Bill Text: GA SB131 | 2011-2012 | Regular Session | Introduced

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Bill Title: HOPE Scholarships; provide students receiving scholarships who require remedial classes shall not be enrolled in research universities; Georgia Lottery Corporation Legislative Oversight Committee

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-02-23 - Senate Read and Referred [SB131 Detail]

Download: Georgia-2011-SB131-Introduced.html

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11 LC 28 5544

Senate Bill 131

By: Senator Thompson of the 5th

A BILL TO BE ENTITLED
AN ACT

To amend Part 7 of Article 7 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to HOPE scholarships and grants, so as to provide that students receiving HOPE scholarships who require remedial classes shall not be enrolled in the research universities; to provide that the failure by students who are receiving HOPE scholarships or grants to meet certain objectives within certain time periods shall result in the scholarships and grants being converted to loans; to provide for the repayment of such loans; to provide for the terms and conditions of such loans; to provide that students are not eligible for HOPE scholarships after the seventh year following high school graduation; to provide an exception for active duty military service; to provide for related matters; to amend Chapter 27 of Title 50 of the Official Code of Georgia Annotated, relating to the lottery for education, so as to provide for a Georgia Lottery Corporation Board of Directors; to provide for certain duties for the board of directors; to provide for certain duties for the Georgia Lottery Corporation's chief executive officer; to provide for a Georgia Lottery Corporation Legislative Oversight Committee; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Part 7 of Article 7 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating to HOPE scholarships and grants, is amended by revising Code Section 20-3-519.1, relating to ineligibility for scholarships or grants, as follows:

"20-3-519.1.

(a) A student is ineligible for any scholarship or grant described in this part if the student:

(1) Is not a United States citizen or a permanent resident alien who meets the definition of an eligible noncitizen under federal Title IV requirements;

(2) Has not complied with United States Selective Service System requirements for registration, if such requirements are applicable to the student;

(3) Is in default on a federal Title IV educational loan or a State of Georgia educational loan, provided that a student who is otherwise eligible and has fully repaid the defaulted loan will be eligible to obtain a scholarship or grant for future academic terms but not retroactively;

(4) Owes a refund on a federal Title IV student financial aid program or a Georgia student financial aid program, provided that a student who is otherwise eligible and has fully paid the refund owed will be eligible to obtain a scholarship or grant for future academic terms but not retroactively;

(5) Has been convicted of a felony offense involving marijuana, a controlled substance, or a dangerous drug as set out in Code Section 20-1-23 or 20-1-24 of the 'Drug-free Postsecondary Education Act of 1990,' provided that such ineligibility extends from the date of conviction to the completion of the next academic term;

(6) Is incarcerated; or

(7) Does not meet each qualification listed in the Code section relating to the relevant scholarship or grant and applicable to the student.

(b) A student who receives a HOPE scholarship and requires remedial classes shall not be enrolled in the University of Georgia, the Georgia Institute of Technology, the Georgia Health Sciences University, or Georgia State University."

SECTION 2.

Said part is further amended by revising Code Section 20-3-519.2, relating to eligibility requirements for a HOPE scholarship at a public postsecondary institution, by adding a new subsection to read as follows:

"(j) Students shall no longer be eligible for HOPE scholarships after the seventh year following their high school graduation; provided, however, that such time period shall be tolled for persons on active duty military service for the period of such military service."

SECTION 3.

Said part is further amended by revising Code Section 20-3-519.3, relating to eligibility requirements for a HOPE scholarship at a private postsecondary institution, by adding a new subsection to read as follows:

"(i) Students shall no longer be eligible for HOPE scholarships after the seventh year following their high school graduation; provided, however, that such time period shall be tolled for persons on active duty military service for the period of such military service."

SECTION 4.

Said part is further amended by revising Code Section 20-3-519.4, which was previously reserved, as follows:

"20-3-519.4.

Reserved. (a) Students receiving HOPE scholarships who attend four-year colleges or universities shall complete at least 90 quarter hours or 60 semester hours of credit toward a baccalaureate or first professional degree within four years of their first enrollment in a college or university. Failure to complete such minimum hours within four years from first enrollment shall result in all funds received from HOPE scholarships being converted into loans which shall be repaid in accordance with the provisions of this Code section.

(b) Students receiving HOPE scholarships who attend two-year colleges shall complete the requirements to receive an associate degree within four years after their first enrollment in college. Failure to complete such requirements within four years from first enrollment shall result in all funds received from HOPE scholarships being converted into loans which shall be repaid in accordance with the provisions of this Code section.

(c) Students receiving HOPE grants for a diploma or certificate program at a branch of the Technical College System of Georgia or a unit of the University System of Georgia shall complete the requirements for such diploma or certificate within four years after their first enrollment in such branch or unit. Failure to complete such program within four years from first enrollment shall result in all funds received from HOPE grants being converted into loans which shall be repaid in accordance with the provisions of this Code section.

(d) The Georgia Student Finance Commission shall require each student receiving a HOPE scholarship or grant to sign an agreement prior to receiving any HOPE scholarship or grant funds by which the student agrees that, if the student fails to meet the requirements of this Code section, all HOPE scholarship and grant funds received by the student shall become a loan which the student shall be required to repay in accordance with this Code section.

