Senate Bill 445
By: Senators Dolezal of the 27th, Robertson of the 29th, Anavitarte of the 31st, Still of the
48th, Walker III of the 20th and others
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 2B of Title 20 of the Official Code of Georgia Annotated,
relating to promise scholarship accounts, so as to clarify provisions relative to participating
private school accreditation; to repeal the authority of the State Board of Education to
authorize qualified education expenses; to revise a provision relative to term of public school
enrollment required to qualify as a participating student; to provide for an age restriction on
the kindergarten related exception to such enrollment requirement; to provide for a first grade
related exception to such enrollment requirement; to revise and add provisions relative to
qualifications for participating students whose family income exceeds a certain threshold;
to provide for prioritization of students for qualification to participate in the program; to
clarify what financial information shall be submitted by private schools to participate in the
program; to provide for limits on eligibility for nonaccredited private schools to enroll
participating students; to clarify provisions for the annual adjustment of account funds; to
provide for allocation of account funds rather than account payments; to require that
authorized reimbursable education expanses shall be preapproved by the education savings
authority; to provide for covering costs of administering the program; to revise provisions
relative to annual reporting requirements for the education savings authority; to provide for
schools that shall not be included in the separate list of public schools annually reported by
the Office of Student Achievement; to provide for a complete list of public schools; to make
conforming changes; 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.
Article 2 of Chapter 2B of Title 20 of the Official Code of Georgia Annotated, relating to
promise scholarship accounts, is amended in Code Section 20-2B-21, relating to definitions,
by revising paragraphs (8) and (10) as follows:
"(8) 'Private school' means a nonpublic school, sectarian or nonsectarian, which is
accredited or in the process of becoming accredited by a recognized accrediting agency,
as such term is defined in Code Section 20-14-96, or by one or more of the entities listed
in subparagraph (A) of paragraph (6) of Code Section 20-3-519; <ins>provided, however, that
any private school that is in the process of becoming accredited by a recognized
accrediting agency shall provide to the education savings authority, both annually and
upon request by the education savings authority, written verification by such recognized
accrediting agency that such private school is making timely and good faith progress
toward accreditation."
</ins> "(10) 'Qualified education expenses' means any one or more of the following:
(A) Tuition, fees, and required textbooks for eligible core courses and eligible CTAE
courses, as such terms are defined in Code Section 20-2-161.3, at a participating school,
accredited community college or postsecondary education institution, or nonpublic
online learning program or course <ins>physically located in this state;
</ins> (B) Tutoring services provided by an educator certified by the Professional Standards
Commission;
(C) Payment for the purchase of a curriculum, including any supplemental materials
required by the curriculum;
(D) Services from a physician or therapist licensed pursuant to Chapter 10A, 28, 33,
34, or 44 of Title 43, including, but not limited to, for occupational, behavioral,
physical, or speech-language therapies;
(E) No more than $500.00 per year to a fee-for-service transportation provider for
transportation to or from a participating school or service provider;
(F) Fees for the management of account funds in accordance with subsection (e) of
Code Section 20-2B-26;
(G) Other expenses authorized by <del>the State Board of Education or</del> the education
savings authority; or
(H) Individual education expenses authorized by a majority of the parent review
committee as provided for in Code Section 20-2B-25."
SECTION 2.
Said article is further amended in Code Section 20-2B-22, relating to participating student
qualifications, continued eligibility of participating students to receive funds subject to
conditions, requirements for parents of participating students, and forfeiture of account funds,
by revising subsection (a) as follows:
"(a) A student shall qualify for a promise scholarship account under this article if:
(1) The student's parent resides within Georgia and has been a Georgia resident for at
least one year; provided, however, that such one-year residency requirement shall not
apply if the student's parent is an active duty military service member stationed in
Georgia within the previous year;
<ins>(2)(A)</ins> The student is currently enrolled and has been continuously enrolled in a
Georgia public school for a period of time that includes at least <del>two consecutive
enrollment counts</del> <ins>one enrollment count</ins> conducted pursuant to Code Section 20-2-160;
<del>provided, however, that such.
