| SB 517 - Elementary & Second.Educ. Assist. Corp. - private contrib.for tuition |
First Reader Summary
A bill to be entitled an Act to encourage the donation and
expenditure of private funds for the benefit of elementary and
secondary students enrolled in public and private schools in this
state through certain tax credits; to amend Chapter 2 of Title 20
of the Official Code of Georgia Annotated, relating to elementary
and secondary education, so as to establish the Georgia
Elementary and Secondary Education Assistance Corporation; to
amend Article 2 of Chapter 7 of Title 48 of the O.C.G.A.,
relating to the imposition, rate, and computation of state income
taxes, so as to provide for a tax credit for contributions to the
Georgia Elementary and Secondary Education Assistance
Corporation; to provide for related matters; to provide for an
effective date and applicability; to repeal conflicting laws; and
for other purposes.
| Senate |
Action |
House |
| 3/1/00 |
Read 1st time |
|
SB 517 LC 27 1014
A BILL TO BE ENTITLED
AN ACT
1- 1 To encourage the donation and expenditure of private funds
1- 2 for the benefit of elementary and secondary students
1- 3 enrolled in public and private schools in this state through
1- 4 certain tax credits; to amend Chapter 2 of Title 20 of the
1- 5 Official Code of Georgia Annotated, relating to elementary
1- 6 and secondary education, so as to establish the Georgia
1- 7 Elementary and Secondary Education Assistance Corporation;
1- 8 to provide for the membership of the board of directors of
1- 9 such corporation; to provide for the powers and duties of
1-10 such corporation, including the power to collect private
1-11 contributions and disburse such contributions in the form of
1-12 vouchers which eligible students may use to pay tuition at
1-13 privately operated elementary and secondary schools in this
1-14 state; to require the corporation to maintain certain
1-15 accounting records; to provide for an annual audit of the
1-16 corporation; to amend Article 2 of Chapter 7 of Title 48 of
1-17 the Official Code of Georgia Annotated, relating to the
1-18 imposition, rate, and computation of state income taxes, so
1-19 as to provide for a tax credit for contributions to the
1-20 Georgia Elementary and Secondary Education Assistance
1-21 Corporation; to provide for a tax credit for expenditures
1-22 related to public school extracurricular activities,
1-23 course-related enhancement or enrichment activities, and
1-24 certain summer school course work; to provide for certain
1-25 limitations on the tax credits; to provide for related
1-26 matters; to provide for an effective date and applicability;
1-27 to repeal conflicting laws; and for other purposes.
1-28 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-29 SECTION 1.
1-30 Chapter 2 of Title 20 of the Official Code of Georgia
1-31 Annotated, relating to elementary and secondary education,
1-32 is amended by adding at the end thereof a new article, to be
1-33 designated as Article 32, to read as follows:
-1-
2- 1 20-2-2080.
2- 2 The General Assembly finds that the children of low-income
2- 3 families of this state can benefit academically from
2- 4 attending privately operated elementary and secondary
2- 5 schools and that many citizens and taxpayers of this state
2- 6 are willing to make contributions to make such attendance
2- 7 possible. The General Assembly further finds that it is
2- 8 in the public interest to establish a nonprofit public
2- 9 corporation of this state to collect such private
2-10 contributions and to disburse those private contributions
2-11 in the form of vouchers which parents of such children can
2-12 use at a private elementary or secondary school of their
2-13 choice.
2-14 20-2-2081.
2-15 There is created a public authority, a body corporate and
2-16 politic, to be known as the Georgia Elementary and
2-17 Secondary Education Assistance Corporation, which shall be
2-18 deemed to be an instrumentality and a nonprofit public
2-19 corporation of the state.
2-20 20-2-2082.
2-21 The corporation shall be governed and all of its corporate
2-22 powers, duties, and functions shall be exercised by a
2-23 board of directors. On and after July 1, 2000, the board
2-24 of directors shall consist of one member from each
2-25 congressional district in the state. All members shall be
2-26 appointed by the Governor, subject to confirmation by the
2-27 Senate. The initial terms of members shall be as follows:
2-28 three members shall be appointed for terms ending July 1,
2-29 2001; three members shall be appointed for terms ending
2-30 July 1, 2002; three members shall be appointed for terms
2-31 ending July 1, 2003; and two members shall be appointed
2-32 for terms ending July 1, 2004. Thereafter, all members
2-33 appointed to the board of directors by the Governor shall
2-34 be appointed for terms of five years and until their
2-35 successors are appointed and qualified. In the event of a
2-36 vacancy during the term of any member by reason of death,
2-37 resignation, or otherwise, the appointment of a successor
2-38 by the Governor shall be for the remainder of the
2-39 unexpired term of such member.
-2-
3- 1 20-2-2083.
3- 2 The members of the board of directors shall receive no
3- 3 compensation for their services but shall be entitled to
3- 4 receive actual expenses incurred by them in the
3- 5 performance of their duties. The expenses, including
3- 6 mileage, shall be paid on the same basis as for state
3- 7 officials and employees.
3- 8 20-2-2084.
