SB423: SB423 Government Transparency; campaign committees, independent committees, political action committees, and leadership committees from accepting contributions or donations from non-Georgia persons that exceed 50 percent of all contributions received; prohibit

26 LC 47 4314S 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 to1 government transparency and campaign finance, so as to revise r egistration and reporting2 requirements for certain political action committees; to revise certain disclosure requirements3 for independent committees; to provide for violations and penalties; to prohibit candidates4 or campaign committees from accepting contributions or donation s from non-Georgia5 persons that exceed 50 percent of all contributions received; t o provide definitions; to6 provide for the return of such excess contributions; to provide for the escheatment of excess7 contributions that are not returned; to provide for exceptions; to provide for injunctive relief;8 to prohibit and provide penalties for strawman transactions seeking to avoid the contribution9 cap provided herein; to provide for related matters; to repeal conflicting laws; and for other10 purposes.11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12 SECTION 1.13 Chapter 5 of Title 21 of the Official Code of Georgia Annotated , relating to government14 transparency and campaign finance, is amended in Code Section 2 1-5-34, relating to15 S. B. 423 (SUB) - 1 - 26 LC 47 4314S campaign contribution disclosure reports and committee registration, by revising subsections16 (e.1) and (f) as follows:17 "(e.1) Any political action committee which makes contributions to, accepts contributions18 for, or makes expenditures on behalf of candidates shall file a registration in the same19 manner as is required of campaign committees prior to accepting or making contributions20 or expenditures. Prior to such registration, such political ac tion committee shall open a21 bank account in the name of such political action committee and shall maintain such bank22 account until the political action committee is terminated. Such political action committee23 shall also file campaign contribution disclosure reports on January 31, April 30, July 31,24 and October 20 of each year until the bank account required by this subsection has been25 zeroed out and the political action committee has been terminat ed. Political action26 committees making aggregate expenditures on behalf of candidates of $25,000.00 or less27 in one calendar year shall be exempt from the foregoing registr ation and reporting28 requirements.29 (f)(1) Any independent committee which accepts contributions or makes expenditures30 for the purpose of affecting the outcome of an election or advocates the election or defeat31 of any candidate shall register with the commission prior to ac cepting contributions or32 making expenditures and shall file disclosure reports as follows:33 (A) On the first day of each of the two calendar months preceding any such election;34 (B) Two weeks prior to the date of such election; and35 (C) Within the two-week period prior to the date of such elect ion the independent36 committee shall report within two business days any contributio ns or expenditure of37 more than $1,000.00.38 The independent committee shall file a final report prior to December 31 of the election39 year and shall file supplemental reports on June 30 and Decembe r 31 of each year that40 such independent committee continues to accept contributions or make expenditures.41 (2) Reports filed by independent committees shall list the following:42 S. B. 423 (SUB) - 2 - 26 LC 47 4314S (A) The amount and date of receipt, along with the name, mailing address, occupation,43 and employer of any person making a contribution of more than $100.00;44 (B) The name, mailing address, occupation, and employer of any person to whom an45 expenditure or provision of goods or services of the value of more than $100.00 is made46 and the amount, date, and general purpose thereof, including the name of the candidate47 or candidates, if any, on behalf of whom, or in support of or in opposition to whom, the48 expenditure or provision was made;49 (C) Total expenditures made as follows:50 (i) Expenditures shall be reported for the applicable reporting year;51 (ii) The first report of a reporting year shall list the total expenditures made during52 the period covered by the report; and53 (iii) Subsequent reports shall list the total expenditures mad e during the period54 covered by the report, the cumulative total of expenditures made during the reporting55 year, and net balance on hand; and56 (D) The corporate, labor union, or other affiliation of any political action committee,57 candidate, campaign committee, or independent committee making a contribution of58 the value of more than $100.00.59 (3) Whenever any independent committee makes an expenditure fo r the purpose of60 financing any communication intended to affect the outcome of a n