HR 29: General Assembly; appropriation of funds received from certain legal judgments or settlements; provide - CA

Currently, Georgia's Constitution requires the General Assembly to appropriate state and federal funds each year, and federal money that changes or exceeds what was budgeted is automatically appropriated for the purposes the federal government set. This resolution proposes changing that. Starting January 1, 2027, any money the state wins in legal judgments or gets through legal settlements would have to be appropriated by the General Assembly rather than spent automatically. The resolution also changes how unanticipated or changed federal funding is handled. Instead of being automatically appropriated for federal purposes, federal funds in excess of $10 million would either be continually appropriated through a method set by general law, or held in the state treasury until the General Assembly passes a supplementary appropriations act. Because this is a constitutional amendment, it must go to Georgia voters for ratification before taking effect, with a yes or no ballot question.

• Requires the General Assembly to appropriate all money the state receives from legal judgments and legal settlements entered into on or after January 1, 2027.
• Removes the current automatic appropriation of federal funds for purposes set by federal authorities and replaces it with a new process for funds exceeding $10 million.
• Requires federal funding that is changed, exceeds budgeted amounts, or is unanticipated (over $10 million) to go through a legislatively prescribed method or wait for a supplementary appropriations act.
• Sends the proposed constitutional change to Georgia voters for a yes or no ratification vote.
• Keeps the existing rule that Georgia's fiscal year runs from July 1 to June 30.

State agencies and departments that rely on federal grant funding, the General Assembly's budget-writing process, and Georgia voters, who would decide whether to ratify the amendment. It also affects how money from state legal victories or settlements is spent going forward.

If ratified, the state would no longer be able to automatically spend judgment or settlement proceeds or large unanticipated federal funding changes without lawmakers voting on it. This shifts more control over these funds from executive agencies to the General Assembly's budget process.

• Section 1 amends Article III, Section IX, Paragraph II(b) of the Georgia Constitution to add legislative appropriation authority over legal judgment and settlement proceeds received on or after January 1, 2027.
• Section 1 also removes the prior automatic appropriation of federal funds for federally directed purposes and the rule requiring federal funds to first replace supplanted state funds.
• Section 1 creates a new $10 million threshold: federal funding changes above that amount must be appropriated through a method set by general law or held for a supplementary appropriations act.
• Section 2 sets the ballot question language asking voters whether to approve appropriation of judgment or settlement proceeds and federal funding changes over $10 million.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-02-27House Committee Favorably Reported By Substitute (House)
3. 2025-01-17House Second Readers (House)
4. 2025-01-16House First Readers (House)
5. 2025-01-15House Hopper (House)

• Beth Camp (R, HD-135)Primary sponsor
• Matt Hatchett (R, HD-155)
• James Burchett (R, HD-176)
• Stan Gunter (R, HD-8)
• Marvin Lim (D, HD-98)
• Rick Jasperse (R, HD-11)

• state budget
• constitutional amendment
• legal settlements
• federal funding
• legislative appropriations