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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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(a)   

a person other than P has provided, or is expected to provide,

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

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that subsection (2) applies to the donation, it must also—

(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;

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(b)   

if the person’s opinion is that neither of those subsections

applies to the donation, give the person’s reasons for that

opinion.

(4)   

A declaration under this section must also state that the person P is

resident in the United Kingdom for the purposes of Part 14 of the

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Income Tax Act 2007 and is not a non-domiciled United Kingdom

resident.

(5)   

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—

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(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.

(6)   

A person who knowingly or recklessly makes a false declaration under

this section commits an offence.

(7)   

Regulations made by the Secretary of State may make provision as to

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how the value of a benefit is to be calculated for the purposes of

subsection (2).”

(4)   

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

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54(1)(aa) or (b)”;

(b)   

after that paragraph there is inserted—

“(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

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appearing to be the donor,”;

(c)   

in paragraph (b), for “that provision” there is substituted “section

54(1)(b)”.

(5)   

Before subsection (4) of that section there is inserted—

“(3B)   

Where—

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(a)   

subsection (2)(aa) applies in relation to a donation, and

(b)   

the donation is not dealt with in accordance with that provision,

   

the party and the treasurer of the party are each guilty of an offence.”

(6)   

In Schedule 6 to the 2000 Act (details to be given in donation reports), after

 
 

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

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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

declaration under section 54A has been given, a quarterly or weekly

report must either—

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(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

found or suspected to be untruthful or inaccurate.”

(7)   

In paragraph 6 of that Schedule (donations from impermissible donors)—

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(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)”;

(c)   

in paragraph (a), after “the donor” there is inserted “or the person

appearing to be the donor”;

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(d)   

in paragraph (b), for “section 56(2)(a)” there is substituted “section

56(2)(a) or (aa)”.

(8)   

In Schedule 20 to the 2000 Act (penalties) the following entry is inserted at the

appropriate place—

 

“Section 54A(6) (making a false

On summary conviction in

 

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declaration as to source of

England and Wales or Scotland:

 
 

donation)

statutory maximum or 12 months

 
  

On summary conviction in

 
  

Northern Ireland: statutory

 
  

maximum or 6 months

 

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On indictment: fine or 1 year”.

 

(9)   

Schedule 3 has effect.

   

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

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to permitted participants), and

(b)   

Schedule 20 to the 2000 Act (penalties),

   

corresponding to those made by subsections (1) and (3) to (8).

(10)   

The Secretary of State, after consulting the Electoral Commission, may make an

order that—

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(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;

(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).

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(11)   

The power to make an order under subsection (10) is exercisable by statutory

instrument.

 
 

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

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(12)   

No order may be made under subsection (10) unless a draft of the instrument

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

House of Parliament.

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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

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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

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donor, and

(b)   

as a result, the treasurer believed the donor to be a permissible

donor.”

Offences

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“Reasonable excuse” in relation to certain offences under the 2000 Act

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(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,”;

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(b)   

in paragraph (b) of that subsection, after “is” there is inserted “, without

reasonable excuse,”;

(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

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“, without reasonable excuse,”;

(b)   

subsection (5) is omitted.

(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,”;

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(b)   

subsection (6) is omitted.

(5)   

In paragraph 12 of Schedule 7 (failure to deliver donation 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

35

reasonable excuse,”;

(c)   

sub-paragraph (3) is omitted.

(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,”;

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(b)   

in sub-paragraph (2), after “which” there is inserted “, without

reasonable excuse,”;

(c)   

sub-paragraph (3) is omitted.

 
 

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

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Responsible persons and compliance officers

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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).

(2)   

In paragraph 1(9) (meaning of “the responsible person”), for paragraph (b)

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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—

“Appointment of responsible person by members association with no treasurer

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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;

(b)   

shall do so within the period of 30 days beginning with the

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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

paragraph 6(1)(a) or (b),

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

date.

      (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

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appointed as the responsible person confirming that the

individual is willing to be appointed.

