SB445: SB445 "Georgia Promise Scholarship Act"; public schools with a state-wide attendance zone and certain charter schools shall not be included in the separate list of public schools annually reported by the Office of Student Achievement; provide

26 LC 61 0448S (SCS) 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 Co de of Georgia Annotated,1 relating to promise scholarship accounts, so as to clarify provisions relative to participating2 private school accreditation; to repeal the authority of the St ate Board of Education to3 authorize qualified education expenses; to revise a provision relative to term of public school4 enrollment required to qualify as a participating student; to provide for an age restriction on5 the kindergarten related exception to such enrollment requirement; to provide for a first grade6 related exception to such enrollment requirement; to revise and add provisions relative to7 qualifications for participating students whose family income e xceeds a certain threshold;8 to provide for prioritization of students for qualification to participate in the program; to9 clarify what financial information shall be submitted by private schools to participate in the10 program; to provide for limits on eligibility for nonaccredited private schools to enroll11 participating students; to clarify provisions for the annual ad justment of account funds; to12 provide for allocation of account funds rather than account pay ments; to require that13 authorized reimbursable education expanses shall be preapproved by the education savings14 authority; to provide for covering costs of administering the p rogram; to revise provisions15 relative to annual reporting requirements for the education savings authority; to provide for16 schools that shall not be included in the separate list of public schools annually reported by17 the Office of Student Achievement; to provide for a complete list of public schools; to make18 S. B. 445 - 1 - 26 LC 61 0448S (SCS) conforming changes; to provide for an effective date; to repeal conflicting laws; and for other19 purposes.20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:21 SECTION 1.22 Article 2 of Chapter 2B of Title 20 of the Official Code of Geo rgia Annotated, relating to23 promise scholarship accounts, is amended in Code Section 20-2B-21, relating to definitions,24 by revising paragraphs (8) and (10) as follows:25 "(8) 'Private school' means a nonpublic school, sectarian or no nsectarian, which is26 accredited or in the process of becoming accredited by a recognized accrediting agency,27 as such term is defined in Code Section 20-14-96, or by one or more of the entities listed28 in subparagraph (A) of paragraph (6) of Code Section 20-3-519; provided, however, that29 any private school that is in the process of becoming accredite d by a recognized30 accrediting agency shall provide to the education savings autho rity, both annually and31 upon request by the education savings authority, written verification by such recognized32 accrediting agency that such private school is making timely an d good faith progress33 toward accreditation."34 "(10) 'Qualified education expenses' means any one or more of the following:35 (A) Tuition, fees, and required textbooks for eligible core courses and eligible CTAE36 courses, as such terms are defined in Code Section 20-2-161.3, at a participating school,37 accredited community college or postsecondary education institu tion, or nonpublic38 online learning program or course physically located in this state;39 (B) Tutoring services provided by an educator certified by the Professional Standards40 Commission;41 (C) Payment for the purchase of a curriculum, including any supplemental materials42 required by the curriculum;43 S. B. 445 - 2 - 26 LC 61 0448S (SCS) (D) Services from a physician or therapist licensed pursuant to Chapter 10A, 28, 33,44 34, or 44 of Title 43, including, but not limited to, for occup ational, behavioral,45 physical, or speech-language therapies;46 (E) No more than $500.00 per year to a fee-for-service transpo rtation provider for47 transportation to or from a participating school or service provider;48 (F) Fees for the management of account funds in accordance wit h subsection (e) of49 Code Section 20-2B-26;50 (G) Other expenses authorized by the State Board of Education or the education51 savings authority; or52 (H) Individual education expenses authorized by a majority of the parent review53 committee as provided for in Code Section 20-2B-25."54 SECTION 2.55 Said article is further amended in Code Section 20-2B-22, relating to participating student56 qualifications, continued eli gibility of par ticipating students to receive funds subject to57 conditions, requirements for parents of participating students, and forfeiture of account funds,58 by revising subsection (a) as follows:59 "(a) A student shall qualify for a promise scholarship account under this article if:60 (1) The student's parent resides within Georgia and has been a Georgia resident for at61 least one year; provided, however, that such one-year residency requirement shall