25 LC 62 0217S
The House Committee on Intragovernmental Coordination offers the following
substitute to SB 260:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 8 of Title 50 of the Official Code of Georgia Annotated, relating to1
Department of Community Affairs, so as to create the Central State Hospital Redevelopment2
Authority; to confer powers and impose duties on the authority; to provide for membership3
and appointment of members of the authority; to provide for terms of the members; to4
provide for meetings; to prohibit employees and members from having certain interests; to5
provide for revenue bonds; to provide for venue and jurisdiction; to provide for the6
authority's purpose; to provide for rules and regulations; to provide for tax exemptions; to7
provide for supplemental powers; to provide for liberal construction; to provide for successor8
interests; to provide for definitions; to provide for an effective date; to provide for related9
matters; to repeal conflicting laws; and for other purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
Chapter 8 of Title 50 of the Official Code of Georgia Annotated, relating to Department of13
Community Affairs, is amended by adding a new article to read as follows:14
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"ARTICLE 1415
50-8-310.16
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 Community Affairs.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)(A) 'Project' includes:40
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(i) The land and any one or more buildings or structures located in or on the real41
property formerly occupied by Central State Hospital and the real property adjacent42
thereto to be used in education, parks and recreation, transportation, healthcare,43
research, housing, commerce, or the production, manufacturing, processing,44
assembling, storing, or handling of any agricultural, manufactured, mining, or45
industrial products or any combination of the foregoing or similar uses, in every case46
with all necessary or useful furnishings, machinery, equipment, parking facilities,47
landscaping, and facilities for outdoor storage, all as determined by the authority,48
which determination shall be final and not subject to review; and there may be49
included as part of any such project all improvements necessary to the full utilization50
thereof, including site preparation, roads and streets, sidewalks, water supply, outdoor51
lighting, belt line railroad sidings and lead tracks, bridges, causeways, terminals for52
railroad and automotive transportation, and transportation facilities incidental to the53
project;54
(ii) The acquisition, construction, leasing, or equipping of new industrial facilities or55
the improvement, modification, acquisition, expansion, modernization, leasing,56
equipping, or remodeling of existing industrial or governmental facilities located or57
to be located in or on the property formerly occupied by Central State Hospital and58
the properties adjacent thereto;59
(iii) The acquisition, construction, improvement, or modification of any property, real60
or personal, which any industrial concern might desire to use, acquire, or lease in61
connection with the operation of any plant or facility located or to be located in or on62
the property formerly occupied by Central State Hospital and the properties adjacent63
thereto; and64
(iv) The acquisition and development of land in or on the property formerly occupied65
by Central State Hospital as the site for an educational facility, historic preservation66
site, commercial enterprise, entertainment facility, park or recreational facility,67
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industrial park, transportation facility, healthcare facility, research facility, residential68
project, or similar uses, provided that, as used in this division, the term 'development69
of land' includes the provision of water, sewage, drainage, or similar facilities or70
transportation, power, or communication facilities which are incidental to use of the71
site as an educational facility, historic preservation site, commercial enterprise,72
entertainment facility, park or recreational facility, industrial park, transportation73
facility, healthcare facility, research facility, residential project, or similar use but,74
except with respect to such facilities, does not include the provision of structures or75
buildings.76
(B) Such term excludes real property, personal property, and fixtures within the control77
of the Department of Behavioral Health and Developmental Disabilities and not78
declared surplus to its needs.79
50-8-311.80
(a)(1) The department is authorized to acquire, construct, operate, maintain, expand, and81
improve a project for the purpose of promoting trade, commerce, industry, and82
employment opportunities within this state for the public good and general welfare and,83
without limitation of the foregoing, with the approval of the State Properties Commission,84
to acquire land for such purposes.85
(2) The department may pay the costs of the project from any lawful fund source86
available for the purpose, including, without limitation, where applicable, funds received87
by appropriation, proceeds of general obligation debt, funds of local government, grants88
