HB1413: HB1413 Georgia Student Finance Authority; establish a needs based scholarship program for students at eligible public and private postsecondary institutions

26 LC 61 0506S The Senate Committee on Higher Education offered the following substitute to HB 1413: A BILL TO BE ENTITLED AN ACT To amend Titles 20, 31, 47, and 50 of the Official Code of Geor gia Annotated, relating to1 education, health, retirement and pensions, and state governmen t, respectively, so as to2 amend various provisions relating to higher education; to estab lish the DREAMS3 scholarship; to provide for eligibility; to create an endowment fund for such scholarship; to4 provide for reports; to provide for definitions; to modify the maximum contribution limit for5 savings trust accounts under the Georgia Higher Education Savin gs Plan; to require the6 possession of opioid antagonists by institutions within the University System of Georgia and7 units within the Technical College System of Georgia; to provide for definitions; to provide8 for possession of opioid antagonists by certain individuals; to require the maintenance of a9 stock supply of opioid antagonists; to provide for the use and location of opioid antagonist10 storage compartments; to authorize certain personnel to administer opioid antagonists and11 carry opioid antagonists; to provide for immunity; to provide that neither civil liability nor12 professional discipline shall accrue to personnel, the systems, or institutions or units thereof;13 to make conforming changes; to exclude part-time students from membership in the Georgia14 Defined Contribution Plan; to modify provisions relating to the minimum reserve amount of15 the lottery shortfall reserve; to provide for effective dates a nd applicability; to provide for16 related matters; to repeal conflicting laws; and for other purposes.17 - 1 - 26 LC 61 0506S BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:18 PART I19 SECTION 1-1.20 Title 20 of the Official Code of Georgia Annotated, relating to education is amended in Part21 3 of Article 7 of Chapter 3, relating to the Georgia Student Finance Authority, is amended22 by adding a new subpart to read as follows:23 "Subpart 2B24 20-3-367.25 As used in this subpart, the term:26 (1) 'Academic year,' 'first professional degree program,' 'mat riculated status,' 'quarter27 hours,' and 'semester hours' shall have the same meanings as se t forth in Code28 Section 20-3-519.29 ( 2 ) ' C o s t o f a t t e n d a n c e ' m e a n s t h e e s t i m a t e o f a s t u d e n t ' s e d ucational expenses as30 calculated by the eligible postsecondary institution at which s uch student is enrolled31 pursuant to Title IV.32 (3) 'DREAMS scholarship' or 'scholarship' means the Dedicating Resources to33 Educationally Advance More Students (DREAMS) scholarship provid e d f o r i n t h i s34 subpart.35 (4) 'DREAMS Scholarship Endowment Fund' or 'endowment fund' means the DREAMS36 Scholarship Endowment Fund provided for in Code Section 20-3-367.2.37 (5) 'Eligible postsecondary institution' means:38 (A) An institution of the University System of Georgia; and39 (B) A unit of the Technical College System of Georgia.40 - 2 - 26 LC 61 0506S (6) 'Financial aid' means all scholarships and grants awarded to a student, excluding the41 DREAMS scholarship.42 (7) 'Grade point average' means the grade point average calculated by the commission43 for purposes of the HOPE scholarship provided for in Part 7 of this article.44 (8) 'Student aid index' means the student aid index calculated in accordance with45 Title IV.46 (9) 'Title IV' means Title IV of the federal Higher Education Act of 1965, as amended,47 20 U.S.C. Section 1070, et seq.48 (10) 'Unmet financial need' means the amount of the cost of attendance remaining after49 the student aid index and all other financial aid received by the student have been applied.50 20-3-367.1.51 (a) To be eligible for a DREAMS scholarship, a student seeking an undergraduate degree52 at an eligible postsecondary institution shall:53 (1) Meet the requirements provided for in paragraph (1) of sub section (a) and54 subsection (b) of Code Section 20-3-519.1;55 (2) Complete the Free Application for Federal Student Aid (FAFSA);56 (3) Meet enrollment standards by being admitted, enrolled, and classified as an57 undergraduate student in a matriculated status;58 (4) Be enrolled for not less than six semester hours, or the equivalent quarter hours, in59 any given semester or quarter;60 (5) Have not yet earned a baccalaureate or first professional degree; and61 (6) Have unmet financial need.62 (b) To maintain eligibility for a scholarship under this subpart, a student shall:63 (1) Continue to meet the eligibility requirements provided for in subsection (a) of this64 Code section; and65 - 3 - 26 LC 61 0506S (2) Maintain a minimum 2.0 grade point average and satisfactory academic progress in66 accordance with the standards and practices used for Title IV programs by the institution67 at which such student is enrolled.68 (c) Using moneys from the endowment fund, the authority shall provide scholarships to69 eligible students in accordance with the following conditions:70 (1) The maximum award amount per student per academic year sha ll be $3,000.00;71 provided, however, that no student shall be awarded an amount t hat is more than such72 student's unmet