Political Parties Elections and Referendums Bill

Political Parties Elections and Referendums Bill - continued	House of Commons
PART VII, REFERENDUMS - continued

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	Financial limits
General restriction on referendum expenses.	110. - (1) The total referendum expenses incurred by or on behalf of any individual or body during the referendum period in the case of a particular referendum to which this Part applies must not exceed £10,000 unless the individual or body is a permitted participant.
	(2) Where-
	(a) during the referendum period any referendum expenses are incurred by or on behalf of any individual in excess of the limit imposed by subsection (1), and
	(b) he is not a permitted participant,
	he is guilty of an offence if he knew, or ought reasonably to have known, that the expenses were being incurred in excess of that limit.
	(3) Where-
	(a) during the referendum period any referendum expenses are incurred by or on behalf of any body in excess of the limit imposed by subsection (1), and
	(b) the body is not a permitted participant,
	any person who authorised the expenses to be incurred by or on behalf of the body is guilty of an offence if he knew, or ought reasonably to have known, that the expenses would be incurred in excess of that limit.
	(4) Where subsection (3)(a) and (b) apply, the body in question is also guilty of an offence.
Special restrictions on referendum expenses by permitted participants.	111. - (1) Schedule 13 has effect for imposing, in connection with a referendum to which this Part applies, limits on referendum expenses incurred by or on behalf of permitted participants during the referendum period in the case of that referendum.
	(2) Where any referendum expenses are incurred by or on behalf of a permitted participant during any such period in excess of any limit imposed by Schedule 13, then-
	(a) if the permitted participant is a registered party falling within section 98(1)(a)-
	(i) the treasurer or any deputy treasurer of the party is guilty of an offence if he authorised any expenses to be incurred by or on behalf of the party and he knew or ought reasonably to have known that the expenses would be incurred in excess of that limit, and
	(ii) the party is also guilty of an offence;
	(b) if the permitted participant is an individual falling within 98(1)(b), that individual is guilty of an offence if he knew or ought reasonably to have known that the expenses would be incurred in excess of that limit;
	(c) if the permitted participant is a company falling within 98(1)(b)-
	(i) the responsible person is guilty of an offence if he authorised any expenses to be incurred by or on behalf of the company and he knew or ought reasonably to have known that the expenses would be incurred in excess of that limit, and
	(ii) the company is also guilty of an offence;
	(d) if the permitted participant is an unincorporated association falling within section 98(1)(b)-
	(i) the responsible person is guilty of an offence if he authorised any expenses to be incurred by or on behalf of the association and he knew or ought reasonably to have known that the expenses would be incurred in excess of that limit, and
	(ii) the association is also guilty of an offence.
	(3) It shall be a defence for a permitted participant or other person charged with an offence under subsection (2) to show-
	(a) that any code of practice for the time being issued under paragraph 6 of Schedule 12 was complied with in determining the items and amounts of referendum expenses to be entered in the relevant return under section 113, and
	(b) that the limit would not have been exceeded on the basis of the items and amounts entered in that return.
	Donations to permitted participants
Control of donations to permitted participants.	112. Schedule 14 has effect for controlling donations to permitted participants other than registered parties.
	Returns
Returns as to referendum expenses.	113. - (1) Where-
	(a) any referendum expenses are incurred by or on behalf of a permitted participant during any referendum period (within the meaning of 96), and
	(b) that period ends,
	the responsible officer shall make a return under this section in respect of the referendum expenses incurred by or on behalf of the permitted participant during that period.
	(2) A return under this section must specify the referendum to which the expenditure relates and must contain-
	(a) a statement of all payments made in respect of referendum expenses incurred by or on behalf of the permitted participant during the referendum period in question;
	(b) a statement of all disputed claims (within the meaning of section 109);
	(c) a statement of all the unpaid claims (if any) of which the responsible person is aware in respect of which an application has been made, or is about to be made, to a court under section 108(4); and
