Parliament begins consideration of amendments to Law on Grants

The legislative body is beginning consideration of amendments to the Law on Grants and its accompanying legislative bills.

According to the legislative package initiated by Georgian Dream, amendments are planned to the Law on Grants, the Criminal Code, the Code of Administrative Procedure, the Code of Administrative Offences, the Organic Law on Political Associations of Citizens, and the Law on the State Audit Office.

According to the amendments to the Law on Grants, the definition of grants is being clarified; it is determined that a grant shall also include funds transferred in monetary or in-kind form by a citizen of another state or a legal entity of another state to a citizen of Georgia or a person with the right of residence in Georgia, as well as to a legal entity whose activities substantially involve activity on issues related to Georgia, which is used or may be used for activities carried out or to be carried out with the belief or intention of exerting any influence on Georgia’s government, state institutions, or any part of society, aimed at forming, implementing, or changing Georgia’s domestic or foreign policy, and also is used or may be used for activities that derive from the political or public interests, approaches, or relations of a foreign government or foreign political party. Receipt of such a grant shall only be permitted with the prior authorisation of the Government of Georgia.

• The law establishes the concept of a legal entity of another state whose activities substantially involve activity on issues related to Georgia. It is determined that such a legal entity may receive a grant only following the Government of Georgia’s approval.
• It is determined that a grant shall also include funds transferred in monetary or in-kind form, in exchange for which the grant recipient provides technical assistance in the form of sharing technologies, specialised knowledge, skills, expertise, services, and/or other forms of assistance.
• If a representation, 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 prior consent of the Government of Georgia to receive the grant. The legislative bill stipulates that receiving a grant by this branch without proper approval will incur administrative liability, including a fine equal to twice the amount of the unlawfully received grant.

According to the amendment to be implemented in the Criminal Code:
• Criminal liability is established for violation of the procedures established by the Law on Grants. The relevant violation will result in a fine, community service for a period of 300 to 500 hours, or imprisonment for up to 6 years.
• Article 194 of the Criminal Code is supplemented with an aggravating circumstance, specifically, money laundering for the purpose of carrying out activities related to Georgia’s political issues, which will result in imprisonment for a period of 9 to 12 years.
• The legislative bill will also impose criminal liability on officials in leadership positions of political parties who violate the Organic Law on Political Associations of Citizens, specifically, who receive foreign funding. This violation will result in a fine, community service for a period of 300 to 500 hours, or imprisonment for up to 6 years.
• Foreign lobbying becomes punishable under criminal law. Specifically, direct or indirect transfer of money, securities, other property, material benefit, 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 period of 300 to 500 hours, or imprisonment for up to 6 years.

An amendment related to restrictions on political party membership is being implemented in the Organic Law on Political Associations of Citizens, specifically:
• A person who is employed under an employment contract in an organisation whose income received during the year is more than 20% from a foreign power is prohibited from political party membership for 8 years.
• “Having a declared electoral purpose” is replaced by the term “having a declared party-political purpose”, which ensures substantive clarification, expansion, and increased effectiveness of legal regulation.
• The State Audit Office will monitor the financial activities of entities with a declared party-political purpose.
• Those restrictions provided for by legislation that are defined for political parties shall also extend to entities with a declared party-political purpose.

The legislative package also provides for the following amendment related to public political activity by business entities: a new administrative offence is established in the Code of Administrative Offences for a business entity carrying out public political activity that is not related to its core business activity.

In the event of committing this offence, the State Audit Office will impose a fine of 20,000 lari on the business entity. For repeated or subsequent violations, the fine will increase to 40,000 lari for each offence.

According to the press service of the Parliament of Georgia, the Bureau of Parliament has referred the legislative package initiated by the Georgian Dream faction to the Legal Issues Committee for consideration.