23 LC 47 2490/AP
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House Bill 780 (AS PASSED HOUSE AND SENATE)
By: Representative LaHood of the 175
th
A BILL TO BE ENTITLED
AN ACT
To create the Brooks County Public Facilities Authority; to provide that the authority is a
1
body corporate and politic and an instrumentality of the State of Georgia; to authorize the2
authority to acquire, construct, equip, maintain, and operate certain projects, including3
buildings and facilities for use by Brooks County, the Brooks County School District, any4
municipality or other political subdivision located in Brooks County, for its governmental,5
proprietary, and administrative functions; to provide for members of the authority and their6
terms, organization, and reimbursement; to provide for vacancies; to provide for definitions;7
to confer powers and impose duties on the authority; to provide for limitations to the8
authority; to authorize the authority to enter into contracts and leases pertaining to uses of9
such facilities, which contracts and leases may obligate the lessees to make payment for the10
use of the facilities for the term thereof and to pledge for that purpose money derived from11
taxation; to provide that no debt of Brooks County or the State of Georgia shall be incurred12
by the exercise of any of the powers granted; to authorize the issuance of revenue bonds of13
the authority payable from the revenues, rents, and earnings and other functions of the14
authority; to authorize the collecting and pledging of such revenues, rents, and earnings for15
the payment of such bonds; to authorize the adoption of resolutions and the execution of trust16
agreements and indentures to secure the payment of such bonds and to define the rights of17
the holders of such bonds; to provide for a sinking fund; to make the bonds of the authority18 23 LC 47 2490/AP
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exempt from taxation; to authorize the issuance of refunding bonds; to provide for the
19
validation of such bonds and to fix the venue for jurisdiction of actions relating to any20
provision of this Act; to provide for immunity and exemption from liability for torts and21
negligence; to provide that the property of the authority shall not be subject to levy and sale;22
to provide that certain moneys are trust funds; to provide that this Act shall be liberally23
construed; to define the scope of the authority's operation; to provide for disposition of24
property upon dissolution of the authority; to provide for severability; to provide for a short25
title; to provide for related matters; to repeal conflicting laws; and for other purposes.26
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:27
SECTION 1.28
Short title.29
This Act shall be known and may be cited as the "Brooks County Public Facilities Authority30
Act."31
SECTION 2.32
Brooks County Public Facilities Authority.33
There is created a public body corporate and politic to be known as the Brooks County Public34
Facilities Authority, which shall be an instrumentality and a public corporation of the State35
of Georgia, the purpose of which shall be to acquire, construct, equip, maintain, and operate36
certain projects for use by Brooks County, the Brooks County School District, or any37
municipality or other political subdivision located within Brooks County, for its38
governmental, proprietary, public, and administrative functions. The authority shall not be39
a state institution or a department or agency of the state, but shall be an instrumentality of the40 23 LC 47 2490/AP
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state, a mere creation of the state, being a distinct corporate entity and exempt from the
41
provisions of Article 2 of Chapter 17 of Title 50 of the O.C.G.A., the "Georgia State42
Financing and Investment Commission Act." The authority shall have its principal office in43
Brooks County, and its legal situs or residence for the purposes of this Act shall be Brooks44
County.45
SECTION 3.46
Membership.47
The authority shall consist of five members who shall be eligible to succeed themselves and48
who shall be appointed by the Board of Commissioners of Brooks County. Each member49
of the Board of Commissioners of Brooks County shall make an appointment to the authority50
and each such appointment shall be ratified by a majority of said board of commissioners.51
No more than three members of the authority may be members of said board of52
commissioners or employees of Brooks County. Any member of the authority who is a53
member of said board of commissioners shall serve for a term of office concurrent with such54
person's term of office as a member of said board of commissioners. Each member of the55
authority who is not a member of said board of commissioners shall serve for a term of office56
of three years, except that the initial terms of office of those members first appointed to the57
authority shall be specified at the time of appointment to be one, two, and, if no such member58
is a member of the board of commissioners, three years. After such initial terms, those59
