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

reporting period, appoint a qualified independent person to be an
assurer in relation to that period.

(2) There is incorporated in the assurer’s appointment a duty which the
assurer owes to the trade union—

(a) 5to provide to the union a membership audit certificate in
relation to the reporting period which accords with the
requirements of section 24ZD, and

(b) to carry out such enquiries as the assurer considers necessary to
enable the assurer to provide that certificate.

(3) 10A person is a “qualified independent person” if—

(a) the person either satisfies such conditions as may be specified
for the purposes of this section by order of the Secretary of State
or is specified by name in such an order, and

(b) the trade union has no grounds for believing that—

(i) 15the person will carry out an assurer’s functions
otherwise than competently, or

(ii) the person’s independence in relation to the union
might reasonably be called into question.

(4) None of the following may act as an assurer—

(a) 20an officer or employee of the trade union or of any of its
branches or sections;

(b) a person who is a partner of, or in the employment of, or who
employs, such an officer or employee.

(5) This section does not apply to a trade union in relation to a reporting
25period if the number of its members at the end of the preceding
reporting period did not exceed 10,000.

(6) Any order under this section is to be made by statutory instrument and
is to be subject to annulment in pursuance of a resolution of either
House of Parliament.

24ZC 30Appointment and removal of an assurer

(1) The rules of every trade union to which section 24ZB applies must
contain provision for the appointment and removal of an assurer.

But the following provisions have effect notwithstanding anything in
the rules.

35But the following provisions have effect notwithstanding anything in
the rules.

(2) An assurer must not be removed from office except by resolution
passed at a general meeting of the members of the union or of delegates
of its members.

(3) 40A person duly appointed as an assurer in relation to a reporting period
must be reappointed as assurer in relation to the following reporting
period, unless—

(a) a resolution has been passed at a general meeting of the trade
union appointing somebody else instead or providing expressly
45that the person is not to be re-appointed,

(b) the person has given notice to the union in writing of the
person’s unwillingness to be re-appointed,

(c) the person is not qualified for the appointment in accordance
with section 24ZB, or

(d) the person has ceased to act as assurer by reason of incapacity.

(4) But a person need not automatically be re-appointed where—

(a) the person is retiring,

(b) notice has been given of an intended resolution to appoint
5somebody else instead, and

(c) that resolution cannot be proceeded with at the meeting
because of the death or incapacity of the proposed replacement.

24ZD Requirements of assurer’s membership audit certificate

(1) For the purposes of section 24ZB(2)(a) the requirements of a
10membership audit certificate in relation to a reporting period provided
by an assurer are as follows.

(2) The certificate must state the name of, and be signed by, the assurer.

(3) The certificate must state—

(a) whether, in the assurer’s opinion, the trade union’s system for
15compiling and maintaining the register of the names and
addresses of its members was satisfactory for the purposes of
complying with the union’s duties under section 24(1)
throughout the reporting period, and

(b) whether, in the assurer’s opinion, the assurer has obtained the
20information and explanations which the assurer considers
necessary for the performance of the assurer’s functions.

(4) If the certificate states that—

(a) in the assurer’s opinion, the trade union’s system for compiling
and maintaining the register was not satisfactory for the
25purposes of complying with the union’s duties under section
24(1) throughout the reporting period, or

(b) in the assurer’s opinion, the assurer has failed to obtain the
information and explanations which the assurer considers
necessary for the performance of the assurer’s functions,

30the certificate must state the assurer’s reasons for making that
statement.

(5) In the case of a failure to obtain information or explanations as
described in subsection (4)(b), the certificate must also—

(a) provide a description of the information or explanations
35requested or required which have not been obtained, and

(b) state whether the assurer required that information or those
explanations from the union’s officers, or officers of any of its
branches or sections, under section 24ZE.

(6) The reference in subsection (2) to signature by the assurer is, where that
40office is held by a body corporate or partnership, to signature in the
name of the body corporate or partnership by an individual authorised
to sign on its behalf.

