---
title: SB 472. Local Boards of Education; audit findings or findings by the state auditor of financial mismanagement or misconduct; provide for the suspension of members
collection: bills
id: 2025-2026/sb472
cite_as: SB 472, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb472
md_url: https://georgiacommons.org/bills/2025-2026/sb472.md
text_url: https://georgiacommons.org/bills/2025-2026/sb472/text
source_url: https://www.legis.ga.gov/legislation/72966
date: 2026-05-12
status: passed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
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omitted: votes and history
omitted_chars: 1236
omitted_url: https://georgiacommons.org/bills/2025-2026/sb472.md?full=1
bill_number: SB 472
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2026-05-12
last_action: Effective Date 2026-05-12
sponsors:
  - Billy Hickman
  - Larry Walker
  - Blake Tillery
  - Chuck Hufstetler
  - Freddie Sims
  - Carden Summers
  - Max Burns
  - Will Wade
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB472/2025
upstream_id: 2111519
summaries_model: claude-sonnet-5
topic_tags:
  - school board oversight
  - school district finances
  - state auditor authority
  - school superintendent contracts
  - independent school system consolidation
---

# SB 472. Local Boards of Education; audit findings or findings by the state auditor of financial mismanagement or misconduct; provide for the suspension of members

## Text

Senate Bill 472
By: Senators Hickman of the 4th, Walker III of the 20th, Tillery of the 19th, Hufstetler of the
52nd, Sims of the 12th and others
AS PASSED
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to
elementary and secondary education, so as to provide for the suspension of members of local
boards of education following certain audit findings or findings by the state auditor of
financial mismanagement or misconduct; to provide for employment contract terms,
conditions, and limitations for local school superintendents under certain conditions; to
provide for a cap on the total amount of advance distributions of state allotted funds that may
be made by the State Board of Education to local units of administration; to provide for plans
for monitoring, supports, and intervention; to provide for the authority of the state auditor
relative to such plans; to provide that a petition signed by 10 percent of the qualified voters
in an independent school system shall be required in order to hold an election to determine
whether to annul the special law of the independent school system so that it becomes a part
of the respective county school system or systems in which the territory of the independent
school system is located; to repeal outdated terms and provisions; to make conforming
changes; to amend Chapter 6 of Title 50 of the Official Code of Georgia Annotated, relating
to the Department of Audits and Accounts, so as to revise provisions for financial audits of
local school systems and state charter schools by and on behalf of the Department of Audits
and Accounts; to require the Department of Audits and Accounts to develop and implement
a program of progressive monitoring, supports, and interventions to local school systems and
state charter schools; to provide for investigations of local school systems by the state
auditor; to provide for an effective date; to provide for related matters; to repeal conflicting
laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to elementary and
secondary education, is amended in Article 3, relating to local boards of education, by
revising Code Section 20-2-73, relating to suspension and removal of local school board
members upon potential loss of accreditation or when schools in system are turnaround
eligible schools, procedures, petition for reinstatement, prohibition on use of public funds for
litigation expenses, and reimbursement of expenses, as follows:
"20-2-73.
(a)(1) Notwithstanding Code Section 20-2-54.1 or any other provisions of law to the
contrary, if:
(A) A local school system or school is placed on the level of accreditation immediately
preceding loss of accreditation for any reason or reasons by one or more accrediting
agencies included in subparagraph (A) of paragraph (6) of Code Section 20-3-519, the
local board of education shall notify the State Board of Education in writing within
three business days of such placement and the State Board of Education shall conduct
a hearing in not less than ten days of such notice nor more than 90 days and recommend
to the Governor whether to suspend all eligible members of the local board of education
with pay; <del>or
</del> (B) One-half or more of the schools in a local school system are turnaround eligible
schools, as defined in subsection (a) of Code Section 20-14-45, for the fifth or more
consecutive year, the Department of Education shall notify the State Board of
Education in writing within three business days of the publication of the list of
turnaround eligible schools by the Office of Student Achievement, and the State Board
of Education with input from the State School Superintendent shall conduct a hearing
in not less than ten days of such notice nor more than 90 days and recommend to the
Governor whether to suspend all eligible members of the local board of education with
pay; provided, however, that this subparagraph shall be tolled for a local board of
