European Union Referendum Bill (HL Bill 60)

European Union Referendum BillPage 20

paragraph (a) there were inserted—

(za) any reference in section 56 to a permissible donor is to be
read as including a reference to a person within paragraph
6(1A) above;”.

5Evasion of restrictions on donations

27 Paragraph 8 of Schedule 15 to the 2000 Act (application of section 61 of the
2000 Act) has effect for the purposes of the referendum as if for paragraph
(c) (and the “and” preceding it) there were substituted—

(c) any reference to a permissible donor included a person
10within paragraph 6(1A) above; and

(d) any reference to the treasurer of a registered party were, in
relation to a permitted participant, a reference to the
responsible person.”

Reporting of donations from permissible donors

28 (1) 15Paragraph 10 of Schedule 15 to the 2000 Act (reporting of donations from
permissible donors) has effect for the purposes of the referendum with the
following modifications.

(2) Sub-paragraph (1)(c) has effect for those purposes as if at the end there were
inserted “or, where the donor is within any of paragraphs (c) to (f) of
20paragraph 6(1A), the information mentioned in sub-paragraph (1A) below”.

(3) For the purposes of the referendum the following sub-paragraph is to be
treated as inserted after sub-paragraph (1)—

(1A) The information to be recorded in the case of a donor within any
of paragraphs (c) to (f) of paragraph 6(1A) is—

(a) 25where the donor is a body within paragraph 6(1A)(c)
(body incorporated by Royal Charter)—

(i) the name of the body, and

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

(b) 30where the donor is a body within paragraph 6(1A)(d) or (e)
(charitable incorporated organisation)—

(i) the name of the body, and

(ii) the address of its principal office;

(c) where the donor is a body within paragraph 6(1A)(f)
35(Scottish partnership)—

(i) the name of the body, and

(ii) the address of its main office in the United
Kingdom.”

Returns in respect of referendum expenses and donations

29 40For the purposes of the referendum, the following section is to be treated as
inserted after section 120 of the 2000 Act (returns in respect of referendum

European Union Referendum BillPage 21

expenses and donations)—

120A Full return not required if expenses do not exceed £10,000

(1) A return under section 120 need not be made by the responsible
person in relation to a permitted participant if, within 3 months
5beginning with the end of the referendum period, the responsible
person—

(a) makes a relevant declaration, and

(b) delivers that declaration to the Commission.

(2) A “relevant declaration” is a declaration that, to the best of the
10responsible person’s knowledge and belief, the total amount of
referendum expenses incurred by or on behalf of the permitted
participant during the referendum period does not exceed £10,000.

(3) If a person who is the responsible person in relation to a permitted
participant knowingly or recklessly makes a false declaration under
15this section, that person commits an offence.

(4) A person guilty of an offence under this section is liable—

(a) on conviction on indictment, to imprisonment for a term not
exceeding 12 months or to a fine, or to both;

(b) on summary conviction in England and Wales, to
20imprisonment for a term not exceeding 12 months or to a fine,
or to both;

(c) on summary conviction in Scotland, to imprisonment for a
term not exceeding 12 months or to a fine not exceeding the
statutory maximum, or to both;

(d) 25on summary conviction in Northern Ireland, to
imprisonment for a term not exceeding 6 months or to a fine
not exceeding the statutory maximum, or to both;

(e) on summary conviction in Gibraltar, to imprisonment for a
term not exceeding 12 months or to a fine not exceeding level
305 on the Gibraltar standard scale, or to both.

(5) The reference in subsection (4)(b) to 12 months is to be read as a
reference to 6 months in relation to an offence committed before the
commencement of section 154(1) of the Criminal Justice Act 2003.

(6) In subsection (4)(e) “the Gibraltar standard scale” means the
35standard scale set out in Part A of Schedule 9 to the Criminal
Procedure and Evidence Act.”

Declaration of responsible person as to donations

30 (1) Section 123 of the 2000 Act (declaration of responsible person as to return
under section 120) has effect for the purposes of the referendum with the
40following modifications.