24ZE Rights of assurer

(1) An assurer appointed by a trade union under section 24ZB—

(a) 45has a right of access at all reasonable times to the register of the
names and addresses of the union’s members and to all other
documents which the assurer considers may be relevant to

whether the union has complied with any of the requirements
of section 24(1), and

(b) is entitled to require from the union’s officers, or the officers of
any of its branches or sections, such information and
5explanations as the assurer considers necessary for the
performance of the assurer’s functions.

(2) In subsection (1) references to documents include information recorded
in any form.

24ZF Duty to inform the Certification Officer

10If an assurer provides a membership audit certificate in relation to a
reporting period to a trade union which states that, in the assurer’s
opinion—

(a) the union’s system for compiling and maintaining the register
was not satisfactory for the purposes of complying with the
15union’s duties under section 24(1) throughout that period, or

(b) the assurer has failed to obtain the information and
explanations which the assurer considers necessary for the
performance of the assurer’s functions,

the assurer must send a copy of the certificate to the Certification
20Officer as soon as is reasonably practicable after it is provided to the
union.

24ZG Duty of confidentiality

(1) The duty of confidentiality as respects the register is incorporated in an
assurer’s appointment by a trade union under section 24ZB.

(2) 25The duty of confidentiality as respects the register is a duty which the
assurer owes to the union—

(a) not to disclose any name or address in the register of the names
and addresses of the union’s members except in permitted
circumstances, and

(b) 30to take all reasonable steps to secure that there is no disclosure
of any such name or address by another person except in
permitted circumstances.

(3) The circumstances in which disclosure of a member’s name or address
is permitted are—

(a) 35where the member consents,

(b) where it is required or requested by the Certification Officer for
the purposes of the discharge of any of the Officer’s functions,

(c) where it is required for the purposes of the discharge of any of
the functions of an inspector appointed by the Officer,

(d) 40where it is required for the purposes of the discharge of any of
the functions of the assurer, or

(e) where it is required for the purposes of the investigation of
crime or criminal proceedings.”

(3) In section 24A(3) (securing confidentiality of register during ballots), after
45“duty of confidentiality”” insert “, in the context of a scrutineer or independent
person,”.

(4) In section 44(4) (discharge of duties in case of union having branches or

sections), at the appropriate place in the list insert—

• “sections 24ZB and 24ZC (duty to appoint an assurer etc),”.

(5) In section 299 (index of defined expressions), in the entry for “the duty of
confidentiality”, after “confidentiality” insert “, in the context of a scrutineer or
5independent person”.

38 Investigatory powers

(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended
as follows.

(2) After section 24ZG (which is inserted by section 37), insert—

“24ZH 10 Power of Certification Officer to require production of documents etc

(1) If the Certification Officer thinks there is good reason to do so, the
Officer—

(a) may give directions to a trade union, or a branch or section of a
trade union, requiring it to produce such relevant documents as
15are specified in the directions;

(b) may authorise a member of the Officer’s staff or any other
person (“an authorised person”), on producing (if so required)
evidence of that authority, to require a trade union, or a branch
or section of a trade union, to produce immediately to the
20authorised person such relevant documents as that person
specifies.

(2) “Relevant documents”, in relation to a trade union or a branch or
section of a trade union, means—

(a) the register of the names and addresses of the trade union’s
25members, and

(b) documents of any other description which the Certification
Officer or authorised person considers may be relevant to
whether the union has failed to comply with any of the
requirements of section 24(1) (duties regarding the register of
30members).

(3) Directions under subsection (1)(a) must specify the time and place at
which the documents are to be produced.

(4) Where the Certification Officer, or an authorised person, has power to
require the production of documents by virtue of subsection (1), the
35Officer or authorised person has the like power to require production
of those documents from any person who appears to the Officer or
authorised person to be in possession of them.

(5) The power under this section to require the production of documents
includes the power—

(a) 40if the documents are produced—

(i) to take copies of them or extracts from them;

(ii) to require the person by whom they are produced to
provide an explanation of any of them;

(iii) to require any person who is or has been an official or
45agent of the trade union to provide an explanation of
any of them;

(b) if the documents are not produced, to require the person who
was required to produce them to state, to the best of the
person’s knowledge and belief, where they are.