education while under a contract amendment or intervention contract pursuant to Code
Section 20-14-45 so long as such local board of education is in substantial compliance
with the terms of such contract amendment or intervention contract; <ins>or
(C)(i) A local school system is designated by the state auditor as requiring the highest
level of monitoring, supports, and interventions promulgated by the Department of
Audits and Accounts pursuant to Code Section 50-6-6, the state auditor shall notify
the State Board of Education in writing within three business days of making such
designation, and the State Board of Education shall, upon a recommendation of the
audit committee of the State Board of Education followed by a majority vote of the
State Board of Education, conduct a hearing in not less than ten days of such vote nor
more than 90 days and recommend to the Governor whether to suspend any eligible
members of the local board of education with pay.
(ii) A local board of education, a member thereof, a local school system, or a local
school superintendent is the subject of a finding by the state auditor of financial
mismanagement or misconduct following an investigation made pursuant to Code
Section 50-6-28, the state auditor shall notify the State Board of Education in writing
within three business days of such finding, and the State Board of Education shall,
upon a recommendation of the audit committee of the State Board of Education
followed by a majority vote of the State Board of Education, conduct a hearing in not
less than ten days of such vote nor more than 90 days and recommend to the Governor
whether to suspend any eligible members of the local board of education with pay.
</ins>
(2) A majority of the members of a local board of education may petition the State Board
of Education to continue any hearing scheduled under this subsection. Upon a showing
of good cause, the <del>state board</del> <ins>State Board of Education</ins> may in its sound discretion
continue any such hearing. Notwithstanding any other provision of law, deliberations
held by the State Board of Education pursuant to this subsection to formulate its
recommendation to the Governor shall not be open to the public; provided, however, that
testimony shall be taken in an open meeting and a vote on the recommendation shall be
taken in an open meeting following the hearing or at the next regularly scheduled
meeting. If the State Board of Education makes such recommendation, the Governor
may, in his or her discretion, suspend all eligible members of the local board of education
with pay and, in consultation with the State Board of Education, appoint temporary
replacement members who shall be otherwise qualified to serve as members of such
board.
(b) Any local board of education member suspended under this Code section may petition
the Governor for reinstatement no earlier than 30 days following suspension and no later
than 60 days following suspension. In the event that a suspended member does not petition
for reinstatement within the allotted time period, his or her suspension shall be converted
into permanent removal, and the temporary replacement member shall become a permanent
member and serve out the remainder of the term of the removed member.
(c) Upon petition for reinstatement by a suspended local board of education member, the
Governor or his or her designated agent shall conduct a hearing for the purpose of receiving
evidence relative to whether the local board of education member's continued service on
the local board of education is more likely than not to improve the ability of the local
school system or school to retain or reattain its accreditation; <del>or</del> to improve the ratings of
the schools in the local school system so that less than one-half of the schools in such local
school system are on the turnaround eligible schools list in subsequent years; <ins>to no longer
be designated by the state auditor as requiring the highest level of monitoring, supports,
</ins>
<ins>and interventions promulgated by the Department of Audits and Accounts pursuant to Code
Section 50-6-6; or to remediate or mitigate the state auditor's finding of financial
mismanagement or misconduct.</ins> The appealing member shall be given at least 30 days'
notice prior to such hearing. Such hearing shall be held not later than 90 days after the
petition is filed and in accordance with Chapter 13 of Title 50, the 'Georgia Administrative
Procedure Act,' except that the individual conducting the hearing shall have the power to
call witnesses and request documents on his or her own initiative. For purposes of said
chapter and any hearing conducted pursuant to this Code section, the Governor shall be
considered the agency, and the Attorney General or his or her designee shall represent the
interests of the Governor in the hearing. If it is determined that it is more likely than not
that the local board of education member's continued service on the local board of
education improves the ability of the local school system or school to retain or reattain its
accreditation; <del>or</del> to improve the ratings of the schools in the local school system so that less
than one-half of the schools in such local school system are on the turnaround eligible
