HB 1413: Georgia Student Finance Authority; establish a needs based scholarship program for students at eligible public and private postsecondary institutions

The Senate Committee on Higher Education offered the following substitute to HB 1413:

A BILL TO BE ENTITLED

AN ACT

To amend Titles 20, 31, 47, and 50 of the Official Code of Georgia Annotated, relating to education, health, retirement and pensions, and state government, respectively, so as to amend various provisions relating to higher education; to establish the DREAMS scholarship; to provide for eligibility; to create an endowment fund for such scholarship; to provide for reports; to provide for definitions; to modify the maximum contribution limit for savings trust accounts under the Georgia Higher Education Savings Plan; to require the possession of opioid antagonists by institutions within the University System of Georgia and units within the Technical College System of Georgia; to provide for definitions; to provide for possession of opioid antagonists by certain individuals; to require the maintenance of a stock supply of opioid antagonists; to provide for the use and location of opioid antagonist storage compartments; to authorize certain personnel to administer opioid antagonists and carry opioid antagonists; to provide for immunity; to provide that neither civil liability nor professional discipline shall accrue to personnel, the systems, or institutions or units thereof; to make conforming changes; to exclude part-time students from membership in the Georgia Defined Contribution Plan; to modify provisions relating to the minimum reserve amount of the lottery shortfall reserve; to provide for effective dates and applicability; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I

SECTION 1-1.

Title 20 of the Official Code of Georgia Annotated, relating to education is amended in Part 3 of Article 7 of Chapter 3, relating to the Georgia Student Finance Authority, is amended by adding a new subpart to read as follows:

"Subpart 2B

20-3-367.

As used in this subpart, the term:

(1) 'Academic year,' 'first professional degree program,' 'matriculated status,' 'quarter hours,' and 'semester hours' shall have the same meanings as set forth in Code Section 20-3-519.

(2) 'Cost of attendance' means the estimate of a student's educational expenses as calculated by the eligible postsecondary institution at which such student is enrolled pursuant to Title IV.

(3) 'DREAMS scholarship' or 'scholarship' means the Dedicating Resources to Educationally Advance More Students (DREAMS) scholarship provided for in this subpart.

(4) 'DREAMS Scholarship Endowment Fund' or 'endowment fund' means the DREAMS Scholarship Endowment Fund provided for in Code Section 20-3-367.2.

(5) 'Eligible postsecondary institution' means:

(A) An institution of the University System of Georgia; and

(B) A unit of the Technical College System of Georgia.

(6) 'Financial aid' means all scholarships and grants awarded to a student, excluding the DREAMS scholarship.

(7) 'Grade point average' means the grade point average calculated by the commission for purposes of the HOPE scholarship provided for in Part 7 of this article.

(8) 'Student aid index' means the student aid index calculated in accordance with Title IV.

(9) 'Title IV' means Title IV of the federal Higher Education Act of 1965, as amended, 20 U.S.C. Section 1070, et seq.

(10) 'Unmet financial need' means the amount of the cost of attendance remaining after the student aid index and all other financial aid received by the student have been applied.

20-3-367.1.

(a) To be eligible for a DREAMS scholarship, a student seeking an undergraduate degree at an eligible postsecondary institution shall:

(1) Meet the requirements provided for in paragraph (1) of subsection (a) and subsection (b) of Code Section 20-3-519.1;

(2) Complete the Free Application for Federal Student Aid (FAFSA);

(3) Meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status;

(4) Be enrolled for not less than six semester hours, or the equivalent quarter hours, in any given semester or quarter;

(5) Have not yet earned a baccalaureate or first professional degree; and

(6) Have unmet financial need.

(b) To maintain eligibility for a scholarship under this subpart, a student shall:

(1) Continue to meet the eligibility requirements provided for in subsection (a) of this Code section; and

(2) Maintain a minimum 2.0 grade point average and satisfactory academic progress in accordance with the standards and practices used for Title IV programs by the institution at which such student is enrolled.

