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Electoral (Finance Reform and Advance Voting) Amendment Bill Government Bill Explanatory note General policy statement The Electoral (Finance Reform and Advance Voting) Amendment Bill (the Bill) amends the Electoral Act 1993 to provide a package of reforms to ensure greater certainty and transparency in the conduct of the electoral process and therefore support public confidence in the outcome of parliamentary elections.
These proposals are the result of a consultation process with the pub- lic and all parliamentary parties following the repeal of the Electoral Finance Act 2007.

The proposals in the Bill reflect areas of broad consensus achieved throughout this process with the aim of securing enduring law reform.

The Bill makes amendments in the following key areas of electoral law: promoters of election advertisements; electoral advertising; the regulated campaign period; campaign expenditure limits; and dona- tions.
The Bill also amends the advance voting rules, implementing a recommendation of the Justice and Electoral Committee.

Promoters of election advertisements Any group or person who is not a candidate or party and who is inter- ested in becoming part of the electoral process will still be able to do so.
Such a group or person, referred to as a promoter, will be able to 146—1 2 Electoral (Finance Reform and Advance Voting) Amendment Bill Explanatory note publish an election advertisement as long as the advertisement con- tains a promoter statement and their total costs (advertising expenses) do not exceed $12,000.

All promoters, including registered promoters, will be subject to the existing requirements in the Electoral Act 1993 to include their name and address on any election advertisement.
All promoters will also need to obtain the authorisation of any party or candidate prior to publishing an advertisement in their support.

It will be an offence for promoters to fail to comply with these requirements.

Promoters who spend, or intend to spend, over $12,000 on election advertising during the regulated period will be required to register with the Electoral Commission.
The registration threshold will apply only to third party promoters and not to constituency candidates or political parties, who will continue to be subject to campaign expend- iture limits.

The registration threshold will be adjusted at the rate of inflation annually subsequent to the 2011 general election.

The Bill does not contain an expenditure limit for promoters other than for constituency candidates and political parties.
The Electoral Commission will publish a register of registered pro- moters and their contact details.

Promoters will be required to keep records of their advertising ex- penses for a specified period of time.

Election advertisements The Bill provides a new stand-alone and modern definition of elec- tion advertisement that covers both positive and negative campaign- ing.

The new definition is media-neutral; it will apply consistently across the Electoral Act 1993 and provide clear exceptions.
The Bill addresses apportionment issues, including those raised by Peters v Clarkson (High Court Tauranga, CIV-2005-470-000719, 15 December 2005).

For example, the cost of dual-purpose election ad- vertisements by constituency candidates and parties can be appor- tioned based on coverage.

Apportionment is also provided for be- tween 2 or more parties.
The Electoral Commission will be required to provide upon request advisory opinions on whether a draft advertisement is an election ad- vertisement for the purposes of the Electoral Act 1993.
Draft publi- cations and any supporting materials provided to the Electoral Com- Explanatory note Electoral (Finance Reform and Advance Voting) Amendment Bill 3 mission, and the advisory opinion from the Electoral Commission, will be confidential for a specified period of time to protect the de- velopment of advertisements and election campaigns.
Regulated campaign period The start date of the regulated period will be linked to the date on which the Prime Minister announces the date of the general election.

This approach is intended to— • give candidates, parties, promoters, and other members of the public more certainty about when the regulated period applies; and avoid the retrospective application of the regulated period where an election is announced less than 3 months from polling day.
• The Electoral Commission will publish details about the start of the regulated period.

Campaign expenditure limits The Bill adjusts the expenditure limits for candidates and parties for the 2011 general election in line with inflation.

For subsequent elec- tions, the expenditure limits will be adjusted annually by Order in Council at the rate of inflation.
These adjustments are important to align with current costs and were recommended as part of the 1986 Royal Commission Report on the Electoral System.

Donations The donations regime introduced in the Electoral Finance Act 2007 was largely carried over into the Electoral Act 1993.

This Bill puts in place additional measures to strengthen the transparency of political party and candidate funding.

Political parties will be required to disclose, in bands, the sum of do- nations received.
The Bill also introduces the new concept of an “as- sociated entity” to enable donations and contributions to donations from closely associated companies to be treated as if they were made by the same donor for purposes of disclosure.

4 Electoral (Finance Reform and Advance Voting) Amendment Bill Explanatory note Advance voting The Bill also amends the special voting provisions in the Electoral Act 1993 and the Electoral Regulations 1996.
A person whose name appears on the main roll or any supplementary roll for an electoral district and who is qualified to vote in that district may vote as a special voter if they apply to vote within that district in person before polling day.

Such persons will not be required to complete a written declaration establishing eligibility.

Clause by clause analysis Clause 1 is the Title clause.

Clause 2 provides that the Bill comes into force on 1 January 2011.
Part 1 Amendments to principal Act Clause 3 provides that Part 1 amends the Electoral Act 1993.

Clause 4 amends the interpretation section to reflect the amendments made by the Bill.

Key terms are introduced, including advertising expenses.

Clause 5 inserts new sections 3A to 3C.

New section 3A sets out the meaning of election advertisement.

New section 3B sets out the meaning of regulated period.
In the case of a general election, the regulated period commences— • the day after the date on which the Prime Minister gives notice of polling day, if the period between that day and polling day is less than 3 months; or 3 months before polling day, if the period between the day after the date on which the Prime Minister gives notice of polling day and polling day is more than 3 months; or the day that is 3 months before the last possible polling day, if notice of polling day has not been given before that date.
In the case of a by-election, the regulated period commences on the day after the notice of the vacancy is published.

In all cases the regulated period ends on the close of the day before polling day.

New section 3C requires the Electoral Commission to publish details relating to the regulated period.

• • Explanatory note Electoral (Finance Reform and Advance Voting) Amendment Bill 5 Clause 6 amends section 61, which specifies the qualifications for voting as a special voter.
The amendment enables all electors who are on a printed roll for an electorate to vote in that electorate before polling day.

It will no longer be necessary to assert one of the spe- cial grounds (for example, intended absence from the electorate on polling day) in a statutory declaration.
Clause 7 inserts new Part 6AA, which deals with election advertising and is divided as follows: • • interpretation provision (new section 204A): subpart 1 (new sections 204B to 204K) sets out general rules governing election advertisements: subpart 2 (new sections 204L to 204Y) sets out provisions re- lating to the registration of promoters.

• New section 204A defines terms including promoter, registered pro- moter, and unregistered promoter.
New section 204B provides that a party secretary, candidate, regis- tered promoter, or an unregistered promoter who does not incur ad- vertising expenses exceeding $12,000 (inclusive of goods and ser- vices tax) is entitled to promote election advertisements.

A promoter who wilfully promotes an election advertisement without being en- titled to do so under this provision commits an offence and is liable on summary conviction to a fine not exceeding $40,000.
New section 204C provides that where an unregistered promoter jointly promotes an election advertisement with 1 or more other promoters, the advertising expenses incurred by the unregistered promoter in relation to the election advertisement includes the advertising expenses incurred by all of the other joint promoters in relation to the election advertisement.
New section 204D provides for advertising expenses incurred by an unregistered promoter in relation to an election advertisement that is published before and within the regulated period to be apportioned over the period of publication so that a fair proportion of the expenses is attributed to the publication of the advertisement within the regu- lated period.
New section 204E prohibits an unregistered promoter from entering into an agreement or an arrangement for the purpose of defeating the requirement to register if the promoter’s advertising expenses exceed $12,000 (inclusive of goods and services tax).

A person who wilfully 6 Electoral (Finance Reform and Advance Voting) Amendment Bill Explanatory note contravenes this provision commits an offence and is liable on sum- mary conviction to a fine not exceeding $40,000.
New section 204F requires a promoter who is an unregistered pro- moter for all or any part of the regulated period to keep for a period of 3 years the records, documents, and accounts that verify the ad- vertising expenses incurred in relation to an election advertisement.

A promoter who fails, without reasonable excuse, to comply with the provision commits an offence and is liable on summary conviction to a fine not exceeding $40,000.
New section 204G requires the promoter of an election advertise- ment to ensure that the advertisement includes a statement of the If the advertisement is in a print promoter’s name and address.

medium, the statement must be clearly visible.

A promoter who wilfully contravenes this provision is guilty of an illegal practice.

New section 204H provides that a person may publish a candidate advertisement only if the publication of that advertisement is au- thorised in writing by the candidate.
If the advertisement comprises 2 or more candidate advertisements, written authorisation must be obtained from each candidate, or from the secretary of the party to which the candidates belong.

A person who wilfully contravenes this provision is guilty of an illegal practice.

New section 204I provides that a person may publish a party adver- tisement only if the publication of that advertisement is authorised in writing by the party secretary.
A person who wilfully contravenes this provision is guilty of an illegal practice.

New section 204J provides that the Electoral Commission must, if requested, advise a promoter whether, in its opinion, an advertise- ment that the promoter proposes to promote constitutes an election advertisement.

The advertisement, any supporting material, and the advice of the Electoral Commission are to be treated as confidential for a specified period.
New section 204K provides that if the Electoral Commission believes that any person has committed an offence against subpart 1, it must report the facts upon which that belief is based to the New Zealand Police unless it considers that the offence is so inconsequential that there is no public interest in doing so.

