GSCPA Asks Governor Kemp to Veto Senate Bill 368

The Georgia Society of CPAs (GSCPA) recently asked Governor Kemp to veto Senate Bill 368 (SB 368). While GSCPA understands the intention to protect our state, we believe SB 368 imposes excessive burdens on businesses operating in Georgia.

Letter Summary

The letter asks Governor Kemp to veto SB 368 given that it imposes excessive burdens on businesses operating in Georgia. Specifically, it categorizes employees and agents of U.S. subsidiaries of foreign corporations as “agents of foreign principals,” mandating registration and reporting to the Georgia State Ethics Commission. This requirement could potentially impact many CPAs who provide tax, audit or consulting services to foreign entities and their subsidiaries.  The impact on CPAs, CPA firms and their clients would be quite large, and so would the administrative burden to the state of Georgia.

Issues

  • Federally, the Foreign Agents Registration Act (FARA) has many exemptions that this bill does not contain. GSCPA believes it should have been the intent of the legislature to include these exemptions. For example, FARA excludes U.S. subsidiaries of international companies. Making this change would go a long way towards making those impacted more comfortable.
  • Georgia citizens that work for a U.S. subsidiary of a foreign company would have to register and report as an agent of a foreign principal to talk to state policymakers about issues that impact their employer.
  • Associations that have members that are U.S. subsidiaries of a foreign company will have another layer of registration and reporting and also have to include their home addresses, business organization documents, and compensation information.

Stay Informed

The Georgia Society of CPAs will continue efforts to make sure SB 368 is vetoed to allow the General Assembly to go back next session to add in the exemptions included in the Foreign Agents Registration Act (FARA). GSCPA will continue to actively participate in the process. We’re working for you!

To read the letter sent to Governor Brian Kemp, click here.

For more on legislation and representation or to locate your local representatives, visit www.gscpa.org. If you have any questions on this issue, contact Don Cook, vice president, legislative affairs at 404-877-2154 (mobile) or dcook@gscpa.org.