Source: https://www.scribd.com/document/234497/NZ-Govt-Electoral-Finance-Bill
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NZ Govt - Electoral Finance Bill | Elections | Fine (Penalty)
NZ Govt - Electoral Finance Bill
Description: Fran O'Sullivan sums it up best: "The Electoral Finance Bill caps third-party expenditure at $60,000, attacks freedom of expression, and, makes it illegal for publishers to print advertisements cam...
Fran O'Sullivan sums it up best: "The Electoral Finance Bill caps third-party expenditure at $60,000, attacks freedom of expression, and, makes it illegal for publishers to print advertisements campaigning against policies the Government backs without making onerous checks to ensure clients are within the law. It’s an extraordinarily draconian attack on New Zealanders’ democratic rights."
Electoral Finance Bill Government Bill Explanatory Note General policy statement This Bill creates a stand-alone
Act (the Electoral Finance Act) to provide more transparency and accountability in the democratic process, prevent the undue influence of wealth, and promote participation in parliamentary democracy. The Bill draws together the provisions relating to electoral finance into one comprehensive scheme. The Bill is designed to address problems identified by the courts and others in order to maintain public and political confidence in the administration of parliamentary elections, and the continued functioning of our democracy. The Bill is an omnibus Bill as it significantly amends the Electoral Act 1993 and also amends the Broadcasting Act 1989. It is intended that the provisions of the Bill amending these 2 Acts will be divided into 2 separate Acts at the committee of the whole House stage. Background In 1986 the Royal Commission on the Electoral System made several recommendations for amendments to electoral legislation to strengthen the electoral finance regime in anticipation of Mixed Member Proportional representation (MMP). Recommendations included proposals on election spending by political parties, candidates, and third parties. Some of the Royal Commission's recommendations were adopted when the Electoral Act 1993 was enacted. After 4 MMP elections further issues, including some of the Royal Commission's unimplemented recommendations, have been identified as requiring legislative attention. Successive Justice and Electoral Committees, including the Committee that reported on 8 September 2006, have also recommended a review of the electoral finance regime. The 2005 General Election brought concerns about the rules governing electoral finance into sharper focus. Allegations were reported to the police about breaches of electoral finance rules, including breaches of third party advertising rules and overspending on election broadcasts, but prosecutions did not proceed. The Peters v Clarkson election petition, although not upheld in court, raised questions about the interpretation of current law, for example, the treatment of dual-purpose advertisements. For these reasons Cabinet agreed, in April 2006, to a targeted review of the electoral finance regime, focusing on the electoral expense, advertising, and broadcasting rules, including--o o o o a review of what an "election expense" is, what the limits should be, and how expenses can be apportioned between parties and constituency candidates: whether third parties should be subject to election expense limits and the requirement to furnish returns: political donations: whether there is an alternative approach to the current regime, including
the campaign funding of parties and constituency candidates, which would be simpler for parties, candidates, and administrators. The policy objectives of the Bill are to--o o o o o o o maintain public and political confidence in the administration of elections: promote participation in parliamentary democracy: prevent the undue influence of wealth: provide transparency and accountability to minimise the perception of corruption: contain rules that are effective and clear, and can be administered, complied with, and enforced efficiently: reflect our unique political culture and environment: promote participation in the electoral process by lessening the advantage held by those with access to large financial resources.
To advance these objectives, the Bill amends the electoral finance regime in the following areas--o o o o political donations: election expenses: third party advertising: compliance and enforcement.
The Bill also amends the broadcasting regime for election programmes. Political donations The Bill requires all registered parties, candidates, and third parties to appoint a financial agent to be responsible for accepting and reporting on donations, and for incurring, paying, and reporting on election expenses. This amendment will ensure that there is a clear line of accountability for receiving donations and incurring expenses. The Bill extends the definition of donation to include the provision of over-valued goods and services by a party, candidate, or third party, and money lent to a party, candidate, or third party otherwise than on commercial terms. Additional disclosure is required to the Electoral Commission if a party receives a single donation over $20,000 or a donation that, when aggregated with all previous donations known by the financial agent to have been made by the same donor in the last 12 months, exceeds a multiple of $20,000. These amendments will improve the transparency and the accountability of the current disclosure regime, in order to provide voters with information about the sources of private financial support for political parties and candidates. Election expenses The Bill specifically defines election expenses for candidates, parties, and
third parties. The Bill provides for the apportionment of dual-purpose election activities between constituency candidates and parties based on coverage. This amendment will allow for the fair apportionment of expenses for dual purpose activities. The definition of election activity is updated by the Bill to cover new technologies and media and will ensure that the definition covers electoral advertising and promotion activities, regardless of the medium through which they are delivered. References to "appearing to encourage or persuade" in the current definition have raised questions about the types of activities that are captured. The amendment to specifically provide that an advertisement may constitute an election activity even though it does not expressly mention of the name of a party or candidate will afford additional clarity. The Bill defines commercial value in relation to materials and advertising space to ensure that parties or candidates with existing trade relationships cannot obtain unfair advantage. The meaning of materials is also amended by the Bill to provide greater clarity. The disclosure regime for election expenditure is strengthened by the Bill. These amendments will encourage compliance with the expenditure limits. Third parties The Bill creates a regime for additional regulation of third parties in New Zealand. Third parties are defined as persons and entities other than candidates, parties, and financial agents of candidates or parties. The Bill requires third parties to--o o o o o notify the Chief Electoral Officer of their involvement in election activity if they are going to incur election expenses over a threshold: file a return disclosing election expenditure relating to the third party activities: file a return disclosing all donations received over $500 in sum or value (inclusive of goods and services tax): pay to the Chief Electoral Officer any anonymous donation received that exceeds $500 in sum or value (inclusive of goods and services tax): be subject to election expenditure limits.
The Bill defines, in relation to third parties, third party activity and election expense. These definitions are necessary to set the parameters within which the third party regime applies. Third party election advertisements that are authorised by a candidate or a party are included in both the third party expenditure limit and the candidate's or party's expenditure limit. This will result in greater transparency about total election expenditure and is the most effective way of ensuring that candidates, parties, and third parties cannot avoid their expenditure limits by acting in concert. The additional regulation of third parties will---
provide more transparency: limit the potential for unlimited parallel election campaigns that undermine the objectives of expenditure limits for parties and candidates: ensure that election advertising by third parties cannot overwhelm the speech of political parties and candidates: reduce the ability of third parties to attack a party that cannot respond because it has reached its spending limit.
Compliance and enforcement The Bill strengthens the penalties for corrupt and illegal practices, includes a new penalty providing for payment to the Crown of the value of any financial benefit derived from offending, and extends the time limits for prosecution in respect of a number of offences. These amendments will encourage compliance, that will in turn enhance public confidence in the electoral system. Broadcasting The Bill removes the requirement for political representatives to be appointed to the Electoral Commission for the purpose of its jurisdiction under the Broadcasting Act 1989. The Bill provides for a common start date (from writ day) for candidates and parties for the broadcast of election programmes and simplifies the process for making complaints about election broadcasting. The common start date will eliminate the confusion that was associated with candidates and parties having different start dates for when election programmes may be broadcast. Clause by clause analysis Clause 1 relates to the Title of the Bill. Clause 2 provides that the Bill comes into force on the day after the date on which it receives the Royal assent. Part 1 Preliminary provisions Clause 3 sets out the purpose of the Bill. Clause 4 is the interpretation clause. Key terms that are introduced into electoral law are candidate advertisement, election advertisement, financial agent, party advertisement, promoter, regulated period, and third party. Clause 5 sets out the meaning of election advertisement. Appointments Clause 6 requires for administering donations and his herself as his or a candidate to appoint a financial agent to be responsible the candidate's financial transactions in relation to or her election expenses. A candidate may appoint himself or her own financial agent.
Clause 7 requires the secretary of a registered political party to appoint a financial agent for the party to be responsible for administering the party's
financial transactions in relation to donations and its election expenses. A party secretary may appoint himself or herself as the party's financial agent. Clause 8 requires a third party to appoint a financial agent to be responsible for administering the third party's financial transactions for its promotion of election advertisements. If the third party is an individual, the third party may appoint himself or herself as the third party's financial agent. Clause 9 provides that a person is eligible to be appointed as a financial agent under clause 6, 7, or 8 only if the person is a registered elector resident in New Zealand, and has not been convicted of an offence of dishonesty or a corrupt practice. Clause 10 requires a candidate to appoint an auditor if the candidate is required by clause 73 to obtain an auditor's report on his or her return of election expenses. Clause 11 requires a registered party to appoint an auditor. Clause 12 requires a third party to appoint an auditor if the third party is required by clause 112 to obtain an auditor's report on his or her or its return of election expenses. Clause 13 sets out a list of persons who cannot be appointed as an auditor for a candidate, a registered party, or a third party. A person cannot be appointed as an auditor if that person is a constituency or list candidate, an employee or partner of a candidate, an officer or employee of a registered party or third party, a body corporate, a person disqualified from acting as an auditor under section 199(1) of the Companies Act 1993, a financial agent, or a Returning Officer. Listing of third parties Clause 14 lists persons eligible to be a third party. A registered elector, a body corporate that is not an overseas person (within the meaning of the Overseas Investment Act 2005), and an unincorporated body all of whose members are registered electors may be a third party. A constituency or list candidate, a party, and the financial agent of a candidate or party are ineligible to be a third party. Clause 15 requires the Chief Electoral Officer to establish, maintain, and publish a list of third parties. Clause 16 provides that applications to be listed as a third party must be made by a promoter to the Chief Electoral Officer and details the requirements of applications. Clause 17 sets out the times when listing as a third party is prohibited. Clause 18 sets out the grounds on which an application to be listed as a third party must be refused. Clause 19 sets out the responsibilities of the Chief Electoral Officer in relation to the listing of, or refusal to list, a third party. Clause 20 requires changes of third party particulars to be notified to the Chief Electoral Officer.
