Bill 10 - An Act to Amend the Political Process Financing Act

BILL 10

An Act to Amend the Political Process Financing Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 The Political Process Financing Act, chapter P-9.3 of the Acts of New Brunswick, 1978, is amended by adding after section 84 the following:

THIRD PARTY ADVERTISING

Definitions

84.1 The following definitions apply in this section and in sections 84.15 to 84.9.

“campaign period” means the period beginning with the issue of a writ for an election and ending on polling day. (campagne électorale)

“chief financial officer” means a third party’s chief financial officer appointed in accordance with subsection 84.35(1) or (3). (directeur des finances)

“election advertising” means a message transmitted to the public by any means during a campaign period that promotes or opposes a registered political party or the election of a candidate or takes a position on an issue with which a registered political party or a candidate is associated, but does not include the following: (publicité électorale)

(a) the transmission to the public of an editorial, a debate, a speech, an interview, a column, a letter, a commentary or news;

(b) the distribution of a book, or the promotion of the sale of a book, for no less than its commercial value, if it was planned that the book be made available to the public regardless of whether there was an election;

(c) the transmission of a document directly by a person or a group to its members, employees or shareholders, as the case may be; and

(d) the transmission by an individual, on a non-commercial basis, of his or her personal political views via the Internet.

“election advertising contribution” means a service, money or other property donated to a third party to support its election advertising, but does not include the following: (contribution pour publicité électorale)

(a) the donation by an individual of his or her personal services, talents or expertise or of the use of his or her vehicle and the product of that donation, if it is given freely and not as part of work provided by the individual in the service of an employer; and

(b) a loan granted for the purpose of election advertising at the current rate of interest in the market at the time it is granted.

“election advertising expense” means an amount paid, a liability incurred or the value of a non-monetary contribution accepted for the purpose of producing or transmitting election advertising. (dépense de publicité électorale)

“group” means a group of persons acting together by mutual consent for a common purpose, and includes a trade union. (groupe)

“registered third party” means a third party whose registration has been accepted by the Supervisor under subsection 84.4(1). (tiers enregistré)

“third party” means a person or group other than a registered political party, a registered district association or a candidate. (tiers)

Spending limits

84.15(1) For election advertising transmitted during the campaign period for a general election, a third party shall not incur election advertising expenses that in total exceed 1.3% of the amount calculated in accordance with paragraph 77(1)(a) and section 77.1 for a registered political party that has candidates in all of the Province’s electoral districts.

84.15(2) Not more than 10% of the total amount of allowable election advertising expenses calculated in accordance with subsection (1) shall be incurred for election advertising that relates to a single electoral district.

84.15(3) For the purposes of subsection (2), election advertising relates to a single electoral district if

(a) the election advertising promotes or opposes the election of one or more of the electoral district’s candidates, or

(b) the election advertising is transmitted in the electoral district in any of the following forms:

(i) handbills;

(ii) posters;

(iii) billboards;

(iv) electronic billboards;

(v) other types of signs.

84.15(4) For election advertising transmitted during the campaign period for a by-election, a third party shall not incur expenses for election advertising that relates to a single electoral district that in total exceed the amount calculated in accordance with subsection (2) for the most recently held general election.

Election advertising by third party

84.2(1) A third party shall identify itself in any election advertising that it places and shall indicate that it has authorized the advertising.

84.2(2) The identifying information required under subsection (1) shall include the following information:

(a) the name of the third party; and

(b) the name of the person responsible for the third party’s books and records and his or her telephone number or address.

84.2(3) No third party shall transmit to the public any election advertising that may lead the public to believe that the advertising originates with a registered political party, a registered district association or a candidate.

84.2(4) Section 117 of the Elections Act applies with the necessary modifications to election advertising by a third party.

Registration of third party

84.3(1) A third party shall register in accordance with this section immediately after incurring election advertising expenses that exceed $500 in total.

84.3(2) A third party may register in accordance with this section before incurring election advertising expenses that exceed $500 in total.

84.3(3) An application for registration shall be sent to the Supervisor and shall include the following information and documents:

(a) if the third party is an individual, the name, address, telephone number and signature of the individual;

(b) if the third party is a corporation, the following information:

(i) the name, address and telephone number of the corporation; and

(ii) the name, address, telephone number and signature of an officer who has signing authority for the corporation;

(i) the name, address and telephone number of the group; and

(ii) the name, address, telephone number and signature of the individual who is responsible for the group;

(d) the address and telephone number of the location where the third party’s books and records are kept and to which communications may be addressed;

(e) the name, address and telephone number of the third party’s chief financial officer;

(f) the name and address of each financial institution at which election advertising contributions to the third party will be deposited;

(g) the source of election advertising contributions received by the third party during the 6 months preceding the application for registration;

(h) a declaration signed by the third party’s chief financial officer accepting his or her appointment; and

(i) a declaration that the third party is acting independently of and not in collusion with a registered political party, a registered district association, a candidate or another third party.

