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

(2) The 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(9) or 95B(8).

Forfeiture

95D (1) 5The court may, on an application made by the Commission, order the
forfeiture 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(8) or 95B(7), or

(b) 10the delivery by the responsible person of a quarterly or weekly
report which fails to comply with a requirement of Schedule
11A,

was attributable to an intention on the part of any person to conceal the
existence or true amount of the donation.

(2) 15The standard of proof in proceedings on an application under this
section is that applicable to civil proceedings.

(3) A forfeiture order may be made under this section whether or not
proceedings are brought against any person for an offence connected
with the donation.

(4) 20In this section “the court” means—

(a) in relation to England and Wales, a magistrates’ court;

(b) in relation to Scotland, the sheriff;

(c) in relation to Northern Ireland, a court of summary jurisdiction.

(5) Proceedings on an application under this section to the sheriff are civil
25proceedings.

(6) Sections 59 and 60 (appeals etc against forfeiture orders) apply for the
purposes, or in connection with the operation, of this section in relation
to a recognised third party as they apply for the purposes, or in
connection with the operation, of section 58 in relation to a registered
30party.

(7) In this section “relevant donation” has the same meaning as in Schedule
11.

Sections 95A to 95D: supplementary

95E (1) This section applies where the requirements in section 95A or 95B to
35prepare quarterly or weekly reports in the case of a pre-dissolution
period or a general election period have effect in relation to a
recognised third party.

(2) If the third party’s notification under section 88(1) lapses during the
pre-dissolution period or the general election period, the requirements
40in section 95A or 95B (as the case may be) continue to have effect in
relation to the third party—

(a) in respect of the reporting period in which the notification
lapses, and

(b) in respect of each reporting period (if any) which preceded that
45period and which falls within the pre-dissolution period or the
general election period.

(3) If the third party’s notification under section 88(1) lapses at or after the
end of the pre-dissolution period or the general election period, the
requirements in section 95A or 95B (as the case may be) continue to
have effect in relation to the third party in the case of that period.

(4) 5In a case where subsection (2) or (3) applies, references in sections 95A
to 95D to the responsible person are to be read, for the purposes of, or
in connection with, the discharge of obligations of the responsible
person under those sections, as references to the person who was the
responsible person in relation to the recognised third party
10immediately before the notification lapsed.

(5) In this section—

(a) “pre-dissolution period” and “reporting period”, in relation to a
quarterly report, have the same meaning as in section 95A, and

(b) “general election period” and “reporting period”, in relation to
15a weekly report, have the same meaning as in section 95B.

Public inspection of reports

95F (1) Where the Commission receive a quarterly or weekly report under
section 95A or 95B, they must—

(a) as soon as reasonably practicable after receiving the report,
20make a copy of the report, and of any documents accompanying
it, available for public inspection, and

(b) keep any such copy available for public inspection for the
period for which the report or other document is kept by them.

(2) The Commission must secure that the copy of the report made available
25for public inspection does not include, in the case of any donation by an
individual, the donor’s address.

(3) At the end of the period of 2 years beginning with the date when any
report or other document mentioned in subsection (1) is received by the
Commission—

(a) 30they may cause the report or other document to be destroyed,
but

(b) if requested to do so by the responsible person in relation to the
third party concerned, they must arrange for the report or other
document to be returned to that person.”

(3) 35In section 149(6) (inspection of Commission’s registers etc), after paragraph (b)
insert—

“(ba) section 95F,”.

(4) In section 155(3) (power to vary specified sums), after paragraph (c) insert—

“(ca) section 95B(6);

(cb) 40Schedule 11A;”.

(5) In Schedule 1 (the Commission), in paragraph 3(3)(c), for the words from “the
register” to the end substitute “—

(i) the register of donations reported under Chapter 3 or
5 of Part 4,

(ii)(ii) 45any quarterly or weekly report delivered to the
Commission under section 95A or 95B, or

(iii) any statement of donations included in a return
delivered to the Commission under section 98 or
122;”.

(6) In Schedule 11 (control of donations to recognised third parties), in the heading
5to Part 3, after “reporting of donations” insert “in section 96 return”.

(7) Schedule 4 inserts a new Schedule 11A into that Act.

(8) In Schedule 20 (penalties) insert the following entries in the appropriate
places—

(9) 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) 30section 85 of that Act (removal of limit on certain fines on conviction by
magistrates’ court) applies in relation to the offences in section 95C(1)
and (2) 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) 35regulations described in section 85(11) of that Act may amend, repeal
or otherwise modify amendments made by this section.