</del>
<ins>(B) The</ins> enrollment requirement <ins>provided for in subparagraph (A) of this paragraph
</ins> shall not apply to a child who meets all other qualifications provided for in this
subsection and is eligible to enroll in a qualified kindergarten program <ins>or the first grade
of the primary grades program</ins> of the public school in which such child would be
enrolled based on his or her residence; <ins>provided, however, that such child shall not have
reached the age of seven on or before September 1;
</ins> (3) The student resides in the attendance zone of a public school that is included on the
list of public schools provided for in Code Section 20-2B-29;
(4) The student does not meet any of the ineligibility criteria provided for in
subsection (b) of Code Section 20-3-519.1;
(5)(A) Except as provided in subparagraph (B) of this paragraph, the student's family
income does not exceed 400 percent of the federal poverty level as defined annually by
the federal Office of Management and Budget.
(B)(i) <ins>The family income requirement in subparagraph (A) of this paragraph shall not
apply to a student whose family income exceeds 400 percent of the federal poverty
level as defined annually by the federal Office of Management and Budget if and to the
extent the education savings authority determines quarterly, as provided for in division
(ii) of this subparagraph, that the</ins> <del>In the event that the</del> amount of funds appropriated for
the program exceeds the amount of funds necessary to include all students who meet
the family income requirement provided for in subparagraph (A) of this paragraph;
<ins>provided, however, that, prior to such determination by the education savings authority,
such student submitted an application for an account to the education savings authority
during the current school year.</ins> <del>and the student:
(i) Is already a participating student; or
(ii) Timely submitted an application for an account to the education savings authority
by either of the two quarterly application deadlines immediately preceding July 1 as
provided for in paragraph (9) of this subsection,
</del>
<del>the student's family income exceeds 400 percent of the federal poverty level as defined
annually by the federal Office of Management and Budget; provided, however, that
from among students provided for in this subparagraph, students who previously
participated in the program shall be prioritized;
</del> <ins>(ii) Within 45 days of each application deadline provided for in paragraph (9) of this
subsection, the education savings authority shall:
(I) Determine whether the amount of funds appropriated for the program exceeded
the amount of funds necessary for the current quarter to include all students who
meet the family income requirement provided for in subparagraph (A) of this
paragraph; and
(II) Announce on its website the total number of current participating students and
the total number of students that may be selected to participate in the program
pursuant to this subparagraph.
(C) Notwithstanding any provision of subparagraph (A) or (B) of this paragraph to the
contrary:
(i) From among students who qualify to participate in the program pursuant to
subparagraph (A) of this paragraph, students shall be prioritized who have been found
in writing to have been the target or victim of bullying by:
(I) A school administrator, as provided for in Code Section 20-2-751.4; or
(II) A licensed physician, physician assistant, or osteopath; a licensed psychologist;
or a licensed professional counselor, social worker, or marriage and family
counselor; and
(ii) For students who qualify to participate in the program pursuant to
subparagraph (B) of this paragraph, the following priorities shall apply:
(I) Students who have been found in writing to have been the target or a victim of
bullying, as provided for in subdivisions (I) and (II) of division (i) of this
subparagraph, shall be prioritized; and
</ins>
<ins>(II) Students who are not currently participating in the program but who previously
participated in the program shall be prioritized over students who have not
previously participated in the program; and
(iii) If the number of applications for accounts exceeds the funds available for the
program, students within the final priority group shall be selected based on a random
selection process in which each such student has an equal chance of being selected;
</ins> (6) The student is not the recipient or beneficiary of a scholarship or other benefit
provided for under Article 33 of Chapter 2 of this title, the 'Georgia Special Needs
Scholarship Act,' nor shall the student or the student's parent seek to receive such
scholarship or other benefit at any time during which such student is a participating
student;
(7) The student is not the recipient or beneficiary of a scholarship, tuition grant, or other
benefit from a student scholarship organization, as such term is defined in Code Section
20-2A-1, nor shall the student or the student's parent seek to receive such scholarship,
tuition grant, or other benefit at any time during which such student is a participating
student;
(8) The student's parent signs an agreement promising:
(A) To provide an education for the student in at least the subjects of reading,
grammar, mathematics, social studies, and science;
(B) Not to enroll the student in a local school system school, local charter school, state
charter school, or completion special school while participating in the program;
provided, however, that this subparagraph shall not be construed to prohibit students
from part-time enrollment in a college and career academy, as such term is defined in
subsection (b) of Code Section 20-4-37, which has been approved by the education
savings authority to be a service provider; and
(C) To use account funds only for the student's qualified education expenses; and
(9) The student's parent submits an application for an account to the education savings
authority no later than the deadline established by the education savings authority;
provided, however, that the education savings authority shall provide quarterly
application periods <del>and deadlines that correspond with quarterly funding dates pursuant
to subsection (b) of Code Section 20-2B-24."