84.3(4) An application under subsection (3) shall be on a form provided by the Supervisor.

84.3(5) A declaration under paragraph (3)(i) shall be signed by the individual or officer referred to in paragraph (3)(a) or subparagraph (3)(b)(ii) or (c)(ii), as the case may be.

84.3(6) The registration of a third party is only valid for the campaign period for which the application is made.

84.3(7) Despite subsection (6), after polling day, a third party that was registered under this section continues to be subject to the requirements to file reports under section 84.6 and to provide the Supervisor with any other information requested by him or her.

Chief financial officer

84.35(1) Before applying to register under section 84.3, a third party shall appoint a chief financial officer.

84.35(2) The following persons are not eligible to be the chief financial officer of a third party:

(a) a candidate;

(b) an official agent;

(d) an electoral district agent;

(e) an official representative or a deputy official representative;

(f) a member of the executive of a registered political party or a registered district association; and

(g) an election officer.

84.35(3) If a chief financial officer ceases to hold office, the third party shall immediately appoint a new chief financial officer and shall notify the Supervisor of his or her name, address and telephone number.

84.35(4) A chief financial officer shall be responsible for the following matters:

(a) ensuring that the third party complies with the provisions of this Act;

(b) accepting election advertising contributions made to the third party;

(d) maintaining the books, records and other documents of the third party; and

(e) filing the reports of the third party required under section 84.6.

84.35(5) A chief financial officer may authorize a person to accept election advertising contributions or incur election advertising expenses, but that authorization does not limit the responsibility of the chief financial officer under subsection (4).

Consideration of application

84.4(1) On receiving an application under section 84.3, the Supervisor shall determine if the requirements of subsections 84.3(1) to (5) and 84.35(1) have been met and shall notify the individual who signed the application whether the third party’s registration has been accepted.

84.4(2) The Supervisor may refuse to register a third party under a name if the Supervisor is of the opinion that the name or an abbreviation of that name is likely to be confused with the name or an abbreviation of the name of a registered political party, a registered district association or a candidate.

84.4(3) The Supervisor shall refuse to register the following as third parties:

(a) a registered political party;

(b) a registered district association;

(d) a member of the executive of a registered political party or a registered district association.

84.4(4) If the Supervisor refuses to register a third party, the Supervisor shall provide reasons to the third party for the refusal.

Contributions to third parties

84.5(1) A third party shall only accept election advertising contributions from the following:

(a) individuals who are ordinarily resident in the Province;

(b) trade unions; and

84.5(2) No third party shall accept an election advertising contribution from or on behalf of a registered political party, a registered district association, a candidate or a member of the Legislative Assembly.

84.5(3) No third party shall accept an election advertising contribution if the third party does not know the name and address of the contributor.

84.5(4) A corporation that makes an election advertising contribution to a third party that is valued at more than $100 shall disclose to the third party the name of a signing officer of the corporation or of the officer who authorized the contribution.

84.5(5) All election advertising contributions of money accepted by or on behalf of a registered third party shall be deposited to a financial institution referred to in paragraph 84.3(3)(f).

Advertising expenditure report

84.6(1) Within 90 days after polling day, a registered third party shall file an advertising expenditure report with the Supervisor.

84.6(2) An advertising expenditure report shall contain the following information:

(a) a list of all election advertising expenses incurred by the third party;

(b) details concerning the advertising to which the expenses referred to in paragraph (a) relate, including the time and place of the advertisement;

(c) the total value of election advertising contributions received by the third party, including election advertising contributions referred to in paragraph 83.3(3)(g);

(d) the following information with respect to each contributor to the third party:

(i) name;

(ii) address;

(iii) the class of the contributor under subsection 84.5(1);

(iv) the amount or value of the election advertising contribution; and

(v) the nature of the election advertising contribution;

(e) information disclosed to the third party under subsection 84.5(4);

(f) the following information with respect to any loan that the third party has been granted to finance its election advertising:

(i) the amount of the loan;

(ii) the rate of interest on the loan;

(iii) the grantor of the loan;

(iv) any guarantor of the loan;

(v) the term of the loan;

(vi) the repayment terms of the loan; and

(vii) the date on which the funds were disbursed to the third party;

(g) any outstanding liabilities to which the third party is subject; and

(h) any other source of funding used by the third party to finance its election advertising, including the third party’s own funds.

84.6(3) An advertising expenditure report shall be on a form provided by the Supervisor.

84.6(4) An advertising expenditure report shall include a signed declaration from the following individuals stating that the report is complete and accurate:

(a) the third party’s chief financial officer; and

(b) if the third party’s chief financial officer did not sign the application under subsection 84.3(3), the individual who signed the application.

