (B) public safety facilities, including law enforcement offices,65
facilities, or equipment; (C) educational, cultural, or historical facilities and equipment;66
(D) transportation facilities and equipment; (E) administrative facilities and equipment;67
(F) any "undertaking" permitted by the Revenue Bond Law; (G) any undertaking, project,68
or service for which the governmental body contracting with the authority is authorized69
by law to undertake in the performance of its governmental, proprietary, or administrative70
functions, all personal property to be used in connection therewith, and the lease and sale71
of any part or all of such facilities, including real and personal property, so as to ensure72
the efficient and proper development, maintenance, and operation of such project deemed73
by the authority to be necessary, convenient, or desirable.74
(5) "Revenue bonds" means revenue bonds issued by the authority pursuant to the terms75
of this Act or under Article 3 of Chapter 82 of Title 36 of the O.C.G.A., known as the76
"Revenue Bond Law."77
SECTION 4.78
Powers of authority.79
The authority shall have the power:80
(1) To hold, own, lease, transfer, and convey real and personal property or interests;81
(2) To sue and be sued;82
(3) To have and to use a seal and to alter the same at its pleasure;83
(4) To acquire, construct, purchase, own, equip, operate, extend, improve, lease, and sell84
any project;85 23 LC 46 0611/AP
H. B. 750
- 5 -
(5) To exercise the powers conferred upon a public corporation or a public authority by
86
Article IX, Section Ill, Paragraph I of the Constitution of Georgia, such authority being87
expressly declared to be a public corporation or a public authority within the meaning of88
such provision of the Constitution of Georgia;89
(6) To acquire property and projects in its own name by gift or by purchase on such terms90
and conditions and in such manner as it may deem proper. If the authority shall deem it91
expedient to construct any project on real property or any interest therein or usufruct which92
is subject to the control of the city, the city is authorized to convey such real property or93
interest therein to the authority for no consideration or for such consideration as may be94
agreed upon by the authority and the city, taking into consideration the public benefit to be95
derived from such conveyance. The city may transfer such property or interest therein96
without the necessity of putting the same out for bid and without regard to any97
determination as to whether or not such property or interest therein is in surplus.98
(7) To accept gifts and bequests for its corporate purposes;99
(8) To appoint, select, and employ, with or without bidding, as the authority may choose,100
officers, agents, and employees, including engineering, architectural, and construction101
experts, fiscal agents, underwriters, or other advisors, and attorneys, and to fix their102
compensation;103
(9) To make and execute with public and private persons and corporations contracts, lease104
agreements, rental agreements, installment sale agreements, and other instruments relating105
to its projects and incident to the exercise of the powers of the authority, including106
contracts for constructing, renting, leasing, and selling its projects for the benefit of the107
city; provided, without limiting the generality of this paragraph, that the authority is108
specifically granted the power to enter into contracts, lease agreements, rental agreements,109
installment sale agreements, and related agreements for a term not exceeding 50 years as110
provided in Section Ill of Article IX of the Constitution of Georgia;111 23 LC 46 0611/AP
H. B. 750
- 6 -
(10) To lease, sell, transfer, or otherwise dispose of any property, real or personal, or assets
112
of the authority, or to assign its rights under its contracts, lease agreements, or installment113
sale agreements or its right to receive payments thereunder, either directly or through trusts114
or custodial arrangements whereby interests are created in such contracts, lease agreements,115
or installment sale agreements or the payments to be received thereunder through the116
issuance of trust certificates, certificates of participation, custodial receipts, or other similar117
instruments. In connection with any such sale, lease, transfer, or assignment, the authority118
need not comply with any other provision of law requiring public bidding or any119
announcement to the public of the sale of such property, assets, or rights;120
(11) To accept loans and grants of money or property of any kind from the United States,121
the State of Georgia, or any political subdivision or municipal corporation of the State of122
Georgia;123
(12) To borrow money for any of its corporate purposes and to issue revenue bonds, notes,124
or other types of indebtedness payable solely from funds or revenues of the authority125
pledged for that purpose and to pledge and assign any of its revenues, income, rent,126
