Georgia-2011-HB604-Introduced

To create the Lower Chattahoochee Regional Transportation Authority; to provide for a short title; to confer powers and impose duties on the authority; to provide for the membership and the appointment of members of the authority and their terms of office, qualifications, duties, powers, and compensation; to provide for vacancies, organization, meetings, and expenses; to provide for definitions; to provide for revenue bonds and their form, signatures thereon, negotiability, sale, and use of proceeds from such sales; to provide for interim documents and for lost or mutilated documents; to provide for conditions for issuance; to prohibit the pledge of credit for the payment of bonds; to provide for trust indentures and a sinking fund; to provide for payment of bond proceeds; to provide for bondholder remedies and protections; to provide for refunding bonds; to provide for bond validation; to provide for venue and jurisdiction; to provide rules and regulations; to provide for tort immunity; to provide for supplemental powers; to provide for effect on other governments; to provide for liberal construction; to provide for an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Short title.

This Act shall be known and may be cited as the "Lower Chattahoochee Regional Transportation Authority Act."

SECTION 2.
Lower Chattahoochee Regional Transportation Authority.

(a) There is created a body corporate and politic to be known as the Lower Chattahoochee Regional Transportation Authority, which shall be deemed to be a political subdivision of the State of Georgia and a public corporation and instrumentality by that name, style, and title, and said body may contract and be contracted with, sue and be sued, implead and be impleaded, and complain and defend in all courts of law and equity, except that the authority or the trustee acting under a trust indenture shall in no event be liable for any torts committed by any of the officers, agents, and employees of the authority. The authority shall not be a state institution, nor a department or agency of the state, but shall be a political subdivision of the state having a distinct corporate entity and being exempt from the provisions of Article 2 of Chapter 17 of Title 50 of the O.C.G.A., the "Georgia State Financing and Investment Commission Act." The authority is granted the same exemptions and exclusions from taxes as are now granted to cities and counties.

(b) The authority shall consist of seven members who shall be appointed as follows: Two members shall be appointed by each of the governing bodies of Stewart, Quitman, and Randolph counties. Each member shall serve for a term of four years, except that one of the two initial members appointed by each of the governing bodies shall serve for two years. Each member shall be a resident of the county making the appointment. The six members so appointed shall appoint the seventh member, who shall be a resident of Stewart, Quitman, or Randolph County, for a term of office of four years. Members of the authority shall serve the terms specified and until their respective successors are appointed and qualified; provided, however, that any member of the authority may be removed at any time by the governing authority which appointed such member, with or without cause. Any member of the authority may be selected and appointed to succeed himself or herself. Any vacancy on the authority shall be filled in the same manner as was the original appointment of the member whose term of membership resulted in such vacancy and the person so selected and appointed shall serve for the remainder of the unexpired term. The members of the authority shall be reimbursed for all actual expenses incurred in the performance of their duties out of funds of the authority. The authority shall make rules and regulations for its own government. The authority shall have perpetual existence.

(c) To be eligible for appointment as a member of the authority, a person shall satisfy the requirements of Code Section 45-2-1 of the O.C.G.A.

(d) The authority shall elect one of its members as chairperson and another member as vice chairperson. The authority shall elect a secretary and a treasurer, or a secretary-treasurer, who need not be members of the authority.

(e) A majority of the members of the authority shall constitute a quorum. No vacancy on the authority shall impair the right of the quorum to exercise all the rights and perform all the duties of the authority.

(f) The authority shall make rules and regulations for its own government.

SECTION 3.
Definitions.

As used in this Act, the term:

(1) "Authority" means the Lower Chattahoochee Regional Transportation Authority created by this Act.

(2) "Cost of the project" means the cost of construction; the cost of all lands, properties, rights, easements, and franchises acquired; the cost of all machinery and equipment; financing charges and interest prior to and during construction and for one year after completion of construction; the cost of engineering, architectural, fiscal agents, and legal expenses, and of plans and specifications and other expenses necessary or incident to determining the feasibility or practicability of the project; administrative expenses and such other expenses as may be necessary or incident to the financing authorized by this Act; the cost of the acquisition and construction of any project; and the cost of placing any project in operation. Any obligation or expense incurred for any of the foregoing shall be regarded as part of the cost of the project and may be paid or reimbursed as such out of the proceeds of revenue bonds or notes under the provisions of this Act for such project.