financial need; and73 (2) No student shall receive a scholarship award for more than eight semesters or 1274 quarters.75 (d) Each student who is awarded a scholarship shall:76 (1) Complete a financial literacy course; and77 (2) Be engaged in paid or unpaid work at least part-time, which may include, but shall78 not be limited to, employment, an internship or externship, volunteer work, or military79 service.80 20-3-367.2.81 (a) There is created the DREAMS Scholarship Endowment Fund as a separate fund in the82 state treasury. The endowment fund shall be administered by the authority. Moneys in the83 endowment fund shall be used only as provided for in this subpa rt. All appropriations84 made by the General Assembly for the scholarship and all public or private grants, gifts,85 donations, or contributions received for the scholarship shall be credited to the endowment86 fund. Unless specifically designated otherwise, all moneys credited to the endowment fund87 shall be credited to the principal account. All moneys appropr iated or otherwise paid or88 credited to the endowment fund shall be presumptively concluded to have been committed89 to the purpose for which they have been appropriated, paid, or credited and shall not lapse.90 (b) Three separate accounts shall be created within the endowment fund:91 - 4 - 26 LC 61 0506S (1) The principal account shall constitute the permanent endowment corpus. Except as92 otherwise provided in this Code section, moneys credited to suc h account shall not be93 appropriated, transferred, expended, encumbered, or otherwise diverted. The authority94 shall determine the minimum amount of moneys needed in the principal account in order95 to produce sufficient funds to sustain scholarship awards;96 (2) The scholarship account shall consist of moneys allocated to such account pursuant97 to the spending policy adopted by the authority. Moneys in such account shall be used98 to provide scholarship awards in accordance with this subpart; and99 (3) The transitional scholarship account shall consist of fund s appropriated for100 scholarship awards during the first two fiscal years of the scholarship. Moneys in such101 account shall be used to provide scholarships in accordance with this subpart.102 (c) The authority shall adopt an investment policy which provi des for the investment of103 moneys in the principal account as a pooled portfolio in accordance with prudent investor104 standards applicable to public trust funds. Such investment policy shall include provisions105 to preserve and grow the long-term value of the principal accou nt while promoting the106 stability and sustainability of scholarship awards.107 (d) In the event of a shortfall in moneys available for scholarship awards compared with108 projected expenditures for scholarship awards over the same period, and if such shortfall109 will have a materially adverse effect on scholarship awards, th e authority shall be110 authorized to adopt an emergency stabilization authorization to allow the distribution or111 transfer of moneys from the principal account so as to mitigate any reduction in such112 awards. Such authorization shall:113 (1) Require a two-thirds' majority vote of the board of the authority for adoption;114 (2) Be limited to the minimum amount necessary to mitigate any reduction in awards;115 (3) Not be used to permanently increase award levels;116 - 5 - 26 LC 61 0506S (4) Provide for the principal account to be replenished to not less than the minimum117 amount determined by the authority pursuant to paragraph (1) of subsection (b) of this118 Code section; and119 (5) Expire within one year; provided, however, that this shall not prohibit consecutive120 emergency stabilization authorizations.121 (e) The authority shall adopt a spending policy which provides for the allocation of122 earnings to the principal account and to the scholarship accoun t at the end of each fiscal123 year. Such spending policy shall:124 (1) Require that earnings allocated to the principal account s hall be used to grow the125 permanent endowment corpus in accordance with the investment policy; and126 (2) Require that earnings allocated to the scholarship account shall be used to provide127 scholarships in accordance with Code Section 20-3-367.1128 (f) During the first two fiscal years following capitalization of the endowment fund,129 scholarship awards shall be paid from the transitional scholarship account. The transitional130 scholarship account shall terminate at the end of the second fi scal year following131 capitalization of the fund, and any remaining moneys shall be transferred to the principal132 account. In the third fiscal year following capitalization of the fund and each fiscal year133 thereafter, scholarship awards shall be paid from the scholarship account.134 (g) Not later than December 1 of the second fiscal year following capitalization of the fund135 and each fiscal year thereafter, the authority shall prepare an d publish on its website an136 annual report regarding the endowment fund for the immediately preceding fiscal year. 137 Such report shall include the endowment fund's market value, in vestment performance,138 scholarship distributions, any distributions or transfers from the principal account, and139 confirmation of compliance with the requirements of this Code s ection and the