not62 apply if the student's parent is an active duty military servic e member stationed in63 Georgia within the previous year;64 (2)(A) The student is currently enrolled and has been continuously e nrolled in a65 Georgia public school for a period of time that includes at lea s t t w o c o n s e c u t i v e66 enrollment counts one enrollment count conducted pursuant to Code Section 20-2-160;67 provided, however, that such.68 S. B. 445 - 3 - 26 LC 61 0448S (SCS) (B) The enrollment requirement provided for in subparagraph (A) of thi s paragraph69 shall not apply to a child who meets all other qualifications p rovided for in this70 subsection and is eligible to enroll in a qualified kindergarten program or the first grade71 of the primary grades program of the public school in which such child would be72 enrolled based on his or her residence; provided, however, that such child shall not have73 reached the age of seven on or before September 1;74 (3) The student resides in the attendance zone of a public school that is included on the75 list of public schools provided for in Code Section 20-2B-29;76 (4) The student does not meet any of the ineligibility criteri a provided for in77 subsection (b) of Code Section 20-3-519.1;78 (5)(A) Except as provided in subparagraph (B) of this paragraph, the student's family79 income does not exceed 400 percent of the federal poverty level as defined annually by80 the federal Office of Management and Budget.81 (B)(i) The family income requirement in subparagraph (A) of this paragraph shall not82 apply to a student whose family income exceeds 400 percent of t he federal poverty83 level as defined annually by the federal Office of Management and Budget if and to the84 extent the education savings authority determines quarterly, as provided for in division85 (ii) of this subparagraph, that the In the event that the amount of funds appropriated for86 the program exceeds the amount of funds necessary to include al l students who meet87 the family income requirement provided for in subparagraph (A) of this paragraph;88 provided, however, that, prior to such determination by the education savings authority,89 such student submitted an application for an account to the education savings authority90 during the current school year. and the student:91 (i) Is already a participating student; or92 (ii) Timely submitted an application for an account to the education savings authority93 by either of the two quarterly application deadlines immediately preceding July 1 as94 provided for in paragraph (9) of this subsection,95 S. B. 445 - 4 - 26 LC 61 0448S (SCS) the student's family income exceeds 400 percent of the federal poverty level as defined96 annually by the federal Office of Management and Budget; provid ed, however, that97 from among students provided for in this subparagraph, students who previously98 participated in the program shall be prioritized;99 (ii) Within 45 days of each application deadline provided for in paragraph (9) of this100 subsection, the education savings authority shall:101 (I) Determine whether the amount of funds appropriated for the program exceeded102 the amount of funds necessary for the current quarter to includ e all students who103 meet the family income requirement provided for in subparagraph ( A ) o f t h i s104 paragraph; and105 (II) Announce on its website the total number of current participating students and106 the total number of students that may be selected to participat e in the program107 pursuant to this subparagraph.108 (C) Notwithstanding any provision of subparagraph (A) or (B) of this paragraph to the109 contrary:110 (i) From among students who qualify to participate in the prog ram pursuant to111 subparagraph (A) of this paragraph, students shall be prioritized who have been found112 in writing to have been the target or victim of bullying by:113 (I) A school administrator, as provided for in Code Section 20-2-751.4; or114 (II) A licensed physician, physician assistant, or osteopath; a licensed psychologist; 115 or a licensed professional counselor, social worker, or marriag e and family116 counselor; and117 (ii) For students who qualify to participate in the program pu rsuant to118 subparagraph (B) of this paragraph, the following priorities shall apply:119 (I) Students who have been found in writing to have been the target or a victim of120 bullying, as provided for in subdivisions (I) and (II) of divis ion (i) of this121 subparagraph, shall be prioritized; and122 S. B. 445 - 5 - 26 LC 61 0448S (SCS) (II) Students who are not currently participating in the program but who previously123 participated in the program shall be prioritized over students who have not124 previously participated in the program; and125 (iii) If the number of applications for accounts exceeds the f unds available for the126 program, students within the final priority group shall be selected based on a random127 selection process in which each such student has an equal chance of being selected;128 (6) The student is not the recipient or beneficiary of a schol arship or other benefit129 provided for under Article 