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Political Parties and Elections Bill


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

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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

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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

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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

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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)

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or (3).

           

A notice of alteration takes effect on the day on which it is received

by the Commission or (if later) on such date as may be specified in

the notice.

      (8)  

A notice of alteration must be signed—

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(a)   

by the office-holder, and

(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

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Commission of a notice terminating it (a “notice of termination”)

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

40

both by the office-holder and by the compliance officer).

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

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they may determine and shall contain, in the case of each such notice,

 
 

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

16

 

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

5

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

 

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donations)

  
  

On summary conviction in

 
  

Northern Ireland: statutory

 
  

maximum or 6 months

 
  

On indictment: fine or 1 year”.

 

20

14      

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

25

association)” are omitted;

(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

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controlled donations.

     (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

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recordable transaction for the purposes of

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

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a notice under the Schedule 7A version of that paragraph.

 
 

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

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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

5

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.”

10

15      

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

15

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,

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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));

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(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

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transaction entered into by the office-holder at a time when the

notice was not in force.”

16      

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.

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(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

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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,

 
 

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

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(b)   

an individual who gives a notification under subsection (1) at

the same time, or

(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.

5

   

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”.”

(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

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88(1) (“the original notification”) that was given before the

commencement of this section, and

(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

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another third party,

   

the renewal notification must indicate (under section 88(6)(b)) that the

statement is replaced by a statement naming someone who is not the

responsible person in relation to another third party.

Unincorporated associations

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17      

Reports of gifts received by unincorporated associations making political

contributions

(1)   

After section 140 of the 2000 Act there is inserted—

“Reports to Commission by unincorporated associations making political contributions

140A    

   Reports of gifts received by unincorporated associations

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Schedule 19A, which requires unincorporated associations making

political contributions to report gifts received by them to the

Commission, has effect.”

(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.

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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)

  

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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

 

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Northern Ireland: statutory

 
  

maximum or 6 months

 
 
 

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

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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:

 
 

notification or report)

statutory maximum or 12 months

 
  

On summary conviction in

 

5

  

Northern Ireland: statutory

 
  

maximum or 6 months

 
  

On indictment: fine or 1 year”.

 
 

(4)   

In section 62 of the Electoral Administration Act 2006 (c. 22) (regulation of

loans: power to make provision for candidates, third parties and referendums),

10

after subsection (3) there is inserted—

“(3A)   

The provision that may be made by virtue of subsection (3)(e) includes,

in particular, provision amending paragraph 1 of Schedule 19A to the

2000 Act (requirement for unincorporated associations to notify

Commission of political contributions over £25,000) so that, in the case

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of a recognised third party or a permitted participant in a referendum,

a “political contribution” includes a relevant matter.”

(5)   

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

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Schedule 4 so far as it applies in relation to Northern Ireland;

(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).

(6)   

The power to make an order under subsection (5) is exercisable by statutory

25

instrument.

(7)   

No order may be made under subsection (5) unless a draft of the instrument

containing the order has been laid before and approved by a resolution of each

House of Parliament.

(8)   

In the Schedule inserted into the 2000 Act by Schedule 4 to this Act—

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(a)   

the reference in paragraph 1(1) to a calendar year does not include any

year before 2010;

(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

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18      

Increased thresholds in relation to donations etc

(1)   

In the following provisions of the 2000 Act, for “£200” there is substituted

“£500”—

section 52(2)(b);

section 54(4)(b) and (6)(b);

40

section 71F(12)(b);

in Schedule 7, paragraphs 4(3)(b) and 6(2) and (4)(b);

in Schedule 7A, paragraph 2(4)(b);

 
 

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

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in Schedule 11, paragraphs 4(2) and 6(4) and (6)(b);

in Schedule 15, paragraphs 4(2) and 6(5) and (7)(b).

