SB498: SB498 Georgia Charter School Facilities Authority; establish

Georgia charter schools currently have limited options for financing construction or renovation of their buildings compared to traditional public school districts. This bill creates the Georgia Charter School Facilities Authority, a new public corporation with 15 members drawn from state education officials and appointees of the Governor, Senate President, and House Speaker. The authority would run a revolving loan fund and other financing tools to help qualified charter school organizations pay for building projects, capping most project loans at the lesser of 20 percent of project cost or $2 million, and renovation loans at $200,000. Loans could not exceed five years or the charter's current agreement term, whichever is sooner. The authority would be housed administratively inside the Georgia State Financing and Investment Commission, which also gets updated duties in Section 2 for handling charter school capital outlay funds. The authority's debts would not be backed by the state's credit, and it would be exempt from most state and local taxes.

• Creates the Georgia Charter School Facilities Authority as a public corporation with 15 members, including six state officials serving ex officio and nine gubernatorial and legislative appointees.
• Lets the new authority make loans and set up a revolving loan fund so charter schools can pay for construction, renovation, and rehabilitation of school buildings.
• Caps most project loans at the lesser of 20 percent of the project's total cost or $2 million, and caps renovation or modernization loans at $200,000.
• Limits loan terms to five years or the charter school's remaining charter agreement term, whichever ends first.
• Requires the state treasurer to withhold state funds from a charter school organization that fails to repay amounts owed to the authority, with exceptions for conflicts with existing contracts or federal law.
• Assigns the authority to the Georgia State Financing and Investment Commission for office space, staff, and administrative support, and updates that commission's responsibilities for charter school capital outlay funds.

Charter schools and the nonprofit organizations that run them, the Georgia State Financing and Investment Commission, the State Board of Education, the State Charter Schools Commission, and state officials appointed to serve on the new authority's board.

Charter schools that struggle to finance new buildings or repairs would gain access to state-backed loans and a revolving loan fund specifically designed for their facilities, potentially speeding up construction or renovation projects that might otherwise depend on private financing or fundraising.

• Code Section 20-2-2095.21 creates the 15-member authority, including six state officials serving ex officio and nine members appointed by the Governor, Senate President, and House Speaker to staggered four-year terms.
• Code Section 20-2-2095.22 gives the authority broad powers to make loans, lease property, issue notes, and create nonprofit subsidiary corporations, but Section 20-2-2095.22(c) denies it the power of eminent domain.
• Code Section 20-2-2095.23 sets loan caps: the lesser of 20 percent of project cost or $2 million for most projects, and $200,000 for renovation or modernization projects, with loan terms capped at five years or the remaining charter term.
• Code Section 20-2-2095.24 authorizes lease agreements of up to 50 years between the state, the authority, and charter school organizations, exempt from competitive bidding requirements.
• Code Section 20-2-2095.27 states that authority debts do not count as state debt or obligate the state's credit.
• Code Section 20-2-2095.28 exempts the authority's property, income, and notes from state and local taxes, except sales and use tax.
• Code Section 20-2-2095.31 requires the state treasurer to withhold state funds from a charter school organization that defaults on payments owed to the authority, with limited exceptions.
• Section 2 revises O.C.G.A. § 50-17-22 to update the Georgia State Financing and Investment Commission's responsibility for disbursing charter school capital outlay funds.

1. 2026-03-25House Committee Favorably Reported By Substitute (House)
2. 2026-03-10House Second Readers (House)
3. 2026-03-09House First Readers (House)
4. 2026-03-06Senate Passed/Adopted By Substitute (Senate)
5. 2026-03-06Senate Third Read (Senate)
6. 2026-03-06Senate Taken from Table (Senate)
7. 2026-03-06Senate Tabled (Senate)
8. 2026-03-04Senate Engrossed (Senate)

• Clint Dixon (R, SD-045)Primary sponsor
• Billy Hickman (R, SD-004)
• RaShaun Kemp (D, SD-038)
• Shawn Still (R, SD-048)
• Sonya Halpern (D, SD-039)
• Matt Dubnik (R, HD-029)

1. PassedSenate voteMarch 4, 2026

   31 yea, 22 nay (1 not voting, 1 absent)

   Motion To Engross: Sb 306, Sb 465, Sb 498, Sr 668: Senate Vote #615

2. PassedSenate voteMarch 6, 2026

   49 yea, 3 nay (1 not voting, 2 absent)

   Passage By Substitute: Senate Vote #663

• charter schools
• school facilities financing
• education funding
• state authorities
• school construction loans