25 LC 62 0126 Senate Bill 260 By: Senators Williams of the 25th, Brass of the 6th, Watson of the 1st, Robertson of the 29th, Beach of the 21st and others A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 50 of the Official Code of Georgia Annotated, relating to 1 Department of Economic Development, so as to create the Central State Hospital2 Redevelopment Authority; to confer powers and impose duties on the authority; to provide3 for membership and appointment of members of the authority; to provide for terms of the4 members; to provide for meetings; to prohibit employees and members from having certain5 interests; to provide for revenue bonds; to provide for venue and jurisdiction; to provide for6 the authority's purpose; to provide for rules and regulations; to provide for tax exemptions;7 to provide for supplemental powers; to provide for liberal construction; to provide for8 successor interests; to provide for definitions; to provide for related matters; to repeal9 conflicting laws; and for other purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 Chapter 7 of Title 50 of the Official Code of Georgia Annotated, relating to Department of13 Economic Development, is amended by adding a new article to read as follows:14 S. B. 260 - 1 - 25 LC 62 0126 "ARTICLE 1115 50-7-130.16 As used in this article, the term:17 (1) 'Authority' means the Central State Hospital Redevelopment Authority created in this18 article.19 (2) 'Central State Hospital' means the Central State Hospital in Milledgeville, Georgia,20 now or formerly under the jurisdiction of the Department of Behavioral Health and21 Developmental Disabilities.22 (3) 'Cost of the project' means and embraces the cost of construction; the cost of all23 lands, properties, rights, easements, and franchises acquired; the cost of all machinery and24 equipment, financing charges, interest prior to and during construction and for one year25 after completion of construction; the cost of engineering, architectural, fiscal agent, and26 legal expenses, and of plans and specifications and other expenses necessary or incident27 to determining the feasibility or practicability of the project, administrative expenses, and28 such other expenses as may be necessary or incident to the financing authorized in this29 article; the cost of the acquisition or construction of any project; and the cost of placing30 any project in operation. Any obligation or expense incurred for any of the foregoing31 purposes shall be regarded as a part of the cost of the project and may be paid or32 reimbursed as such out of the proceeds of revenue bonds issued under the provisions of33 this article for such projects.34 (4) 'Department' means the Department of Economic Development.35 (5) 'Economic development conveyance' shall have the same meaning as provided in 3236 C.F.R. Section 174.9(a).37 (6) 'Local government' means, individually or in combination, the City of Milledgeville,38 Baldwin County, or any development authority of either or both.39 (7) 'Project' includes:40 S. B. 260 - 2 - 25 LC 62 0126 (A) The land and any one or more buildings or structures located in or on the real41 property now or formerly occupied by Central State Hospital and the real property42 adjacent thereto to be used in education, parks and recreation, transportation,43 healthcare, research, housing, commerce, or the production, manufacturing, processing,44 assembling, storing, or handling of any agricultural, manufactured, mining, or industrial45 products or any combination of the foregoing or similar uses, in every case with all46 necessary or useful furnishings, machinery, equipment, parking facilities, landscaping,47 and facilities for outdoor storage, all as determined by the authority, which48 determination shall be final and not subject to review; and there may be included as part49 of any such project all improvements necessary to the full utilization thereof, including50 site preparation, roads and streets, sidewalks, water supply, outdoor lighting, belt line51 railroad sidings and lead tracks, bridges, causeways, terminals for railroad and52 automotive transportation, and transportation facilities incidental to the project;53 (B) The acquisition, construction, leasing, or equipping of new industrial facilities or54 the improvement, modification, acquisition, expansion, modernization, leasing,55 equipping, or remodeling of existing industrial or governmental facilities located or to56 be located in or on the property now or formerly occupied by Central State Hospital and57 the properties adjacent thereto;58 (C) The acquisition, construction, improvement, or modification of any property, real59 or personal, which any industrial concern might desire to use, acquire, or lease in60 connection with the operation of any plant or facility located or to be located in or on61 the property now or formerly occupied by Central State Hospital and the properties62 adjacent thereto; and63 (D) The acquisition and development of land in or on the property now or formerly64 occupied by Central State Hospital as the site for an educational facility, historic65 preservation site, commercial enterprise, entertainment facility, park or recreational66 facility, industrial park, transportation facility, healthcare facility, research facility,67 S. B. 260 - 3 - 25 LC 62 0126 residential project, or similar uses, provided that, as used in