Skip to content
Georgia Commons
Menu

House · Passed · 2025-2026 Regular Session

HB 1164: Education; require State Board of Education to appoint an audit committee

Last action July 1, 2026 · Effective Date

House Bill 1164 overhauls how Georgia monitors school district and charter school finances, creating a new state board audit committee and a tiered risk system with real consequences for districts flagged as fiscally troubled.

Read the full bill text

These buttons carry the bill's own text, not the summaries below. Copy for LLM, View as markdown, and Send to AI use the Markdown version: the text as filed, then the summaries under a heading that names them as ours. View raw is the text alone.

The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.

In plain language

Georgia currently relies on the Department of Audits and Accounts to flag local school systems that show financial irregularities or budget deficits, but the process for tracking and responding to those problems has been loosely defined. This bill requires the State Board of Education to create a standing audit committee that meets at least six times a year to review the financial health of school districts, charter schools, and completion special schools, with the state auditor and a State Charter Schools Commission representative attending. The bill also builds a new four tier fiscal monitoring system (Tier 1 Fiscally Sound through Tier 4 Critical Fiscal Emergency) run by the Department of Audits and Accounts, replacing the old approach that judged risk mainly by how many years a district had reported irregularities. Districts and charter schools must certify annually that they are audit ready and current on payments to retirement systems and the Department of Labor, or be automatically labeled high risk. High risk districts face contract limits for superintendents, mandatory monthly financial reporting, public notice requirements, and possible unilateral State Board termination of flexibility contracts and charters. The Office of Student Achievement gains expanded audit powers, including reviewing waiver use. The law takes effect July 1, 2026, and the full monitoring program must be running by the 2028-2029 school year.

What the bill does

  • Requires the State Board of Education to appoint an audit committee of board members that meets at least six times a year to review school system finances.
  • Creates a four tier fiscal risk framework (Fiscally Sound, Fiscal Watch, Fiscal Distress, Critical Fiscal Emergency) run by the Department of Audits and Accounts to replace the old irregularity-based risk labels.
  • Requires local school systems and state charter schools to certify annually that they are audit ready and not delinquent on payments to retirement systems, the state health plan, or the Department of Labor, or be automatically designated high risk.
  • Lets the State Board of Education unilaterally amend or terminate flexibility contracts and charters if a district or charter school is designated high risk by the Department of Audits and Accounts.
  • Limits a local school superintendent's contract to 12 months if their district is designated high risk, instead of the normal one to three year term.
  • Expands the Office of Student Achievement's authority to conduct performance audits, including audits of how schools and districts use waivers from state requirements.

Who it affects

Local school district superintendents and school board members, state charter school administrators and governing boards, the Department of Audits and Accounts, the State Board of Education, the Office of Student Achievement, the State Charter Schools Commission, and taxpayers and parents in districts flagged as financially at risk.

Why it matters

Districts and charter schools that fall behind on required payments or audit readiness would face closer state oversight, public financial disclosure, shorter superintendent contracts, and the possibility that the state cancels their flexibility contracts or charters. This changes how quickly and visibly financial trouble in a school system gets addressed.

Key provisions

  • Section 1 requires the State Board of Education to appoint an audit committee that reviews fiscal condition reports for high-risk and moderate-risk districts and charter schools at least six times a year.
  • Section 2 rewrites O.C.G.A. § 20-2-67 to require annual audit readiness and payment delinquency certifications, and to base high-risk or moderate-risk designation on the new tiered monitoring system rather than years of reported irregularities.
  • Section 3 and Section 5 add language letting the State Board of Education unilaterally amend or terminate flexibility contracts (O.C.G.A. § 20-2-83) and charter system charters (O.C.G.A. § 20-2-2063.2) once a district or charter school is designated high risk.
  • Section 4 caps a local school superintendent's contract at 12 months while their district is designated high risk under O.C.G.A. § 20-2-101.
  • Section 7 expands the Office of Student Achievement's power under O.C.G.A. § 20-14-35 to run on-site performance audits, including reviews of how schools use waivers, with some reports sent to legislative committee chairs.
  • Section 10 rewrites O.C.G.A. § 50-6-6 to set annual financial and compliance audit requirements for local school systems and state charter schools and new rules for using outside certified public accountants.
  • Section 11 adds a new O.C.G.A. § 50-6-6.1 requiring the Department of Audits and Accounts to build a four-tier fiscal monitoring program, fully implemented by the 2028-2029 school year.
  • Section 13 sets the effective date of the Act as July 1, 2026.

