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Committee advances campaign‑finance bill to limit out‑of‑state influence and strengthen disclosure
Summary
SB 423 would tighten reporting for small PACs, require disclosures for independent expenditures and limit out‑of‑state influence by requiring a 50% 'Georgian' funding threshold for certain committees; the bill includes civil enforcement by the ethics commission and new criminal penalties for straw‑donation schemes.
Senate Bill 423, described to the committee by the bill’s sponsor (speaker 10), would amend campaign‑finance rules to clarify reporting thresholds for small political action committees, require disclosure of independent expenditures that electronically promote candidates, and introduce a ‘‘Georgian funds’’ test intended to limit outside influence on Georgia elections.
Key provisions presented included restoring a $25,000 annual threshold for small PAC reporting, requiring independent committees that pay for broadcast or electronic communications to disclose federally required identity information, and a proposed limit that at least half of significant campaign receipts be from Georgia persons or entities as defined in the bill. The sponsor said funds exceeding the state threshold must be returned within 45 days or revert to the state if not returned.
The bill also proposes enforcement mechanisms. Complaints may be filed by the attorney general on the ethics commission’s request or by any Georgia resident; the sponsor said noncompliance with disclosure would carry civil penalties under the code (OCGA 21‑5‑6) and that the text includes criminal sanctions for straw‑donation schemes and funneling of out‑of‑state money (felony exposure up to 1–10 years and fines up to $10,000). Committee members pressed the author on why criminal penalties were included where disclosure matters are usually civil; the sponsor said criminal penalties deter deliberate money‑laundering into state campaigns.
On logistics, senators asked how the 50% Georgian threshold would be applied across reporting periods and whether quarterly reporting windows would force refunds within a short period; the sponsor said the test would be evaluated at the reporting period’s close and the ethics commission would review filings. The transcript records the sponsor citing prior court decisions and other states’ approaches (for example, Hawaii’s 30% cap) and saying the bill is intentionally more conservative with a 50% test.
The committee voted to advance the bill on the motion to "do pass." The whip (speaker 17) moved the recommendation and the committee recorded a 7‑in‑favor, 4‑opposed vote to advance SB 423 from the committee.