Clause 21 sets out when the Chief Electoral Officer must cancel the listing of a third party. Part 2 Election campaigns Subpart 1---General provisions relating to donations Clause 22 defines terms used in subparts 1 to 4 of Part 2. These include anonymous, candidate donation, party donation, third party donation, and specified amount. Clause 23 provides that all candidate donations, party donations, and third party donations given or sent to any person must be transmitted to the financial agent of the candidate, party, or third party, as the case may be. Clause 24 provides that where a person who is involved in the administration of the affairs of a candidate, party, or third party knows the name and address of the donor of an anonymous donation, that person must disclose the donor's name and address to the financial agent of the candidate, party, or third party, as the case may be. Clause 25 creates an offence relating to contravention of clause 24. Clause 26 requires every financial agent to keep proper records of all donations that he or she receives. It is an offence to contravene this requirement without reasonable excuse. Clause 27 provides that if the Chief Electoral Officer believes any person has committed an offence against subpart 2 or 4, he or she must report the facts upon which that belief is based to the New Zealand Police. Clause 28 provides that if the Electoral Commission believes any person has committed an offence against subpart 3, it must report the facts upon which that belief is based to the New Zealand Police. Subpart 2---Disclosure of candidate donations Clause 29 imposes an obligation on a financial agent for a candidate to file with the Chief Electoral Officer, at the same time as filing a return of election expenses, a return of donations. The return must set out details of all candidate donations received from the same donor that, taken either singularly or when aggregated, exceed $1,000 in sum or value (inclusive of goods and services tax), and details of all anonymous candidate donations received that exceed $1,000 in sum or value (inclusive of goods and services tax). Clause 30 requires the provision of a nil return if the financial agent considers there is no relevant information to disclose under clause 29. Clause 31 requires a financial agent to retain all records, documents, and accounts that are necessary to enable a return of candidate donations to be verified. It is an offence to contravene this requirement without reasonable excuse. Clause 32 creates offences for the contravention of clause 29 relating to the return of candidate donations.
Clause 33 requires the Chief Electoral Officer to send a copy of every return of donations filed by a candidate's financial agent to the Electoral Commission. The Chief Electoral Officer must make copies of the return available for public inspection and may publish every return in any manner that he or she considers appropriate. Clause 34 prescribes the period for which the Chief Electoral Officer and the Electoral Commission must keep a return of candidate donations. On the expiry of the prescribed period the Chief Electoral Officer and the Electoral Commission must destroy the return. Subpart 3---Disclosure of party donations Clause 35 imposes an obligation on a financial agent for a party to file with the Electoral Commission, by 30 April in each year, a return of party donations for the year ending with the immediately preceding December. The return must set out details of every party donation received that, either on its own or when aggregated with all other donations made by the same donor during the year, exceeds $10,000 in sum or value (inclusive of goods and services tax), and details of every anonymous party donation received that exceeds $10,000 in sum or value (inclusive of goods and services tax). Clause 36 requires a financial agent, before making the return required by clause 35, to obtain an auditor's report on the return. Clause 37 requires the provision of a nil return if the financial agent considers there is no relevant information to disclose under clause 35. Clause 38 requires a financial agent to file with the Electoral Commission a return in respect of every party donation received from the same donor that exceeds $20,000 or, when aggregated with all other donations received from the donor in the previous 12 months, exceeds a multiple of $20,000. Clause 39 requires a financial agent to retain all records, documents, and accounts that are necessary to enable returns of party donations to be verified. It is an offence to contravene this requirement without reasonable excuse. Clause 40 creates offences for the contravention of clause 35 or 38 relating to returns of party donations. Clause 41 requires the Electoral Commission to make available for public inspection every annual return of party donations and accompanying auditor's report filed under clause 35, and every return filed under clause 38. The Electoral Commission may publish every return and report in any manner that it thinks appropriate. Subpart 4---Disclosure of third party donations Clause 42 provides that an in sum or value (inclusive excess of this amount must turn pay the amount into a anonymous third party donation may not exceed $500 of goods and services tax). An anonymous donation in be paid to the Chief Electoral Officer (who must in Crown Bank Account).
Clause 43 creates offences relating to anonymous third party donations. Clause 44 provides that where a donor makes a third party donation that includes funds contributed by other persons who expect or require those funds
to be applied as a donation, this must be disclosed at the time the donation is made. Where a donor does not disclose, or is unable to disclose, in respect of each contributor whose contribution exceeds $500 the name and address of the contributor and the amount of the contribution, then the donation must be treated as an anonymous third party donation. Clause 45 provides that where a third party donation is given or sent to a person (a transmitter) for forwarding to a financial agent, this must be disclosed when the transmitter forwards the donation together with the name and address of the donor and any contributors. Where the transmitter does not disclose, or is unable to disclose, the identity of the donor or any contributor, then the donation must be treated as an anonymous third party donation. Clause 46 creates an offence relating to contravention of clause 45. Clause 47 imposes an obligation on a financial agent for a third party to file with the Chief Electoral Officer, at the same time as filing a return of election expenses, a return setting out details of every third party donation received that, either on its own or when aggregated with all other donations made by the same donor during the regulated period, exceeds $500 in sum or value (inclusive of goods and services tax). Clause 48 requires the provision of a nil return if the financial agent considers there is no relevant information to disclose under clause 47. Clause 49 requires a financial agent to retain all records, documents, and accounts that are necessary to enable a return of third party donations to be verified. It is an offence to contravene this requirement without reasonable excuse. Clause 50 creates offences for the contravention of clause 47 relating to returns of third party donations. Clause 51 requires the Chief Electoral Officer to send a copy of every return of donations filed by a third party's financial agent to the Electoral Commission. The Chief Electoral Officer must make copies of the return available for public inspection and may publish every return in any manner that he or she considers appropriate. Clause 52 prescribes the period for which the Chief Electoral Officer and the Electoral Commission must keep a return of a third party's donations. On the expiry of the period the Chief Electoral Officer and the Electoral Commission must destroy the return. Subpart 5---General rules governing election advertisements Clause 53 provides that election advertisements may not be published in a regulated period unless certain conditions are met. Clause 54 provides that it is an offence to avoid the financial limits set out in clause 53. Clause 55 provides that an election advertisement that encourages or persuades, or appears to encourage or persuade, voters to vote for a party or candidate must be authorised in writing by the financial agent of the party or the candidate, as the case may be. An election advertisement that encourages or
persuades, or appears to encourage or persuade, voters to vote for 2 or more candidates must be authorised in writing by the financial agent of each of the candidates or by the financial agent of the party to which the candidates belong. The election advertisement must state the name and address of the promoter who has promoted the advertisement. Clause 56 prohibits the making of payments for the exhibition of election advertisements. (This provision is based on section 219 of the Electoral Act 1993.) Clause 57 exempts advertisements of a specified kind from prohibitions or restrictions imposed by bylaws or enactments. (This provision is based on section 221B of the Electoral Act 1993.) Subpart 6---Candidates' election expenses Clause 58 defines terms used in subpart 6 of Part 2. An important term is candidate activity. This is defined as an activity, undertaken during a regulated period by, or with the authority of, the candidate or the candidate's financial agent, that comprises the publication of a candidate advertisement in any form (for example, in the form of a radio or television broadcast, notice, poster, pamphlet, billboard, or electronic message). Clause 59 defines the term election expense for the purposes of subpart 6. This includes, among other items, the preparation, design, composition, printing, distribution, postage, and publication of a candidate advertisement. Specified matters, such as the cost of travel and the labour of any person that is provided free of charge, are excluded. Clause 60 provides that an election expense in relation to a candidate may be incurred only by that candidate's financial agent. Clause 61 creates offences relating to the contravention of clause 60, and to agreements, arrangements, or understandings undertaken to avoid the requirements of that clause. Clause 62 prescribes the maximum amount of a candidate's election expenses in respect of any regulated period. These amounts are the same as currently set out in the Electoral Act 1993. Clause 63 provides for the apportionment of the election expense of an election activity undertaken both before and within the regulated period. Clause 64 provides for the apportionment of the election expense of an election activity that comprises 2 or more candidate activities. Clause 65 provides for the apportionment of the election expense of an election activity that comprises both a candidate activity and a party activity. Clause 66 provides that in certain circumstances the cost of a party advertisement is deemed to be an election expense of a candidate. Clause 67 provides that if a candidate's election expenses exceed the prescribed limit, the candidate's financial agent, if the contravention is known, is guilty of a corrupt practice, and is otherwise guilty of an illegal practice unless the agent provides that he or she took all reasonable steps to ensure that the prescribed limit was not exceeded.
