Political Parties and Elections Bill

House of Lords

Session 2008 - 09
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Other Bills before Parliament

Political Parties and Elections Bill

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
12

(b)
by the responsible person or, in the case of a notice
substituting a different individual as the responsible person,
by that individual.
      (9)
A notice under this paragraph ceases to have effect on receipt by the
Commission of a notice terminating it (a “notice of termination”)—
5
(a)
given by and signed on behalf of the members association, or
(b)
given and signed by the responsible person.
     (10)
On receipt of a notice of termination given by the members
association or by the responsible person, the Commission must
inform the other party as soon as is reasonably practicable (unless the
10
notice was signed both on behalf of the members association and by
the responsible person).
     (11)
A reference in this paragraph to a notice being signed on behalf of a
members association is to the notice being signed by the secretary of
the association or by a person who acts in a similar capacity in
15
relation to the association.
     (12)
A notice under the Schedule 7A version of this paragraph also has
effect as a notice under this paragraph.

The “Schedule 7A version” of this paragraph means this paragraph
as it applies, in relation to controlled transactions, by virtue of
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paragraph 1(7A) of Schedule 7A.
Offence of failing to comply with paragraph 1A
1B
A members association commits an offence if—
(a)
it is subject to the requirement in paragraph 1A(1)(b), and
(b)
without reasonable excuse it fails to comply with the
25
requirement.”
(4)
In paragraph 12 (offence of failing to deliver donation report), in sub-
paragraph (1) and in sub-paragraph (2), for paragraphs (a) and (b) and the
words following paragraph (b) there is substituted—
“(a)
in the case of a regulated donee other than a members
30
association, the regulated donee is guilty of an offence;
(b)
in the case of a members association, the association and the
responsible person are guilty of an offence.”
(5)
In Schedule 20 to the 2000 Act the following entry is inserted at the appropriate
place—
35

“Paragraph 1B of Schedule 7
On summary conviction: Level 5”.

(failure by members association to

comply with requirement to

appoint responsible person)

12
Control of donations to holders of elective office: compliance officers
40
(1)
In Schedule 7 to the 2000 Act (control of donations to individuals etc), at the

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
13

end there is inserted—
“Part 7
Compliance officers
Functions and liabilities of compliance officers
17    (1)
A regulated donee who is the holder of a relevant elective office (the
5
“office-holder”) may, by giving a notice to the Commission which
complies with paragraph 18(1), appoint an individual as compliance
officer for the office-holder.
      (2)
Where a notice under this paragraph is for the time being in force—
(a)
any duty imposed on the office-holder by virtue of paragraph
10
8, or under paragraph 10, 11 or 13, may be discharged either
by the office-holder or by the compliance officer;
(b)
section 56(3), (3B) and (4) as applied by paragraph 8, and
paragraph 12(1) and (2), apply to the compliance officer as
well as the office-holder (so that either or both of them may
15
be charged with any offence under those provisions);
(c)
if the compliance officer makes a declaration under
paragraph 13, paragraph 13(4) applies to the compliance
officer instead of the office-holder.
      (3)
The compliance officer for an office-holder cannot be guilty of an
20
offence under paragraph 12(1) or (2) in respect of any controlled
donation received by the office-holder at a time when the notice
under this paragraph was not in force.
      (4)
A person commits an offence if, at a time when a notice under this
paragraph is in force in relation to an office-holder, the person
25
knowingly gives the compliance officer any information relating
to—
(a)
the amount of any controlled donation made to the office-
holder, or
(b)
the person or body making such a donation,
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which is false in a material particular.
Notices of appointment, renewal, alteration and termination
18    (1)
A notice under paragraph 17—
(a)
must be signed by the office-holder, and
(b)
must contain a statement signed by the individual to be
35
appointed as compliance officer confirming that the
individual is willing to be appointed.
      (2)
A notice under paragraph 17 must state—
(a)
the full name of the office-holder,
(b)
the relevant elected office that the person holds,
40
(c)
the office-holder’s home address in the United Kingdom, or
(if there is no such home address) the office-holder’s home
address elsewhere, and

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
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(d)
if the office-holder is a member of a registered party, the
party’s registered name and the address of its registered
headquarters.
      (3)
A notice under paragraph 17 must also state—
(a)
the full name of the individual to be appointed as compliance
5
officer,
(b)
if the individual holds a relevant elected office, what that
office is,
(c)
the individual’s home address in the United Kingdom, or (if
there is no such home address) the individual’s home
10
address elsewhere, and
(d)
if the individual is a member of a registered party, the party’s
registered name and the address of its registered
headquarters.
      (4)
Subject to the following provisions of this paragraph, a notice under
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paragraph 17 (“the original notice”)—
(a)
shall be in force as from the date on which it is received by the
Commission, but
(b)
shall lapse at the end of the period of 12 months beginning
with that date unless the office-holder or the compliance
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officer gives the Commission a notice (a “renewal notice”)
that they both wish the original notice to remain in force.
      (5)
A renewal notice—
(a)
has the effect of extending the validity of the original notice
for a further 12 months beginning with the time when it
25
would otherwise have lapsed (whether under sub-paragraph
(4)(b) or on the expiry of a previous extension under this sub-
paragraph);
(b)
must be received by the Commission during the period of
one month ending at that time.
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      (6)
A renewal notice must either—
(a)
confirm that all the statements contained in the original
notice, as it has effect for the time being, are accurate; or
(b)
indicate that any statement contained in that notice, as it so
has effect, is replaced by some other statement conforming
35
with the relevant provision of sub-paragraph (2) or (3).

