Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill (HL Bill 73)

(b) specify steps that the Registrar must take before imposing a penalty;

(c) set a minimum for the period which must be specified under section
15(2)(d) or 16(2)(d);

(d) require other matters to be specified in a notice under either of those
5sections;

(e) specify a maximum period that may elapse between the service of a
notice under section 15 and the service of a penalty notice under section
16;

(f) provide for the reviewing of a decision to impose a penalty;

(g) 10make provision about the variation or cancellation under section 16(7)
of penalty notices;

(h) impose duties on the Registrar about the keeping of accounts and other
records in relation to penalties;

(i) allow for the charging of interest, or an additional penalty, if a penalty
15is paid late.

Supplementary

21 Guidance

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

(2) 20The 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
25consultant 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’s entry from the register;

(d) as to the circumstances in which the Registrar would consider it
30appropriate to impose a civil penalty;

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

(3) The Registrar may publish—

(a) revisions to any guidance published under this section;

(b) replacement guidance.

(4) 35Publication under this section is to be—

(a) on a website, and

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

22 Charges

(1) The Registrar may impose charges for or in connection with the making,
40updating and maintenance of entries in the register.

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

(3) 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 (whether or not
those costs are directly connected with the keeping of the register).

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

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

23 Power to make further provision

(1) Regulations may make such provision as the Minister considers appropriate
10for the purposes of carrying into effect any provision of this Part.

(2) Regulations under subsection (1) may in particular make provision (or further
provision) 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) 15the exercise of the Registrar’s powers under section 6(6);

(d) the removal of entries in other circumstances;

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

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

(g) 20the cancellation of notices under section 9(7).

(3) Regulations under subsection (1) may make provision permitting or requiring
the Commissioners for Her Majesty’s Revenue and Customs to supply to the
Registrar, on request, such information regarding any person who is, or is
required to be, registered under the Value Added Tax Act 1994 as is specified
25in the regulations.

24 Regulations

(1) Any 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 considers appropriate,
30including provision amending or modifying the provisions of this Part.

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

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

(5) A statutory instrument containing any of the following regulations may not be
35made unless a draft of the instrument has been laid before, and approved by a
resolution of, each House of Parliament—

(a) regulations under section 4(5)(a) or 5(4);

(b) the first regulations to be made under each of sections 11(3) and 17(3);

(c) regulations under this Part which amend or modify the provisions of
40this Part.

(6) Any 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—

• “consultant lobbyist” means a person who carries on the business of
  consultant lobbying;

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

• to “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;

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

• “payment”, “in return for payment” and references to receiving payment
  are to be read in accordance with paragraphs 5 to 7 of Schedule 1;

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

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

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

• “the Tribunal” means—

  (a)

  20the First-tier Tribunal, or

  (b)

  in any case where it is determined by or under Tribunal
  Procedure Rules that the appeal is to be heard by the Upper
  Tribunal, that Tribunal.

(2) Where the Registrar is required or permitted to serve a notice on a person, this
25is 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) if the person is an individual, by delivering it in person, by sending it
30by 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;

(but this does not prevent the Registrar from sending additional copies of the
35notice by whatever means the Registrar considers appropriate).

Part 2 Non-party campaigning etc

Controlled expenditure

26 Meaning of “controlled expenditure”

(1) 40Section 85 of the Political Parties, Elections and Referendums Act 2000
(controlled expenditure by third parties) is amended in accordance with
subsections (2) to (6).

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

“(a) 45the expenses fall within Part 1 of Schedule 8A, and

(b) the expenditure can reasonably be regarded as intended to
promote or procure electoral success at any relevant election
for—

(i) one or more particular registered parties,

(ii) 5one 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
opinions or who advocate (or do not advocate)
10particular policies or who otherwise fall within a
particular category of candidates.”

(3) Omit subsection (3).

(4) In subsection (4)—

(a) in the opening words, for “(3)” substitute “(2)(b)”;

(b) 15in paragraph (b)—

(i) for “paragraph (a) or (as the case may be) paragraph (b) of that
subsection” substitute “that provision”;

(ii) omit “or (as the case may be) by prejudicing the standing with
the electorate of other parties or candidates”;

(iii) 20at the end insert “and”;

(c) for the words after 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
25candidate.”

(5) After subsection (4) insert—

“(4A) In determining whether expenditure can reasonably be regarded as
intended to promote or procure electoral success as mentioned in
subsection (2)(b), it is immaterial that it can reasonably be regarded as
30intended to achieve any other purpose as well.”

(6) In subsection (9), for “subsection (3)” substitute “that subsection”.

(7) In section 87 of that Act (expenditure by third parties which is not controlled
expenditure)—

(a) in subsection (1), omit paragraph (a) and the “or” at the end of it;

(b) 35omit subsection (2).

(8) Section 94 of that Act (limits on controlled expenditure by third parties) is
amended in accordance with subsections (9) and (10).

