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