members who are not members of said board of commissioners shall serve for terms of office60
of three years each. Members of the authority shall serve for the terms of office so specified61
and until the appointment and qualification of their respective successors. Vacancies on the62
authority shall be filled by said board of commissioners for the remainder of the unexpired63
term and until the appointment and qualification of a successor. Immediately after their64
appointment, the members of the authority shall enter upon their duties. The authority shall65 23 LC 47 2490/AP
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elect one of its members as chairperson and one as vice chairperson. The secretary-treasurer
66
of the authority shall be appointed by the authority and need not be a member of the67
authority. Three members of the authority shall constitute a quorum and no vacancy on the68
authority shall impair the right of the quorum to exercise all the rights and perform all the69
duties of the authority and, in every instance, a majority vote of a quorum shall authorize any70
legal act of the authority, including all things necessary to authorize and issue revenue bonds.71
The members of the authority shall receive no compensation for their services but may be72
reimbursed by the authority for the actual expenses necessarily incurred in the performance73
of their duties. The authority shall make rules and regulations for its own government and74
shall have perpetual existence.75
SECTION 4.76
Definitions.77
As used in this Act, the following words and terms shall have the following meanings unless78
a different meaning clearly appears from the context:79
(1) "Authority" shall mean the Brooks County Public Facilities Authority created by this80
Act.81
(2) "Project" shall mean and include real and personal property acquired or held by the82
authority, including all land; buildings; structures; sanitary and surface water sewers;83
utilities, including natural gas distribution, telecommunications, fiber, cable, and84
broadband services; and other public property determined by the authority to be desirable85
for the efficient operation of any department, board, office, commission, or agency of86
Brooks County, the Brooks County School District, or any municipality or other political87
subdivision located in Brooks County, or the State of Georgia in the performance of its88
governmental, proprietary, and administrative functions.89 23 LC 47 2490/AP
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(3) "Cost of project" shall include the cost of lands, buildings, improvements, machinery,
90
equipment, property, easements, rights, franchises, material, labor, services acquired or91
contracted for, plans and specification, and financing charges; construction costs; interest92
prior to and during construction; architectural, accounting, engineering, inspection,93
administrative, fiscal, and legal expenses; expenses incident to determining the feasibility94
or practicability of the project; and expenses incident to the acquiring, constructing,95
equipping, and operating of any project or any part thereof and to the placing of the same96
in operation.97
(4) "Revenue bonds" shall mean revenue bonds issued under the provisions of Article 398
of Chapter 82 of Title 36 of the O.C.G.A., the "Revenue Bond Law," or under the99
provisions of this Act. The obligations authorized under this Act may be issued by the100
authority in the manner authorized under the Revenue Bond Law.101
SECTION 5.102
Powers.103
The authority shall have all the powers necessary or convenient to carry out and effectuate104
the purposes and provisions of this Act, including, but without limiting the generality of the105
foregoing, the power:106
(1) To sue and be sued;107
(2) To adopt and alter a corporate seal;108
(3) To make and execute with public and private persons and corporations contracts,109
trusts, leases, rental agreements, and other instruments relating to its projects and in110
furtherance of the purposes of the authority, including contracts for the constructing,111
renting, and leasing of its projects for the use of any county or municipality in this state;112
(4) To acquire in its own name by purchase on such terms and conditions and in such113
manner as it may deem proper or by gift, grant, lease, or otherwise, real and personal114 23 LC 47 2490/AP
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property necessary or convenient for its corporate purposes, or rights and easements
115
therein, and to use the same so long as its corporate existence shall continue and to lease116
or make contracts with respect to the use of or disposition of the same in any manner it117
deems to the best advantage of the authority. Title to any such property shall be held by118
the authority exclusively for the benefit of the public.119
(5) To improve, extend, add to, reconstruct, renovate, or remodel any project or part120
thereof already acquired;121
(6) To pledge or assign any revenues, income, rent, charges, and fees received by the122
authority;123