A renewal notice must be signed by the office-holder and the
compliance officer.
      (7)
The office-holder or the compliance officer may, at any time after
giving the original notice, give the Commission a notice (a “notice of
40
alteration”) indicating that any statement contained in the original
notice, as it has effect for the time being, is replaced by some other
statement—
(a)
contained in the notice of alteration, and
(b)
conforming with the relevant provision of sub-paragraph (2)
45
or (3).
      (8)
A notice of alteration must be signed—
(a)
by the office-holder, and

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
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(b)
by the compliance officer or, in the case of a notice
substituting a different individual as the compliance officer,
by that individual.
      (9)
A notice under paragraph 17 ceases to have effect on receipt by the
Commission of a notice terminating it (a “notice of termination”)
5
given and signed by the office-holder or by the compliance officer.
     (10)
On receipt of a notice of termination given by the office-holder or by
the compliance officer, the Commission must inform the other party
as soon as is reasonably practicable (unless the notice was signed
both by the office-holder and by the compliance officer).
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Register of compliance officers
19    (1)
The Commission shall maintain a register of all notices given to them
under paragraph 17 which are for the time being in force.
      (2)
The register shall be maintained by the Commission in such form as
they may determine and shall contain, in the case of each such notice,
15
all the information contained in the notice as it has effect for the time
being in accordance with paragraph 18.
      (3)
Where any notice is given to the Commission under paragraph 17 or
sub-paragraph (4)(b) or (7) of paragraph 18, they shall cause all the
information contained in the notice, or (as the case may be) any new
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information contained in it, to be entered in the register as soon as is
reasonably practicable.
      (4)
The information to be entered in the register in respect of any
individual shall, however, not include the individual’s home
address.”
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(2)
In Schedule 20 to the 2000 Act the following entry is inserted at the appropriate
place—

“Paragraph 17(4) of Schedule 7
On summary conviction in

(knowingly giving compliance
England and Wales or Scotland:

officer false information about
statutory maximum or 12 months

30

donations)

On summary conviction in

Northern Ireland: statutory

maximum or 6 months

On indictment: fine or 1 year”.

35
13
Control of loans etc to members associations: responsible persons
(1)
Schedule 7A to the 2000 Act (control of loans etc to members associations etc)
is amended as follows.
(2)
In paragraph 1 (operation and construction of Schedule)—
(a)
in sub-paragraph (7)(d), the words after “(in relation to a members
40
association)” are omitted;

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
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(b)
after sub-paragraph (7) there is inserted—
   “(7A)
Paragraphs 1A and 1B of Schedule 7 apply for the purposes
of this Schedule, in relation to controlled transactions, as they
apply for the purposes of that Schedule in relation to
controlled donations.
5
     (7B)
Paragraph 1A(1)(b) of Schedule 7, as it applies by virtue of
sub-paragraph (7A) above, has effect as if for sub-paragraphs
(i) and (ii) there were substituted—
“(i)
enters into a controlled transaction which is a
recordable transaction for the purposes of
10
paragraph 9 of Schedule 7A, or
(ii)
enters into a controlled transaction falling within
paragraph 5 or 6(1)(b) of that Schedule,”.
     (7C)
A notice under paragraph 1A of Schedule 7 also has effect as
a notice under the Schedule 7A version of that paragraph.
15