(9) After subsection (4) insert—

“(4A) It is a defence for any person or third party charged with an offence
40under subsection (2) or (4) to show—

(a) that any code of practice for the time being issued under
paragraph 2 of Schedule 8A was complied with in determining
whether any expenditure is controlled expenditure for the
purposes of this Part, and

(b) 45that the person or third party’s acts or omissions would not
have amounted to an offence on the basis of the controlled
expenditure as determined in accordance with the code.”

(10) In subsection (6)(b)—

(a) for “in connection with the production or publication of election
material which” substitute “and the expenditure”;

(b) for “85(3)” substitute “85(2)(b)”.

(11) 5In section 143 of that Act (details to appear on election material)—

(a) in subsections (2A) and (2B)—

(i) for “, procuring or enhancing” substitute “or procuring”;

(ii) omit “or standing”;

(b) in subsection (11), for the definition of “election material” substitute—

• 10““election material” has the meaning given by section
  143A;”.

(12) After section 143 of that Act insert—

“143A Meaning of “election material”

(1) “Election material” means material which can reasonably be regarded
15as intended to promote or procure electoral success at any relevant
election for—

(a) one or more particular registered parties,

(b) one or more registered parties who advocate (or do not
advocate) particular policies or who otherwise fall within a
20particular category of such parties, or

(c) candidates who hold (or do not hold) particular opinions or
who advocate (or do not advocate) particular policies or who
otherwise fall within a particular category of candidates.

(2) For the purposes of subsection (1)—

(a) 25the reference to electoral success at any relevant election is a
reference—

(i) in relation to a registered party, to the return at any such
election of candidates standing in the name of the party
or included in a list of candidates submitted by the party
30in connection with the election, and

(ii) in relation to candidates, to their return at any such
election,

(b) the reference to doing any of the things mentioned in that
subsection includes doing so by prejudicing the electoral
35prospects at the election of other parties or candidates, and

(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.

(3) In determining whether material can reasonably be regarded as
40intended to promote or procure electoral success as mentioned in
subsection (1), it is immaterial that it can reasonably be regarded as
intended to achieve any other purpose as well.

(4) In this section—

• “candidate” includes a future candidate, whether identifiable or
  45not;

• “relevant election” has the same meaning as in Part 2 (see section
  22(5)).”

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

“(ja) paragraph 5 of Schedule 8A,”.

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

27 5Arrangements between third parties notified to the Electoral Commission

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

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

(a) after subsection (3) insert—

“(3A) 10For provision requiring certain controlled expenditure to be
disregarded in determining for the purposes of subsection (3)(a)
whether a limit is exceeded, see section 94A(5) (arrangements
between third parties notified to the Commission).”;

(b) in subsection (4), for “such a case” substitute “the case mentioned in
15subsection (3)”;

(c) in subsection (5A)—

(i) after “Subsections (3) to (5)” insert “and section 94A”;

(ii) for “those subsections” substitute “those provisions”;

(d) in subsections (8) and (10), after “the purposes of this section” insert “,
20section 94A”;

(e) in subsection (11)(a), after “this section” insert “and section 94A”.

(3) After section 94 insert—

“94A Arrangements between third parties notified to the Commission

(1) A recognised third party (“a lead campaigner”) may, at any time before
25the end of a regulated period, send a notice to the Commission—

(a) stating that the lead campaigner is party to an arrangement of
the kind mentioned in section 94(6), and

(b) identifying one or more third parties that—

(i) are parties to the arrangement, and

(ii) 30have agreed to be minor campaigners in relation to the
arrangement.

(2) A notice under subsection (1)—

(a) may not identify a third party as a minor campaigner if the third
party is a lead campaigner in relation to the same arrangement,
35and

(b) may not be sent by a recognised Gibraltar third party.

(3) On receipt of a notice under subsection (1) by the Commission, a third
party identified in the notice becomes “a minor campaigner” in relation
to the arrangement in question.

(4) 40Controlled expenditure that is incurred during the regulated period in
a part of the United Kingdom by or on behalf of a minor campaigner in
pursuance of the arrangement is to be treated for the purposes of
section 96 (returns as to controlled expenditure) as having also been
incurred during the period and in the part of the United Kingdom
45concerned by or on behalf of the lead campaigner.

(5) In determining for the purposes of section 94(3)(a) whether a limit is
exceeded by a third party in relation to a regulated period, controlled
expenditure incurred in a part of the United Kingdom is to be
disregarded if conditions A to C are met in relation to the expenditure.

(6) 5Condition A is that the expenditure—

(a) is incurred in pursuance of an arrangement that has been
notified to the Commission under subsection (1), and

(b) is, by virtue of section 94(6), treated for the purposes of section
94 and Schedule 10 as incurred by or on behalf of the third
10party.

(7) Condition B is that the third party is, at the time the expenditure is
incurred, a minor campaigner in relation to the arrangement.

(8) Condition C is that the total of the controlled expenditure incurred
during the regulated period in the part of the United Kingdom by or on
15behalf of the third party (disregarding any expenditure in relation to
which conditions A and B are met) does not exceed the limit for that
part mentioned in section 94(5).