(10) The Minister may by order made by statutory instrument make, in relation to
the content of quarterly or weekly reports under section 95A or 95B of the
Political Parties, Elections and Referendums Act 2000 (as inserted by this
40section), such provision as the Minister thinks appropriate which corresponds
or is similar to any of the amendments made to Part 3 of Schedule 11 to that Act
by the Political Parties and Elections Act 2009.

(11) An order under subsection (10) may—

(a) make provision amending this section or the Political Parties, Elections
45and Referendums Act 2000;

(b) make such consequential, supplementary, incidental, transitional or
saving provision as the Minister thinks appropriate;

(c) make different provision for different purposes.

(12) A statutory instrument containing an order under subsection (10) may not be
5made unless a draft of the instrument has been laid before, and approved by a
resolution of, each House of Parliament.

(13) In subsection (10) “the Minister” means the Secretary of State or the Lord
President of the Council.

34 Returns as to controlled expenditure

(1) 10Section 96 of the Political Parties, Elections and Referendums Act 2000 (returns
as to controlled expenditure) is amended as follows.

(2) For subsection (1) substitute—

“(1) Subsection (1A) applies where, during a regulated period, any
controlled expenditure is incurred by or on behalf of a recognised third
15party in a relevant part of the United Kingdom in excess of the limit for
that part mentioned in section 94(5).

(1A) The responsible person must prepare a return in respect of the
controlled expenditure incurred by or on behalf of the third party
during that period in each relevant part of the United Kingdom.”

(3) 20In subsection (7)—

(a) in the opening words, for “(1)(a)” substitute “(1A)”;

(b) in paragraph (a), omit “falling within subsection (1)(a)”.

35 Statements of accounts by recognised third parties

(1) Part 6 of the Political Parties, Elections and Referendums Act 2000 (controls
25relating to third party national election campaigns) is amended as follows.

(2) After section 96 (returns as to controlled expenditure) insert—

“96A Statement of accounts

(1) Where—

(a) a return falls to be prepared under section 96 in respect of
30controlled expenditure incurred by or on behalf of a recognised
third party during a regulated period, and

(b) the period is one in relation to which any limit is imposed by
paragraph 3, 9, 10 or 11 of Schedule 10 (periods involving
parliamentary general elections),

35the responsible person must, subject to subsections (8) and (9), also
prepare a statement of accounts in respect of the regulated period.

(2) A statement of accounts under this section must include—

(a) a statement of the income and expenditure of the third party for
the regulated period, and

(b) 40a statement of its assets and liabilities at the end of that period.

(3) A statement of accounts under this section must comply with such
requirements as to the form and contents of the statement as may be
prescribed by regulations made by the Commission.

(4) Regulations under subsection (3) may in particular—

(a) require any statement of accounts to be prepared in accordance
with such methods and principles as are specified or referred to
in the regulations;

(b) 5specify information which is to be provided by way of notes to
the accounts.

(5) Without prejudice to the generality of paragraph 22(7) of Schedule 1
(power to make different provision for different cases), regulations
under subsection (3) may impose different requirements according to
10which of the following bands the gross income or total expenditure of
a third party falls within—

(a) not exceeding £25,000;

(b) exceeding £25,000 but not £100,000;

(c) exceeding £100,000 but not £250,000;

(d) 15exceeding £250,000.

(6) The Secretary of State may by order amend subsection (5) by varying
the number of bands set out in it.

(7) The Secretary of State may not make an order under subsection (6)
except to give effect to a recommendation of the Commission.

(8) 20This section does not apply if the third party is—

(a) an individual, or

(b) a recognised Gibraltar third party.

(9) This section does not apply to a third party in relation to a regulated
period if the Commission are satisfied—

(a) 25that a statement or statements prepared or to be prepared by the
third party under any enactment contains or will contain the
information required by subsection (2) or equivalent
information, and

(b) that the Commission are, or will be, able to inspect that
30statement or those statements.

(10) Equivalent information is—

(a) a statement or statements of the income and expenditure for a
period or periods other than the regulated period, or

(b) a statement or statements of assets and liabilities at a date or
35dates other than the end of that period,

but which in the Commission’s opinion gives a sufficient indication of
the third party’s accounts for, or at the end of, the regulated period.

(11) Where section 96(7) (lapse of notification) applies to the preparation of
a return—

(a) 40the reference to the responsible person in subsection (1) of this
section is to be read as a reference to the person described in
section 96(7)(b), and

(b) for the purposes of, or in connection with, the discharge of
obligations of the responsible person under sections 98 and 99A
45in relation to a statement of accounts under this section,
references to the responsible person are to be read as references
to that person.

