(Effective December 31, 2023.) Authority to Incorporate Nonprofit Corporation as Public Foundation; Requirements; Public Education Innovation Fund Foundation; Reporting

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  7. (Effective December 31, 2023.) Authority to Incorporate Nonprofit Corporation as Public Foundation; Requirements; Public Education Innovation Fund Foundation; Reporting

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  1. The office shall have the power and authority to incorporate a nonprofit corporation that could qualify as a public foundation under Section 501(c)(3) of the Internal Revenue Code to aid the office in carrying out any of its powers and in accomplishing any of its purposes. Any nonprofit corporation created pursuant to this power shall be created pursuant to Chapter 3 of Title 14, the "Georgia Nonprofit Corporation Code," and the Secretary of State shall be authorized to accept such filing.
  2. Any nonprofit corporation created pursuant to this Code section shall be subject to the following provisions:
    1. In accordance with the Constitution of Georgia, no governmental functions or regulatory powers shall be conducted by any such nonprofit corporation;
    2. Upon dissolution of any such nonprofit corporation incorporated by the office, any assets shall revert to the office or to any successor to the office or, failing such succession, to the State of Georgia;
    3. As used in this paragraph, the term "direct employee costs" means salary, benefits, and travel expenses. To avoid the appearance of undue influence on regulatory functions by donors, no donations to any such nonprofit corporation from private sources shall be used for direct employee costs of the office;
    4. Any such nonprofit corporation shall be subject to all laws relating to open meetings and the inspection of public records;
    5. The office shall not be liable for the action or omission to act of any such nonprofit corporation;
    6. No debts, bonds, notes, or other obligations incurred by any such nonprofit corporation shall constitute an indebtedness or obligation of the State of Georgia nor shall any act of any such nonprofit corporation constitute or result in the creation of an indebtedness of the state. No holder or holders of any such bonds, notes, or other obligations shall ever have the right to compel any exercise of the taxing power of the state nor to enforce the payment thereof against the state; and
    7. Any nonprofit corporation created pursuant to this Code section shall not acquire or hold a fee simple interest in real property by any method, including but not limited to gift, purchase, condemnation, devise, court order, and exchange.
  3. Any nonprofit corporation created pursuant to this Code section shall make public and provide an annual report showing the identity of all donors and the amount each person or entity donated as well as all expenditures or other disposal of money or property donated. Such report shall be provided to the Governor, the Lieutenant Governor, the Speaker of the House of Representatives, and the chairpersons of the House Committee on Education and the Senate Education and Youth Committee. Any such nonprofit corporation shall also provide such persons with a copy of all corporate filings with the federal Internal Revenue Service.

(b.1)Pursuant to this Code section, the office may establish a nonprofit corporation to be designated as the Public Education Innovation Fund Foundation to promote Public-Private Partnerships between businesses, nonprofit organizations, institutions of higher education, local school systems, and public schools, for the purpose of improving student achievement. Funds received by the foundation may be awarded through a competitive grant process administered by the office. The General Assembly may appropriate funds for purposes of this foundation beginning in Fiscal Year 2015.

(Code 1981, §20-14-26.1, enacted by Ga. L. 2013, p. 1061, § 32/HB 283; Ga. L. 2014, p. 866, § 20/SB 340; Ga. L. 2017, p. 100, § 1/HB 237; Ga. L. 2018, p. 644, § 5/HB 217.)

The 2014 amendment, effective April 29, 2014, part of an Act to revise, modernize, and correct the Code, substituted "office" for "department" in the first sentence of subsection (a).

The 2017 amendment, effective April 27, 2017, and repealed effective December 31, 2023, designated the existing provisions of subsection (b.1) as paragraph (b.1)(1); added paragraph (b.1)(2); and added ", except as otherwise provided in paragraph (2) of subsection (b.1) of this Code section" at the end of first sentence in subsection (c). See Editor's notes for applicability.

Editor's notes.

- Ga. L. 2017, p. 100, § 3/HB 237, as amended by Ga. L. 2018, p. 644, § 5/HB 217, not codified by the General Assembly, provides, in part, that this Act "shall be applicable to all taxable years beginning on or after January 1, 2018."

Ga. L. 2018, p. 644, § 5/HB 217, extended the automatic repeal provision in Ga. L. 2017, p. 100, § 3(b)/HB 237 of the amendment made by Ga. L. 2017, p. 100, § 1/HB 237, from December 31, 2020, to December 31, 2023.

Code Section 20-14-26.1 is set out twice in this Code. The first version is effective until December 31, 2023, and the second version becomes effective on that date.


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