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

(a) in 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
5incurred 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).

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

10

30 15Targeted 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) See section 94E (expenditure by or on behalf of recognised third party
20targeted 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) provision modifying subsection (2)(a)(i) in its application to
25such 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
the party by virtue of section 94E(2) (expenditure by or on
30behalf of recognised third party targeted at a registered party),
any declaration falling to be made with respect to that
expenditure in accordance with section 94E(5).”

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

(5) 35In 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
40circumstances in which an amount of campaign expenditure is treated
as incurred by a registered party under section 94E(2).”

(6) In 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 “section 94A” (as inserted by section 27) insert “, sections
94C to 94G”.

(8) After section 94A (as inserted by section 27) insert—

5“Financial limits on targeted controlled expenditure

94B Overview of sections 94C to 94G

(1) Sections 94C to 94G 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
10registered party.

(2) Section 94C 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 94D makes provision about the consequences where controlled
15expenditure 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 94E makes provision about the consequences where controlled
expenditure targeted at a registered party is incurred by or on behalf of
20a recognised third party in excess of a limit with authorisation from the
registered party.

(5) Section 94F 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) 25Section 94G makes provision about the meaning of references to
expenditure that “exceeds” a targeted expenditure limit or cap.

94C 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) 30intended 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) 35is incurred during a qualifying regulated period in England,
Scotland, Wales or Northern Ireland, and

(b) is 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
40(periods involving parliamentary general elections).

(4) The targeted expenditure limit applying to controlled expenditure
incurred 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) for any other qualifying regulated period, the relevant
5proportion of the limit determined in accordance with
paragraph (a).

(5) In subsection (4)(a) “maximum campaign expenditure limit” has the
meaning given by section 94(10).

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

10

(7) This section applies for the purposes of sections 94D to 94G.

94D Unauthorised expenditure in excess of targeted expenditure limit

(1) This section applies if—

(a) controlled expenditure which is targeted at a particular
20registered 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) at the time the expenditure is incurred—

(i) 25the 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
extent).

(2) 30If 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
known that the expenditure would be incurred in excess of the
35targeted 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
40limit.

94E 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
45behalf 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
5at 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) 10it 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
15of 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
20specified 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
25the 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 94F.

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

(a) 30the 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).

94F 35Authorisation

(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) An authorisation—

(a) 40must 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) may specify a cap on the amount of expenditure authorised.

(3) 45An 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
under section 89 (register of notifications)—

(a) the fact that the registered party has given the authorisation,
5and

(b) the information specified in it.

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

(6) A withdrawal of an authorisation—

(a) 10must 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
been given to the Commission by the registered party.

(8) The Commission must, as soon as is reasonably practicable after
15receiving 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
registered party, means—

(a) the treasurer of the party, or

(b) 20a deputy treasurer of the party.

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

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

(a) 25a targeted expenditure limit, or

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

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

(2) 30For 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
35behalf of the third party during the qualifying regulated period
in that part of the United Kingdom.”

(9) In 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 94D(2)
10and (3) and 94E(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.

31 15Extension 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) 20The Secretary of State may by order vary any percentage for the time
being specified in—

(a) section 94(5ZA), 94C(4) or 96(2)(aa), or

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

(6) The Secretary of State may make an order under subsection (5) only if
25it gives effect to a recommendation of the Commission.”

Recognised third parties, information and reports

32 Recognised third parties

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

(2) 30In subsection (2), after paragraph (c) insert—

“(ca) a body incorporated by Royal Charter which does not fall
within any of those paragraphs of section 54(2),

(cb) a charitable incorporated organisation within the meaning of
Part 11 of the Charities Act 2011 or within the meaning of the
35Charities Act (Northern Ireland) 2008,

(cc) a Scottish charitable incorporated organisation within the
meaning of Chapter 7 of Part 1 of the Charities and Trustee
Investment (Scotland) Act 2005 (asp 10)2005 (asp 10),

(cd) a partnership constituted under the law of Scotland which
40carries on business in the United Kingdom,”.

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

insert—

“(ia) in the case of a body falling within any of paragraphs (b)
and (d) to (h) of section 54(2), the names of the relevant
participators in relation to the body (see subsection
5(3B)),”.

(4) After subsection (3)(c) insert—

“(d) if given by a body falling within any of paragraphs (ca) to (cd)
of subsection (2), state—

(i) the relevant details in relation to the body (see
10subsection (3C)), and

(ii) the name of the person or officer who will be responsible
for compliance on the part of the body with the
provisions of Chapter 2,

and be signed by the body’s secretary or a person who acts in a
15similar capacity in relation to the body.”