(3) "Project" means and includes the acquisition, construction, equipping, maintenance, and operation of any transportation facility, including, but not limited to, storage facilities for equipment; the provision of transportation services; and the acquisition, equipping and maintenance of equipment and materials necessary to maintain all modes of transportation and to provide transportation services, including the mining of natural materials to be used in roadway construction and stabilization and including the purchase and maintenance of vehicles for the delivery of transportation services. A project may be composed of real or personal property, equipment, fixtures, machinery, and other property of any nature whatsoever used or useful in connection with providing transportation services or modes of transportation.

(4) "Revenue bonds," "bonds," or "obligations" means revenue bonds or obligations as defined and provided for in Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the "Revenue Bond Law," and such type of obligations may be issued by the authority as authorized under said Revenue Bond Law and any amendments thereto and, in addition, shall also mean obligations of the authority, the issuance of which are specifically provided for in this Act.

(5) "Self-liquidating" means the revenues and earnings of any project to be derived by the authority therefrom and all properties used, leased, and sold in connection therewith will be sufficient, in the judgment of the authority, to pay the cost of operating, maintaining, repairing, improving, and extending the project and to pay the principal of and interest on the revenue bonds or notes which may be issued to finance, in whole or in part, the cost of such project; provided, however, the authority, in its sole judgment, shall determine if a project is deemed to be self-liquidating.

The authority shall have the power:

(1) To have a seal and alter the same at its pleasure;

(2) To acquire by purchase, lease, or otherwise and to hold, lease, and dispose of real and personal property of every kind and character for its corporate purposes;

(3) To acquire in its own name by purchase, on such terms and conditions and in such manner as it may deem proper, real property, rights, or easements therein or franchises necessary or convenient for its corporate purposes; to use the same so long as its corporate existence shall continue; and to lease or make contracts with respect to the use of or to dispose of the same in any manner it deems to the best advantage of the authority; provided, however, no property shall be acquired under the provisions of this Act upon which any lien or other encumbrance exists, unless at the time such property is so acquired a sufficient sum of money is deposited in trust to pay and redeem the fair value of such lien or encumbrance;

(4) To appoint, select, and employ officers, agents, and employees including engineering, architectural, and construction experts, fiscal agents, and attorneys and to fix their respective compensations;

(5) To make contracts and leases and to execute all instruments necessary or convenient, including contracts for construction of projects and leases of projects or contracts with respect to the use of projects which it causes to be erected or acquired; and any and all persons, firms, and corporations and any and all political subdivisions, departments, institutions, or agencies of the state are authorized to enter into contracts, leases, or agreements with the authority upon such terms for such purposes as they deem advisable; and, without limiting the generality of the above, authority is specifically granted to municipal corporations, counties, and the authority to enter into contracts, lease agreements, or other undertakings relative to the furnishing of services and facilities by the authority to such municipal corporations and counties or relative to the furnishing of facilities and services by municipal corporations, counties, corporations, or individuals to the authority for a term of not exceeding 50 years;

(6) To plan, design, construct, erect, acquire, own, lease, repair, remodel, maintain, add to, extend, improve, equip, operate, and manage projects, the cost of any such project to be paid in whole or in part from the proceeds of revenue bonds, notes, or other funds of the authority, from the contracting for services, or from such proceeds or other funds and any grant from the United States or the State of Georgia or any political subdivision, agency, or instrumentality of either;

(7) To accept loans and grants of money or materials or property of any kind from the United States or any agency or instrumentality thereof, upon such terms and conditions as the United States or any agency or instrumentality thereof may impose;

(8) To accept loans and grants of money or materials or property of any kind from the State of Georgia or any agency or instrumentality or political subdivision thereof, upon such terms and conditions as the State of Georgia or any agency or instrumentality or political subdivision thereof may impose;

