Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill (HC Bill 97)

Supplementary

21 Guidance

(1) The Registrar may give guidance about how the Registrar proposes to exercise
the functions under this Part.

(2) 5The Registrar may do so, in particular, by publishing guidance—

(a) as to cases which the Registrar would, or would not, regard as falling
within any of the exceptions in Part 1 of Schedule 1;

(b) otherwise as to the circumstances in which the Registrar would, or
would not, consider that a person is carrying on the business of
10consultant lobbying;

(c) as to the circumstances in which the Registrar would—

(i) include in the register a statement under section 6(6)(a), or

(ii) remove a person from the register;

(d) as to the circumstances in which the Registrar would consider it
15appropriate to impose a civil penalty;

(e) about how the amount of a civil penalty will be determined.

(3) Where the Registar has published guidance under subsection (2), the Registrar
may publish—

(a) revisions to the guidance, or

(b) 20replacement guidance.

(4) Publication under this section is to be—

(a) on a website, and

(b) in such other form or forms as the Registrar thinks appropriate.

22 Charges

(1) 25The Registrar may impose charges for or in connection with the making, updating and
maintenance of entries in the register.

(2) The charges are to be determined by or in accordance with regulations.

(3) The regulations must specify that, subject to such exceptions as may be set out
in the regulations, no charges are to be paid by persons who are not registered
30under the Value Added Tax Act 1994.

(4) In making the regulations, the Minister must seek to ensure that the total paid
to the Registrar in charges is sufficient to offset the total of the costs incurred
by the Registrar in exercising the functions under this Part.

(5) If a charge imposed for making an application or a return to the Registrar is not
35paid, the Registrar may treat the application or return as not having been
made.

(6) The Registrar must pay into the Consolidated Fund any sums received in respect of
charges under this section.

(7) But regulations may provide for the Registrar to retain some or all of those
40sums.

23 Power to make further provision

(1) Regulations may make such provision as the Minister thinks appropriate for
the purposes of carrying into effect any provision of this Part.

(2) Regulations under subsection (1) may in particular make provision (or further
5provision) about—

(a) the date from which an entry in the register is to take effect;

(b) the form and content of information returns under section 5;

(c) the exercise of the Registrar’s powers under section 6(6);

(d) the removal of entries in other circumstances;

(e) 10the minimum period between the date on which an information notice
is served and that date which must be specified under section 9(4)(b);

(f) other matters which must be specified in an information notice;

(g) the cancellation of notices under section 9(7).

24 Regulations

(1) 15Any reference in this Part to regulations is to regulations made by the Minister.

(2) Regulations under this Part may make such consequential, supplementary,
incidental or transitional provision as the Minister thinks appropriate,
including provision amending or modifying the provisions of this Part.

(3) Regulations under this Part may make different provision for different
20purposes or cases.

(4) Regulations under this Part are to be made by statutory instrument.

(5) A statutory instrument containing regulations under this Part which amend
the provisions of this Part may not be made unless a draft of the instrument has
been laid before, and approved by a resolution of, each House of Parliament.

(6) 25Any other statutory instrument containing regulations under this Part is to be
subject to annulment in pursuance of a resolution of either House of
Parliament.

25 Interpretation

(1) In this Part—

• 30“consultant lobbyist” means a person who carries on the business of
  consultant lobbying, except that it does not include an individual who
  does so only as an employee of a person who is a consultant lobbyist;

• “employee” means an individual who works under a contract of
  employment;

• 35to “engage in lobbying” means to make a communication within section
  2(3) on behalf of another person or persons;

• “information notice” means a notice under section 9;

• “the Minister” means the Secretary of State or the Lord President of the
  Council;

• 40“payment”, “in return for payment” and references to receiving payment
  are to be read in accordance with paragraphs 6 to 8 of Schedule 1;

• “penalty notice” means a notice under section 16;

• “quarter” means each period of three months beginning with 1 January, 1
  April, 1 July or 1 October;

Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration BillPage 12

• “registered person” means a person entered in the register;

• “the Tribunal” means the First-tier Tribunal, except in cases where it is
  determined by or under Tribunal Procedure Rules that an appeal is to
  be heard by the Upper Tribunal.