charges, and fees to provide for the payment of the same and to provide for the rights of127
the holders of such revenue bonds; provided, however, that the power conferred by this128
paragraph may not be exercised after the expiration of four years from the effective date129
of this Act;130
(13) To enter into (A) interest rate swaps, collars, or other types of interest rate131
management agreements or (B) credit enhancement or liquidity agreements relating to any132
obligations of the authority, provided that the obligation of the authority under any such133
agreements shall not be a general obligation of the authority but shall be a limited134
obligation of the authority payable from a specific source of funds identified for such135
purpose. The authority shall be exempt from any requirement of Georgia law requiring a136
swap management plan or other similar plan relating to interest rate swap agreements;137 23 LC 46 0611/AP
H. B. 750
- 7 -
(14) To make such rules and regulations governing its employees and property as it may
138
in its discretion deem proper;139
(15) The authority may be sued the same as any private corporation on any contractual140
obligation of the authority. The authority shall have the same rights to sue any other person141
or entity as any private corporation; and142
(16) To issue revenue bonds, notes, or other obligations to finance or refinance any project143
which may be financed by the city under the Revenue Bond Law of Georgia.144
SECTION 5.145
Members of authority; terms of office.146
The authority shall consist of six members as follows: the mayor and each member of the city147
council (the "council") to be appointed by themselves. The terms of office shall be148
concurrent with their terms of office on the city council. Successors to such members shall149
be appointed as the original members were appointed as provided in this Act, and any150
vacancies shall be filled by the appointing authority as provided in this Act, for the unexpired151
term. A majority of the members of the authority shall constitute a quorum, and no vacancy152
on the authority shall impair the right of the quorum to exercise all the rights and perform all153
the duties of the authority and, in every instance, a majority vote of a quorum shall authorize154
any legal act of the authority, including for all things necessary to authorize and issue155
revenue bonds. One of the members of the authority shall be the chairperson of the authority,156
to be elected by the city council of Watkinsville. The authority shall elect a secretary and157
treasurer who need not necessarily be members of the authority. The authority may elect a158
vice chairperson or any number of assistant secretaries or treasurers as it may from time to159
time deem necessary or desirable. The members of the authority shall not be entitled to160
compensation for their services but shall be entitled to and shall be reimbursed for the actual161
expenses necessarily incurred in the performance of their duties. The authority shall make162 23 LC 46 0611/AP
H. B. 750
- 8 -
rules and regulations for its own governance and shall have perpetual existence. Any change
163
in name or composition of the authority shall in no way affect the vested rights of any person164
under the provisions of this Act or impair the obligations of any contracts existing under this165
Act.166
SECTION 6.167
Issuance and sale of revenue bonds.168
The authority shall have power and is authorized from time to time to provide for the169
issuance and sale of negotiable revenue bonds in the manner provided by Article 3 of170
Chapter 82 of Title 36 of the O.C.G.A., the "Revenue Bond Law," for the purpose of paying171
all or any part of the cost of any one or more projects, including the cost of constructing,172
reconstructing, equipping, extending, adding to, or improving any such project, or for the173
purpose of refunding, as provided in this Act, any such bonds of the authority or any other174
authority or public body previously issued to finance or refinance the cost of a project. The175
principal of and interest on such revenue bonds shall be a limited obligation of the authority176
payable solely from the source or sources of funds specified in the indenture or resolution177
of the authority authorizing the issuance of such revenue bonds. The revenue bonds of each178
issue shall be issued and validated under and in accordance with the provisions of the179
Revenue Bond Law. Such revenue bonds shall mature on such dates, bear interest at such180
rate or rates, whether fixed or variable, be subject to redemption, and have such other terms181
as the authority may provide in the indenture or resolution relating thereto. Such revenue182
bonds shall not be subject to any provision of Georgia law limiting the rate of interest183
payable thereon and may be sold in a negotiated sale or in a public sale as the authority may184
determine.185 23 LC 46 0611/AP
H. B. 750
- 9 -
SECTION 7.
