The bill prohibits accepting anonymous donations or funding from state bodies, public companies, companies in which the state or local units are the majority owner, or from physical or legal persons who owe money to the state or local units.
If political parties were to receive anonymous donations they would have to report them to the State Audit Office and the Finance Ministry within eight days from receiving the payment.
Political parties should not accept donations from foreign countries, political parties or legal persons. The only exception could be foreign donations for educational programmes.
Political parties should not accept money from workers' or employers' associations, associations or foundations represented by state or local officials, religious communities, or charities and other nonprofit organisations.
The bill defines political parties as nonprofit associations which can be financed from membership fees, voluntary contributions, publishing, sale of promotional material, party events and party-owned property.
Parliamentary parties would be financed from the state budget, while parties whose members are in representative bodies of local units would be financed from said units' budget. In case one party's members leave and join another party, the budgetary funds would remain in the former party.
The bill also limits the annual amount of donations. A physical person could donate a maximum 90,000 and a legal person a maximum one million kuna to a political party.
Lovrin said the bill bound political parties to make their financial reports publicly available on their web sites. For parliamentary parties, the State Audit Office would have to submit to parliament a report on the supervision of their transactions.
The minister said the bill also referred to independent slates and deputies.
The bill also envisages fines for violators, ranging from 10,000 to 500,000 kuna.
If political parties failed to report payments from forbidden sources, or failed to pay those funds into the budget, or failed to pay into the budget funds exceeding legal donation amounts, the penalty would be a fine three times higher than said payments.