At the plenary session, Parliament, at the III reading, adopted—by 78 votes in favor and 9 against—the legislative initiative introduced by the “Georgian Dream” faction concerning amendments to the Law “On Grants,” together with related draft laws included in the same legislative package.

Under the amendments, the definition of a grant is clarified. In particular, a grant is defined as monetary or in-kind resources transferred by a subject provided for under the relevant article of the law, which are used or may be used for activities carried out or to be carried out with the belief or intent of influencing the Government of Georgia, a state institution, or any segment of society, and which are aimed at shaping, implementing, or changing Georgia’s domestic or foreign policy. A grant also includes resources used or potentially used for activities deriving from the political or public interests of a foreign government or a foreign political party.

The amendments further provide that a grant shall also include monetary or in-kind resources transferred by a legal entity of another state to its representative office, branch, or subdivision registered in Georgia (this provision does not apply to resources transferred for entrepreneurial activities).

The grantor is required to submit the written decision provided for by legislation, along with a draft written agreement, to the Government of Georgia or to an authorized person/body designated by the Government, in order to obtain consent. The Government of Georgia or its designated authorized person/body has the right to request additional documentation for the purpose of making a decision on the issuance of a grant.

The legislative package also introduces new articles to the Criminal Code. Legal entities registered abroad whose primary field of activity involves engagement in matters related to Georgia shall be obliged to receive grants only with the consent of the Government of Georgia or a person/body authorized by it. Failure to comply will entail criminal liability.

Criminal liability shall also apply to 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 engagement in political activities related to Georgia, as well as to the acceptance by a Georgian political party of any foreign donation.

Under the law, the aforementioned criminal acts shall be punishable by a fine, community service for a term of 300 to 500 hours, or imprisonment for up to six years.

The amendments also introduce a new article to the Criminal Code, under which extremism against the constitutional order becomes a criminal offense.

Furthermore, where an offense under the Criminal Code is committed on the grounds of non-recognition of Georgia’s constitutional order or its constitutional bodies, the term of fixed-term imprisonment imposed must exceed by at least one year the minimum term prescribed by the relevant article or paragraph of the Code for the respective offense.