Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill (HL Bill 50)

(4) Part 6 of that Act (controls relating to third party national election campaigns)
is 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) 5The 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) 10In the italic heading before section 94 after “Financial limits” insert “on controlled
expenditure”.

(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) 15After section 94 insert—

“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
20third party where the expenditure is targeted at a particular registered
party.

(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) 25Section 94C makes provision about the consequences where controlled
expenditure 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
30expenditure targeted at a registered party is incurred by or on behalf of
a 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
35party to specify a cap on the amount of expenditure authorised).

(6) Section 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
40it can reasonably be regarded as—

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

(b) 5is targeted at a particular registered party.

(3) A “qualifying regulated period” is a period in relation to which limits
are imposed by paragraph 3(2), 9(3) or (5), 10(3) or 11(3) of Schedule 10
(periods involving parliamentary general elections).

(4) The targeted expenditure limit applying to controlled expenditure
10incurred during a qualifying regulated period in a part of the United
Kingdom is—

(a) for the period in relation to which limits are imposed by
paragraph 3(2) of Schedule 10, 0.2% of the maximum campaign
expenditure limit in that part of the United Kingdom, and

(b) 15for any other qualifying regulated period, the relevant
proportion of the limit determined in accordance with
paragraph (a).

(5) In subsection (4)(a) “maximum campaign expenditure limit” has the
same meaning as in paragraph 3 of Schedule 10.

(6) 20In subsection (4)(b) “the relevant proportion” means—

(7) This section applies for the purposes of sections 94C to 94F.

94C Unauthorised expenditure in excess of targeted expenditure limit

(1) This section applies if—

(a) 30controlled expenditure which is targeted at a particular
registered party (“the registered party”) is incurred by or on
behalf of a recognised third party (“the third party”),

(b) the expenditure exceeds a targeted expenditure limit (to any
extent), and

(c) 35at the time the expenditure is incurred—

(i) the third party is not authorised by the registered party
to incur expenditure targeted at it, or

(ii) the third party is so authorised, but the expenditure
exceeds a cap specified in the authorisation (to any
40extent).

(2) If the third party is not an individual—

(a) the responsible person is guilty of an offence if the person
authorised the expenditure to be incurred by or on behalf of the
third party and the person knew or ought reasonably to have
45known that the expenditure would be incurred in excess of the
targeted expenditure limit, and

(b) the third party is also guilty of an offence.

(3) If the third party is an individual, the third party is guilty of an offence
if the third party knew or ought reasonably to have known that the
expenditure would be incurred in excess of the targeted expenditure
5limit.

94D Authorised expenditure in excess of targeted expenditure limit

(1) This section applies if—

(a) controlled expenditure which is targeted at a particular
registered party (“the registered party”) is incurred by or on
10behalf of a recognised third party (“the third party”),

(b) the expenditure exceeds a targeted expenditure limit (to any
extent),

(c) at the time the expenditure is incurred the third party is
authorised by the registered party to incur expenditure targeted
15at it, and

(d) if the registered party specified a cap in the authorisation, the
expenditure, or any part of it, does not exceed the cap.

(2) The authorised amount is treated for the purposes of section 79(2)
(limits on campaign expenditure) as if—

(a) 20it were campaign expenditure within the meaning of Part 5, and

(b) it was incurred by the registered party at the same time as the
controlled expenditure mentioned in subsection (1)(a) was in
fact incurred by or on behalf of the third party.

(3) For the purposes of this section, “the authorised amount” is the amount
25of the controlled expenditure incurred as mentioned in subsection
(1)(a) less—

(a) such amount, if any, of that expenditure as does not exceed the
targeted expenditure limit, and

(b) such amount, if any, of that expenditure as exceeds a cap
30specified by the registered party in its authorisation of the third
party.

(4) In determining whether, by virtue of subsection (2), the incurring of
controlled expenditure by or on behalf of the third party constitutes an
offence under section 79(2) by the treasurer or any deputy treasurer of
35the registered party, section 79(2)(a)(i) is treated as if the reference in
that provision to the authorisation of the expenditure were to the
signing of the authorisation under section 94E.

(5) The treasurer or a deputy treasurer of the registered party must make
a declaration of—

(a) 40the amount of the controlled expenditure incurred as
mentioned in subsection (1)(a), and

(b) the authorised amount.

(6) A person commits an offence if the person knowingly or recklessly
makes a false declaration under subsection (5).

