HR6: HR6 General Assembly; more than one Seed-Capital Fund; provide by law - CA

Georgia's constitution currently authorizes the General Assembly to set up a single Seed-Capital Fund, managed through the Advanced Technology Development Center at the University System of Georgia, to provide equity and other capital to small, young, entrepreneurial companies in technology, manufacturing, or agriculture. This resolution proposes a constitutional amendment that would let lawmakers create more than one such fund instead of just one. The amendment keeps the existing rules for how the funds work: money can be given out as loans or investments that generate repayment, rent, dividends, royalties, or other returns, and any money earned goes back into the applicable fund for more disbursements. The General Assembly could still put state funding into the fund or funds, and that money would stay exempt from Georgia's rule requiring unused state funds to lapse at year's end. If approved by lawmakers and then by Georgia voters in a ratification vote, the change would become part of the state constitution.

• Amends Article III, Section IX, Paragraph VI of the Georgia Constitution to allow one or more Seed-Capital Funds instead of just one.
• Keeps the Advanced Technology Development Center of the University System of Georgia in charge of directing how fund money is disbursed.
• Preserves the option to disburse money as loans or investments that generate repayment, rents, dividends, or royalties, with returns recycled back into the applicable fund.
• Continues to exempt money placed in the fund or funds from the state's normal rule that unspent appropriated funds lapse at the end of the fiscal year.
• Sends the proposed amendment to Georgia voters for ratification or rejection, with specific ballot language spelled out in the resolution.

The change primarily affects the General Assembly's own authority to structure state seed-capital financing, the Advanced Technology Development Center at the University System of Georgia, and small, young entrepreneurial firms in technology, manufacturing, or agriculture that seek equity or loan capital from these funds. Georgia voters would also decide the outcome in a ratification vote.

If ratified, the state could split its startup financing tool into multiple dedicated funds rather than one combined pool, potentially allowing separate funds for different industries or purposes. Entrepreneurial firms in technology, manufacturing, or agriculture could see how they access state-backed capital change depending on how lawmakers later structure multiple funds.

• Section 1 revises Article III, Section IX, Paragraph VI(g) of the Constitution to change 'a Seed-Capital Fund' to 'one or more Seed-Capital Funds.'
• Section 1 retains the requirement that the Advanced Technology Development Center directs disbursement of funds to small, young, entrepreneurial firms in technology, manufacturing, or agriculture.
• Section 1 keeps the exemption from the constitutional lapsing-of-funds provision in Article III, Section IX, Paragraph IV(c) for money paid into the fund or funds.
• Section 2 sets the ballot question wording that Georgia voters will see and directs how the amendment will be submitted for ratification under Article X, Section I, Paragraph II.

1. 2025-01-15House Second Readers (House)
2. 2025-01-14House First Readers (House)
3. 2025-01-13House Hopper (House)

• Dar'shun Kendrick (D, HD-095)Primary sponsor
• Sandra Scott (D, HD-076)

• constitutional amendment
• seed capital funding
• small business financing
• economic development
• technology and manufacturing investment