| 1 | 1 | | 23 LC 47 2292 |
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| 2 | 2 | | S. B. 256 |
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| 3 | 3 | | - 1 - |
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| 4 | 4 | | Senate Bill 256 |
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| 5 | 5 | | By: Senator Mallow of the 2nd |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | To amend Chapter 60 of Title 36 of the Official Code of Georgia Annotated, relating to |
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| 9 | 9 | | 1 |
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| 10 | 10 | | general provisions applicable to counties and municipal corporations, so as to authorize2 |
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| 11 | 11 | | counties and municipalities to enter into certain long-term leases relating to affordable3 |
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| 12 | 12 | | workforce housing projects or undertakings; to provide for related matters; to repeal4 |
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| 13 | 13 | | conflicting laws; and for other purposes.5 |
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| 14 | 14 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 15 | 15 | | SECTION 1.7 |
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| 16 | 16 | | Chapter 60 of Title 36 of the Official Code of Georgia Annotated, relating to general8 |
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| 17 | 17 | | provisions applicable to counties and municipal corporations, is amended by revising Code9 |
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| 18 | 18 | | Section 36-60-13, relating to multiyear lease, purchase, or lease-purchase contracts, as10 |
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| 19 | 19 | | follows:11 |
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| 20 | 20 | | "36-60-13.12 |
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| 21 | 21 | | (a) Each county or municipality in this state shall be authorized to enter into multiyear13 |
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| 22 | 22 | | lease, purchase, or lease-purchase contracts of all kinds for the acquisition of goods,14 |
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| 23 | 23 | | materials, real and personal property, services, and supplies, provided that any such15 |
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| 24 | 24 | | contract shall contain provisions for the following:16 23 LC 47 2292 |
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| 25 | 25 | | S. B. 256 |
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| 26 | 26 | | - 2 - |
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| 27 | 27 | | (1) The contract shall terminate absolutely and without further obligation on the part of |
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| 28 | 28 | | 17 |
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| 29 | 29 | | the county or municipality at the close of the calendar or fiscal year in which it was18 |
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| 30 | 30 | | executed and at the close of each succeeding calendar or fiscal year for which it may be19 |
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| 31 | 31 | | renewed as provided in this Code section;20 |
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| 32 | 32 | | (2) The contract may provide for automatic renewal unless positive action is taken by the21 |
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| 33 | 33 | | county or municipality to terminate such contract, and the nature of such action shall be22 |
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| 34 | 34 | | determined by the county or municipality and specified in the contract;23 |
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| 35 | 35 | | (3) The contract shall state the total obligation of the county or municipality for the24 |
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| 36 | 36 | | calendar or fiscal year of execution and shall further state the total obligation which will25 |
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| 37 | 37 | | be incurred in each calendar or fiscal year renewal term, if renewed; and26 |
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| 38 | 38 | | (4) The contract shall provide that title to any supplies, materials, equipment, or other27 |
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| 39 | 39 | | personal property shall remain in the vendor until fully paid for by the county or28 |
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| 40 | 40 | | municipality.29 |
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| 41 | 41 | | (b) In addition to the provisions enumerated in subsection (a) of this Code section, any30 |
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| 42 | 42 | | contract authorized by this Code section may include:31 |
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| 43 | 43 | | (1) A provision which requires that the contract will terminate immediately and32 |
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| 44 | 44 | | absolutely at such time as appropriated and otherwise unobligated funds are no longer33 |
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| 45 | 45 | | available to satisfy the obligations of the county or municipality under the contract; or34 |
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| 46 | 46 | | (2) Any other provision reasonably necessary to protect the interests of the county or35 |
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| 47 | 47 | | municipality.36 |
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| 48 | 48 | | (c) Any contract developed under this Code section containing the provisions enumerated37 |
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| 49 | 49 | | in subsection (a) of this Code section shall be deemed to obligate the county or38 |
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| 50 | 50 | | municipality only for those sums payable during the calendar or fiscal year of execution39 |
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| 51 | 51 | | or, in the event of a renewal by the county or municipality, for those sums payable in the40 |
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| 52 | 52 | | individual calendar or fiscal year renewal term.41 |
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| 53 | 53 | | (d) No contract developed and executed pursuant to this Code section shall be deemed to42 |
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| 54 | 54 | | create a debt of the county or municipality for the payment of any sum beyond the calendar43 23 LC 47 2292 |
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| 55 | 55 | | S. B. 256 |
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| 56 | 56 | | - 3 - |
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| 57 | 57 | | or fiscal year of execution or, in the event of a renewal, beyond the calendar or fiscal year |
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| 58 | 58 | | 44 |
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| 59 | 59 | | of such renewal.45 |
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| 60 | 60 | | (e) No contract developed and executed pursuant to this Code section may be delivered46 |
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| 61 | 61 | | if the principal portion of such contract, when added to the amount of debt incurred by any47 |
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| 62 | 62 | | county or municipality pursuant to Article IX, Section V, Paragraph I of the Constitution48 |