(2) 5Where the Registrar is required or permitted to serve a notice on a person, this
is to be effected—

(a) if the person is a registered company (within the meaning of the
Companies Act 2006), by sending it by post to the company’s registered
office;

(b) 10if the person is an individual, by delivering it in person, by sending it
by post to the individual’s last known place of residence or business, or
by leaving it at that place;

(c) in any other case, by sending it by post to the last known main address
of that person;

15(but this does not prevent the Registrar from sending additional copies of the
notice by whatever means the Registrar thinks appropriate).

Part 2 Non-party campaigning etc

Controlled expenditure

26 20Meaning of “controlled expenditure”

(1) Section 85 of the Political Parties, Elections and Referendums Act 2000
(controlled expenditure by third parties) is amended in accordance with
subsections (2) to (4).

(2) In subsection (2), for the words from “in connection with” to the end substitute
25“which—

“(a) fall within Part 1 of Schedule 8A, and

(b) are incurred for election purposes.”

(3) For subsection (3) substitute—

“(2A) Election campaign”, in relation to a third party, means a campaign
30conducted by the third party for election purposes.

(3) “For election purposes” means for the purpose of or in connection
with—

(a) promoting or procuring electoral success at any relevant
election for—

(i) 35one or more particular registered parties,

(ii) one or more registered parties who advocate (or do not
advocate) particular policies or who otherwise fall
within a particular category of such parties, or

(iii) candidates who hold (or do not hold) particular
40opinions or who advocate (or do not advocate)
particular policies or who otherwise fall within a
particular category of candidates, or

(b) otherwise enhancing the standing—

(i) of any such party or parties, or

(ii) of any such candidates,

with the electorate in connection with future relevant elections
(whether imminent or otherwise).”

(4) In subsection (4), at the end of paragraph (b) insert “and” and for the words
5after that paragraph substitute—

“(c) a course of conduct may constitute the doing of one of those
things even though it does not involve any express mention
being made of the name of any party or candidate.”

(5) Section 94 of that Act (limits on controlled expenditure by third parties) is
10amended in accordance with subsections (6) and (7).

(6) After subsection (2) insert—

“(2A) It is a defence for any person or third party charged with an offence
under subsection (2) to show—

(a) that any code of practice for the time being issued under
15paragraph 3 of Schedule 8A was complied with in determining
the items and amounts of campaign expenditure to be entered
in the relevant return under section 96, and

(b) that the limit would not have been exceeded on the basis of the
items and amounts entered in that return.”

(7) 20In subsection (6)(b), for “in connection with the production or publication of
election material which” substitute “and the expenditure”.

(8) In section 143 of that Act (details to appear on election material), in subsection
(11), for the definition of “election material” substitute—

• ““election material” means material which can reasonably be
  25regarded as being for election purposes within the meaning of
  Part 6 (see section 85);”.

(9) In section 156 of that Act (orders and regulations), after subsection (4)(j)
insert—

“(ja) paragraph 4 of Schedule 8A,”.

(10) 30Schedule 3 inserts a new Schedule 8A into that Act.

27 Changes to existing limits

(1) In section 94(5) of the Political Parties, Elections and Referendums Act 2000
(limits on controlled expenditure by non-recognised third parties)—

(a) in paragraph (a), for “£10,000” substitute “£5,000”;

(b) 35in paragraph (b), for “£5,000” substitute “£2,000”.

(2) In Schedule 10 to that Act (limits on controlled expenditure by recognised third
parties)—

(a) in paragraph 3(2), for paragraphs (a) to (d) substitute “2% of the
maximum campaign expenditure limit in that part of the United
40Kingdom.”;

(b) after paragraph 3(3) insert—

“(4) The “maximum campaign expenditure limit” in a part of the
United Kingdom is the limit imposed by paragraph 3 of
Schedule 9 in relation to campaign expenditure incurred in
45the relevant period by or on behalf of a registered party

which contests all the constituencies in that part (and to
which sub-paragraph (6) of that paragraph does not apply).”

