House Bill 697 (AS PASSED HOUSE AND SENATE)
By: Representatives Evans of the 42nd, Ehrhart of the 36th, Abrams of the 89th, Riley of the
50th, Nimmer of the 178th, and others
A BILL TO BE ENTITLED
AN ACT
1 To amend Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to
2 postsecondary education, so as to revise the powers and duties of the Georgia Student
3 Finance Commission; to revise the functions and composition of the board of directors of the
4 Georgia Higher Education Assistance Corporation; to revise the composition of the board of
5 directors of the Georgia Student Finance Authority; to revise the powers and duties of the
6 Georgia Student Finance Authority; to change the distribution of funds contributed by
7 taxpayers to student loan funds; to establish nonprofit corporations for the distribution of
8 such funds; to provide for Zell Miller Grant Scholars; to provide for eligibility criteria to be
9 a Zell Miller Grant Scholar; to revise terminology relating to Zell Miller Scholarship
10 Scholars; to provide for related matters; to repeal conflicting laws; and for other purposes.
11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
12 SECTION 1.
13 Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to postsecondary
14 education, is amended by revising subparagraph (H) of paragraph (7) of Code Section
15 20-3-236, relating to the powers and duties of the Georgia Student Finance Commission,
16 board of commissioners, and officers, to read as follows:
17 “(H) To solicit, receive, and accept funds from any source, public or private, by gift,
18 grant, bequest, or otherwise, either absolutely or in trust, and to hold, use, invest,
19 administer, and expend such funds on behalf of the commission and for any of its
20 purposes; and to acquire from any source, public or private, by purchase, lease, gift,
21 bequest, or devise, any property, real, personal, or mixed, either absolutely or in trust,
22 and to hold, use, administer, and dispose of such property on behalf of the commission
23 and for any of its purposes; and”14 HB 697/AP
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24 SECTION 2.
25 Said chapter is further amended by revising subsection (a) of Code Section 20-3-264, relating
26 to functions and composition of the board of directors of the Georgia Higher Education
27 Assistance Corporation, to read as follows:
28 “(a) Functions and composition. The corporation shall be governed and all of its
29 corporate powers, duties, and functions shall be exercised by a board of directors. The
30 board of directors shall be composed of 13 members, who shall be the same persons who
31 are serving and who shall serve as members of the board of commissioners of the
32 commission pursuant to Code Section 20-3-234. The executive director of the corporation,
33 or president, if designated by such title by the board of directors, shall be an ex officio
34 member of the board of directors. The board of directors provided for by this subsection
35 shall be the successor to and a continuation of, without interruption, the board of directors
36 of the previously existing Georgia Higher Education Assistance Corporation. No director
37 shall be eligible to become an officer or employee of the corporation for a period of one
38 year after expiration of the director’s period of service as a director of the corporation.”
39 SECTION 3.
40 Said chapter is further amended by revising subsection (a) of Code Section 20-3-314, relating
41 to functions, composition, organization, and conduct of affairs of the board of directors of
42 the Georgia Student Finance Authority, to read as follows:
43 “(a) Functions and composition. The authority shall be governed and all of its corporate
44 powers, duties, and functions shall be exercised by a board of directors. The board of
45 directors shall be composed of 13 members, who shall be the same persons who are serving
46 and who shall serve as members of the board of commissioners of the commission pursuant
47 to Code Section 20-3-234. The executive director of the authority, or president, if
48 designated by such title by the board of directors, shall be an ex officio member of the
49 board of directors. The board of directors provided for by this subsection shall be the
50 successor to and a continuation of, without interruption, the board of directors of the
51 previously existing Georgia Higher Education Assistance Authority. No director shall be
52 eligible to become an officer or employee of the authority for a period of one year after
53 expiration of the director’s period of service as a director of the authority.”
54 SECTION 4.
55 Said chapter is further amended by revising subparagraph (O) of paragraph (1) of Code
56 Section 20-3-316, relating to powers and duties of the Georgia Student Finance Authority,
57 to read as follows:14 HB 697/AP
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58 “(O) To solicit, receive, and accept funds from any source, public or private, by gift,
59 grant, bequest, loan, or otherwise, either absolutely or in trust, and to hold, use,
60 administer, and expend such funds on its behalf and for any of its corporate purposes;
61 and to acquire from any source, public or private, by purchase, lease, gift, bequest, or
62 devise, any property, real, personal, or mixed, either absolutely or in trust, and to hold,
63 use, administer, and dispose of such property on its behalf and for any of its corporate
64 purposes;”
65 SECTION 5.
66 Said chapter is further amended by substituting a semicolon for “; and” at the end of division
67 (1)(W)(iv), by substituting “; and” for the semicolon at the end of subparagraph (X) of
68 paragraph (1), and by adding a new subparagraph to paragraph (1) of Code Section 20-3-316,
69 relating to powers and duties of the Georgia Student Finance Authority, as follows:
70 “(Y) To incorporate one or more nonprofit corporations to aid the authority in carrying
71 out any of its powers, duties, and functions. Any such nonprofit corporation created
72 pursuant to this subparagraph shall be a body corporate and politic and shall be created
73 pursuant to Chapter 3 of Title 14, the ‘Georgia Nonprofit Corporation Code,’ and the
74 Secretary of State shall be authorized to accept such filing. Upon dissolution of any
75 such nonprofit corporation, any assets of such nonprofit corporation shall revert to the
76 authority or to any successor to the authority, or failing such succession, to the State of
77 Georgia. The authority shall not be liable for the debts, obligations, or bonds of any
78 such nonprofit corporation or for the actions or omissions to act of any such nonprofit
79 corporation unless the authority so consents;”
80 SECTION 6.
81 Said chapter is further amended by adding a new Code section to read as follows:
82 “20-3-316.1.