policies140 adopted pursuant to this Code section.141 - 6 - 26 LC 61 0506S 20-3-367.3.142 Not later than December 1 each year, the authority shall provide a report on the DREAMS143 scholarship and the endowment fund to the Governor, the Speaker of the House of144 Representatives, the President of the Senate, the chairpersons of the House Committee on145 Higher Education and the Senate Higher Education Committee, the chancellor of the146 University System of Georgia, and the commissioner of the Technical College System of147 Georgia."148 PART II149 SECTION 2-1.150 Said title is further amended in Code Section 20-3-634, relatin g to savings trust accounts,151 availability, and terms and provisions relative to the Georgia Higher Education Savings Plan,152 by revising paragraph (1) of subsection (b) as follows:153 "(1) The maximum and minimum contribution allowed on behalf of each beneficiary for154 the payment of qualified higher education expenses at eligible institutions as defined in155 Section 529 of the Internal Revenue Code of 1986 or other appli cable federal law;156 provided, however, that no additional contributions may be made to a savings trust157 account when the total account balance for all accounts for the beneficiary equals or158 exceeds $235,000.00 $550,000.00;"159 PART III160 SECTION 3-1.161 Said title is further amended in Part 2 of Article 2 of Chapter 3, relating to university system,162 by adding a new Code section to read as follows:163 - 7 - 26 LC 61 0506S "20-3-88.164 (a) As used in this Code section, the term:165 (1) 'Automated external defibrillator' means a defibrillator which:166 (A) Is capable of cardiac rhythm analysis;167 (B) Will charge and be capable of being activated to deliver a countershock after168 electrically detecting the presence of certain cardiac dysrhythmias; and169 (C) Is capable of continuous recording of the cardiac dysrhythmia at the scene with a170 mechanism for transfer and storage or for printing for review subsequent to use.171 (2) 'Community funding source' means local sources of capital provided by local banking172 institutions, including credit unions, community foundations, c ounty or municipal173 governments, businesses, or residents. Such funding sources may include grants, gifts,174 contracts, monetary donations, or loans.175 (3) 'Institution' means any college, school, academy, university, or experiment station at176 any particular location which forms a part of the university system.177 (4) 'Opioid antagonist' shall have the same meaning as set for th in Code Section178 26-4-116.2.179 (5) 'Opioid antagonist storage compartment' means the structur e in which opioid180 antagonists may be stored.181 (6) 'University system' means the University System of Georgia.182 (b) No student, visitor, or university system employee shall be prohibited from possessing183 an opioid antagonist on university system property or at a univ ersity system sponsored184 activity.185 (c) Subject to available funding from community funding sources, each institution shall186 acquire and maintain a supply of opioid antagonists in any secu re location in such a187 quantity to be used for multiple opioid overdose events; provided, however, that, if there188 occurs a shortage of opioid antagonists, the institution shall make a reasonable effort to189 - 8 - 26 LC 61 0506S maintain its supply of opioid antagonists. Any such supply sha ll be maintained in190 accordance with the manufacturer's instructions.191 (d) Subject to available funding from community funding source s, each institution192 maintaining one or more automated external defibrillators shall maintain opioid antagonists193 in an opioid antagonist storage compartment which shall be loca ted within three feet of194 such defibrillators or as close as space reasonably allows.195 (e) Any university system personnel may administer an opioid a ntagonist to any person196 who the university system personnel believes in good faith to b e experiencing an opioid197 overdose:198 (1) While at an institution;199 (2) While at a university system sponsored activity;200 (3) While under the supervision of university system personnel; or201 (4) Before or after normal institution activities.202 (f) Any university system personnel who in good faith administ ers or chooses not to203 administer an opioid antagonist shall be immune from civil liab ility or professional204 discipline for any act or omission to act related to the admini stration of an opioid205 antagonist, except that such immunity shall not apply to an act of willful or wanton206 misconduct.207 (g) Neither civil liability nor professional discipline shall accrue to university system208 personnel and no civil liability shall accrue to the university system or to any institution of209 such system due to the removal or misuse of an opioid antagonist or antagonists; provided,210 however, that immunity shall not apply to an act of willful or wanton misconduct."211 SECTION 3-2.212 Said title is further amended in Article 2 of Chapter 4, relati ng to technical and adult213 education, by adding a new Code section to read as follows:214 - 9 - 26 LC 61 0506S "20-4-39.1.215 (a) As used in this Code section, the term:216 (1) 'Automated external defibrillator' means a defibrillator which:217 (A) Is capable of cardiac rhythm analysis;218 (B) Will charge and be capable of