Clauses 68 to 71 re-enact the substance of sections 206 to 209 of the Electoral Act 1993. Clause 68 prescribes periods for claiming and paying an election expense of a candidate. Clause 69 prescribes the procedure to be followed where a claim is disputed. Clause 70 gives the District Court power to grant leave to a financial agent to pay a disputed claim or a claim submitted after the permitted time for making claims has expired. Clause 71 provides that an election expense over $50 must be invoiced before it can be paid. Clause 72 requires a candidate's financial agent to file with the Chief Electoral Officer a return of election expenses. A return must be in the form supplied by the Chief Electoral Officer, be filed within 70 working days after polling day, and be accompanied by an auditor's report if required by clause 73. Clause 73 requires a financial agent to obtain an auditor's report before filing the return required by clause 72 if the candidate's total election expenses exceed 75% of either of the maximum amounts prescribed in clause 62. Clause 74 requires the provision of a nil return if the financial agent considers there is no relevant information to disclose under clause 72. Clause 75 creates offences for the contravention of clause 72 relating to a candidate's return of election expenses. Clause 76 requires a financial agent to retain all records, documents, and accounts that are necessary to enable a return of a candidate's election expenses to be verified. It is an offence to contravene this requirement without reasonable excuse. Clause 77 provides that if the Chief Electoral Officer believes any person has committed an offence against subpart 6, he or she must report the facts upon which that belief is based to the New Zealand Police. Clause 78 requires the Chief Electoral Officer to send a copy of every return of a candidate's election expenses and any accompanying auditor's report to the Electoral Commission. The Chief Electoral Officer must make copies of the return and report available for public inspection and may publish every return and report in any manner that he or she considers appropriate. Clause 79 prescribes the period that the Chief Electoral Officer and the Electoral Commission must keep a return of a candidate's election expenses and any accompanying auditor's report. On the expiry of the prescribed period the Chief Electoral Officer and the Electoral Commission must destroy the return and report. Subpart 7---Parties' election expenses Clause 80 defines terms used in subpart 7 of Part 2. An important term is party activity. This is defined as an activity, undertaken during a regulated period by, or with the authority of, a party or the party's financial agent, that comprises the publication of a candidate advertisement in any form (for
example, in the form of a radio or television broadcast, notice, poster, pamphlet, billboard, or electronic message). Clause 81 defines the term election expense for the purposes of subpart 7. This includes, among other items, the preparation, design, composition, printing, distribution, postage, and publication of a party advertisement. Specified matters, such as the cost of travel and the labour of any person that is provided free of charge, are excluded. Clause 82 provides that an election expense in relation to a party may be incurred only by that party's financial agent. Clause 83 creates offences relating to the contravention of clause 82, and to agreements, arrangements, or understandings undertaken to avoid the requirements of that clause. Clause 84 prescribes the maximum amount of a party's election expenses in respect of any regulated period. These amounts are the same as currently set out in the Electoral Act 1993. Clause 85 provides for the apportionment of party activities that are undertaken both before and during a regulated peirod. Clause 86 provides that if a party's total election expenses exceed the prescribed limit, the party's financial agent, if the contravention is known, is guilty of a corrupt practice, and is otherwise guilty of an illegal practice unless the agent provides that he or she took all reasonable steps to ensure that the prescribed limit was not exceeded. Clauses 87 to 90 re-enact sections 214BA to 214BD of the Electoral Act 1993. Clause 87 prescribes periods for claiming and paying an election expense of a party. Clause 88 prescribes the procedure to be followed where a claim is disputed. Clause 89 gives a District Court power to grant leave to a party's financial agent to pay a disputed claim or a claim submitted after the permitted time for making claims has expired. Clause 90 provides that an election expense over $50 must be invoiced before it can be paid. Clause 91 requires a party's financial agent to file with the Electoral Commission a return of election expenses. A return must be in the form supplied by the Electoral Commission, be filed within 50 working days after the declaration made under section 193(5) of the Electoral Act 1993, and be accompanied by an auditor's report obtained under section 92. Clause 92 requires a party's financial agent to obtain an auditor's report before filing the return required by clause 91. Clause 93 requires the provision of a nil return if the financial agent considers there is no relevant information to disclose under clause 91. Clause 94 creates offences for the contravention of clause 91 relating to a party's return of election expenses. Clause 95 requires a financial agent to retain all records, documents, and
accounts that are necessary to enable a return of a party's election expenses to be verified. It is an offence to contravene the requirement without reasonable excuse. Clause 96 provides that if the Electoral Commission believes any person has committed an offence against subpart 7, it must report the facts upon which that belief is based to the New Zealand Police. Clause 97 requires the Electoral Commission to make every return of party election expenses and accompanying auditor's report available for public inspection. The Electoral Commission may publish every return and report in any manner that it considers appropriate. Clause return expiry return 98 prescribes the period that the Electoral Commission must keep a of a party's election expenses and accompanying auditor's report. On the of the prescribed period, the Electoral Commission must destroy the and report. Subpart 8---Third parties' election expenses Clause 99 defines terms used in subpart 8 of Part 2. An important term is third party activity. This is defined as an activity, undertaken during a regulated period by, or with the authority of, a third party or the third party's financial agent, that comprises the publication of an election advertisement in any form (for example, in the form of a radio or television broadcast, notice, poster, pamphlet, billboard, or electronic message). Clause 100 defines the term election expense for the purposes of subpart 8. This includes, among other items, the preparation, design, composition, printing, distribution, postage, and publication of an election advertisement. Specified matters, such as the cost of travel and the labour of any person that is provided free of charge, are excluded. Clause 101 provides that an election expense in relation to a third party may be incurred only by that third party's financial agent. Clause 102 creates offences relating to the contravention of clause 101, and to agreements, arrangements, or understandings undertaken to avoid the requirements of that clause. Clause 103 sets out the limits on the total advertising expenses of a third party. The expenses in respect of any regulated period must not exceed $2,000 (including goods and services tax) for advertisements that relate to a candidate in the candidate's capacity as a candidate for an electoral district and must not, in any case, exceed $60,000 (including goods and services tax). Clause 104 provides that if a third party's advertising expenses exceed the prescribed limit, the third party's financial agent, if the contravention is known, is guilty of a corrupt practice, and is otherwise guilty of an illegal practice unless the agent provides that he or she took all reasonable steps to ensure that the prescribed limit was not exceeded. Clause 105 provides for the apportionment of election expenses for the publication of an election advertisement both before and within the regulated period. Clause 106 requires certain advertising expenses to be attributed to both a third party and a party or candidate.