28 Constituency limits

(1) Part 6 of the Political Parties, Elections and Referendums Act 2000 (controls
5relating to third party national election campaigns) is amended as follows.

(2) In section 94 (limits on controlled expenditure by third parties)—

(a) in subsection (1), after “Northern Ireland” insert “, or in particular
parliamentary constituencies,”;

(b) in subsection (2)—

(i) 10after “part of the United Kingdom” (the first time it occurs)
insert “or a parliamentary constituency”;

(ii) after “part of the United Kingdom” (the second time it occurs)
insert “or parliamentary constituency”;

(c) in subsection (6)—

(i) 15in paragraph (a), after “part of the United Kingdom” insert “or
a particular parliamentary constituency”;

(ii) in the words after paragraph (b), after “part of the United
Kingdom” insert “or parliamentary constituency”;

(d) in subsection (10), omit the “and” at the end of paragraph (c) and after
20paragraph (d) insert—

“(e) any reference to controlled expenditure being incurred
in a parliamentary constituency shall be construed in
accordance with paragraph 2A of that Schedule.”

(3) In section 96 (returns as to controlled expenditure)—

(a) 25in subsection (2), after paragraph (a) insert—

“(aa) a statement listing each constituency (if any) in which
the controlled expenditure incurred by or on behalf of
the third party during that period exceeded the limit
imposed by paragraph 3(2B), 9(3C) or (5C), 10(3C) or
3011(4C) of Schedule 10 (post-dissolution constituency
limit);

(ab) a statement showing, for each constituency listed under
paragraph (aa), all payments made in respect of
controlled expenditure incurred by or on behalf of the
35third party during that period in that constituency;”;

(b) in subsection (3)(a), after “subsection (2)(a)” insert “or (ab)”;

(c) after subsection (8) insert—

“(9) This section does not require the preparation of a separate
return for the period in relation to which a limit is imposed by
40paragraph 3(2B), 9(3C) or (5C), 10(3C) or 11(4C) of Schedule 10
(post-dissolution constituency limit).”

(4) Schedule 10 (limits on controlled expenditure) is amended in accordance with
subsections (5) to (10).

(5) After paragraph 2 insert—

“Attribution of expenditure to different parliamentary constituencies

(1) For the purposes of this Schedule controlled expenditure incurred by
or on behalf of any recognised third party shall (subject to the
following provisions of this paragraph) be attributed to each
5parliamentary constituency in equal proportions.

(2) Controlled expenditure whose effects are wholly or substantially
confined to any particular constituencies or constituency—

(a) shall be attributed to those constituencies in equal
proportions, or

(b) 10shall be attributed solely to that constituency,

as the case may be.

(3) For the purposes of sub-paragraph (2), the effects of controlled
expenditure are wholly or substantially confined to any particular
constituencies or constituency if they have no significant effects in
15any other constituency or constituencies.

(4) References in this Schedule to controlled expenditure “in” a
particular constituency are accordingly to controlled expenditure
which is to be attributed to that constituency in accordance with this
paragraph.”

(6) 20After paragraph 3(2) insert—

“(2A) The limit applying to controlled expenditure which is incurred by or
on behalf of a recognised third party in the relevant period in any
particular parliamentary constituency is 0.05% of the total of the
maximum campaign expenditure limits in England, Scotland, Wales
25and Northern Ireland.

(2B) The limit applying to controlled expenditure which is incurred by or
on behalf of a recognised third party in the post-dissolution part of
the relevant period in any particular parliamentary constituency is
0.03% of the total of the maximum campaign expenditure limits in
30England, Scotland, Wales and Northern Ireland.”

(7) After paragraph 3(4) (as inserted by section 27) insert—

“(5) For the purposes of this paragraph, the “post-dissolution part” of the
relevant period is the period—

(a) beginning with the day during that period on which
35Parliament is dissolved, and

(b) ending with the date of the poll for the parliamentary general
election.”