schools list in subsequent years; <ins>to no longer be designated by the state auditor as requiring
the highest level of monitoring, supports, and interventions promulgated by the Department
of Audits and Accounts pursuant to Code Section 50-6-6; or to remediate or mitigate the
state auditor's finding of financial mismanagement or misconduct,</ins> the member shall be
immediately reinstated; otherwise, the member shall be permanently removed, and the
temporary replacement member shall become a permanent member and serve out the
remainder of the term of the removed member or until the next general election which is
at least six months after the member was permanently removed, whichever is sooner.
Judicial review of any such decision shall be in accordance with Chapter 13 of Title 50.
(d)(1) Subparagraph <del>(B) of paragraph (1) of subsection (a)</del> <ins>(a)(1)(A)</ins> of this Code section
shall apply to a local school system or school which is placed on the level of accreditation
immediately preceding loss of accreditation on or after April 20, 2011.
(2) Subparagraph <del>(B) of paragraph (1) of subsection (a)</del> <ins>(a)(1)(B)</ins> of this Code section
shall apply to a local school system which, on or after July 1, 2017, has one-half or more
of the schools in the local school system on the turnaround eligible schools list for the
fifth or more consecutive year.
<ins>(3) Subparagraph (a)(1)(C) of this Code section shall apply to a local school system on
or after July 1, 2026, if:
(A) Such local school system is designated by the state auditor as requiring the highest
level of monitoring, supports, and interventions promulgated by the Department of
Audits and Accounts pursuant to Code Section 50-6-6; or
(B) Such local school system, the local board of education or a member thereof, or the
local school superintendent is the subject of a finding of financial mismanagement or
misconduct.
</ins> (e) For purposes of this Code section, an eligible member of a local board of education
shall mean a board member who:
(1) Was serving on the local board <ins>of education</ins> at the time the accrediting agency placed
the local school system or school on the level of accreditation immediately preceding loss
of accreditation; <del>or
</del> (2) Was serving on the local board <ins>of education</ins> at the time the local school system had
one-half or more of the schools in the local school system on the turnaround eligible
schools list for the fifth or more consecutive year and had served on the local board <ins>of
education</ins> for at least the immediately preceding two years;
<ins>(3) Was serving on the local board of education at the time the local school system was
designated by the state auditor as requiring the highest level of monitoring, supports, and
interventions promulgated by the Department of Audits and Accounts pursuant to Code
Section 50-6-6; or
</ins>
<ins>(4) Was serving on the local board of education at the time the local board of education
or a member thereof, the local school system, or the local school superintendent was the
subject of a finding of financial mismanagement or misconduct.
</ins> (f) A local board of education shall not expend any public funds for attorney's fees or
expenses of litigation relating to proceedings initiated pursuant to this Code section except
to the extent such fees and expenses are incurred prior to and through the recommendation
of the <del>state board</del> <ins>State Board of Education</ins> as provided for in subsection (a) of this Code
section; provided, however, that nothing in this subsection shall be construed to prohibit
an insurance provider from covering attorney's fees or expenses of litigation under an
insurance policy.
(g) Any suspended board member who is reinstated by the Governor pursuant to this Code
section may be reimbursed by the local board of education for his or her reasonable
attorney's fees and related expenses incurred in pursuing such reinstatement."
SECTION 2.
Said chapter is further amended in Article 5, relating to local school superintendents, by
revising Code Section 20-2-101, relating to appointment of school superintendents, as
follows:
"20-2-101.
<ins>(a)(1) Except as provided in paragraph (2) of this subsection, each local school
superintendent</ins> <del>Superintendents of each school system</del> shall be employed by the local
board of education under written contracts for a term of not less than one year and not
more than three years. Any provision of any such contract which provides for an
extension of the duration of employment thereunder, whether automatic or contingent
upon the occurrence of one or more events, shall be void if that extension would result
in employment under the contract, as extended, for a period which exceeds three years.
<ins>(2) 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. Any such term which exceeds 12 months shall be void.
(3) Any contract by which a local school superintendent is employed by a local board of
education that is entered into or renewed on or after July 1, 2026, shall include terms and
conditions that shall have the following effect:
(A) It shall be an act of default for the local school superintendent to be the subject of
a finding by the state auditor of financial mismanagement or misconduct following an
investigation made pursuant to Code Section 50-6-28;