33 of Chapter 2 of this title, the ' Georgia Special Needs130 Scholarship Act,' nor shall the student or the student's parent seek to receive such131 scholarship or other benefit at any time during which such stud ent is a participating132 student;133 (7) The student is not the recipient or beneficiary of a scholarship, tuition grant, or other134 benefit from a student scholarship organization, as such term is defined in Code Section135 20-2A-1, nor shall the student or the student's parent seek to receive such scholarship,136 tuition grant, or other benefit at any time during which such s tudent is a participating137 student;138 (8) The student's parent signs an agreement promising:139 (A) To provide an education for the student in at least the su bjects of reading,140 grammar, mathematics, social studies, and science;141 (B) Not to enroll the student in a local school system school, local charter school, state142 charter school, or completion special school while participatin g in the program;143 provided, however, that this subparagraph shall not be construe d to prohibit students144 from part-time enrollment in a college and career academy, as such term is defined in145 subsection (b) of Code Section 20-4-37, which has been approved by the education146 savings authority to be a service provider; and147 (C) To use account funds only for the student's qualified education expenses; and148 S. B. 445 - 6 - 26 LC 61 0448S (SCS) (9) The student's parent submits an application for an account to the education savings149 authority no later than the deadline established by the educati on savings authority;150 provided, however, that the education savings authority shall p rovide quarterly151 application periods and deadlines that correspond with quarterly funding dates pursuant152 to subsection (b) of Code Section 20-2B-24."153 SECTION 3.154 Said article is further amended in Code Section 20-2B-23, relat ing to requirements for155 participating schools, responsibilities of education savings au thority, prohibited156 requirements, and agency not established, by revising subsectio n (a) and adding a new157 subsection to read as follows:158 "(a) To be eligible to enroll a participating student, a participating school shall:159 (1) Demonstrate fiscal soundness by having been in operation for one school year or by160 submitting a financial information report prepared by a certified public accountant that161 includes a balance sheet, an income statement, and a cash flow statement for the school162 that complies with uniform financial accounting standards established by the education163 savings authority and conducted by a certified public accountant. The Such report shall164 confirm that the school desiring to participate is insured and the owner or owners of such165 school have sufficient capital or credit to operate the school for the upcoming school year166 serving the number of students anticipated with expected revenues from tuition and other167 sources that may be reasonably expected. The Such report shall be limited in scope to168 those records that are necessary for the education savings auth ority to make a169 determination on as to the fiscal soundness of the school;170 (2)(A) Beginning on August 1 of the first year following the year in which this article171 becomes effective and by August 1 each year thereafter, submit to the education172 savings authority and the Department of Education a report of:173 S. B. 445 - 7 - 26 LC 61 0448S (SCS) (i) The aggregate data of student attendance rates and course completion rates for174 eligible core courses and eligible CTAE courses, as such terms are defined in Code175 Section 20-2-161.3, of all participating students enrolled in such participating school;176 (ii) The dates of enrollment for each participating student en rolled in such177 participating school during the previous school year; and178 (iii) The amount of account funds, if any, received on behalf of each participating179 student during the previous school year.180 (B) Beginning on August 1, 2030, of the fourth year following the year in which this181 article becomes effective and by August 1 each year thereafter, submit to the education182 savings authority and the Department of Education a de-identified report of the on-time183 graduation rate of participating students enrolled in such part icipating school. For184 purposes of this subparagraph, the such on-time graduate rate shall be calculated using185 the four-year adjusted cohort graduation rate criteria which are used by the Department186 of Education for state and federal accountability purposes;187 (3) Comply with the antidiscrimination provisions of 42 U.S.C. Section 2000d;188 (4) Comply with all health and safety laws or codes that apply to private schools;189 (5) Comply with all provisions of Code Section 20-2-690 and an y other state law190 applicable to private schools; and191 (6) Be physically located in Georgia.192 (a.1) Notwithstanding any provision of subsection (a) of this Code section or any other law193 to the contrary, if the period of time during which a private s chool is in