GeorgiaHB 5362025-2026 Regular SessionHouse

Public Facilities Authority of the City of Fairburn Act; enact

Sponsored By: Lydia Glaize (Democrat), Derrick Jackson (Democrat)

Signed by Governor

Intragovernmental CoordinationState and Local Governmental OperationsLocal Bill

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 1 costs, 4 mixed.

Fairburn bond investors get tax protections

Bonds and other obligations issued under this law, along with their interest, are exempt from taxation within Georgia. The law also protects holders of outstanding authority bonds, obligations, and contract interests. Changes cannot weaken the authority's powers, duties, or existence in ways that harm those holders' rights. This protection becomes a contract when obligations are issued or contract interests are created.

Fairburn gains a public facilities authority

The law creates a lasting public authority to finance, build, improve, and provide Fairburn facilities, equipment, and services. Projects can include utilities, emergency services, recreation, schools, libraries, and government buildings, and must serve a public purpose. Fairburn Development Authority members also govern this authority, without pay but with repayment of actual expenses. Operations are limited to Fairburn, but contracts can cover outside projects that further its public purposes. Before dissolution, remaining assets must go to public bodies after all debts are paid and leases, contracts, and options end. The act takes effect upon gubernatorial approval or becoming law without approval.

Fairburn authority gets property tax exemptions

Covered property and property interests owned, acquired, controlled, possessed, or supervised by the authority are exempt from property taxes. The exemption also covers taxes or assessments on covered operations and income, including rents from project leases and subleases. Sales and use taxes still apply to purchases by or for the authority. This is an authority tax exemption, not a household tax break.

Fairburn authority faces limited legal claims

The authority has the same protection from injury and negligence claims as the City of Fairburn. Its officers, agents, and employees receive their city counterparts' protections while doing authority work. These protections can limit injured people's ability to recover money. Creditors generally cannot seize and sell authority property through legal proceedings. Sale or foreclosure remains allowed under security deeds, mortgages, assignments, or security agreements the authority signs.

Fairburn authority can set service fees

The authority can provide project services itself or hire public or private operators. It can set or change rates, fees, tolls, rents, and other charges paid by project users. Agreements with public bodies for projects or services can last up to 50 years, where constitutionally allowed. These include leases, rental agreements, and installment sales. The law sets no specific household charge.

Fairburn authority cannot tax or condemn

The authority cannot tax people or property, or take property through condemnation. Its debt does not automatically become another public body's debt or require that body to levy taxes. However, a public body can agree to make payments through an intergovernmental contract. A body with taxing power can use taxes it levies and collects for those payments.

Fairburn gains project borrowing and safeguards

The authority can borrow, issue revenue bonds and short-term notes, and refinance debt for purposes it can finance. Financed projects must be ones Fairburn itself can finance. Covered costs include land, construction, equipment, financing, administration, and interest during construction and up to one year afterward. Repayment comes only from sources named in the bond documents, which can include revenues, property, or contract payments. Obligations are exempt from state interest-rate limits and the Georgia Uniform Securities Act of 2008. The authority can use interest-rate swaps, hedges, and credit-support agreements, which can reduce financing costs but add market risk. All money must be held as trust funds and used only as authorized. Governing documents set investment rules; otherwise, Georgia's development-authority investment rules apply.

Fairburn property deals bypass bidding rules

Georgia public bodies can give or lease property, property interests, or use rights to the authority, even without payment. They do not need to declare the property surplus. The authority must find that building a project there is worthwhile; agreed payments can reflect the public benefit. The authority can sell, lease, transfer, or pledge its property without public bidding or public notice required by other laws.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 220 • No: 0

Senate vote • 3/13/2025

LOCAL CONSENT CALENDAR

Yes: 48 • No: 0 • Other: 4

House vote • 3/4/2025

Local Calendar

Yes: 172 • No: 0 • Other: 6

Actions Timeline

House Date Signed by Governor
5/13/2025House
Act 147
5/13/2025
Effective Date
5/13/2025
House Sent to Governor
4/7/2025House
Senate Committee Favorably Reported
3/13/2025Senate
Senate Passed/Adopted
3/13/2025Senate
Senate Read and Referred
3/6/2025Senate
House Committee Favorably Reported
3/4/2025House
House Third Readers
3/4/2025House
House Passed/Adopted
3/4/2025House
House Second Readers
2/21/2025House
House First Readers
2/20/2025House
House Hopper
2/19/2025House

Bill Text

HB 536/AP* (v4)
PDF

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