(8) In paragraph 9 (combined limits where parliamentary election pending)—

(a) in sub-paragraph (1)(a), for “a limit” substitute “limits”;

(b) 40in sub-paragraph (2)(b), for “limit” substitute “limits”;

(c) after sub-paragraph (3) insert—

“(3A) Subject to sub-paragraphs (5) to (7), the limit applying to
controlled expenditure which is incurred by or on behalf of
the recognised third party in the relevant period in any

particular parliamentary constituency is the relevant
proportion of the limit mentioned in paragraph 3(2A).

(3B) For this purpose “the relevant proportion” means—

(3C) The limit applying to controlled expenditure which is
10incurred by or on behalf of the recognised third party in the
post-dissolution part of the relevant period in any particular
parliamentary constituency is the limit mentioned in
paragraph 3(2B).”;

(d) in sub-paragraph (4), for “sub-paragraph (3)” substitute “sub-
15paragraphs (3) to (3C)”;

(e) after sub-paragraph (5) insert—

“(5A) Where two parliamentary general elections are pending
during different parts of any such period as is mentioned in
sub-paragraph (2)—

(a) 20the limit applying to controlled expenditure which is
incurred by or on behalf of the recognised third party
in the first relevant period in any particular
parliamentary constituency is the relevant proportion
of the limit mentioned in paragraph 3(2A), and

(b) 25the limit applying to controlled expenditure which is
incurred by or on behalf of the recognised third party
in the second relevant period in any particular
parliamentary constituency is the relevant proportion
of the limit mentioned in paragraph 3(2A).

(5B) 30For these purposes “the relevant proportion” means—

(5C) Where two parliamentary general elections are pending
during different parts of any such period as is mentioned in
sub-paragraph (2), the limit applying to controlled
40expenditure which is incurred by or on behalf of the
recognised third party in the post-dissolution part of the first
or second relevant period in any particular parliamentary
constituency is the limit mentioned in paragraph 3(2B).”;

(f) in sub-paragraphs (6) and (7), for “sub-paragraph (5)” substitute “sub-
45paragraphs (5) to (5C)”;

(g) after sub-paragraph (7) insert—

“(8) For the purposes of this paragraph, “the post-dissolution
part” of any period is the period—

(a) beginning with the day during that period on which
5Parliament is dissolved, and

(b) ending with the date of the poll for the parliamentary
general election.”

(9) In paragraph 10 (combination of limit under paragraph 9 and other limit)—

(a) in sub-paragraph (1)—

(i) 10for “a limit” (in both places) substitute “limits”;

(ii) after “9(3)” insert “to (3C)”;

(iii) after “9(5)” insert “to (5C);

(b) in sub-paragraph (2), for “limit” (in both places) substitute “limits”;

(c) after sub-paragraph (3) insert—

“(3A) 15The limit applying to controlled expenditure which is
incurred by or on behalf of the recognised third party during
the combined period in any particular parliamentary
constituency is the relevant proportion of the limit
mentioned in paragraph 3(2A).

(3B) 20For this purpose “the relevant proportion” means—

(3C) The limit applying to controlled expenditure which is
incurred by or on behalf of the recognised third party in the
post-dissolution part of the combined period in any
particular parliamentary constituency is the limit mentioned
30in paragraph 3(2B).”;

(d) after sub-paragraph (4) insert—

“(4A) For the purposes of this paragraph, “the post-dissolution
part” of the combined period is the period—

(a) beginning with the day during that period on which
35Parliament is dissolved, and

(b) ending with the date of the poll for the parliamentary
general election.”

(10) In paragraph 11 (combination of parliamentary general election and other
election, or elections, falling within paragraphs 4 to 8)—

(a) 40in sub-paragraph (1), for “a limit” substitute “limits”;

(b) in sub-paragraph (2), for “limit” (in both places) substitute “limits”;

(c) after sub-paragraph (4) insert—

“(4A) The limit applying to controlled expenditure which is
incurred by or on behalf of the recognised third party during
45the combined period in any particular parliamentary

constituency is the relevant proportion of the limit
mentioned in paragraph 3(2A).