the process of194 becoming accredited by a recognized accrediting agency, as provided for in paragraph (8)195 of Code Section 20-2B-21, while also having participating students enrolled in such private196 school exceeds two years beyond the date on which such private school began enrolling197 participating students, then such private school shall not be eligible to enroll participating198 students until such private school achieves accreditation."199 S. B. 445 - 8 - 26 LC 61 0448S (SCS) SECTION 4.200 Said article is further amended by revising Code Section 20-2B-24, relating to funding and201 use of funds, as follows:202 "20-2B-24.203 (a)(1) The total amount of state funds allotted to the program each fiscal year shall not204 exceed 1 percent of the total appropriation for the Quality Basic Education Program in205 the General Appropriations Act from the previous fiscal year.206 (2) Subject to the provisions of paragraph (1) of this subsect ion, upon this article207 becoming effective, the account funds granted to each participating student pursuant to208 this article shall be $6,500.00 for the first school year. Each subsequent school year, the209 amount of account funds granted to each participating student s hall reflect austerity210 adjustments, if any, and shall be adjusted by an amount equal to the difference between:211 calculated by subtracting the base amount provided for in Code Section 20-2-161 for the212 previous school year from the213 (A) The product of multiplying the base amount provided for in Code Section 20-2-161214 for the current school year by the percentage at which the Qual ity Basic Education215 Formula is initially funded for such school year; and216 (B) The base amount provided for in Code Section 20-2-161 for the previous school217 year.218 (3) In the event that the total amount of state funds allotted to the program in a fiscal year219 is not sufficient to provide 100 percent of the amount of account funds to be granted to220 each participating student as provided in paragraph (2) of this subsection, the amount of221 account funds to be granted to each participating student shall be adjusted according to222 rules and regulations adopted by the education savings authority as provided for in Code223 Section 20-2B-26; provided, however, that such rules and regulations shall provide that224 such adjustment of account funds for students whose family income does not exceed 400225 percent of the federal poverty level as defined annually by the federal Office of226 S. B. 445 - 9 - 26 LC 61 0448S (SCS) Management and Budget who qualify to participate in the program pursuant to227 subparagraph (a)(5)(A) of Code Section 20-2B-22 shall be no more than 50 percent of the228 adjustment of account funds for students whose family income ex ceeds 400 percent of229 the federal poverty level as defined annually by the federal Of fice of Management and230 Budget who qualify to participate in the program pursuant to subparagraph (a)(5)(B) of231 Code Section 20-2B-22.232 (b)(1) When a participating student enters the program, the education savings authority233 shall receive all documentation required for the such student's participation during a234 quarterly enrollment period as provided for in paragraph (9) of subsection (a) of Code235 Section 20-2B-22 before the first quarterly account payment is made for the any funds236 are allocated to the account of such student.237 (2) Upon proper documentation received by the education saving s authority, the238 education savings authority shall make quarterly payments allocate funds to the account239 of a participating student, beginning with the first quarterly payment quarter that240 corresponds with the enrollment period in for which the such student's application was241 received. As nearly as practical, such quarterly payments shall be equal such allocations242 shall be made on a quarterly basis and in equal amounts. The state auditor shall cite as243 an audit exception any failure by the education savings authority to meet any allocation244 or payment deadlines and shall include such audit exceptions on the website established245 pursuant to Code Section 50-6-32.246 (3) The education savings authority shall develop a system for parents to direct account247 funds to participating schools and service providers by electro nic funds transfer,248 automated clearing-house transfer, or another system that the education savings authority249 finds to be commercially viable, cost-effective, and easy for p arents of participating250 students to use. The education savings authority shall not ado pt a system that relies251 solely on reimbursing parents for out-of-pocket expenses, but m ay determine certain252 qualified education expenses that must require reimbursement or preapproval for253 S. B. 445 - 10 - 26 LC 61 0448S (SCS) purchase. The education savings authority is authorized to qua lify private financial254 management firms to manage the allocation and payment system. The education savings255 authority, at its discretion, shall be authorized to create a system of individually funded256 accounts or notional