(2) For those purposes, the following subsection is to be treated as substituted
for subsection (3)—

(3) In a case where the permitted participant either is not a registered
party or is a minor party, the declaration must also, in relation to all
45relevant donations recorded in the return as having been accepted by
the permitted participant—

European Union Referendum BillPage 22

(a) state that they were all from permissible donors, or

(b) state whether or not section 56(2) was complied with in the
case of each of those donations that was not from a
permissible donor.”

(3) 5For the purposes of the referendum, the following subsection is to be treated
as inserted after subsection (5)—

(6) In this section “permissible donor” includes a person within
paragraph 6(1A) of Schedule 15.”

Declaration where no referendum expenses incurred in referendum period

31 (1) 10For the purposes of the referendum, the following section is to be treated as
inserted after section 124 of the 2000 Act—

124A Declaration where no expenses in referendum period

(1) Subsection (2) applies where, in relation to a referendum to which
this Part applies—

(a) 15a permitted participant incurs no referendum expenses
during the referendum period (and no such expenses are
incurred on behalf of that participant during that period),
and

(b) accordingly, the responsible person in relation to the
20permitted participant is not required to make a return under
section 120 or a declaration under section 120A.

(2) The responsible person must, within 3 months beginning with the
end of the referendum period—

(a) make a declaration under this section, and

(b) 25deliver that declaration to the Commission.

(3) A declaration under this section is a declaration that no referendum
expenses were incurred by or on behalf of the permitted participant
during the referendum period.

(4) The responsible person commits an offence if, without reasonable
30excuse, that person fails to comply with the requirements of
subsection (2).

(5) If a person who is the responsible person in relation to a permitted
participant knowingly or recklessly makes a false declaration in
purported compliance with the requirement in subsection (2)(a), that
35person commits an offence.

(6) A person guilty of an offence under subsection (4) is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland or Northern Ireland, to a
fine not exceeding level 5 on the standard scale;

(c) 40on summary conviction in Gibraltar, to a fine not exceeding
level 5 on the Gibraltar standard scale.

(7) A person guilty of an offence under subsection (5) is liable—

(a) on conviction on indictment, to imprisonment for a term not
exceeding 12 months or to a fine, or to both;

European Union Referendum BillPage 23

(b) on summary conviction in England and Wales, to
imprisonment for a term not exceeding 12 months or to a fine,
or to both;

(c) on summary conviction in Scotland, to imprisonment for a
5term not exceeding 12 months or to a fine not exceeding the
statutory maximum, or to both;

(d) on summary conviction in Northern Ireland, to
imprisonment for a term not exceeding 6 months or to a fine
not exceeding the statutory maximum, or to both;

(e) 10on summary conviction in Gibraltar, to imprisonment for a
term not exceeding 12 months or to a fine not exceeding level
5 on the Gibraltar standard scale, or to both.

(8) The reference in subsection (7)(b) to 12 months is to be read as a
reference to 6 months in relation to an offence committed before the
15commencement of section 154(1) of the Criminal Justice Act 2003.

(9) In this section “the Gibraltar standard scale” means the standard
scale set out in Part A of Schedule 9 to the Criminal Procedure and
Evidence Act.

(10) Schedule 19C (civil sanctions), and any order under Part 5 of that
20Schedule, have effect as if the offence under subsection (4) of this
section were an offence prescribed in an order under that Part.

(11) In—

(a) section 113(3) (treatment of expenses incurred in
contravention of section 113(1)), and

(b) 25section 118(4) and (5) (treatment of certain expenses incurred
before referendum period or before becoming permitted
participant),

the references to, respectively, sections 117 to 123 and sections 120 to
123 include references to this section.”

(2) 30Nothing in subsection (10) of the section treated as inserted by this
paragraph (read with section 10 of this Act) is to be taken to mean that
Schedule 19C to the 2000 Act extends or applies to Gibraltar for the purposes
of the referendum.

Reporting of donations during referendum period

32 (1) 35In this paragraph references to a permitted participant are to a permitted
participant which either is not a registered party or is a minor party.

(2) In relation to the referendum, the responsible person in relation to a
permitted participant must prepare reports under this paragraph in respect
of such periods ending before the date of the poll for the referendum as may
40be prescribed by regulations made by the Minister.