(7) To appoint and select agents, engineers, architects, attorneys, fiscal agents,124
accountants, and employees and to provide for their compensation and duties;125
(8) To construct, reconstruct, acquire, own, alter, repair, remodel, maintain, extend,126
improve, operate, manage, and equip projects located on land owned or leased by the127
authority;128
(9) To receive, accept, and use any contributions, loans, or grants by persons, firms, or129
corporations, including the State of Georgia and the United States of America, and any130
other contributions;131
(10) To pay all or part of the costs of any project from the proceeds of revenue bonds of132
the authority or from other lawful sources available to it;133
(11) To prescribe rules and regulations for the operation of and to exercise police powers134
over the projects managed or operated by the authority;135
(12) To accept, receive, and administer gifts, grants, loans and devises of money,136
material, and property of any kind, including loans and grants from the State of Georgia137
or the United States of America or any agency or instrumentality thereof, upon such138
terms and conditions as the State of Georgia or the United States of America or such139
agency or instrumentality may impose;140 23 LC 47 2490/AP
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(13) To sell, lease, exchange, transfer, assign, pledge, mortgage, dispose of, grant in
141
trust, or grant options for any real or personal property or interest therein in furtherance142
of the purposes of the authority;143
(14) As security for repayment of authority obligations, to pledge, mortgage, convey,144
assign, hypothecate, or otherwise encumber any property, real or personal, of such145
authority and to execute any trust agreement, indenture, or security agreement containing146
any provisions not in conflict with law, which trust agreement, indenture, or security147
agreement may provide for foreclosure or forced sale of any property of the authority148
upon default, on such obligations, either in payment of principal or interest or in the149
performance of any term or condition, as are contained in such agreement or indenture;150
(15) To borrow money for any of its corporate purposes, to issue revenue bonds payable151
solely from funds pledged for that purpose, and to provide for the payment of the same152
and for the rights of the holders thereof;153
(16) To exercise all powers usually possessed by private corporations performing similar154
functions which are not in conflict with the Constitution and laws of this state; and155
(17) Pursuant to proper resolution of the authority, to issue revenue bonds payable from156
the rents and revenues of the authority and its projects, which bonds may be issued in157
either fully negotiable coupon form, in which event they shall have all the qualities and158
incidents of negotiable instruments under the laws of the State of Georgia, or which159
bonds may be issued in whole or in part in nonnegotiable fully registered form without160
coupons, payable to a designated payee or to the registered assigns of the payee with such161
conversion privileges as the authority may provide, for the purpose of paying all or any162
part of the cost associated with the projects authorized by the authority, including the cost163
of constructing, reconstructing, equipping, extending, adding to, or improving such164
projects or for the purpose of refunding, as provided in this Act, any such bonds of the165
authority theretofore issued. If the proceeds of the bonds of any issue shall exceed the166
amount required for the purpose for which such bonds were issued, the surplus shall be167 23 LC 47 2490/AP
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paid into the fund provided for the payment of principal and interest on such bonds. All
168
such revenue bonds shall be issued and validated under and in accordance with the169
procedures of Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the Revenue Bond170
Law, and in accordance with all terms and provisions thereof not in conflict with this Act,171
and in accordance with Code Section 50-17-1 of the O.C.G.A., relating to use of172
facsimile signatures on public securities, and, as security for the payment of any revenue173
bonds so authorized, any rents and revenue of the authority may be pledged and assigned.174
Such bonds shall be declared to be issued for an essential public and governmental175
purpose, and such bonds and all income therefrom shall be exempt from all taxation176
within the State of Georgia. For the purpose of the exemption from taxation of such177
bonds and the income therefrom, the authority shall be deemed to be a political178
subdivision of the State of Georgia.179
SECTION 6.180
Credit not pledged and debt not created by bonds.181
Revenue bonds issued under the provisions of this Act shall not constitute a debt or a pledge182
of the faith and credit of the State of Georgia, Brooks County, the Brooks County School183
District, or any municipality or other political subdivision located in Brooks County, but such184