New section 204L provides for the registration of promoters.
A con- stituency candidate, a list candidate, a party, and a person involved Explanatory note Electoral (Finance Reform and Advance Voting) Amendment Bill 7 in the administration of the affairs of a candidate or a party are not eligible to be a registered promoter.

New section 204M provides that applications to be a registered pro- moter must be made to the Electoral Commission, and details the requirements that application must satisfy.
New section 204N sets out the grounds on which an application to be a registered promoter must be refused.

New section 204O sets out the responsibilities of the Electoral Com- mission on receipt of an application by a promoter to be registered.

The Electoral Commission must as soon as is reasonably practicable either register the promoter or refuse the application.
New section 204P requires any change in a registered promoter’s contact details to be notified to the Electoral Commission within 10 working days of the change.

New section 204Q sets out when the Electoral Commission must can- cel the registration of a promoter.

New section 204R provides that a promoter’s registration expires on the close of the next subsequent polling day.

New section 204S requires the Electoral Commission to establish and maintain a register of registered promoters.
New section 204T sets out the purposes of the register.

The register will enable members of the public to identify registered promoters and, in respect of any registered promoter, to find out that promoter’s name and contact address.

The register will also assist with the en- forcement of new Part 6AA.

New section 204U provides that the register may be kept as an elec- tronic register or in any other manner that the Electoral Commission thinks fit.
New section 204V enables the Electoral Commission to amend the register to reflect any changes in a promoter’s contact details or to correct any errors or omissions.

New section 204W requires the Electoral Commission to make the register available for public inspection and to supply copies of all or any part of the register if requested subject to payment of any charges.

New section 204X provides that a person may search the register for a purpose specified in new section 204T.
8 Electoral (Finance Reform and Advance Voting) Amendment Bill Explanatory note New section 204Y provides that a search of the register for personal information that is not for a purpose specified in new section 204T constitutes an action that is an interference with the privacy of an individual under section 66 of the Privacy Act 1993.

Clause 8 repeals sections 205 to 205E (relating to candidates’ elec- tion expenses) and substitutes new sections 205 to 205E.
New sec- tions 205 to 205E are substantially the same as the existing sections but use the new terms advertising expenses and election expenses.

New section 205 is the interpretation section for subpart 1 of Part 6A and defines election expenses.

New section 205A sets out who may incur election expenses in rela- tion to a candidate advertisement.

New section 205B prescribes the maximum amount of a candidate’s election expenses in respect of any regulated period.
Those amounts currently prescribed have been increased to reflect the movement in the CPI (as defined in new section 266A) from the 2008 September quarter to the 2009 December quarter and then rounded to the next whole hundred dollars.

It is envisaged that these amounts will be further adjusted during the passage of the Bill to reflect the movement in the CPI from the December 2009 quarter to the September 2010 quarter.
New section 205C provides for the apportionment of the election ex- penses for the publication of a candidate advertisement both before and within the regulated period.

New section 205D provides for the apportionment of the election ex- penses of an election advertisement that comprises 2 or more candi- date advertisements.
The provision in existing section 205D(3) is not re-enacted so that where an advertisement gives a candidate less than 10% coverage, the candidate apportionment of the election expenses must now be included in the candidate’s election expenses.

New section 205E provides for the apportionment of the election ex- penses of an election advertisement that comprises both a candidate advertisement and a party advertisement.
New section 205EA provides for the election expenses of a party ad- vertisement to be deemed an election expense of a candidate in cer- tain circumstances.

Clause 9 amends section 205G to remove reference to an agent of a candidate.
Explanatory note Electoral (Finance Reform and Advance Voting) Amendment Bill 9 Clause 10 amends section 205P to afford to the Chief Electoral Offi- cer a discretion not to report to the Police an offence that he or she be- lieves has been committed in relation to candidate election expenses if he or she considers that the offence is so inconsequential that there is no public interest in doing so.
Clause 11 repeals sections 206 to 206C (relating to parties’ election expenses) and substitutes new sections 206 to 206CC.

New sections 206 to 206CC are substantially the same as the existing sections 206 to 206C, but use the new terms advertising expenses and election expenses.

New section 206 is the interpretation section for subpart 2 of Part 6A and defines election expenses.

New section 206A sets out who may incur election expenses in rela- tion to a party advertisement.
New section 206B prescribes the maximum amount of a party’s elec- tion expenses in respect of any regulated period.

The amounts cur- rently prescribed have been increased to reflect the movement in the CPI (as defined in new section 266A) from the 2008 September quar- ter to the 2009 December quarter and then rounded to the next whole thousand dollars in the case of the amount in new section 206B(1)(a) and to the next whole hundred dollars in the case of the amounts in new section 206B(1)(b) and (2).
It is envisaged that these amounts will be further adjusted during the passage of the Bill to reflect the movement in the CPI from the December 2009 quarter to the Sep- tember 2010 quarter.

New section 206C provides for the apportionment of the election ex- penses for the publication of a party advertisement both before and within the regulated period.

New section 206CA provides for the apportionment of the election expenses of an election advertisement that comprises 2 or more party advertisements.
New section 206CB provides for the apportionment of the election expenses of an election advertisement that comprises both a party advertisement and a candidate advertisement.

New section 206CC is a cross reference to new section 205EA, which provides for the election expenses of a party advertisement to be deemed an election expense of a candidate in certain circumstances.
10 Electoral (Finance Reform and Advance Voting) Amendment Bill Explanatory note Clause 12 amends section 206P to afford to the Electoral Commis- sion a discretion not to report to the Police an offence that it believes has been committed in relation to party election expenses if it is not considered to be in the public interest to do so.

Clause 13 amends section 207, which defines terms for the purposes of provisions relating to donations.
The clause inserts a new defin- ition of associated entity for the purposes of aggregating party do- nations and contributions that are made by bodies corporate that are related to each other in terms of the new definition.

Clause 14 inserts new sections 207BA and 207BB.

New section 207BA requires corporate donations to be accompanied by a state- ment from an officer of the corporation that has made a contribution over $1,000.
The statement must set out the names of associated entities of the corporation or states that the corporation has no associated entities.

Any corporate donations received without the re- quired statement must be returned to the donor.

New section 207BB requires party secretaries to list donors that are associated entities as groups and aggregate all party donations made by members of the group.
The aggregated donations attributed to each group must be disclosed in the way that donations made by sole donors have to be disclosed under existing provisions of the principal Act.

The new requirement to disclose aggregated donations is in addition to existing requirements for the disclosure of donations made by sole donors.

Clause 15 amends section 207C to clarify that its provisions do not apply in respect of anonymous donations.

Clause 16 inserts new sections 207CA and 207CB.


New section 207CA deals with a party donation that is wholly or partly funded from corporate contributions.

Such a donation must be accompanied by a statement from an officer of every contributing corporation that sets out the associated entities of the corporation or states that the corporation has no associated entities.

Any donation funded from corporate contributions that is received without the required statements must be returned to the donor.
New section 207CB requires, in similar terms to new section 207BB, the aggregation of contributions over $1,000 that associated entities make towards party donations.

Clause 17 amends section 207K to provide that the aggregate amount of all donations received from an overseas person is subject to the Explanatory note Electoral (Finance Reform and Advance Voting) Amendment Bill 11 $1,000 threshold.
The effect of this is that if the aggregate amount of all donations received from the same overseas person exceeds $1,000, the total amount donated less $1,000 must be returned to the overseas person or, if this is not possible, either to the Chief Electoral Officer (in the case of a candidate donation) or the Electoral Commis- sion (in the case of a party donation).
Clause 18 amends section 207O to afford to the Chief Electoral Of- ficer a discretion not to report to the Police an offence that he or she believes has been committed in relation to candidate donations if it is not considered to be in the public interest to do so.
Clause 19 amends section 207P to afford to the Electoral Commis- sion a discretion not to report to the Police an offence that it believes has been committed in relation to party donations if it is not consid- ered to be in the public interest to do so.

Clause 20 amends section 209, which prescribes the information that must be included in a return of donations filed by a candidate.
In re- lation to donations received from overseas persons, the amendments require disclosure of the name and address of the overseas person, and also extend the disclosure requirements to aggregated donations received from the same overseas person exceeding the $1,000 thresh- old.

Clause 21 amends section 210, which prescribes the information that must be included in a return of donations filed by a party secretary.
In relation to donations received from overseas persons, the amend- ments require disclosure of the name and address of the overseas per- son, and also extend the disclosure requirements to aggregated dona- tions received from the same overseas person exceeding the $1,000 threshold.

In addition, section 210 is amended to require that a return of party donations must disclose the total amount received in respect of certain categories of party donations not exceeding $10,000.
Clause 22 makes a technical amendment to section 210D that is con- sequential on new section 226(1A) (refer clause 25).

Clause 23 repeals sections 221 and 221A, which have been substan- tially re-enacted in new Part 6AA.