From the bill

“The audit committee shall meet no less than six times each fiscal year and at the call of the chairperson or a majority of the members of such committee.”

Sets the minimum frequency for the new State Board of Education audit committee to meet.

“(1) Tier 1 - Fiscally Sound: a local school system or state charter school is showing no signs of fiscal stress;”

Part of the new four-tier framework the Department of Audits and Accounts must use to classify districts and charter schools.

“At any time a local school system is designated as a high-risk local school system by the Department of Audits and Accounts pursuant to Code Section 20-2-67, the local school superintendent's contract of employment shall not be extended for a term which exceeds 12 months.”

Limits superintendent contract length in districts labeled high risk.

Discussed in meetings (15)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

  1. House Education Committee, February 19, 2026

    From 0:38:22 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said HB 1164 would establish statewide financial monitoring, annual audit-readiness certifications, public financial reporting, and four levels of fiscal risk for school systems. The sponsor described a standing State Board of Education audit committee meeting at least six times yearly, possible limits on district waivers and superintendent contract extensions in distressed systems, and submission of third-party audits to the Department of Audits and Accounts. The sponsor said the substitute added nonvoting representatives from that department and the State Charter Schools Commission to the audit committee. One member worried that broad investigation language could trigger punitive reviews based on rumors. The sponsor said auditors would follow an evidence-based process and consider records resolving allegations. Other members asked about safety funding, outside audit firms, and existing audit requirements. The sponsor said audits would cover safety funds, firms would have to meet state standards rather than appear on an approved list, and districts already faced annual audits but did not always submit them for state review. The sponsor described implementation beginning July 1 and extending into 2028–29. The committee approved the substitute by voice vote.

  2. House Rules Committee, February 25, 2026

    From 1:15:39 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1580

    Summary by Georgia Commons: The sponsor said HB 1164 would require the State Board of Education to appoint an audit committee and improve communication among state agencies and local school boards to identify financial problems sooner. A member questioned whether it would let state officials override local agreements. The sponsor described four levels of financial condition and said state corrective action would address the most critical level, rather than amount to a takeover. The member also questioned a 12-month superintendent contract limit, arguing it could deter turnaround experts. The sponsor said the restriction targeted a superintendent responsible for the problems and would not apply to a new superintendent who had not caused them. Asked whether withholding advance funding would worsen a district's financial emergency, the sponsor said withholding would be optional and depend on circumstances. No scheduling decision was shown.

  3. House floor session, February 25, 2026 (legislative day 24)

    From 5:30:13 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Postponed)

    Summary by Georgia Commons: The chair announced that consideration of HB 1164 was postponed until the next legislative day. No substantive discussion or vote was shown.

  4. House Rules Committee, February 25, 2026

    From 0:21:11 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1580

    Summary by Georgia Commons: A motion and second were made to add HB 1164 to the supplemental calendar under modified structure. A committee member objected. After a voice vote with both ayes and noes, the chair declared the motion passed. No vote count or discussion of the bill's provisions was given.

  5. House floor session, February 26, 2026 (legislative day 25, AM)

    From 2:17:08 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1630

    Summary by Georgia Commons: The sponsor said HB 1164 would create a State Board of Education audit committee, require annual audit certifications and corrective plans, and establish escalating monitoring of financially troubled school systems and charter schools. The sponsor said 41 systems were out of compliance with audit requirements and described a gap in requiring outside audit firms to submit reports to the state. One member questioned state authority over local agreements, 12-month superintendent contracts and school board association support. The sponsor said intervention would address severe financial risk, said a newly hired superintendent not responsible for the problems would be exempt from the contract limit, and reported no association objections, but did not establish formal endorsement. Another member asked about poor accounting despite adequate funding. The sponsor described corrective plans and increased oversight if problems persist. A further member asked whether class-size waivers could be removed. The sponsor said that could occur at the highest risk level but was not required. The House adopted the committee substitute and passed it, 103 to 68.