bonds shall be payable from the rentals, revenue, earnings, and funds of the authority as185
provided in the resolution or trust agreement or indenture authorizing the issuance and186
securing the payment of such bonds. The issuance of such bonds shall not directly,187
indirectly, or contingently obligate the state or said county to levy or pledge any form of188
taxation for the payment thereof. No holder of any bond or receiver or trustee in connection189
therewith shall have the right to enforce the payment thereof against any property of the state190
or of said county, nor shall any such bond constitute a charge, lien, or encumbrance, legal or191 23 LC 47 2490/AP
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equitable, upon any such property. All such bonds shall contain on their face a recital setting
192
forth substantially the foregoing provisions of this section.193
SECTION 7.194
Trust agreement.195
In the discretion of the authority, any issue of revenue bonds may be secured by an196
agreement or indenture made by the authority with a corporate trustee, which may be any197
trust company or bank having the powers of a trust company within or without the State of198
Georgia. Such trust agreement or indenture may pledge and assign rents, fees, charges,199
revenues, and earnings to be received by the authority. The resolution providing for the200
issuance of revenue bonds and such trust agreement or indenture may contain provisions for201
protecting and enforcing the rights and remedies of the bondholders, including the right of202
appointment of a receiver upon default of the payment of any principal or interest obligation203
and the right of any receiver or trustee to enforce collection of any rents, fees, charges, or204
revenues for use of the project or projects necessary to pay all costs of operation and all205
reserves provided for, all principal and interest on all bonds of the issue, all costs of206
collection, and all other costs reasonably necessary to accomplish the collection of such sums207
in the event of any default of the authority. Such resolution and such trust agreement or208
indenture may include covenants setting forth the duties of the authority in relation to the209
acquisition of property for and the construction of the project and to the custody,210
safeguarding, and application of all funds and covenants providing for the operation,211
maintenance, repair, and insurance of the project or projects and may contain provisions212
concerning the conditions, if any, upon which additional revenue bonds may be issued. Such213
trust agreement or indenture may set forth the rights and remedies of the bondholders and of214
the trustee and may restrict the individual right of action of bondholders as is customary in215
securing bonds and debentures of corporations and may contain such other provisions as the216 23 LC 47 2490/AP
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authority may deem reasonable and proper for the security of the bondholders. All expenses
217
incurred in carrying out such trust may be treated as a part of the cost of maintenance,218
operation, and repair of the project affected by such trust.219
SECTION 8.220
Refunding bonds.221
The authority is authorized to provide by resolution for the issuance of revenue bonds of the222
authority for the purpose of calling, refunding, or refinancing any revenue bonds issued223
under the provisions of this Act and then outstanding and to include in the amount of such224
refunding bonds all interest and any call premiums that may be required for the redemption225
and refunding of such outstanding bonds.226
SECTION 9.227
Venue of actions, jurisdiction.228
Any action to protect or enforce any rights under the provisions of this Act or any action229
against the authority brought in the courts of the State of Georgia shall be brought in the230
Superior Court of Brooks County, Georgia, and any action pertaining to validation of any231
bonds issued under the provisions of this Act shall be brought in said court, which shall have232
exclusive, original jurisdiction of such actions.233
SECTION 10.234
Revenue bond validation.235
The petition for validation of all revenue bonds of the authority shall be brought against the236
authority, and any contracting party whose obligation is pledged as security for the payment237 23 LC 47 2490/AP
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of the bonds sought to be validated, as defendants, and the defendants shall be required to
238
show cause, if any exists, why such contract or contracts and the terms and conditions thereof239
shall not be adjudicated to be in all respects valid and binding upon such contracting parties.240
It shall be incumbent upon such defendants to defend against adjudication of the validity and241
binding effect of such contract or contracts or be forever bound thereby. Notice of such242
proceedings shall be included in the notice of the validation hearing required to be issued and243
published by the clerk of the Superior Court of Brooks County in which court such validation244
