SB600: SB600 "Georgia Corporate Power Reset Act"; enact

Under current Georgia law (O.C.G.A. Title 14), corporations and similar business entities generally have the same broad powers as an individual to do anything necessary or convenient for their business, which has been read to include spending money to influence elections or ballot measures. This bill would flip that default: business corporations, nonprofit corporations, partnerships, limited partnerships, and limited liability companies would only have the powers the General Assembly specifically writes into law, and none of those powers would include paying for 'ballot issue activity' or 'election activity,' both newly defined terms covering spending to support or oppose candidates, parties, committees, ballot questions, or officeholder recalls. Any such spending by these entities would be legally void. Shareholders, members, or partners could sue for a court order stopping it, and the Attorney General could sue for civil penalties equal to the value of the spending, injunctions, or in some cases dissolution of the entity or revocation of its corporate charter. News, commentary, and editorial content from independently owned media outlets is excluded from the ban. The law would take effect as soon as the Governor signs it or it becomes law without his signature, and would apply to activity happening on or after that date.

• Rewrites the general powers sections for business corporations (O.C.G.A. § 14-2-302) and nonprofit corporations (O.C.G.A. § 14-3-302) so entities only have powers the General Assembly expressly grants, instead of the same broad powers as an individual.
• Bans business corporations, nonprofit corporations, partnerships, limited partnerships, and limited liability companies from spending money on 'ballot issue activity' (recalls, constitutional amendments, referenda, ballot questions) or 'election activity' (supporting or opposing candidates, parties, or political committees).
• Declares any such political spending by these entities void and legally unenforceable ('ultra vires'), meaning it has no legal effect as a valid corporate act.
• Lets shareholders, members, or partners sue for a court order (injunction) to stop the prohibited spending.
• Lets the Attorney General sue for civil penalties equal to the value of the spending, an injunction, or in some cases revoke a corporate charter or dissolve the entity.
• Exempts genuine news, commentary, or editorial content from independent media outlets from the definitions of banned activity.

Georgia business corporations, nonprofit corporations, partnerships, limited partnerships, and limited liability companies would all be covered, along with their shareholders, members, and partners who gain new legal standing to sue. The Attorney General's office would gain new enforcement duties, and media companies are addressed through a carve-out for news coverage.

If enacted, Georgia corporations, nonprofits, partnerships, and LLCs would no longer be able to spend money to support or oppose candidates or ballot measures, a common activity for many organizations today. Violations could trigger lawsuits from insiders or the Attorney General, financial penalties, and even loss of a corporate charter or dissolution.

• Section 2 states legislative findings that corporate existence is a privilege granted by the state, not a right, and that the General Assembly retains power to define corporate powers under O.C.G.A. § 14-2-102.
• Section 4 rewrites O.C.G.A. § 14-2-302 for business corporations, replacing the 'same powers as an individual' default with only expressly granted powers, and adds definitions of ballot issue activity and election activity.
• Section 5 adds a new subsection to O.C.G.A. § 14-2-304 making prohibited political spending by business corporations void and enforceable by shareholder lawsuits or Attorney General action, including revocation of the corporate charter.
• Sections 6 and 7 apply the same restructuring and enforcement scheme to nonprofit corporations under O.C.G.A. §§ 14-3-302 and 14-3-304.
• Sections 8 through 10 add new Code sections applying the same restrictions to partnerships, limited partnerships, and entities under the Georgia Revised Uniform Limited Partnership Act, with dissolution as a possible remedy.
• Section 11 rewrites O.C.G.A. § 14-11-202 to apply the same restriction to limited liability companies.
• Section 12 sets the effective date as the date the Governor signs the bill or it otherwise becomes law, applying it to activity on or after that date.

1. 2026-02-26Senate Read and Referred (Senate)
2. 2026-02-25Senate Hopper (Senate)

• Nabilah Islam Parkes (D, SD-007)Primary sponsor
• Nan Orrock (D, SD-036)
• Elena Parent (D, SD-044)
• Harold Jones (D, SD-022)
• Nikki Merritt (D, SD-009)
• RaShaun Kemp (D, SD-038)

• corporate political spending
• election law
• ballot measures
• business regulation
• Attorney General enforcement