94E Authorisation

(1) A registered party may authorise a recognised third party to incur
controlled expenditure in England, Scotland, Wales or Northern
Ireland that is targeted at the registered party.

(2) 5An authorisation—

(a) must be in writing,

(b) must be signed by a relevant officer,

(c) must specify the part of the United Kingdom to which it relates,
and

(d) 10may specify a cap on the amount of expenditure authorised.

(3) An authorisation is of no effect until a copy of it has been given to the
Commission by the registered party.

(4) The Commission must, as soon as is reasonably practicable after
receiving a copy of an authorisation, enter in the register maintained
15under section 89 (register of notifications)—

(a) the fact that the registered party has given the authorisation,
and

(b) the information specified in it.

(5) A registered party may at any time withdraw an authorisation already
20given.

(6) A withdrawal of an authorisation—

(a) must be in writing, and

(b) must be signed by a relevant officer.

(7) A withdrawal of an authorisation is of no effect until a copy of it has
25been given to the Commission by the registered party.

(8) The Commission must, as soon as is reasonably practicable after
receiving a copy of a withdrawal of an authorisation, update the
register maintained under section 89.

(9) For the purposes of this section “relevant officer”, in relation to a
30registered party, means—

(a) the treasurer of the party, or

(b) a deputy treasurer of the party.

94F Expenditure that “exceeds” a targeted expenditure limit or cap

(1) Controlled expenditure incurred by or on behalf of a recognised third
35party during a qualifying regulated period in any part of the United
Kingdom that is targeted at a particular registered party “exceeds”—

(a) a targeted expenditure limit, or

(b) a cap specified by the registered party in its authorisation of the
third party,

40if and to the extent that the relevant cumulative total is in excess of that
limit or cap.

(2) For this purpose “the relevant cumulative total” is the total of—

(a) the controlled expenditure incurred as mentioned in subsection
(1), and

(b) the total of any controlled expenditure targeted at the same
registered party which has already been incurred by or on
behalf of the third party during the qualifying regulated period
in that part of the United Kingdom.”

(9) 5In Schedule 20 to that Act (penalties) insert the following entries in the
appropriate places—

(10) If section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act
2012 comes into force before the day on which this Act is passed—

(a) section 85 of that Act (removal of limit on certain fines on conviction by
magistrates’ court) applies in relation to the offences in sections 94C(2)
20and (3) and 94D(6) of the Political Parties, Elections and Referendums
Act 2000 (as inserted by this section) on and after that day as if they
were relevant offences (as defined in section 85(3) of that Act), and

(b) regulations described in section 85(11) of that Act may amend, repeal
or otherwise modify amendments made by this section.

30 25Extension of power to vary specified sums

(1) Section 155 of the Political Parties, Elections and Referendums Act 2000 (power
to vary specified sums) is amended as follows.

(2) In the heading, at the end insert “or percentages”.

(3) After subsection (4) insert—

“(5) 30The Secretary of State may by order vary any percentage for the time
being specified in—

(a) section 94B(4), or

(b) paragraph 3(2), (2A) or (2B) of Schedule 10.

(6) The Secretary of State may make an order under subsection (5) only if
35it gives effect to a recommendation of the Commission.”

Information and reports

31 Notification requirements for recognised third parties

(1) Section 88 of the Political Parties, Elections and Referendums Act 2000
(recognised third parties) is amended as follows.

(2) 40In subsection (3)(c), after sub-paragraph (i) (before the “and” at the end)

insert—

“(ia) the names of the relevant participators in relation to the
body (see subsection (3B)),”.

(3) After subsection (3A) insert—

“(3B) 5The “relevant participators” in relation to a body are—

(a) in the case of a body falling with section 54(2)(b) (companies),
the body’s directors;

(b) in the case of a body falling within section 54(2)(d) (trade
unions), the body’s officers (within the meaning of the Trade
10Union and Labour Relations (Consolidation) Act 1992: see
section 119 of that Act);

(c) in the case of a body falling within section 54(2)(e) (building
societies), the body’s directors;

(d) in the case of a body falling within section 54(2)(f) (limited
15liability partnerships), the body’s members;

(e) in the case of a body falling within section 54(2)(g) (friendly
societies etc)—

(i) where the body is a friendly society, the members of the
body’s committee of management;

(ii) 20otherwise, the members of the body’s committee of
management or other directing body;

(f) in the case of a body falling within section 54(2)(h)
(unincorporated associations)—

(i) where the body has more than 15 members and has
25officers or a governing body, those officers or the
members of that governing body;

(ii) otherwise, the body’s members.”

