A package of legislative amendments related to grants and political activity has been initiated in Parliament and referred to committees for consideration.

The amendments, authored and initiated by the “Georgian Dream” parliamentary faction, cover a total of seven laws.

The essence and content of the legislative package were presented to the public by the faction’s chairman, Irakli Kirtskhali, following a majority faction meeting on January 28.

Specifically, the amendments to the Law on Grants clarify the definition of grants and establish that a grant also includes any funds or resources, in cash or in-kind, provided by any person to any other person that are used, or may be used, with the belief or intention of influencing the Georgian government, state institutions, or any part of society, in activities aimed at shaping, implementing, or changing Georgia’s domestic or foreign policy, as well as activities that derive from the political or public interests, approaches, or relations of a foreign government or foreign political party.

The receipt of such a grant by a person will only be allowed with the prior approval of the Government of Georgia.

The law defines the concept of a legal entity of another state whose activities substantially involve engagement in matters related to Georgia. Such a legal entity may receive a grant only after obtaining prior consent from the Georgian government. As Georgian Dream explains, for example, an organization registered abroad that operates substantially in Georgia will need to seek approval from the Georgian government to receive funding. Otherwise, it will be held criminally liable.

Funds or resources provided in exchange for technical assistance—including technologies, specialized knowledge, skills, expertise sharing, services, or other forms of support—will also be considered grants. According to Georgian Dream, if a foreign actor hires experts in Georgia for payment, that funding will be classified as a grant and will require prior approval from the Georgian government.

If a non-resident legal entity’s representation, branch, or division receives a grant, including from the parent entity, that branch will need prior approval from the Georgian government to receive it. The draft law stipulates that receiving a grant without consent will trigger administrative liability, in the form of a fine equal to double the value of the illegally received grant.

Amendments will also be made to the Criminal Code. Under the initiated draft, violating the rules established by the Law on Grants will incur criminal liability. Such a violation will lead to a fine, community service of 300–500 hours, or imprisonment for up to six years.

An aggravating circumstance is added to Article 194 of the Criminal Code. Specifically, laundering money for the purpose of engaging in political activity in Georgia will carry imprisonment of 9–12 years.

The draft law also imposes criminal liability on leaders of political parties who violate the Organic Law on Political Associations of Citizens, specifically by receiving foreign funding. Such a violation will result in a fine, community service of 300–500 hours, or imprisonment of up to six years.

Foreign lobbying will be criminalized. Specifically, providing money, securities, other property, material benefits, or any other advantage, directly or indirectly, to a foreign citizen or legal entity in exchange for activity on political issues related to Georgia will result in a fine, community service of 300–500 hours, or imprisonment of up to six years.

Changes related to restrictions on political party membership are made in the Organic Law on Political Associations of Citizens. The draft law defines the grounds for ineligibility for party membership. Specifically, a person employed under a labor contract by an organization that receives more than 20% of its annual revenue from foreign sources will be prohibited from joining a political party for eight years.

The State Audit Office will monitor the financial activity of political party members.

The term “declared electoral goal” will be replaced with “declared party-political goal”, which will provide more precise legal regulation, expand the scope, and increase effectiveness.

The restrictions established by law for political parties will also apply to entities with a declared party-political goal.

In cases of receiving foreign funding, criminal liability will be established for both the political party leader and the entity with a declared party-political goal.

The law also introduces changes regarding public political activity by business entities. A new administrative offense is established in the Code of Administrative Offenses for a business entity conducting public political activity that is unrelated to its main entrepreneurial activities. If committed, the State Audit Office will fine the business entity 20,000 GEL, and for repeated or subsequent offenses, 40,000 GEL per offense.