proceedings shall be initiated.245
SECTION 11.246
Interest of bondholders protected.247
While any of the bonds issued by the authority remain outstanding, the powers, duties, or248
existence of the authority or of its officers, employees, or agents shall not be diminished,249
impaired, or affected in any manner that will affect adversely the interest and rights of the250
holders of such bonds. The provisions of this Act shall be for the benefit of the authority and251
the holders of any such bonds and, upon the issuance of bonds under the provisions of this252
Act, shall constitute a contract with the holders of such bonds.253
SECTION 12.254
Revenues, earnings, rents, and charges; use.255
(a) For the purpose of earning sufficient revenue to make possible the financing of the256
construction of the project or projects of the authority with revenue bonds, the authority is257
authorized and empowered to fix, revise, and collect rents, fees, and charges on each project258
which it shall cause to be acquired or constructed. Such rents, fees, or charges to be paid for259 23 LC 47 2490/AP
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the use of such project or projects shall be so fixed and adjusted so as to provide a fund
260
sufficient with other revenue, if any, of such project or projects or of the authority:261
(1) To pay the cost of operating, maintaining, and repairing the project or projects,262
including reserves for insurance and extraordinary repairs and other reserves required by263
the resolution or trust agreement or indenture pertaining to such bonds and the issuance264
thereof, unless such cost shall be otherwise provided for;265
(2) To pay the principal of and interest on such revenue bonds as the same shall become266
due, including call premiums, if any, the proceeds of which shall have been or shall be267
used to pay the cost of such project or projects;268
(3) To comply with any sinking fund requirements contained in the resolution or trust269
agreement or indenture pertaining to the issuance of and security for such bonds;270
(4) To perform fully all provisions of such resolution or trust agreement or indenture271
relating to the issuance of or security for such bonds to the payment of which such rent272
is pledged;273
(5) To accumulate any excess income which may be required by the purchasers of such274
bonds or may be dictated by the requirements of such resolution or trust agreement or275
indenture, or which may be required for achieving ready marketability of and low interest276
rates on such bonds; and277
(6) To pay any expenses in connection with such bond issue or of such project,278
including, but not limited to, trustees', attorney's, and fiscal agents' fees.279
(b) Such rent shall be payable at such intervals as may be agreed upon and set forth in the280
rental contract or lease providing therefor, and any such contract or lease may provide for the281
commencement of rent payments to the authority prior to the completion of the project by282
the authority and may provide for the payment of rent during such times as such project may283
be partially or wholly untenantable.284
(c) Such rental contract or lease may obligate the tenants or lessees to operate, maintain, and285
keep in good repair, including complete reconstruction, if necessary, the rented or leased286 23 LC 47 2490/AP
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premises and projects, regardless of the cause of the necessity of such maintenance, repair,
287
or reconstruction.288
(d) Such rental contract or lease may obligate the tenants or lessees to indemnify and save289
harmless the authority from any and all damage to persons and property occurring on or by290
reason of the leased property or improvements thereon and to undertake, at the expense of291
the tenants or lessees, the defense of any action brought against the authority by reason of292
injury or damages to persons or property occurring on or by reason of the leased premises.293
(e) In the event of any failure or refusal on the part of the tenants or lessees to perform294
punctually any covenant or obligation contained in any such rental contract or lease, the295
authority may enforce performance by any legal or equitable process against the tenants or296
lessees.297
(f) The authority shall be permitted to assign any rent payable to it, pursuant to such rental298
contract or lease, to a trustee or paying agent as may be required by the terms of the299
resolution or trust agreement or indenture relating to the issuance of and security for such300
bonds.301
(g) The use and disposition of the authority's revenue shall be subject to the provisions of302
the resolution authorizing the issuance of such bonds or of the trust agreement or indenture,303
if any, securing the same.304
SECTION 13.305
Sinking fund.306
The revenue, rents, and earnings derived from any particular project or projects and any and307
all revenue, rents, and earnings received by the authority, regardless of whether such308
revenue, rents, and earnings were produced by a particular project for which bonds have been309