Clause 107 prescribes periods for claiming and paying an election expense of a third party. Clause 108 prescribes the procedure to be followed where a claim is disputed. Clause 109 gives a District Court power to grant leave to a financial agent to pay a disputed claim or a claim submitted after the permitted time for making claims has expired. Clause 110 provides that an election expense over $50 must be invoiced before it can be paid. Clause 111 requires a third party's financial agent to file with the Chief Electoral Officer a return of election expenses. A return must be in the form supplied by the Chief Electoral Officer, be filed within 70 working days after polling day, and be accompanied by an auditor's report if required by clause 112. Clause 112 requires a financial agent to obtain an auditor's report before filing the return required by clause 111 if the third party's total election expenses exceed 25% of the maximum amount prescribed by clause 103(1)(b). Clause 113 requires the provision of a nil return if the financial agent considers there is no relevant information to disclose under clause 111. Clause 114 creates offences for the contravention of clause 111 relating to a third party's return of election expenses. Clause 115 requires a financial agent to retain all records, documents, and accounts that are necessary to enable a return of a third party's election expenses to be verified. It is an offence to contravene this requirement without reasonable excuse. Clause 116 provides that if the Chief Electoral Officer believes any person has committed an offence against subpart 8, he or she must report the facts upon which that belief is based to the New Zealand Police. Clause 117 requires the Chief Electoral Officer to send a copy of every return of a third party's election expenses and any accompanying auditor's report to the Electoral Commission. The Chief Electoral Officer must make copies of the return and any accompanying report available for public inspection and may publish every return and report in any manner that he or she considers appropriate. Clause 118 prescribes the period for which the Chief Electoral Officer and Electoral Commission must keep a return and any accompanying auditor's report filed by a third party's financial agent. On the expiry of this period the Chief Electoral Officer and the Electoral Commission must destroy the return and report. Part 3 Miscellaneous Subpart 1---General provisions and penalties Clause 119 provides that where the financial agent of a candidate, party, or third party commits an offence, the candidate, party, or third party is also
liable in respect of the same offence if the candidate, party, or third party authorised the commission of the offence, or knew or could reasonably have known it was to be or was being committed and failed to take reasonable steps to stop or prevent it. Clause 120 provides that it is an offence to knowingly provide money for an illegal purpose or for election expenses incurred in excess of the maximum amounts prescribed in clauses 62, 84, and 103. Clause 121 enables a search warrant to be issued under section 198 of the Summary Proceedings Act 1957, even though an illegal practice is not punishable by imprisonment. Clause 122 sets out the time frames within which prosecutions under the various offence provisions must be commenced. Clause 123 provides that a person charged with a corrupt practice may be found guilty of an illegal practice. Clause 124 provides that the penalty that may be imposed on conviction for a corrupt practice is a term of imprisonment not exceeding 1 year, or a fine, or both. In the case of a financial agent or secretary, a fine may not exceed $40,000, and in the case of any other person a fine may not exceed $15,000. Clause 125 provides that the penalty that may be imposed on conviction for an illegal practice is, in the case of a financial agent or secretary, a fine not exceeding $40,000 and, in the case of any other person, a fine not exceeding $10,000. Clause 126 enables a court to order that any person convicted of an offence under this Act who has directly or indirectly benefited from the commission of the offence to pay to the Crown an amount equal to the value of the benefit. Subpart 2---Regulations and transitional provisions Clauses 127 and 128 relate to regulation-making powers dealing with advertisements of a specified kind. Clause 129 provides a general regulation-making power. Clause 130 sets out transitional provisions dealing with the situation where an election is underway before 1 March 2008. This Act does not apply and the provisions of the Electoral Act 1993 continue in force. Subpart 3---Consequential amendments Clause 131 provides for the consequential amendment of the Citizens Initiated Referenda Act 1993. Subpart 4---Amendments to Broadcasting Act 1989 The amendments to the Broadcasting Act 1989 in clauses 132 to 137 provide for 2 things. First, both candidates and parties are allowed to start broadcasting election programmes from writ day. Currently, a candidate may broadcast an election programme within the 3 months before polling day and a party may broadcast an election programme from writ day. Secondly, complaints about election broadcasting no longer need to be made to
broadcasters in the first instance. Instead, they may be made directly to the Broadcasting Standards Authority. Subpart 5---Amendments to Electoral Act 1993 The amendments to the Electoral Act 1993 (clauses 138 to 158) increase the penalties for corrupt practices and illegal practices, insert a new power to obtain a search warrant in relation to suspected illegal practices, and make related changes consequential to enactment of this Bill. The Electoral Act 1993 is also amended to remove the requirement for 2 political representatives to be members of the Electoral Commission for the purposes of its jurisdiction under Part 6 of the Broadcasting Act 1989. --------------------
Hon Mark Burton Electoral Finance Bill Government Bill Contents 1 2 Title Commencement Part 1 Preliminary provisions 3 4 5 Purpose Interpretation Meaning of election advertisement Appointments 6 7 8 9 10 11 12 13 Appointment of financial agent for candidate Appointment of financial agent for party Appointment of financial agent for third party Persons eligible to be appointed as financial agent Appointment of auditor for candidate Appointment of auditor for party Appointment of auditor for third party Persons eligible to be appointed as auditor
Listing of third parties 14 15 16 17 18 19 20 21 Persons eligible to be third party Chief Electoral Officer to establish, maintain, and publish list of third parties Application to be listed as third party Times when listing prohibited Grounds on which listing must be refused Listing of, or refusal to list, third party Changes to be notified to Chief Electoral Officer Cancellation of listing Part 2 Election campaigns Subpart 1---General provisions relating to donations 22 23 24 25 26 27 28 Interpretation Donations to be transmitted to financial agent Disclosure of identity of donor Offence relating to contravention of section 24 Records of donations Duty of Chief Electoral Officer Duty of Electoral Commission Subpart 2---Disclosure of candidate donations 29 30 31 32 33 34 Return of candidate donations Nil return Obligation to retain records necessary to verify return of candidate donations Offences relating to return of candidate donations Return of candidate donations to be available for public inspection Return of candidate donations to be kept for certain period Subpart 3---Disclosure of party donations 35 36 Annual return of party donations Auditor's report on annual return of party donations
Nil return Return of party donation received from same donor exceeding $20,000 Obligation to retain records necessary to verify returns of party donations Offences relating to returns of party donations Return of party donations to be available for public inspection Subpart 4---Disclosure of third party donations
Anonymous third party donation Offence in relation to anonymous third party donation Contributors to be identified, if known Identity of donor to be disclosed by transmitter, if known Offence relating to contravention of section 45 Return of third party donations Nil return Obligation to retain records necessary to verify return of third party donations Offences relating to return of third party donations Return of third party donations to be available for public inspection Return of third party donations to be kept for certain period Subpart 5---General rules governing election advertisements
Election advertisements not to be published in regulated period unless certain conditions met Offence to avoid limits set out in section 53 Requirements for election advertisements that promote parties or candidates Payments for exhibition of election advertisements Display of advertisement of a specified kind Subpart 6---Candidates' election expenses
Interpretation Meaning of election expense Election expense to be incurred by candidate's financial agent
Offence to incur unauthorised election expense Maximum amount of candidate's total election expenses Apportionment of election expense for candidate activity undertaken both before and within regulated period Apportionment of election expense of election activity between candidates Apportionment of election expense of election activity between candidate and party Cost of party activity deemed to be election expense of candidate in particular case Offences in relation to candidate's total election expenses Periods for claiming and paying candidate's election expenses Procedure where claim disputed Leave to pay claim after time limitation Election expense to be invoiced Return of candidate's election expenses Auditor's report on return of candidate's election expenses exceeding 75% of maximum amount Nil return Offences relating to return of candidate's election expenses Obligation to retain records necessary to verify return of candidate's election expenses Duty of Chief Electoral Officer Return of candidate's election expenses to be available for public inspection Return of candidate's election expenses to be kept for certain period Subpart 7---Parties' election expenses
Interpretation Meaning of election expense Election expense to be incurred by party's financial agent Offence to incur unauthorised election expense Maximum amount of party's total election expenses Apportionment of election expense for party activity undertaken both
before and within regulated period 86 87 88 89 90 91 92 93 94 95 96 97 98 Offences in relation to party's total election expenses Periods for claiming and paying party's election expenses Procedure where claim disputed Leave to pay claim after time limitation Election expense to be invoiced Return of party's election expenses Auditor's report on return of party's election expenses Nil return Offences relating to return of party's election expenses Obligation to retain records necessary to verify return of party's election expenses Duty of Electoral Commission Return of party's election expenses to be available for public inspection Return of party's election expenses to be kept for certain period Subpart 8---Third parties' election expenses 99 100 101 102 103 104 105 106 107 108 109 110 111 Interpretation Meaning of election expense Election expense to be incurred by third party's financial agent Offence to incur unauthorised election expense Maximum amount of third party's total election expenses Offences in relation to third party's total election expenses Apportionment of election expense for third party activity undertaken both before and within regulated period Election expenses attributed in respect of advertisements authorised by candidate or party Periods for claiming and paying third party's election expenses Procedure if claim disputed Leave to pay claim after time limitation Election expense to be invoiced Return of third party's election expenses
Auditor's report on return of third party's election expenses Nil return Offences relating to return of third party's election expenses Obligation to retain records necessary to verify return of third party's election expenses Duty of Chief Electoral Officer Return of third party's election expenses to be available for public inspection Return of third party's election expenses to be kept for certain period Part 3 Miscellaneous Subpart 1---General provisions and penalties
Liability of candidates, party secretaries, and third parties Providing money for illegal purposes Power to issue search warrants in respect of illegal practice Time limit for prosecution Persons charged with corrupt practice may be found guilty of illegal practice Punishment for corrupt practice Punishment for illegal practice Additional penalty Subpart 2---Regulations and transitional provisions
Regulations relating to advertisement of a specified kind Requirements before Minister can recommend that regulations be made General regulations Transitional provisions Subpart 3---Consequential amendments
Consequential amendments Subpart 4---Amendments to Broadcasting Act 1989
Principal Act amended Interpretation
Right of complainant to refer formal complaint to Authority New section 9 substituted 9 Time limits
Functions of Authority Prohibition on paid election programmes Subpart 5---Amendments to Electoral Act 1993
Principal Act amended Interpretation Electoral Commission Functions Membership Term of office Vacation of office of additional members who hold office for purposes of jurisdiction under Part 6 of Broadcasting Act 1989 Appointment of deputies Chief Electoral Officer Application for registration Registration Deposit by party secretary Deposit by candidate Deposit payable in respect of bulk nomination schedule Interfering with or influencing voters Repeals Electoral advertisements Providing money for illegal purposes Punishment for corrupt or illegal practice New section 226A inserted 226A Power to issue search warrants in respect of illegal practice
Schedule Consequential amendments -------------------The Parliament of New Zealand enacts as follows: 1 Title This Act is the Electoral Finance Act 2007. 2 Commencement This Act comes into force on the day after the date on which it receives the Royal assent. Part 1 Preliminary provisions 3 Purpose The purpose of this Act is to strengthen the law governing electoral financing and broadcasting, in order to--(a) maintain public and political confidence in the administration of elections; and (b) (c) promote participation by the public in parliamentary democracy; and prevent the undue influence of wealth on electoral outcomes; and
(d) provide greater transparency and accountability on the part of candidates, parties, and other persons engaged in election activities in order to minimise the perception of corruption; and (e) ensure that the controls on the conduct of electoral campaigns--(i) (ii) (iii) are effective; and are clear; and can be efficiently administered, complied with, and enforced.
