06193.40-46

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

40
94
Page 91, line 22, at end insert—

“Assistance for persons with disabilities

71A
In section 202 (general provisions as to interpretation), in subsection (1)

after the definition of “Common Council” insert—

““disability”, in relation to doing a thing, includes a short

term inability to do it;”.

71B
In rule 38 of Schedule 1 (votes marked by presiding officer), in paragraph

(1)(a) for “physical cause” substitute “disability”.

71C
In rule 39 of that Schedule (voting by persons with disabilities), in

paragraph (1)—

(a)
in sub-paragraph (a) for “physical incapacity” substitute

“disability”;

(b)
for “other incapacity” substitute “other disability”.

71D
In rule 43 of that Schedule (procedure on close of poll), in paragraph

(1)(f) for ““physical incapacity”” substitute ““disability””.

71E
In the Appendix of Forms in that Schedule, in Note number 2 to the Form

of declaration to be made by the companion of a voter with disabilities

for “incapacity” substitute “disability”.”
95
Page 91 , line 22, at end insert—

“Tendered ballot papers

    (1)
Rule 40 of that Schedule (tendered ballot papers) is amended as follows.

      (2)
After paragraph (1ZE) (inserted by section 38(2)) insert—

“(1ZF)
A person to whom a ballot paper is not delivered under

paragraph (3) of rule 35 following his unsatisfactory answer to

the question at entry 1(c) in the table in paragraph (1) of that

rule shall, if he satisfactorily answers any other questions

permitted by law to be asked at the poll, nevertheless be

entitled, subject to the following provisions of this rule, to

mark a ballot paper (in these rules referred to as “a tendered

ballot paper”) in the same manner as any other voter.”

      (3)
In paragraph (3) at the end insert “and the voter must sign the list

opposite the entry relating to him”.”
96
Page 91, line 25, leave out “in pursuance of permission granted under” and insert

“by virtue of”
97
Page 91, line 30, leave out “has permission to attend granted under” and insert “is

entitled to attend by virtue of”
98
Page 91, line 35, at end insert—

    “(4)
In paragraph (4) for “A candidate’s spouse or civil partner” substitute

“One other person chosen by the candidate”.”
99
Page 92, line 2, leave out “have permission to attend granted under” and insert “are

entitled to attend by virtue of”
100
Page 92, leave out lines 12 to 19 and insert—

41

    “(2)
In paragraph (2)(b) for “their spouses or civil partners” substitute “one

other person chosen by each of them”.

      (3)
After paragraph (2)(d) insert—

“(e)
persons who are entitled to attend by virtue of any”
101
Page 92, line 22, leave out sub-paragraph (3)
102
Page 93 , line 8, leave out sub-paragraph (3)
103
Page 94, line 24, at end insert—

“Part 5A

Control of loans etc to individuals and members associations

86A
The 2000 Act is amended in accordance with paragraphs 86B to 86E.

86B
After section 71X (inserted by section (Regulation of loans etc) of this Act)

insert—

“71Y
Control of loans etc: individuals and members associations

Schedule 7A, which makes provisions for controlling loans and

certain other transactions to individual members of registered

parties, associations of such members, and certain elected office

holders, shall have effect.”

86C
After Schedule 7 insert—

“Schedule 7A

Control of Loans etc to individuals and members associations

Operation and construction of Schedule

1    (1)
This Schedule has effect for controlling loans and certain other

transactions where one of the parties to the transaction is—

(a)
a member of a registered party,

(b)
a members association, or

(c)
the holder of a relevant elective office.

      (2)
The following provisions have effect for the purposes of this

Schedule.

      (3)
References to a controlled transaction must be construed in

accordance with paragraph 2.

      (4)
A reference to a connected transaction is a reference to a

controlled transaction falling within paragraph 2(3)(b).

      (5)
A regulated participant is—

(a)
a member of a registered party;

(b)
a members association;

(c)
the holder of a relevant elective office, whether or not

he is a member of a registered party.

      (6)
A credit facility is an agreement whereby a regulated

participant is enabled to receive from time to time from

another party to the agreement a loan of money not exceeding

42

such amount (taking account of any repayments made by the

regulated participant) as is specified in or determined in

accordance with the agreement.

      (7)
References to each of the following must be construed in

accordance with Schedule 7—

(a)
the political activities of a party member or a members

association;

(b)
members association;

(c)
relevant elective office;

(d)
the responsible person (in relation to a members

association), as if for the reference in paragraph 1(9)(b)

of that Schedule to donations there were a reference to

receipts from controlled transactions.