32 Reporting of donations to recognised third parties

(1) The Political Parties, Elections and Referendums Act 2000 is amended in
30accordance with subsections (2) to (10).

(2) After section 95 (control of donations to recognised third parties) insert—

“Quarterly and weekly reports of donations to recognised third parties

Quarterly donation reports

95A (1) Subject to section 95B, the responsible person in relation to a recognised
35third party must, in respect of each reporting period that falls within a
qualifying regulated period, prepare a report about reportable
donations (“a quarterly report”).

(2) The reporting periods are—

(a) the period of 3 months beginning with the first day of the
40qualifying regulated period,

(b) each succeeding period of 3 months falling within the
qualifying regulated period, and

(c) any final period of less than 3 months falling within that period.

(3) A “qualifying regulated period” is a period in relation to which any
limit is imposed by paragraph 3, 9, 10 or 11 of Schedule 10 (periods
involving parliamentary general elections).

(4) A quarterly report must comply with the requirements of Schedule
511A.

(5) A “reportable donation” means a relevant donation (within the
meaning of Schedule 11) which—

(a) is received by the recognised third party in respect of the
relevant election or elections the poll or polls for which take
10place during the qualifying regulated period, and

(b) is accepted, or is dealt with in accordance with section 56(2) (as
applied by paragraph 7 of Schedule 11), by the recognised third
party during the reporting period.

(6) A quarterly report must be delivered to the Commission by the
15responsible person within the period of 30 days beginning with the end
of the reporting period to which it relates.

(7) The report must be accompanied by a declaration signed by the
responsible person stating that, to the best of that person’s knowledge
and belief—

(a) 20all reportable donations (if any) recorded in the report as having
been accepted by the recognised third party are from
permissible donors,

(b) there are no reportable donations which are required to be
recorded in the report in accordance with Schedule 11A which
25are not so recorded, and

(c) each statement (if any) given under paragraph 3(3) or 5(4) of
Schedule 11A (nil statements) is accurate.

(8) This section does not require the preparation of separate quarterly
reports in the case of the qualifying regulated period in relation to
30which a limit is imposed by paragraph 3(2B), 9(3C) or (5C), 10(3C) or
11(4C) of Schedule 10 (post-dissolution constituency limit).

(9) This section does not apply in relation to—

(a) a recognised third party which is a registered party other than a
minor party, or

(b) 35a recognised Gibraltar third party.

Exemption from section 95A

95B (1) Section 95A does not apply in relation to a recognised third party in the
case of a qualifying regulated period if—

(a) the third party has made an exemption declaration covering
40that period, and

(b) that declaration has not been withdrawn.

(2) A recognised third party is to be taken to have made an exemption
declaration covering a qualifying regulated period if a declaration that
the third party does not intend that controlled expenditure is to be
45incurred by or on behalf of the third party in the United Kingdom
during that period—

(a) is signed by the responsible person in relation to the third party,
and

(b) is sent to the Commission within the period of 30 days
beginning with the start of the qualifying regulated period.

(3) 5An exemption declaration covering a qualifying regulated period may
be withdrawn by a notice which—

(a) is signed by the responsible person in relation to the third party,
and

(b) is sent to the Commission before the end of that period.

(4) 10An exemption declaration covering a qualifying regulated period is to
be treated as withdrawn if controlled expenditure is incurred by or on
behalf of the third party in the United Kingdom during that period.

(5) Where an exemption declaration covering a qualifying regulated
period is withdrawn, section 95A applies in relation to the recognised
15third party in the case of that period—

(a) in respect of the reporting period in which the withdrawal
occurred and subsequent reporting periods falling within the
qualifying regulated period, and

(b) with the modification specified in subsection (6), in respect of
20each reporting period (if any) which preceded the reporting
period in which the withdrawal occurred and falls within the
qualifying regulated period.

(6) Where a quarterly report is required to be prepared under section 95A
by virtue of subsection (5)(b), that section applies in relation to that
25report as if the time limit in subsection (6) of that section were the
period of 30 days beginning with the end of the reporting period in
which the withdrawal occurred.

(7) Where an exemption declaration covering a qualifying regulated
period is withdrawn, the third party may not make another exemption
30declaration under this section covering that period.

(8) In this section “qualifying regulated period” and “reporting period”
have the same meaning as in section 95A.