this subparagraph, the term68 'development of land' includes the provision of water, sewage, drainage, or similar69 facilities or transportation, power, or communication facilities which are incidental to70 use of the site as an educational facility, historic preservation site, commercial71 enterprise, entertainment facility, park or recreational facility, industrial park,72 transportation facility, healthcare facility, research facility, residential project, or similar73 use but, except with respect to such facilities, does not include the provision of74 structures or buildings.75 50-7-131.76 (a)(1) The department is authorized to acquire, construct, operate, maintain, expand, and77 improve a project for the purpose of promoting trade, commerce, industry, and78 employment opportunities within this state for the public good and general welfare and,79 without limitation of the foregoing, with the approval of the State Properties Commission,80 to acquire land for such purposes.81 (2) The department may pay the costs of the project from any lawful fund source82 available for the purpose, including, without limitation, where applicable, funds received83 by appropriation, proceeds of general obligation debt, funds of local government, grants84 of the United States or any agency or instrumentality thereof, gifts, and otherwise.85 (3) The project shall be located in Baldwin County, Georgia, and shall be known as the86 Central State Hospital Redevelopment Authority except that any facility included within87 the project may be otherwise designated.88 (b) A local government and the department are both authorized to contract with one89 another whereby the local government may exercise on behalf of the department such90 future responsibility in connection with the construction, operation, management, and91 maintenance of the project as is now or may be vested in the department; and the92 department is authorized by such contract to delegate to the local government93 S. B. 260 - 4 - 25 LC 62 0126 corresponding responsibilities and powers with respect to the project and to transfer to the94 local government any and all contracts, plans, documents, or other papers of the department95 relating to the project, as compensation to the local government under such contract. To96 the extent provided by such contract with the department, the local government on behalf97 of the department shall acquire, plan, construct, erect, repair, remodel, maintain, add to,98 extend, improve, equip, operate, and manage the project.99 (c) Without limiting the generality of any provision of this article, the general purpose of100 the local government under this article is declared to be that of acquiring, constructing,101 equipping, maintaining, and operating the project, in whole or in part, directly or under102 contract with the department and engaging in such other activities as it deems appropriate103 to promote the use of the project and the use of the industrial, agricultural, educational,104 historical, cultural, recreational, commercial, and natural resources of the State of Georgia105 by those using the project or visiting this state.106 (d) The department shall have the authority with the approval of the State Properties107 Commission to lease any improved or unimproved land or other property acquired by it108 under this Code section to the local government for a term not to exceed 50 years but upon109 such other terms and conditions as the department may determine necessary or convenient. 110 Any such lease may be for and in consideration of $1.00 annually for each calendar year111 or portion thereof paid in kind to and receipted for by the Office of the State Treasurer and112 in further consideration that such property be held, constructed, operated, maintained,113 expanded, or improved for the purposes for which the department was authorized to114 acquire such property. It is determined that such consideration is good and valuable and115 sufficient consideration for such lease and in the interest of the public welfare of the State116 of Georgia and its citizens.117 S. B. 260 - 5 - 25 LC 62 0126 50-7-132.118 (a) There is created a body corporate and politic to be known as the Central State Hospital119 Redevelopment Authority, which shall be deemed to be a political subdivision of the State120 of Georgia and a public corporation, and by that name, style, and title, said body may121 contract and be contracted with, sue and be sued, implead and be impleaded, and bring and122 defend actions in all courts. The authority shall have perpetual existence.123 (b)(1) The authority shall consist of four members, to be appointed in the following124 manner:125 (A) One member shall be appointed by the Governor;126 (B) One member shall be appointed by the President of the Senate;127 (C) One member shall be appointed by the Speaker of the House of Representatives;128 and129 (D) One member shall be appointed by the state property officer.130 (2) Persons so appointed shall serve for initial terms of office which shall expire on131 December 31 of the fourth year after their appointment. After the initial terms of office,132 members of the authority shall serve for terms of office of four years each. Members of133 the authority shall serve their respective terms of office specified in this subsection and134 until their respective successors are appointed and