accounts funded through a single state omnibus account.257 (4) If the participating school requires partial payment of tuition prior to the start of the258 academic year to reserve space for students admitted to the school, such partial payment259 may be paid by the education savings authority prior to the first quarterly of the year in260 which the account is awarded, up to a maximum of $1,000.00, and deducted from261 subsequent account payments. If a student decides not to attend the participating school,262 the partial reservation payment shall be returned to the educat ion savings authority by263 such school. Only one reservation payment per participating student may be made per264 school year.265 (c) Funds received allocated pursuant to this Code section shall not constitute taxable266 income of the parent of the participating student.267 (d) Funds deposited into an account allocated pursuant to this Code section shall be used268 only for qualified education expenses for the participating student. Unused allocated funds269 in an account, up to an amount not greater than 50 percent of the total funds deposited into270 allocated to the account for the current school year, shall roll over to the following school271 year; provided, however, that, if an account has been inactive for two consecutive school272 years eight consecutive quarters, or the participating student graduates from high school,273 the funds in allocated to such account shall be returned to the state general fund and t he274 account shall be closed.275 (e) Nothing in this article shall be deemed to prohibit a parent or student from making a276 payment for any tuition, fee, service, or product described in this article from a source other277 than the account funds of the student."278 S. B. 445 - 11 - 26 LC 61 0448S (SCS) SECTION 5.279 Said article is further amended in Code Section 20-2B-26, relat ing to education savings280 authority, powers and duties, rules and regulations, and limita tion of liability, by revising281 subsections (c) and (e) as follows:282 "(c) The education savings authority shall have the authority to:283 (1) Examine and audit accounts and records of participating student accounts, or contract284 for such examining and auditing of accounts, and shall, at a minimum, annually conduct285 random audits fraud detection and prevention audits of at least 5 percent of such accounts286 selected on a random basis on an annual basis;287 (2) Take or require that such corrective, remedial, or preventive actions be taken as may288 be necessary or appropriate to protect the interests of the education savings authority, the289 state, the United States, schools, students, and the public at large; and290 (3) Make any parent or participating student ineligible for th e program in the event of291 misuse of account funds."292 "(e) The In the event that sufficient funds are not appropriated by the General Assembly293 to cover the costs incurred by the education savings authority to administer the program,294 the education savings authority shall be authorized to deduct from each active account a295 pro rata share of each account not to exceed 5 percent annually; provided, however, that296 the total amount of such deductions shall not exceed the amount necessary to cover costs297 of may deduct an amount from accounts to cover the costs of overseeing and administering298 the program that are not covered by such appropriated funds or other funds available and299 authorized for such purpose, up to a maximum of 5 percent annually."300 SECTION 6.301 Said article is further amended by revising Code Section 20-2B-28, relating to annual reports302 and audits, as follows:303 S. B. 445 - 12 - 26 LC 61 0448S (SCS) "20-2B-28.304 (a)(1) The Not later than December 1, 2026, each year, the education savings authority305 shall provide the respective chairpersons of the House Committe e on Education, the306 House Committee on Appropriations, the Senate Education and Youth Committee, and307 the Senate Appropriations Committee, the Office of Planning and Budget, and the308 Department of Audits and Accounts General Assembly not later than December 1 of each309 year with a report regarding the program for the previous fiscal year. Such report shall310 also be posted on the education savings authority's public website.311 (b)(2) The report required under paragraph (1) of this subsection shall:312 (A) Include include, but shall not be limited to,:313 (i) The numbers, grade levels, and demographics of participating students;314 (ii) The names and total number and numbers of participating schools and the grade315 levels and total number of students by grade served by each such school; . The report316 shall also include:317 (1)(iii) Participating student performance on nationally norm-referenc ed tests or318 state-wide assessments, including aggregate information on long-term performance319 gains;320 (2)(iv) The level of satisfaction with the program from reported by p a r e n t s o f321 participating students;322 (3)(v) The percentage of account funds used for each type of qualified education323 expense included