The House Committee on Governmental Affairs offers the following substitute to SB 423:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 5 of Title 21 of the Official Code of Georgia Annotated, relating to
government transparency and campaign finance, so as to revise registration and reporting
requirements for certain political action committees; to revise certain disclosure requirements
for independent committees; to provide for violations and penalties; to prohibit candidates
or campaign committees from accepting contributions or donations from non-Georgia
persons that exceed 50 percent of all contributions received; to provide definitions; to
provide for the return of such excess contributions; to provide for the escheatment of excess
contributions that are not returned; to provide for exceptions; to provide for injunctive relief;
to prohibit and provide penalties for strawman transactions seeking to avoid the contribution
cap provided herein; to provide for related matters; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 5 of Title 21 of the Official Code of Georgia Annotated, relating to government
transparency and campaign finance, is amended in Code Section 21-5-34, relating to
campaign contribution disclosure reports and committee registration, by revising subsections
(e.1) and (f) as follows:
"(e.1) Any political action committee which makes contributions to, accepts contributions
for, or makes expenditures on behalf of candidates shall file a registration in the same
manner as is required of campaign committees prior to accepting or making contributions
or expenditures. Prior to such registration, such political action committee shall open a
bank account in the name of such political action committee and shall maintain such bank
account until the political action committee is terminated. Such political action committee
shall also file campaign contribution disclosure reports on January 31, April 30, July 31,
and October 20 of each year until the bank account required by this subsection has been
zeroed out and the political action committee has been terminated. <ins>Political action
committees making aggregate expenditures on behalf of candidates of $25,000.00 or less
in one calendar year shall be exempt from the foregoing registration and reporting
requirements.
</ins> (f)(1) Any independent committee which accepts contributions or makes expenditures
for the purpose of affecting the outcome of an election or advocates the election or defeat
of any candidate shall register with the commission prior to accepting contributions or
making expenditures and shall file disclosure reports as follows:
(A) On the first day of each of the two calendar months preceding any such election;
(B) Two weeks prior to the date of such election; and
(C) Within the two-week period prior to the date of such election the independent
committee shall report within two business days any contributions or expenditure of
more than $1,000.00.
The independent committee shall file a final report prior to December 31 of the election
year and shall file supplemental reports on June 30 and December 31 of each year that
such independent committee continues to accept contributions or make expenditures.
(2) Reports filed by independent committees shall list the following:
(A) The amount and date of receipt, along with the name, mailing address, occupation,
and employer of any person making a contribution of more than $100.00;
(B) The name, mailing address, occupation, and employer of any person to whom an
expenditure or provision of goods or services of the value of more than $100.00 is made
and the amount, date, and general purpose thereof, including the name of the candidate
or candidates, if any, on behalf of whom, or in support of or in opposition to whom, the
expenditure or provision was made;
(C) Total expenditures made as follows:
(i) Expenditures shall be reported for the applicable reporting year;
(ii) The first report of a reporting year shall list the total expenditures made during
the period covered by the report; and
(iii) Subsequent reports shall list the total expenditures made during the period
covered by the report, the cumulative total of expenditures made during the reporting
year, and net balance on hand; and
(D) The corporate, labor union, or other affiliation of any political action committee,
candidate, campaign committee, or independent committee making a contribution of
the value of more than $100.00.
(3) Whenever any independent committee makes an expenditure for the purpose of
financing any communication intended to affect the outcome of an election, such
communication shall clearly state that it has been financed by such independent
committee.
<ins>(4) Any independent committee which makes expenditures or expends funds for the
purpose of affecting the outcome of an election for any elective office, or to advocate the
election or defeat of a particular candidate, through broadcast media, cable, radio,
electronic communications, or the internet shall disclose all information required by all
applicable federal statutes or regulations to the respective federal authority. It shall be
a violation of this chapter and unlawful to fail to comply with the provisions of this
</ins>
<ins>subsection. Each expenditure made in violation of this subsection shall be considered a
separate and distinct violation and subject to civil penalties as provided for in Code
Section 21-5-6."
</ins> SECTION 2.
Said chapter is further amended in Code Section 21-5-41, relating to maximum allowable
contributions, by revising subsection (h), which is reserved, as follows:
"(h)(1) <ins>As used in this subsection, the term 'Non-Georgia person' means:
(A) As to an individual, any individual except an individual who:
(i) On the date such contribution or donation was made, was a registered Georgia
voter; or
(ii) Paid individual income taxes to the State of Georgia in the calendar year
preceding the date of such contribution or donation;
(B) As to a business entity, any entity except an entity that:
(i) On the date such contribution or donation was made, was registered with the
Secretary of State to do business in this state;
(ii) Paid individual or corporate income taxes to the State of Georgia in the calendar
year preceding the date of such contribution or donation; or
(iii) Filed a corporate income tax return with the Georgia Department of Revenue in
the preceding calendar year or maintains sufficient economic presence, property, or
payroll within this state to establish a nexus under state law; and
(C) As to a campaign committee, any such committee which cannot demonstrate that
the funds from which such committee made such contribution or donation came from
individuals or entities exempted pursuant to subparagraphs (A) and (B) of this
subparagraph.
(2) After June 1, 2026, contributions or donations from all non-Georgia persons shall not
exceed 50 percent of the total contributions and donations received by a candidate or
</ins>
<ins>campaign committee for a reporting period. In the event that the total amount of such
contributions and donations exceeds 50 percent of the total contributions received, such
candidate or campaign committee shall return such excess funds to the non-Georgia
persons making such contributions or donations. In the event that such candidate or
campaign committee cannot or does not return such excess funds within 45 days of the
end of a reporting period, such funds shall escheat to the state.
(3) This subsection shall not apply to any:
(A) Transfer of funds made by the national committee of a political party to a state,
district, or local committee of the same political party pursuant to 52 U.S.C.
Section 30116(a)(4); or
(B) Contributions or donations from the members of a candidate's family.
(4) If a candidate or campaign committee is found to have accepted contributions or
donations in excess of the limits prescribed in this Code section, the Attorney General,
either at the request of the commission or on his or her own motion, or any resident of
this state may petition the superior court of the county in which the candidate or
campaign committee is domiciled to seek an injunction preventing the expenditure of
such excess funds or directing that such excess funds be returned or escheated as
provided for in this Code section.
(5)(A) It shall be unlawful for a non-Georgia person to pay, transfer funds to, pledge
credit to, reimburse, or otherwise compensate a person otherwise authorized to make
contributions or donations pursuant to this chapter so as to avoid the prohibitions and
contribution cap provided for in this subsection.
(B) It shall be unlawful for any person to knowingly accept payments, funds, credit or
compensation from a non-Georgia person and then contribute or donate to any
candidate or campaign committee portions or all of such payments, funds, credit, or
compensation so as to allow such non-Georgia person to avoid the prohibitions and
contribution cap provided for in this subsection.
</ins>
<ins>(C) Any person who violates this paragraph shall be guilty of a felony, and upon
conviction thereof shall be punished by imprisonment for not less than one nor more
than ten years, or a fine of not more than $10,000.00, or both.</ins> <del>Reserved."
</del> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.