(6) For the purposes of subsection (5)(a)(iii), “agent” includes an assurer
5appointed by the trade union under section 24ZB.

(7) For supplementary provision, see section 24ZK.

24ZI Investigations by inspectors

(1) The Certification Officer may appoint one or more members of the
Officer’s staff or other persons as an inspector or inspectors to—

(a) 10investigate whether a trade union has failed to comply with any
of the requirements of section 24(1) (duties regarding the
register of members), and

(b) report to the Officer in such manner as the Officer may direct.

(2) The Certification Officer may only make such an appointment if it
15appears to the Officer that there are circumstances suggesting that the
union has failed to comply with a requirement of section 24(1), 24ZA or
24ZB (duties etc relating to the register of members).

(3) Where any person appears to the inspector or inspectors to be in
possession of information relating to a matter considered by the
20inspector or inspectors to be relevant to the investigation, the inspector
or inspectors may require the person—

(a) to produce to the inspector or inspectors any relevant
documents relating to that matter,

(b) to attend before the inspector or inspectors, and

(c) 25otherwise to give the inspector or inspectors all assistance in
connection with the investigation which the person is
reasonably able to give.

(4) “Relevant documents” means—

(a) the register of the names and addresses of the trade union’s
30members, and

(b) documents of any other description which the inspector or
inspectors consider may be relevant to whether the union has
failed to comply with any of the requirements of section 24(1).

(5) Where a person who is not a member of the Certification Officer’s staff
35is appointed as an inspector under this section, there is incorporated in
the appointment the duty of confidentiality as respects the register of
the names and addresses of the trade union’s members.

(6) The duty of confidentiality as respects that register is a duty which the
inspector owes to the Certification Officer—

(a) 40not to disclose any name or address in the register of the names
and addresses of the union’s members except in permitted
circumstances, and

(b) to take all reasonable steps to secure that there is no disclosure
of any such name or address by another person except in
45permitted circumstances.

(7) The circumstances in which disclosure of a member’s name or address
is permitted are—

(a) where the member consents,

(b) where it is required or requested by the Certification Officer for
the purposes of the discharge of any of the Officer’s functions,

(c) where it is required for the purposes of the discharge of any of
5the functions of the inspector or any other inspector appointed
by the Officer,

(d) where it is required for the purposes of the discharge of any of
the functions of an assurer appointed under section 24ZB, or

(e) where it is required for the purposes of the investigation of
10crime or criminal proceedings.

(8) For supplementary provision, see section 24ZK.

24ZJ Inspectors’ reports etc

(1) An inspector or inspectors appointed under section 24ZI—

(a) may make interim reports to the Certification Officer,

(b) 15must make such reports if so directed by the Officer, and

(c) on the conclusion of the investigation, must make a final report
to the Officer.

(2) A report under subsection (1) must be in writing.

(3) An inspector or inspectors—

(a) 20may at any time inform the Certification Officer of any matters
coming to their knowledge as a result of the investigation, and

(b) must do so if the Officer so directs.

(4) The Certification Officer may direct an inspector or inspectors—

(a) to take no further steps in the investigation, or

(b) 25to take only such further steps as are specified in the direction.

(5) Where such a direction is made, the inspector or inspectors are not
required under subsection (1)(c) to make a final report to the
Certification Officer unless the Officer so directs.

24ZK Sections 24ZH and 24ZI: supplementary

(1) 30Nothing in section 24ZH or 24ZI requires or authorises anyone to
require—

(a) the disclosure by a person of information which the person
would in an action in the court be entitled to refuse to disclose
on grounds of legal professional privilege, or

(b) 35the production by a person of a document which the person
would in such an action be entitled to refuse to produce on such
grounds.

(2) But a lawyer may be required under section 24ZH or 24ZI to disclose
the name and address of the lawyer’s client.

(3) 40A person is not excused from providing an explanation or making a
statement in compliance with a requirement imposed under section
24ZH(5) or 24ZI(3) on the ground that to do so would tend to expose
the person to proceedings for an offence.