(2)   

In the following provisions of the 2000 Act, for “£1,000” there is substituted

“£1,500”—

section 62(6A)(a) and (b), (7)(b) and (11)(b);

5

section 71M(7)(a) and (b), (8)(b) and (11)(b);

in Schedule 7, paragraph 10(1A)(a) and (b) and (2)(b);

in Schedule 7A, paragraph 9(2)(a) and (b) and (7)(b).

(3)   

In the following provisions of the 2000 Act, for “£5,000” there is substituted

“£7,500”—

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section 62(4)(a) and (b), (5)(b) and (11)(b);

section 63(3);

section 71M(4)(a) and (b), (5)(b) and (11)(b);

section 71Q(3);

in Schedule 7, paragraph 10(1A)(a) and (b) and (2)(b);

15

in Schedule 7A, paragraph 9(2)(a) and (b) and (7)(b);

in Schedule 11, paragraph 10(2)(a);

in Schedule 15, paragraph 10(2)(a).

(4)   

In section 155 of the 2000 Act (power to vary specified sums), after subsection

(2) there is inserted—

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“(3)   

Subsection (4) applies in relation to the sums specified in—

(a)   

Part 4;

(b)   

Part 4A;

(c)   

Schedule 11;

(d)   

Schedule 15;

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(e)   

Schedule 19A.

(4)   

In each Parliament, other than a Parliament that is dissolved less than

two years after the date of its first sitting, the Secretary of State must

either—

(a)   

make an order in pursuance of subsection (2)(a), or

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(b)   

lay before Parliament a statement setting out the Secretary of

State’s reasons for not doing so.”

(5)   

The amendment made by subsection (4) does not apply in relation to the

Parliament during which this Act is passed.

Election expenses

35

19      

Limitation of pre-candidacy election expenses for certain general elections

(1)   

In the Representation of the People Act 1983 (c. 2) (“the 1983 Act”), after section

76 there is inserted—

“76ZA   

  Limitation of pre-candidacy election expenses for certain general

elections

40

(1)   

This section applies where —

 
 

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

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(a)   

a Parliament is not dissolved until after the period of 55 months

beginning with the day on which that Parliament first met (“the

55-month period”),

(b)   

election expenses are incurred by or on behalf of a candidate at

the parliamentary general election which follows the

5

dissolution, and

(c)   

the expenses are incurred in respect of a matter which is used

during the period beginning immediately after the 55-month

period and ending with the day on which the person becomes a

candidate at that election.

10

   

For the purposes of this section, section 90ZA(1) has effect with the

omission of the words “after the date when he becomes a candidate at

the election”.

(2)   

Election expenses incurred as mentioned in subsection (1) must not in

the aggregate exceed the permitted amount, which is the relevant

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percentage of the following sum—

(a)   

for a candidate at an election in a county constituency, £25,000

plus 7p for every entry in the register of electors;

(b)   

for a candidate at an election in a borough constituency, £25,000

plus 5p for every entry in the register of electors.

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(3)   

The relevant percentage is—

(a)   

100% where the dissolution was during the 60th month of the

Parliament;

(b)   

90% where the dissolution was during its 59th month;

(c)   

80% where the dissolution was during its 58th month;

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(d)   

70% where the dissolution was during its 57th month;

(e)   

60% where the dissolution was during its 56th month.

   

For the purposes of this subsection, the “56th month” of a Parliament is

the month beginning immediately after the 55-month period; and so on.

(4)   

In subsection (2) above “the register of electors” means the register of

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parliamentary electors for the constituency in question as it has effect

on the last day for publication of notice of the election.

(5)   

Where election expenses are incurred as mentioned in subsection (1) in

excess of the permitted amount, any candidate or election agent who—

(a)   

incurred, or authorised the incurring of, the election expenses,

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and

(b)   

knew or ought reasonably to have known that the expenses

would be incurred in excess of that amount,

   

shall be guilty of an illegal practice.

(6)   

The candidate’s personal expenses do not count towards the permitted

40

amount.”

(2)   

The amendments made by this section do not apply in relation to any

expenses—

(a)   

incurred before the commencement of this section, or

(b)   

incurred in respect of any matters used before 1 January 2010.

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