      (8)
This Schedule does not have effect in relation to—

(a)
a member of the Scottish Parliament, or

(b)
a member of a local authority in Scotland,


if he is not also a member of a registered party.

Controlled transaction

2    (1)
An agreement between a regulated participant and another

person by which the other person makes a loan of money to the

regulated participant is a controlled transaction if the use

condition is satisfied.

      (2)
An agreement between a regulated participant and another

person by which the other person provides a credit facility to

the regulated participant is a controlled transaction if the use

condition is satisfied.

      (3)
Where—

(a)
a regulated participant and another person (A) enter

into a controlled transaction of a description

mentioned in sub-paragraph (1) or (2) or a transaction

under which any property, services or facilities are

provided for the use or benefit of the regulated

participant (including the services of any person),

(b)
A also enters into an arrangement where a third person

(B) gives any form of security (whether real or

personal) for a sum owed to A by the regulated

participant under the transaction mentioned in

paragraph (a), and

(c)
the use condition is satisfied,


the arrangement is a controlled transaction.

      (4)
An agreement or arrangement is not a controlled transaction—

(a)
to the extent that in accordance with any enactment a

payment made in pursuance of the agreement or

arrangement falls to be included in a return as to

election expenses in respect of a candidate or

candidates at a particular election, or

(b)
if its value is not more than £200.

43

      (5)
Anything given or transferred to an officer, member, trustee or

agent of a members association in his capacity as such (and not

for his own use or benefit) is to be regarded as given or

transferred to the association (and references to money or any

other benefit received by a regulated participant accordingly

include, in the case of a members association, money or any

other benefit so given or transferred).

      (6)
The use condition is that the regulated participant intends at

the time he enters into a transaction mentioned in sub-

paragraph (1), (2) or (3)(a) to use any money or benefit

obtained in consequence of the transaction in connection with

relevant political activities.

      (7)
For the purposes of sub-paragraph (6), it is immaterial that

only part of the money or benefit is intended to be used in

connection with relevant political activities.

      (8)
Relevant political activities are—

(a)
if the regulated participant is a member of a regulated

participant, any of his political activities as a member

of the party;

(b)
if the regulated participant is a members association,

any of its political activities;

(c)
if the regulated participant is a holder of a relevant

elective office, any of his political activities.

      (9)
The Secretary of State may, by order, specify circumstances or

any description of circumstances in which an agreement or

arrangement falling within any of sub-paragraphs (1) to (3) is

not a controlled transaction.

Valuation of controlled transactions

3    (1)
The value of a controlled transaction which is a loan is the

value of the total amount to be lent under the loan agreement.

      (2)
The value of a controlled transaction which is a credit facility

is the maximum amount which may be borrowed under the

agreement for the facility.

      (3)
The value of a controlled transaction which is an arrangement

by which any form of security is given is the contingent

liability under the security provided.

      (4)
For the purposes of sub-paragraphs (1) and (2), no account is

to be taken of the effect of any provision contained in a loan

agreement or an agreement for a credit facility at the time it is

entered into which enables outstanding interest to be added to

any sum for the time being owed in respect of the loan or credit

facility, whether or not any such interest has been so added.

Authorised participants

4    (1)
A regulated participant must not—

(a)
be a party to a controlled transaction to which any of

the other parties is not an authorised participant;

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(b)
derive a benefit in consequence of a connected

transaction if any of the parties to that transaction is not

an authorised participant.

      (2)
This paragraph does not apply to a controlled transaction if it

was entered into before the commencement of section

(Regulation of loans etc) of the Electoral Administration Act

2006.

      (3)
In this Schedule, an authorised participant is a person who is a

permissible donor within the meaning of section 54(2).

      (4)
The Secretary of State may, by order, specify circumstances or

any description of circumstances in which a person who is not

a permissible donor is to be treated as an authorised

participant.

Controlled transaction involving unauthorised participant

5    (1)
This paragraph applies if a regulated participant is a party to a

controlled transaction in which another participant is not an

authorised participant.

      (2)
The transaction is void.

      (3)
Despite subsection (2)—

(a)
any money received by the regulated participant by

virtue of the transaction must be repaid by the

regulated participant to the person from whom it was

received, along with interest at such rate as is

determined in accordance with an order made by the

Secretary of State;

(b)
that person is entitled to recover the money, along with

such interest.

