State Legislation: Georgia Governor Vetoes Baby FARA Bill; Hawaii Legislature Passes Crowdfunding Bill

States are often at the forefront of considering new laws that affect nonprofits. Two recent trends are of particular note.

As detailed on the Foreign Agents Registration Act webpage of the International Center on Not-for-Profit Law (ICNL) (under "State FARA Legislation"), over half a-dozen states have introduced bills that would create state "baby FARA" laws mimicking the existing federal law, which could have significant effects on nonprofits if enacted. The bill that had made the most progress was in Georgia, where the legislature passed it. But earlier this month, the governor vetoed it. As noted in the veto message the will would have "impose[d] additional state-level registration requirements on agents of foreign principals, some of which were unintended by the bill’s sponsor," indicating the bill's sponsor had requested the veto having learned about these unintended consequences.

As reported previously in this space, California enacted the first comprehensive regulation of online donative crowdfunding exemplified by GoFundMe and is now wrestling with developing regulations implementing that legislation. Hawaii may now join it, as the legislature has passed SB2983, described as "Beginning 1/1/2026, authorizes the Department of the Attorney General to regulate charitable fundraising platforms and platform charities. Includes provisions relating to the misuse of funds. Imposes vicarious liability upon a platform charity for a charitable fundraising platform's misuse of funds, and vice versa. Takes effect 1/1/2026." The bill now awaits the governor's signature.

Lloyd Mayer