Political Parties and Elections Bill

House of Lords

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Political Parties and Elections Bill

Political Parties and Elections Bill
Part 1 — The Electoral Commission
5

6
Number of Electoral Commissioners
In section 1 of the 2000 Act (establishment of Electoral Commission), in
subsection (3) (number of Commissioners), for “not less than five, but not more
than nine,” there is substituted “nine or ten”.
7
Political restrictions on Electoral Commissioners and staff
5
(1)
In section 3(4)(d) of the 2000 Act (persons not to be appointed as Electoral
Commissioners within ten years of engaging in certain political activities), for
“within the last ten years” there is substituted “within the last five years”.
(2)
In Schedule 1 to the 2000 Act (the Electoral Commission), after paragraph 11
there is inserted—
10
“Political restrictions on staff
11A   (1)
A person may not be appointed as a member of the staff of the
Commission if the person—
(a)
is an officer or employee of a registered party or of any
accounting unit of such a party;
15
(b)
holds a relevant elective office (within the meaning of
Schedule 7);
(c)
has at any time within the relevant period (see sub-paragraph
(2))—
(i)
been such an officer or employee as is mentioned in
20
paragraph (a), or
(ii)
held such an office as is mentioned in paragraph (b),
or
(iii)
been named as a donor in the register of donations
reported under Chapter 3 or 5 of Part 4, or
25
(iv)
been named as a participant in the register of
recordable transactions reported under Part 4A.
      (2)
The relevant period is—
(a)
in relation to appointment as chief executive of the
Commission, the last five years;
30
(b)
in relation to appointment to a post on the staff of the
Commission that is designated by a notice in force under
paragraph 11B, the period (immediately preceding the
appointment) specified by the notice;
(c)
in relation to appointment as any other member of the staff of
35
the Commission, the last 12 months.
      (3)
A member of a registered party may not be appointed as chief
executive of the Commission.
      (4)
The appointment of any member of the staff of the Commission shall
terminate—
40
(a)
in the case of the chief executive, on the occurrence of such an
event as is mentioned in any of paragraphs (a) to (d) of
paragraph 3(3);
(b)
in any other case, on the occurrence of such an event as is
mentioned in any of paragraphs (a) to (ca) of paragraph 3(3).
45

Political Parties and Elections Bill
Part 1 — The Electoral Commission
6

11B   (1)
The chief executive of the Commission may by giving notice to the
Speaker’s Committee—
(a)
designate a particular post on the staff of the Commission,
and
(b)
specify as the relevant period for that post, for the purposes
5
of paragraph 11A(2)(b), a period of two years or more,

if the chief executive reasonably believes that it is necessary to do so
in order to maintain public confidence in the effectiveness of the
Commission in carrying out any of its functions.
      (2)
The period specified under sub-paragraph (1)(b) may not be more
10
than five years.
      (3)
In deciding what that period should be, the chief executive of the
Commission shall take into account—
(a)
the level of seniority of the post;
(b)
how likely it is that any holder of the post will be required to
15
deal with politically sensitive matters.
      (4)
Each notice under sub-paragraph (1) must relate to only one post.
      (5)
A notice under sub-paragraph (1)—
(a)
has effect from the day on which it is received by the
Speaker’s Committee, and
20
(b)
(subject to sub-paragraphs (6) and (7)) expires at the end of
the period of three years beginning with that day.
      (6)
Sub-paragraph (5)(b) does not prevent a further notice being given
under sub-paragraph (1) in relation to the post in question, either—
(a)
before the previous notice would have expired, or
25
(b)
at any time after the expiry of the previous notice.

A further notice received by the Speaker’s Committee before the
previous notice would have expired supersedes the previous notice.
      (7)
If the chief executive of the Commission gives notice (a “cancellation
notice”) to the Speaker’s Committee cancelling a notice under sub-
30
paragraph (1), the notice under that sub-paragraph ceases to have
effect—
(a)
on the day on which the cancellation notice is received by the
Speaker’s Committee, or
(b)
(if later) on such date as may be specified in the cancellation
35
notice.
      (8)
Before giving a notice under this paragraph the chief executive of the
Commission shall consult the Speaker’s Committee.
      (9)
The Commission shall publish, in such manner as they consider
appropriate, information setting out the effect of all notices under
40
sub-paragraph (1) that are in force at any particular time.”
(3)
The amendment made by subsection (2) does not apply to the appointment of
a person—
(a)
to assist the Boundary Committee for England in the performance of its
functions,
45