Clause 24 amends section 224 to provide that registered promoters are subject to the same level of penalty for illegal practices as candi- dates and parties.
12 Electoral (Finance Reform and Advance Voting) Amendment Bill Explanatory note Clause 25 amends section 226 to provide that a prosecution for the offence of failing to comply with section 210C must be commenced within 6 months of the date on which the prosecutor is satisfied that there is sufficient evidence to warrant the commencement of proceed- ings, but no later than 3 years after the offence was committed.
Clause 26 inserts new section 266A, which provides for the maxi- mum amount of expenses that may be incurred by an unregistered promoter, candidate, and party to be adjusted each year by Order in Council to reflect the movement in the Consumers Price Index All Groups published by Statistics New Zealand.
Part 2 Transitional provision and consequential amendments to other enactments Clause 27 is a transitional provision that excludes donations and con- tributions received before 1 January 2011 from the new aggregation obligations imposed by new sections 207BA, 207BB, 207CA, and 207CB.

Clauses 28 to 30 make consequential amendments to the Citizens Initiated Referenda Act 1993.

Clause 31 makes a consequential amendment to Schedule 2 of the Privacy Act 1993.

Clause 32 amends the Electoral Regulations 1996.


The amendments are consequential on the changes, made by clause 6, to voting before polling day.

Regulatory impact statement In accordance with Cabinet Office Circular CO (09) 8, this explana- tory note does not contain a regulatory impact statement for the Bill.
A copy of the regulatory impact statement is available at the follow- ing Internet sites: • http://www.treasury.govt.nz/publications/informationre- leases/ris: http://www.justice.govt.nz/policy-and-consultation/regulato- ryimpactstatements/electoral-amendment-bill.
• Hon Simon Power Electoral (Finance Reform and Advance Voting) Amendment Bill Government Bill Contents Title Commencement Part 1 Amendments to principal Act Principal Act amended Interpretation New sections 3A to 3C inserted 3A 3B 3C Meaning of election advertisement Meaning of regulated period Electoral Commission to publish details relating to regulated period Special voters New Part 6AA inserted Part 6AA Election advertising Interpretation provisions 204A Interpretation Subpart 1—General rules governing election advertisements 204B Persons who may promote election advertisements 204C Joint promotion of election advertisement 146—1 Page 4 4 5 5 6 6 8 9 9 9 9 11 11 1 Electoral (Finance Reform and Advance Voting) Amendment Bill 204D Apportionment of unregistered promoter’s advertising expenses incurred before and during the regulated period 204E Offence to avoid limit set out in section 204B(1)(d) 204F Obligation to retain records necessary to verify promoter’s advertising expenses 204G Election advertisement to state name and address of promoter 204H Publication of candidate advertisement promoting 204I candidate Publication of party advertisement promoting party Electoral Commission to provide advice on application of definition of election advertisement 204K Duty of Electoral Commission to report suspected 204J offences Subpart 2—Registered promoters 204L Promoters eligible to be registered 204M Application for registration 204N Grounds on which application for registration must be refused
 204O Electoral Commission’s decision on application 204P Obligation to notify Electoral Commission of change in contact details 204Q Cancellation of registration 204R Expiry of registration 204S Establishment of register 204T Purposes of register 204U Form of register 204V Alterations to register 204W Register to be public 204X Search of register 204Y When search constitutes interference with privacy of individual 8 New heading and sections 205 to 205EA substituted Subpart 1—Election expenses of candidates
 Interpretation and application 205 205A Persons who may incur election expenses in relation to candidate advertisement 205B Maximum amount of candidate’s election expenses 2 11 12 12 13 13 14 14 15 15 15 16 16 17 17 18 18 18 18 18 19 19 19 19 19 20 20 Electoral (Finance Reform and Advance Voting) Amendment Bill 205C Apportionment of election expenses for publication of candidate advertisement both before and during regulated period 205D Apportionment of election expenses of election advertisement between candidates 205E Apportionment of election expenses of election advertisement between candidate and party 205EA Election expenses of party advertisement deemed to be election expenses of candidate in particular case Periods for claiming and paying candidate’s election expenses Duty of Chief Electoral Officer New heading and sections 206 to 206CC substituted Subpart 2—Election expenses of parties Interpretation 206 206A Persons who may incur election expenses in relation to party advertisement 206B Maximum amount of party’s total expenses 206C Apportionment of election expenses for publication of party advertisement both before and during regulated period 206CA Apportionment of election expenses of election advertisement between parties 206CB Apportionment of election expenses of election advertisement between party and candidate 206CC Election expenses of party advertisement giving coverage to candidate Duty of Electoral Commission Interpretation New sections 207BA and
 207BB inserted 207BA Donations made by bodies corporate 207BB Party secretaries must aggregate certain party donations into group donations Contributors to be identified New sections 207CA and 207CB inserted 207CA Party donations funded by contributions made by bodies corporate 207CB Party secretaries must aggregate certain contributions into group contributions Overseas donation may not exceed $1,000 Duty of Chief Electoral Officer in relation to donations 21 21 22 22 23 23 23
 23 24 24 25 25 26 26 27 27 27 27 28 29 29 29 30 31 32 3 cl 1 26 27 28 29 30 31 32 Electoral (Finance Reform and Advance Voting) Amendment Bill Duty of Electoral Commission in relation to donations Return of candidate donations Annual return of party donations Offences relating to return of party donations Sections 221 and 221A repealed Punishment for corrupt or illegal practice Time limit for prosecutions New section 266A inserted 266A Expenditure limits to be adjusted each year by Order in Council Part 2 Transitional provision and consequential amendments to other enactments Transitional provision Amendments to Citizens Initiated Referenda Act 1993 Amendments to Citizens Initiated Referenda Act 1993 Application of Electoral Act 1993 to indicative referendum not conducted by postal voting Application of Electoral Act 1993 to indicative referendum conducted by postal voting Amendment to Privacy Act 1993 Amendment to Privacy Act 1993 Amendments to Electoral Regulations 1996 Amendments to Electoral Regulations 1996 32 32 33 35 35 35 36 36 36 37 37 38 38 38 38 The Parliament of New Zealand enacts as follows: Title This Act is the Electoral (Finance Reform and Advance Vot- ing) Amendment Act 2010.
Commencement This Act comes into force on 1 January 2011.

