05 HB 298/AP
House
Bill 298 (AS PASSED HOUSE AND SENATE)
By:
Representatives Hembree of the
67th,
Ehrhart of the
36th,
Martin of the
47th,
and Smith of the
113th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend provisions of the Official Code of Georgia Annotated, relating to
education; to amend Article 7 of Chapter 3 of Title 20 of the Official Code of
Georgia Annotated, relating to scholarships, grants, and loans, so as to allow
the Georgia Higher Education Assistance Corporation and the Georgia Student
Finance Authority to exercise powers possessed by private corporations
performing similar functions; to increase the amount of bonds that the Georgia
Student Finance Authority may issue; to provide the Georgia Student Finance
Authority with collection tools to collect unpaid service cancelable loans that
are in cash repayment status; to provide the Georgia Student Finance Commission
with collection tools to collect unpaid HOPE scholarship and grant funds; to
amend Chapter 15 of Title 20 of the Official Code of Georgia Annotated, relating
to the Georgia Medical Center Authority, so as to change certain provisions
relating to establishment of the authority, appointment of members, terms of
office, vacancies, removal from office, compensation,
authoritýs
existence, accountability of members, and assignment; to provide for related
matters; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
7 of Chapter 3 of Title 20 of the Official Code of Georgia Annotated, relating
to scholarships, grants, and loans, is amended by striking subparagraph (JJ) of
paragraph (1) of Code Section 20-3-266, relating to powers and duties of the
Georgia Higher Education Assistance Corporation, and inserting in lieu thereof a
new subparagraph (JJ) to read as follows:
"(JJ)
To do any and
all things necessary, desirable, convenient, or incidental for the
accomplishment of the objectives of this chapter and
to exercise any power usually possessed by
private corporations performing similar functions
which is not
in conflict with the public purposes of the corporation or the Constitution and
laws of this state, including, but not limited to:
(i)
The power to retain accounting and other financial services;
(ii)
The power to purchase all kinds of insurance, including, without limitation,
insurance against tort liability and against risks of damage to
property;
(iii)
The power to indemnify and hold harmless any parties contracting with the
corporation or its agents from damage to persons or property; and
(iv)
The power to act as a self-insurer with respect to any loss or liability and to
create insurance
reserves;".
SECTION
2.
Said
article is further amended by striking subparagraph (W) of paragraph (1) of Code
Section 20-3-316, relating to the powers and duties of the Georgia Student
Finance Authority, and inserting in lieu thereof a new subparagraph (W) to read
as follows:
"(W)
To do any and
all things necessary, desirable, convenient, or incidental for the
accomplishment of the objectives of this chapter and
to exercise any power usually possessed by
private corporations performing similar functions
which is not
in conflict with the public purposes of the authority or the Constitution and
laws of this state, including, but not limited to:
(i)
The power to retain accounting and other financial services;
(ii)
The power to purchase all kinds of insurance, including, without limitation,
insurance against tort liability and against risks of damage to
property;
(iii)
The power to indemnify and hold harmless any parties contracting with the
authority or its agents from damage to persons or property; and
(iv)
The power to act as a self-insurer with respect to any loss or liability and to
create insurance reserves;
and".
SECTION
3.
Said
article is further amended by striking subsection (a) of Code Section 20-3-344,
relating to issuance of bonds and notes of authority, and inserting in lieu
thereof a new subsection (a) to read as follows:
"(a)
The authority is authorized to provide for the issuance of bonds of the
authority not to exceed
$150
$300
million aggregate principal amount outstanding at any one time excluding bonds
issued to refund outstanding bonds of the authority to carry out and effectuate
its purposes and powers under this subpart. In anticipation of the issuance of
such bonds, the authority also is authorized to provide for the issuance of
notes. Such bonds or notes may be issued at one time or from time to time,
provided the aggregate principal amount of such bonds and notes outstanding at
any one time shall not exceed the amount authorized by this subsection,
excluding bonds or notes issued to refund outstanding bonds or notes of the
authority. The principal of, premium, if any, and the interest on such bonds or
notes shall be payable solely from the funds provided for in this subpart for
such payment. Any such notes may be made payable from the proceeds of bonds or
renewal notes, or in the event bond or renewal note proceeds are not available,
such notes may be paid from revenues or assets available to the authority for
this purpose under this subpart in accordance with resolutions or other
agreements with holders of any outstanding bonds or other obligations of the
authority. The bonds or notes of each issue shall be dated, shall bear interest
at such rates, may be redeemable before maturity at the option of the authority
at such price or prices as may be determined by the authority, and shall be
under such other terms and conditions as may be determined by the authority.