  6. Senate Education and Youth Committee, March 10, 2026

    From 0:32:00 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor presented a substitute for HB 1164, saying 41 school systems had audit concerns or compliance problems and the state needed clearer ways to assess their seriousness. The sponsor said the bill would restore the State Board of Education's audit committee, require at least six meetings annually, establish four financial risk levels, and require annual certifications and public financial reporting. The sponsor described corrective action plans, mandatory audits for high-risk systems, investigations and possible removal of waivers tied to audit findings. The sponsor said a one-year contract limit would apply to the superintendent serving when the financial distress occurred, not a newly hired replacement. Outside accounting firms could continue conducting audits, but school systems would have to submit those audits for state review. Asked by the chair about payments more than 120 days overdue, the sponsor said required notices would go to state leaders and be posted publicly. The sponsor said outside audits had sometimes not reached state auditors and described the bill as an effort to catch problems before they became serious. The committee approved the bill, and the chair described both bill votes as unanimous.

  7. Senate Rules Committee, March 18, 2026

    From 0:22:03 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The chair called up HB 1164 during a review of remaining measures and referred to an earlier hearing, but did not explain its provisions. No calendar action followed.

  8. Senate Rules Committee, March 20, 2026

    From 0:32:40 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: A committee member initially requested the bill and described it as concerning Dublin City Schools. Later, another member selected it for the calendar, saying it would improve local school boards’ financial accountability and transparency and was particularly important to that member’s district. The committee unanimously approved the floor calendar containing the bill.

  9. Senate floor session, March 23, 2026 (legislative day 36)

    From 4:50:24 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)

    Summary by Georgia Commons: The presenter said HB 1164 would strengthen financial oversight of local school systems and state charter schools to catch financial problems earlier and protect classroom funding. The presenter described a State Board of Education audit committee meeting at least six times yearly, annual audits and a December 31 audit-readiness certification. According to the presenter, school leaders would also certify timely health-plan, retirement and Department of Labor payments, responding to a school system that had missed 14 health-plan payments. The presenter said repeated irregularities would trigger risk designations, with high-risk systems requiring audits by the state auditor. The presenter described responses within 60 days, board-approved corrective plans within 120 days, monthly spending reviews and public financial notices. The presenter also outlined expanded investigative authority and possible changes to school flexibility agreements, and said the bill would take effect July 1, 2026. No questions or opposing speeches followed. The Senate passed the bill 49-2.

Status timeline

  1. 2026-07-01Effective Date
  2. 2026-05-12Act 721
  3. 2026-05-12House Date Signed by Governor (House)
  4. 2026-04-06House Sent to Governor (House)
  5. 2026-03-23Senate Passed/Adopted (Senate)
  6. 2026-03-23Senate Third Read (Senate)
  7. 2026-03-16Senate Read Second Time (Senate)
  8. 2026-03-12Senate Committee Favorably Reported (Senate)
Show full history (16 actions)
  1. 2026-03-03Senate Read and Referred (Senate)
  2. 2026-02-26House Passed/Adopted By Substitute (House)
  3. 2026-02-26House Third Readers (House)
  4. 2026-02-25House Postponed (House)
  5. 2026-02-20House Committee Favorably Reported By Substitute (House)
  6. 2026-02-05House Second Readers (House)
  7. 2026-02-04House First Readers (House)
  8. 2026-02-03House Hopper (House)

Sponsors

  • Will Wade (R, HD-9)Primary sponsor
  • Matt Hatchett (R, HD-155)
  • Jan Jones (R, HD-47)
  • Chris Erwin (R, HD-32)
  • Matthew Gambill (R, HD-15)
  • Kasey Carpenter (R, HD-4)
  • Billy Hickman (R, SD-4)

Votes

  1. PassedHouse voteFebruary 26, 2026

    103 yea, 68 nay (4 not voting, 2 excused)

    PASSAGE: House Vote #572

  2. PassedSenate voteMarch 23, 2026

    49 yea, 2 nay (2 not voting, 1 excused)

    PASSAGE: Senate Vote #794

Topics

  • school district finances
  • education audits
  • school superintendent contracts
  • charter schools
  • state government oversight

Ask about this bill

Answers come from this document. Not legal advice.

Machine-readable https://georgiacommons.org/bills/2025-2026/hb1164.md · https://georgiacommons.org/bills/index.md · MCP https://mcp.georgiacommons.org/mcp

HB1164: Education; require State Board of Education to appoint an audit committee | Georgia Commons