2023 CODE OF GEORGIA › Title 20 - EDUCATION (§§ 20-1-1 — 20-18-7) › Chapter 2B - [EDUCATION SAVINGS AUTHORITY] (§§ 20-2B-1 — 20-2B-31) › Article 2 - [Repealed Effective 6/30/2035, or ten years after it becomes effective, whichever is later; provided, however, that any student who is qualified under the program prior to such repeal shall continue to be eligible under the program until the student returns to a public school, graduates from high school, or reaches the age of 20 years, or for any special education student, reaches the age of 21 years] GEORGIA PROMISE SCHOLARSHIP ACT (§§ 20-2B-20 — 20-2B-31) › Section 20-2B-24 - [See Note] [Allotment of state funds; grant of account funds; documentation; quarterly payments; payment system]

(a)
(1)
The total amount of state funds allotted to the program each fiscal year shall not exceed 1 percent of the total appropriation for the Quality Basic Education Program in the General Appropriations Act from the previous fiscal year.
(2)
Subject to the provisions of paragraph (1) of this subsection, upon this article becoming effective, the account funds granted to each participating student pursuant to this article shall be $6,500.00 for the first school year. Each subsequent school year, the amount of account funds granted to each participating student shall reflect austerity adjustments, if any, and shall be adjusted by an amount equal to the difference between:
(A)
The product of multiplying the base amount provided for in Code Section
20-2-161
for the current school year by the percentage at which the Quality Basic Education Formula is initially funded for such school year; and
(B)
The base amount provided for in Code Section
20-2-161
for the previous school year.
(3)
In the event that the total amount of state funds allotted to the program in a fiscal year is not sufficient to provide 100 percent of the amount of account funds to be granted to each participating student as provided in paragraph (2) of this subsection, the amount of account funds to be granted to each participating student shall be adjusted according to rules and regulations adopted by the education savings authority as provided for in Code Section 20-2B-26; provided, however, that such rules and regulations shall provide that such adjustment of account funds for students whose family income does not exceed 400 percent of the federal poverty level as defined annually by the federal Office of Management and Budget shall be no more than 50 percent of the adjustment of account funds for students whose family income exceeds 400 percent of the federal poverty level as defined annually by the federal Office of Management and Budget.
(b)
(1)
When a student enters the program, the education savings authority shall receive all documentation required for the student's participation during a quarterly enrollment period as provided for in paragraph (9) of subsection (a) of Code Section 20-2B-22 before the first quarterly account payment is made for the student.
(2)
Upon proper documentation received by the education savings authority, the education savings authority shall make quarterly payments to the account of a participating student, beginning with the first quarterly payment that corresponds with the enrollment period in which the student's application was received. As nearly as practical, such quarterly payments shall be equal. The state auditor shall cite as an audit exception any failure by the education savings authority to meet any payment deadlines and shall include such audit exceptions on the website established pursuant to Code Section
50-6-32
.
(3)
The education savings authority shall develop a system for parents to direct account funds to participating schools and service providers by electronic funds transfer, automated clearing-house transfer, or another system that the education savings authority finds to be commercially viable, cost-effective, and easy for parents of participating students to use. The education savings authority shall not adopt a system that relies solely on reimbursing parents for out-of-pocket expenses, but may determine certain qualified education expenses that must require reimbursement or preapproval for purchase. The education savings authority is authorized to qualify private financial management firms to manage the payment system. The education savings authority, at its discretion, shall be authorized to create a system of individually funded accounts or notional accounts funded through a single state omnibus account.
(4)
If the participating school requires partial payment of tuition prior to the start of the academic year to reserve space for students admitted to the school, such partial payment may be paid by the education savings authority prior to the first quarterly payment of the year in which the account is awarded, up to a maximum of $1,000.00, and deducted from subsequent account payments. If a student decides not to attend the participating school, the partial reservation payment shall be returned to the education savings authority by such school. Only one reservation payment per student may be made per school year.
(c)
Funds received pursuant to this Code section shall not constitute taxable income of the parent of the participating student.
(d)
Funds deposited into an account shall be used only for qualified education expenses for the participating student. Unused funds in an account, up to an amount not greater than 50 percent of the total funds deposited into the account for the current school year, shall roll over to the following school year; provided, however, that, if an account has been inactive for two consecutive school years or the participating student graduates from high school, the funds in such account shall be returned to the state general fund and the account shall be closed.
(e)
Nothing in this article shall be deemed to prohibit a parent or student from making a payment for any tuition, fee, service, or product described in this article from a source other than the account funds of the student.
Repealed by 2024 Ga. Laws 457,§ 2-1, eff. 6/30/2035, or ten years after it becomes effective, whichever is later; provided, however, that any student who is qualified under the program prior to such repeal of Part II shall continue to be eligible under the program until the student returns to a public school, graduates from high school, or reaches the age of 20 years, or for any special education student, reaches the age of 21 years.
Added by 2024 Ga. Laws 457,§ 2-1, eff. only if the "Quality Basic Education Act," as provided for in Article 6 of Chapter 2 of Title 20, is fully funded, app. to school years beginning on 7/1/2025, and continuing thereafter.