5 1 2 4 3 4 (1) (2) (3) Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 4 Part 1 Amendments to principal Act Principal Act amended This Part amends the Electoral Act 1993.
5 “(c) “(d) Interpretation Section 3(1) is amended by repealing the definition of candi- date and substituting the following definition: “candidate— “(a) means a constituency candidate; and “(b) includes a list candidate (other than in Parts 6AA and 10 6A); and in section 3A and Parts 6AA, 6A, 7, and 8 includes a person who has declared his or her intention of becom- ing a constituency candidate; and in Parts 7 and 8 includes a person who has declared his 15 or her intention of becoming a list candidate.” Section 3(1) is amended by repealing the definition of party and substituting the following definition: “party, in Parts 6AA and 6A,— “(a) means a political party registered under Part 4; and “(b) includes a political party that at any time during the regulated period has been registered under Part 4”.
Section 3(1) is amended by inserting the following definitions in their appropriate alphabetical order: “advertising expenses, in relation to an election advertise- 25 ment,— “(a) 20 includes the cost of— “(i) “(ii) the preparation, design, composition, printing, distribution, postage, and publication of the ad- vertisement; and the reasonable market value of any material used for or applied towards the advertisement that is provided free of charge or below reasonable mar- ket value; but “(b) excludes the cost of— travel; and “(i) 5 30 35 Part 1 cl 5 Electoral (Finance Reform and Advance Voting) Amendment Bill “(ii) the conduct of any survey or public opinion poll; and “(iii) the labour of any person that is provided free of “(iv) charge by that person; and the replacement of any material used in respect of 5 the advertisement if that advertisement has been destroyed or rendered unusable by— “(A) 1 or more persons, other than the person promoting the advertisement (person A): the occurrence of an event beyond the con- 10 trol of person A, or any person acting on behalf of person A “(B) “candidate advertisement means an election advertisement of the kind described in section 3A(1)(a) “election advertisement has the meaning given to it by sec- 15 tion 3A “party advertisement means an election advertisement of the kind described in section 3A(1)(b) “regulated period has the meaning given to it by section 3B”.
20 5 New sections 3A to 3C inserted The following sections are inserted after section 3: “3A Meaning of election advertisement “(1) In this Act, unless the context otherwise requires, election ad- vertisement means an advertisement in any medium that may 25 reasonably be regarded as encouraging or persuading voters— to vote, or not to vote, for 1 or more candidates; or “(a) to vote, or not to vote, for 1 or more parties; or “(b) to vote, or not to vote, for 1 or more candidates and 1 or “(c) more parties; or to vote, or not to vote, for a type of candidate described or indicated by reference to views or positions that are, or are not, held or taken (whether or not the name of the candidate is stated); or to vote, or not to vote, for a type of party described or 35 indicated by reference to views or positions that are, or “(d) “(e) 30 6 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 5 are not, held or taken (whether or not the name of the party is stated).
“(2) None of the following are election advertisements: “(a) “(b) “(c) “(d) “(e) an advertisement that— “(i) is published, or caused or permitted to be pub- 5 lished, by the Electoral Commission, the Chief Registrar of Electors, or any other agency charged with responsibilities in relation to the conduct of any official publicity or information campaign to be conducted on behalf of the Gov- 10 ernment of New Zealand; and relates to electoral matters or the conduct of any general election or by-election; and “(ii) “(iii) contains either— “(A) a statement indicating that the advertise- 15 ment has been authorised by that officer or agency; or “(B) a symbol indicating that the advertise- ment has been authorised by that officer or agency: 20 25 any news or comments, other than advertising material, relating to an election in a periodical that is written or selected by, or with the authority of, the editor solely for the purpose of informing, enlightening, or entertaining readers: any content of a radio or television programme, other than advertising material, that has been selected by, or with the authority of, a broadcaster (within the mean- ing of the Broadcasting Act 1989) solely for the pur- pose of informing, enlightening, or entertaining the pro- 30 gramme’s audience: any news or comments, other than advertising material, published on a news media Internet site that is written or selected by, or with the authority of, the editor or person responsible for the Internet site solely for the purpose of 35 informing, enlightening, or entertaining readers: the publication by an individual, on a non-commercial basis, of his or her personal political views on or through the Internet or any other electronic medium.
7 Part 1 cl 5 Electoral (Finance Reform and Advance Voting) Amendment Bill “(3) In this section, periodical means a newspaper, magazine, or trade or professional journal that— “(a) was established for purposes unrelated to the conduct of “(b) election campaigns; and since its establishment has been— “(i) “(ii) generally available to members of the public.
published at regular intervals; and “Compare: 1993 No 87 ss 221(1), (6), 221A(2), (4) (pre-1 January 2011); 2007 No 111 ss 4, 5(2) “3B Meaning of regulated period “(1) In this Act, regulated period, in relation to a general election, has the meaning given to it by subsections (2) and (3).
If before the close of the default day the Prime Minister gives public notice of the day that is to be polling day for the election, the regulated period— “(a) commences on the later of the following days: “(i) the day after the date on which the Prime Minister gives that public notice: the day that is 3 months before polling day; and “(ii) “(b) ends with the close of the day before polling day.
If at the close of the default day the Prime Minister has not given public notice of the day that is to be polling day for the election, the regulated period— commences on the close of the default day; and “(a) “(b) ends with the close of the day before polling day.
In this Act, regulated period, in relation to a by-election, means the period that— “(a) commences on the day after the notice of the vacancy to be filled by the by-election is published under section 129(1); and ends with the close of the day before polling day.
“(b) In this section— “default day means the day that is 3 months before the last possible polling day for the general election “give public notice means issue a media statement.” “(2) “(3) “(4) “(5) 8 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 7 “3C Electoral Commission to publish details relating to regulated period The Electoral Commission must,— “(a) within 6 months after the day of the return of the writ for “(b) a general election, publish in the Gazette notice of the 5 last possible polling day for the next general election; and as soon as practicable after the commencement of the regulated period for a general election, publish in the Gazette notice of— “(i) the date on which the regulated period com- menced; and the date on which the regulated period will end.” “(ii) 10 6 Special voters Section 61(1) is amended by adding the following subsection: 15 “(3) A person whose name appears on the main roll or any sup- plementary roll for an electoral district and who is qualified to vote at an election in that district may vote as a special voter if the person— “(a) applies to vote in person before polling day; and “(b) does so within that district or at an office maintained by the Returning Officer of that district.” 7 New Part 6AA inserted The following Part is inserted after section 204: “Part 6AA “Election advertising “Interpretation provisions “204A Interpretation In this Part, unless the context otherwise requires,— “address means— “(a) in relation to an
 individual,— “(i) the full street address of the place where that in- dividual usually lives; or the full street address of any other place where that individual can be contacted: “(ii) “(b) in relation to a body corporate or unincorporated,— 9 20 25 30 35 Part 1 cl 7 Electoral (Finance Reform and Advance Voting) Amendment Bill “(i) “(ii) the full street address of the body’s principal place of business; or the full street address of the body’s head office “contact address, in relation to a registered
 promoter, means the address included in the contact details for that promoter 5 given in the notice required under section 204M(d) “contact details means any 2 or more of the following: “(a) “(b) “(c) “election advertisement has the meaning given to it by sec- tion 3A “promoter— “(a) means a person on whose initiative an election adver- an address: an email address: telephone numbers 10 “(b) is published; or is to be published; and tisement— “(i) “(ii) includes, without limitation, a person— “(i) who enters into a contract, arrangement, or 15 understanding with another person to the effect 20 that the other person publish an election adver- tisement; or “(ii) who publishes an election advertisement in the absence of such a contract, arrangement, or understanding “register means the register of registered promoters estab- lished and maintained under section 204S “registered promoter— “(a) means a promoter who is registered under section “(b) 204O; and includes a promoter who at any time in the regulated period has been registered under section 204O “unregistered promoter means a promoter who is not— “(a) “(b) “(c) a party secretary: a candidate: a registered promoter.” 25 30 35 10 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 7 “Subpart 1—General rules governing election advertisements “204B Persons who may promote election advertisements “(1) A promoter is entitled to promote an election advertisement if 5 the promoter is— “(a) “(b) “(c)
 “(d) a party secretary, but only if the advertisement is a party advertisement promoted by, or on behalf of, that party: a candidate, but only if the advertisement is a candidate advertisement promoted by, or on behalf of, 1 or more candidates: a registered promoter: an unregistered promoter who does not incur advertis- ing expenses exceeding $12,000 (or such other amount as is prescribed by the Governor-General by Order in Council under section 266A) in relation to election ad- 15 vertisements published
 during the regulated period.
10 “(2) The amount in subsection (1)(d) is inclusive of goods and services tax.

“(3) Every promoter who wilfully promotes an election advertise- ment without being entitled to do so under subsection (1) 20 commits an offence and is liable on summary conviction to a fine not exceeding $40,000.
“Compare: 2007 No 111 s 63(3), (4) “204C Joint promotion of election advertisement Where an election advertisement that is published during the 25 regulated period is promoted by an unregistered promoter jointly with 1 or more other promoters, then, for the purposes of section 204B(1)(d), the advertising expenses incurred by that unregistered promoter in relation to the election adver- tisement include the advertising expenses incurred by all of 30 the other promoters in relation to the election advertisement.
“204D Apportionment of unregistered promoter’s advertising expenses incurred before and during the regulated period “(1) This section applies if an unregistered promoter incurs adver- tising expenses in relation to an election advertisement that is 35 published both before and during the regulated period.
11 Part 1 cl 7 Electoral (Finance Reform and Advance Voting) Amendment Bill “(2) If this section applies,— “(a) “(b) the election advertisement is deemed to have been pub- lished during the regulated period; but the advertising expenses incurred in relation to the ad- vertisement must be apportioned so that only a fair pro- 5 portion of those expenses is attributed to the publication of the advertisement during the regulated period.
“(3) Only the fair proportion of the advertising expenses deter- mined in accordance with subsection (2) is advertising ex- penses for the purposes of section 204B(1)(d).

“Compare: 1993 No 87 ss 205C, 206C (pre-1 January 2011) 10 “204E Offence to avoid limit set out in section 204B(1)(d) “(1) An unregistered promoter may not enter into an agreement, or enter into an arrangement or understanding, with any other person for the purpose of circumventing the maximum amount 15 prescribed in section 204B(1)(d).
“(2) A body corporate or unincorporated may not split itself into 2 or more bodies for the purpose of circumventing the maximum amount prescribed in section 204B(1)(d).

“(3) Every person who wilfully contravenes subsection (1) or (2) 20 commits an offence and is liable on summary conviction to a fine not exceeding $40,000.
“Compare: 2007 No 111 s 64 “204F Obligation to retain records necessary to verify promoter’s advertising expenses “(1) This section applies to a promoter who— 25 “(a) “(b) is an unregistered promoter: at any time during the regulated period has been an un- registered promoter.
“(2) A promoter to whom this section applies must take all reason- 30 able steps to retain the records, documents, and accounts that are necessary to enable verification of the advertising expenses incurred as an unregistered promoter in relation to an election advertisement.

12 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 7 “(3) Subsection (2) applies until the close of the day that is 3 years after polling day for the election to which the advertisement relates.
“(4) Every promoter who fails, without reasonable excuse, to com- ply with subsection (2) commits an offence and is liable on 5 summary conviction to a fine not exceeding $40,000.

“204G Election advertisement to state name and address of promoter “(1) A promoter of an election advertisement must ensure that the “(2) “(3) publication of the advertisement includes a statement of the 10 promoter’s name and address.
If the election advertisement is published in a printed form, the statement of the promoter’s name and address must be clearly visible in the advertisement.

If the promoter of an election advertisement is a registered pro- 15 moter, the promoter’s name and address referred to in subsec- tion (1) must be the name and address of the promoter that appears in the register.