of the United States or any agency or instrumentality thereof, gifts, and otherwise.89
(3) The department shall consider the impact of any project on the current operations of90
Central State Hospital and consult the Department of Behavioral Health and91
Developmental Disabilities as needed.92
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(4) The project shall be located in Baldwin County, Georgia, and shall be known as the93
Central State Hospital Redevelopment Authority except that any facility included within94
the project may be otherwise designated.95
(b) A local government and the department are both authorized to contract with one96
another whereby the local government may exercise on behalf of the department such97
future responsibility in connection with the construction, operation, management, and98
maintenance of the project as is now or may be vested in the department; and the99
department is authorized by such contract to delegate to the local government100
corresponding responsibilities and powers with respect to the project and to transfer to the101
local government any and all contracts, plans, documents, or other papers of the department102
relating to the project, as compensation to the local government under such contract. To103
the extent provided by such contract with the department, the local government on behalf104
of the department shall acquire, plan, construct, erect, repair, remodel, maintain, add to,105
extend, improve, equip, operate, and manage the project.106
(c) Without limiting the generality of any provision of this article, the general purpose of107
the local government under this article is declared to be that of acquiring, constructing,108
equipping, maintaining, and operating the project, in whole or in part, directly or under109
contract with the department and engaging in such other activities as it deems appropriate110
to promote the use of the project and the use of the industrial, agricultural, educational,111
historical, cultural, recreational, commercial, and natural resources of the State of Georgia112
by those using the project or visiting this state.113
(d) The department shall have the authority with the approval of the State Properties114
Commission to lease any improved or unimproved land or other property acquired by it115
under this Code section to the local government for a term not to exceed 50 years but upon116
such other terms and conditions as the department may determine necessary or convenient. 117
Any such lease may be for and in consideration of $1.00 annually for each calendar year118
or portion thereof paid in kind to and receipted for by the Office of the State Treasurer and119
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in further consideration that such property be held, constructed, operated, maintained,120
expanded, or improved for the purposes for which the department was authorized to121
acquire such property. It is determined that such consideration is good and valuable and122
sufficient consideration for such lease and in the interest of the public welfare of the State123
of Georgia and its citizens.124
50-8-312.125
(a) There is created a body corporate and politic to be known as the Central State Hospital126
Redevelopment Authority, which shall be deemed to be a political subdivision of the State127
of Georgia and a public corporation, and by that name, style, and title, said body may128
contract and be contracted with, sue and be sued, implead and be impleaded, and bring and129
defend actions in all courts. The authority shall have perpetual existence.130
(b)(1) The authority shall consist of six members, to be appointed in the following131
manner:132
(A) Three members shall be appointed by the Governor. Two of the members 133
appointed by the Governor shall reside in Baldwin County;134
(B) One member shall be appointed by the President of the Senate;135
(C) One member shall be appointed by the Speaker of the House of Representatives;136
and137
(D) One nonvoting member shall be appointed by the state property officer.138
(2) Persons so appointed shall serve for initial terms of office which shall expire on139
December 31 of the fourth year after their appointment. After the initial terms of office,140
members of the authority shall serve for terms of office of four years each. Members of141
the authority shall serve their respective terms of office specified in this subsection and142
until their respective successors are appointed and qualified. Any member of the143
authority may be appointed to succeed himself or herself. After such appointment, the144
members of such authority shall enter upon their duties. Any vacancy on the authority145
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shall be filled in the same manner as was the original appointment of the member whose146
term of office resulted in such vacancy. A person appointed to fill a vacancy shall serve147
for the remainder of the unexpired term and until the appointment and qualification of a148
successor. The members of the authority shall be reimbursed, upon submission of sworn149
vouchers, for all actual expenses incurred in the performance of their duties out of funds150
of the authority, with a maximum reimbursement of $100.00 per meeting for no more151