qualified. Any member of the135 authority may be appointed to succeed himself or herself. After such appointment, the136 members of such authority shall enter upon their duties. Any vacancy on the authority137 shall be filled in the same manner as was the original appointment of the member whose138 term of office resulted in such vacancy. A person appointed to fill a vacancy shall serve139 for the remainder of the unexpired term and until the appointment and qualification of a140 successor. The members of the authority shall be reimbursed, upon submission of sworn141 vouchers, for all actual expenses incurred in the performance of their duties out of funds142 of the authority but shall receive no further compensation. The authority shall make rules143 and regulations for its own government.144 S. B. 260 - 6 - 25 LC 62 0126 (3) To be eligible for appointment as a member of the authority, a person shall be at145 least 21 years of age and shall not have been convicted of a felony.146 (4) The members of the authority shall elect from their number a chairperson, vice147 chairperson, secretary, and treasurer. The secretary may also serve as treasurer. Each of148 such officers shall serve for a period of two years and until their successors are duly149 elected. The chairperson of the authority shall be entitled to vote upon any issue, motion,150 or resolution.151 (c) The authority may create subcommittees as it deems appropriate. The authority may152 appoint as members of the subcommittees such individuals from the community as the153 authority deems appropriate, and such members do not have to be members of the154 authority. The subcommittees shall serve in an advisory capacity to the authority. The155 chairperson of the authority shall choose from among the members of each subcommittee156 a person to serve as chairperson of that subcommittee. The chairpersons of the157 subcommittees shall serve four-year terms and shall be eligible for reappointment.158 (d) A majority of the members of the authority shall constitute a quorum. No vacancy on159 the authority shall impair the right of the quorum to exercise all of the rights and perform160 all of the duties of the authority.161 (e) A vacancy on the authority shall exist in the office of any member of the authority who162 is convicted of a felony or who enters a plea of nolo contendere thereto; who is convicted163 of a crime involving moral turpitude or who enters a plea of nolo contendere thereto; who164 is convicted of any act of misfeasance, malfeasance, or nonfeasance of such person's duties165 as a member of the authority; or who fails to attend three consecutive regular meetings of166 the authority without an excuse approved by a resolution of the authority.167 (f) All meetings of the authority, regular or special, shall be open to the public.168 (g) No member or employee of the authority shall have, directly or indirectly, any financial169 interest, profit, or benefit in any contract, work, or business of the authority nor in the sale,170 lease, or purchase of any property to or from the authority.171 S. B. 260 - 7 - 25 LC 62 0126 50-7-133.172 The general purpose of the authority is declared to be that of executing and administering173 the reuse plan for the property now or formerly occupied by Central State Hospital;174 executing economic development conveyances for such property now or formerly occupied175 by Central State Hospital resulting from the closure or realignment of Central State176 Hospital so as to ameliorate the impact of such closure or realignment on the communities177 and residents of the City of Milledgeville and Baldwin County; extending and improving178 such projects; acquiring the necessary property therefor, both real and personal, with the179 right to contract for the use of or to lease or sell any or all of such facilities, including real180 property, to any persons, firms, or corporations, whether public or private, if in the sole181 judgment of the authority such use, lease, or sale supports the general purposes of the182 authority; and doing all things deemed by the authority necessary, convenient, and183 desirable for and incident to the efficient and proper development and operation of such184 type of undertakings.185 50-7-134.186 (a) The authority shall have the power:187 (1) To have a seal and alter the same at its pleasure;188 (2) To acquire by purchase, lease, or otherwise, including acquisition of land from the189 state government, and to hold, lease, and dispose of real and personal property of every190 kind and character for its corporate purpose and to plan, acquire, establish, develop,191 construct, enlarge, improve, maintain, equip, and lease all projects which shall come192 under the control of the authority under the provisions of this article or which it may193 acquire or plan to acquire; to regulate, protect, and police such projects and all related194 activities and facilities; to enter into any contracts, leases, or other charges for the use of195 property or services of the authority and collect and use the same as necessary to operate196 S. B. 260 - 8 - 25 LC 62 0126 the projects under control of the authority; and to accomplish any of the purposes of this197 article and make any purchases or sales necessary for such purposes;198 (3) To acquire in its own name by purchase, on such terms and conditions and in such199 manner as it may