84.6(5) If a registered third party has not incurred any election advertising expenses, this shall be indicated in its advertising expenditure report.

84.6(6) A third party shall provide the Supervisor with any additional information that he or she may request with respect to its election advertising expenses, election advertising contributions or any other matter related to its election advertising.

84.6(7) If a registered third party’s election advertising expenses exceed the sum of its election advertising contributions and the amount of any of its own funds it has used to finance its election advertising, the third party shall file a further report within 6 months after it has filed its advertising expenditure report, which further report shall contain the following information:

(a) the amount by which those expenses continue to exceed election advertising contributions and any amounts paid out of its own funds; and

(b) if the third party received election advertising contributions after its advertising expenditure report was filed, the name and address of each contributor and the value of the contributions.

84.6(8) A registered third party shall file a report under subsection (7) within 12 months after it last filed a report under that subsection if, when that report was filed, its election advertising expenses continued to exceed the sum of its election advertising contributions and any amounts that it paid out of its own funds to finance its election advertising.

Audit of expenditure report

84.7 The Supervisor may require that the reports of a third party under section 84.6 be audited by an accountant appointed by the Supervisor.

Circumvention of spending limits and other provisions

84.8(1) No third party shall circumvent or attempt to circumvent a limit set out in section 84.15 or the registration requirement set out in subsection 84.3(1) in any manner, including either of the following manners:

(a) by splitting itself into 2 or more third parties; or

(b) by acting in collusion with another third party so that their combined election advertising expenses exceed a prescribed limit.

84.8(2) No third party shall collude with a registered political party, a registered district association or a candidate to circumvent or attempt to circumvent the provisions of this Act.

84.8(3) No registered political party, registered district association or candidate shall collude with a third party to circumvent or attempt to circumvent the provisions of this Act.

Registry and other public information

84.9(1) The Supervisor shall maintain a registry of registered third parties.

84.9(2) The Supervisor shall maintain the registry for the period of time that he or she considers appropriate.

84.9(3) The registry shall include the information referred to in subsection 84.3(3) for each registered third party.

84.9(4) Subject to subsection (5), the registry and the reports filed with the Supervisor under section 84.6 shall be available to the public as follows:

(a) for inspection and copying at the office of the Supervisor during its regular office hours; and

(b) on the Elections New Brunswick website.

84.9(5) The information referred to in paragraph 84.6(2)(d) shall only be available to the public with respect to a contributor if the total value of its contributions are greater than $100.

2 Section 85 of the Act is amended

(a) in subsection (1)

(i) in paragraph (a) by striking out “or” at the end of the paragraph;

(ii) in paragraph (b) by striking out the period at the end of the paragraph and substituting a comma;

(iii) by adding after paragraph (b) the following:

(c) knowingly incurs or authorizes election advertising expenses exceeding the maximum fixed by subsection 84.15(1), (2) or (4), or

(d) wilfully makes a false statement in a report filed under section 84.6.

(b) by adding after subsection (3) the following:

85(4) A third party as defined in section 84.1, whose chief financial officer with the knowledge of the third party commits an offence under subsection (1), commits the same offence.

85(5) If a third party as defined in section 84.1 is a group, a member of the group commits the same offence under subsection (1) as an offence committed by the third party’s chief financial officer, if the chief financial officer commits the offence with the knowledge of the member.

3 Section 88.1 of the Act is amended

(a) by adding after subsection (2) the following:

88.1(2.1) A chief financial officer who wilfully or through neglect fails to file a report under section 84.6 within the time required by subsection 84.6(1), (7) or (8) commits an offence punishable under Part II of the Provincial Offences Procedure Act as a category H offence.

88.1(2.2) Despite subsection (2.1), the Supervisor may, either before or after the institution of proceedings against a chief financial officer for failure to file a report as required by section 84.6, accept from the chief financial officer alleged to have been guilty of the offence the payment of a sum equal to $50 for each day the chief financial officer is in default of filing the report.

(b) in subsection (3) by striking out “a financial return” and substituting “a financial return or a report”;

4 Schedule B of the Act is amended by striking out

83(3)...............	H
85(1)a)...............	H
85(1)b)...............	H
85(2)...............	H

and substituting the following:

83(3)...............	H
84.2(1)...............	H
84.2(3)...............	H
84.3(1)...............	H
84.5(1)...............	H
84.5(2)...............	H
84.5(3)...............	H
84.8(1)...............	H
84.8(2)...............	H
84.8(3)...............	H
85(1)(a)...............	H
85(1)(b)...............	H
85(1)(c)...............	H
85(1)(d)...............	H
85(2)...............	H
85(4)...............	H
85(5)...............	H

5 This Act comes into force on January 1, 2010.