	(d) except where the permitted participant is a registered party, a statement of relevant donations received in respect of the referendum which complies with the requirements of paragraphs 9 and 10 of Schedule 14.
	(3) A return under this section must be accompanied by-
	(a) all invoices and receipts relating to the payments mentioned in subsection (2)(a); and
	(b) in the case of any referendum expenses treated as incurred by virtue of section 105, any declaration falling to be made with respect to those expenses in accordance with subsection (3) of that section.
	(4) The Commission may by regulations prescribe a form of return which may be used for the purposes of this section.
	(5) In this section "relevant donations" has the same meaning as in Schedule 14.
Auditor's report on return.	114. - (1) Where during any referendum period the referendum expenses incurred by or on behalf of a permitted participant exceed £250,000, a report must be prepared by a qualified auditor on the return prepared under section 113 in respect of those expenses.
	(2) The following provisions, namely-
	(a) section 38(6) and (7), and
	(b) section 39,
	shall apply in relation to the appointment of an auditor to prepare a report under subsection (1) or (as the case may be) an auditor so appointed as they apply in relation to the appointment of an auditor to carry out an audit under section 38 or (as the case may be) an auditor so appointed.
Submission of returns to Commission.	115. - (1) Where-
	(a) any return falls to be prepared under section 113 in respect of referendum expenses incurred by or on behalf of a permitted participant, and
	(b) an auditor's report on it falls to be prepared under section 114(1),
	the responsible person shall deliver the return to the Commission, together with a copy of the auditor's report, within six months of the end of the relevant referendum period.
	(2) In the case of any other return falling to be prepared under section 113, the responsible person shall deliver the return to the Commission within three months of the end of the relevant referendum period.
	(3) Where after the date on which a return is delivered to the Commission under this section, leave is given by a court under section 108(4) for any claim to be paid, the responsible person shall, within seven days after the payment, deliver to the Commission a return of any sums paid in pursuance of the leave accompanied by a copy of the court order giving the leave.
	(4) The responsible person commits an offence if he-
	(a) fails to comply with the requirements of subsection (1) or (2) in relation to a return under section 113;
	(b) delivers a return which does not comply with the requirements of section 113(2) or (3); or
	(c) fails to comply with the requirements of subsection (3) in relation to a return under that subsection.
Declaration of responsible person as to return under section 113.	116. - (1) Each return prepared under section 113 in respect of referendum expenses incurred by or on behalf of a permitted participant must 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 return in question;
	(b) that to the best of his knowledge and belief-
	(i) it is a complete and correct return as required by law, and
	(ii) all expenses shown in it as paid have been paid by him or a person authorised by him under section 106; and
	(c) that he understands that no referendum expenses relating to the referendum period which are not included in the return may be defrayed except in pursuance of a court order.
	(3) The declaration must also state, in the case of a permitted participant other than a registered party, that-
	(a) all relevant donations recorded in the return as having been accepted by the permitted participant are from permissible donors, and
	(b) no other relevant donations have been accepted by the permitted participant.
	(4) A person commits an offence if-
	(a) he knowingly or recklessly makes a false declaration under this section; or
	(b) subsection (1) is contravened at a time when he is the responsible person in the case of the permitted participant to which the return relates.
	(5) In this section "relevant donations" has the same meaning as in Schedule 14.
Public inspection of returns under section 113.	117. - (1) Where the Commission receive any return under section 113 they shall-
	(a) as soon as reasonably practicable after receiving the return, make a copy of the return and of the documents accompanying it available for public inspection; and
	(b) keep any such copy available for public inspection for the period for which the return or other document is kept by them.
	(2) At the end of the period of two years beginning with the date when any return or other document mentioned in subsection (1) is received by the Commission-
	(a) they may cause the return or other document to be destroyed; but
	(b) if requested to do so by the responsible person in the case of the permitted participant concerned, they shall arrange for the return or other document to be returned to that person.

Prepared 21 December 1999