HB1220: HB1220 Education; student eligibility and maximum scholarship amounts; revise provisions

26 LC 49 2693S House Bill 1220 (COMMITTEE SUBSTITUTE) By: Representatives Ballard of the 147th, Efstration of the 104th, Hilton of the 48th, Jones of the 47th, and Donatucci of the 105th A BILL TO BE ENTITLED AN ACT To amend Chapter 2A of Title 20 of the Official Code of Georgia Annotated, relating to1 student scholarship organizations, so as to revise provisions f or student eligibility and2 maximum scholarship amounts; to provide for military students a nd students with3 Individualized Education Programs (IEPs), Section 504 Plans, or other designated4 disabilities; to provide for such designation; to require the D epartment of Education to5 publish a current list of participating schools and the medical or behavioral conditions that6 each school is either currently accommodating or is able to acc ommodate; to provide for7 related matters; to provide for an effective date and applicability; to repeal conflicting laws;8 and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Chapter 2A of Title 20 of the Official Code of Georgia Annotate d, relating to student12 scholarship organizations, is amended by revising paragraph (1) of Code Section 20-2A-1,13 relating to definitions, as follows:14 "(1) 'Eligible student' means a student who is a Georgia resident who, immediately prior15 to receiving a scholarship or tuition grant under Code Section 20-2A-2 and enrolling in16 H. B. 1220 (SUB) - 1 - 26 LC 49 2693S a qualified school or program, was enrolled in and attended for at least six weeks a17 Georgia secondary or primary public school or who is eligible to enroll in a qualified first18 grade, kindergarten program, or pre-kindergarten program; provided, however, that, if a19 student is deemed an eligible student pursuant to this paragraph, he or she shall continue20 to qualify as such until he or she graduates, reaches the age of 20, or returns to a public21 school, whichever occurs first; and provided, further, that the enrollment and six-week22 public school attendance requirements shall be waived in the ca se of a student whose23 parent is an active duty military service member stationed in Georgia during the previous24 year; a student with an Individualized Education Program (IEP) or a Section 504 Plan or25 who has been diagnosed with dyslexia, autism spectrum disorder, speech-language delay26 and disorder, hearing loss, or another intellectual and developmental disability designated27 by the Department of Education pursuant to Code Section 20-2A-2 ; or a student who,28 based on the school attendance zone of his or her primary resid ence, is or would be29 assigned to a public school that the Office of Student Achievem ent determines to be a30 low-performing school, who is the subject of officially documented cases of school based31 physical violence or student related verbal abuse threatening physical harm, or who was32 enrolled in a home study program meeting the requirements of su bsection (c) of Code33 Section 20-2-690 for at least one year immediately prior to rec eiving a scholarship or34 tuition grant under Code Section 20-2A-2."35 SECTION 2.36 Said chapter is further amended by revising paragraph (1) of Code Section 20-2A-2, relating37 to requirements for student scholarship organizations, as follows:38 "(1) With respect to the first $1.5 million of its annual revenue received from donations39 for scholarships or tuition grants, including interest earned on deposits and investments40 of scholarship funds or tuition grants, shall obligate at least 92 percent of such revenue41 for scholarships or tuition grants; with respect to its annual revenue received from42 H. B. 1220 (SUB) - 2 - 26 LC 49 2693S donations for scholarships or tuition grants in excess of $1.5 million and up to and43 including $10 million, including interest earned on deposits an d investments of44 scholarship funds or tuition grants, shall obligate at least 94 percent of such revenue for45 scholarships or tuition grants; with respect to its annual revenue received from donations46 for scholarships or tuition grants in excess of $10 million and up to and including $2047 million, including interest earned on deposits and investments of scholarship funds or48 tuition grants, shall obligate at least 95 percent of such revenue for scholarships or tuition49 grants; and, with respect to its annual revenue received from donations for scholarships50 or tuition grants in excess of $20 million, including interest earned on deposits and51 investments of scholarship funds or tuition grants, shall oblig ate at least 96 percent of52 such revenue for scholarships or tuition grants. On or before the end of the calendar year53 following the calendar year in which a student scholarship organization receives revenues54 from donations and obligates them for the awarding of scholarships or tuition grants, the55 student scholarship organization shall designate the obligated revenues for specific56 student recipients. Once the student scholarship organization designates obligated57 revenues for specific student recipients, in the case of multiyear scholarships or tuition58 grants, the student scholarship organization may distribute the entire obligated and59 designated revenues to a qualified school or program to be held in accordance with60 Department of Revenue rules for distribution to the specified recipients during the years61 in which the recipients are projected in writing by the private school to be enrolled at the62 qualified school or program. In making a multiyear distribution to a qualified school or63 program, the student scholarship organization shall require that if the designated student64 becomes ineligible or for any other reason the qualified school or program elects not to65 continue disbursement of the multiyear scholarship or tuition g rant to the designated66 student for all the projected years, then the qualified school or program shall immediately67 return the remaining funds to the student scholarship organizat ion. Once the student68 scholarship organization designates obligated revenues for specific student recipients, in69 H. B. 1220 (SUB) - 3 - 26 LC 49 2693S the case of multiyear scholarships or tuition grants for which the student scholarship70 organization distributes the obligated and designated revenues to a qualified school or71 program annually rather than the entire amount, if the designat ed student becomes72 ineligible or for any other reason the student scholarship orga nization elects not to73 continue disbursement for all years, then the student scholarsh ip organization shall74 designate any remaining previously obligated revenues for a new specific student75 recipient on or before the end of the following calendar year. Unless the student has an76 Individualized Education Program (IEP) or a Section 504 Plan or has been diagnosed77 with dyslexia, autism spectrum disorder, speech-language delay and disorder, hearing78 loss, or another intellectual and developmental disability (IDD ) designated by the79 Department of Education pursuant to this paragraph, the T h e maximum scholarship80 amount given by the student scholarship organization in any given year shall not exceed81 the average state and local expenditures per student in fall en rollment in public82 elementary and secondary education for this state. The Department of Education shall83 determine and publish such amount and such designated IDDs annually, no later than84 January 1;"85 SECTION 3.86 Said chapter is further amended by revising Code Section 20-2A-6, relating to maintenance87 of list on website, as follows:88 "20-2A-6.89 The Department of Education shall maintain on its website:90 (1) A a current list of all student scholarship organizations which have provided notice91 pursuant to paragraph (6) of Code Section 20-2A-2; and92 (2) A current list of participating schools and the medical or behavioral conditions each93 such participating school is either currently accommodating or is able to accommodate."94 H. B. 1220 (SUB) - 4 - 26 LC 49 2693S SECTION 4.95 This Act shall become effective upon its approval by the Governor or upon its becoming law96 without such approval and shall apply to all taxable years beginning on or after January 1,97 2026.98 SECTION 5.99 All laws and parts of laws in conflict with this Act are repealed.100 H. B. 1220 (SUB) - 5 -