The Georgian Parliament has passed, on third reading, amendments to the Law on Grants, together with a package of accompanying bills. The amendments were put to a vote at today’s plenary session.

The bill was supported by 78 members of parliament, with nine voting against.

Under the adopted legislation, a grant is defined as funds transferred in monetary or in-kind form by an entity specified under the relevant article of the law, which are used or may be used for activities aimed at shaping, pursuing or changing Georgia’s domestic or foreign policy, carried out or intended to be carried out with the belief or intention of influencing the Georgian authorities, state institutions, or any segment of society, as well as for activities that serve the political or public interests of a foreign government or foreign political party.

A legal entity of another state whose activities substantially encompass engagement on matters relating to Georgia is also deemed a grant recipient under the law.

Legal entities registered abroad will be required to obtain prior approval from the Georgian government before receiving a grant.

Under the bill as passed on third reading, any legal entity from another state that has a registered branch, representative office, or division in Georgia and receives a grant without the necessary approval will be subject to liability.

As the rapporteur explained, Georgia is home to foundations, various organisations, and representative offices and branches of their respective foreign parent companies, all of which will, upon receipt of funds, be required to seek the relevant approval from the Georgian government. In this particular case, the prescribed liability is an administrative penalty amounting to twice the value of the grant received. In the case of other persons, meaning natural and legal persons operating in Georgia who receive grants, criminal liability will apply.

Those who have received grants before the law’s entry into force will have one month from that date to apply to the Georgian government. The government, in turn, will have one month to respond, either granting or refusing approval.

Under the adopted amendments, during that one month, such persons will be permitted to spend funds on, for example, utility bills and the fulfilment of other obligations. Should the government decline to approve, those persons will be required to cease using the grant funds received. Failure to do so will result in criminal liability.

An amendment was also made to the bill on amendments to the Criminal Code of Georgia. A provision has been added stipulating that committing a crime motivated by the non-recognition of Georgia’s constitutional order or its constitutional institutions shall be considered an aggravating circumstance during sentencing. Where a custodial sentence is imposed in such cases, the term to be served must exceed by at least one year the minimum sentence prescribed by the relevant provision of the Code for the offence committed.

The Criminal Code was further amended to introduce a new article, “Extremism Against the Constitutional Order,” covering the systematic public incitement, by a Georgian citizen or a stateless person holding status in Georgia, to mass violation of Georgian legislation, mass disobedience towards Georgian state organs, or the creation of alternative bodies to Georgian state organs; the arbitrary, public and systematic self-representation or representation of another person as a representative of the Georgian authorities; or other systematic acts committed by such a person, where any of the aforementioned acts are directed at establishing the perception that Georgia’s constitutional order or constitutional institutions are illegitimate, and cause harm to Georgia’s interests or create a real threat of such harm.

The penalties prescribed for this offence are a fine, community service of between 400 and 600 hours, or imprisonment of up to three years. In the case of a legal entity found liable under this article, the prescribed penalties are a fine or liquidation, together with a fine.