(12) In this section and section 97 “gross income” means gross recorded
income from all sources.”

(3) In section 97 (auditor’s report on return)—

(a) after subsection (1) insert—

“(1A) 5A report must be prepared by a qualified auditor on any
statement of accounts prepared under section 96A in respect of
a regulated period, if—

(a) a report falls to be prepared under subsection (1) on the
return mentioned in section 96A(1)(a), or

(b) 10during the regulated period the gross income or total
expenditure of the third party exceeds £250,000.”;

(b) in subsection (2), after “subsection (1)” insert “or (1A)”;

(c) in the heading, at the end insert “or statement of accounts”.

(4) In section 98 (delivery of returns to the Commission), after subsection (2)
15insert—

“(2A) Where a statement of accounts falls to be prepared under section 96A,
the responsible person must deliver—

(a) the statement, and

(b) if an auditor’s report on the statement falls to be prepared
20under section 97(1A), that report,

to the Commission before the end of the period of 6 months beginning
with the end of the period under subsection (1) or (2) for the delivery of
the relevant section 96 return.

(2B) “The relevant section 96 return” means the return mentioned in section
2596A(1)(a) which gives rise to the duty to prepare the statement of
accounts.”

(5) In section 98(4) (offences)—

(a) after paragraph (a) insert—

“(aa) fails to comply with the requirements of subsection (2A)
30in relation to any statement or report to which that
subsection applies; or”;

(b) after paragraph (b) insert—

“(ba) delivers a statement which does not comply with the
requirements of section 96A(2) or (3); or”.

(6) 35After section 99 (declaration by responsible person as to return under section
96) insert—

“99A Declaration by responsible person as to statement of accounts under
section 96A

(1) Each statement of accounts prepared under section 96A must, when
40delivered to the Commission, be accompanied by a declaration which
complies with subsection (2) and is signed by the responsible person.

(2) The declaration must state—

(a) that the responsible person has examined the statement in
question; and

(b) 45that to the best of that person’s knowledge and belief it is a
complete and correct statement of accounts as required by law.

(3) A person commits an offence if—

(a) that person knowingly or recklessly makes a false declaration
under this section; or

(b) subsection (1) is contravened without reasonable excuse at a
5time when that person is the responsible person in the case of
the recognised third party to which the statement of accounts
relates.”

(7) In section 100 (public inspection of returns under section 96), after subsection
(3) insert—

“(4) 10Where a statement of accounts is delivered under section 98(2A), this
section applies as if the statement and any documents accompanying
it—

(a) were documents accompanying the relevant section 96 return,
and

(b) 15(for the purposes of subsection (3)) were received by the
Commission when the return was received.

(5) In subsection (4)(a), “the relevant section 96 return” has the meaning
given by section 98(2B).”

(8) In Schedule 20 (penalties) insert these entries in the appropriate places—

(9) 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 section 98(4)(aa)
40and (ba) and 99A(3) 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.

Miscellaneous

36 Third party expenditure in respect of candidates

(1) 5In section 75 of the Representation of the People Act 1983 (prohibition of
expenses not authorised by election agent), in subsection (1ZA)(a) (limit on
third party expenditure on candidate at parliamentary election), for “£500”
substitute “£700”.

(2) After that section insert—

“75ZA 10 Return of permitted expenditure: power to require return

(1) The returning officer or the Electoral Commission may, at any time
during the period of 6 months beginning with the date of the poll at a
parliamentary election, request a relevant person to deliver to the
officer or Commission a return of permitted expenditure in relation to
15a candidate at the election who is specified in the request.

(2) “Relevant person” means a person who—

(a) is not required to deliver a return under section 75(2) in relation
to the candidate, and

(b) is not the candidate, the candidate’s election agent, or a person
20engaged or employed for payment or promise of payment by
the candidate or the candidate’s election agent.

(3) “Return of permitted expenditure” means a return—

(a) showing all permitted expenses incurred by the person in
relation to the candidate, or

(b) 25stating that the person incurred no such expenses or that the
total such expenses incurred by the person was £200 or less.

(4) “Permitted expense”, in relation to a candidate, means an expense
incurred by the person in respect of the candidate which, if the person
had been required to deliver a return under section 75(2) in relation to
30the candidate, would have been required to be included in that return.

