SB 432: Education; nonlapsing revenue of institutions of the University System of Georgia and units of the Technical College System of Georgia; extend automatic repeals

Senate Bill 432

By: Senators Walker III of the 20th, Anavitarte of the 31st, Burns of the 23rd, Hickman of the 4th, Jones II of the 22nd and others

AS PASSED

A BILL TO BE ENTITLED

AN ACT

To amend Title 20 of the Official Code of Georgia Annotated, relating to education, so as to extend automatic repeals of certain provisions regarding nonlapsing revenue of institutions of the University System of Georgia and units of the Technical College System of Georgia; to amend Title 50 of the Official Code of Georgia Annotated, relating to state government, so as to extend automatic repeals of certain provisions regarding writing off small amounts due to the state; to provide for related matters; 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.

Title 20 of the Official Code of Georgia Annotated, relating to education, is amended by revising Code Section 20-3-86, relating to nonlapsing revenue of institutions in university system, as follows:

"20-3-86.

Revenue collected by any or all institutions in the university system from tuition, departmental sales or services, continuing education fees, technology fees, or indirect cost recoveries shall not lapse. The amount of revenue from tuition that shall not lapse under this Code section shall not exceed 3 percent of the tuition collected. This Code section shall stand repealed and reserved on July 1, 2026 2031. Not later than October 15 each year, the board of regents shall provide to the Governor, the chairperson of the House Committee on Appropriations, and the chairperson of the Senate Appropriations Committee a report of all nonlapsing revenue provided for in this Code section from the preceding fiscal year, the anticipated plans for the use of such nonlapsing revenue, the actual expenses paid for from nonlapsing revenue from the previous fiscal year, and the cumulative balance of nonlapsed revenue."

SECTION 2.

Said title is further amended by revising Code Section 20-4-21.1, relating to nonlapsing revenue of institutions under the Technical College System of Georgia, as follows:

"20-4-21.1.

Revenue collected by any or all institutions under the Technical College System of Georgia from tuition, departmental sales or services, continuing education fees, technology fees, or indirect cost recoveries shall not lapse. The amount of revenue from tuition that shall not lapse under this Code section shall not exceed 15 percent of the tuition collected. This Code section shall stand repealed on July 1, 2026 2031. Not later than October 15 each year, the State Board of the Technical College System of Georgia shall provide to the Governor, the chairperson of the House Committee on Appropriations, and the chairperson of the Senate Appropriations Committee a report of all nonlapsing revenue provided for in this Code section from the preceding fiscal year, the anticipated plans for the use of such nonlapsing revenue, the actual expenses paid for from nonlapsing revenue from the previous fiscal year, and the cumulative balance of nonlapsed revenue."

SECTION 3.

Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended by revising subsection (b) of Code Section 50-16-18, relating to writing off small amounts due to state, as follows:

"(b)(1) All state agencies and departments, in order to preserve public funds, shall be authorized to develop appropriate standards that comply with the policies prescribed by the state accounting officer which will provide a mechanism to consider administratively discharging any obligation or charge in favor of such agency or department when such obligation or charge is $100.00 or any lesser amount unless the agency or department belongs to the Board of Regents of the University System of Georgia or the Technical College System of Georgia in which case the obligation or charge in favor of the institution under the Board of Regents of the University System of Georgia or the institution of the Technical College System of Georgia may be $3,000.00 or any lesser amount. This procedure shall not be available to such agency or department in those instances where the obligor has more than one such debt or obligation in any given fiscal year, and this provision shall be construed in favor of the state agency or department so as not to alter the unquestioned ability of such state agency or department to pursue any debt, obligation, or claim in any amount whatsoever. In those instances where a debt or obligation of $100.00 or less, or $3,000.00 or less for the institutions of the Board of Regents of the University System of Georgia or the Technical College System of Georgia, has been deemed to be uncollectable, the proper individual making such determination shall transmit a recapitulation of the efforts made to collect the debt together with all other appropriate information, which shall include a reasonable estimate of the cost to pursue administratively or judicially the account, together with a recommendation to the commissioner of such state agency or department. In those instances where the commissioner makes a determination that further collection efforts would be detrimental to the public's financial interest, a certificate reflecting this determination shall be executed, and this certificate shall serve as the authority to remove such uncollectable accounts from the financial records of such state agency or department. Such certificates shall be forwarded to the state accounting officer in a manner and at such times as are reflected in the standards developed by the state accounting officer and the state agency or department. This paragraph shall stand repealed and reserved effective July 1, 2026 2031.

(2) On and after July 1, 2026 2031, all state agencies and departments, in order to preserve public funds, shall be authorized to develop appropriate standards that comply with the policies prescribed by the state accounting officer which will provide a mechanism to consider administratively discharging any obligation or charge in favor of such agency or department when such obligation or charge is $100.00 or any lesser amount. This procedure shall not be available to such agency or department in those instances where the obligor has more than one such debt or obligation in any given fiscal year, and this provision shall be construed in favor of the state agency or department so as not to alter the unquestioned ability of such state agency or department to pursue any debt, obligation, or claim in any amount whatsoever. In those instances where a debt or obligation of $100.00 or less has been deemed to be uncollectable, the proper individual making such determination shall transmit a recapitulation of the efforts made to collect the debt together with all other appropriate information, which shall include a reasonable estimate of the cost to pursue administratively or judicially the account, together with a recommendation to the commissioner of such state agency or department. In those instances where the commissioner makes a determination that further collection efforts would be detrimental to the public's financial interest, a certificate reflecting this determination shall be executed, and this certificate shall serve as the authority to remove such uncollectable accounts from the financial records of such state agency or department. Such certificates shall be forwarded to the state accounting officer in a manner and at such times as are reflected in the standards developed by the state accounting officer and the state agency or department."

SECTION 4.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 5.

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