4 Interpretation (1) address In this Act, unless the context otherwise requires,--means,---
(a) in relation to an individual, the full address of the place where that person usually lives: (b) in relation to a body corporate or unincorporated, the full address
of its principal place of business or head office candidate means a constituency candidate, and a person who becomes a candidate is deemed to be a candidate on and from the beginning of the regulated period candidate advertisement means any form of words or graphics that can reasonably be regarded as encouraging or persuading voters to do either or both of the following: (a) to vote for a candidate in the candidate's capacity as a candidate for an electoral district (whether or not the name of the candidate is stated): (b) not to vote for another candidate (whether or not the name of the candidate is stated) corrupt practice means any act declared by this Act to be a corrupt practice
donation means a donation of money or of the equivalent of money or of goods or services, or a combination of any or all of those things donor means a person who makes a donation has the meaning given to it by section 5
election advertisement financial agent,---
(a) in subpart 1 of Part 2, means a financial agent appointed under section 6, 7, or 8: (b) in subparts 2 and 6 of Part 2, means a financial agent appointed under section 6: (c) in subparts 3 and 7 of Part 2, means a financial agent appointed under section 7: (d) in subparts 4 and 8 of Part 2, means a financial agent appointed under section 8 illegal practice practice party 1993 means any act declared by this Act to be an illegal
means a political party registered under Part 4 of the Electoral Act
party advertisement means any form of words or graphics that can reasonably be regarded as encouraging or persuading voters to do either or both of the following: (a) stated): to vote for the party (whether or not the name of the party is
(b) not to vote for another party (whether or not the name of the party is stated) promoter--(a) means a person on whose initiative an election advertisement is
published; and (b) includes, without limitation, a person---
(i) who enters into a contract, arrangement, or understanding with another person to the effect that the other person publish an election advertisement; or (ii) who publishes an election advertisement in the absence of such a contract, arrangement, or understanding publication, in relation to an advertisement, means to--(a) insert in a newspaper or other periodical published or distributed in New Zealand; or (b) (c) issue, hand out, or display; or send to any member of the public by any means; or
(d) deliver to any member of the public, or leave at a place owned or occupied by a member of the public; or (e) (f) or (g) (h) broadcast; or include in a film or video; or disseminate by means of the Internet or any other electronic medium; store electronically in a way that is accessible to the public means a person registered as an elector of an electoral means---
registered elector district regulated period
(a) where a general election is held in the year in which Parliament is due to expire, whichever is the longer of the following periods: (i) the period that commences on 1 January of that year and ends with the close of polling day; or (ii) the period that commences 3 months before polling day and ends with the close of polling day: (b) subject to subsection (2), where a general election is held in any other year on the dissolution of Parliament, the period that commences 3 months before polling day and ends with the close of polling day statutory declaration means a declaration made before a person authorised under the Oaths and Declarations Act 1957 to take declarations third party means a promoter for the time being listed as a third party under section 19. (2) Where a general election is held in a year other than a year in which Parliament is due to expire, regulated period, in sections 20, 47, and 53
(which affect third parties), and subpart 8 of Part 2 (which relates to third parties' election expenses), means the period that--(a) commences---
(i) if the Prime Minister tables a statement in the House of Representatives stating that a general election is to be held in that year, on the later of the following days: (A) (B) the day after the date on which the statement is tabled: the day that is 3 months before polling day; and
(ii) in any other case, on the day after the day on which Parliament is dissolved; and (b) ends with the close of polling day.
(3) Unless the context otherwise requires, terms and expressions used and not defined in this Act, but defined in the Electoral Act 1993, have the same meaning as in that Act. 5 Meaning of election advertisement (1) In this Act, election advertisement---
(a) means any form of words or graphics, or both, that can reasonably be regarded as doing 1 or more of the following: (i) encouraging or persuading voters to vote, or not to vote, for 1 or more specified parties or for 1 or more candidates or for any combination of such parties and candidates: (ii) encouraging or persuading voters to vote, or not to vote, for a type of party or for a type of candidate that is described or indicated by reference to views, positions, or policies that are or are not held, taken, or pursued (whether or not the name of a party or the name of a candidate is stated): (iii) taking a position on a proposition with which 1 or more parties or 1 or more candidates is associated; and (b) includes--(i) (ii) (2) a candidate advertisement; and a party advertisement.
The following publications are not election advertisements:
(a) an advertisement that is published by the Chief Electoral Officer, the Chief Registrar of Electors, the Electoral Commission, 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 Government of New Zealand and relating to electoral matters or the conduct of any general election or by-election and which either contains a statement indicating that the advertisement has been authorised by that officer or agency, or contains a
symbol indicating that the advertisement has been authorised by that officer or agency: (b) an advertisement within the meaning of section 43(1) of the Citizens Initiated Referenda Act 1993: (c) any content of a newspaper or periodical that has been selected by, or with the authority of, the editor of the newspaper or periodical solely for the purpose of informing or entertaining its readership: (d) any content of a radio or television programme that has been selected by, or with the authority of, a broadcaster (within the meaning of the Broadcasting Act 1989) solely for the purpose of informing or entertaining its audience: (e) a book that is sold for no less than its commercial value, if the book was planned to be made available to the public regardless of any election: (f) a document published directly by a body corporate or unincorporated to its members: (g) the publication by an individual, on a non-commercial basis, on the Internet of his or her personal political views (being the kind of publication commonly known as a blog). Appointments 6 Appointment of financial agent for candidate (1) A candidate must appoint a financial agent to be responsible for administering the candidate's financial transactions in relation to donations and his or her election expenses. (2) A candidate may appoint himself or herself under subsection (1).
(3) After appointing a financial agent, the candidate must send to the Chief Electoral Officer--(a) (b) the name and address of the financial agent; and the financial agent's signed consent to the appointment.
(4) If at any time a candidate appoints a new financial agent, the candidate must--(a) (b) notify the Chief Electoral Officer; and send to the Chief Electoral Officer--(i) (ii) the name and address of the new financial agent; and the new financial agent's signed consent to the appointment.
7 Appointment of financial agent for party (1) The secretary of a party must appoint a financial agent for the party to
be responsible for administering the party's financial transactions in relation to donations and its election expenses. (2) A secretary may appoint himself or herself under subsection (1).
(3) On the registration of a party under section 67 of the Electoral Act 1993, the person named, under section 63(2)(c)(viii) of that Act, as the party's financial agent in the application for registration is to be taken to have been appointed under subsection (1). (4) If at any time a secretary appoints a new financial agent, the secretary must--(a) (b) notify the Electoral Commission; and send to the Electoral Commission--(i) (ii) the name and address of the new financial agent; and the new financial agent's signed consent to the appointment.
8 Appointment of financial agent for third party (1) A third party must appoint a financial agent to be responsible for administering the third party's financial transactions for its promotion of election advertisements. (2) If the third party is an individual, the third party may appoint himself or herself under subsection (1). (3) On the listing of a third party under section 19, the person named, under section 16(2)(d), as the third party's financial agent in the application for the listing is to be taken to have been appointed under subsection (1). (4) If at any time a third party appoints a new financial agent, the third party must--(a) (b) notify the Chief Electoral Officer; and send to the Chief Electoral Officer--(i) (ii) the name and address of the new financial agent; and the new financial agent's signed consent to the appointment.
9 Persons eligible to be appointed as financial agent A person is eligible to be appointed as a financial agent under section 6, 7, or 8 if the person--(a) (b) (c) is a registered elector; and is resident in New Zealand; and has not been convicted of---
(i) a crime involving dishonesty (within the meaning of section 2(1) of the Crimes Act 1961); or (ii) a corrupt practice under this Act or the Electoral Act 1993.
10 Appointment of auditor for candidate (1) A candidate must appoint an auditor if the candidate is required by section 73 to obtain an auditor's report on his or her return of election expenses. (2) A candidate must without delay appoint another auditor if an auditor appointed by the candidate under subsection (1)--(a) (b) (c) does not for any reason commence to hold office; or ceases to hold office; or becomes ineligible to hold office.