(B) It shall be an act of default for the local school superintendent to be the subject of
a finding by the state auditor that the local school superintendent has knowingly failed
or refused to comply with a material requirement of a plan for intervention or other
corrective action plan put in place in conjunction with the local school system being
designated by the state auditor as requiring the highest level of monitoring, supports,
and interventions promulgated by the Department of Audits and Accounts pursuant to
Code Section 50-6-6; and
(C) In the event of an act of default provided for in subparagraph (A) or (B) of this
paragraph, the local board of education shall be authorized to terminate the employment
contract of the local school superintendent for cause.
</ins> (b)(1) No person shall be eligible to be appointed or employed <ins>or to serve</ins> as <ins>a local
school</ins> superintendent <del>of schools of any county or independent school system</del> unless such
person is of good moral character, has never been convicted of any crime involving moral
turpitude, and possesses acceptable business or management experience as specified by
the Professional Standards Commission or the minimum valid certificate or a letter of
eligibility for said certificate required by the Professional Standards Commission.
(2) No person shall be eligible to be appointed <ins>or</ins> employed, or to serve as <ins>a local school
</ins> superintendent <del>of schools of any county or independent school system</del> who has an
immediate family member sitting on the local board of education for <del>such</del> <ins>the local</ins> school
system or who has an immediate family member hired as or promoted to a principal,
assistant principal, or system administrative staff on or after July 1, 2009, by <del>that</del> <ins>such
local</ins> school system. As used in this <del>subsection</del> <ins>paragraph,</ins> the term 'immediate family
member' means a spouse, child, sibling, or parent or the spouse of a child, sibling, or
parent whose term as a member of the local board of education or whose employment as
a principal, assistant principal, or system administrative staff in the local school system
began on or after January 1, 2010. Nothing in this <del>Code section</del> <ins>paragraph</ins> shall affect
the employment of any person who is employed by a local school system on or before
July 1, 2009, or who is employed by a local school system when an immediate family
member becomes the <ins>local school</ins> superintendent for <del>that</del> <ins>such local</ins> school system.
(c) <ins>Local school superintendents</ins> <del>Superintendents</del> shall have such additional qualifications
as may be prescribed by local law or policies of the local board <ins>of education</ins> <del>for that school
district,</del> not inconsistent with the provisions of this chapter.
(d) At any time during the 12 months immediately preceding the expiration of an
appointed <ins>local</ins> school superintendent's contract or term of office, or when a vacancy in the
office of <ins>local</ins> school superintendent occurs, the local board of education may appoint and
employ a successor <ins>local school superintendent</ins> in accordance with the above provisions
of this Code section, notwithstanding that the terms of some or all of the <ins>local</ins> board <ins>of
education</ins> members will expire before <del>the employment of the superintendent so appointed
and employed</del> <ins>such employment</ins> begins.
(e) A local school superintendent may concurrently serve as a principal, teacher, or in
another staff position as directed by the local board <ins>of education</ins> in its sole discretion and
in accordance with the terms of the contract between the <ins>local school</ins> superintendent and
the local board <ins>of education.</ins> A local school superintendent may also serve concurrently
as <ins>local school</ins> superintendent of one or more local school systems in accordance with the
terms of his or her respective contracts and upon approval by each affected local school
system.
(f) No substantive or procedural right regarding employment or termination of
employment of a <ins>local school</ins> superintendent by a local school system shall be created by
this Code section. Rather, the terms and conditions of employment of a <ins>local</ins> school
superintendent by a local school system shall be determined exclusively by the contract
between those parties and may include, without being limited to, the conditions under and
procedures by which <del>that</del> <ins>such</ins> contract may be terminated prior to the end of the term of
<del>that</del> <ins>such</ins> contract."
SECTION 3.
Said chapter is further amended in Part 4 of Article 6, relating to financing under the "Quality
Basic Education Act," by revising subsection (b) of Code Section 20-2-166, relating to state
funds, calculation, allotment, and distribution, as follows:
"(b)(1) The State Board of Education shall, by regulation, provide for distribution of state
funds allotted to local units of administration under this article and budgets approved by
the <del>state board</del> <ins>State Board of Education.</ins> The state board is authorized to provide for
distribution of <ins>such</ins> state <ins>allotted</ins> funds to local units of administration at such times and