75ZB Return of permitted expenditure: compliance and sanctions

(1) A person must comply with a request under section 75ZA(1) within the
period of 21 days beginning with the day on which the request is
received.

(2) 35A return of permitted expenditure must be accompanied by a
declaration made by the person (or in the case of an association or body
of persons, by a director, general manager, secretary or other similar
officer of the association or body)—

(a) verifying the return, and

(b) 40in the case of a return of the kind mentioned in section
75ZA(3)(a), giving particulars of the matters for which the
expenses were incurred.

(3) A person who fails to deliver a return or declaration in accordance with
this section is guilty of an illegal practice.

(4) A person who knowingly makes a false declaration under subsection
(2) is guilty of a corrupt practice.

(5) The court before whom a person is convicted under subsection (3) or (4)
may, if they think it just in the special circumstances of the case,
5mitigate or entirely remit any incapacity imposed by virtue of section
173.

(6) Where any act or omission of an association or body of persons,
corporate or unincorporate, is an offence declared to be a corrupt or
illegal practice by this section, any person who at the time of the act or
10omission was a director, general manager, secretary or other similar
officer of the association or body, or was purporting to act in any such
capacity, shall be deemed to be guilty of that offence, unless he
proves—

(a) that the act or omission took place without his consent or
15connivance, and

(b) that he exercised all such diligence to prevent the commission
of the offence as he ought to have exercised having regard to the
nature of his functions in that capacity and to all the
circumstances.”

(3) 20If 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 section 75ZB(3)
and (4) of the Representation of the People Act 1983 (as inserted by this
25section) 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.

37 Candidate’s personal expenses not to count for local election expenses limit
30in England and Wales

(1) In section 76(5) of the RPA 1983 (exclusion of personal expenses from
limitation on election expenses), after “subsection (1A) above)” insert “or a
local government election in England or Wales”.

(2) Subsection (3) applies where, before the relevant date, an enactment—

(a) 35provides that section 76 of the RPA 1983 is to have effect in relation to
an election of any description as it has effect in relation to a local
government election in England or Wales, or

(b) otherwise makes provision (however expressed) to the effect that that
section applies to an election of any description as it applies to a local
40government election in England and Wales.

(3) If the date of the poll at an election of that description is on or after the relevant
date, section 76 of the RPA 1983 applies to the election as amended by
subsection (1).

(4) In this section—

• 45“the RPA 1983” means the Representation of the People Act 1983,

• “the relevant date” means the date on which the amendment made by
  subsection (1) comes into force, and

Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration BillPage 39

• “an enactment” means an Act of Parliament or any subordinate legislation
  (within the meaning of the Interpretation Act 1978).

38 Functions of Electoral Commission with respect to compliance

(1) Section 145 of the Political Parties, Elections and Referendums Act 2000
5(general function of Commission with respect to compliance with controls
imposed by the Act etc) is amended in accordance with subsections (2) to (4).

(2) In the heading, for “General function” substitute “Duties”.

(3) In subsection (1)—

(a) for the words before paragraph (a) substitute “The Commission must
10monitor, and take all reasonable steps to secure, compliance with—”;

(b) in paragraph (a), for “Parts III to VII” substitute “—

(i) sections 24, 31 and 34,

(ii) Parts 3 to 7, and

(iii) sections 143 and 148”.

(4) 15After subsection (6A) insert—

“(6B) Each report by the Commission under paragraph 20 of Schedule 1 shall
set out the steps the Commission have taken during the year in
question to secure compliance with the restrictions and other
requirements mentioned in subsection (1).”

(5) 20In consequence of the amendment made by subsection (3)(a), omit section 1(2)
of the Political Parties and Elections Act 2009.

39 Post-election review

(1) The Minister must, within the period of 12 months beginning with the day on
which this Act is passed, appoint a person to conduct a review of the operation
25of Part 6 of the Political Parties, Elections and Referendums Act 2000 in relation
to the first relevant parliamentary general election.

(2) The “first relevant parliamentary general election” is the first parliamentary
general election to be held after the beginning of the first Part 6 regulated
period in relation to which one or more of the amendments made by this Part
30mentioned in section 46(1) have effect.

(3) A “Part 6 regulated period” is a regulated period within the meaning given by
section 46(2)(b).

(4) The Minister may specify matters which the review must, in particular,
consider.

(5) 35On completion of the review, the appointed person must—

(a) make a written report on the review, and

(b) provide a copy of the report to the Minister.

(6) The Minister must—

(a) lay a copy of the report before Parliament, and

(b) 40publish the report in such manner as the Minister considers
appropriate.