than three meetings per month. The authority shall make rules and regulations for its own152
government.153
(3) To be eligible for appointment as a member of the authority, a person shall be at154
least 21 years of age and shall not have been convicted of a felony.155
(4) The members of the authority shall elect from their number a chairperson, vice156
chairperson, secretary, and treasurer. The secretary may also serve as treasurer. Each of157
such officers shall serve for a period of two years and until their successors are duly158
elected. The chairperson of the authority shall be entitled to vote upon any issue, motion,159
or resolution.160
(c) The authority may create subcommittees as it deems appropriate. The authority may161
appoint as members of the subcommittees such individuals from the community as the162
authority deems appropriate, and such members do not have to be members of the163
authority. The subcommittees shall serve in an advisory capacity to the authority. The164
chairperson of the authority shall choose from among the members of each subcommittee165
a person to serve as chairperson of that subcommittee. The chairpersons of the166
subcommittees shall serve four-year terms and shall be eligible for reappointment.167
(d) A majority of the members of the authority shall constitute a quorum. No vacancy on168
the authority shall impair the right of the quorum to exercise all of the rights and perform169
all of the duties of the authority.170
(e) A vacancy on the authority shall exist in the office of any member of the authority who171
is convicted of a felony or who enters a plea of nolo contendere thereto; who is convicted172
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of a crime involving moral turpitude or who enters a plea of nolo contendere thereto; who173
is convicted of any act of misfeasance, malfeasance, or nonfeasance of such person's duties174
as a member of the authority; or who fails to attend three consecutive regular meetings of175
the authority without an excuse approved by a resolution of the authority.176
(f) All meetings of the authority, regular or special, shall be open to the public.177
(g) No member or employee of the authority shall have, directly or indirectly, any financial178
interest, profit, or benefit in any contract, work, or business of the authority nor in the sale,179
lease, or purchase of any property to or from the authority.180
50-8-313.181
The general purpose of the authority is declared to be that of executing and administering182
the reuse plan for the property formerly occupied by Central State Hospital; executing183
economic development conveyances for such property formerly occupied by Central State184
Hospital resulting from the closure or realignment of Central State Hospital so as to185
ameliorate the impact of such closure or realignment on the communities and residents of186
the City of Milledgeville and Baldwin County; extending and improving such projects;187
acquiring the necessary property therefor, both real and personal, with the right to contract188
for the use of or to lease or sell any or all of such facilities, including real property, to any189
persons, firms, or corporations, whether public or private, if in the sole judgment of the190
authority such use, lease, or sale supports the general purposes of the authority; and doing191
all things deemed by the authority necessary, convenient, and desirable for and incident to192
the efficient and proper development and operation of such type of undertakings.193
50-8-314.194
(a) The authority shall have the power:195
(1) To have a seal and alter the same at its pleasure;196
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(2) To acquire by purchase, lease, or otherwise, including acquisition of land from the197
state government, and to hold, lease, and dispose of real and personal property of every198
kind and character for its corporate purpose and to plan, acquire, establish, develop,199
construct, enlarge, improve, maintain, equip, and lease all projects which shall come200
under the control of the authority under the provisions of this article or which it may201
acquire or plan to acquire; to regulate, protect, and police such projects and all related202
activities and facilities; to enter into any contracts, leases, or other charges for the use of203
property or services of the authority and collect and use the same as necessary to operate204
the projects under control of the authority; and to accomplish any of the purposes of this205
article and make any purchases or sales necessary for such purposes;206
(3) To acquire in its own name by purchase, on such terms and conditions and in such207
manner as it may deem proper, real property, or rights or easements therein, or franchises208
necessary or convenient for its corporate purpose, and to use the same so long as its209
corporate existence shall continue, and to lease or make contracts with respect to the use210
of such property, or dispose of the same in any manner it deems to be to the best211
advantage of the authority;212
(4) To appoint, select, and employ officers, agents, and employees, including real estate,213
environmental, engineering, architectural, and construction experts; fiscal agents; and214