“(4) Every promoter is guilty of an illegal practice who wilfully contravenes any of subsections (1) to (3).
“Compare: 1993 No 87 ss 221(2)(b), (3)(b), (4), 221A(1), (3) (pre-1 January 2011) 20 “204H Publication of candidate advertisement promoting candidate “(1) A person may publish or cause or permit to be published a 25 candidate advertisement that may reasonably be regarded as encouraging or persuading voters to vote for a named con- stituency candidate only if the publication of the advertisement is authorised in writing by the candidate.
“(2) A person may publish or cause or permit to be published an 30 election advertisement comprising 2 or more candidate adver- tisements of the kind described in subsection (1) only if the publication of the advertisement is authorised in writing by— “(a) “(b) each of the candidates; or the secretary of the party to which the candidates be- 35 long.
13 Part 1 cl 7 Electoral (Finance Reform and Advance Voting) Amendment Bill “(3) A person who wilfully contravenes subsection (1) or (2) is guilty of an illegal practice.
“Compare: 1993 No 87 s 221(1)(a), (2)(a), (4), (5) (pre-1 January 2011) “204I Publication of party advertisement promoting party “(1) A person may publish or cause or permit to be published a 5 party advertisement that may reasonably be regarded as en- couraging or persuading voters to vote for a named party only if the publication of the advertisement is authorised in writing by the party secretary.

“(2) A person who wilfully contravenes subsection (1) is guilty 10 of an illegal practice.
“Compare: 1993 No 87 s 221(1)(b), (3), (4), (5) (pre-1 January 2011) “204J Electoral Commission to provide advice on application of definition of election advertisement “(1) Any person may request the Electoral Commission to provide 15 advice on whether, in the opinion of the Electoral Commis- sion, an advertisement that the promoter proposes to promote constitutes an election advertisement.
“(2) A request made under subsection (1) must be accompan- ied by the advertisement in the form required by the Electoral 20 Commission.

“(3) On receipt of a request under subsection (1), the Electoral Commission must, as soon as is reasonably practicable, pro- vide an opinion.
“(4) During the period specified in subsection (5), the Electoral 25 Commission is to treat the following documents as confiden- tial: “(a) “(b) an advertisement received under subsection (2): any supporting material made available by the promoter to the Electoral Commission: advice given by it to a promoter under subsection (3).
“(5) The period specified for the purposes of subsection (4) is, in “(c) relation to a document, the period that— “(a) begins on the day the Electoral Commission receives the document; and 14 30 35 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 7 “(b) ends on the day after the day for the return of the writ for the election to which the advertisement relates.
“204K Duty of Electoral Commission to report suspected “(1) offences If the Electoral Commission believes that any person has com- 5 mitted an offence specified in this subpart, the Electoral Com- mission must report the facts on which that belief is based to the New Zealand Police.

“(2) Subsection (1) does not apply if the Electoral Commission considers that the offence is so inconsequential that there is 10 no public interest in reporting those facts to the New Zealand Police.
“Subpart 2—Registered promoters “204L Promoters eligible to be registered A promoter (including a corporation sole, a body corporate, 15 and an unincorporated body) is eligible to be a registered pro- moter if the promoter is not— “(a) “(b) “(c) “(d) a constituency candidate: a list candidate: a party secretary: a person involved in the administration of— “(i) the affairs of a candidate in relation to the candi- date’s election campaign; or the affairs of a party.
“(ii) 20 “Compare: 2007 No 111 s 13 25 “204M Application for registration An application to be a registered promoter must be— “(a) made to the Electoral Commission; and “(b) made,— “(i) “(ii) if the promoter is an individual, by that indi- 30 vidual; or if the promoter is a body corporate, by a person who is duly authorised by the board or other gov- erning body of the body corporate to make the application; or 35 15 Part 1 cl 7 Electoral (Finance Reform and Advance Voting) Amendment Bill “(iii) if the promoter is an unincorporated body, by the representative of the body who is authorised by the body for the purpose; and “(c) made in the form required by the Electoral Commission; 5 “(d) and accompanied by— “(i) a notice setting out the contact details of— “(A) “(B) the promoter; and the person described in paragraph (b)(ii) or (iii), as the case may be, who made 10 the application, if the promoter is a body corporate or an unincorporated body; and evidence of the authority to make the application, if the application is made by a person described in paragraph (b)(ii) or (iii).
15 “(ii) “Compare: 2007 No 111 s 15(2), (3)(a) “204N Grounds on which application for registration must be refused The Electoral Commission must refuse an application by a promoter to be registered if— “(a) “(b) the application does not comply with section 204M; or the Electoral Commission is not satisfied that the pro- moter is eligible under section 204L to be registered; or the name of the promoter is— “(i) “(ii) offensive; or likely to cause confusion with the name of either a candidate or a party; or “(c) “(iii) likely to mislead members of the public.
“Compare: 2007 No 111 s 17(1)(a), (c), (d) “204O Electoral Commission’s decision on application “(1) If there are no grounds under section 204N to refuse an appli- cation by a promoter to be registered, the Electoral Commis- sion must, as soon as is reasonably practicable after receiving the application,— “(a) register the promoter; and 20 25 30 35 16 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 7 “(b) notify the person who made the application of the date of registration of the promoter.
“(2) If there are grounds under section 204N to refuse an applica- tion, the Electoral Commission must, as soon as is reasonably practicable after receiving the application,— “(a) “(b) notify the person who made the application of the re- refuse the application; and 5 fusal and the reasons.
“Compare: 2007 No 111 s 18 “204P Obligation to notify Electoral Commission of change in 10 contact details A registered promoter must give written notice to the Electoral Commission of any change in the promoter’s contact details within 10 working days after the change.
“Compare: 2007 No 111 s 19(1) “204Q Cancellation of registration “(1) The Electoral Commission must cancel the registration of a promoter if— “(a) “(b) the Electoral Commission is satisfied that the promoter is not eligible to be registered; or the promoter— “(i) “(ii) has not incurred expenses in relation to election advertisements that exceed the amount specified in section 204B(1)(d).
requests that it do so; and “(2) If the Electoral Commission cancels the registration of a pro- moter under subsection (1), the Electoral Commission must, as soon as is reasonably practicable, and in any case not later than 10 working days after the date of the cancellation, give the promoter written notice of— the cancellation; and “(a) the reason for the cancellation.
“(b) “Compare: 2007 No 111 s 20 17 15 20 25 30 Part 1 cl 7 Electoral (Finance Reform and Advance Voting) Amendment Bill “204R Expiry of registration Unless earlier cancelled under section 204Q, a promoter’s registration expires on the close of polling day for the next election following the date of the promoter’s registration.

“204S Establishment of register “(1) The Electoral Commission must establish and maintain a 5 register of registered promoters.
“(2) The Electoral Commission must enter in the register— “(a) “(b) the name of every registered promoter; and the contact address for every registered promoter.

“(3) The Electoral Commission may enter in the register any other information that the Electoral Commission considers neces- sary or desirable for the purposes of the register.
“204T Purposes of register The purposes of the register are— “(a) to enable members of the public to— “(i) “(ii) find out the name and contact address of a regis- identify registered promoters; and 10 15 tered promoter; and “(b) to assist with the enforcement of the provisions of this 20 Part.

“204U Form of register The register may be kept— “(a) as an electronic register (for example, on the Electoral Commission’s Internet site); or in any other manner that the Electoral Commission thinks fit.
“(b) “204V Alterations to register The Electoral Commission may at any time make any amend- ments to the register that are necessary to— “(a) reflect any changes in the information referred to in sec- tion 204P; or 18 25 30 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 8 “(b) correct any error or omission on the part of the Electoral Commission or any person to whom the Electoral Com- mission has delegated its functions, duties, or powers.
“204W Register to be public The Electoral Commission must— “(a) make the register available for public inspection at its 5 “(b) office during ordinary office hours, without fee; and supply to a person copies of all or part of the register on request, subject to the payment of any charges that may be made under the Official Information Act 1982.

10 “204X Search of register A person may search the register for a purpose set out in sec- tion 204T.
“204Y When search constitutes interference with privacy of individual A search of the register for personal information that has not been carried out for a purpose specified in section 204T con- stitutes an action that is an interference with the privacy of an individual under section 66 of the Privacy Act 1993.” 8 New heading and sections 205 to 205EA substituted Sections 205 to 205E and the heading above section 205 are repealed and the following heading and sections substituted: “Subpart 1—Election expenses of candidates “205 Interpretation and application “(1) In this subpart, unless the context otherwise requires,— “advertising expenses, candidate advertisement, and party advertisement have the meanings given to them by section 3(1) “election advertisement has the meaning given to it by sec- tion 3A “election expenses, in relation to a candidate,— “(a) means the advertising expenses incurred by or on behalf of a candidate in relation to a candidate advertisement that— 15 20 25 30 19 Part 1 cl 8 Electoral (Finance Reform and Advance Voting) Amendment Bill “(i) “(ii) is published, or continues to be published, during the regulated period; and is promoted by— “(A) “(B) a person authorised under section 204H; 5 the candidate; or and “(b) includes— “(i) any election expense of an election advertisement that is apportioned to a candidate under section 205E; and any election expense of a party advertisement deemed to be an election expense of the candi- date under section 205EA.” “(2) For the purposes of the definition of election expenses, it is “(ii) 10 immaterial whether an election expenses is paid or incurred 15 before, during, or after the regulated period.
“(3) Nothing in sections 205K to 205R applies to a person who has not been nominated as a candidate for a seat in the House of Representatives.
“205A Persons who may incur election expenses in relation to 20 candidate advertisement An election expense in relation to a candidate advertisement may be incurred only by— a candidate; or “(a) a party secretary in relation to— “(b) “(i) an advertisement that the party secretary has au- thorised under section 204H(2)(b); or an election advertisement described in section 205E; or “(ii) 25 “(c) a promoter authorised under section 204H(1) or (2).
30 “205B Maximum amount of candidate’s election expenses “(1) The total election expenses of a candidate in respect of any regulated period must not exceed— “(a) $20,300 (or such other amount as is prescribed by the Governor-General by Order in Council under section 35 266A), in the case of a candidate at a general election; and 20 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 8 “(b) $40,600 (or such other amount as is prescribed by the Governor-General by Order in Council under section 266A), in the case of a candidate at a by-election.
“(2) The amounts in subsection (1) are inclusive of goods and services tax.

