Political Parties and Elections Act 2009

Part 1 — The Electoral Commission

Functions of Electoral Commission

Compliance with controls imposed by the 2000 Act etc

1

• (1) In the Political Parties, Elections and Referendums Act 2000 (c. 41) (“the 2000 Act”) section 145 (general function of Commission with respect to monitoring compliance with controls imposed by that Act etc) is amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) After subsection (6) there is inserted—

(6A) The Commission may prepare and publish guidance setting out, in relation to any requirement referred to in subsection (1), their opinion on any of the following matters— (a) what it is necessary, or is sufficient, to do (or avoid doing) in order to comply with the requirement; (b) what it is desirable to do (or avoid doing) in view of the purpose of the requirement.

Increased thresholds in relation to donations etc

2

• (1) For section 146 of the 2000 Act there is substituted—

(146) Schedule 19B makes provision about the investigatory powers of the Commission.

• (2) Before Schedule 20 to the 2000 Act there is inserted, as Schedule 19B, the Schedule set out in Schedule 1 to this Act.

• (3) In Schedule 20 to the 2000 Act the following entries are inserted at the appropriate place—

Paragraph 13(1) of Schedule 19B (failure to comply with investigation requirement)	On summary conviction: Level 5
Paragraph 13(2) of Schedule 19B (intentional obstruction of person exercising investigatory power)	On summary conviction: Level 5
Paragraph 13(3) of Schedule 19B (providing false information in purported compliance with investigation requirement)	On summary conviction in England and Wales or Scotland: statutory maximum or 12 monthsOn summary conviction in Northern Ireland: statutory maximum or 6 monthsOn indictment: fine or 1 year

.

Civil sanctions

3

• (1) For section 147 of the 2000 Act (civil penalty for failure to deliver documents etc) there is substituted—

(147) Schedule 19C makes provision for civil sanctions in relation to— (a) the commission of offences under this Act; (b) the contravention of restrictions or requirements imposed by or by virtue of this Act.

• (2) After Schedule 19B to the 2000 Act (inserted by section 2 above) there is inserted, as Schedule 19C, the Schedule set out in Schedule 2 to this Act.

• (3) In Schedule 20 to the 2000 Act the following entry is inserted at the appropriate place—

Paragraph 14 of Schedule 19C (failure to comply with stop notice)	On summary conviction in England and Wales or Scotland: £20,000 or 12 monthsOn summary conviction in Northern Ireland: £20,000 or 6 monthsOn indictment: fine or 2 years

.

• (4) In section 156 of the 2000 Act (orders and regulations), after subsection (4) there is inserted—

(4A) An order under paragraph 16 of Schedule 19C that contains— (a) provision made by virtue of paragraph 1(1), (2), (3), (4) or (5), paragraph 5(1), (2), (3) or (4), paragraph 10(2)(b) or (3)(b) or paragraph 15(1)(a) of that Schedule, or (b) provision amending an Act, shall not be made unless a draft of the statutory instrument containing the order has been laid before, and approved by a resolution of, each House of Parliament; and subsection (2) does not apply to such an order.

Electoral Commissioners etc

Selection of prospective Electoral Commissioners and Commission chairman

4

• (1) Section 3 of the 2000 Act (appointment of Electoral Commissioners etc) is amended as follows.

• (2) For subsection (2) there is substituted—

(2) A motion for such an Address may be made only if— (a) the Speaker of the House of Commons agrees that the motion may be made; (b) the motion has been the subject of consultation with the registered leader of each registered party to which two or more Members of the House of Commons then belong; and (c) each person whose appointment is proposed in the motion has been selected in accordance with a procedure put in place and overseen by the Speaker's Committee.

• (3) After subsection (5) there is inserted—

(5A) In the case of a re-appointment (or further re-appointment) of an Electoral Commissioner, the reference in subsection (2)(c) to being selected in accordance with a procedure put in place and overseen by the Speaker's Committee is to be read as including a reference to being recommended for re-appointment (or further re-appointment) by that Committee.