(4) But an explanation so provided or a statement so made may only be
45used in evidence against the person by whom it is provided or made on

a prosecution for an offence where, in giving evidence, the person
makes a statement inconsistent with it.

(5) In this section and in sections 24ZH and 24ZI—

(a) references to documents include information recorded in any
5form, and

(b) in relation to information recorded otherwise than in legible
form, references to its production are to the production of a
copy of the information in legible form.”

(3) In section 24A(4)(b) (securing confidentiality of register during ballots), after
10“where it is” insert “required or”.

39 Enforcement

(1) The Trade Union and Labour Relations (Consolidation) Act 1992 is amended
as follows.

(2) After section 24A (securing confidentiality of register during ballots), insert—

“24B 15Enforcement of sections 24 to 24ZC by Certification Officer

(1) Where the Certification Officer is satisfied that a trade union has failed
to comply with any of the requirements of section 24, 24ZA, 24ZB or
24ZC (duties etc relating to the register of members), the Officer may
make a declaration to that effect.

(2) 20Before making such a declaration, the Certification Officer—

(a) may make such enquiries as the Officer thinks fit,

(b) must give the union an opportunity to make written
representations, and

(c) may give the union an opportunity to make oral
25representations.

(3) If the Certification Officer makes a declaration it must specify the
provisions with which the union has failed to comply.

(4) Where the Certification Officer makes a declaration and is satisfied—

(a) that steps have been taken by the union with a view to
30remedying the declared failure or securing that a failure of the
same or any similar kind does not occur in future, or

(b) that the union has agreed to take such steps,

the Officer must specify those steps in the declaration.

(5) Where a declaration is made, the Certification Officer must give
35reasons in writing for making the declaration.

(6) Where a declaration is made, the Certification Officer must also make
an enforcement order unless the Officer considers that to do so would
be inappropriate.

(7) An “enforcement order” is an order imposing on the union one or both
40of the following requirements—

(a) to take such steps to remedy the declared failure, within such
period, as may be specified in the order;

(b) to abstain from such acts as may be so specified with a view to
securing that a failure of the same or a similar kind does not
occur in future.

(8) Where, having given the union an opportunity to make written
5representations under subsection (2)(b), the Certification Officer
determines not to make a declaration under subsection (1), the Officer
must give the union notice in writing of that determination.

(9) Where the Certification Officer requests a person to provide
information to the Officer in connection with enquiries under this
10section, the Officer must specify the date by which that information is
to be provided.

(10) Where the information is not provided by the specified date, the
Certification Officer must proceed with determining whether to make
a declaration under subsection (1) unless the Officer considers that it
15would be inappropriate to do so.

(11) A declaration made by the Certification Officer under this section may
be relied on as if it were a declaration made by the court.

(12) An enforcement order made by the Certification Officer under this
section may be enforced in the same way as an order of the court.

(13) 20Where an enforcement order has been made, a person who is a member
of the union and was a member at the time it was made is entitled to
enforce obedience to the order as if the order had been made on an
application by that person.

24C Enforcement of sections 24ZH and 24ZI by Certification Officer

(1) 25Where the Certification Officer is satisfied that a trade union or any
other person has failed to comply with any requirement imposed
under—

(a) section 24ZH (power of Certification Officer to require
production of documents etc), or

(b) 30section 24ZI (investigations by inspectors),

the Officer may make an order requiring the trade union or person to
comply with the requirement.

(2) Before making such an order, the Certification Officer must give the
trade union or person an opportunity to be heard.

(3) 35In the case of a failure to comply with a requirement imposed under
section 24ZH or 24ZI to produce a document, the Certification Officer
may make an order only if the Officer is satisfied that—

(a) the document is in the possession of the union or person, and

(b) it is reasonably practicable for the union or person to comply
40with the requirement.

(4) In the case of a failure to comply with any other requirement imposed
under section 24ZH or 24ZI, the Certification Officer may make an
order only if the Officer is satisfied that it is reasonably practicable for
the union or person to comply with the requirement.