attorneys, and to fix their respective compensations;215
(5) To make contracts and leases and to execute all instruments necessary or convenient,216
including contracts for construction of projects and leases of projects or contracts with217
respect to the use of projects which it causes to be constructed, erected, or acquired. Any218
and all persons, firms, and corporations and any and all political subdivisions,219
departments, institutions, or agencies of the state and federal government are authorized220
to enter into contracts, leases, or agreements with the authority upon such terms and for221
such purposes as they deem advisable; and, without limiting the generality of the222
foregoing, authority is specifically granted to municipal corporations, counties, political223
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subdivisions, and the authority relative to entering into contracts, lease agreements, or224
other undertakings authorized between the authority and private corporations, both inside225
and outside this state, and between the authority and public bodies, including counties226
and cities outside this state and the federal government;227
(6) To construct, erect, acquire, own, repair, remodel, maintain, add to, extend, improve,228
equip, operate, and manage projects, the cost of the project to be paid in whole or in part229
from the proceeds of revenue bonds of the authority or from such proceeds and any grant230
or contribution from the United States of America or any agency or instrumentality231
thereof or from the State of Georgia or any agency or instrumentality thereof;232
(7) To accept loans and grants of money or materials or property of any kind from the233
United States of America or any agency or instrumentality thereof upon such terms and234
conditions as the United States of America or such agency or instrumentality may235
require;236
(8) To accept loans and grants of money or materials or property of any kind from the237
State of Georgia or any agency or instrumentality or political subdivision thereof upon238
such terms and conditions as the State of Georgia or such agency or instrumentality or239
political subdivision may require;240
(9) To borrow money for any of its corporate purposes and to issue negotiable revenue241
bonds payable solely from funds pledged for the purpose and to provide for the payment242
of the same and for the rights of the holders thereof;243
(10) To exercise any power usually possessed by private corporations performing similar244
functions, including the power to make short-term loans and approve, execute, and245
deliver appropriate evidence of such indebtedness, provided that no such power is in246
conflict with the Constitution or general laws of this state;247
(11) To encourage and facilitate job training and housing rehabilitation programs for248
residents surrounding Central State Hospital; and249
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(12) To do all things necessary or convenient to carry out the powers expressly given in250
this article.251
(b) The authority shall be assigned for administrative purposes to the department as252
provided for in Code Section 50-4-3.253
(c) The Attorney General shall provide legal services for the authority in the same manner254
provided for in Code Sections 45-15-13 through 45-15-16.255
50-8-315.256
The authority, or any authority or body which had or which may in the future succeed to257
the powers, duties, and liabilities vested in the authority created by this article, is258
authorized to provide by resolution for the issuance of negotiable revenue bonds of the259
authority for the purpose of paying all or any part of the cost of the project of any one or260
more projects. The authority shall comply with Article 3 of Chapter 82 of Title 36, the261
'Revenue Bond Law,' when issuing bonds.262
50-8-316.263
(a) Each year the authority shall have made an independent audit and examination of the264
authority's financial records and transactions. Such audit shall be made in accordance with265
established national audit and accounting standards. Such audit shall be made on or before266
the one hundred-eightieth day following the end of the authority's fiscal year. Copies of267
such audit shall be available for public review and provided to the state auditor.268
(b) Annual audit reports of the authority shall contain at least:269
(1) Financial statements prepared in conformity with generally accepted national270
accounting principles, setting forth the financial condition and results of operation of each271
fund and activity of the authority; and272
(2) The opinion of the performing auditor with respect to the financial statement in273
addition to an explanation of any qualification or disclaimers contained in the opinion. 274
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Such opinion shall also disclose, in accordance with generally accepted national auditing275
standards, any apparent or material violation of state law discovered during the audit.276
(c) The authority shall forward to the state auditor written comments on the findings and277
recommendations in the report, including a plan for corrective action taken or planned and278
comments on the status of the corrective action taken on prior findings.279