3- 9 The corporation shall establish and administer a program
3-10 of vouchers for eligible students in accordance with this
3-11 article, and, pursuant thereto, the corporation is
3-12 authorized to:
3-13 (1) Receive funds from any private source and to hold,
3-14 use, administer, and expend such funds for the purpose
3-15 of providing eligible students with vouchers to attend a
3-16 private elementary or secondary school in this state
3-17 which does not discriminate on the basis of race, color,
3-18 gender, handicap, familial status, or national origin
3-19 and which meets the requirements of subsection (b) of
3-20 Code Section 20-2-690;
3-21 (2) Prescribe criteria for the eligibility of elementary
3-22 and secondary students who are citizens of this state to
3-23 receive vouchers based on income and academic
3-24 achievement;
3-25 (3) Keep and maintain, and require that schools at which
3-26 vouchers are redeemed keep and maintain, such records as
3-27 are determined by the corporation to be necessary for
3-28 the proper and efficient administration of the program;
3-29 (4)Enter into agreements as may be necessary or
3-30 appropriate in the exercise of its powers, duties, and
3-31 functions under this article; and
3-32 (5)Adopt bylaws and policies for the regulation of its
3-33 affairs and the conduct of its business.
3-34 20-2-2085.
3-35 The corporation shall maintain a system of accounts in
3-36 accordance with generally accepted accounting procedures
3-37 and standard accounting procedures and systems established
3-38 by the state, where applicable, which shall, among other
3-39 things, properly identify and account for all funds
3-40 received by the corporation, the source of such funds, and
3-41 all expenditures of the corporation. No funds of the
-3-
4- 1 corporation which are received from private sources shall
4- 2 lapse to the state as of the close of any fiscal year.
4- 3 20-2-2086.
4- 4 The state auditor shall make an annual financial audit of
4- 5 the books, accounts, and records of the corporation. The
4- 6 state auditor shall maintain a copy of the audit report on
4- 7 file in his or her office, make copies of the report
4- 8 available for inspection by the general public, and
4- 9 furnish a copy of the report to the members of the board
4-10 of directors of the corporation and to the Governor.
4-11 20-2-2087.
4-12 The corporation is assigned to the Department of
4-13 Administrative Services for administrative purposes as
4-14 provided in Code Section 50-4-3."
4-15 SECTION 2.
4-16 Article 2 of Chapter 7 of Title 48 of the Official Code of
4-17 Georgia Annotated, relating to the imposition, rate, and
4-18 computation of state income taxes, is amended by adding new
4-19 Code sections, to be designated as Code Sections 48-7-40.17
4-20 and 48-7-10.18, respectively, to read as follows:
4-21 "48-7-40.17.
4-22 (a) As used in this Code section, the term 'qualified
4-23 contribution' means a cash contribution to the Georgia
4-24 Elementary and Secondary Education Assistance Corporation
4-25 established under Article 32 of Chapter 2 of Title 20.
4-26 (b) A taxpayer shall be allowed a credit against the tax
4-27 imposed by this article for a qualified contribution in an
4-28 amount not to exceed 100 percent of the total amount
4-29 contributed.
4-30 (c) In no event shall the amount of the tax credit exceed
4-31 $500.00 or the taxpayer's income tax liability, whichever
4-32 is less.
4-33 (d) Any unused tax credit claimed under this Code section
4-34 may be carried forward five years from the close of the
4-35 taxable year in which the qualified contribution was made.
4-36 (e) The tax credit shall not be allowed if the taxpayer
4-37 designates the taxpayer's qualified contribution for the
4-38 direct benefit of any dependent, dependent of an employee,
4-39 or employee of the taxpayer.
-4-
5- 1 48-7-40.18.
5- 2 (a) As used in this Code section, the term 'qualified
5- 3 public school expenses' means, with respect to a student
5- 4 enrolled in a public elementary or secondary school in
5- 5 this state,:
5- 6 (1) The cost of materials and equipment required as a
5- 7 condition of enrollment or full participation in any
5- 8 instructional program, which costs may be borne by the
5- 9 student pursuant to subsection (a) of Code Section
5-10 20-2-133;
5-11 (2) Fees charged by the school or school system for
5-12 participation in extracurricular activities and
5-13 course-related enhancement or enrichment activities; and
5-14 (3) Tuition for a course taken in summer school that
5-15 dedicates a major portion of class time toward the
5-16 development of one or more student competencies as
5-17 adopted by the State Board of Education under Code
5-18 Section 20-2-140.
5-19 (b) A taxpayer shall be allowed a credit against the tax
5-20 imposed by this article for qualified public school
5-21 expenses in an amount not to exceed 100 percent of the
5-22 total amount paid.
5-23 (c) In no event shall the amount of the tax credit exceed
5-24 $200.00 or the taxpayer's income tax liability, whichever
5-25 is less.
5-26 (d) Any unused tax credit claimed under this Code section
5-27 may be carried forward five years from the close of
5-28 taxable year in which the qualified expense was incurred."
5-29 SECTION 3.
5-30 This Act shall become effective on July 1, 2000, and shall
5-31 apply to all taxable years beginning after December 31,
5-32 2000.
5-33 SECTION 4.
5-34 All laws and parts of laws in conflict with this Act are
5-35 repealed.
-5-
Secretary of the Senate
Frank Eldridge, Jr., Secretary
Last Updated on 05/15/00