      (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

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responsible person;

(c)   

the individual’s home address in the United Kingdom, or (if

there is no such home address) the individual’s home

address elsewhere.

      (4)  

Subject to the following provisions of this paragraph, a notice under

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sub-paragraph (1) (“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 members association or the

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responsible person gives the Commission a notice (a

“renewal notice”) that they both wish the original notice to

remain in force.

      (5)  

A renewal notice—

 
 

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

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(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

(4)(b) or on the expiry of a previous extension under this sub-

paragraph);

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(b)   

must be received by the Commission during the period of

one month ending at that time.

      (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

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(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).

           

A renewal notice must be signed on behalf of the members

association and by the responsible person.

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      (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

original notice, as it has effect for the time being, is replaced by some

other statement—

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(a)   

contained in the notice of alteration, and

(b)   

conforming with the relevant provision of sub-paragraph (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.

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      (8)  

A notice of alteration must be signed—

(a)   

on behalf of the members association, and

(b)   

by the responsible person or, in the case of a notice

substituting a different individual as the responsible person,

by that individual.

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      (9)  

A notice under sub-paragraph (1) that has been in force for at least 12

months ceases to have effect on receipt by the Commission of a notice

terminating it (a “notice of termination”)—

(a)   

given by and signed on behalf of the members association, or

(b)   

given and signed by the responsible person.

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     (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

notice was signed both on behalf of the members association and by

the responsible person).

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     (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

relation to the association.

     (12)  

A notice under the Schedule 7A version of this paragraph also has

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effect as a notice under this paragraph.

 
 

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

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The “Schedule 7A version” of this paragraph means this paragraph

as it applies, in relation to controlled transactions, by virtue of

paragraph 1(7A) of Schedule 7A.

Offence of failing to comply with paragraph 1A

1B         

A members association commits an offence if—

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(a)   

it is subject to the requirement in paragraph 1A(1)(b), and

(b)   

without reasonable excuse it fails to comply with the

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

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words following paragraph (b) there is substituted—

“(a)   

in the case of a regulated donee other than a members

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.”

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(5)   

In Schedule 20 to the 2000 Act the following entry is inserted at the appropriate

place—

 

“Paragraph 1B of Schedule 7

On summary conviction: Level 5”.

 
 

(failure by members association to

  
 

comply with requirement to

  

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appoint responsible person)

  

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Control of donations to holders of elective office: compliance officers

(1)   

In Schedule 7 to the 2000 Act (control of donations to individuals etc), at the

end there is inserted—

“Part 7

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Compliance officers

Functions and liabilities of compliance officers

17    (1)  

A regulated donee who is the holder of a relevant elective office (the

“office-holder”) may, by giving a notice to the Commission which

complies with paragraph 18(1), appoint an individual as compliance

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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

8, or under paragraph 10, 11 or 13, may be discharged either

by the office-holder or by the compliance officer;

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(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

be charged with any offence under those provisions);

 
 

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

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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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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

knowingly gives the compliance officer any information relating

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to—

(a)   

the amount of any controlled donation made to the office-

holder, or

(b)   

the person or body making such a donation,

           

which is false in a material particular.

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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

appointed as compliance officer confirming that the

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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,

(c)   

the office-holder’s home address in the United Kingdom, or

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(if there is no such home address) the office-holder’s home

address elsewhere, and

(d)   

if the office-holder is a member of a registered party, the

party’s registered name and the address of its registered

headquarters.

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      (3)  

A notice under paragraph 17 must also state—

(a)   

the full name of the individual to be appointed as compliance

officer,

(b)   

if the individual holds a relevant elected office, what that

office is,

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(c)   

the individual’s home address in the United Kingdom, or (if

there is no such home address) the individual’s home

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

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headquarters.

      (4)  

Subject to the following provisions of this paragraph, a notice under

paragraph 17 (“the original notice”)—

(a)   

shall be in force as from the date on which it is received by the

Commission, but

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(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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