186
Power to incur loans or issue notes.187
The authority shall have the power to incur indebtedness from time to time for financing or188
refinancing any project or for refunding any obligations previously issued for such purpose189
or for any other purpose, whether in the form of a loan or through the issuance of notes, and190
the principal of and interest on such notes or loans shall be a limited obligation of the191
authority payable solely from the source or sources of funds specified in the resolution or192
trust indenture of the authority authorizing such loan or the issuance of such notes. Any such193
loan or notes shall not be required to be validated as a condition to the issuance thereof and194
shall have such terms as may be specified by the authority in the resolution or indenture195
authorizing the same.196
SECTION 8.197
Negotiable instruments, bonds, and other obligations exempt from taxation.198
All revenue bonds issued under the provisions of this Act shall have all the qualities and199
incidents of negotiable instruments under the negotiable instruments law of this state. All200
such bonds, and any loan incurred or note issued as provided in this Act, are declared to be201
issued or incurred for an essential public and governmental purpose, and such obligations and202
the interest thereon shall be exempt from all taxation within this state.203
SECTION 9.204
Revenue bonds or notes not debt or general obligation.205
Revenue bonds or notes issued under the provisions of this Act or any loan incurred as206
authorized by this Act shall not constitute a debt or a pledge of the faith and credit of the207 23 LC 46 0611/AP
H. B. 750
- 10 -
State of Georgia or of any political subdivision or municipal corporation thereof, including
208
the city, but shall be payable solely from the sources as may be designated in the resolution209
or indenture of the authority authorizing the issuance of the same. The issuance of such210
obligations shall not directly, indirectly, or contingently obligate the State of Georgia or any211
political subdivision or municipal corporation thereof, including the city, to levy or to pledge212
any form of taxation whatever for the payment thereof. No holder of any bond or receiver213
or trustee in connection therewith shall have the right to enforce the payment thereof against214
any property of the State of Georgia or any political subdivision or municipal corporation215
thereof, including the city, nor shall any such bond constitute a charge, lien, or encumbrance,216
legal or equitable, upon any such property. All such obligations shall contain on their face217
a recital setting forth substantially the foregoing provisions of this section. Nothing in this218
section shall be construed to prohibit the State of Georgia or any political subdivision,219
municipal corporation, or agency thereof, including the city, from obligating itself to pay the220
amounts required under any contract entered into with the authority pursuant to Article IX221
of the Constitution of the State of Georgia or any successor provision, including from funds222
received from taxes to be levied and collected for that purpose to the extent necessary to pay223
the obligations contractually incurred with the authority, and from any other source.224
SECTION 10.225
Issuance of bonds or obligations under trust indentures or resolutions.226
In the discretion of the authority, any issue of such revenue bonds, notes, or other obligations227
may be secured by a trust indenture by and between the authority and a trustee, which may228
be any trust company or bank having the powers of a trust company within or outside of the229
State of Georgia. Such trust indenture may pledge or assign fees, tolls, rents, revenues, and230
earnings to be received by the authority, including the proceeds derived from the financing,231
sale, or lease, from time to time, of any project. Either the resolution providing for the232 23 LC 46 0611/AP
H. B. 750
- 11 -
issuance of revenue bonds or other obligations or such trust indenture may contain such
233
provisions for protecting and enforcing the rights and remedies of the owners of such bonds234
or obligations as may be reasonable and proper and not in violation of law, including235
covenants setting forth the duties of the authority or any lessee or purchaser in relation to the236
acquisition and construction of any project, the maintenance, operation, repair, and issuance237
of any project, and the custody, safeguarding, and application of all moneys, including the238
proceeds derived from the sale or lease of any project or from the sale of any such bonds,239
notes, or other obligations and may also contain provisions concerning the conditions, if any,240
upon which additional bond notes or other obligations may be issued, whether on a parity241
with or subordinate to any other obligations issued by the authority. Such trust indenture or242