      (4)
If—

(a)
the money is not (for whatever reason) repaid as

mentioned in subsection (3)(a), or

(b)
the person entitled to recover the money refuses or fails

to do so,


the Commission may apply to the court to make such order as

it thinks fit to restore (so far as is possible) the parties to the

transaction to the position they would have been in if the

transaction had not been entered into.

      (5)
In the case of a controlled transaction where a party other than

a regulated participant—

(a)
at the time the regulated participant enters into the

transaction, is an authorised participant, but

(b)
subsequently, for whatever reason, ceases to be an

authorised participant,


the transaction is void and subsections (3) to (4) apply with

effect from the time when the other party ceased to be an

authorised participant.

      (6)
This paragraph does not apply to a controlled transaction if it

was entered into before the commencement of section

45

(Regulation of loans etc) of the Electoral Administration Act

2006.

Guarantees and securities: unauthorised participants

6    (1)
This section applies if—

(a)
a regulated participant and another person (A) enter

into a transaction of a description mentioned in

paragraph 2(3)(a),

(b)
A is party to a controlled transaction of a description

mentioned in section 2(3)(b) (“the connected

transaction”) with another person (B), and

(c)
B is not an authorised participant.

      (2)
Paragraph 5(2) to (4) applies to the transaction mentioned in

sub-paragraph (1)(a).

      (3)
The connected transaction is void.

      (4)
Sub-paragraph (5) applies if (but only if) A is unable to recover

from the regulated participant the whole of the money

mentioned in section 2(3)(a) (as applied by sub-paragraph (2)

above), along with such interest as is there mentioned.

      (5)
Despite sub-paragraph (3), A is entitled to recover from B any

part of that money (and such interest) that is not recovered

from the regulated participant.

      (6)
Sub-paragraph (5) does not entitle A to recover more than the

contingent liability under the security provided by virtue of

the connected transaction.

      (7)
In the case of a connected transaction where B—

(a)
at the time A enters into the transaction, is an

authorised participant, but

(b)
subsequently, for whatever reason, ceases to be an

authorised participant,


sub-paragraphs (2) to (6) apply with effect from the time when

B ceased to be an authorised participant.

      (8)
This paragraph does not apply to a regulated transaction if it

was entered into before the commencement of section

(Regulation of loans etc) of the Electoral Administration Act

2006.

      (9)
If the transaction mentioned in section 71F(4)(a) is not a

regulated transaction of a description mentioned in section

71F(2) or (3), references in this section and section 71I(2) to (5)

(as applied by subsection (2) above) to the repayment or

recovery of money must be construed as references to (as the

case may be)—

(a)
the return or recovery of any property provided under

the transaction,

(b)
to the extent that such is incapable of being returned or

recovered or its market value has diminished since the

time the transaction was entered into, the repayment or

recovery of the market value at that time, or

46

(c)
the market value (at that time) of any facilities or

services provided under the transaction.

Transfer to unauthorised participant invalid

7
If an authorised participant purports to transfer his interest in

a controlled transaction to a person who is not an authorised

participant the purported transfer is of no effect.

Offences

8    (1)
An individual who is a regulated participant commits an

offence if—

(a)
he enters into a controlled transaction of a description

mentioned in paragraph 2(1) or (2) in which another

participant is not an authorised participant, and

(b)
he knew or ought reasonably to have known that the

other participant was not an authorised participant.

      (2)
A responsible person of a members association commits an

offence if—

(a)
the association enters into a controlled transaction of a

description mentioned in paragraph 2(1) or (2) in

which another participant is not an authorised

participant, and

(b)
he knew or ought reasonably to have known of the

matters mentioned in paragraph (a).

      (3)
An individual who is a regulated participant commits an

offence if—

(a)
he enters into a controlled transaction of a description

mentioned in paragraph 2(1) or (2) in which another

participant is not an authorised participant,

(b)
sub-paragraph (1)(b) does not apply to him, and

(c)
as soon as practicable after knowledge that the other

participant is not an authorised participant comes to

him he fails to take all reasonable steps to repay any

money which he has received by virtue of the

transaction.

      (4)
A responsible person of a members association commits an

offence if—

(a)
the association enters into a controlled transaction of a

description mentioned in paragraph 2(1) or (2) in

which another participant is not an authorised

participant,

(b)
sub-paragraph (2)(b) does not apply to him, and

(c)
as soon as practicable after knowledge of the matters

mentioned in sub-paragraph (a) comes to him he fails

to take all reasonable steps to repay any money which

the association has received by virtue of the

transaction.

      (5)
An individual who is a regulated participant commits an

offence if—