(d) The state auditor shall review the audit report and written comments submitted to the280
auditor's office to ensure that it conforms with generally accepted national auditing281
principles. After review, the state auditor shall submit to the authority a list of deficiencies282
to be corrected.283
(e) Upon failure, refusal, or neglecting to have an annual audit made; a failure to file a284
copy of the audit report with the state auditor; or a failure to correct auditing deficiencies285
noted by the state auditor, the state auditor shall cause a prominent notice to be published286
in the legal organ of Baldwin County and in any other newspapers of general circulation287
within the City of Milledgeville. Such notice shall be a prominently displayed288
advertisement or news article and shall not be placed in the section of the newspaper where289
legal notices appear. Such notice shall be published twice and shall state that the authority290
has failed, refused, or neglected, as the case may be, to have an annual audit made, to file291
an audit report, or to correct auditing deficiencies, as the case may be, for the fiscal year292
or years in question. The notice shall further state that such failure, refusal, or neglect is293
a violation of law.294
50-8-317.295
It shall be the duty of the authority to prescribe rules and regulations for the operation of296
the project or projects constructed or acquired under the provisions of this article.297
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50-8-318.298
It is found, determined, and declared that the creation of the authority and the carrying out299
of its corporate purpose is in all respects for the benefit of the people of this state; that the300
authority is an institution of purely public charity and will be performing an essential301
governmental function in the exercise of the power conferred upon it by this article; that302
this state covenants with the holders of the bonds; that the authority shall not be required303
to pay any taxes or assessments upon any of the property acquired or leased by it or under304
its jurisdiction, control, possession, or supervision or upon its activities in the operation or305
maintenance of the projects erected by it or any rates, fees, tolls, or other charges for the306
use of such projects or other income received by the authority; and that the bonds of the307
authority, their transfer, and the income therefrom shall at all times be exempt from308
taxation within this state. The exemption from taxation provided for in this Code section309
shall not extend to tenants or lessees of the authority and shall not include exemptions from310
sales and use taxes on property purchased by the authority or for use by the authority.311
50-8-319.312
This article shall be regarded as supplemental and additional to powers conferred by other313
laws, and shall not be regarded as in derogation of any powers now existing.314
50-8-320.315
Any action to protect or enforce any rights under this article shall be brought in the316
Superior Court of Baldwin County.317
50-8-321.318
The property of the authority shall not be subject to levy and sale under legal process.319
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50-8-322.320
All funds received by the authority pursuant to this article, whether as revenue, rents, fees,321
charges, or other earnings or as grants, gifts, or other contributions, shall be deemed to be322
trust funds held and applied by the authority solely as provided in this article.323
50-8-323.324
This article shall be liberally construed to effect the purposes of this article.325
50-8-324.326
(a) Should the authority for any reason be dissolved, title to all property of any kind and327
nature, real and personal, held by the authority at the time of such dissolution shall be328
conveyed to the State of Georgia; or title to any such property may be conveyed prior to329
such dissolution in accordance with provisions which may be made therefor in any330
resolution or trust instrument relating to such property, subject to any liens, leases, or other331
encumbrances outstanding against or in respect to such property at the time of such332
conveyance.333
(b) All powers, duties, assets, real and personal property, liabilities, and indebtedness of334
the Central State Hospital Local Redevelopment Authority created by an Act to create the335
Central State Hospital Local Redevelopment Authority, approved February 29, 2012 (Ga.336
L. 2012, p. 3837), as amended, are transferred to the authority. The authority shall be the337
successor to the Central State Hospital Local Redevelopment Authority in all contracts338
entered into by the Central State Hospital Local Redevelopment Authority which are in339
existence on the effective date of this Act and to all accounts of and debts owed to the340
Central State Hospital Local Redevelopment Authority that are outstanding on the effective341
date of this Act."342
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SECTION 2.343
This Act shall become effective upon its approval by the Governor or upon its becoming law344
without such approval.345
SECTION 3.346
All laws and parts of laws in conflict with this Act are repealed. 347
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