in paragraph (11) (10) of Code Section 20-2B-21; and324 (vi) The percentage of account funds used, if any, to cover costs of administering the325 program as provided for in subsection (e) of Code Section 20-2B-26;326 (4)(B) Include a statement of the The fiscal impact to the state and resident school327 systems of the program, taking into consideration both the impact on revenue and the328 impact on expenses. The fiscal savings associated with student s departing public329 schools shall be explicitly quantified, even if the public scho ol losing the student or330 S. B. 445 - 13 - 26 LC 61 0448S (SCS) students does not reduce its spending. The Department of Educa tion, the Office of331 Student Achievement, the State Charter Schools Commission, local school systems, and332 other public schools shall provide data requested by the education savings authority as333 necessary to prepare such statement; and334 (C) Protect the identity of participating students through whatever means the education335 savings authority deems appropriate, including, but not limited to, by keeping336 anonymous all disaggregated data and complying with state and federal guidelines for337 student privacy.338 (c) The report shall apply appropriate analytical and behavioral science methodologies to339 ensure public confidence in such report.340 (d) The report shall protect the identity of participating students through whatever means341 the education savings authority deems appropriate, including, but not limited to, by keeping342 anonymous all disaggregated data and complying with state and f ederal guidelines for343 student privacy. The names of participating schools and the nu mber of participating344 students at each such school shall be included in the report.345 (e)(b) The Department of Audits and Accounts shall audit the program annually. Audit346 reports, including, but not limited to, any findings and recommendations by the Department347 of Audits and Accounts, shall be included in the first annual r eport submitted by the348 education savings authority pursuant to this Code section follo wing completion of each349 audit of the program by the Department of Audits and Accounts. Nothing in this350 subsection shall be construed to limit the authority of the Dep artment of Audits and351 Accounts to conduct an audit at any time."352 SECTION 7.353 Said article is further amended by revising Code Section 20-2B-29, relating to publication354 of public school performance, as follows:355 S. B. 445 - 14 - 26 LC 61 0448S (SCS) "20-2B-29.356 (a) In the annual report required by paragraph (2) of subsecti on (a) of Code Section357 20-14-27, the Office of Student Achievement shall include a separate list of public schools358 that performed in the lowest 25 percent of all public schools b ased on the cumulative359 individual school ratings, as provided for in subsection (d) of Code Section 20-14-33, for360 the two most recent school years for which the Office of Student Achievement issued such361 ratings; provided, however, that, in the event of a tied rating, the public school with the362 lower performance in student achievement shall be prioritized; provided, further, however,363 that such list shall not include:364 (1) Any public any school with more than 50 percent of its enrolled students assigned to365 an education program provided for in Code Section 20-2-154.1;366 (2) Any public school with a state-wide attendance zone;367 (3) State charter schools, as such term is defined in Code Section 20-2-2081;368 (4) Local charter schools, as such term is defined in Code Section 20-2-2062;369 (5) Completion special schools, as such term is defined in Code Section 20-2-2096.1;370 (6) State operated special schools, including the Georgia Scho ol for the Deaf, the371 Georgia Academy for the Blind, the Atlanta Area School for the Deaf, and other special372 schools as approved by the General Assembly;373 (7) Any school that is part of the Department of Juvenile Justice school system;374 (8) Any school that exclusively provides virtual instruction; or375 (9) Any public school that exclusively enrolls students in grades before the third grade.376 (b) By October 1 of each year, the Department of Education shall provide to the Office of377 Student Achievement a complete list of all public schools which shall include, for each378 such school, the school type designation, whether the school exclusively provides virtual379 instruction, and the grades served by such school. The Office of Student Achievement380 shall use such information for purposes of applying the exclusi ons provided for in381 paragraphs (1) through (9) of subsection (a) of this Code section.382 S. B. 445 - 15 - 26 LC 61 0448S (SCS) (b)(c) By December 1 January 15 of each year, the Office of Student Achievement shall383 publish on its website the list provided for in subsection (a) of this Code section."384 SECTION 8.385 This Act shall become effective upon its approval by the Governor or upon its becoming law386 without such approval.387 SECTION 9.388 All laws and parts of laws in conflict with this Act are repealed.389 S. B. 445 - 16 -