“Compare: 1993 No 87 s 205B (pre-1 January 2011) 5 “205C Apportionment of election expenses for publication of candidate advertisement both before and during regulated period “(1) This section applies if a candidate advertisement— 10 “(a) “(b) is published both before and during the regulated period; or is published before the regulated period and continues to be published during the regulated period.
“(2) If this section applies,— “(a) “(b) the candidate advertisement is deemed to have been published during the regulated period; but the election expenses for the publication of the candi- date advertisement must be apportioned so that a fair proportion of the expenses is attributed to being in- 20 curred during the regulated period.

15 “(3) Only the election expenses attributed to being incurred during the regulated period in accordance with subsection (2) are election expenses.
“Compare: 1993 No 87 s 205C (pre-1 January 2011) 25 “205D Apportionment of election expenses of election advertisement between candidates “(1) This section applies if an election advertisement comprises 2 “(2) or more candidate advertisements.

If this section applies, the election expenses of the election 30 advertisement must be apportioned among the candidates in proportion to the coverage the advertisement provides to each candidate.
“(3) For the purposes of this section,— “(a) election expenses of means the total of the election expenses of all of the the election advertisement 35 21 Part 1 cl 8 Electoral (Finance Reform and Advance Voting) Amendment Bill “(b) candidate advertisements comprised in the election advertisement; and the coverage provided by an election advertisement must be calculated in such a manner as is appropriate in relation to the form of the advertisement.
“(4) Only the expenses apportioned to a candidate in accordance with this section are election expenses of that candidate.

“Compare: 1993 No 87 s 205D (pre-1 January 2011) “205E Apportionment of election expenses of election advertisement between candidate and party “(1) This section applies if an election advertisement comprises 5 10 “(2) a candidate advertisement; and a party advertisement.
both— “(a) “(b) If this section applies, the election expenses of the election 15 advertisement must be apportioned between the candidate and the party in proportion to the coverage the advertisement pro- vides to the candidate and to the party.
“(3) For the purposes of this section,— “(a) “(b) the election advertisement 20 election expenses of means the advertising expenses incurred in relation to both the candidate advertisement and the party adver- tisement; and the coverage provided by an election advertisement must be calculated in such a manner as is appropriate 25 in relation to the form of the election advertisement.

“(4) Only the expenses apportioned to the candidate in accordance with this section are election expenses of the candidate.
“205EA Election expenses of party advertisement deemed to be election expenses of candidate in particular case “(1) This section applies if a party advertisement features a candi- date— “(a) “(b) in his or her capacity as a list candidate; or as endorsing or supporting the party, or the list submit- ted by the party under section 127.
30 35 22 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 11 “(2) Where the party advertisement gives more than 10% coverage to the candidate and is published in the electoral district in re- spect of which the candidate has been nominated, the election expenses of the party advertisement are deemed to be election expenses of the candidate.
“(3) However, this section does not apply where the party adver- tisement is published— “(a) in the electoral district in respect of which the candidate has been nominated; and in at least 10 other electoral districts.

“(b) “(4) For the purposes of this section, candidate means a person who is both a constituency candidate and a list candidate.
“(5) For the purposes of this section, the coverage provided by a party advertisement must be calculated in such a manner as is appropriate in relation to the form of the advertisement.

“Compare: 1993 No 87 s 205E (pre-1 January 2011).” 9 10 Periods for claiming and paying candidate’s election expenses Section 205G(1) is amended by omitting “, or an agent of a candidate,”.
Duty of Chief Electoral Officer Section 205P is amended by adding the following subsection as subsection (2): 5 10 15 20 “(2) Subsection (1) does not apply if the Chief Electoral Officer considers that the offence is so inconsequential that there is 25 no public interest in reporting those facts to the New Zealand Police.” 11 New heading and sections 206 to 206CC substituted Sections 206 to 206C and the heading above section 206 are repealed and the following heading and sections substituted: 30 “Subpart 2—Election expenses of parties “206 Interpretation “(1) In this subpart,— 23 Part 1 cl 11 Electoral (Finance Reform and Advance Voting) Amendment Bill “advertising expenses, candidate advertisement, and party advertisement have the meanings given to them by section 3(1) “election advertisement has the meaning given to it by sec- tion 3A “election expenses, in relation to a party,— “(a) means the advertising expenses incurred by or on behalf of a party in relation to a party advertisment that— “(i) is published, or continues to be published, during the regulated period; and is promoted by— “(A) “(B) a person authorised under section 204I; the party secretary; or “(ii) 5 10 and “(b) includes any election expense of an election adver- 15 tisement that is apportioned to a party under section 206CA.” “(2) For the purposes of the definition of election expenses, it is immaterial whether an election expense is paid or incurred be- fore, during, or after the regulated period.
20 “206A Persons who may incur election expenses in relation to party advertisement An election expense in relation to a party advertisement may only be incurred by— “(a) “(b) the party secretary; or a candidate in relation to an election advertisement de- scribed in section 206CB; or a promoter authorised under section 204I.
“(c) 25 “206B Maximum amount of party’s total expenses “(1) If a party is listed in the part of the ballot paper that relates 30 to the party vote, the total election expenses of that party in respect of any regulated period must not exceed— “(a) $1,015,000 (or such other amount as is prescribed by the Governor-General by Order in Council under section 266A); and 35 “(b) $20,300 (or such other amount as is prescribed by the Governor-General by Order in Council under section 24 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 11 266A) for each electoral district contested by a candi- date for the party.
“(2) If a party is not listed in the part of the ballot paper that relates to the party vote, the total election expenses of that party in respect of any regulated period must not exceed $20,300 for 5 each electoral district contested by a candidate for the party.

“(3) The amounts in subsections (1) and (2) are inclusive of goods and services tax.
“Compare: 1993 No 87 s 206B (pre-1 January 2011) “206C Apportionment of election expenses for publication of party advertisement both before and during regulated period “(1) This section applies if a party advertisement— “(a) “(b) is published both before and during the regulated period; or is published before the regulated period and continues to be published during the regulated period.
“(2) If this section applies,— “(a) “(b) the party advertisement is deemed to have been pub- lished during the regulated period; but the election expenses for the publication of the party advertisement must be apportioned so that a fair pro- portion of the expenses is attributed to being incurred during the regulated period.

10 15 20 “(3) Only the election expenses attributed to being incurred during 25 the regulated period in accordance with subsection (2) are election expenses.
“Compare: 1993 No 87 s 206C (pre-1 January 2011)” “206CA Apportionment of election expenses of election advertisement between parties 30 “(1) This section applies if an election advertisement comprises 2 “(2) or more party advertisements.

If this section applies, the election expenses of the election ad- vertisement must be apportioned among the parties in propor- tion to the coverage the advertisement provides to each party.
35 “(3) For the purposes of this section,— 25 Part 1 cl 11 Electoral (Finance Reform and Advance Voting) Amendment Bill “(a) the election advertisement election expenses of means the total of the election expenses of all of the party advertisements comprised in the election adver- tisement; and the coverage provided by an election advertisement 5 must be calculated in such a manner as is appropriate in relation to the form of the advertisement.
“(4) Only the expenses apportioned to a party in accordance with “(b) this section are election expenses of that party.

“206CB Apportionment of election expenses of election advertisement between party and candidate “(1) This section applies if an election advertisement comprises “(2) a party advertisement; and a candidate advertisement.
both— “(a) “(b) If this section applies, the election expenses of the election advertisement must be apportioned between the party and the candidate in proportion to the coverage the advertisement pro- vides to the party and to the candidate.
“(3) For the purpose of this section,— 10 15 20 “(a) “(b) election expenses of the election advertisement means the advertising expenses incurred in relation to both the candidate advertisement and the party adver- tisement; and the coverage provided by an election advertisement 25 must be calculated in such a manner as is appropriate in relation to the form of the election advertisement.