(9) To borrow money for any of its corporate purposes, to execute notes or other evidences of such indebtedness, to secure the same, to issue revenue bonds payable solely from funds pledged for that purpose, and to provide for the payment of the same and for the rights of holders thereof;

(10) To sell, lease, grant, exchange, or otherwise dispose of any surplus property, both real and personal, or interest therein not required in the normal operation of or not usable in the furtherance of the purpose for which the authority was created;

(11) To borrow money for any of its corporate purposes from any bank, banks, or other lending institutions; to execute notes or other evidences of such indebtedness; and to secure the same by assigning all rights and pledging all funds to be received by the authority from a contract or lease entered into by the authority and any political subdivision or governmental body;

(12) To exercise any power which is usually possessed by private corporations performing similar functions and which is not in conflict with the Constitution and laws of this state; and

(13) To do all things necessary or convenient to carry out the powers expressly given in this Act.

SECTION 5.
Revenue bonds.

The authority, or any authority or body which has or which may in the future succeed to the powers, duties, and liabilities vested in the authority created by this Act, is authorized to provide by resolution for the issuance of negotiable revenue bonds of the authority for the purpose of paying all or any part of the cost, as defined in this Act, of any one or more projects. The principal of and interest on such revenue bonds shall be payable solely from the special fund provided in this Act for such payment. The bonds of each issue shall be dated, shall bear interest at such rate or rates per annum, payable at such time or times, shall mature at such time or times not exceeding 40 years from their date or dates, shall be payable in such medium of payment as to both principal and interest as may be determined by the authority, and may be redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority.

SECTION 6.
Revenue bonds; form; denomination; registration; place of payment.

The authority shall determine the form of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest thereon, which may be at any bank or trust company inside or outside the state. The bonds may be issued in coupon or registered form, or both, as the authority may determine, and provision may be made for the registration of any coupon bond as to principal alone and also to both principal and interest.

SECTION 7.
Revenue bonds; signatures; seal.

In case any officer whose signature shall appear on any bonds or whose facsimile signature shall appear on any coupon shall cease to be such officer before the delivery of such bonds, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. All such bonds shall be signed by the chairperson of the authority and the official seal of the authority shall be affixed thereto and attested by the secretary of the authority and any coupons attached thereto shall bear the facsimile signatures of the chairperson and the secretary of the authority. Any coupon may bear the facsimile signatures of such persons and any bond may be signed, sealed, and attested on behalf of the authority by such persons as at the actual time of execution of such bonds shall be duly authorized or hold the proper office, although at the date of such bonds such person may not have been so authorized or shall not have held such office.

SECTION 8.
Revenue bonds; negotiability; exemption from taxation.

All revenue bonds issued under the provisions of this Act shall have and are declared to have all the qualities and incidents of negotiable instruments under the laws of this state. Such bonds, their transfer, and the income therefrom shall be exempt from all taxation of this state.

SECTION 9.
Revenue bonds; sale; price; proceeds.

The authority may sell such bonds in such manner and for such price as it may determine to be for the best interest of the authority. The proceeds derived from the sale of such bonds shall be used solely for the purpose or purposes provided in the resolutions and proceedings authorizing the issuance of such bonds.

SECTION 10.
Revenue bonds; interim receipts and certificates or temporary bonds.

Prior to the preparation of any definitive bonds, the authority may, under like restrictions, issue interim receipts, interim certificates, or temporary bonds, with or without coupons, exchangeable for definitive bonds upon the issuance of the latter.

SECTION 11.
Revenue bonds; replacement of lost or mutilated bonds.

The authority may provide for the replacement of any bonds or coupons which shall become mutilated or be destroyed or lost.

SECTION 12.
Revenue bonds; conditions precedent to issuance.

Such revenue bonds may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions, and things which are specified or required by this Act or Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the "Revenue Bond Law." In the discretion of the authority, revenue bonds of a single issue may be issued for the purpose of any particular project. Any resolution providing for the issuance of revenue bonds under the provisions of this Act shall become effective immediately upon its passage and need not be published or posted, and any such resolution may be passed at any regular or special meeting of the authority by a majority of its members.