(c) Using moneys from the endowment fund, the authority shall provide scholarships to eligible students in accordance with the following conditions:

(1) The maximum award amount per student per academic year shall be $3,000.00; provided, however, that no student shall be awarded an amount that is more than such student's unmet financial need; and

(2) No student shall receive a scholarship award for more than eight semesters or 12 quarters.

(d) Each student who is awarded a scholarship shall:

(1) Complete a financial literacy course; and

(2) Be engaged in paid or unpaid work at least part-time, which may include, but shall not be limited to, employment, an internship or externship, volunteer work, or military service.

20-3-367.2.

(a) There is created the DREAMS Scholarship Endowment Fund as a separate fund in the state treasury. The endowment fund shall be administered by the authority. Moneys in the endowment fund shall be used only as provided for in this subpart. All appropriations made by the General Assembly for the scholarship and all public or private grants, gifts, donations, or contributions received for the scholarship shall be credited to the endowment fund. Unless specifically designated otherwise, all moneys credited to the endowment fund shall be credited to the principal account. All moneys appropriated or otherwise paid or credited to the endowment fund shall be presumptively concluded to have been committed to the purpose for which they have been appropriated, paid, or credited and shall not lapse.

(b) Three separate accounts shall be created within the endowment fund:

(1) The principal account shall constitute the permanent endowment corpus. Except as otherwise provided in this Code section, moneys credited to such account shall not be appropriated, transferred, expended, encumbered, or otherwise diverted. The authority shall determine the minimum amount of moneys needed in the principal account in order to produce sufficient funds to sustain scholarship awards;

(2) The scholarship account shall consist of moneys allocated to such account pursuant to the spending policy adopted by the authority. Moneys in such account shall be used to provide scholarship awards in accordance with this subpart; and

(3) The transitional scholarship account shall consist of funds appropriated for scholarship awards during the first two fiscal years of the scholarship. Moneys in such account shall be used to provide scholarships in accordance with this subpart.

(c) The authority shall adopt an investment policy which provides for the investment of moneys in the principal account as a pooled portfolio in accordance with prudent investor standards applicable to public trust funds. Such investment policy shall include provisions to preserve and grow the long-term value of the principal account while promoting the stability and sustainability of scholarship awards.

(d) In the event of a shortfall in moneys available for scholarship awards compared with projected expenditures for scholarship awards over the same period, and if such shortfall will have a materially adverse effect on scholarship awards, the authority shall be authorized to adopt an emergency stabilization authorization to allow the distribution or transfer of moneys from the principal account so as to mitigate any reduction in such awards. Such authorization shall:

(1) Require a two-thirds' majority vote of the board of the authority for adoption;

(2) Be limited to the minimum amount necessary to mitigate any reduction in awards;

(3) Not be used to permanently increase award levels;

(4) Provide for the principal account to be replenished to not less than the minimum amount determined by the authority pursuant to paragraph (1) of subsection (b) of this Code section; and

(5) Expire within one year; provided, however, that this shall not prohibit consecutive emergency stabilization authorizations.

(e) The authority shall adopt a spending policy which provides for the allocation of earnings to the principal account and to the scholarship account at the end of each fiscal year. Such spending policy shall:

(1) Require that earnings allocated to the principal account shall be used to grow the permanent endowment corpus in accordance with the investment policy; and

(2) Require that earnings allocated to the scholarship account shall be used to provide scholarships in accordance with Code Section 20-3-367.1

(f) During the first two fiscal years following capitalization of the endowment fund, scholarship awards shall be paid from the transitional scholarship account. The transitional scholarship account shall terminate at the end of the second fiscal year following capitalization of the fund, and any remaining moneys shall be transferred to the principal account. In the third fiscal year following capitalization of the fund and each fiscal year thereafter, scholarship awards shall be paid from the scholarship account.

(g) Not later than December 1 of the second fiscal year following capitalization of the fund and each fiscal year thereafter, the authority shall prepare and publish on its website an annual report regarding the endowment fund for the immediately preceding fiscal year. Such report shall include the endowment fund's market value, investment performance, scholarship distributions, any distributions or transfers from the principal account, and confirmation of compliance with the requirements of this Code section and the policies adopted pursuant to this Code section.