issued, unless otherwise pledged, may be pledged by the authority to payment of the310
principal of and interest on revenue bonds of the authority as may be provided in any311 23 LC 47 2490/AP
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resolution authorizing the issuance of such bonds or in any trust instrument pertaining to such
312
bonds, and such funds so pledged, from whatever source received, may include funds313
received from one or more or all sources and may be set aside at regular intervals into314
sinking funds for which provision may be made in any such resolution or trust instrument315
and which may be pledged to and charged with the payment of the interest upon such316
revenue bonds as such interest shall become due, the principal of the bonds as the same shall317
mature, the necessary charges of any trustee or paying agent for paying such principal and318
interest, and any premium upon bonds retired by call or purchase, and the use and disposition319
of any sinking fund may be subject to such regulation as may be provided for in the320
resolution authorizing the issuance of the bonds or in the trust instrument securing the321
payment of the same.322
SECTION 14.323
Taxation status.324
The exercise of the powers conferred upon the authority under this Act shall constitute an325
essential governmental function for a public purpose, and to the maximum extent permitted326
by general law, the authority shall be required to pay no taxes or assessments upon any of the327
property acquired by it or under its jurisdiction, control, possession, or supervision or upon328
its activities in the operation and maintenance of property acquired by it or of buildings329
erected or acquired by it or any fees, rents, or other charges for the use of such property or330
buildings or other income received by the authority. This section shall not include an331
exemption from sales and use tax on property purchased by or for the use of the authority.332 23 LC 47 2490/AP
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SECTION 15.
333
Immunity from tort actions.334
The authority shall have the same immunity and exemption from liability for torts and335
negligence as Brooks County, and the officers, agents, and employees of the authority, when336
in performance of work of the authority, shall have the same immunity and exemption from337
liability for torts and negligence as officers, agents, and employees of Brooks County. The338
authority may be sued the same as private corporations on any contractual obligation of the339
authority.340
SECTION 16.341
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
SECTION 17.344
Trust funds.345
All funds received pursuant to the authority of Section 12 of this Act, whether as proceeds346
from the sale of revenue bonds or as revenue, rents, fees, charges, or other earnings or as347
grants, gifts, or other contributions, shall be deemed to be trust funds to be held and applied348
by the authority, solely as provided in this Act. The bondholders entitled to receive the349
benefits of such funds shall have a lien on all such funds until the same are applied as350
provided for in any such resolution or trust instrument of the authority.351 23 LC 47 2490/AP
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SECTION 18.
352
Construction.353
This Act and any other law enacted with reference to the authority shall be liberally354
construed for the accomplishment of the purposes of the authority.355
SECTION 19.356
Scope of operations.357
The projects of the authority's operation shall be located in the territory embraced within the358
jurisdictional limits of Brooks County as the same now or may hereafter exist.359
SECTION 20.360
Conveyance of property upon dissolution.361
Should the authority for any reason be dissolved after full payment of all bonded362
indebtedness incurred under this Act, both as to principal and interest, title to all property of363
any kind and nature, real and personal, held by the authority at the time of such dissolution364
shall be conveyed to Brooks County, or title to any such property may be conveyed prior to365
such dissolution in accordance with provisions which may be made therefor in any resolution366
or trust instrument relating to such property, subject to any liens, leases, or other367
encumbrances outstanding against or in respect to said property at the time of such368
conveyance.369 23 LC 47 2490/AP
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SECTION 21.
370
Severability; effect of partial invalidity of Act.371
Should any sentence, clause, phrase, or part of this Act be declared for any reason to be372
unconstitutional or invalid, the same shall not affect such remainder of this Act or any part373
hereof, other than the part so held to be invalid, but the remaining provisions of this Act shall374
remain in full force and effect, and it is the express intention of this Act to enact each375
provision of this Act independently of any other provision hereof.376
SECTION 22.377
General repealer.378
All laws and parts of laws in conflict with this Act are repealed.379