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
7

(b)
to assist the Commission in carrying out functions transferred to them
by an order under section 18(1) of the 2000 Act (transfer of functions of
Local Government Commission for England), or
(c)
to perform duties including either or both of those.
Part 2
5
Political donations etc and expenditure
Donations
8
Declaration as to source of donation
(1)
In section 54 of the 2000 Act (permissible donors), in subsection (1)
(circumstances in which party may not accept donation), after paragraph (a)
10
there is inserted—
“(aa)
in the case of a donation of an amount exceeding £7,500, the
party has not been given a declaration as required by that
section; or”.
(2)
After that section there is inserted—
15
“54A
Declaration as to source of donation
(1)
Where a person (P) causes an amount exceeding £7,500 to be received
by a registered party by way of a donation, a written declaration must
be given to the party—
(a)
by P, if P is an individual, or
20
(b)
if not, by an individual authorised by P to make the declaration,

stating, to the best of the individual’s knowledge and belief, whether or
not subsection (2) applies to the donation.
(2)
This subsection applies to the donation if—
(a)
a person other than P has provided, or is expected to provide,
25
money or any other benefit to P with a view to, or otherwise in
connection with, the making of the donation, and
(b)
the money, or the value of the benefit, is more than £7,500.
(3)
Where a declaration under this section contains a statement to the effect
that subsection (2) applies to the donation, it must also—
30
(a)
state whether or not, in the opinion of the person making the
declaration—
(i)
subsection (4) of section 54 applies to the donation;
(ii)
subsection (6) of that section applies to it;
(b)
if the person’s opinion is that neither of those subsections
35
applies to the donation, give the person’s reasons for that
opinion.
(4)
A declaration under this section must also state the full name and
address of the person by whom it is made and, where subsection (1)(b)
applies—
40
(a)
state that the person is authorised by P to make the declaration;
(b)
describe the person’s role or position in relation to P.

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
8

(5)
A person who knowingly or recklessly makes a false declaration under
this section commits an offence.
(6)
Regulations made by the Secretary of State may make provision as to
how the value of a benefit is to be calculated for the purposes of
subsection (2).”
5
(3)
In section 56 of the 2000 Act (acceptance or return of donations: general), in
subsection (2) (steps to be taken if donation to be refused)—
(a)
in paragraph (a), for “section 54(1)(b)” there is substituted “section
54(1)(aa) or (b)”;
(b)
after that paragraph there is inserted—
10
“(aa)
if the donation falls within section 54(1)(aa) (but not
section 54(1)(b)), the donation, or a payment of an
equivalent amount, must be sent back to the person
appearing to be the donor,”;
(c)
in paragraph (b), for “that provision” there is substituted “section
15
54(1)(b)”.
(4)
Before subsection (4) of that section there is inserted—
“(3B)
Where—
(a)
subsection (2)(aa) applies in relation to a donation, and
(b)
the donation is not dealt with in accordance with that provision,
20

the party and the treasurer of the party are each guilty of an offence.”
(5)
In Schedule 6 to the 2000 Act (details to be given in donation reports), after
paragraph 1 there is inserted—
“Declarations as to source of donation
1A    (1)
In relation to each recordable donation in the case of which a
25
declaration under section 54A has been given, a quarterly or weekly
report must either—
(a)
state that no reason was found to think that the declaration
was untruthful or inaccurate, or
(b)
give details of any respects in which the declaration was
30
found or suspected to be untruthful or inaccurate.”
(6)
In paragraph 6 of that Schedule (donations from impermissible donors)—
(a)
in the heading, at the end there is inserted “or without required
declaration”;
(b)
for “section 54(1)(a)” there is substituted “section 54(1)(a) or (aa)”;
35
(c)
in paragraph (a), after “the donor” there is inserted “or the person
appearing to be the donor”;
(d)
in paragraph (b), for “section 56(2)(a)” there is substituted “section
56(2)(a) or (aa)”.
(7)
In Schedule 20 to the 2000 Act (penalties) the following entry is inserted at the
40
appropriate place—

“Section 54A(5) (making a false
On summary conviction in

declaration as to source of
England and Wales or Scotland:

donation)
statutory maximum or 12 months

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
9

On summary conviction in

Northern Ireland: statutory

maximum or 6 months

On indictment: fine or 1 year”.

(8)
Schedule 3 has effect.
5

That Schedule makes amendments to—
(a)
Schedules 7, 11 and 15 to the 2000 Act (control of donations to
individuals and members associations; to recognised third parties; and
to permitted participants), and
(b)
Schedule 20 to the 2000 Act (penalties),
10