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| 63 | 63 | | of Georgia, exceeds 10 percent of the assessed value of all taxable property within such49 |
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| 64 | 64 | | county or municipality.50 |
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| 65 | 65 | | (f) No contract developed and executed pursuant to this Code section may be delivered if51 |
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| 66 | 66 | | the real or personal property being so financed has been the subject of a referendum which52 |
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| 67 | 67 | | failed to receive the approval of the voters of the county or municipality within the53 |
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| 68 | 68 | | immediately preceding four calendar years, unless such real or personal property is54 |
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| 69 | 69 | | required to be financed pursuant to a federal or state court order, or imminent threat55 |
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| 70 | 70 | | thereof, as certified by the governing authority of the county or municipality.56 |
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| 71 | 71 | | (g) No contract developed and executed pursuant to this Code section with respect to the57 |
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| 72 | 72 | | acquisition of real property may be delivered unless a public hearing has been held by the58 |
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| 73 | 73 | | county or municipality after two weeks' notice published in a newspaper of general59 |
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| 74 | 74 | | circulation within the county or municipality.60 |
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| 75 | 75 | | (h)(1) On or after July 1, 2000, no contract developed and executed or renewed,61 |
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| 76 | 76 | | refinanced, or restructured pursuant to this Code section with respect to real property may62 |
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| 77 | 77 | | be delivered if the lesser of either of the following is exceeded:63 |
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| 78 | 78 | | (A) The average annual payments on the aggregate of all such outstanding contracts64 |
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| 79 | 79 | | exceed 7.5 percent of the governmental fund revenues of the county or municipality for65 |
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| 80 | 80 | | the calendar year preceding the delivery of such contract plus any available special66 |
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| 81 | 81 | | county 1 percent sales and use tax proceeds collected pursuant to Code67 |
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| 82 | 82 | | Section 48-8-111; or68 |
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| 83 | 83 | | (B) The outstanding principal balance on the aggregate of all such outstanding69 |
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| 84 | 84 | | contracts exceeds $25 million; provided, however, that with respect to any county or70 23 LC 47 2292 |
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| 85 | 85 | | S. B. 256 |
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| 86 | 86 | | - 4 - |
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| 87 | 87 | | municipality in which, prior to July 1, 2000, the outstanding principal balance on the |
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| 88 | 88 | | 71 |
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| 89 | 89 | | aggregate of outstanding contracts exceeds $25 million, such outstanding contracts may72 |
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| 90 | 90 | | be renewed, refinanced, or restructured, but no new contracts shall be developed and73 |
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| 91 | 91 | | executed until the outstanding principal balance on such outstanding contracts has been74 |
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| 92 | 92 | | reduced so that the $25 million limitation of this subparagraph, or the limitation in75 |
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| 93 | 93 | | subparagraph (A) of this paragraph, whichever is lower, is not exceeded.76 |
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| 94 | 94 | | (2) Paragraph (1) of this subsection shall not apply to contracts developed and executed77 |
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| 95 | 95 | | or renewed, refinanced, or restructured pursuant to this Code section which are for78 |
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| 96 | 96 | | projects or facilities:79 |
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| 97 | 97 | | (A) For the housing of court services, where any other state law or laws authorize the80 |
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| 98 | 98 | | project or facility to be financed and paid for from the collection of fines rather than81 |
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| 99 | 99 | | from tax revenues; or82 |
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| 100 | 100 | | (B) Which have been previously approved in the most recent referendum calling for83 |
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| 101 | 101 | | the levy of a special county 1 percent sales and use tax pursuant to Part 1 of Article 384 |
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| 102 | 102 | | of Chapter 8 of Title 48.85 |
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| 103 | 103 | | (i) Any such contract may provide for the payment by the county or municipality of86 |
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| 104 | 104 | | interest or the allocation of a portion of the contract payment to interest, provided that the87 |
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| 105 | 105 | | contract is in compliance with this Code section.88 |
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| 106 | 106 | | (j) Nothing in this Code section shall restrict counties or municipalities from executing89 |
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| 107 | 107 | | reasonable contracts arising out of their proprietary functions.90 |
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| 108 | 108 | | (k) Each county or municipality in this state shall be authorized to enter into multiyear |
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| 109 | 109 | | 91 |
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| 110 | 110 | | lease, purchase, or lease-purchase contracts pursuant to the provisions of this Code section92 |
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| 111 | 111 | | for the purpose of providing or supporting affordable workforce housing projects or93 |
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| 112 | 112 | | undertakings, as deemed appropriate by the governing authority of such county or94 |
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| 113 | 113 | | municipality, provided that the term of such agreement does not exceed 45 years."95 23 LC 47 2292 |
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| 114 | 114 | | S. B. 256 |
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| 115 | 115 | | - 5 - |
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| 116 | 116 | | SECTION 2. |
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| 117 | 117 | | 96 |
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| 118 | 118 | | All laws and parts of laws in conflict with this Act are repealed.97 |
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