in such manner as will most likely meet the periodic needs of local units for the state
allotted funds, <ins>except as provided in paragraph (2) of this subsection.</ins> In determining the
time and manner for distribution of state <ins>allotted</ins> funds, the <del>state board</del> <ins>State Board of
Education</ins> may consider the time at which local school tax funds shall be collected and
made available to local units of administration. State <ins>allotted</ins> funds to be distributed to
local units under this article shall be withdrawn from the state treasury on requisitions to
be signed by the State School Superintendent, which shall be signed in accordance with
such regulations and directions of the <del>state board</del> <ins>State Board of Education.
</ins>
<ins>(2)(A) Except as provided for in subparagraph (B) of this paragraph, the aggregate of
state allotted funds distributed by the State Board of Education to a local unit of
administration in advance of the routine periodic allotments established by the Office
of Planning and Budget shall not exceed an amount that is equal to 50 percent of the
total of such local unit's state allotted funds for the preceding fiscal year.
(B) In the event that a local unit of administration requests or, in the opinion of the
state auditor, requires an advance distribution by the State Board of Education of state
allotted funds that would exceed the limit provided for in subparagraph (A) of this
paragraph, the State Board of Education shall be authorized to make advance
distributions that exceed the limit provided for in subparagraph (A) of this paragraph
only under the following conditions:
(i) The state auditor shall provide a written opinion to the State Board of Education
that such advance distribution is necessary and appropriate to improve the conditions
of the financial operations of the local unit of administration and shall include with
such opinion a plan for monitoring, supports, and intervention for the local unit of
administration developed by the Department of Audits and Accounts in consultation
with the Department of Education and the local unit of administration to the extent the
local unit of administration participates in such consultation. The local unit of
administration shall have the opportunity to request modification of the proposed
plan; provided, however, that the plan to be implemented shall be determined by the
state auditor;
(ii) Within 30 days of the date of such proposed plan, the local board of education or
other governing body of the local unit of administration shall adopt a resolution
stating that the local board of education or other governing body of the local unit of
administration and the officers, employees, and agents of such local unit of
administration shall strictly comply with the plan for the duration of such plan;
</ins>
<ins>(iii) The State Board of Education shall not authorize an advance distribution of any
state allotted funds to the local unit of administration without a recommendation in
writing from the state auditor;
(iv) The plan may be modified by the state auditor upon written notice to the State
Board of Education and the local unit of administration; and
(v) The plan shall remain in effect until concluded in writing by the state auditor."
</ins> SECTION 4.
Said chapter is further amended in Article 8, relating to consolidation of independent and
county school systems, by revising Code Section 20-2-370, relating to referendum on repeal
of special school law and consolidation of systems, as follows:
"20-2-370.
Whenever the <del>citizens of a municipality or</del> <ins>qualified voters of the territory included in an
</ins> independent school <ins>system</ins> <del>district authorized by law to establish and maintain a system
of schools by local taxation in whole or in part are operating a system of public schools
independent of the county school system and</del> wish to annul <del>their special school</del> <ins>the local
</ins> law <ins>establishing such independent school system</ins> and become a part of <del>the</del> <ins>each respective
</ins> county school system <ins>in which such territory is located,</ins> they shall present and file with the
governing authority of the city <ins>in which such independent school system is located</ins> a
petition signed by <del>one-fourth</del> <ins>10 percent</ins> of the qualified voters of <del>their</del> <ins>the</ins> territory
<ins>included in the independent school system;</ins> and <del>the</del> <ins>such</ins> governing authority shall then
submit the question at an election to be held in accordance with Chapter 2 of Title 21. A
majority of those voting shall be necessary to carry the election. Only qualified voters
residing within the <del>municipality or district</del> <ins>territory included in the independent school
system</ins> for six months prior to the election shall vote. An election shall not be held for the
same purpose more often than every 12 months."
SECTION 5.
Said chapter is further amended in said article by revising Code Section 20-2-371, relating
to proceedings when vote favors repeal and consolidation, as follows:
"20-2-371.
When the results of an election held under Code Section 20-2-370 are declared and
published in favor of repealing such independent school system, making the territory