(3) The report for a period must record, in relation to each relevant donation of
more than £7,500 which is received by the permitted participant during the
period—

(a) the amount of the donation (if it is a donation of money, in cash or
45otherwise) or (in any other case) the nature of the donation and its
value as determined in accordance with paragraph 5 of Schedule 15
to the 2000 Act,

European Union Referendum BillPage 24

(b) the date when the donation was received by the permitted
participant, and

(c) the information about the donor which is, in connection with
recordable donations to registered parties, required to be recorded in
5weekly donation reports by virtue of paragraph 3 of Schedule 6 to the
2000 Act.

(4) If during any period no relevant donations of more than £7,500 were
received by the permitted participant, the report for the period must contain
a statement of that fact.

(5) 10A report under this paragraph in respect of a period must be delivered by
the responsible person to the Electoral Commission within such time as may
be prescribed by regulations made by the Minister.

(6) If, in relation to a donation made by an individual who has an anonymous
entry in an electoral register, a report under this paragraph contains a
15statement that the permitted participant has seen evidence that the
individual has such an anonymous entry, the report must be accompanied
by a copy of the evidence.

(7) If a period for which a report under this paragraph must be prepared (“the
reporting period”) begins before the start of the referendum period, a
20relevant donation received by a permitted participant—

(a) during the reporting period, but

(b) before the start of the referendum period,

is to be treated for the purposes of sub-paragraphs (3) and (4) as received
during the reporting period only if the donation was for the purpose of
25meeting referendum expenses to be incurred by the permitted participant
during the referendum period.

(8) The Minister may by regulations modify the operation of sub-paragraphs (2)
to (4) in relation to cases where an individual or body becomes a permitted
participant during a period prescribed under sub-paragraph (2).

(9) 30Regulations under sub-paragraph (5) or (8) may make different provision
for different cases.

(10) The responsible person commits an offence if, without reasonable excuse,
that person—

(a) fails to comply with the requirements of sub-paragraph (5) in
35relation to a report under this paragraph, or

(b) delivers a report to the Electoral Commission that does not comply
with the requirements of sub-paragraph (3), (4) or (6).

(11) A person guilty of an offence under sub-paragraph (10)(a) is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) 40on summary conviction in Scotland or Northern Ireland, to a fine not
exceeding level 5 on the standard scale;

(c) on summary conviction in Gibraltar, to a fine not exceeding level 5
on the Gibraltar standard scale.

(12) A person guilty of an offence under sub-paragraph (10)(b) is liable—

(a) 45on conviction on indictment, to imprisonment for a term not
exceeding 12 months or to a fine, or to both;

European Union Referendum BillPage 25

(b) on summary conviction in England and Wales, to imprisonment for
a term not exceeding 12 months or to a fine, or to both;

(c) on summary conviction in Scotland, to imprisonment for a term not
exceeding 12 months or to a fine not exceeding the statutory
5maximum, or to both;

(d) on summary conviction in Northern Ireland, to imprisonment for a
term not exceeding 6 months or to a fine not exceeding the statutory
maximum, or to both;

(e) on summary conviction in Gibraltar, to imprisonment for a term not
10exceeding 12 months or to a fine not exceeding level 5 on the
Gibraltar standard scale, or to both.

(13) The reference in sub-paragraph (12)(b) to 12 months is to be read as a
reference to 6 months in relation to an offence committed before the
commencement of section 154(1) of the Criminal Justice Act 2003.

(14) 15In this paragraph—

(a) “electoral register” means—

(i) an electoral register as defined by 54(8) of the 2000 Act, or

(ii) the Gibraltar register as defined by section 14 of the European
Parliament (Representation) Act 2003,

(b) 20“relevant donation” has the same meaning as in Schedule 15 to the
2000 Act, and

(c) references to a relevant donation received by a permitted participant
include any donation received at a time before the individual or
body concerned became a permitted participant, if the donation
25would have been a relevant donation had the individual or body
been a permitted participant at that time.