</del> SECTION 3.
Said article is further amended in Code Section 20-2B-23, relating to requirements for
participating schools, responsibilities of education savings authority, prohibited
requirements, and agency not established, by revising subsection (a) and adding a new
subsection to read as follows:
"(a) To be eligible to enroll a participating student, a participating school shall:
(1) Demonstrate fiscal soundness by having been in operation for one school year or by
submitting a financial <del>information</del> report <ins>prepared by a certified public accountant that
includes a balance sheet, an income statement, and a cash flow statement</ins> for the school
that complies with uniform financial accounting standards established by the education
savings authority <del>and conducted by a certified public accountant. The</del> <ins>Such</ins> report shall
confirm that the school desiring to participate is insured and the owner or owners of such
school have sufficient capital or credit to operate the school for the upcoming school year
serving the number of students anticipated with expected revenues from tuition and other
sources that may be reasonably expected. <del>The</del> <ins>Such</ins> report shall be limited in scope to
those records that are necessary for the education savings authority to make a
determination <del>on</del> <ins>as to the</ins> fiscal soundness of the school;
(2)(A) Beginning on August 1 of the first year following the year in which this article
becomes effective and by August 1 each year thereafter, submit to the education
savings authority and the Department of Education a report of:
(i) The aggregate data of student attendance rates and course completion rates for
eligible core courses and eligible CTAE courses, as such terms are defined in Code
Section 20-2-161.3, of all participating students enrolled in such participating school;
(ii) The dates of enrollment for each participating student enrolled in such
participating school during the previous school year; and
(iii) The amount of account funds, if any, received on behalf of each participating
student during the previous school year.
(B) Beginning on August 1, <ins>2030,</ins> <del>of the fourth year following the year in which this
article becomes effective</del> and by August 1 each year thereafter, submit to the education
savings authority and the Department of Education a de-identified report of the on-time
graduation rate of participating students enrolled in such participating school. For
purposes of this subparagraph, <del>the</del> <ins>such</ins> on-time graduate rate shall be calculated using
the four-year adjusted cohort graduation rate criteria which are used by the Department
of Education for state and federal accountability purposes;
(3) Comply with the antidiscrimination provisions of 42 U.S.C. Section 2000d;
(4) Comply with all health and safety laws or codes that apply to private schools;
(5) Comply with all provisions of Code Section 20-2-690 and any other state law
applicable to private schools; and
(6) Be <ins>physically</ins> located in Georgia.
<ins>(a.1) Notwithstanding any provision of subsection (a) of this Code section or any other law
to the contrary, if the period of time during which a private school is in the process of
becoming accredited by a recognized accrediting agency, as provided for in paragraph (8)
of Code Section 20-2B-21, while also having participating students enrolled in such private
school exceeds two years beyond the date on which such private school began enrolling
participating students, then such private school shall not be eligible to enroll participating
students until such private school achieves accreditation."
</ins>
SECTION 4.
Said article is further amended by revising Code Section 20-2B-24, relating to funding and
use of funds, as follows:
"20-2B-24.