20-3-367.3.

Not later than December 1 each year, the authority shall provide a report on the DREAMS scholarship and the endowment fund to the Governor, the Speaker of the House of Representatives, the President of the Senate, the chairpersons of the House Committee on Higher Education and the Senate Higher Education Committee, the chancellor of the University System of Georgia, and the commissioner of the Technical College System of Georgia."

PART II

SECTION 2-1.

Said title is further amended in Code Section 20-3-634, relating to savings trust accounts, availability, and terms and provisions relative to the Georgia Higher Education Savings Plan, by revising paragraph (1) of subsection (b) as follows:

"(1) The maximum and minimum contribution allowed on behalf of each beneficiary for the payment of qualified higher education expenses at eligible institutions as defined in Section 529 of the Internal Revenue Code of 1986 or other applicable federal law; provided, however, that no additional contributions may be made to a savings trust account when the total account balance for all accounts for the beneficiary equals or exceeds $235,000.00 $550,000.00;"

PART III

SECTION 3-1.

Said title is further amended in Part 2 of Article 2 of Chapter 3, relating to university system, by adding a new Code section to read as follows:

"20-3-88.

(a) As used in this Code section, the term:

(1) 'Automated external defibrillator' means a defibrillator which:

(A) Is capable of cardiac rhythm analysis;

(B) Will charge and be capable of being activated to deliver a countershock after electrically detecting the presence of certain cardiac dysrhythmias; and

(C) Is capable of continuous recording of the cardiac dysrhythmia at the scene with a mechanism for transfer and storage or for printing for review subsequent to use.

(2) 'Community funding source' means local sources of capital provided by local banking institutions, including credit unions, community foundations, county or municipal governments, businesses, or residents. Such funding sources may include grants, gifts, contracts, monetary donations, or loans.

(3) 'Institution' means any college, school, academy, university, or experiment station at any particular location which forms a part of the university system.

(4) 'Opioid antagonist' shall have the same meaning as set forth in Code Section

26-4-116.2.

(5) 'Opioid antagonist storage compartment' means the structure in which opioid antagonists may be stored.

(6) 'University system' means the University System of Georgia.

(b) No student, visitor, or university system employee shall be prohibited from possessing an opioid antagonist on university system property or at a university system sponsored activity.

(c) Subject to available funding from community funding sources, each institution shall acquire and maintain a supply of opioid antagonists in any secure location in such a quantity to be used for multiple opioid overdose events; provided, however, that, if there occurs a shortage of opioid antagonists, the institution shall make a reasonable effort to maintain its supply of opioid antagonists. Any such supply shall be maintained in accordance with the manufacturer's instructions.

(d) Subject to available funding from community funding sources, each institution maintaining one or more automated external defibrillators shall maintain opioid antagonists in an opioid antagonist storage compartment which shall be located within three feet of such defibrillators or as close as space reasonably allows.

(e) Any university system personnel may administer an opioid antagonist to any person who the university system personnel believes in good faith to be experiencing an opioid overdose:

(1) While at an institution;

(2) While at a university system sponsored activity;

(3) While under the supervision of university system personnel; or

(4) Before or after normal institution activities.

(f) Any university system personnel who in good faith administers or chooses not to administer an opioid antagonist shall be immune from civil liability or professional discipline for any act or omission to act related to the administration of an opioid antagonist, except that such immunity shall not apply to an act of willful or wanton misconduct.

(g) Neither civil liability nor professional discipline shall accrue to university system personnel and no civil liability shall accrue to the university system or to any institution of such system due to the removal or misuse of an opioid antagonist or antagonists; provided, however, that immunity shall not apply to an act of willful or wanton misconduct."

SECTION 3-2.

Said title is further amended in Article 2 of Chapter 4, relating to technical and adult education, by adding a new Code section to read as follows:

"20-4-39.1.