Weekly donation reports during general election periods

95C (1) Subject to section 95D, the responsible person in relation to a
35recognised third party must, in respect of each reporting period that
falls within a general election period, prepare a report about substantial
donations (“a weekly report”).

(2) The reporting periods are—

(a) the period of 7 days beginning with the first day of the general
40election period,

(b) each succeeding period of 7 days falling within the general
election period, and

(c) any final period of less than 7 days falling within that period.

(3) A “general election period” means the period—

(a) 45beginning with the day during a qualifying regulatory period
on which Parliament is dissolved, and

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

(4) A weekly report must comply with the requirements of Schedule 11A.

(5) A “substantial donation” means a relevant donation of a substantial
5value which is received by the recognised third party during the
reporting period in respect of the relevant election or elections the poll
or polls for which take place during the general election period.

(6) A relevant donation is “of a substantial value” if its value (as
determined in accordance with paragraph 5 of Schedule 11) is more
10than £7,500.

(7) A weekly report must be delivered to the Commission by the
responsible person within the period of 7 days beginning with the end
of the reporting period to which it relates.

(8) The report must be accompanied by a declaration signed by the
15responsible person stating that, to the best of that person’s knowledge
and belief, no substantial donations have been received by the
recognised third party during the reporting period which are required
to be recorded in the report in accordance with Schedule 11A and are
not so recorded.

(9) 20In this section—

• “qualifying regulated period” has the same meaning as in section
  95A;

• “relevant donation” has the same meaning as in Schedule 11.

(10) This section does not apply in relation to—

(a) 25a recognised third party which is a registered party other than a
minor party, or

(b) a recognised Gibraltar third party.

Exemption from section 95C

95D (1) Section 95C does not apply in relation to a recognised third party in the
30case of a general election period if—

(a) the third party has made an exemption declaration covering
that period, and

(b) that declaration has not been withdrawn.

(2) A recognised third party is to be taken to have made an exemption
35declaration covering a general election period if a declaration that the
third party does not intend that controlled expenditure is to be incurred
by or on behalf of the third party in the United Kingdom during that
period—

(a) is signed by the responsible person in relation to the third party,
40and

(b) is sent to the Commission within the period of 7 days beginning
with the start of the general election period.

(3) An exemption declaration covering a general election period may be
withdrawn by a notice which—

(a) 45is signed by the responsible person in relation to the third party,
and

(b) is sent to the Commission before the end of that period.

(4) An exemption declaration covering a general election period is to be
treated as withdrawn if controlled expenditure is incurred by or on
behalf of the third party in the United Kingdom during that period.

(5) 5Where an exemption declaration covering a general election period is
withdrawn, section 95C applies in relation to the recognised third party
in the case of that period—

(a) in respect of the reporting period in which the withdrawal
occurred and subsequent reporting periods falling within the
10general election period, and

(b) with the modification specified in subsection (6), in respect of
each reporting period (if any) which preceded the reporting
period in which the withdrawal occurred and falls within the
general election period.

(6) 15Where a weekly report is required to be prepared under section 95C by
virtue of subsection (5)(b), that section applies in relation to that report
as if the time limit in subsection (7) of that section were the period of 7
days beginning with the end of the reporting period in which the
withdrawal occurred.

(7) 20Where an exemption declaration covering a general election period is
withdrawn, the third party may not make another exemption
declaration under this section covering that period.

(8) In this section “general election period” and “reporting period” have
the same meaning as in section 95C.

25Related offences

95E (1) The responsible person in relation to a recognised third party commits
an offence if, without reasonable excuse, the responsible person—

(a) fails to deliver a quarterly or weekly report in accordance with
section 95A(6) or 95C(7),

(b) 30delivers a quarterly or weekly report to the Commission
without the accompanying declaration required under section
95A(7) or 95C(8), or

(c) delivers a quarterly or weekly report to the Commission which
does not comply with the requirements of Schedule 11A.

(2) 35The responsible person in relation to a recognised third party commits
an offence if the person knowingly or recklessly makes a false
declaration under section 95A(7) or 95C(8).

Forfeiture

95F (1) The court may, on an application made by the Commission, order the
40forfeiture by a recognised third party of an amount equal to the value
of a relevant donation where the court is satisfied that—

(a) a failure by the responsible person to deliver a quarterly or
weekly report in accordance with section 95A(6) or 95C(7), or

(b) the delivery by the responsible person of a quarterly or weekly
45report which fails to comply with a requirement of Schedule
11A,