The Georgian Dream faction in parliament is beginning to discuss a legislative package aimed at imposing new restrictions on party and political activity.

The planned amendments to the laws on grants, on political unions of citizens, and on five other laws will be discussed in the first hearing by the Legal Issues Committee on February 2.

The amendments are expected to be adopted at the plenary session on February 3-4. It is worth noting that an expedited review of the draft has not been requested.

The first of the seven draft laws in the package includes amendments to the law on grants.

The definition of “grant” is expanded and it is determined that a grant is also considered to be funds transferred by any person to any person in monetary or in-kind form, which are used or may be used with the belief or intention of exerting any influence on the Georgian government, state institutions, or any part of society, for activities carried out or to be carried out, which are aimed at forming, implementing or changing the domestic or foreign policy of Georgia, as well as used or may be used for activities that arise from the political or public interests, approaches or relations of the government of a foreign country or a foreign political party.

A person may receive such a grant only with the prior permission of the Government of Georgia.

The law establishes the concept of a legal entity of another state, the activities of which essentially include activity on issues related to Georgia. It is determined that such a legal entity may receive a grant only after the prior consent of the Government of Georgia. As the Georgian Dream faction explains, an organization registered abroad that essentially carries out its activities in Georgia will have to apply to the Georgian government for funding. Otherwise, it will be held criminally liable.

A grant is also considered to be a monetary or in-kind transfer of funds, in exchange for which the grant recipient provides technical assistance in the form of technology, specialized knowledge, skills, expertise, services and/or other types of assistance. As the Georgian Dream party states, if a foreign power hires experts in Georgia in exchange for money, this money will be considered a grant and the issuance of this grant will require the prior consent of the Georgian government.

If a representative office, branch, or division of a non-resident legal entity receives a grant, including from the legal entity of which it is a branch, this branch requires the prior consent of the Georgian government to receive the grant. The draft law stipulates that the receipt of a grant by this branch without consent will result in administrative liability - in the form of a fine in the amount of double the amount of the illegally received grant.

The amendments are being made to the Criminal Code. According to the initiated draft, criminal liability will be established for violation of the rules established by the Law “On Grants”. The corresponding violation will result in a fine, community service for a term of 300 to 500 hours, or imprisonment for a term of up to 6 years.

An aggravating circumstance is added to Article 194 of the Criminal Code. In particular, money laundering for the purpose of carrying out activities on political issues in Georgia will result in imprisonment for a term of 9 to 12 years.

The draft law also imposes criminal liability on the head of a political party who violates the Organic Law “On Political Unions of Citizens” - in particular, accepts foreign funding. This violation will result in a fine, community service for a term of 300 to 500 hours, or imprisonment for a term of up to 6 years.

External lobbying will be punishable under criminal law. In particular, the direct or indirect transfer of money, securities, other property, property benefits, or any other advantage to a citizen or legal entity of another state in exchange for carrying out activities on political issues related to Georgia will result in a fine, community service for a term of 300 to 500 hours, or imprisonment for a term of up to 6 years.

The amendment related to restrictions on political party membership is being implemented in the Organic Law “On Political Unions of Citizens”. The draft law defines the grounds for inadmissibility of membership in a political party. In particular, a person who is employed under an employment contract in an organization that receives more than 20% of its annual income from a foreign power will be prohibited from membership in a political party for 8 years.

The State Audit Office will monitor the financial activities of a political party member.

In addition, the concept of a subject with a “declared electoral goal” is changed to the term “declared partisan-political goal” and its content is expanded. The restrictions set forth in the Law on Political Unions of Citizens, which are defined for political parties, will also apply to entities with declared party-political goals.

In the case of receiving foreign funding, the criminal liability of the head of a political party and the entity with declared party-political goals will be determined.

Changes are also being made regarding the public political activity of an entrepreneurial entity. The Code of Administrative Offenses establishes a new administrative offense for the implementation of public political activity by an entrepreneurial entity that is not related to its main entrepreneurial activity. In the event of this offense, the State Audit Office will fine the entrepreneurial entity in the amount of 20,000 GEL, and in the case of repeated and subsequent offenses - in the amount of 40,000 GEL.