“(4) Only the expenses apportioned to the party in accordance with this section are election expenses of the party.
“206CC Election expenses of party advertisement giving 30 coverage to candidate If section 205EA applies, the election expenses of the party advertisement— “(a) are deemed to be election expenses of the candidate under section 205EA; and are not election expenses of the party.
“(b) 26 35 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 14 12 Duty of Electoral Commission Section 206P is amended by adding the following subsection as subsection (2): “(2) Subsection (1) does not apply if the Electoral Commission considers that the offence is so inconsequential that there is 5 no public interest in reporting those facts to the New Zealand Police.” 13 Interpretation Section 207 is amended by adding the following subsection: “(4) For the purposes of sections 207BA, 207BB, 207CA, and 10 207CB, bodies corporate are, in relation to one another, asso- ciated entities if— “(a) “(b) “(c) each body corporate has 12 or fewer members or share- holders and at least half of those members or sharehold- ers are the same; or at least half the persons who control each body corpo- rate are the same; or one of the bodies corporate— “(i) has the power, directly or indirectly, to exercise, or control the exercise of, 25% or more of the 20 voting power at a meeting of the other; or is able to appoint or control 25% or more of the governing body of the other; or “(ii) 15 “(d) each body corporate is a subsidiary (within the meaning of the Companies Act 1993) of the same holding com- 25 pany (within the meaning of that Act).” 14 New sections 207BA and 207BB inserted The following sections are inserted after section 207: “207BA Donations made by bodies corporate “(1) A party donation made by a body corporate must be accom- 30 panied by a written statement that is signed and dated by an officer of the body corporate and that— “(a) sets out the names of all the associated entities of the body corporate as at the date of the statement; or states that, as at that date, there are no associated entities 35 of the body corporate.
“(b) 27 Part 1 cl 14 Electoral (Finance Reform and Advance Voting) Amendment Bill “(2) If a party secretary receives a party donation that has been made by a body corporate and that does not comply with sub- section (1) in any respect, the party secretary must, within 20 working days of receipt of the donation, give back to the donor the entire amount of the donation or its entire value.
5 “(3) For the purposes of section 207BB, any amount given back by a party secretary under subsection (2) is taken not to have been received by the party secretary.

“(4) Every person commits an offence, and is liable on summary conviction to a fine not exceeding $40,000, who signs a state- 10 ment of the kind described in subsection (1) if the person knows that the statement— “(a) “(b) is to be used for the purposes of this section; and is in any material respect incorrect or incomplete.
“207BB Party secretaries must aggregate certain party 15 donations into group donations “(1) Whenever a party secretary receives a donation from a body corporate (body A), the party secretary must, on the basis of the information provided under section 207BA, check whether party donations have been received from 1 or more 20 other bodies corporate (bodies B) that are associated entities of body A.
If party donations have been received from body A and bodies B, the party secretary must— “(a) “(2) establish a list that shows body A and bodies B as a 25 group of associated entities that have made donations and assign a name to the group; or confirm that a list under paragraph (a) has already been established for associated entities of body A and make any necessary amendments to that list, including 30 the name assigned to the group.
“(b) “(3) A list established under subsection (2) must show— “(a) “(b) the amounts of the party donations made by each body corporate in any calendar year; and the sum of all those amounts for any completed calendar 35 year.
28 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 16 “(4) For the purposes of section 210(1)(a) and (2) , the sum required to be shown under subsection (3)(b) for the relevant calendar year— “(a) is deemed to be a single donation made on the imme- diately preceding 31 December by the group named in 5 the list established under subsection (2); and “(b) must accordingly be set out in the return of party do- nations required to be filed under section 210(1) if that sum exceeds $10,000.
“(5) This section does not affect any obligation to disclose a party 10 donation that is required to be disclosed under section 210 or 210C and any such obligation has effect even though that party donation is included in the aggregated party donations disclosed because of subsection (4).” 15 16 Contributors to be identified Section 207C(1) is amended by inserting “(other than an anonymous donation)” after “donation”.
15 New sections 207CA and 207CB inserted The following sections are inserted after section 207C: “207CA Party donations funded by contributions made by 20 “(1) bodies corporate In this section and in section 207CB, donation funded from corporate contributions means a party donation funded from contributions that consist of or include contributions made by 1 or more bodies corporate.
“(2) A donation funded from corporate contributions must, in re- spect of each contributor that is a body corporate and that has made a contribution that in sum or value is over $1,000, be accompanied by a written statement that complies with the re- quirements of subsection (3).
25 30 “(3) The statement referred to in subsection (2) must be signed and dated by an officer of the body corporate and must— “(a) set out the names of all the associated entities that the body corporate has as at the date of the statement; or state that, as at that date, the body corporate has no 35 associated entities.
“(b) 29 Part 1 cl 16 Electoral (Finance Reform and Advance Voting) Amendment Bill “(4) If a party secretary receives a donation funded from corporate contributions that does not comply with subsection (2) in any respect, the party secretary must, within 20 working days of receipt of the donation, give back to the donor the entire amount of the donation or its entire value.
5 “(5) For the purposes of section 207CB, any amount given back by a party secretary under subsection (4) is taken not to have been received by the party secretary.

“(6) Every person commits an offence, and is liable on summary conviction to a fine not exceeding $40,000, who signs a state- 10 ment of the kind described in subsection (3) if the person knows that the statement— “(a) “(b) is to be used for the purposes of this section; and is in any material respect incorrect or incomplete.
“(7) Nothing in this section limits section 207C.
15 “207CB Party secretaries must aggregate certain contributions into group contributions “(1) Whenever a party secretary receives a party donation funded from corporate contributions, the party secretary must, on the basis of the information provided under section 207CA, 20 check in respect of each body corporate (body A) that has made a contribution whether it is an associated entity of 1 or more other bodies corporate (bodies B) that have made contributions to that party donation or to any previous party donation funded from corporate contributions.
If contributions that are each over $1,000 in sum or value have been made by body A and bodies B, the party secretary must— establish a list that shows body A and bodies B as a “(a) group of associated entities that have made contribu- tions and assign a name to the group; or confirm that a list under paragraph (a) has already been established for associated entities of body A and make any necessary amendments to that list, including the name assigned to the group.
“(b) “(2) 25 30 “(3) A list established under subsection (2) must show— 35 30 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 17 “(a) “(b) the amounts of the contributions that are each over $1,000 in sum or value that have been made by each body corporate in any calendar year; and the sum of all those amounts for any calendar year.
“(4) For the purposes of section 210(1)(b) and (3) , the sum required 5 to be shown under subsection (3)(b) for the relevant calendar year— “(a) is deemed to be a single contribution made on the im- mediately preceding 31 December by the group named in the list established under subsection (2); and “(b) must accordingly be set out in the return of party do- nations required to be filed under section 210(1) if that sum exceeds $10,000.
10 “(5) This section does not affect any obligation to disclose a con- tribution that is required to be disclosed under section 210 and 15 any such obligation has effect even though that contribution is included in the aggregated contributions disclosed because of subsection (4).” 17 (1) (2) “(2) Overseas donation may not exceed $1,000 The heading to section 207K is amended by inserting “or con- 20 tribution” after “donation”.
Section 207K is amended by repealing subsection (2) and sub- stituting the following subsections: If a candidate receives from an overseas person a donation that either on its own or when aggregated with all other donations 25 made by or on behalf of the same overseas person for use in the same campaign exceeds $1,000, the candidate must, within 20 working days of receipt of the donation,— “(a) return to the overseas person the total amount donated by the overseas person, or its value, less $1,000; or if this is not possible, pay the total amount donated by the overseas person, or its value, less $1,000 to the Chief Electoral Officer.
“(b) 30 “(2A) If a party secretary receives from an overseas person a dona- tion that either on its own or when aggregated with all other 35 donations made by or on behalf of the same overseas person during the same year ending 31 December exceeds $1,000, the 31 Part 1 cl 18 Electoral (Finance Reform and Advance Voting) Amendment Bill party secretary must, within 20 working days of receipt of the donation,— “(a) return to the overseas person the total amount donated by the overseas person, or its value, less $1,000; or if this is not possible, pay the total amount donated 5 by the overseas person, or its value, less $1,000 to the Electoral Commission.” “(b) 18 Duty of Chief Electoral Officer in relation to donations Section 207O is amended by adding the following subsection as subsection (2): 10 “(2) Subsection (1) does not apply if the Chief Electoral Officer considers that the offence is so inconsequential that there is no public interest in reporting those facts to the New Zealand Police.” 19 Duty of Electoral Commission in relation to donations Section 207P is amended by adding the following subsection as subsection (2): 15 “(2) Subsection (1) does not apply if the Electoral Commission considers that the offence is so inconsequential that there is no public interest in reporting those facts to the New Zealand 20 Police.” Return of candidate donations Section 209(1) is amended by repealing paragraph (d) and sub- stituting the following paragraphs: “(d) the details specified in subsection (5) in respect of 25
 every candidate donation received by him or her from an overseas person that, either on its own or when ag- gregated with all other donations made by or on behalf of the same overseas person for use in the same cam- paign, exceeds $1,000; and the details specified in subsection (5A) in respect of every contribution to a candidate donation received by him or her from an overseas person that exceeds $1,000.” 30 “(e) 20 (1) 32 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 21 (2)
 Section 209(2) is amended by repealing paragraphs (c) and (d) and substituting the following paragraphs: “(c) the amount of the donation or, in the case of aggregated donations, the total amount of the donations; and the date the donation was received or, in the case of 5 aggregated donations, the date that each donation was received.” “(d) (3) Section 209 is amended by repealing subsection (5) and sub- stituting the following subsections: “(5) The details referred to in subsection (1)(d) are— 10 “(a) “(b) “(c) “(d) “(e) the name of the overseas person; and the address of the overseas person; and the amount of the donation or, in the case of aggregated donations, the total amount of the donations; and the date the donation was received or, in the case of 15 aggregated donations, the date each donation was re- ceived; and the amount returned to an overseas person or paid to the Chief Electoral Officer under section 207K(2), and the date of that return or payment, as the case may be.
20 “(5A) The details referred to in subsection (1)(e) are— “(a) “(b) “(c) “(d) “(e) the name of the overseas person; and the address of the overseas person; and the amount of the contribution; and the date on which the related donation funded from the 25 contribution was made; and the amount returned to the donor or paid to the Chief Electoral Officer under section 207K(3), and the date of that return or payment, as the case may be.” 21 (1) Annual return of party donations Section 210(1) is amended by repealing paragraph (d) and sub- stituting the following paragraphs: “(d) the details specified in subsection (5) in respect of every party donation received by him or her from an overseas person that, either on its own or when aggre- 35 gated with all other donations made by or on behalf 30 33 Part 1 cl 21 Electoral (Finance Reform and Advance Voting) Amendment Bill of the same overseas person during the year, exceeds $1,000; and “(da) the details specified in subsection (5A) in respect of every contribution to a party donation received by him or her from an overseas person that exceeds $1,000; 5 and”.
(2) (3) Section 210(1) is amended by adding “; and” and also by adding the following paragraph: “(f) the details specified in subsection (6A) in respect of all other party donations received by him or her.” Section 210(2) is amended by repealing paragraphs (c) and (d) and substituting the following paragraphs: “(c) the amount of the donation or, in the case of aggregated donations, the total amount of the donations; and the date the donation was received or, in the case of 15 aggregated donations, the date that each donation was received.” “(d) 10 (4) Section 210 is amended by repealing subsection (5) and sub- stituting the following subsections: “(5) The details referred to in subsection (1)(d) are— 20 “(a) “(b) “(c) “(d) “(e) the name of the overseas person; and the address of the overseas person; and the amount of the donation or, in the case of aggregated donations, the total amount of the donations; and the date the donation was received or, in the case of 25 aggregated donations, the date each donation was re- ceived; and the amount returned to an overseas person or paid to the Electoral Commission under section 207K(2A), and the date of that return or payment, as the case may be.
30 “(5A) The details referred to in subsection (1)(da) are— “(a) “(b) “(c) “(d) the name of the overseas person; and the address of the overseas person; and the amount of the contribution; and the date on which the related donation funded from the 35 contribution was made; and 34 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 1 cl 24 “(e) the amount returned to the donor or paid to the Electoral Commission under section 207K(3), and the date of that return or payment, as the case may be.” (5) Section 210 is amended by inserting the following subsection after subsection (6): 5 anonymous party donations not exceeding $1,000: “(6A) The details referred to in subsection (1)(f) are the total amounts for each of the following categories of party dona- tions (inclusive of contributions): “(a) “(b) overseas party donations not exceeding $1,000: all other party donations not exceeding $1,000: “(c) all party donations exceeding $1,000 but not exceeding “(d) $5,000: all party donations exceeding $5,000 but not exceeding $10,000.” “(e) 10 15 22 Offences relating to return of party donations Section 210D is amended by repealing subsection (1) and sub- stituting the following subsection: “(1) A party secretary commits an offence and is liable on summary conviction to a fine not exceeding $40,000 who fails, without 20 reasonable excuse, to comply with— “(a) “(b) section 210: section 210C.” 23 24 (1) (2) Sections 221 and 221A repealed Sections 221 and 221A are repealed.
Punishment for corrupt or illegal practice Section 224(2)(a) is amended by inserting “6AA or” after “Part”.