(9) Section 94(6) applies for the purposes of subsection (8).”

28 Changes to existing limits

(1) 20Section 94 of the Political Parties, Elections and Referendums Act 2000 (limits
on controlled expenditure by third parties) is amended in accordance with
subsections (2) to (6).

(2) In subsection (3), for paragraph (a) (but not the “and” after it) substitute—

“(a) during a regulated period—

(i) 25any controlled expenditure is incurred in a part of the
United Kingdom by or on behalf of a third party in
excess of the limit for that part of the United Kingdom
mentioned in subsection (5), or

(ii) any controlled expenditure is incurred in a particular
30parliamentary constituency by or on behalf of a third
party in excess of the limit mentioned in subsection
(5ZA),”.

(3) In subsection (5)—

(a) in the opening words, for “(3)” substitute “(3)(a)(i)”;

(b) 35in paragraph (a), for “£10,000” substitute “£20,000”;

(c) in paragraph (b), for “£5,000” substitute “£10,000.”

(4) After subsection (5) insert—

“(5ZA) The limit referred to in subsection (3)(a)(ii) is 0.05% of the total of the
maximum campaign expenditure limits in England, Scotland, Wales
40and Northern Ireland.”

(5) In subsection (5A) for “(5)” substitute “(5ZA)”.

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

“(e) the “maximum campaign expenditure limit” in a part of the
45United Kingdom is the limit imposed by paragraph 3 of

Schedule 9 in relation to campaign expenditure incurred in the
relevant period (within the meaning of that paragraph) 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
5does not apply).”

(7) In Schedule 10 to that Act (limits on controlled expenditure by recognised third
parties), in paragraph 3(2), for paragraphs (a) to (d) substitute—

“(a) in relation to England, 2% of the maximum campaign
expenditure limit in England;

(b) 10in relation to Scotland, £20,000 plus 2% of the maximum
campaign expenditure limit in Scotland;

(c) in relation to Wales, £20,000 plus 2% of the maximum
campaign expenditure limit in Wales;

(d) in relation to Northern Ireland, £20,000 plus 2% of the
15maximum campaign expenditure limit in Northern Ireland.”

29 Constituency limits

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

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

(a) 20in subsection (1), after “Northern Ireland” insert “, or in particular
parliamentary constituencies,”;

(b) in subsection (2)—

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

(ii) 25after “part of the United Kingdom” (the second time it occurs)
insert “or parliamentary constituency”;

(c) in subsection (6)—

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

(ii) 30in the words after paragraph (b), after “part of the United
Kingdom” insert “or parliamentary constituency”;

(d) in subsection (10), after paragraph (e) (as inserted by section 28)
insert—

“(f) any reference to controlled expenditure being incurred
35in a parliamentary constituency shall be construed in
accordance with paragraph 2A of that Schedule.”

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

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

“(aa) a statement listing each constituency (if any) in which
40the controlled expenditure incurred by or on behalf of
the third party during that period exceeded 0.04% of the
total of the maximum campaign expenditure limits in
England, Scotland, Wales and Northern Ireland;

(ab) a statement showing, for each constituency listed under
45paragraph (aa), all payments made in respect of
controlled expenditure incurred by or on behalf of the
third party during that period in that constituency;”;

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

(4) Schedule 10 (limits on controlled expenditure) is amended in accordance with
subsections (5) to (9).

(5) After paragraph 2 insert—

“Attribution of expenditure to different parliamentary constituencies

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

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

(a) 10shall be attributed to those constituencies in equal
proportions, or

(b) shall be attributed solely to that constituency,

as the case may be.

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

(4) References in this Schedule to controlled expenditure “in” a
particular constituency are accordingly to controlled expenditure
20which is to be attributed to that constituency in accordance with this
paragraph.”

(6) After 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
25particular parliamentary constituency is 0.05% of the total of the
maximum campaign expenditure limits in England, Scotland, Wales
and Northern Ireland.”

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

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

(b) 30in 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
35particular parliamentary constituency is the relevant
proportion of the limit mentioned in paragraph 3(2A).

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

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

(e) after sub-paragraph (5) insert—

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

(a) the 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
10parliamentary constituency is the relevant proportion
of the limit mentioned in paragraph 3(2A), and

(b) the 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
15parliamentary constituency is the relevant proportion
of the limit mentioned in paragraph 3(2A).

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

(f) in sub-paragraphs (6) and (7), for “sub-paragraph (5)” substitute “sub-
25paragraphs (5) to (5B)”.

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

(a) in sub-paragraph (1)—

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

(ii) after “9(3)” insert “to (3B)”;

(iii) 30after “9(5)” insert “to (5B)”;

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

(c) after sub-paragraph (3) insert—

“(3A) The limit applying to controlled expenditure which is
incurred by or on behalf of the recognised third party during
35the combined 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—

(9) In paragraph 11 (combination of parliamentary general election and other
45election, or elections, falling within paragraphs 4 to 8)—