included in the <ins>independent school</ins> system thereby to become a part of <del>the</del> <ins>each respective
</ins> county school system <ins>in which such territory is located,</ins> such independent <del>or local</del> school
system shall continue to function under its local laws, organizations, and regulations until
<del>the</del> <ins>each respective</ins> county board of education shall arrange for the operation by them of
such <del>school or schools within the local</del> <ins>independent school</ins> system as a part of <del>their public
</del> <ins>each respective county</ins> school system <ins>in which such territory is located."
</ins> SECTION 6.
Said chapter is further amended in said article by revising Code Section 20-2-372, relating
to effect of repeal and consolidation, as follows:
"20-2-372.
Where any <del>local or</del> independent <ins>school</ins> system is repealed by and in the manner provided
<ins>for</ins> in Code Sections 20-2-370 and 20-2-371, the territory formerly included in such
independent <ins>school</ins> system shall become and constitute a <del>school district</del> <ins>part</ins> of <del>the</del> <ins>each
</ins> county <ins>school system</ins> in which <del>it</del> <ins>such territory</ins> is located and shall enjoy the same
privileges and shall be governed by the same laws as <del>other school districts in</del> the <ins>existing
parts of such</ins> county <ins>school system or systems,</ins> <del>including the authority to levy local taxes
for school purposes; provided, however, that the rate for such taxation shall not exceed the
rate allowed by law to other similar school districts."
</del>
SECTION 7.
Chapter 6 of Title 50 of the Official Code of Georgia Annotated, relating to the Department
of Audits and Accounts, is amended by revising Code Section 50-6-6, relating to audit of
school and university systems, additional audits authorized, standards, and reports, as
follows:
"50-6-6.
(a) <ins>As used in this Code section, the term:
(1) 'Local school system' means and includes each local school system and each
completion special school, as provided for in Article 31C of this chapter, in this state.
(2) 'State charter school' shall have the same meaning as set forth in Code
Section 20-2-2081.
(a.1)</ins> It shall be the duty of the Department of Audits and Accounts thoroughly to audit and
<del>check the books and accounts of the county superintendents of schools and treasurers of
local school systems, of municipal systems, of the</del> <ins>to:
(1) Perform or cause to be performed an annual financial and compliance audit of
financial transactions and accounts of:
(A) Each local school system and state charter school; and
(B) The</ins> several units of the University System of Georgia, and of all other schools
receiving state aid <del>and making regular and annual reports to the State School
Superintendent, showing the amount received, for what purpose received, and for what
purposes expended. All such;</del> <ins>and
(2) Issue in conjunction with each such audit required under paragraph (1) of this
subsection suitable reports that comply with state and federal rules and regulations for
such audits.
(a.2) By July 1, 2026, the Department of Audits and Accounts shall develop and begin
implementing a program, the purpose of which is to:
</ins>
<ins>(1) Monitor the fiscal condition of each local school system and state charter school in
this state;
(2) Provide progressive levels of monitoring, supports, and interventions to local school
systems and state charter schools, ranging from technical assistance and audit services
to significant interventions including strict compliance requirements; and
(3) Provide reports of the fiscal condition of local school systems and state charter
schools at appropriate intervals.
</ins> (a.3) No state aid or public funds <ins>of any kind shall be</ins> held by <del>officials must be kept in
banks separate from their</del> <ins>any official or employee of any local board of education or other
public school governing body, local school system, state charter school, institution of the
University System of Georgia, or any other school receiving state aid for any length of time
in one or more of his or her</ins> individual bank accounts.
(b) Notwithstanding any other provisions of this chapter, <del>the local boards</del> <ins>each local board
</ins> of education <del>of the several county, independent, and area public school systems of this state
</del> <ins>or other public school governing body</ins> shall be authorized to have an additional audit made
of the <del>books, records, and accounts</del> <ins>financial affairs and transactions of all funds and
activities</ins> of the public <del>school system</del> <ins>schools</ins> over which any such board <ins>or governing body
</ins> has jurisdiction. <del>The local boards of education;</del> <ins>provided, however, that such additional
audit authorized under this subsection shall not be relied upon by a local school system or
state charter school in lieu of the audit by the Department of Audits and Accounts required
under subsection (a.1) of this Code section, nor shall such additional audit be deemed to
satisfy the requirements of subsection (a.1) of this Code section, except as provided for in
subsection (e) of this Code section. Such boards and governing bodies</ins> shall be authorized