Notes shall mature at such time or times, not exceeding five years from their
date or dates, and bonds shall mature at such time or times, not exceeding 40
years from their date or dates, as may be determined by the authority. The
authority shall determine the form of such bonds or notes, including coupon
form, registered form, registration as to principal only, or all of the
foregoing forms, and shall determine the right of reconversion or interchange
into other forms. The authority shall fix the denomination or denominations and
the place or places of payment of principal and interest, which may be any bank
or trust company within or outside the state. All such bonds shall be executed
in the name of the authority by the chairperson and the secretary of authority
and shall be sealed with the official seal of the authority or a facsimile
thereof. Coupons shall be executed in the name of the authority by the
chairperson of the authority. The facsimile signature of either the chairperson
or the secretary of the authority may be imprinted in lieu of the manual
signature if the authority so directs and the facsimile of the
chairpersońs
signature shall be used on coupons. In case any officer whose signature or a
facsimile of whose signature shall appear on any bonds or notes or coupons
attached thereto shall cease to be such officer before the delivery thereof, his
or her signature or facsimile signature shall nevertheless be valid and
sufficient for all purposes as if he or she had remained in office until such
delivery. The authority may also provide for the authentication of the bonds or
notes by a trustee or fiscal agent. Prior to the preparation of definitive
bonds, the board of directors may issue interim receipts, interim certificates,
or temporary bonds exchangeable for definitive bonds upon the issuance of the
latter. The authority may also provide for the replacement of any bond which
shall become mutilated or be destroyed or lost. Such revenue bonds may be
issued without any other proceedings or the happening of any other conditions or
things than those proceedings, conditions, and things which are specified or
required by this part. Upon the approval of a resolution of the authority
authorizing the sale of its bonds or notes, such bonds or notes may be sold in
such manner, either at public or private sale, and for such price as the
authority shall determine to be in the best interests of the authority and to
effectuate best its purposes under this
subpart."
SECTION
4.
Said
article is further amended by striking subsection (c) of Code Section 20-3-374,
relating to service cancelable loan fund, and inserting in lieu thereof a new
subsection (c) to read as follows:
"(c)
All students receiving loans under this Code section shall execute, prior to the
disbursement of any loan proceeds to or for the benefit of that student, a
promissory note containing the terms and conditions of the service repayment and
cash repayments.
Except as
prohibited by federal or other state laws, individuals that fail to fulfill the
terms and conditions of cash repayment may, without judicial action, be subject
to garnishment of their pay, loss of a professional license, offset of lottery
winnings, and offset of a state tax refund in accordance with rules and
regulations promulgated by the authority not inconsistent with the provisions of
this
part."
SECTION
5.
Said
article is further amended by striking subsection (b) of Code Section
20-3-519.11, relating to Georgia Student Finance Commission, and inserting in
lieu thereof a new subsection (b) to read as follows:
"(b)
Notwithstanding any provision of this part, the Georgia Student Finance
Commission is authorized to promulgate rules and regulations restricting
eligibility for the scholarships and grants described in this part or reducing
the dollar amount of scholarships and grants described in this part in
accordance with the provisions of Code Section 50-27-13.
In addition to
other remedies available at law and equity, the Georgia Student Finance
Commission is authorized to enter into repayment agreements with students that
owe refunds to the Georgia Student Finance Commission of any scholarship or
grant described in this part. Except as prohibited by federal or other state
laws, individuals that owe refunds and fail to enter into repayment agreements
with the Georgia Student Finance Commission are, without judicial action,
subject to garnishment of their pay, loss of a professional license, offset of
lottery winnings, and offset of a state tax refund in accordance with rules and
regulations promulgated by the Georgia Student Finance Commission not
inconsistent with the provisions of this part. As used in this subsection, the
term 'refund' shall mean scholarship and grant amounts paid to or on behalf of
students subsequently, in accordance with rules and regulations promulgated by
the Georgia Student Finance Commission, determined to be ineligible to receive
such
funds."