(4B) For this purpose “the relevant proportion” means—

(4C) The limit applying to controlled expenditure which is
10incurred by or on behalf of the recognised third party in the
post-dissolution part of the combined period in any
particular parliamentary constituency is the limit mentioned
in paragraph 3(2B).”;

(d) after sub-paragraph (5) insert—

“(5A) 15For the purposes of this paragraph, “the post-dissolution
part” of the combined period is the period—

(a) beginning with the day during that period on which
Parliament is dissolved, and

(b) ending with the date of the poll for the parliamentary
20general election.”

29 Targeted expenditure limits

(1) Part 5 of the Political Parties, Elections and Referendums Act 2000 (control of
campaign expenditure) is amended in accordance with subsections (2) and (3).

(2) In section 79 (limits on campaign expenditure), after subsection (3) insert—

“(3A) 25See section 94D (expenditure by or on behalf of recognised third party
targeted at a registered party) for—

(a) provision under which expenditure incurred by or on behalf of
a third party may count towards the limit mentioned in
subsection (2), and

(b) 30provision modifying subsection (2)(a)(i) in its application to
such expenditure.”

(3) In section 80(4) (returns as to campaign expenditure), omit the “and” at the end
of paragraph (a) and after paragraph (b) insert “; and

(c) in the case of any campaign expenditure treated as incurred by
35the party by virtue of section 94D(2) (expenditure by or on
behalf of recognised third party targeted at a registered party),
any declaration falling to be made with respect to that
expenditure in accordance with section 94D(5).”

(4) Part 6 of that Act (controls relating to third party national election campaigns)
40is amended in accordance with subsections (5) to (8).

(5) In section 87 (expenditure by third parties which is not controlled
expenditure), after subsection (2) insert—

“(3) The reference in subsection (1)(b)(i) to circumstances in which an
amount of campaign expenditure is to be regarded as incurred by or on

behalf of a registered party for the purposes of Part 5 does not include
circumstances in which an amount of campaign expenditure is treated
as incurred by a registered party under section 94D(2).”

(6) In the italic heading before section 94 after “Financial limits” insert “on controlled
5expenditure”.

(7) In section 94 (limits on controlled expenditure by third parties), in subsections
(6), (8) and (10), after “the purposes of this section” insert “, sections 94B to
94F”.

(8) After section 94 insert—

10“Financial limits on targeted controlled expenditure

94A Overview of sections 94B to 94F

(1) Sections 94B to 94F impose limits on, and make other provision relating
to, controlled expenditure incurred by or on behalf of a recognised
third party where the expenditure is targeted at a particular registered
15party.

(2) Section 94B defines when controlled expenditure is regarded as
targeted at a particular registered party, specifies the limits and
specifies the periods over which the limits operate.

(3) Section 94C makes provision about the consequences where controlled
20expenditure targeted at a registered party is incurred by or on behalf of
a recognised third party in excess of a limit without authorisation from
the registered party.

(4) Section 94D makes provision about the consequences where controlled
expenditure targeted at a registered party is incurred by or on behalf of
25a recognised third party in excess of a limit with authorisation from the
registered party.

(5) Section 94E makes provision about how a registered party may give or
withdraw authorisation (including provision enabling the registered
party to specify a cap on the amount of expenditure authorised).

(6) 30Section 94F makes provision about the meaning of references to
expenditure that “exceeds” a targeted expenditure limit or cap.

94B Meaning of “targeted”, “targeted expenditure limit” etc

(1) Controlled expenditure is “targeted” at a particular registered party if
it can reasonably be regarded as—

(a) 35intended to benefit that party or any of its candidates, and

(b) not intended to benefit any other registered party or any of its
candidates.

(2) A limit (a “targeted expenditure limit”) applies to controlled
expenditure that—

(a) 40is incurred during a qualifying regulated period in England,
Scotland, Wales or Northern Ireland, and

(b) is targeted at a particular registered party.