to employ certified public accountants of this state to make the <ins>additional</ins> audits <ins>authorized
under this subsection</ins> and to expend funds for <del>the</del> <ins>such</ins> audits which are received by any
such board <ins>or governing body</ins> for educational purposes. <ins>Each report of any audit
conducted as provided for in this subsection shall be completed and a copy of such report
</ins>
<ins>shall be forwarded to the Department of Audits and Accounts within ten days of such
report being issued to the local school system.
</ins> (c) All audits <del>of such public school systems</del> <ins>provided for in subsections (a.1), (b), and (e)
of this Code section</ins> shall be conducted in <del>conformity with generally accepted standards
and principles of governmental accounting and auditing and</del> <ins>accordance with generally
accepted governmental auditing standards over financial statements in conformity with
generally accepted accounting principles of governmental accounting or other basis of
accounting authorized by this Code section and shall include tests of the accounting records
and other auditing procedures as considered necessary in the circumstances of such audit.
Such audits</ins> shall be subject to the standards, rules, and ethics promulgated by the Georgia
Society of Certified Public Accountants and the American Institute of Certified Public
Accountants. The <del>audit</del> report <ins>of each such audit</ins> shall include the auditor's <del>unqualified
</del> opinion upon the presentation of the financial position and the results of the operations of
the <del>public</del> <ins>local</ins> school system <ins>or state charter school</ins> which is audited. <del>If the auditor is
unable to express an unqualified opinion, he shall so state and shall further detail the
reasons for qualification or disclaimer of opinion including recommendations necessary to
make possible future unqualified opinions.
</del> <ins>(d) The Department of Audits and Accounts shall establish minimum audit readiness
requirements and audit scheduling priorities based on risk assessment, readiness, and
available resources. The Department of Audits and Accounts shall be authorized to delay
the commencement of an audit when minimum readiness requirements are not met.
Repeated failure to meet audit readiness requirements in a timely manner may be deemed
by the Department of Audits and Accounts to constitute a deficiency in internal control or
governance and may be reported as such in audit findings. The Department of Audits and
Accounts shall report chronic audit readiness failures to the State Board of Education and
the General Assembly.
</ins>
<ins>(e)(1) The state auditor shall have discretionary authority to engage certified public
accountants of this state to perform audits required under subsection (a.1) of this Code
section and to authorize local school systems and state charter schools to engage certified
public accountants to perform audits required under subsection (a.1) of this Code section;
provided, however, that such certified public accountants shall comply with requirements
set forth by the Department of Audits and Accounts as it relates to scope, methodology,
state compliance procedures, and risk assessment; and, provided, further, that no local
school system or state charter school shall engage a certified public accountant or any
other person or organization to perform such an audit without written authorization from
the state auditor.
(2) The state auditor shall annually submit a written report to the State Board of
Education of the local school systems and state charter schools that were audited by
certified public accountants pursuant to this subsection.
(f) The Department of Audits and Accounts shall adopt rules, regulations, guidance, and
procedures necessary to implement this Code section."
</ins> SECTION 8.
Said chapter is further amended by revising Code Section 50-6-28, relating to investigatory
duties generally, as follows:
"50-6-28.
<ins>(a)</ins> It shall be the duty of the state auditor to make an investigation as a part of his <ins>or her
</ins> audit of each and every department of the state government. When there are facts, records,
circumstances, or information that indicate mismanagement or misconduct on the part of
any official or employee of any department of the state government during either a past or
present administration, it shall be the duty of the state auditor to make the full investigation,
as provided in Code Section 50-6-29, of the department, official, or employee.
<ins>(b) The state auditor shall be authorized to make an investigation of any local school
system or state charter school, as such terms are defined in Code Section 50-6-6, in the
state. When there are facts, records, circumstances, or information that indicate
mismanagement or misconduct on the part of any official or employee of any local school
system in the state during either a past or present administration of the local school system,
it shall be the duty of the state auditor to make the full investigation, as provided in Code
Section 50-6-29, of the local school system, official, or employee."
</ins> SECTION 9.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 10.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