11 Appointment of auditor for party (1) A party must appoint an auditor.
(2) On the registration of a party under section 67 of the Electoral Act 1993, the person named, under section 63(2)(c)(v) of that Act, as the party's auditor in the application for the registration is to be taken to have been appointed under subsection (1). (3) A party must without delay appoint another auditor if the auditor appointed by the party under subsection (1), or taken to have been appointed under subsection (2),--(a) (b) (c) does not for any reason commence to hold office; or ceases to hold office; or becomes ineligible to hold office.
12 Appointment of auditor for third party (1) A third party must appoint an auditor if the third party is required by section 112 to obtain an auditor's report on his, her, or its return of election expenses. (2) A third party must without delay appoint another auditor if the auditor appointed by the third party under subsection (1)--(a) (b) (c) does not for any reason commence to hold office; or ceases to hold office; or becomes ineligible to hold office.
13 Persons eligible to be appointed as auditor A person is eligible to be appointed as an auditor under section 10, 11, or 12 if that person is not--(a) a candidate; or
(b) a person whose name is specified in a party list submitted under section 127 of the Electoral Act 1993; or (c) an employee or partner of a candidate or a person referred to in paragraph (b); or (d) (e) an officer or employee of a party or third party; or a body corporate; or
(f) a person who, by virtue of section 199(1) of the Companies Act 1993, may not be appointed to act as an auditor of a company; or (g) (h) a financial agent appointed under section 6, 7, or 8; or a Returning Officer. Listing of third parties 14 Persons eligible to be third party (1) A person is eligible to be a third party if the person is--(a) a registered elector; or
(b) a body corporate that is not an overseas person within the meaning of the Overseas Investment Act 2005; or (c) (2) an unincorporated body all of whose members are registered electors.
The following are ineligible to be a third party: (a) (b) a party: a candidate:
(c) a person whose name is specified in a party list submitted under section 127 of the Electoral Act 1993: (d) the financial agent of a party or a candidate.
15 Chief Electoral Officer to establish, maintain, and publish list of third parties (1) The Chief Electoral Officer must establish and maintain a list that contains the names of the third parties listed under section 19. (2) The Chief Electoral Officer must publish the list in any manner that the Chief Electoral Officer considers appropriate.
16 Application to be listed as third party (1) An application by a promoter to be listed as a third party may be made to the Chief Electoral Officer--(a) if the promoter is an individual, by that individual; or
(b) if the promoter is a body corporate, by a person who is duly authorised by the board or other governing body of the body corporate to make the application; or (c) if the promoter is an unincorporated body, by the representative of the body who is, or appears to be, authorised by the body for the purpose. (2) An application to be listed as a third party must--(a) (b) (c) be in writing; and be signed by the promoter; and set out the name, address, and contact details of the promoter; and
(d) set out the name, address, and contact details of the individual, being an individual who is eligible for appointment under section 9, who is to be appointed as the financial agent of the third party, and be accompanied by that person's signed consent to the appointment. 17 Times when listing prohibited When an election is to be held, the Chief Electoral Officer may not list a promoter in the period that--(a) commences,---
(i) in the case of a general election that is held in a year in which Parliament is due to expire, on writ day: (ii) polling day; and writ. (b) in the case of any other election, on the 14th day before
ends with the day appointed as the latest day for the return of the
18 Grounds on which listing must be refused (1) The Chief Electoral Officer must refuse an application by a promoter to be listed as a third party if--(a) the application does not comply with section 16; or
(b) the Chief Electoral Officer is not satisfied, on the basis of the application, that the applicant is eligible to be listed as a third party; or (c) the name of the promoter is---
offensive; or likely to cause confusion or mislead electors.
(2) Unless section 17 or subsection (1) applies, the Chief Electoral Officer must list the promoter as a third party. 19 Listing of, or refusal to list, third party (1) If the Chief Electoral Officer determines that a promoter should be listed as a third party, the Chief Electoral Officer must--(a) (b) list the promoter as a third party; and give written notice to the third party of the listing.
(2) If the Chief Electoral Officer determines that an application for the listing of a promoter as a third party should be refused, the Chief Electoral Officer must, as soon as is reasonably practicable, and in any case not later than 10 working days after the date of the determination, give the promoter written notice that the Chief Electoral Officer has refused the application, and set out the reasons for the refusal. 20 Changes to be notified to Chief Electoral Officer (1) If there is a change in any of the particulars given for a third party under section 16(2)(c) or (d), the financial agent of the third party must promptly notify the Chief Electoral Officer of the change. (2) Every financial agent of a third party that is listed as at the first day of any regulated period must, within 20 working days of that date, give the Chief Electoral Officer a written notice that--(a) confirms that the particulars of the third party recorded in the Chief Electoral Officer's list are still correct; or (b) corrects the particulars that are incorrect.
21 Cancellation of listing (1) if--The Chief Electoral Officer must cancel the listing of a third party
(a) the third party's financial agent, or a person duly authorised by the third party's board or other governing body, or the representative of an unincorporated third party, or the third party himself or herself (if an individual) requests the Chief Electoral Officer to do so; or (b) the Chief Electoral Officer is satisfied that--(i) (ii) the third party is not eligible to be listed; or the third party does not have a financial agent; or
(iii) the Chief Electoral Officer has not received the written confirmation that the Chief Electoral Officer should have received under section 20(2). (2) If the Chief Electoral Officer cancels the listing of a third party under subsection (1)(b), the Chief Electoral Officer 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 financial agent or the third party written notice that the Chief Electoral Officer has cancelled the listing, and set out the reasons for the cancellation. Part 2 Election campaigns Subpart 1---General provisions relating to donations 22 Interpretation (1) In this subpart, unless the context otherwise requires, donation means--(a) (b) (c) a candidate donation; or a party donation; or a third party donation.
(2) In this subpart and subparts 2 to 4, unless the context otherwise requires,--anonymous, in relation to a donation, means a donation that is made in such a way that the financial agent who receives the donation does not know who made the donation candidate donation means a donation that is made to a candidate, or to any person on the candidate's behalf, for use in the candidate's campaign for election and--(a) any person reasonable difference reasonable includes,--(i) where goods or services are provided to a candidate, or to on the candidate's behalf, under a contract at less than their market value, being a value which exceeds $200, the amount of the between the contract price of the goods or services and the market value of those goods or services; and
(ii) where goods or services are provided by a candidate under a contract or arrangement at a value that is more than their reasonable market value, the amount of the difference between that value and the reasonable market value of those goods or services; and (iii) where credit is provided to a candidate on terms and conditions substantially more favourable than the commercial terms and conditions prevailing at the time for the same or similar credit, the value to the candidate of those more favourable terms and conditions; but (b) excludes the labour of any person that is provided to a candidate free of charge by that person
election expense, in relation to a third party, has the meaning given to it by section 100 party donation means a donation that is made to a party, or to any person or body of persons on behalf of the party who are involved in the administration of the affairs of the party, and--(a) includes,---
(i) where goods or services are provided to a party, or to any person on the party's behalf, under a contract at less than their reasonable market value, being a value which exceeds $1,000, the amount of the difference between the contract price of the goods or services and the reasonable market value of those goods or services; and (ii) where goods or services are provided by a party under a contract or arrangement at a value that is more than their reasonable market value, the amount of the difference between that value and the reasonable market value of those goods or services; and (iii) where credit is provided to a party on terms and conditions substantially more favourable than the commercial terms and conditions prevailing at the time for the same or similar credit, the value to the party of those more favourable terms and conditions; but (b) excludes---
(i) the labour of any person that is provided to a party free of charge by that person; and (ii) any candidate donation that is included in a return made by a candidate under section 72 receive, in relation to a donation, means to get a donation that has been given or sent by--(a) (b) the donor directly; or the donor indirectly, via a transmitter
specified amount--(a) in relation to a candidate donation, means $1,000 in sum or value (inclusive of goods and services tax): (b) in relation to a party donation, means $10,000 in sum or value (inclusive of goods and services tax): (c) in relation to a third party donation, means $500 in sum or value (inclusive of goods and services tax) third party donation means a donation that is made to a third party, or to any person on the third party's behalf, to fund, or to contribute directly or indirectly towards the funding of, the election expenses of the third party and--(a) includes,---
any person reasonable difference reasonable
(i) where goods or services are provided to a third party, or to on the third party's behalf, under a contract at less than their market value, being a value which exceeds $200, the amount of the between the contract price of the goods or services and the market value of those goods or services; and
(ii) where goods or services are provided by a third party under a contract or arrangement at a value that is more than their reasonable market value, the amount of the difference between that value and the reasonable market value of those goods or services; and (iii) where credit is provided to a third party on terms and conditions substantially more favourable than the commercial terms and conditions prevailing at the time for the same or similar credit, the value to the third party of those more favourable terms and conditions; but (b) excludes the labour of any person that is provided to a third party free of charge by that person transmitter means a person to whom a donor gives or sends a donation for transmittal to a candidate, party, or third party. 23 Donations to be transmitted to financial agent (1) Every person to whom a candidate donation is given or sent must, within 10 working days after receiving the donation, transmit the donation to the candidate's financial agent. (2) Every person to whom a party donation is given or sent must, within 10 working days after receiving the donation, transmit the donation to the party's financial agent. (3) Every person to whom a third party donation is given or sent must, within 10 working days after receiving the donation, transmit the donation to the third party's financial agent. 24 Disclosure of identity of donor Where any party, or donation, financial person involved in the administration of the affairs of a candidate, third party knows the name and address of the donor of an anonymous that person must disclose the name and address of the donor to the agent of the candidate, party, or third party.