deem proper, real property, or rights or easements therein, or franchises200 necessary or convenient for its corporate purpose, and to use the same so long as its201 corporate existence shall continue, and to lease or make contracts with respect to the use202 of such property, or dispose of the same in any manner it deems to be to the best203 advantage of the authority;204 (4) To appoint, select, and employ officers, agents, and employees, including real estate,205 environmental, engineering, architectural, and construction experts; fiscal agents; and206 attorneys, and to fix their respective compensations;207 (5) To make contracts and leases and to execute all instruments necessary or convenient,208 including contracts for construction of projects and leases of projects or contracts with209 respect to the use of projects which it causes to be constructed, erected, or acquired. Any210 and all persons, firms, and corporations and any and all political subdivisions,211 departments, institutions, or agencies of the state and federal government are authorized212 to enter into contracts, leases, or agreements with the authority upon such terms and for213 such purposes as they deem advisable; and, without limiting the generality of the214 foregoing, authority is specifically granted to municipal corporations, counties, political215 subdivisions, and the authority relative to entering into contracts, lease agreements, or216 other undertakings authorized between the authority and private corporations, both inside217 and outside this state, and between the authority and public bodies, including counties218 and cities outside this state and the federal government;219 (6) To construct, erect, acquire, own, repair, remodel, maintain, add to, extend, improve,220 equip, operate, and manage projects, the cost of the project to be paid in whole or in part221 from the proceeds of revenue bonds of the authority or from such proceeds and any grant222 S. B. 260 - 9 - 25 LC 62 0126 or contribution from the United States of America or any agency or instrumentality223 thereof or from the State of Georgia or any agency or instrumentality thereof;224 (7) To accept loans and grants of money or materials or property of any kind from the225 United States of America or any agency or instrumentality thereof upon such terms and226 conditions as the United States of America or such agency or instrumentality may227 require;228 (8) To accept loans and grants of money or materials or property of any kind from the229 State of Georgia or any agency or instrumentality or political subdivision thereof upon230 such terms and conditions as the State of Georgia or such agency or instrumentality or231 political subdivision may require;232 (9) To borrow money for any of its corporate purposes and to issue negotiable revenue233 bonds payable solely from funds pledged for the purpose and to provide for the payment234 of the same and for the rights of the holders thereof;235 (10) To exercise any power usually possessed by private corporations performing similar236 functions, including the power to make short-term loans and approve, execute, and237 deliver appropriate evidence of such indebtedness, provided that no such power is in238 conflict with the Constitution or general laws of this state;239 (11) To encourage and facilitate job training and housing rehabilitation programs for240 residents surrounding Central State Hospital; and241 (12) To do all things necessary or convenient to carry out the powers expressly given in242 this article.243 (b) The authority shall be assigned for administrative purposes to the department as244 provided for in Code Section 50-4-3.245 (c) The Attorney General shall provide legal services for the authority in the same manner246 provided for in Code Sections 45-15-13 through 45-15-16.247 S. B. 260 - 10 - 25 LC 62 0126 50-7-135.248 The authority, or any authority or body which had or which may in the future succeed to249 the powers, duties, and liabilities vested in the authority created by this article, is250 authorized to provide by resolution for the issuance of negotiable revenue bonds of the251 authority for the purpose of paying all or any part of the cost of the project of any one or252 more projects. The authority shall comply with Article 3 of Chapter 82 of Title 36, the253 'Revenue Bond Law,' when issuing bonds.254 50-7-136.255 (a) Each year the authority shall have made an independent audit and examination of the256 authority's financial records and transactions. Such audit shall be made in accordance with257 established national audit and accounting standards. Such audit shall be made on or before258 the one hundred-eightieth day following the end of the authority's fiscal year. Copies of259 such audit shall be available for public review and provided to the state auditor.260 (b) Annual audit reports of the authority shall contain at least:261 (1) Financial statements prepared in conformity with generally accepted national262 accounting principles, setting forth the financial condition and results of operation of each263 fund and activity of the authority; and264 (2) The opinion of the performing auditor with respect to the financial statement in265 addition to an explanation of any qualification or disclaimers contained in the opinion. 