being activated to deliver a countershock after 219 electrically detecting the presence of certain cardiac dysrhythmias; and220 (C) Is capable of continuous recording of the cardiac dysrhythmia at the scene with a221 mechanism for transfer and storage or for printing for review subsequent to use.222 (2) 'Community funding source' means local sources of capital provided by local banking223 institutions, including credit unions, community foundations, c ounty or municipal224 governments, businesses, or residents. Such funding sources may include grants, gifts,225 contracts, monetary donations, or loans.226 (3) 'Opioid antagonist' shall have the same meaning as set for th in Code Section227 26-4-116.2.228 (4) 'Opioid antagonist storage compartment' means the structur e in which opioid229 antagonist may be stored.230 (5) 'Technical college system' means the Technical College System of Georgia.231 (6) 'Unit' means any institution, college, school, academy, or experiment station at any232 particular location which forms a part of the technical college system.233 (b) No student, visitor, or technical college system employee shall be prohibited from234 possessing an opioid antagonist on technical college system pro perty or at a technical235 college system sponsored activity.236 (c) Subject to available funding from community funding sources, each unit shall acquire237 and maintain a supply of opioid antagonists in any secure location in such a quantity to be238 used for multiple opioid overdose events; provided, however, th a t , i f t h e r e o c c u r s a239 shortage of opioid antagonists, the unit shall make a reasonable effort to maintain its supply240 - 10 - 26 LC 61 0506S of opioid antagonists. Any such supply shall be maintained in accordance with the241 manufacturer's instructions.242 (d) Subject to available funding from community funding sources, each unit maintaining243 one or more automated external defibrillators shall maintain opioid antagonists in an opioid244 antagonist storage compartment which shall be located within th ree feet of such245 defibrillators or as close as space reasonably allows.246 (e) Any technical college system personnel may administer an o pioid antagonist to any247 person who the technical college system personnel believes in g ood faith to be248 experiencing an opioid overdose:249 (1) While at a unit;250 (2) While at a technical college system sponsored activity;251 (3) While under the supervision of technical college system personnel; or252 (4) Before or after normal unit activities.253 (f) Any technical college system personnel who in good faith administers or chooses not254 to administer an opioid antagonist pursuant to this Code section shall be immune from civil255 liability or professional disciplin e for any act or omission to act related to the256 administration of an opioid antagonist, except that such immunity shall not apply to an act257 of willful or wanton misconduct.258 (g) Neither civil liability nor professional discipline shall accrue to technical college259 system personnel and no civil liability shall accrue to the technical college system or any260 unit of such system due to the removal or misuse of an opioid a ntagonist or antagonists;261 provided, however, that immunity shall not apply to an act of w illful or wanton262 misconduct."263 SECTION 3-3.264 Title 31 of the Official Code of Georgia Annotated, relating to health, is amended in Code265 Section 31-2A-20, relating to accessibility to opioid antagonists in government buildings and266 - 11 - 26 LC 61 0506S courthouses, guidelines and training, and limitations on liability, by revising subsection (a)267 as follows:268 "(a) As used in this Code section, the term:269 (1) 'Automated external defibrillator' shall have the same meaning as set forth in Code270 Section 31-11-53.1.271 (2) 'Courthouse' means a building occupied by judicial courts and containing rooms in272 which judicial proceedings are held, provided that such building contains an automated273 external defibrillator.274 (3) 'Government entity' means any state board, commission, agency, or department, or275 the governing authority of any county, municipality, or consoli dated government, but276 such term shall not include local school systems, public school s, charter schools, or277 university buildings the University System of Georgia, or the Technical College System278 of Georgia.279 (4) 'Opioid antagonist' shall have the same meaning as set for th in Code Section280 26-4-116.2.281 (5) 'Opioid related overdose' shall have the same meaning as set forth in Code Section282 26-4-116.2.283 (6) 'Qualified government building' means a building in which a government entity is284 housed or meets in its official capacity, including the portion occupied by a government285 entity of any building that is not publicly owned, provided that such building contains an286 automated external defibrillator, but such term shall not include a university building.287 (7) 'University building' means any building which forms a part of the University System288 of Georgia, including any college or university under the gover nment, control, and289 management of the Board of Regents of the University System of Georgia, or any290 building under the control of the State Board of the Technical College System of291 Georgia."292 - 12 - 26 LC 61 0506S