GeorgiaSB 4722025-2026 Regular SessionSenate

Local Boards of Education; audit findings or findings by the state auditor of financial mismanagement or misconduct; provide for the suspension of members

Sponsored By: Max Burns (Republican), Billy Hickman (Republican), Chuck Hufstetler (Republican), Freddie Powell Sims (Democrat), Carden Summers (Republican), Blake Tillery (Republican), Larry Walker (Republican)

Signed by Governor

EducationEducation and YouthGeneral Bill

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 1 costs, 5 mixed.

School officials cannot personally hold public money

Covered education officials and employees cannot keep state aid or other public money in personal bank accounts, even temporarily. The ban covers local school systems, public school governing bodies, state charter schools, and University System institutions. It also covers other schools receiving state aid.

Superintendents face tighter contracts and qualifications

Local school superintendent contracts must last one to three years. In systems designated high-risk, contract extensions cannot exceed 12 months; longer extensions are void. Contracts entered or renewed on or after July 1, 2026, must allow termination for cause after specified State Auditor findings. These include financial mismanagement or misconduct involving the superintendent. They also include knowingly failing or refusing to follow a material plan requirement tied to the highest monitoring level. Superintendents must keep meeting character, criminal-history, experience or certification, and specified immediate-family restrictions throughout their service.

School board members face paid suspension

Beginning July 1, 2026, the highest financial monitoring level or State Auditor financial mismanagement or misconduct findings can trigger suspension proceedings. Findings can involve the board, a member, the school system, or its superintendent. Only eligible board members serving when the designation or finding occurs are covered. After an audit committee recommendation, the State Board of Education holds a hearing and votes by majority on its recommendation. The Governor decides whether to suspend members with pay. Suspended members can seek reinstatement from 30 through 60 days after suspension. Reinstatement requires showing continued service is more likely than not to end the designation or address the finding. Temporary replacements can serve, and members can face permanent removal if reinstatement is not sought or granted. Public funds cannot cover suspension-related legal costs incurred after the State Board’s recommendation; reinstated members can seek reasonable reinstatement-related attorney fees.

Schools face stronger financial monitoring

By July 1, 2026, the state audit department must begin monitoring local school systems’ and state charter schools’ finances. Support ranges from technical help and audits to major interventions with strict compliance requirements. The department must report on financial condition at appropriate intervals. The State Auditor can investigate any local school system or state charter school. Information pointing to local school officials’ or employees’ mismanagement or misconduct requires a full investigation, including past administrations.

Schools face yearly audits and oversight

Georgia’s Department of Audits and Accounts must perform or arrange yearly financial and compliance audits and issue reports. This covers local school systems, state charter schools, University System units, and other schools receiving state aid. Required outside audits need the State Auditor’s written approval and must follow state requirements and accepted accounting and auditing standards. The auditor must report yearly which school systems and state charter schools used approved outside accountants. School governing bodies can pay for extra audits with education funds; reports must reach the department within 10 days. Extra audits generally do not replace required audits, except through the authorized outside-audit process. The department sets readiness standards and schedules audits based on risk, readiness, and available resources. It can delay unready audits, treat repeated failures as governance problems, and must report chronic failures to state education leaders and lawmakers.

Easier school consolidation changes taxing authority

A petition to end an independent school system needs signatures from 10% of qualified voters, down from 25%. A majority of those voting must approve joining the county school system or systems covering the area. Voters must have lived in the territory for six months before the election. Elections for the same purpose must be at least 12 months apart. After consolidation, the statute no longer expressly grants the territory separate school-tax authority; it sets no new household tax rate.

Schools face limits on funding advances

Advance state school funds generally cannot exceed 50% of the local unit’s state allotment from the prior fiscal year. The State Board of Education can approve more only with a written State Auditor recommendation and a financial oversight plan. The recommendation must find the larger advance necessary and appropriate to improve financial operations. The state audit department develops the plan with the education department and any participating local unit. The local governing body must adopt a resolution agreeing to follow it within 30 days. The State Auditor determines the plan, can change it by written notice, and must end it in writing.

Sponsors & Cosponsors

Cosponsors

Will Wade
Republican • House

Roll Call Votes

All Roll Calls

Yes: 165 • No: 83

Senate vote • 3/27/2026

AGREE TO HOUSE SUBSTITUTE

Yes: 29 • No: 17 • Other: 5

House vote • 3/25/2026

PASSAGE

Yes: 96 • No: 58 • Other: 7

Senate vote • 2/26/2026

PASSAGE BY SUBSTITUTE

Yes: 40 • No: 8 • Other: 3

Actions Timeline

Senate Date Signed by Governor
5/12/2026Senate
Act 722
5/12/2026
Effective Date
5/12/2026
Senate Sent to Governor
4/10/2026Senate
Senate Agreed House Amend or Sub
3/27/2026Senate
House Committee Favorably Reported By Substitute
3/25/2026House
House Third Readers
3/25/2026House
House Passed/Adopted By Substitute
3/25/2026House
House Second Readers
3/4/2026House
House First Readers
3/3/2026House
Senate Third Read
2/26/2026Senate
Senate Passed/Adopted By Substitute
2/26/2026Senate
Senate Read Second Time
2/24/2026Senate
Senate Committee Favorably Reported By Substitute
2/20/2026Senate
Senate Read and Referred
2/9/2026Senate
Senate Hopper
2/6/2026Senate

Bill Text

SB 472/AP* (v9)
PDF

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