266 Such opinion shall also disclose, in accordance with generally accepted national auditing267 standards, any apparent or material violation of state law discovered during the audit.268 (c) The authority shall forward to the state auditor written comments on the findings and269 recommendations in the report, including a plan for corrective action taken or planned and270 comments on the status of the corrective action taken on prior findings.271 (d) The state auditor shall review the audit report and written comments submitted to the272 auditor's office to ensure that it conforms with generally accepted national auditing273 S. B. 260 - 11 - 25 LC 62 0126 principles. After review, the state auditor shall submit to the authority a list of deficiencies274 to be corrected.275 (e) Upon failure, refusal, or neglecting to have an annual audit made; a failure to file a276 copy of the audit report with the state auditor; or a failure to correct auditing deficiencies277 noted by the state auditor, the state auditor shall cause a prominent notice to be published278 in the legal organ of Baldwin County and in any other newspapers of general circulation279 within the City of Milledgeville. Such notice shall be a prominently displayed280 advertisement or news article and shall not be placed in the section of the newspaper where281 legal notices appear. Such notice shall be published twice and shall state that the authority282 has failed, refused, or neglected, as the case may be, to have an annual audit made, to file283 an audit report, or to correct auditing deficiencies, as the case may be, for the fiscal year284 or years in question. The notice shall further state that such failure, refusal, or neglect is285 a violation of law.286 50-7-137.287 It shall be the duty of the authority to prescribe rules and regulations for the operation of288 the project or projects constructed or acquired under the provisions of this article.289 50-7-138.290 It is found, determined, and declared that the creation of the authority and the carrying out291 of its corporate purpose is in all respects for the benefit of the people of this state; that the292 authority is an institution of purely public charity and will be performing an essential293 governmental function in the exercise of the power conferred upon it by this article; that294 this state covenants with the holders of the bonds; that the authority shall not be required295 to pay any taxes or assessments upon any of the property acquired or leased by it or under296 its jurisdiction, control, possession, or supervision or upon its activities in the operation or297 maintenance of the projects erected by it or any rates, fees, tolls, or other charges for the298 S. B. 260 - 12 - 25 LC 62 0126 use of such projects or other income received by the authority; and that the bonds of the299 authority, their transfer, and the income therefrom shall at all times be exempt from300 taxation within this state. The exemption from taxation provided for in this Code section301 shall not extend to tenants or lessees of the authority and shall not include exemptions from302 sales and use taxes on property purchased by the authority or for use by the authority.303 50-7-139.304 This article shall be regarded as supplemental and additional to powers conferred by other305 laws, and shall not be regarded as in derogation of any powers now existing.306 50-7-140.307 Any action to protect or enforce any rights under this article shall be brought in the308 Superior Court of Baldwin County.309 50-7-141.310 The property of the authority shall not be subject to levy and sale under legal process.311 312 50-7-142. 313 All funds received by the authority pursuant to this article, whether as revenue, rents, fees,314 charges, or other earnings or as grants, gifts, or other contributions, shall be deemed to be315 trust funds held and applied by the authority solely as provided in this article.316 50-7-143.317 This article shall be liberally construed to effect the purposes of this article.318 S. B. 260 - 13 - 25 LC 62 0126 50-7-144.319 (a) Should the authority for any reason be dissolved, title to all property of any kind and320 nature, real and personal, held by the authority at the time of such dissolution shall be321 conveyed to the State of Georgia; or title to any such property may be conveyed prior to322 such dissolution in accordance with provisions which may be made therefor in any323 resolution or trust instrument relating to such property, subject to any liens, leases, or other324 encumbrances outstanding against or in respect to such property at the time of such325 conveyance.326 (b) On July 1, 2025, all powers, duties, assets, real and personal property, liabilities, and327 indebtedness of the Central State Hospital Local Redevelopment Authority created by an328 Act to create the Central State Hospital Local Redevelopment Authority, approved329 February 29, 2012 (Ga. L. 2012, p. 3837), as amended, are transferred to the authority. The330 authority shall be the successor to the Central State Hospital Local Redevelopment331 Authority in all contracts entered into by the Central State Hospital Local Redevelopment332 Authority which are in existence on July 1, 2025, and to all accounts of and debts owed333 to the Central State Hospital Local Redevelopment Authority that are outstanding on July334 1, 2025."335 SECTION 2.336 All laws and parts of laws in conflict with this Act are repealed.337 S. B. 260 - 14 -