25 Offence relating to contravention of section 24 A person who fails to comply with section 24 with the intention of concealing the identity of the donor commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 26 Records of donations (1) Every financial agent must keep proper records of all donations received by him or her.
(2) Every financial agent who fails, without reasonable excuse, to comply with subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 27 Duty of Chief Electoral Officer If the Chief Electoral Officer believes that any person has committed an offence against subpart 2 or 4, the Chief Electoral Officer must report the facts upon which that belief is based to the New Zealand Police. 28 Duty of Electoral Commission If the Electoral Commission believes that any person has committed an offence against subpart 3, the Electoral Commission must report the facts upon which that belief is based to the New Zealand Police. Subpart 2---Disclosure of candidate donations 29 Return of candidate donations (1) A financial agent of a candidate must, at the same time as filing a return under section 72, file with the Chief Electoral Officer a return--(a) setting out the details specified in subsection (2) in respect of every candidate donation (other than an anonymous candidate donation) received by him or her that either on its own, or when aggregated with all other donations made by or on behalf of the same donor for use in the same campaign, exceeds the specified amount; and (b) setting out the details specified in subsection (3) in respect of every anonymous candidate donation received by him or her that exceeds the specified amount. (2) The details referred to in subsection (1)(a) are--(a) (b) (c) (d) (3) the name of the donor; and the address of the donor; and the amount of the donation; and the date the donation was received.
The details referred to in subsection (1)(b) are--(a) (b) the amount of the donation; and the date the donation was received.
(4) Every return filed under subsection (1) must be in the form required by the Chief Electoral Officer and include a statutory declaration made by the financial agent and the candidate, each declaring that to the best of his or her knowledge and belief---
(a) the return correctly sets out all the details required by subsections (2) and (3); and (b) a fair assessment has been made of the reasonable market value of donations, if any, of the kind described in paragraph (a)(i) or (ii) of the definition of candidate donation in section 22(2). 30 Nil return Where a financial agent considers there is no relevant information to disclose under section 29, the financial agent must file a nil return under that section. 31 Obligation to retain records necessary to verify return of candidate donations (1) A financial agent must take all reasonable steps to ensure that all records, documents, and accounts that are necessary to enable a return under section 29 to be verified are retained until the expiry of the period within which a prosecution may be commenced under this Act in relation to the return or in relation to any matter to which the return relates. (2) Every financial agent who fails, without reasonable excuse, to comply with subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 32 Offences relating to return of candidate donations (1) Every financial agent who fails, without reasonable excuse, to comply with section 29 commits an offence and is liable on summary conviction to a fine not exceeding $40,000. (2) Where a candidate who is his or her own financial agent and who has been elected fails, without reasonable excuse, to comply with section 29, the candidate is liable on summary conviction to--(a) the penalty in subsection (1); and
(b) a further fine not exceeding $400 for every day he or she sits or votes in the House of Representatives until the return is filed. (3) Every financial agent who files a return under section 29 that is false in any material particular is guilty of--(a) a corrupt practice if the financial agent filed the return knowing it to be false in any material particular: (b) proves--facts; and an illegal practice in any other case unless the financial agent (i) that he or she had no intention to misstate or conceal the
33 Return of candidate donations to be available for public inspection (1) As soon as practicable after receiving a return of a candidate's donations filed under section 29, the Chief Electoral Officer must send a copy of the return to the Electoral Commission. (2) The Chief Electoral Officer---
(a) must make a copy of every return of a candidate's donations available for public inspection by any person on payment of any charges that may be made under the Official Information Act 1982; and (b) may publish every return of a candidate's donations in any manner that the Chief Electoral Officer considers appropriate. 34 Return of candidate donations to be kept for certain period (1) The Chief Electoral Officer and the Electoral Commission must keep every return of a candidate's donations for the period--(a) beginning with the date of receipt of the return; and
(b) ending with the close of polling day for the second general election that takes place after the date of receipt of the return. (2) On the expiry of the period referred to in subsection (1), the Chief Electoral Officer and the Electoral Commission must destroy, or cause to be destroyed, the return. Subpart 3---Disclosure of party donations 35 Annual return of party donations (1) A financial agent of a party must file with the Electoral Commission, by 30 April in each year, a return of the party donations setting out, for the year ending with the immediately preceding 31 December,--(a) the details specified in subsection (2) for every party donation (other than an anonymous party donation) received by him or her that either on its own, or when aggregated with all other donations made by or on behalf of the same donor during the year, exceeds the specified amount; and (b) the details specified in subsection (3) for every anonymous party donation received by him or her that exceeds the specified amount. (2) The details referred to in subsection (1)(a) are--(a) (b) (c) (d) the name of the donor; and the address of the donor; and the amount of the donation; and the date the donation was received.
Every return filed under subsection (1) must be---
(a) in the form required by the Electoral Commission and include a statutory declaration made by the financial agent and the party secretary, each declaring that to the best of his or her knowledge and belief--(i) the return correctly sets out all the details required by subsections (2) and (3); and (ii) a fair assessment has been made of the reasonable market value of donations, if any, of the kind described in paragraph (a)(i) or (ii) of the definition of party donation in section 22(2); and (b) accompanied by an auditor's report obtained under section 36.
(5) Despite anything in subsection (1), where a financial agent is required to file under that subsection a return of party donations that relates to the year in which the party became registered under Part 4 of the Electoral Act 1993, that return is to relate to the period beginning with the date of registration of the party and ending with 31 December of that year. 36 Auditor's report on annual return of party donations (1) Every financial agent must, before the Electoral Commission receives the return required by section 35, obtain from the auditor appointed under section 11 a report on the return. (2) The auditor must state in the report whether or not, in the auditor's opinion, the return fairly reflects the party donations received by the financial agent. (3) The auditor must make any examinations that the auditor considers necessary. (4) The auditor must specify in the report any case in which---
(a) the return does not, in the auditor's opinion, fairly reflect the party donations received by the financial agent: (b) the auditor has not received from the financial agent all the information that the auditor requires to carry out his or her duties: (c) proper records of party donations have not, in the auditor's opinion, been kept by the financial agent. (5) The auditor---
(a) must have access at all reasonable times to all records, documents, and accounts that relate to the party donations and that are held by the financial agent; and
(b) may require the financial agent to provide any information and explanations that, in the auditor's opinion, may be necessary to enable the auditor to prepare the report. 37 Nil return Where a financial agent considers there is no relevant information to disclose under section 35, the financial agent must file a nil return under that section. 38 Return of party donation received from same donor exceeding $20,000 (1) Every financial agent must file with the Electoral Commission a return in respect of every party donation that exceeds $20,000. (2) Every financial agent must file with the Electoral Commission a return in respect of every party donation that--(a) the financial agent knows is from a donor who in the last 12 months has made 1 or more previous donations; and (b) when aggregated with all previous donations received from the donor in the last 12 months exceeds a multiple of $20,000. (3) A return filed under subsection (1) must be in the form required by the Electoral Commission and set out--(a) (b) (c) (d) the name of the donor (if known); and the address of the donor (if known); and the amount of the donation; and the date the donation was received.
(4) A return filed under subsection (2) must be in the form required by the Electoral Commission and set out--(a) (b) (c) (d) (e) (f) the name of the donor; and the address of the donor; and the amount of the donation; and the amounts of all previous donations; and the date the donation was received; and the dates all previous donations were received.
(5) A return must be filed under subsection (1) or (2) within 10 working days of the donation being received by the financial agent. 39 Obligation to retain records necessary to verify returns of party donations
(1) A financial agent must take all reasonable steps to ensure that all records, documents, and accounts that are necessary to enable returns under sections 35 and 38 to be verified are retained until the expiry of the period within which a prosecution may be commenced under this Act in relation to the returns or in relation to any matter to which the returns relate. (2) Every financial agent who fails, without reasonable excuse, to comply with subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 40 Offences relating to returns of party donations (1) Every financial agent who fails, without reasonable excuse, to comply with section 35 or 38 commits an offence and is liable on summary conviction to a fine not exceeding $40,000. (2) Every financial agent who files a return under section 35 or 38 that is false in any material particular is guilty of--(a) a corrupt practice if the financial agent filed the return knowing it to be false in any material particular: (b) proves--facts; and an illegal practice in any other case unless the financial agent (i) that he or she had no intention to misstate or conceal the
(ii) that he or she took all reasonable steps in the circumstances to ensure that the information in the return was accurate. 41 Return of party donations to be available for public inspection (1) The Electoral Commission must, 3 working days after receipt, make copies of the following returns and reports available for public inspection by any person on payment of any charges that may be made under the Official Information Act 1982: (a) an annual return of party donations and accompanying auditor's report filed under section 35; and (b) a return of party donations filed under section 38.