(a)(1) The total amount of state funds allotted to the program each fiscal year shall not
exceed 1 percent of the total appropriation for the Quality Basic Education Program in
the General Appropriations Act from the previous fiscal year.
(2) Subject to the provisions of paragraph (1) of this subsection, upon this article
becoming effective, the account funds granted to each participating student pursuant to
this article shall be $6,500.00 for the first school year. Each subsequent school year, the
amount of account funds granted to each participating student <del>shall reflect austerity
adjustments, if any, and</del> shall be adjusted by an amount equal to the difference <del>between:
</del> <ins>calculated by subtracting the base amount provided for in Code Section 20-2-161 for the
previous school year from the
</ins> <del>(A) The</del> product of multiplying the base amount provided for in Code Section 20-2-161
for the current school year by the percentage at which the Quality Basic Education
Formula is initially funded for such school year; <del>and
(B) The base amount provided for in Code Section 20-2-161 for the previous school
year.
</del> (3) In the event that the total amount of state funds allotted to the program in a fiscal year
is not sufficient to provide 100 percent of the amount of account funds to be granted to
each participating student as provided in paragraph (2) of this subsection, the amount of
account funds to be granted to each participating student shall be adjusted according to
rules and regulations adopted by the education savings authority as provided for in Code
Section 20-2B-26; provided, however, that such rules and regulations shall provide that
such adjustment of account funds for students <del>whose family income does not exceed 400
percent of the federal poverty level as defined annually by the federal Office of
</del>
<del>Management and Budget</del> <ins>who qualify to participate in the program pursuant to
subparagraph (a)(5)(A) of Code Section 20-2B-22</ins> shall be no more than 50 percent of the
adjustment of account funds for students <del>whose family income exceeds 400 percent of
the federal poverty level as defined annually by the federal Office of Management and
Budget</del> <ins>who qualify to participate in the program pursuant to subparagraph (a)(5)(B) of
Code Section 20-2B-22.
</ins> (b)(1) When a <ins>participating</ins> student enters the program, the education savings authority
shall receive all documentation required for <del>the</del> <ins>such</ins> student's participation <del>during a
quarterly enrollment period as provided for in paragraph (9) of subsection (a) of Code
Section 20-2B-22</del> before <del>the first quarterly account payment is made for the</del> <ins>any funds
are allocated to the account of such</ins> student.
(2) Upon proper documentation received by the education savings authority, the
education savings authority shall <del>make quarterly payments</del> <ins>allocate funds</ins> to the account
of a participating student, beginning with the first <del>quarterly payment</del> <ins>quarter</ins> that
corresponds with the enrollment period <del>in</del> <ins>for</ins> which <del>the</del> <ins>such</ins> student's application was
received. As nearly as practical, <del>such quarterly payments shall be equal</del> <ins>such allocations
shall be made on a quarterly basis and in equal amounts.</ins> The state auditor shall cite as
an audit exception any failure by the education savings authority to meet any <ins>allocation
or</ins> payment deadlines and shall include such audit exceptions on the website established
pursuant to Code Section 50-6-32.
(3) The education savings authority shall develop a system for parents to direct account
funds to participating schools and service providers by electronic funds transfer,
automated clearing-house transfer, or another system that the education savings authority
finds to be commercially viable, cost-effective, and easy for parents of participating
students to use. The education savings authority shall not adopt a system that relies
solely on reimbursing parents for out-of-pocket expenses, but may determine certain
qualified education expenses that must require reimbursement or preapproval for
purchase. The education savings authority is authorized to qualify private financial
management firms to manage the <ins>allocation and</ins> payment system. The education savings
authority, at its discretion, shall be authorized to create a system of individually funded
accounts or notional accounts funded through a single state omnibus account.
<del>(4) If the participating school requires partial payment of tuition prior to the start of the
academic year to reserve space for students admitted to the school, such partial payment
may be paid by the education savings authority prior to the first quarterly of the year in
which the account is awarded, up to a maximum of $1,000.00, and deducted from
subsequent account payments. If a student decides not to attend the participating school,
the partial reservation payment shall be returned to the education savings authority by
such school. Only one reservation payment per participating student may be made per
school year.