(15) Section 161 of the 2000 Act (interpretation: donations) applies for the
purposes of this paragraph as it applies for the purposes of the provisions of
that Act relating to donations.

30Declaration of responsible person as to donation reports under paragraph 32

33 (1) Each report delivered under paragraph 32 must be accompanied by a
declaration which complies with sub-paragraph (2) and is signed by the
responsible person.

(2) The declaration must state—

(a) 35that the responsible person has examined the report, and

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

(3) A person commits an offence if—

(a) the person knowingly or recklessly makes a false declaration under
40this paragraph, or

(b) sub-paragraph (1) is contravened at a time when the person is the
responsible person in the case of the permitted participant to which
the report relates.

(4) A person guilty of an offence under sub-paragraph (3) is liable—

(a) 45on conviction on indictment, to imprisonment for a term not
exceeding 12 months or to a fine, or to both;

European Union Referendum BillPage 26

(b) on summary conviction in England and Wales, to imprisonment for
a term not exceeding 12 months or to a fine, or to both;

(c) on summary conviction in Scotland, to imprisonment for a term not
exceeding 12 months or to a fine not exceeding the statutory
5maximum, or to both;

(d) on summary conviction in Northern Ireland, to imprisonment for a
term not exceeding 6 months or to a fine not exceeding the statutory
maximum, or to both;

(e) on summary conviction in Gibraltar, to imprisonment for a term not
10exceeding 12 months or to a fine not exceeding level 5 on the
Gibraltar standard scale, or to both.

(5) The reference in sub-paragraph (4)(b) to 12 months is to be read as a
reference to 6 months in relation to an offence committed before the
commencement of section 154(1) of the Criminal Justice Act 2003.

15Public inspection of donation reports under paragraph 32

34 (1) Where the Electoral Commission receive a report under paragraph 32 they
must—

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

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

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

(3) At the end of the period of two years beginning with the date when any
report under paragraph 32 or other document accompanying it is received
by the Electoral Commission—

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

(b) 30if requested to do so by the responsible person in the case of the
permitted participant concerned, they must arrange for the report or
other document to be returned to that person.

35 Section 149(2) to (5) and (7) of the 2000 Act (inspection of Commission’s
documents) apply in relation to reports and documents which the Electoral
35Commission are required to make available for public inspection under
paragraph 34 as they apply to the documents which the Electoral
Commission are required to make available for public inspection by virtue
of the provisions of the 2000 Act mentioned in section 149(6) of that Act.

Referendum campaign broadcasts

36 40Section 127 of the 2000 Act (referendum campaign broadcasts) has effect for
the purposes of the referendum as if any reference to a broadcaster (within
the meaning given by section 37(2) of that Act) included a reference to the
Gibraltar Broadcasting Corporation.

European Union Referendum BillPage 27

Enforcement

37 (1) Section 145(1)(a) and (6A) of the 2000 Act (general functions of Electoral
Commission with respect to compliance) apply in relation to the
requirements imposed by this Schedule as they apply in relation to the
5requirements referred to in section 145(1)(a).

(2) In section 148 of the 2000 Act (general offences), the references in each of
subsections (1) to (3) to any of the provisions of that Act include any of the
provisions of this Schedule.

(3) Sections 151 and 154 of the 2000 Act (summary proceedings, and duty of
10court to report conviction to Electoral Commission) apply in relation to an
offence under this Schedule as they apply in relation to an offence under that
Act.

(4) In paragraphs 3 to 5 of Schedule 19B to the 2000 Act (powers of Electoral
Commission in relation to suspected offences or contraventions)—

(a) 15the references to an offence under that Act include an offence under
this Schedule, and

(b) the references to a restriction or other requirement imposed by or by
virtue of that Act include a requirement or restriction imposed by or
by virtue of this Schedule.

(5) 20Schedule 19C to the 2000 Act (civil sanctions), and any order under Part 5 of
that Schedule, have effect as if any reference in that Schedule to an offence
under the 2000 Act, or to a prescribed offence under that Act, included a
reference to an offence under paragraph 32(10) of this Schedule.

(6) Nothing in sub-paragraph (4) or (5) (read with section 10) is to be taken to
25mean that Schedule 19B or 19C of the 2000 Act extends or applies to
Gibraltar for the purposes of the referendum.