Senate Bill 472 lets the Governor suspend local school board members and creates new financial oversight rules for Georgia school districts after state auditor findings of mismanagement or misconduct, while also capping advance state funding and easing school system consolidation votes.

### Plain-language summary

Georgia already allows the Governor to suspend local school board members if a district risks losing accreditation or has many low-performing schools. This bill adds a new trigger: if the state auditor designates a local school system as needing the highest level of monitoring and intervention, or finds financial mismanagement or misconduct by a board, board member, school system, or superintendent, the State Board of Education can hold a hearing and recommend suspension to the Governor.

The bill also changes how local superintendents are hired starting July 1, 2026: contracts must treat an auditor's finding of financial mismanagement, or willful noncompliance with a corrective plan, as grounds for termination for cause. Systems labeled high-risk are limited to 12-month superintendent contracts. The bill caps advance distributions of state funds to school districts at 50 percent of the prior year's allotment unless the state auditor approves an exception with a monitoring plan. It lowers the petition threshold to dissolve an independent school system and merge it into a county system from 25 percent to 10 percent of qualified voters. It also directs the Department of Audits and Accounts to build a progressive monitoring and intervention program for school systems by July 1, 2026, and gives the state auditor authority to investigate local school systems. The law takes effect when the Governor signs it.

### What it does

- Adds new grounds for the Governor to suspend local school board members: a state auditor designation requiring the highest level of monitoring, or a finding of financial mismanagement or misconduct by a board, board member, school system, or superintendent.
- Requires new local superintendent contracts signed or renewed after July 1, 2026 to treat an auditor's finding of financial mismanagement or noncompliance with a corrective plan as a default allowing termination for cause.
- Limits superintendent contracts to 12 months for school systems the Department of Audits and Accounts labels high-risk.
- Caps advance distributions of state education funds to a local district at 50 percent of its prior year's allotment, unless the state auditor approves a monitoring and intervention plan allowing more.
- Lowers the voter petition threshold needed to hold an election on dissolving an independent school system and folding it into a county system, from 25 percent to 10 percent of qualified voters.
- Directs the Department of Audits and Accounts to build a progressive monitoring, support, and intervention program for local school systems and state charter schools by July 1, 2026, and authorizes the state auditor to investigate local school systems for mismanagement or misconduct.

### Who it affects

Local school board members and superintendents across Georgia, local school systems and state charter schools, the State Board of Education, the Governor's office, the Department of Audits and Accounts (the state auditor), and voters in independent school systems who might petition to dissolve those systems.

### Why it matters

School board members and superintendents in districts flagged for financial trouble would face a new path to suspension or contract termination, giving the state auditor more direct leverage over local school finances. Districts would also see stricter limits on getting state funds early, and it would become easier for voters to dissolve an independent school system.

### Key provisions

- Section 1 rewrites O.C.G.A. 20-2-73 to add suspension procedures triggered by a state auditor's high-risk designation or a finding of financial mismanagement or misconduct, following a State Board of Education hearing and recommendation to the Governor.
- Section 2 rewrites O.C.G.A. 20-2-101 so new or renewed superintendent contracts after July 1, 2026 must make an auditor's mismanagement finding or corrective-plan noncompliance an act of default allowing termination for cause, and caps contracts at 12 months for high-risk systems.
- Section 3 amends O.C.G.A. 20-2-166 to cap advance state fund distributions at 50 percent of a district's prior year allotment unless the state auditor certifies a monitoring plan justifying a larger advance.
- Sections 4 through 6 amend O.C.G.A. 20-2-370 through 20-2-372 to lower the petition threshold for dissolving an independent school system from one-fourth to 10 percent of qualified voters and clarify merger procedures with county systems.
- Section 7 rewrites O.C.G.A. 50-6-6 to require annual financial audits of every local school system and state charter school and directs the Department of Audits and Accounts to launch a progressive monitoring and intervention program by July 1, 2026.
- Section 8 amends O.C.G.A. 50-6-28 to give the state auditor authority to investigate any local school system or state charter school for suspected mismanagement or misconduct.
- Section 9 states the Act takes effect upon the Governor's approval or upon becoming law without approval.

## Status

- Status: Passed (2026-05-12)
- Last action: Effective Date 2026-05-12 (2026-05-12)
- Sponsors: Billy Hickman, Larry Walker, Blake Tillery, Chuck Hufstetler, Freddie Sims, Carden Summers, Max Burns, Will Wade
- Official page: https://www.legis.ga.gov/legislation/72966

> The history, votes, and amendments (1,236 characters) are at https://georgiacommons.org/bills/2025-2026/sb472.md?full=1