</del> (c) Funds <del>received</del> <ins>allocated</ins> pursuant to this Code section shall not constitute taxable
income of the parent of the participating student.
(d) Funds <del>deposited into an account</del> <ins>allocated pursuant to this Code section</ins> shall be used
only for qualified education expenses for the participating student. Unused <ins>allocated</ins> funds
<del>in an account,</del> up to an amount not greater than 50 percent of the total funds <del>deposited into
</del> <ins>allocated to</ins> the account for the current school year, shall roll over to the following school
year; provided, however, that, if an account has been inactive for <del>two consecutive school
years</del> <ins>eight consecutive quarters,</ins> or the participating student graduates from high school,
the funds <del>in</del> <ins>allocated to</ins> such account shall be returned to the state general fund and the
account shall be closed.
(e) Nothing in this article shall be deemed to prohibit a parent or student from making a
payment for any tuition, fee, service, or product described in this article from a source other
than the account funds of the student."
SECTION 5.
Said article is further amended in Code Section 20-2B-26, relating to education savings
authority, powers and duties, rules and regulations, and limitation of liability, by revising
subsections (c) and (e) as follows:
"(c) The education savings authority shall have the authority to:
(1) Examine and audit accounts and records of participating student accounts, or contract
for such examining and auditing of accounts, and shall, at a minimum, <ins>annually</ins> conduct
<del>random audits</del> <ins>fraud detection and prevention audits of at least 5 percent of such accounts
selected on a random basis</ins> <del>on an annual basis;
</del> (2) Take or require that such corrective, remedial, or preventive actions be taken as may
be necessary or appropriate to protect the interests of the education savings authority, the
state, the United States, schools, students, and the public at large; and
(3) Make any parent or participating student ineligible for the program in the event of
misuse of account funds."
"(e) <del>The</del> <ins>In the event that sufficient funds are not appropriated by the General Assembly
to cover the costs incurred by the education savings authority to administer the program,
the</ins> education savings authority <ins>shall be authorized to deduct from each active account a
pro rata share of each account not to exceed 5 percent annually; provided, however, that
the total amount of such deductions shall not exceed the amount necessary to cover costs
of</ins> <del>may deduct an amount from accounts to cover the costs of overseeing and</del> administering
the program <ins>that are not covered by such appropriated funds or other funds available and
authorized for such purpose,</ins> <del>up to a maximum of 5 percent annually."
</del> SECTION 6.
Said article is further amended by revising Code Section 20-2B-28, relating to annual reports
and audits, as follows:
"20-2B-28.
<ins>(a)(1)</ins> <del>The</del> <ins>Not later than December 1, 2026, each year, the</ins> education savings authority
shall provide the <ins>respective chairpersons of the House Committee on Education, the
House Committee on Appropriations, the Senate Education and Youth Committee, and
the Senate Appropriations Committee, the Office of Planning and Budget, and the
Department of Audits and Accounts</ins> <del>General Assembly not later than December 1 of each
year with</del> a report regarding the program for the previous fiscal year. Such report shall
also be posted on the education savings authority's public website.