Section 224(2) is amended by inserting the following para- graph after paragraph (a): “(ab) $40,000 in the case of a person who is a registered pro- moter and who is convicted of any illegal practice under Part 6AA; or”.
25 30 35 Part 1 cl 25 Electoral (Finance Reform and Advance Voting) Amendment Bill 25 (1) (2) Time limit for prosecutions Section 226(1) is amended by repealing paragraph (d) and sub- stituting the following paragraph: “(d) section 210D(1)(a).” Section 226 is amended by inserting after the following sub- 5 section after subsection (1): “(1A) A prosecution under section 210D(1)(b) must be com- menced— “(a) within 6 months of the date on which the prosecutor is satisfied that there is sufficient evidence to warrant the 10 commencement of the proceedings; but “(b) not later than 3 years after the offence was committed.” 26 New section 266A inserted The following section is inserted after section 266: “266A Expenditure limits to be adjusted each year by Order in Council “(1) The Governor-General must, by Order in Council made on the recommendation of the Minister, in the manner provided in subsections (2) to (5), adjust the amounts specified in the following provisions: “(a) section 204B(1)(d) (which relates to the maximum amount of advertising expenses that may be incurred by an unregistered promoter): “(b) section 205B (which relates to the maximum amount “(c) of a candidate’s election expenses): section 206B (which relates to the maximum amount of a party’s election expenses).
“(2) The first Order in Council must— 15 20 25 “(a) “(b) come into force on 1 July 2011; and adjust the amounts referred to in subsection (1)(b) 30 and (c) to reflect the movement between the CPI for the quarter ending 31 December 2010 and the CPI for the quarter ending 31 March 2011.
“(3) Every subsequent Order in Council must— “(a) “(b) come into force on every following 1 July; and adjust all of the amounts referred to in subsection (1) to reflect the movement between the CPI for the quarter 35 36 Electoral (Finance Reform and Advance Voting) Amendment Bill Part 2 cl 28 “(4) “(5) “(6) “(7) ending 31 March of the previous year and the CPI for the quarter ending 31 March of the current year.
If after adjustment in accordance with subsection (3)(b) any of the amounts specified in the following sections is not a whole number of hundred dollars, the adjusted amount must 5 be rounded up to the next whole hundred dollars: “(a) section 204B(1)(d): “(b) section 205B(1)(a) and (b): “(c) section 206B(1)(b) and (2).
If after adjustment in accordance with subsection (3)(b) the 10 amount specified in section 206B(1)(a) is not a whole num- ber of thousand dollars, the adjusted amount must be rounded up to the next whole thousand dollars.

If an adjusted amount has been rounded up in accordance with subsection (4) or (5), the adjustment to that amount made 15 the following year must be based on the adjusted amount as it was before it was rounded up.
In this section CPI means the Consumers Price Index All Groups published by Statistics New Zealand.

“Compare: 2007 No 111 s 134”.

20 Part 2 Transitional provision and consequential amendments to other enactments 27 (1) (2) Transitional provision Sections 207BA and 207BB of the principal Act (as inserted 25 by section 14 of this Act) do not apply to any donations re- ceived before 1 January 2011.
Sections 207CA and 207CB of the principal Act (as inserted by section 16 of this Act) do not apply to any donation funded by contributions that is received before 1 January 2011.

30 Amendments to Citizens Initiated Referenda Act 1993 28 Amendments to Citizens Initiated Referenda Act 1993 Sections 29 and 30 amend the Citizens Initiated Referenda Act 1993.
35 37 Part 2 cl 29 Electoral (Finance Reform and Advance Voting) Amendment Bill Application of Electoral Act 1993 to indicative referendum not conducted by postal voting Section 24(5) is amended by omitting “203, 204, 205 to 210F, 221, 221A” and substituting “203 to 210F”.

Application of Electoral Act 1993 to indicative referendum 5 conducted by postal voting Section 24A(3) is amended by— (a) omitting “203, 205 to 205S” and substituting “203 to 205S”; and omitting “221, 221A,”.
(b) Amendment to Privacy Act 1993 Amendment to Privacy Act 1993 This section amends the Privacy Act 1993.

The item relating to the Electoral Act 1993 in Part 1 of Sched- ule 2 is amended by inserting “204S,” after “109,”.

10 15 Amendments to Electoral Regulations 1996 Amendments to Electoral Regulations 1996 This section amends the Electoral Regulations 1996.

Regulation 21(5)(a)(i) is amended by omitting “form 16 or”.
Regulation 24(2)(b) is amended by omitting “regulations 26” 20 and substituting “regulations 25”.

Regulation 24(3) is revoked.

Regulation 24(4) is amended by omitting “and who has made a declaration in accordance with regulation 25”.

Regulation 24(9)(b) is amended by omitting “, together with 25 the declarations by special voters to whom this regulation ap- plies”.

Regulation 25(1A) is amended by omitting “in form 16 or”.

Schedule 1 is amended by revoking form 16.


Wellington, New Zealand: Published under the authority of the New Zealand Government—2010 29 30 31 (1) (2) 32 (1) (2) (3) (4) (5) (6) (7) (8) 12 38