SECTION 13.
Credit not pledged.

Revenue bonds issued under the provisions of this Act shall not be deemed to constitute a debt of Stewart, Quitman, or Randolph County nor a pledge of the faith and credit of any of said counties; but such bonds shall be payable solely from the fund provided for in this Act and the issuance of such revenue bonds shall not directly, indirectly, or contingently obligate said counties to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. All such bonds shall contain recitals on their face covering substantially the foregoing provisions of this section.

SECTION 14.
Trust indenture as security.

In the discretion of the authority, any issuance of such revenue bonds may be secured by a trust indenture by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company inside or outside the state. Such trust indenture may pledge or assign fees, tolls, revenues, and earnings to be received by the authority. Either the resolution providing for the issuance of revenue bonds or such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the acquisition of property, the construction of the project, the maintenance, operation, repair, and insuring of the project, and the custody, safekeeping, and application of all moneys, and may also provide that any project shall be constructed and paid for under the supervision and approval of consulting engineers or architects employed or designated by the authority, and satisfactory to the original purchasers of the bonds issued therefor, and may also require that the security given by contractors and by any depository of the proceeds of the bonds or revenues or other moneys be satisfactory to such purchasers, and may also contain provisions concerning the conditions, if any, upon which additional revenue bonds may be issued. It shall be lawful for any bank or trust company incorporated under the laws of this state to act as such depository and to furnish such indemnifying bonds or pledge such securities as may be required by the authority. Such indenture may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporations. In addition to the foregoing, such trust indenture may contain such other provisions as the authority may deem reasonable and proper for the security of bondholders. All expenses incurred in carrying out such trust indenture may be treated as part of the cost of maintenance, operation, and repair of the project affected by such indenture.

SECTION 15.
To whom proceeds of bond shall be paid.

In the resolution providing for the issuance of revenue bonds or in the trust indenture, the authority shall provide for the payment of the proceeds of the sale of the bonds to any officer or person who, or any agency, bank, or trust company which, shall act as trustee of such funds and shall hold and apply the same to the purposes of this Act, subject to such regulations as this Act and such resolution or trust indenture may provide.

SECTION 16.
Sinking fund.

(a) The revenues, fees, tolls, and earnings derived from any particular project or projects, regardless of whether or not such fees, earnings, and revenues were produced by a particular project for which bonds have been issued, unless otherwise pledged and allocated, may be pledged and allocated by the authority to the payment of the principal and interest on revenue bonds of the authority as the resolution authorizing the issuance of the bonds or the trust instrument may provide. Such funds so pledged from whatever source received, including funds received from one or more or all sources, shall be set aside at regular intervals as may be provided in the resolution or trust indenture into a sinking fund which shall be pledged to and charged with the payment of:

(1) The interest upon such revenue bonds as such interest shall fall due;

(2) The principal of the bonds as the same shall fall due;

(3) The necessary charges of paying agents for paying principal and interest and other investment charges;

(4) Any premium upon bonds retired by call or purchase as provided in this Act; and

(5) Any investment fees or charges.

(b) The use and disposition of such sinking fund shall be subject to such regulations as may be provided in the resolution authorizing the issuance of the revenue bonds or in the trust indenture but, except as may otherwise be provided in such resolution or trust indenture, such sinking fund shall be maintained as a trust account for the benefit of all revenue bonds without distinction or priority of one over another. Subject to the provisions of the resolution authorizing the issuance of the bonds or the trust indenture, any surplus moneys in the sinking fund may be applied to the purchase or redemption of bonds, and any such bonds so purchased or redeemed shall forthwith be canceled and shall not again be issued.

SECTION 17.
Remedies of bondholders.