The “Schedule 7A version” of paragraph 1A of Schedule 7
means that paragraph as it applies, in relation to controlled
transactions, by virtue of sub-paragraph (7A) above.”
(3)
In paragraph 12 (offence of failing to deliver transaction report), in sub-
paragraph (1) and in sub-paragraph (2), for paragraphs (a) and (b) and the
20
words following paragraph (b) there is substituted—
“(a)
in the case of a regulated participant other than a members
association, the regulated participant is guilty of an offence;
(b)
in the case of a members association, the association and the
responsible person are guilty of an offence.”
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14
Control of loans etc to holders of elective office: compliance officers
In Schedule 7A to the 2000 Act (control of loans etc to individuals etc), at the
end there is inserted—
“Compliance officers
18    (1)
This paragraph applies where a regulated participant who is the
30
holder of a relevant elective office (the “office-holder”) has given a
notice to the Commission under paragraph 17 of Schedule 7
appointing an individual as compliance officer for the office-holder.
      (2)
Where the notice is for the time being in force—
(a)
any duty imposed on the office-holder under paragraph 9, 10,
35
11 or 13 may be discharged either by the office-holder or by
the compliance officer;
(b)
paragraph 12(1) and (2) applies to the compliance officer as
well as the office-holder (so that either or both of them may
be charged with an offence under paragraph 12(1) or (2));
40
(c)
if the compliance officer makes a declaration under
paragraph 13, paragraph 13(4) applies to the compliance
officer instead of the office-holder.
      (3)
The compliance officer for an office-holder cannot be guilty of an
offence under paragraph 12(1) or (2) in respect of any controlled
45

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
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transaction entered into by the office-holder at a time when the
notice was not in force.”
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Person may not be “responsible person” for more than one third party
(1)
Section 88 of the 2000 Act (third parties recognised for the purposes of Part 6 of
that Act) is amended as follows.
5
(2)
In subsection (2)(a), after “(as defined by section 54(8))” there is inserted “who
is not the responsible person in relation to another third party”.
(3)
After subsection (3) there is inserted—
“(3A)
A notification given by a third party does not comply with the
requirement in subsection (3)(b)(iii) or (c)(ii) (to state the name of the
10
person who will be responsible for compliance) if the person whose
name is stated is—
(a)
the responsible person in relation to another third party,
(b)
an individual who gives a notification under subsection (1) at
the same time, or
15
(c)
the person whose name is stated, in purported compliance with
the requirement in subsection (3)(b)(iii) or (c)(ii), in a
notification given at the same time by another third party.

In this subsection “the person”, in relation to a notification to which
subsection (3)(c) applies, is to be read as “the person or officer”.”
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(4)
Where—
(a)
a third party gives a notification under section 88(4)(b) of the 2000 Act
(“the renewal notification”) in respect of a notification under section
88(1) (“the original notification”) that was given before the
commencement of this section, and
25
(b)
the original notification contained a statement under section
88(3)(b)(iii) or (c)(ii) naming someone who, at the time when the
renewal notification is given, is the responsible person in relation to
another third party,

the renewal notification must indicate (under section 88(6)(b)) that the
30
statement is replaced by a statement naming someone who is not the
responsible person in relation to another third party.
Unincorporated associations
16
Reports of gifts received by unincorporated associations making donations
(1)
After section 140 of the 2000 Act there is inserted—
35
“Reports to Commission by unincorporated associations making political donations
“140A
   Reports of gifts received by unincorporated associations
Schedule 19A, which requires unincorporated associations making
political donations to report gifts received by them to the Commission,
has effect.”
40
(2)
Before Schedule 19B to the 2000 Act (inserted by section 2 above) there is
inserted, as Schedule 19A, the Schedule set out in Schedule 4 to this Act.

Political Parties and Elections Bill
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(3)
In Schedule 20 to the 2000 Act the following entries are inserted at the
appropriate place—

“Paragraph 6(1) of Schedule 19A
On summary conviction: Level 5

(failure to give notification or

report within specified period)

5

Paragraph 6(2) of Schedule 19A
On summary conviction in

(giving notification or report that
England and Wales or Scotland:

fails to comply with requirements
statutory maximum or 12 months

of that Schedule)

On summary conviction in

10

Northern Ireland: statutory

maximum or 6 months

On indictment: fine or 1 year

Paragraph 6(3) of Schedule 19A
On summary conviction in

(making false declaration in
England and Wales or Scotland:

15

notification or report)
statutory maximum or 12 months

On summary conviction in

Northern Ireland: statutory

maximum or 6 months

On indictment: fine or 1 year”.

20
(4)
The Secretary of State, after consulting the Electoral Commission, may make an
order that—
(a)
amends or modifies the Schedule inserted into the 2000 Act by
Schedule 4 so far as it applies in relation to Northern Ireland;
(b)
makes provision that is consequential on or supplemental to that made
25
by virtue of paragraph (a) (including provision amending or modifying
any provision of the 2000 Act).
(5)
The power to make an order under subsection (4) is exercisable by statutory
instrument.
(6)
No order may be made under subsection (4) unless a draft of the instrument
30
containing the order has been laid before and approved by a resolution of each
House of Parliament.
(7)
In the Schedule inserted into the 2000 Act by Schedule 4 to this Act—
(a)
the reference in paragraph 1(1) to a calendar year does not include any
year before 2010;
35
(b)
a reference in paragraph 2 to a gift does not include any gift received
before the day on which this Act is passed.
Thresholds
17
Increased thresholds in relation to donations etc
(1)
In the following provisions of the 2000 Act, for “£200” there is substituted
40
“£500”—