SECTION
6.
Chapter
15 of Title 20 of the Official Code of Georgia Annotated, relating to the
Georgia Medical Center Authority, is amended by striking Code Section 20-15-3,
relating to establishment of the authority, appointment of members, terms of
office, vacancies, removal from office, compensation,
authoritýs
existence, accountability of members, and assignment and inserting in lieu
thereof the following:
"20-15-3.
(a)
There is created a body corporate and politic to be known as the Georgia Medical
Center Authority which shall be deemed to be an instrumentality of the State of
Georgia and a public corporation; and by that name, style, and title such body
may contract and be contracted with, sue and be sued, implead and be impleaded,
and complain and defend in all courts of this state.
(b)
The
authority shall consist of 15 members. Eleven members shall be appointed by the
Governor for staggered initial terms of office as follows: four members for two
years, and seven members for three years. Two members shall be appointed by the
Speaker of the House of Representatives to serve initial terms of office of two
years and two members shall be appointed by the President of the Senate to serve
initial terms of office of two years.
The authority
shall consist of seven members as follows:
(1)
Those persons appointed to the authority prior to July 1, 2005, and serving for
terms to expire in June, 2006, shall continue to serve for the remainder of the
terms to which they were appointed;
(2)(A)
In 2005 and quadrennially thereafter, the Governor shall appoint two
members.
(B)
In 2006 and quadrennially thereafter, the Governor shall appoint three
members;
(3)
In 2005 and quadrennially thereafter, the Senate Committee on Assignments shall
appoint one member; and
(4)
In 2006 and quadrennially thereafter, the Speaker of the House of
Representatives shall appoint one member.
After
their initial terms of office, members
Except as
otherwise provided by paragraph (1) of this subsection,
members shall serve for terms of office of
four years
each.
Members shall serve for the terms of office
specified and until the appointment and
qualification of their respective successors.
No person
may be appointed as a member of the authority unless that person has been a
resident of this state for at least two years and is at least 21 years of
age. Any elected or appointed state,
county, municipal, or school board official or employee, except members of the
board of regents and officials and employees of the legislative or judicial
branches of state government, are authorized to be appointed as members of the
authority, and any person so appointed is authorized to serve as a member of the
authority.
(c)
All successors shall be appointed in the same manner as original appointments.
Members may be
eligible for reappointment. Vacancies in
office shall be filled in the same manner as original appointments. An
appointment to fill a vacancy shall be for the unexpired term. The authority
shall elect its own officers. A majority of the membership of the authority
constitutes
shall
constitute a quorum.
No action
shall be taken by the authority except in the presence of a quorum and upon
approval of a majority of those members
present. No vacancy on the authority
shall impair the right of the quorum to exercise all rights and perform all
duties of the authority. The authority shall otherwise provide for its own
organization and conduct of business according to
Robert́s
Rules of Order.
(d)
The Governor, after notice and opportunity for hearing, may remove from office
any member of the authority for any of the following reasons:
(1)
Inability or neglect to perform the duties required of members;
(2)
Failure to attend, without prior approval of the chairperson of the authority,
four consecutive regularly scheduled meetings of the authority;
(3)
Incompetence; or
(4)
Dishonest conduct.
(e)
The members of the authority shall receive a daily expense allowance and
reimbursement for transportation costs as provided for in Code Section 45-7-21;
and the members of the authority shall not receive any other compensation for
their services as such.
(f)
The authority shall have perpetual existence. Any change in name or composition
of the authority shall in no way affect the vested rights of any person under
this chapter or impair the obligations of any contracts existing under this
chapter.
(g)
The members of the authority shall be accountable in all respects as trustees.
The authority shall keep suitable and proper books and records of all receipts,
income, and expenditures of every kind and shall submit for inspection all the
books, together with the proper statement of the
authoritýs
financial position, to the state auditor.
(h)
The authority is assigned to the Department of
Community
Affairs
Economic
Development for administrative purposes
only."
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.