corresponding to those made by subsections (1) to (7).
(9)
The Secretary of State, after consulting the Electoral Commission, may make an
order that—
(a)
amends or modifies a provision of the 2000 Act inserted by this section
or Schedule 3 so far as it applies in relation to Northern Ireland;
15
(b)
makes provision that is consequential on or supplemental to that made
by virtue of paragraph (a) (including provision amending or modifying
any provision of the 2000 Act).
(10)
The power to make an order under subsection (9) is exercisable by statutory
instrument.
20
(11)
No order may be made under subsection (9) unless a draft of the instrument
containing the order has been laid before and approved by a resolution of each
House of Parliament.
9
Defence to charge of failing to return donation from impermissible donor
In section 56 of the 2000 Act (acceptance or return of donations: general), after
25
subsection (3) there is inserted—
“(3A)
Where a party or its treasurer is charged with an offence under
subsection (3), it shall be a defence to prove that—
(a)
all reasonable steps were taken by or on behalf of the party to
verify (or ascertain) whether the donor was a permissible
30
donor, and
(b)
as a result, the treasurer believed the donor to be a permissible
donor.”
Offences
10
“Reasonable excuse” in relation to certain offences under the 2000 Act
35
(1)
The 2000 Act is amended as follows.
(2)
In section 47 (failure by registered party to submit proper statement of
accounts to Commission)—
(a)
in paragraph (a) of subsection (1), after “are” there is inserted “, without
reasonable excuse,”;
40
(b)
in paragraph (b) of that subsection, after “is” there is inserted “, without
reasonable excuse,”;

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
10

(c)
subsections (2) and (3) are omitted.
(3)
In section 65 (submission of donation reports to Commission)—
(a)
in subsections (3) and (4), after “commits an offence if” there is inserted
“, without reasonable excuse,”;
(b)
subsection (5) is omitted.
5
(4)
In section 71S (submission of transaction reports to Commission)—
(a)
in subsections (4) and (5), after “commits an offence if” there is inserted
“, without reasonable excuse,”;
(b)
subsection (6) is omitted.
(5)
In paragraph 12 of Schedule 7 (failure to deliver donation report)—
10
(a)
in sub-paragraph (1), between “is” and “not delivered” there is inserted
“, without reasonable excuse”;
(b)
in sub-paragraph (2), after “which” there is inserted “, without
reasonable excuse,”;
(c)
sub-paragraph (3) is omitted.
15
(6)
In paragraph 12 of Schedule 7A (failure to deliver transaction report)—
(a)
in sub-paragraph (1), between “is” and “not delivered” there is inserted
“, without reasonable excuse,”;
(b)
in sub-paragraph (2), after “which” there is inserted “, without
reasonable excuse,”;
20
(c)
sub-paragraph (3) is omitted.
Responsible persons and compliance officers
11
Control of donations to members associations: responsible persons
(1)
Schedule 7 to the 2000 Act (control of donations to members associations etc) is
amended as set out in subsections (2) to (4).
25
(2)
In paragraph 1(9) (meaning of “the responsible person”), for paragraph (b)
there is substituted—
“(b)
otherwise, the person who is the responsible person by virtue
of a notice in force under paragraph 1A.”
(3)
After paragraph 1 there is inserted—
30
“Appointment of responsible person by members association with no treasurer
1A    (1)
A members association which does not have a treasurer—
(a)
may appoint an individual to be the responsible person in
relation to the association by giving notice to the
Commission;
35
(b)
shall do so within the period of 30 days beginning with the
date on which the association—
(i)
accepts a controlled donation which is a recordable
donation for the purposes of paragraph 10, or
(ii)
receives a controlled donation falling within
40
paragraph 6(1)(a) or (b),

if a notice under this sub-paragraph is not in force on that
date.

Political Parties and Elections Bill
Part 2 — Political donations etc and expenditure
11

      (2)
A notice under sub-paragraph (1)—
(a)
must be signed on behalf of the members association;
(b)
must contain a statement signed by the individual to be
appointed as the responsible person confirming that the
individual is willing to be appointed.
5
      (3)
A notice under sub-paragraph (1) must state—
(a)
the name and address of the members association;
(b)
the full name of the individual to be appointed as the
responsible person;
(c)
the individual’s home address in the United Kingdom, or (if
10
there is no such home address) the individual’s home
address elsewhere.
      (4)
Subject to the following provisions of this paragraph, a notice under
sub-paragraph (1) (“the original notice”)—
(a)
shall be in force as from the date on which it is received by the
15
Commission, but
(b)
shall lapse at the end of the period of 12 months beginning
with that date unless the members association or the
responsible person gives the Commission a notice (a
“renewal notice”) that they both wish the original notice to
20
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
would otherwise have lapsed (whether under sub-paragraph
25
(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.
      (6)
A renewal notice must either—
30
(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
with the relevant provision of sub-paragraph (3).
35

A renewal notice must be signed on behalf of the members
association and by the responsible person.
      (7)
The members association or the responsible person may, at any time
after giving the original notice, give the Commission a notice (a
“notice of alteration”) indicating that any statement contained in the
40
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 (3).
      (8)
A notice of alteration must be signed—
45
(a)
on behalf of the members association, and