HR 6: General Assembly; more than one Seed-Capital Fund; provide by law - CA

Georgia's constitution currently allows the General Assembly to set up a single Seed-Capital Fund, which provides loans and investments to small, young companies working in technology, manufacturing, or agriculture. The Advanced Technology Development Center at the University System of Georgia directs how that money is disbursed. This resolution proposes a constitutional amendment changing the wording from 'a Seed-Capital Fund' to 'one or more Seed-Capital Funds,' allowing lawmakers to create multiple such funds by ordinary law instead of being limited to one. Money paid back into the fund or funds from loan repayments, dividends, or royalties would go back in for further investment, and any money the state puts into these funds would not be subject to Georgia's normal rule that unspent appropriated funds lapse at year end. Because this is a constitutional amendment, it must be approved by Georgia voters in a statewide referendum before taking effect.

• Amends the Georgia Constitution to change 'a Seed-Capital Fund' to 'one or more Seed-Capital Funds,' letting lawmakers create multiple funds instead of one.
• Keeps the Advanced Technology Development Center of the University System of Georgia in charge of directing how the fund or funds disburse money.
• Preserves the exemption from Georgia's fund-lapsing rule (Article III, Section IX, Paragraph IV(c)) so unspent money in the fund or funds carries over.
• Requires the proposed amendment to be submitted to Georgia voters for ratification or rejection in a statewide vote.

Small, young, entrepreneurial businesses in technology, manufacturing, or agriculture that seek equity or loan capital; the Advanced Technology Development Center, which directs fund disbursements; the University System of Georgia; and Georgia voters, who must approve the change at the ballot box.

If voters approve, the state could split seed-capital investment money across several dedicated funds instead of pooling it in one, potentially allowing different funds for different industries or purposes. Day to day, this mainly affects how state officials structure funding for startup businesses, not individual Georgians directly.

• Section 1 revises Article III, Section IX, Paragraph VI(g) of the Georgia Constitution, changing singular 'Fund' language to allow multiple 'Seed-Capital Funds.'
• Section 1 keeps the rule that returns on loans or investments (repayments, rents, dividends, royalties) go back into the applicable fund for further disbursement.
• Section 1 preserves the exemption from the constitutional lapsing-of-funds rule for money appropriated to the fund or funds.
• Section 2 sets the exact ballot language voters will see and requires the amendment to be published and submitted under Article X, Section I, Paragraph II of the Constitution.

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
• economic development
• startup funding
• state budget rules