Four Electoral Commissioners to be persons put forward by parties

5

• (1) In section 3 of the 2000 Act, after subsection (4) (political restrictions on Electoral Commissioners) there is inserted—

(4A) Paragraphs (a) and (d) of subsection (4) do not apply to the appointment of a person as a nominated Commissioner (within the meaning of section 3A).

• (2) After that section there is inserted—

(3A) (1) Four of the Electoral Commissioners shall each be a person whom the registered leader of a qualifying party put forward to be considered for appointment as an Electoral Commissioner (a “nominated Commissioner”). (2) In subsection (1) “qualifying party” means a registered party with two or more Members of the House of Commons at the time of the person's appointment. (3) Three of the nominated Commissioners shall each be a person put forward by the registered leader of one of the three largest nominating parties at the time of the person's appointment. (4) In subsection (3) “nominating party” means a party whose registered leader— (a) has put forward three persons to be considered for appointment as a nominated Commissioner, or (b) previously put forward persons one of whom was appointed as a nominated Commissioner and is expected to continue to hold office. (5) No appointment may be made that would result in two or more nominated Commissioners being persons put forward by the leader of the same party (and nothing in this section has effect so as to require that result). (6) A nominated Commissioner may not be appointed as the chairman of the Commission. (7) For the purposes of this section, the relative size of any two or more registered parties shall be determined according to the number of Members of the House of Commons belonging to each party at the time in question (or, in the case of two parties with the same number of Members, according to the total number of votes cast for persons standing for election in the name of each of those parties at the most recent parliamentary general election). (8) A reference in this section to a Member of the House of Commons does not include any Member of that House who at the time in question— (a) has not made and subscribed the oath required by the Parliamentary Oaths Act 1866 (or the corresponding affirmation), or (b) is disqualified from sitting and voting in that House.

• (3) In section 14 of the 2000 Act (Boundary Committees), in subsection (4), for “an Electoral Commissioner or a deputy Electoral Commissioner” there is substituted “ an Electoral Commissioner who is not a nominated Commissioner (within the meaning of section 3A), or a deputy Electoral Commissioner, ”.

Number of Electoral Commissioners

6

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 ”.

Political restrictions on Electoral Commissioners and staff

7

• (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—

(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; (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 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 (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; (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 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— (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). (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 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 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 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 (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 (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-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 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 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,

• (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.

Education about systems of government and EU institutions

8

In section 13 of the 2000 Act (education about electoral and democratic systems), paragraphs (b) and (c) of subsection (1) (Commission's duty to promote public awareness of systems of government and EU institutions) are omitted.

Part 2 — Political donations etc and expenditure

Donations etc

Declaration as to source of donation

9

• (1) In section 54 of the 2000 Act (permissible donors), in subsection (1) (circumstances in which party may not accept donation), after paragraph (a) 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 section 54A; or

.

• (2) After that section there is inserted—

(54A) (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 (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, 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— (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 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— (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. (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).

• (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—

(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 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, 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—

(1A) 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— (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.

• (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) ”;

• (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 appropriate place—

Section 54A(5) (making a false declaration as to source of donation)	On summary conviction in England and Wales or Scotland: statutory maximum or 12 monthsOn summary conviction in Northern Ireland: statutory maximum or 6 monthsOn indictment: fine or 1 year

.

• (8) 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 to permitted participants), and

• (b) Schedule 20 to the 2000 Act (penalties),

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;

• (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.

• (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.

Non-resident donors etc

10

• (1) In section 54 of the 2000 Act (permissible donors), in subsection (1) (circumstances in which party may not accept donation), for paragraph (aa) (inserted by section 9 above) there is substituted—

(aa) any declaration required to be made in respect of the donation by section 54A or 54B has not been received by the party; or

.