HB 147: Georgia Technology Authority; annual inventory of artificial intelligence usage by state agencies; provide

This bill makes two separate changes to Georgia law. First, it adds a new rule to the state purchasing code (O.C.G.A. § 50-5-86) saying that when a governmental entity, which includes state agencies, counties, cities, school systems, and other political subdivisions, buys a license for software meant to run on ordinary desktop or server computers, the contract cannot limit which hardware the entity chooses to install or run that software on. Second, it fills in a previously reserved section of the Georgia Technology Authority's chapter of law (O.C.G.A. § 50-25-7.9) to address artificial intelligence. By December 31, 2026, and every year after, the authority must inventory all AI systems that state agencies use to inform decisions, noting the system's name, vendor, capabilities, and whether it went through an impact assessment. By December 31, 2027, the authority must also create policies covering how agencies develop, buy, and use AI systems. The authority must send an annual report on the inventory to the Governor, Lieutenant Governor, and legislature. The law would take effect as soon as the Governor signs it, and the software contract rule would apply to contracts entered into or renewed after that date.

• Prohibits governmental entities from signing software licensing contracts that restrict which desktop or server hardware they can install or run the software on.
• Defines 'governmental entity' broadly to include state agencies, counties, cities, school systems, and other political subdivisions for purposes of this restriction.
• Requires the Georgia Technology Authority to conduct an annual inventory, starting by December 31, 2026, of AI systems used by state agencies to inform decisions.
• Requires the inventory to record each AI system's name, vendor, general capabilities, and whether it underwent an impact assessment before being put into use.
• Requires the authority to develop AI policies and procedures for state agencies by December 31, 2027, and to send agencies' cooperation obligations into law.
• Requires an annual public report on the AI inventory to be sent electronically to the Governor, Lieutenant Governor, and the General Assembly.

State agencies, counties, municipalities, school systems, and other political subdivisions that buy software licenses or use AI systems; the Department of Administrative Services and the Georgia Technology Authority, which administer these rules; and software vendors that contract with Georgia governmental entities.

Governments would gain more flexibility to run purchased software on the hardware of their choosing rather than being locked into a vendor's preferred equipment. The AI inventory and reporting requirement would create the first public, statewide record of which AI tools Georgia agencies use to make decisions and whether those tools were assessed for risk.

• Section 1 adds new Code Section 50-5-86 barring software licensing contracts from restricting the hardware a governmental entity can use, and defines 'governmental entity' broadly.
• Section 2 fills in Code Section 50-25-7.9 (previously reserved) with a definition of 'artificial intelligence' as a machine-based system that makes predictions, recommendations, or decisions from human-defined objectives.
• Section 2 requires the Georgia Technology Authority to complete its first AI inventory by December 31, 2026 and annually thereafter, covering system name, vendor, capabilities, and impact assessment status.
• Section 2 requires the authority to establish AI development and procurement policies for agencies by December 31, 2027.
• Section 2 requires an annual electronic report on the AI inventory to the Governor, Lieutenant Governor, and General Assembly, and requires agencies to cooperate with the authority.
• Section 3 makes the Act effective upon the Governor's signature and applies the software contract rule to contracts and renewals entered into on or after that date.
• Section 4 repeals conflicting laws.

1. 2026-03-18Senate Committee Favorably Reported By Substitute (Senate)
2. 2026-01-12Senate Recommitted (Senate)
3. 2025-03-27Senate Read Second Time (Senate)
4. 2025-03-25Senate Committee Favorably Reported By Substitute (Senate)
5. 2025-03-10Senate Withdrawn & Recommitted (Senate)
6. 2025-02-21Senate Read and Referred (Senate)
7. 2025-02-20House Passed/Adopted (House)
8. 2025-02-20House Third Readers (House)

• Brad Thomas (R, HD-021)Primary sponsor
• Todd Jones (R, HD-025)
• Clint Crowe (R, HD-118)
• Joseph Gullett (R, HD-019)
• Rob Clifton (R, HD-131)
• Don Parsons (R, HD-044)
• Ed Setzler (R, SD-037)

1. PassedHouse voteFebruary 20, 2025

   172 yea, 0 nay (3 not voting, 5 absent)

   Passage: House Vote #50

• artificial intelligence
• state government technology
• software contracts
• government transparency
• IT procurement