(5) 45The order must specify—

(a) the requirement with which the trade union or person has failed
to comply, and

(b) the date by which the trade union or person must comply.

(6) An order made by the Certification Officer under this section may be
5enforced in the same way as an order of the court.”

(3) In section 24(6) (remedies for failure to comply with that section), after “court)”
insert “; see also the powers of the Certification Officer under section 24B to
make a declaration and an enforcement order”.

(4) In section 25 (remedy for failure: application to the Certification Officer), after
10subsection (6) insert—

“(6A) For the purposes of subsection (6) the circumstances in which it is not
reasonably practicable to determine an application within that time
frame may include, in particular, where delay is caused by the exercise
of the powers under section 24ZH or 24ZI (powers to require
15production of documents etc and to appoint inspectors).”

(5) In section 26 (remedy for failure: application to the court), after subsection (8)
insert—

“(9) Where a person applies under this section in relation to an alleged
failure and the Certification Officer has made a declaration regarding
20that failure under section 24B, the court must have due regard to the
declaration and any order, observations or reasons made or given by
the Officer under that section regarding that failure and brought to the
court’s notice.”

(6) In section 45D (appeals from Certification Officer), after “section” insert “24B, 24C,”.

(7) 25In section 256(1) (procedure before the Certification Officer)—

(a) omit the “or” at the end of paragraph (a), and

(b) in paragraph (b) after “matter” insert “, or

(c) determining whether to make a declaration or
enforcement order under section 24B or an order under
30section 24C”.

Part 4 Supplementary

40 Financial provision

There is to be paid out of money provided by Parliament—

(a) 35any expenditure incurred by a Minister of the Crown under or by virtue
of this Act, and

(b) any increase attributable to this Act in the sums payable under any
other Act out of money so provided.

41 Commencement

(1) 40The following provisions of this Act come into force on such day as the
Minister may appoint by order made by statutory instrument—

(a) Part 1, except as mentioned in subsection (3)(a);

(b) in Part 2—

(i) section 30 (extension of power to vary specify sums);

(ii) section 31 (notification requirements for recognised third
5parties);

(iii) section 34 (third party expenditure in respect of candidates);

(iv) section 35 (functions of Electoral Commission with respect to
compliance);

(c) Part 3, except as mentioned in subsection (3)(c).

(2) 10An order under subsection (1)—

(a) may appoint different days for different purposes, and

(b) may make transitional, transitory or saving provision.

(3) The following provisions of this Act come into force on the day on which the
Act is passed—

(a) 15any provision of Part 1 which confers power to make regulations, for
the purposes of the exercise of that power;

(b) the provisions of Part 2 not mentioned in subsection (1)(b);

(c) section 37, for the purposes of the exercise of the power to make
subordinate legislation conferred by section 24ZB(3) of the Trade Union
20and Labour Relations (Consolidation) Act 1992 (which is inserted by
that section);

(d) Part 4.

(4) Section 42 contains transitional provision relating to the commencement of the
provisions to which subsection (3)(b) applies.

(5) 25“The Minister” means—

(a) for the purposes of subsection (1)(a) and (b), the Secretary of State or the
Lord President of the Council;

(b) for the purposes of subsection (1)(c), the Secretary of State.

42 Transitional provision

(1) 30The amendments made by Part 2 which in accordance with section 41(3)(b)
come into force on the day on which this Act is passed have effect only in
relation to regulated periods beginning after that day.

(2) In this section “regulated period” means a period in relation to which any limit
is imposed by—

(a) 35Schedule 9 to PPERA 2000 (limits on campaign expenditure), or

(b) Schedule 10 to that Act (limits on controlled expenditure).

(3) Subsection (4) applies if, apart from that subsection, the day on which this Act
is passed would fall within a period in relation to which one or more limits are
imposed by—

(a) 40paragraph 11 of Schedule 9 to PPERA 2000 (limit on campaign
expenditure where combination of parliamentary election and other
election), or

(b) paragraph 11 of Schedule 10 to that Act (limit on controlled
expenditure where combination of parliamentary election and other
45election).