The Parliament’s Legal Affairs Committee will review a legislative package related to grants, political activity, and political engagement at its February 16 session.

The package concerns amendments to seven laws, which, once enacted, will introduce new restrictions and prohibitions regarding grants, political activity, and political engagement.

The changes affect the following laws: the Law on Grants, the Criminal Code, the Administrative Procedure Code, the Code of Administrative Offenses, the Organic Law on Political Associations of Citizens, and the Law on the State Audit Office.

Amendments to the Law on Grants

Under the planned amendments, the definition of a “grant” is expanded. A grant will be defined as any monetary or in-kind transfer from any person to any other person that is used or may be used, with the belief or intention of influencing the Government of Georgia, state institutions, or any segment of society, in activities aimed at shaping, implementing, or changing Georgia’s domestic or foreign policy. It also includes funds used or potentially used for activities deriving from the political or public interests, approaches, or relations of a foreign government or foreign political party.

Receiving such a grant will require prior authorization from the Government of Georgia.

The law also defines the concept of a legal entity of another state whose activities substantially involve issues related to Georgia. Such entities will also be required to obtain prior consent from the Government of Georgia before receiving a grant. According to the “Georgian Dream” faction, for example, an organization registered abroad but substantially operating in Georgia would need to apply to the Georgian government to receive funding. Otherwise, it would face criminal liability.

Funds transferred in exchange for technical assistance — including the sharing of technology, specialized knowledge, skills, expertise, services, or other forms of support — will also be considered a grant. As the “Georgian Dream” faction explains, if a foreign power hires experts in Georgia in exchange for money, those funds would be considered a grant and would require prior government consent.

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 — it must obtain prior government consent. Receiving a grant without such consent would result in administrative liability in the form of a fine amounting to double the illegally received grant.

Amendments to the Criminal Code

The draft law introduces criminal liability for violations of the Law on Grants. Violations may result in a fine, 300 to 500 hours of community service, or imprisonment of up to six years.

An aggravating circumstance is added to Article 194 of the Criminal Code. Money laundering committed for the purpose of conducting political activities related to Georgia will be punishable by imprisonment from 9 to 12 years.

Criminal liability will also be imposed on senior officials of political parties who violate the Organic Law on Political Associations of Citizens, specifically by accepting foreign funding. This violation will be punishable by a fine, 300 to 500 hours of community service, or imprisonment of up to six years.

External lobbying will also become criminally punishable. The direct or indirect transfer of money, securities, other property, financial benefits, or other advantages to a citizen or legal entity of another state in exchange for conducting political activities related to Georgia will result in a fine, 300 to 500 hours of community service, or imprisonment of up to six years.

Amendments Concerning Political Party Membership

Amendments to the Organic Law on Political Associations of Citizens introduce new grounds for restricting party membership. A person employed under a labor contract by an organization that receives more than 20 percent of its annual income from a foreign power will be prohibited from joining a political party for eight years.

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

The term “having a declared electoral objective” will be replaced by “having a declared party-political objective,” and its scope will be expanded. All legal restrictions applicable to political parties will also apply to entities with a declared party-political objective.

In cases of foreign funding, criminal liability will be established for both political party leaders and entities with a declared party-political objective.

Amendments Regarding Entrepreneurial Entities

Changes are also introduced concerning the public political activity of entrepreneurial entities. Amendments to the Code of Administrative Offenses establish a new administrative offense for entrepreneurial entities engaging in public political activity unrelated to their core business operations.

If such an offense is committed, the State Audit Office will impose a fine of 20,000 GEL, and 40,000 GEL for repeated and subsequent violations.

However, as decided during the first reading of the bill, these provisions will be revised. In cases of repeated political activity, entrepreneurial entities will face criminal liability instead of administrative responsibility.