(5) In subsection (3A)—

(a) for “or (c)(ii)” (in both places) substitute “, (c)(ii) or (d)(ii)”;

(b) after “(3)(c)” insert “or (d)”.

(6) After subsection (3A) insert—

“(3B) 20For the purposes of subsection (3)(c), the “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
25unions), the body’s officers (within the meaning of the Trade
Union 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) 30in the case of a body falling within section 54(2)(f) (limited
liability 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
35body’s committee of management;

(ii) otherwise, 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) 40where the body has more than 15 members and has
officers or a governing body, those officers or the
members of that governing body;

(ii) otherwise, the body’s members.

(3C) For the purposes of subsection (3)(d), the “relevant details” in relation
45to a body are—

(a) in the case of a body falling within subsection (2)(ca) (body
incorporated by Royal Charter)—

(i) the name of the body,

(ii) the address of its main office in the United Kingdom,
and

(iii) the names of its officers or the members of its governing
body;

(b) 5in the case of a body falling within subsection (2)(cb) or (cc)
(charitable incorporated organisation)—

(i) the name of the body,

(ii) the address of its principal office, and

(iii) the names of its charity trustees within the meaning of
10the Charities Act 2011, the Charities Act (Northern
Ireland) 2008 or the Charities and Trustee Investment
(Scotland) Act 2005 (asp 10)2005 (asp 10);

(c) in the case of a body falling within subsection (2)(cd) (Scottish
partnership)—

(i) 15the name of the body,

(ii) the address of its main office in the United Kingdom,
and

(iii) the names of the partners.”

(7) In section 85(7)(c) of that Act (definition of “responsible person”), after
20“88(3)(c)(ii)” insert “or (d)(ii)”.

33 Reporting of donations to recognised third parties

(1) The Political Parties, Elections and Referendums Act 2000 is amended in
accordance with subsections (2) to (8).

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

25“Quarterly and weekly reports of donations to recognised third parties

Quarterly donation reports

95A (1) The responsible person in relation to a recognised third party must, in
respect of each reporting period that falls within a pre-dissolution
period, prepare a report about reportable donations (“a quarterly
30report”).

(2) The reporting periods are—

(a) the period of 3 months beginning with the first day of the pre-
dissolution period,

(b) each succeeding period of 3 months falling within the pre-
35dissolution period, and

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

(3) A “pre-dissolution period” means a period—

(a) beginning with the first day of a qualifying regulated period,
and

(b) 40ending with the day before the day (or the last day) during that
qualifying regulated period on which Parliament is dissolved.

(4) 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) other than a period

including the date of the poll for an early parliamentary general
election.

(5) An “early parliamentary general election” is a parliamentary general
election the date of the poll for which is appointed under section 2(7) of
5the Fixed-term Parliaments Act 2011.

(6) A quarterly report must comply with the requirements of Schedule
11A.

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

(a) 10is received by the recognised third party in respect of the
relevant election or elections the poll or polls for which take
place 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
15party during the reporting period.

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

(9) The report must be accompanied by a declaration signed by the
20responsible person stating that, to the best of that person’s knowledge
and belief—

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

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

(10) This section does not require the preparation of a quarterly report in
respect of a reporting period if no reportable donations are accepted, or
30dealt with, as described in subsection (7)(b), by the recognised third
party during that period.

(11) 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.

Weekly donation reports during general election periods

95B (1) The responsible person in relation to a recognised third party must, in
respect of each reporting period that falls within a general election
period, prepare a report about substantial donations (“a weekly
40report”).

(2) The reporting periods are—

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

(b) each succeeding period of 7 days falling within the general
45election period, and

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

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

(a) beginning with the day on which Parliament is dissolved for a
parliamentary general election, and

(b) ending with the date during a qualifying regulated period
5which is the date of the poll for that election.

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

(5) A “substantial donation” means a relevant donation of a substantial
value which is received by the recognised third party during the
reporting period in respect of the relevant election or elections the poll
10or polls for which take place during the qualifying regulated 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
than £7,500.

(7) A weekly report must be delivered to the Commission by the
15responsible 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
responsible person stating that, to the best of that person’s knowledge
and belief, no substantial donations have been received by the
20recognised 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) This section does not require the preparation of a weekly report in
respect of a reporting period if no substantial donations are received by
25the recognised third party during that period.

(10) In this section—

• “qualifying regulated period” means 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);

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

(11) 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) a recognised Gibraltar third party.

35Related offences

95C (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(8) or 95B(7),

(b) 40delivers a quarterly or weekly report to the Commission
without the accompanying declaration required under section
95A(9) or 95B(8), or

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