(a) As used in this Code section, the term:

(1) 'Automated external defibrillator' means a defibrillator which:

(A) Is capable of cardiac rhythm analysis;

(B) Will charge and be capable of being activated to deliver a countershock after electrically detecting the presence of certain cardiac dysrhythmias; and

(C) Is capable of continuous recording of the cardiac dysrhythmia at the scene with a mechanism for transfer and storage or for printing for review subsequent to use.

(2) 'Community funding source' means local sources of capital provided by local banking institutions, including credit unions, community foundations, county or municipal governments, businesses, or residents. Such funding sources may include grants, gifts, contracts, monetary donations, or loans.

(3) 'Opioid antagonist' shall have the same meaning as set forth in Code Section

26-4-116.2.

(4) 'Opioid antagonist storage compartment' means the structure in which opioid antagonist may be stored.

(5) 'Technical college system' means the Technical College System of Georgia.

(6) 'Unit' means any institution, college, school, academy, or experiment station at any particular location which forms a part of the technical college system.

(b) No student, visitor, or technical college system employee shall be prohibited from possessing an opioid antagonist on technical college system property or at a technical college system sponsored activity.

(c) Subject to available funding from community funding sources, each unit shall acquire and maintain a supply of opioid antagonists in any secure location in such a quantity to be used for multiple opioid overdose events; provided, however, that, if there occurs a shortage of opioid antagonists, the unit shall make a reasonable effort to maintain its supply of opioid antagonists. Any such supply shall be maintained in accordance with the manufacturer's instructions.

(d) Subject to available funding from community funding sources, each unit maintaining one or more automated external defibrillators shall maintain opioid antagonists in an opioid antagonist storage compartment which shall be located within three feet of such defibrillators or as close as space reasonably allows.

(e) Any technical college system personnel may administer an opioid antagonist to any person who the technical college system personnel believes in good faith to be experiencing an opioid overdose:

(1) While at a unit;

(2) While at a technical college system sponsored activity;

(3) While under the supervision of technical college system personnel; or

(4) Before or after normal unit activities.

(f) Any technical college system personnel who in good faith administers or chooses not to administer an opioid antagonist pursuant to this Code section shall be immune from civil liability or professional discipline for any act or omission to act related to the administration of an opioid antagonist, except that such immunity shall not apply to an act of willful or wanton misconduct.

(g) Neither civil liability nor professional discipline shall accrue to technical college system personnel and no civil liability shall accrue to the technical college system or any unit of such system due to the removal or misuse of an opioid antagonist or antagonists; provided, however, that immunity shall not apply to an act of willful or wanton misconduct."

SECTION 3-3.

Title 31 of the Official Code of Georgia Annotated, relating to health, is amended in Code Section 31-2A-20, relating to accessibility to opioid antagonists in government buildings and courthouses, guidelines and training, and limitations on liability, by revising subsection (a) as follows:

"(a) As used in this Code section, the term:

(1) 'Automated external defibrillator' shall have the same meaning as set forth in Code Section 31-11-53.1.

(2) 'Courthouse' means a building occupied by judicial courts and containing rooms in which judicial proceedings are held, provided that such building contains an automated external defibrillator.

(3) 'Government entity' means any state board, commission, agency, or department, or the governing authority of any county, municipality, or consolidated government, but such term shall not include local school systems, public schools, charter schools, or university buildings the University System of Georgia, or the Technical College System of Georgia.

(4) 'Opioid antagonist' shall have the same meaning as set forth in Code Section

26-4-116.2.

(5) 'Opioid related overdose' shall have the same meaning as set forth in Code Section

26-4-116.2.

(6) 'Qualified government building' means a building in which a government entity is housed or meets in its official capacity, including the portion occupied by a government entity of any building that is not publicly owned, provided that such building contains an automated external defibrillator, but such term shall not include a university building.

(7) 'University building' means any building which forms a part of the University System of Georgia, including any college or university under the government, control, and management of the Board of Regents of the University System of Georgia, or any building under the control of the State Board of the Technical College System of Georgia."

PART IV

SECTION 4-1.

Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is amended by revising Code Section 47-22-1, relating to definitions regarding the Georgia Defined Contribution Plan, as follows:

"47-22-1.

As used in this chapter, the term:

(1) 'Accumulated contributions' means the sum of all amounts deducted from the compensation of a member's salary and credited to such member's individual account in this plan, together with earnings thereon as provided in this chapter.

(2) 'Board' means the Board of Trustees of the Employees' Retirement System of Georgia.

(3) 'Defined contribution plan' means a plan which provides for an individual account for each participant and for benefits based solely on the amount contributed to the participant's account; any income, expenses, gains, and losses; and any forfeiture of accounts of other participants which may be allocated to such participant's account, which plan is intended to be qualified under Section 401(a) of the Internal Revenue Code, 42 U.S.C. Section 401(a).

(4) 'Employee' means any employee of an employer who is not a member of any public retirement or pension system created pursuant to this title; provided, however, that the following persons shall not be considered employees under this paragraph:

(A) A person performing services for an institution in which such person is duly enrolled as a part-time or full-time student;

(B) A person performing services for an employer pursuant to a contract as a bona fide independent contractor; or

(C) Members of any state board or commission.

(5) 'Employer' means the state or any department, bureau, institution, board, or commission of the state, the State Board of Education, and the Board of Regents of the University System of Georgia.

(6) 'Member' means any employee included in the membership of the plan.

(7) 'Plan' means the Georgia Defined Contribution Plan created by this chapter.

(8) 'Plan year' means the 12 month period beginning July 1 of each year."

PART V

SECTION 5-1.

Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended in Code Section 50-27-13, relating to disposition of lottery proceeds, budget report by Governor, appropriations by General Assembly, and shortfall reserve subaccount, by revising paragraph (3) of subsection (b) as follows:

"(3)(A) As used in this paragraph, the term 'base lottery spend' means expenditures from lottery proceeds for voluntary pre-kindergarten and for tuition grants, scholarships, or loans to citizens of this state to enable such citizens of this state to attend colleges and universities located within this state, regardless of whether such colleges and universities are owned or operated by the board of regents or to attend institutions operated under the authority of the Technical College System of Georgia. Such term shall not include expenditures from excess reserve funds required to be appropriated for educational purposes and programs pursuant to subparagraph (B) of this paragraph.

(B) A Beginning in Fiscal Year 2025, a shortfall reserve shall be maintained within the Lottery for Education Account in an amount equal to at least 50 percent of the average amount of net proceeds deposited into or base lottery spend from such account for the preceding three fiscal years, whichever is greater, hereinafter referred to as the minimum reserve. Beginning in Fiscal Year 2025 and for each fiscal year thereafter, if on the last day of the preceding fiscal year the total reserve fund balance exceeds the minimum reserve, an amount equal to 10 percent of the excess reserve funds, meaning the amount that the total reserve fund balance exceeds the minimum reserve, shall be appropriated for educational purposes and programs.

(B)(C) If the net proceeds paid into the Lottery for Education Account in any year are not sufficient to meet the amount appropriated for educational purposes and programs, the shortfall reserve may be drawn upon to meet the deficiency and any amount so drawn may count for purposes of appropriations in subparagraph (A) (B) of this paragraph.

(C)(D) If the shortfall reserve is drawn upon and falls below 50 percent of the average amount of net proceeds deposited into or base lottery spend from such account for the preceding three fiscal years, whichever is greater, the shortfall reserve shall be replenished to the level required by subparagraph (A) (B) of this paragraph in the next fiscal year and the lottery funded programs shall be reviewed and adjusted accordingly."

PART VI

SECTION 6-1.

(a) Except as otherwise provided in this section, this Act shall become effective on July 1, 2026.

(b) Part II of this Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

(c) Part I of this Act shall apply to all academic years beginning with the 2026-2027 academic year.

(d) Part V of this Act shall apply to all fiscal years beginning in Fiscal Year 2027.

PART VII

SECTION 7-1.

All laws and parts of laws in conflict with this Act are repealed.