05 LC 28
2140
House
Bill 298
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 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 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.
All
laws and parts of laws in conflict with this Act are repealed.