resolution may set forth the rights and remedies of the owners of such obligations and of the243
trustee. In addition to the foregoing, such trust indenture or resolution may contain such244
other provisions as the authority may deem reasonable and proper for the security of the245
owners of such bonds or other obligations or otherwise necessary or convenient in246
connection with the issuance of such obligations. All expenses incurred in carrying out such247
trust indenture or resolution may be treated as a part of the cost of maintenance, operation,248
and repair of the project affected by such trust indenture or resolution.249
SECTION 11.250
Security for payment of bonds or other obligations.251
The authority may assign or pledge any property or revenues to the payment of the principal252
and interest on revenue bonds of the authority as the resolution authorizing the issuance of253
the bonds or the trust indenture may provide. The use and disposition of such property or254
revenues assigned to the payment of bonds or other obligations shall be subject to the trust255
indenture or resolution authorizing the issuance of such revenue bonds or obligations. Any256
lien created by the authority for the payment of such bonds or obligations may be a first lien257 23 LC 46 0611/AP
H. B. 750
- 12 -
or a subordinate lien as the authority may provide, and any such trust indenture or resolution
258
may provide, at the option of the authority, for the issuance of additional bonds or other259
obligations sharing any lien on a parity or subordinate lien basis.260
SECTION 12. 261
Refunding bonds or obligations.262
The authority is authorized to provide by resolution for the issuance of obligations, whether263
revenue bonds, notes, or other obligations, for the purpose of refunding any revenue bonds264
or other obligations issued under the provisions of this Act or under any other provision of265
Georgia law so long as such bonds or other obligations were issued for a purpose or project266
for which the authority could issue bonds. The issuance of such refunding bonds or other267
obligations and all the details thereof, the rights of the holders thereof, and the duties of the268
authority with respect to the same shall be governed by the foregoing provisions of this Act269
insofar as the same may be applicable.270
SECTION 13.271
Principal office; venue.272
The principal office of the authority shall be in the city, and the venue of any action against273
it shall be in the City of Watkinsville, Georgia. Any action pertaining to the validation of274
any bonds issued under the provisions of this Act and for the validation of any contract275
entered into by the authority shall be brought in the Superior Court of the City of276
Watkinsville, and such court shall have exclusive original jurisdiction of such actions.277
Service upon the authority of any process, subpoena, or summons shall be affected by278
serving the same personally upon any member of the authority.279 23 LC 46 0611/AP
H. B. 750
- 13 -
SECTION 14.
280
Validation of revenue bonds.281
Revenue bonds of the authority shall be confirmed and validated in accordance with the282
procedure now or hereafter set forth in Article 3 of Chapter 82 of Title 36 of the O.C.G.A.,283
the "Revenue Bond Law," as the same now exists or may hereafter be amended. The petition284
for validation shall also make the city a party defendant to such action, if the city has or will285
contract with the authority with respect to the project for which bonds are to be issued and286
are sought to be validated. The bonds when validated and the judgment of such validation287
shall be final and conclusive with respect to the validity of such bonds against the authority288
and against all other persons or entities, regardless of whether such persons or entities were289
parties to such validation proceedings.290
SECTION 15. 291
No impairment of rights.292
While any of the bonds or other obligations issued by the authority or any interests in293
contracts of the authority remain outstanding, the powers, duties, or existence of the authority294
or of its officers, employees, or agents shall not be diminished or impaired in any manner that295
will affect adversely the interest and rights of the holders of such bonds or obligations or296
such interests in contracts of the authority. The provisions of this section of this Act shall297
be for the benefit of the authority and of the holders of any such bonds or obligations and298
interests in contracts of the authority and, upon the issuance of bonds or obligations or the299
creation of interests in contracts of the authority under the provisions of this Act, shall300
constitute a contract with the holders of such bonds or obligations or such interests in301
contracts of the authority.302 23 LC 46 0611/AP
H. B. 750
- 14 -
SECTION 16.