(e) HOPE scholarship and grant funds that are converted into loans in accordance with the provisions of this Code section shall be administered by the Georgia Student Finance Commission. The repayment period shall be ten years, provided that the commission may provide by rule or regulation for deferral of loan payments and forbearance of payments similar to deferral and forbearance under federal student loans. Once the scholarship and grants funds are converted into loans, such loans shall have interest rates of 1 percent annually, provided that, if such loan goes into default, the interest rate shall convert to a reasonable interest rate as defined in Code Section 20-3-395. Repayment of such loans shall begin on the earliest of the occurrence of one of the following events:

(1) The student completes his or her course of study;

(2) The student graduates from an eligible postsecondary institution as such term is defined in Code Section 20-3-519; or

(3) The student has not been enrolled in an eligible postsecondary institution as such term is defined in Code Section 20-3-519 for three consecutive academic quarters or two consecutive academic semesters.

The Georgia Student Finance Commission shall by rule or regulation establish a repayment schedule or schedules for such loans and is authorized to promulgate other rules and regulations as necessary to implement this Code section.

(f) This Code section shall apply to all HOPE scholarships and HOPE grants awarded after January 1, 2012."

SECTION 5.

Chapter 27 of Title 50 of the Official Code of Georgia Annotated, relating to the lottery for education, is amended by revising subsections (a) and (c) of Code Section 50-27-5, relating to membership of the board of directors of the Georgia Lottery Corporation, as follows:

"(a) The As of January 1, 2012, the corporation shall be governed by a reconstituted board of directors composed of seven nine members to be appointed as follows: three members shall be appointed by the Governor, three members shall be appointed by the Speaker of the House of Representatives, and three members shall be appointed by the Senate Committee on Assignments. Members shall be appointed with a view toward equitable geographic representation."

"(c) Members shall serve terms of five years, except that of the initial members appointed, three five shall be appointed for initial terms of two years, two shall be appointed for initial terms of four years, and two shall be appointed for initial terms of five years. Any vacancy occurring on the board shall be filled by the Governor by appointment official who originally appointed the board member vacating his or her seat for the unexpired term."

SECTION 6.

Said chapter is further amended by revising paragraphs (4) and (5) of Code Section 50-27-7, relating to the general duties of the board of directors, and adding a new paragraph to read as follows:

"(4) Adopt regulations, policies, and procedures relating to the conduct of lottery games and as specified in Code Section 50-27-9; and

(5) Approve, disapprove, amend, or modify any bonuses or incentive packages recommended by the chief executive officer; and

(5)(6) Perform such other functions as specified by this chapter."

SECTION 7.

Said chapter is further amended by revising paragraph (5) of subsection (a) of Code Section 50-27-11, relating to the duties of the chief executive officer, as follows:

"(5) Prepare a budget, which shall include a detailed accounting of all bonuses and incentive packages proposed by the corporation, for the approval of the board and the legislative oversight committee;"

SECTION 8.

Said chapter is further amended by revising subsection (a) of Code Section 50-27-12, relating to employees and compensation of lottery corporation personnel, as follows:

"(a) The corporation shall establish and maintain a personnel program for its employees and fix the compensation and terms of compensation of its employees, including, but not limited to, production incentive payments."

SECTION 9.

Said chapter is further amended by revising Code Section 50-27-34, relating to the legislative oversight committee, as follows:

"50-27-34.

(a) There is created as a joint committee of the General Assembly, the Georgia Lottery Corporation Legislative Oversight Committee, to be composed of the members of the House Committee on Regulated Industries and the Senate Economic Development Committee following members: the chairperson of the Senate Finance Committee, the chairperson of the Senate Appropriations Committee, the chairperson of the Senate Economic Development Committee, the chairperson of the Senate Higher Education Committee, the chairperson of the Senate Education and Youth Committee, the chairperson of the Senate Government Oversight Committee, the chairperson of the House Committee on Ways and Means, the chairperson of the House Committee on Appropriations, the chairperson of the House Committee on Economic Development and Tourism, the chairperson of the House Committee on Higher Education, the chairperson of the House Committee on Education, the chairperson of the House Committee on Governmental Affairs, the chairperson of the House Committee on Regulated Industries; two members of the Senate appointed by the Senate Committee on Assignments, and two members of the House of Representatives appointed by the Speaker of the House of Representatives. The chairpersons of such committees the House Committee on Regulated Industries and the Senate Economic Development Committee shall serve as cochairpersons of the oversight committee. The oversight committee shall periodically inquire into and review the operations of the Georgia Lottery Corporation, as well as periodically review and evaluate the success with which the authority is accomplishing its statutory duties and functions as provided in this chapter. The oversight committee may conduct any independent audit or investigation of the authority it deems necessary.

(b) The Georgia Lottery Corporation shall provide the oversight committee not later than December 1 of each year with a complete report of the level of participation of minority businesses in all retail and major procurement contracts awarded by the corporation.

(c) Prior to the beginning of the corporation's fiscal year, the Georgia Lottery Corporation shall submit for approval to the oversight committee a list of the corporation's proposed bonus or incentive packages for that year."

SECTION 10.

This Act shall become effective on January 1, 2012.

SECTION 11.

All laws and parts of laws in conflict with this Act are repealed.