Georgia’s Parliament has approved in the second reading a comprehensive legislative package tightening regulations on grants, political activity, and activism, while also introducing a new criminal offense titled “Extremism against the Constitutional Order.” The package was supported by 83 lawmakers, with 9 voting against.
The draft laws, initiated by the ruling Georgian Dream, were reviewed article by article during the plenary session, following revisions made both at the committee level and during parliamentary debates.
Amendments to the Law “On Grants” significantly broaden the legal definition of a grant. Under the revised text, a grant is defined as monetary or in-kind resources transferred by a subject specified in the law, which are used or may be used with the intent or belief of influencing the Georgian government, state institutions, or any segment of society. This includes activities aimed at shaping, implementing, or altering Georgia’s domestic or foreign policy, as well as actions stemming from the political or public interests of a foreign government or foreign political party.
During discussions at the Legal Issues Committee, it was clarified that funds transferred by emigrants will not fall under the restrictions introduced by the amendments.
Based on the general rule established by the bill, the entity issuing the grant will be obliged to seek prior consent from the Government of Georgia before transferring funds. However, during the plenary session, the parliamentary majority proposed an exception for public state institutions. In such cases, instead of the grant-giving entity, the grant recipient will apply to the Government for permission to receive the grant. The initiators accepted this proposal.
The amendments also extend obligations to foreign legal entities. A legal entity registered in another state whose activities substantially involve matters related to Georgia will be classified as a grant recipient. Foreign-registered entities will be required to obtain prior governmental consent before receiving grants. Failure to do so—particularly in cases where a foreign entity has a branch, representation, or division registered in Georgia—will result in liability.
For individuals and entities that have already received grants before the law enters into force, a transitional provision grants a one-month period to apply to the Government for consent. The Government, in turn, will have one month to issue a decision approving or rejecting the application.
As part of the second reading, changes were also introduced to the Criminal Code. One amendment establishes that committing a crime motivated by non-recognition of Georgia’s constitutional order or its constitutional bodies will constitute an aggravating circumstance. In such cases, when imprisonment is imposed, the sentence must exceed the minimum statutory penalty by at least one year.
Additionally, administrative offenses committed with the same motive: non-recognition of the constitutional order or constitutional bodies, will also be treated as aggravating circumstances in administrative proceedings.
A central innovation of the legislative package is the addition of Article 316¹ to the Criminal Code, titled “Extremism against the Constitutional Order.”
Under this new provision, criminal liability will apply in cases of:
Systematic and public calls by a citizen of Georgia or a stateless person residing in Georgia for mass violations of legislation, mass disobedience to state authorities, or the creation of alternative bodies to state authorities;
Systematic public self-presentation, or presentation of another person, as a representative of the Georgian government without authorization;
Other systematic actions aimed at establishing the perception of the illegitimacy of Georgia’s constitutional order or constitutional bodies, where such actions harm Georgia’s interests or create a real threat of harm.
The offense will be punishable by a fine, community service ranging from 400 to 600 hours, or imprisonment for up to three years. In the case of a legal entity, sanctions may include a fine or liquidation in addition to a fine.
Another amendment adopted during the second reading introduces stricter measures for business legal entities engaged in political activity. If a business entity is fined for political activity for the first time and subsequently repeats the violation, criminal liability will apply. Responsibility will extend both to the legal entity and to the respective natural person deemed responsible for the offense.
The legislative package introduces amendments to several laws, including:
the Law “On Grants”
the Criminal Code
the Administrative Procedure Code
the Code of Administrative Offences
the Organic Law “On Political Associations of Citizens”
the Law “On the State Audit Office”
Supporters of the amendments argue that the changes aim to strengthen safeguards against foreign influence and protect the constitutional order. Critics, meanwhile, have expressed concern that the broadened definitions and new criminal provisions could restrict political activism and civil society activities.
The package now proceeds to the third reading, where final approval will be considered before the amendments are signed into law.
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