PART IV293 SECTION 4-1.294 Title 47 of the Official Code of Georgia Annotated, relating to retirement and pensions, is295 amended by revising Code Section 47-22-1, relating to definitio ns regarding the Georgia296 Defined Contribution Plan, as follows:297 "47-22-1.298 As used in this chapter, the term:299 (1) 'Accumulated contributions' means the sum of all amounts d educted from the300 compensation of a member's salary and credited to such member's individual account in301 this plan, together with earnings thereon as provided in this chapter.302 (2) 'Board' means the Board of Trustees of the Employees' Reti rement System of303 Georgia.304 (3) 'Defined contribution plan' means a plan which provides fo r an individual account305 for each participant and for benefits based solely on the amoun t contributed to the306 participant's account; any income, expenses, gains, and losses; and any forfeiture of307 accounts of other participants which may be allocated to such participant's account, which308 plan is intended to be qualified under Section 401(a) of the In ternal Revenue Code, 42309 U.S.C. Section 401(a).310 (4) 'Employee' means any employee of an employer who is not a member of any public311 retirement or pension system created pursuant to this title; pr ovided, however, that the312 following persons shall not be considered employees under this paragraph:313 (A) A person performing servi ces for an institution in which s uch person is duly314 enrolled as a part-time or full-time student;315 (B) A person performing services for an employer pursuant to a contract as a bona fide316 independent contractor; or317 (C) Members of any state board or commission.318 - 13 - 26 LC 61 0506S (5) 'Employer' means the state or any department, bureau, inst itution, board, or319 commission of the state, the State Board of Education, and the Board of Regents of the320 University System of Georgia.321 (6) 'Member' means any employee included in the membership of the plan.322 (7) 'Plan' means the Georgia Defined Contribution Plan created by this chapter.323 (8) 'Plan year' means the 12 month period beginning July 1 of each year."324 PART V325 SECTION 5-1.326 Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended327 in Code Section 50-27-13, relating to disposition of lottery pr oceeds, budget report by328 Governor, appropriations by General Assembly, and shortfall reserve subaccount, by revising329 paragraph (3) of subsection (b) as follows:330 "(3)(A) As used in this paragraph, the term 'base lottery spend ' means expenditures331 from lottery proceeds for voluntary pre-kindergarten and for tu ition grants,332 scholarships, or loans to citizens of this state to enable such citizens of this state to333 attend colleges and universities located within this state, reg ardless of whether such334 colleges and universities are owned or operated by the board of regents or to attend335 institutions operated under the authority of the Technical College System of Georgia. 336 Such term shall not include expenditures from excess reserve fu nds required to be337 appropriated for educational purposes and programs pursuant to subparagraph (B) of338 this paragraph.339 (B) A Beginning in Fiscal Year 2025, a shortfall reserve shall be maintained within the340 Lottery for Education Account in an amount equal to at least 50 percent of the average341 amount of net proceeds deposited into or base lottery spend from such account for the342 preceding three fiscal years, whichever is greater, hereinafter referred to as the343 - 14 - 26 LC 61 0506S minimum reserve. Beginning in Fiscal Year 2025 and for each fiscal year thereafter,344 if on the last day of the preceding fiscal year the total reserve fund balance exceeds the345 minimum reserve, an amount equal to 10 percent of the excess reserve funds, meaning346 the amount that the total reserve fund balance exceeds the minimum reserve, shall be347 appropriated for educational purposes and programs.348 (B)(C) If the net proceeds paid into the Lottery for Education Account in any year are349 not sufficient to meet the amount appropriated for educational purposes and programs,350 the shortfall reserve may be drawn upon to meet the deficiency and any amount so351 drawn may count for purposes of appropriations in subparagraph (A) ( B ) of this352 paragraph.353 (C)(D) If the shortfall reserve is drawn upon and falls below 50 percent of the average354 amount of net proceeds deposited into or base lottery spend from such account for the355 preceding three fiscal years, whichever is greater, the shortfall reserve shall be356 replenished to the level required by subparagraph (A) (B) of this paragraph in the next357 fiscal year and the lottery funded programs shall be reviewed and adjusted accordingly."358 PART VI359 SECTION 6-1.360 (a) Except as otherwise provided in this section, this Act shall become effective on July 1,361 2026.362 (b) Part II of this Act shall become effective upon its approval by the Governor or upon363 its becoming law without such approval.364 (c) Part I of this Act shall apply to all academic years begin ning with the 2026-2027365 academic year.366 (d) Part V of this Act shall apply to all fiscal years beginning in Fiscal Year 2027.367 - 15 - 26 LC 61 0506S PART VII368 SECTION 7-1.369 All laws and parts of laws in conflict with this Act are repealed.370 - 16 -