<del>(b)(2)</del> The report <ins>required under paragraph (1) of this subsection</ins> shall:
<ins>(A) Include</ins> <del>include,</del> but <ins>shall</ins> not be limited to,:
<ins>(i) The</ins> numbers, <ins>grade levels,</ins> and demographics of participating students;
<ins>(ii) The names and total number</ins> <del>and numbers</del> of participating schools <ins>and the grade
levels and total number of students by grade served by each such school;</ins> <del>. The report
shall also include:
</del> <ins>(1)(iii)</ins> Participating student performance on nationally norm-referenced tests or
state-wide assessments, including aggregate information on long-term performance
gains;
<ins>(2)(iv)</ins> The level of satisfaction with the program <del>from</del> reported by parents of
participating students;
<del>(3)(v)</del> The percentage of <ins>account</ins> funds used for each type of qualified education
expense included in paragraph <del>(11)</del> <ins>(10)</ins> of Code Section 20-2B-21; and
<ins>(vi) The percentage of account funds used, if any, to cover costs of administering the
program as provided for in subsection (e) of Code Section 20-2B-26;
(4)(B) Include a statement of the</ins> <del>The</del> fiscal impact to the state and resident school
systems of the program, taking into consideration both the impact on revenue and the
impact on expenses. The fiscal savings associated with students departing public
schools shall be explicitly quantified, even if the public school losing the student or
students does not reduce its spending. <ins>The Department of Education, the Office of
Student Achievement, the State Charter Schools Commission, local school systems, and
other public schools shall provide data requested by the education savings authority as
necessary to prepare such statement; and
(C) Protect the identity of participating students through whatever means the education
savings authority deems appropriate, including, but not limited to, by keeping
anonymous all disaggregated data and complying with state and federal guidelines for
student privacy.
</ins> <del>(c) The report shall apply appropriate analytical and behavioral science methodologies to
ensure public confidence in such report.
(d) The report shall protect the identity of participating students through whatever means
the education savings authority deems appropriate, including, but not limited to, by keeping
anonymous all disaggregated data and complying with state and federal guidelines for
student privacy. The names of participating schools and the number of participating
students at each such school shall be included in the report.
</del> <ins>(e)(b)</ins> The Department of Audits and Accounts shall audit the program annually. Audit
reports, including, but not limited to, any findings and recommendations by the Department
of Audits and Accounts, shall be included in the first annual report submitted by the
education savings authority pursuant to this Code section following completion of each
audit of the program by the Department of Audits and Accounts. Nothing in this
subsection shall be construed to limit the authority of the Department of Audits and
Accounts to conduct an audit at any time."
SECTION 7.
Said article is further amended by revising Code Section 20-2B-29, relating to publication
of public school performance, as follows:
"20-2B-29.
(a) In the annual report required by paragraph (2) of subsection (a) of Code Section
20-14-27, the Office of Student Achievement shall include a separate list of public schools
that performed in the lowest 25 percent of all public schools based on the cumulative
individual school ratings, as provided for in subsection (d) of Code Section 20-14-33, for
the two most recent school years for which the Office of Student Achievement issued such
ratings; provided, however, that, in the event of a tied rating, the public school with the
lower performance in student achievement shall be prioritized; provided, further, however,
that such list shall not include:
<ins>(1) Any public</ins> <del>any</del> school with more than 50 percent of its enrolled students assigned to
an education program provided for in Code Section 20-2-154.1;
<ins>(2) Any public school with a state-wide attendance zone;
(3) State charter schools, as such term is defined in Code Section 20-2-2081;
(4) Local charter schools, as such term is defined in Code Section 20-2-2062;
(5) Completion special schools, as such term is defined in Code Section 20-2-2096.1;
(6) State operated special schools, including the Georgia School for the Deaf, the
Georgia Academy for the Blind, the Atlanta Area School for the Deaf, and other special
schools as approved by the General Assembly;
(7) Any school that is part of the Department of Juvenile Justice school system;
(8) Any school that exclusively provides virtual instruction; or
(9) Any public school that exclusively enrolls students in grades before the third grade.
(b) By October 1 of each year, the Department of Education shall provide to the Office of
Student Achievement a complete list of all public schools which shall include, for each
such school, the school type designation, whether the school exclusively provides virtual
instruction, and the grades served by such school. The Office of Student Achievement
shall use such information for purposes of applying the exclusions provided for in
paragraphs (1) through (9) of subsection (a) of this Code section.
</ins>
<del>(b)(c)</del> By <del>December 1</del> <ins>January 15</ins> of each year, the Office of Student Achievement shall
publish on its website the list provided for in subsection (a) of this Code section."
SECTION 8.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 9.
All laws and parts of laws in conflict with this Act are repealed.