83 (a) Each Georgia income tax return form for taxable years beginning on or after January
84 1, 2015, shall contain appropriate language, to be determined by the state revenue
85 commissioner, offering the taxpayer the opportunity to contribute to the nonprofit
86 corporations established by subparagraph (Y) of paragraph (1) of Code Section 20-3-316
87 to assist students with educational expenses by either donating all or any part of any tax
88 refund due and by authorizing a reduction in the refund check otherwise payable, or by
89 contributing any amount over and above any amount of tax owed by adding that amount
90 to the taxpayer’s payment. The instructions accompanying the income tax return shall
91 include a description of the purposes for which the nonprofit corporations were established
92 and the intended use of moneys received from the contributions. Each taxpayer required14 HB 697/AP
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93 to file a state income tax return who desires to contribute to these nonprofit corporations
94 may designate such contribution as provided on the appropriate income tax return form.
95 (b) The Department of Revenue shall determine annually the total amount so contributed,
96 and shall transmit such amount to the authority for even division among and deposit in the
97 nonprofit corporations established by subparagraph (Y) of paragraph (1) of Code Section
98 20-3-316.”
99 SECTION 7.
100 Said chapter is further amended by repealing Code Section 20-3-409, relating to a taxpayer
101 opportunity to contribute to student loan funds.
102 SECTION 8.
103 Said chapter is further amended in Code Section 20-3-519, relating to definitions, by adding
104 a new paragraph and revising paragraph (27) as follows:
105 “(26.1) ‘Zell Miller Grant Scholar’ means a student that has met the applicable eligibility
106 requirements to receive a HOPE grant in accordance with Code Section 20-3-519.5 and
107 earned a cumulative grade point average of at least 3.5 at the end of any quarter or
108 semester in which the student has attended courses toward a diploma or certificate.
109 (27) ‘Zell Miller Scholarship Scholar’ means a student that has met the applicable
110 eligibility requirements to receive a HOPE scholarship in accordance with Code Section
111 20-3-519.2 and:
112 (A) As an incoming freshman:
113 (i) Having graduated from an eligible high school with a grade point average of at
114 least 3.7 calculated in accordance with Code Section 20-2-157 and having received
115 a score of at least 1,200 combined critical reading score and math score on a single
116 administration of the SAT or an ACT composite scale score of at least 26;
117 (ii) Having graduated from an eligible high school as a valedictorian or salutatorian;
118 or
119 (iii) Having completed a home study program meeting the requirements of subsection
120 (c) of Code Section 20-2-690, having received a score of at least 1,200 combined
121 critical reading score and math score on a single administration of the SAT or an ACT
122 composite scale score of at least 26, and earning a cumulative grade point average of
123 at least 3.3 at an eligible postsecondary institution at the end of the quarter or semester
124 in which the student has attempted 45 quarter hours or 30 semester hours, provided
125 that such student shall be eligible to receive a retroactive scholarship for such
126 student’s freshman year to be paid at the end of the freshman year; and14 HB 697/AP
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127 (B) As a sophomore, junior, senior, or first professional student who met the
128 requirements of subparagraph (A) of this paragraph, having a cumulative grade point
129 average of at least 3.3 at the checkpoints set forth in paragraph (1) of subsection (b) of
130 Code Section 20-3-519.2. Notwithstanding the foregoing, a student that entered an
131 eligible postsecondary institution as a freshman between July 1, 2007, and June 30,
132 2011, and met the requirements of subparagraph (A) of this paragraph may become a
133 Zell Miller Scholarship Scholar as a sophomore, junior, senior, or first professional
134 student.
135 A student that loses eligibility to be a Zell Miller Scholarship Scholar for any reason may
136 regain eligibility one time if the student requalifies at one of the checkpoints set forth in
137 paragraph (1) of subsection (b) of Code Section 20-3-519.2.”
138 SECTION 9.
139 Said chapter is further amended in Code Section 20-3-519.2, relating to eligibility
140 requirements for a HOPE scholarship, by revising subsection (f) as follows:
141 “(f) For each semester of eligibility, Zell Miller Scholarship Scholars shall be awarded an
142 amount in addition to the HOPE award amount as follows:
143 (1) If attending an eligible public institution, an amount equal to the difference between
144 the HOPE award amount and the then current academic year standard undergraduate
145 tuition amount at the institution to be paid; and
146 (2) If attending an eligible private institution, an amount equal to the difference between
147 the HOPE award amount and the HOPE tuition payment.”
148 SECTION 10.
149 Said chapter is further amended in Code Section 20-3-519.5, relating to eligibility
150 requirements for a HOPE grant, by adding a new subsection to read as follows:
151 “(d.1) For each semester or quarter following a semester or quarter that it is determined
152 that a student is a Zell Miller Grant Scholar, a student shall be awarded an amount in
153 addition to the HOPE award amount equal to the difference between the HOPE award
154 amount and the then current academic year standard undergraduate tuition amount at the
155 institution to be paid or the exceptional tuition rate amount in effect on January 1, 2014,
156 for programs with exceptional tuition rates in effect on January 1, 2014. Eligibility to be
157 a Zell Miller Grant Scholar shall be determined on a semester or quarter basis and paid
158 for the next semester or quarter in which a student is enrolled. Notwithstanding the
159 foregoing, a Zell Miller Grant Scholar shall also receive one semester or quarter of
160 retroactive payment if the student was not eligible to be a Zell Miller Grant Scholar
161 because he or she had no cumulative grade point average.”14 HB 697/AP
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162 SECTION 11.
163 All laws and parts of laws in conflict with this Act are repealed.
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