303
Trust funds; permitted investments.304
All moneys received by the authority pursuant to this Act, whether as proceeds from the sale305
of revenue bonds or obligations of the authority as grants or other contributions, or as306
revenues, income, fees, and earnings, shall be deemed to be the trust funds to be held and307
applied solely as provided in this Act and in such resolutions and trust indentures as may be308
adopted and entered into by the authority pursuant to this Act. Any such moneys or funds309
may be invested from time to time in such investments as may be permitted under the310
indenture, agreement, or resolution establishing the fund or account in which such funds are311
held, or if not held in such a fund or account, in such investments as would be permitted312
investments for a development authority created under Code Section 36-62-1 of the313
O.C.G.A., et seq., as amended.314
SECTION 17.315
Power to set rates, fees, and charges.316
The authority is authorized to prescribe and fix and collect rates, fees, tolls, rents, and317
charges and to revise, from time to time, and collect such revised rates, fees, tolls, rents, and318
charges for the services, facilities, or commodities furnished, including leases, concessions,319
or subleases of its projects, and to determine the price and terms at and under which its320
projects may be sold, leased, or otherwise disposed of.321 23 LC 46 0611/AP
H. B. 750
- 15 -
SECTION 18.
322
Essential government function; no taxes or assessments.323
All property or interests in property owned by the authority shall be public property held and324
owned for governmental purposes and shall be exempt from ad valorem taxation. The325
exercise of the powers conferred upon the authority hereunder shall constitute an essential326
governmental function for a public purpose, and the authority shall be required to pay no327
taxes or assessments upon any of the property acquired by it or under its jurisdiction, control,328
possession, or supervision or upon its activities in the operation and maintenance of property329
acquired by it or of buildings erected or acquired by it or any fees, rentals, or other charges330
for the use of such property or buildings or other income received by the authority. The tax331
exemption provided in this Act shall not include an exemption from sales and use tax on332
property purchased by or for the use of the authority.333
SECTION 19.334
Immunity of authority and members.335
The authority shall have the same immunity and exemption from liability for torts and336
negligence as the State of Georgia, and the officers, agents, and employees of the authority,337
when in performance of the work of the authority, shall have the same immunity and338
exemption from liability for torts and negligence as officers, agents, and employees of the339
State of Georgia.340
SECTION 20.341
Authority property not subject to levy and sale.342
The property of the authority shall not be subject to levy and sale under legal process.343 23 LC 46 0611/AP
H. B. 750
- 16 -
SECTION 21.
344
Authority area of operation.345
The scope of the authority's operations shall be limited to the territory embraced within the346
territorial limits of the city and within the territorial limits of any project owned or operated347
by the city, as the same now or may hereafter exist; provided, however, that nothing in this348
section shall prevent the authority from contracting with any entity, public or private, outside349
of the city with respect to any project located in the city or any project located outside of the350
city, if the authority shall determine that entering into such contract is in the best interest of351
the authority and in furtherance of its public purposes.352
SECTION 22. 353
Supplemental powers.354
This Act does not in any way take away from the authority any power which may be355
conferred upon it by law but is supplemental thereto.356
SECTION 23.357
No power to impose taxes.358
The authority shall not have the right to impose any tax on any person or property.359
SECTION 24.360
Act to be liberally construed.361
This Act shall be liberally construed to affect the purposes hereof.362 23 LC 46 0611/AP
H. B. 750
- 17 -
SECTION 25.
363
Severability of provisions.364
Should any sentence, clause, phrase, or part of this Act be declared for any reason to be365
unconstitutional or invalid, the same shall not affect the remainder of this Act or any part366
hereof other than the part so held to be invalid, and the remaining provisions of this Act shall367
remain in full force and effect; it is the express intention of this Act to enact each provision368
of this Act independently of any other provision hereof.369
SECTION 26. 370
Effective date.371
This Act shall become effective upon its approval by the Governor or upon its becoming law372
without such approval.373
SECTION 27. 374
Conflicting laws.375
All laws and parts of laws in conflict with this Act are repealed.376