Any holder of revenue bonds issued under the provisions of this Act or any of the coupons appertaining thereto and the trustee under the trust indenture, if any, except to the extent the rights given in this Act may be restricted by resolution passed before the issuance of the bonds or by the trust indenture, may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce any and all rights under the laws of this state or granted under this Act or under such resolution or trust indenture and may enforce and compel performance of all duties required by this Act or by such resolution or trust indenture to be performed by the authority or any officer thereof, including the fixing, charging, and collecting of revenues, fees, tolls, and other charges for the use of the facilities and services furnished.

SECTION 18.
Refunding bonds.

The authority is authorized to provide by resolution for the issuance of bonds of the authority for the purpose of funding or refunding any revenue bonds issued under the provisions of this Act and then outstanding, together with accrued interest thereon and premium, if any. The issuance of such funding or refunding bonds, the maturities and all other details thereof, the rights of the holders thereof, and the duties of the authority in respect to the same shall be governed by the foregoing provisions of this Act insofar as the same may be applicable.

SECTION 19.
Validation.

Bonds of the authority shall be confirmed and validated in accordance with the procedure of Article 3 of Chapter 82 of Title 36 of the O.C.G.A., known as the "Revenue Bond Law." The petition for validation shall also make party defendant to such action the State of Georgia and any municipality, county, authority, political subdivision, or instrumentality of the State of Georgia which has contracted with the authority for the services and facilities of the project for which bonds are to be issued and sought to be validated, and the state and such municipality, county, authority, political subdivision, or instrumentality shall be required to show cause, if any exists, why such contract or contracts and the terms and conditions thereof should not be inquired into by the court and the contract or contracts adjudicated as a part of the basis for the security for the payment of any such bonds of the authority. The bonds, when validated, and the judgment of validation shall be final and conclusive with respect to such bonds, and the security for the payment thereof and interest thereon and against the authority issuing the same and the state and any municipality, county, authority, political subdivision, or instrumentality, if a party to the validation proceedings, contracting with the authority.

SECTION 20.
Venue and jurisdiction.

Any action to protect or enforce any rights under the provisions of this Act or any suit or action against such authority shall be brought in the Superior Court of Randolph County, Georgia; and any action pertaining to validation of any bonds issued under the provisions of this Act shall likewise be brought in said court which shall have exclusive, original jurisdiction of such actions.

SECTION 21.
Interest of bondholders protected.

While any of the bonds issued by the authority remain outstanding, the power, duties, or existence of said authority or its officers, employees, or agents shall not be diminished or impaired in any manner that will affect adversely the interest and rights of the holders of such bonds. No other entity, department, agency, or authority will be created which will compete with the authority to such an extent as to affect adversely the interest and rights of the holders of such bonds, nor will the state itself so compete with the authority. The provisions of this Act shall be for the benefit of the authority and the holders of any such bonds, and, upon the issuance of bonds under the provisions hereof, shall constitute a contract with the holders of such bonds.

SECTION 22.
Moneys received considered trust funds.

All moneys received pursuant to the authority of this Act, whether as proceeds from the sale of revenue bonds, as grants or other contributions, or as revenue, income, fees, and earnings, shall be deemed to be trust funds to be held and applied solely as provided in this Act.

SECTION 23.
Rates, charges, and revenues; use.

The authority is authorized to prescribe and fix rates and to revise the same from time to time and to collect fees, tolls, and charges for the services, facilities, and commodities furnished and, in anticipation of the collection of revenues of such undertaking or project, to issue revenue bonds as provided in this Act to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of any project and to pledge to the punctual payment of said bonds and interest thereon, all or any part of the revenues of such undertaking or project, including the revenues of improvements, betterments, or extensions thereto thereafter made.

SECTION 24.
Rules and regulations for operation of projects.

It shall be the duty of the authority to prescribe rules and regulations for the operation of the project or projects constructed or acquired under the provisions of this Act.

SECTION 25.
Tort immunity.

The authority shall have the same immunity and exemption from liability for torts and negligence as Stewart, Quitman, or Randolph County and the officers, agents, and employees of the authority, when in the performance of the work of the authority, shall have the same immunity and exemption from liability for torts and negligence as the officers, agents, and employees of Stewart, Quitman, or Randolph County as when in the performance of their public duties or work of such county.