election, such61 communication shall clearly state that it has been financed by such independent62 committee.63 (4) Any independent committee which makes expenditures or expe nds funds for the64 purpose of affecting the outcome of an election for any elective office, or to advocate the65 election or defeat of a particular candidate, through broadcast media, cable, radio,66 electronic communications, or the internet shall disclose all information required by all67 applicable federal statutes or regulations to the respective fe deral authority. It shall be68 a violation of this chapter and unlawful to fail to comply with the provisions of this69 S. B. 423 (SUB) - 3 - 26 LC 47 4314S subsection. Each expenditure made in violation of this subsection shall be considered a70 separate and distinct violation and subject to civil penalties as provided for in Code71 Section 21-5-6."72 SECTION 2.73 Said chapter is further amended in Code Section 21-5-41, relati ng to maximum allowable74 contributions, by revising subsection (h), which is reserved, as follows:75 "(h)(1) As used in this subsection, the term 'Non-Georgia person' means:76 (A) As to an individual, any individual except an individual who:77 (i) On the date such contribution or donation was made, was a registered Georgia78 voter; or79 (ii) Paid individual income taxes to the State of Georgia in t he calendar year80 preceding the date of such contribution or donation;81 (B) As to a business entity, any entity except an entity that:82 (i) On the date such contribution or donation was made, was re gistered with the83 Secretary of State to do business in this state;84 (ii) Paid individual or corporate income taxes to the State of Georgia in the calendar85 year preceding the date of such contribution or donation; or86 (iii) Filed a corporate income tax return with the Georgia Department of Revenue in87 the preceding calendar year or maintains sufficient economic presence, property, or88 payroll within this state to establish a nexus under state law; and89 (C) As to a campaign committee, any such committee which cannot demonstrate that90 the funds from which such committee made such contribution or donation came from91 individuals or entities exempted pursuant to subparagraphs (A) and (B) of this92 subparagraph.93 (2) After June 1, 2026, contributions or donations from all non-Georgia persons shall not94 exceed 50 percent of the total contributions and donations rece ived by a candidate or95 S. B. 423 (SUB) - 4 - 26 LC 47 4314S campaign committee for a reporting period. In the event that t he total amount of such96 contributions and donations exceeds 50 percent of the total contributions received, such97 candidate or campaign committee shall return such excess funds to the non-Georgia98 persons making such contributions or donations. In the event t hat such candidate or99 campaign committee cannot or does not return such excess funds within 45 days of the100 end of a reporting period, such funds shall escheat to the state.101 (3) This subsection shall not apply to any:102 (A) Transfer of funds made by the national committee of a poli tical party to a state,103 district, or local committee of the same political party pursua nt to 52 U.S.C.104 Section 30116(a)(4); or105 (B) Contributions or donations from the members of a candidate's family.106 (4) If a candidate or campaign committee is found to have acce pted contributions or107 donations in excess of the limits prescribed in this Code section, the Attorney General,108 either at the request of the commission or on his or her own mo tion, or any resident of109 this state may petition the superior court of the county in whi ch the candidate or110 campaign committee is domiciled to seek an injunction preventin g the expenditure of111 such excess funds or directing that such excess funds be return ed or escheated as112 provided for in this Code section.113 (5)(A) It shall be unlawful for a non-Georgia person to pay, transfer funds to, pledge114 credit to, reimburse, or otherwise compensate a person otherwise authorized to make115 contributions or donations pursuant to this chapter so as to avoid the prohibitions and116 contribution cap provided for in this subsection.117 (B) It shall be unlawful for any person to knowingly accept payments, funds, credit or118 compensation from a non-Georgia person and then contribute or d onate to any119 candidate or campaign committee portions or all of such payment s, funds, credit, or120 compensation so as to allow such non-Georgia person to avoid th e prohibitions and121 contribution cap provided for in this subsection.122 S. B. 423 (SUB) - 5 - 26 LC 47 4314S (C) Any person who violates this paragraph shall be guilty of a felony, and upon123 conviction thereof shall be punished by imprisonment for not le ss than one nor more124 than ten years, or a fine of not more than $10,000.00, or both. Reserved."125 SECTION 3.126 All laws and parts of laws in conflict with this Act are repealed.127 S. B. 423 (SUB) - 6 -