Section 3

SCHEDULE 2 Control of loans etc to permitted participants

Control of loans etc to permitted participants

1 30For the purposes of the referendum, the 2000 Act has effect as if after

European Union Referendum BillPage 28

Schedule 15 (in Part 7 of that Act) there were inserted—

Schedule 1 Control of loans etc to certain permitted participants

Part 1 5Introductory
Introductory

1 (1) This Schedule has effect for controlling regulated transactions
entered into by permitted participants that either are not
registered parties or are minor parties.

(2) 10Accordingly, in the following provisions of this Schedule
references to permitted participants do not include a permitted
participant which is a registered party other than a minor party.

(3) In this Schedule—

  • “connected transaction” has the meaning given by paragraph
    152(9);

  • “credit facility” has the meaning given by paragraph 2(11);

  • “non-qualifying person” means a person who is not a
    qualifying person;

  • “qualifying person” has the meaning given by paragraph
    204(2);

  • “regulated transaction” has the meaning given by paragraph
    2.

Regulated transactions

2 (1) An agreement between a permitted participant and another
25person by which the other person makes a loan of money to the
permitted participant is a regulated transaction if the use
condition is satisfied.

(2) An agreement between a permitted participant and another
person by which the other person provides a credit facility to the
30permitted participant is a regulated transaction if the use
condition is satisfied.

(3) Where—

(a) a permitted participant and another person (“A”) enter
into a regulated transaction of a description mentioned in
35sub-paragraph (1) or (2), or a transaction under which any
property, services or facilities are provided for the use or
benefit of the permitted participant (including the services
of any person),

(b) A also enters into an arrangement whereby another person
40(“B”) gives any form of security (whether real or personal)
for a sum owed to A by the permitted participant under the
transaction mentioned in paragraph (a), and

(c) the use condition is satisfied,

European Union Referendum BillPage 29

the arrangement mentioned in paragraph (b) is a regulated
transaction.

(4) An agreement or arrangement is also a regulated transaction if—

(a) the terms of the agreement or arrangement as first entered
5into do not constitute a regulated transaction by virtue of
sub-paragraph (1), (2) or (3), but

(b) the terms are subsequently varied in such a way that the
agreement or arrangement becomes a regulated
transaction.

(5) 10“The use condition” is that the permitted participant intends at the
time of entering into a transaction mentioned in sub-paragraph
(1), (2) or (3)(a) to use any money or benefit obtained in
consequence of the transaction for meeting referendum expenses
incurred by or on behalf of the permitted participant.

(6) 15For the purposes of sub-paragraph (5), it is immaterial that only
part of the money or benefit is intended to be used for meeting
referendum expenses incurred by or on behalf of the permitted
participant.

(7) References in sub-paragraphs (1) and (2) to a permitted participant
20include references to an officer, member, trustee or agent of the
permitted participant if that person makes the agreement as such.

(8) References in sub-paragraph (3) to a permitted participant include
references to an officer, member, trustee or agent of the permitted
participant if the property, services or facilities are provided to
25that person as such, or the sum is owed by that person as such.

(9) A reference in this Schedule to a connected transaction is a
reference to the arrangement mentioned in sub-paragraph (3)(b).

(10) In this paragraph a reference to anything being done by or in
relation to a permitted participant or a person includes a reference
30to its being done directly or indirectly through a third person.

(11) A “credit facility” is an agreement whereby a permitted
participant is enabled to receive from time to time from another
party to the agreement a loan of money not exceeding such
amount (taking account of any repayments made by the permitted
35participant) as is specified in or determined in accordance with the
agreement.

(12) An agreement or arrangement is not a regulated transaction—

(a) to the extent that a payment made in pursuance of the
agreement or arrangement falls, by virtue of paragraph 9
40of Schedule 15, to be included in a return under section 120
(or would do so but for section 120A), or

(b) if its value is not more than £500.

Valuation of regulated transaction

3 (1) The value of a regulated transaction which is a loan is the value of
45the total amount to be lent under the loan agreement.