(2) The Electoral Commission may publish the returns and reports specified in subsection (1) in any manner that the Electoral Commission considers appropriate. Subpart 4---Disclosure of third party donations 42 Anonymous third party donation (1) (2) An anonymous third party donation may not exceed the specified amount. Where an anonymous third party donation exceeds the specified amount,
the whole donation, or the amount of its value, must be paid to the Chief Electoral Officer. (3) An anonymous third party donation, or the amount of its value, must be paid to the Chief Electoral Officer under subsection (2) by a financial agent within 30 days of the donation being received by the financial agent. (4) All amounts received by the Chief Electoral Officer under subsection (3) must be paid into a Crown Bank Account. 43 Offence in relation to anonymous third party donation (1) A person may not enter into an agreement or enter into an arrangement or understanding that would have the effect of avoiding the prohibition in section 42(1). (2) Every person is guilty of--(a) case. (b) a corrupt practice who wilfully contravenes subsection (1); and an illegal practice who contravenes subsection (1) in any other
(3) A financial agent who contravenes section 42(3) is guilty of an illegal practice. 44 Contributors to be identified, if known (1) This section applies where a third party donation comprises in whole or in part funds contributed by 1 or more other persons (contributors) that the contributors require or expect (whether under a trust, agreement, or understanding) to be applied as a donation. (2) Where this section applies the donor must, at the time of making the donation, disclose--(a) the fact that the donation comprises in whole or in part funds provided by contributors; and (b) the following information, if known or ascertainable, in respect of each contributor whose contribution exceeds the specified amount: (i) (ii) the name and address of the contributor; and the amount of funds provided by the contributor.
(3) Where a donor does not disclose, or is unable to disclose, all of the information required by subsection (2)(b), then the donation must be treated as an anonymous third party donation. (4) A donor who fails to comply with subsection (2) with the intention of concealing the identity of any or all of the contributors commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 45 Identity of donor to be disclosed by transmitter, if known
(1) When a transmitter transmits a third party donation to the financial agent on behalf of the donor, the transmitter must disclose to the financial agent--and (a) (b) the fact that the donation is transmitted on behalf of the donor; the name and address of the donor; and
(c) whether section 44 applies to the donation and, if so, all information disclosed by the donor under subsection (2) of that section. (2) Where a transmitter does not disclose, or is unable to disclose, the information required by subsection (1)(b) or (c), then the donation must be treated as an anonymous third party donation. 46 Offence relating to contravention of section 45 A transmitter who fails to comply with section 45 with the intention of concealing the identity of the donor or any or all of the contributors commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 47 Return of third party donations (1) A financial agent of a third party must, at the same time as filing a return under section 111, file with the Chief Electoral Officer a return setting out the details specified in subsection (2) in respect of every third party donation received by him or her that either on its own, or when aggregated with all other donations made by or on behalf of the same donor during the regulated period, exceeds the specified amount. (2) The details referred to in subsection (1) are--(a) (b) (c) (d) the name of the donor; and the address of the donor; and the amount of the donation; and the date the donation was received; and
(e) in the case of a donation paid to the Chief Electoral Officer under section 42(2), the date the donation was paid; and (f) whether section 44 applies to the donation and, if so, all information disclosed by the donor under subsection (2) of that section. (3) Every return filed under subsection (1) must be in the form required by the Chief Electoral Officer and include a statutory declaration made by the financial agent and the person who made the application for the third party listing each declaring that to the best of his or her or its knowledge and belief--(a) (2); and the return correctly sets out all the details required by subsection
(b) a fair assessment has been made of the reasonable market value of donations, if any, of the kind described in paragraph (a)(i) or (ii) of the definition of third party donation in section 22(2). 48 Nil return Where a financial agent considers there is no relevant information to disclose under section 47, the financial agent must file a nil return under that section. 49 Obligation to retain records necessary to verify return of third party donations (1) A financial agent must take all reasonable steps to ensure that all records, documents, and accounts that are necessary to enable a return under section 47 to be verified are retained until the expiry of the period within which a prosecution may be commenced under this Act in relation to the return or in relation to any matter to which the return relates. (2) Every financial agent who fails, without reasonable excuse, to comply with subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 50 Offences relating to return of third party donations (1) Every financial agent who fails, without reasonable excuse, to comply with section 47 commits an offence and is liable on summary conviction to a fine not exceeding $40,000. (2) Every financial agent who files a return under section 47 that is false in any material particular is guilty of--(a) a corrupt practice if the financial agent filed the return knowing it to be false in any material particular: (b) proves--facts; and an illegal practice in any other case unless the financial agent (i) that he or she had no intention to misstate or conceal the
(ii) that he or she took all reasonable steps in the circumstances to ensure that the information in the return was accurate. 51 Return of third party donations to be available for public inspection (1) As soon as practicable after receiving a return of a third party's donations filed under section 47, the Chief Electoral Officer must send a copy of the return to the Electoral Commission. (2) The Chief Electoral Officer must make a copy of every return of a third party's donations available for public inspection by any person on payment of any charges that may be made under the Official Information Act 1982.
(3) The Chief Electoral Officer may publish every return of a third party's donations in any manner that the Chief Electoral Officer considers appropriate. 52 Return of third party donations to be kept for certain period (1) The Chief Electoral Officer and the Electoral Commission must keep every return of a third party's donations for the period--(a) beginning with the date of receipt of the return; and
(b) ending with the close of polling day for the second general election that takes place after the date of receipt of the return. (2) On the expiry of the period referred to in subsection (1), the Chief Electoral Officer and the Electoral Commission must destroy, or cause to be destroyed, the return. Subpart 5---General rules governing election advertisements 53 Election advertisements not to be published in regulated period unless certain conditions met (1) No person may, during a regulated period, publish or cause or permit to be published any election advertisement unless--(a) the advertisement contains a statement that sets out the name and address of the promoter of the advertisement; and (b) the promoter is entitled to promote the advertisement.
(2) For the purposes of subsection (1)(b), a promoter is entitled to promote an election advertisement if the promoter is--(a) the financial agent of a party, but only if the advertisement is a party advertisement promoted by, or on behalf of, that party; or (b) the financial agent of a candidate, but only if the advertisement is a candidate advertisement promoted by, or on behalf of, 1 or more candidates; or (c) (d) a third party; or a promoter to whom subsection (3) applies.
(3) This subsection applies to a promoter if, before the publication of the election advertisement, the promoter gives the publisher a declaration completed by the promoter, in the manner provided by section 9 of the Oaths and Declarations Act 1957, to the effect that the expenses incurred in respect of all election advertisements promoted by the promoter that have been and are to be published during the regulated period--(a) do not exceed $500, in the case of election advertisements that relate to a candidate in the candidate's capacity as a candidate for an electoral district (whether or not the name of the candidate is stated); and
do not in any case exceed $5,000.
(4) A declaration given under subsection (3) must specify the full name, address, and contact details of the promoter. (5) Every person is guilty of an illegal practice who wilfully contravenes any provision of subsection (1). 54 Offence to avoid limits set out in section 53 (1) A person may not enter into an agreement or enter into an arrangement or understanding that would have the effect of avoiding the limit of $500 set by section 53(3)(a) or the limit of $5,000 set by section 53(3)(b). (2) A body corporate or unincorporated may not split itself into 2 or more bodies for the purpose of avoiding the limit of $500 set by section 53(3)(a) or the limit of $5,000 set by section 53(3)(b). (3) Every person is guilty of an illegal practice who wilfully contravenes subsection (1) or (2). 55 Requirements for election advertisements that promote parties or candidates (1) No person may publish, or cause or permit to be published, an election advertisement that encourages or persuades, or appears to encourage or persuade, voters to vote for a party unless the advertisement--(a) is authorised in writing by the financial agent of the party; and
(b) contains a statement that sets out the name and address of the promoter of the advertisement. (2) No person may publish, or cause or permit to be published, an election advertisement that encourages or persuades, or appears to encourage or persuade, voters to vote for a candidate unless the advertisement--and (a) is authorised in writing by the financial agent of that candidate;
(b) contains a statement that sets out the name and address of the promoter of the advertisement. (3) No person may publish, or cause or permit to be published, an election advertisement that encourages or persuades, or appears to encourage or persuade, voters to vote for 2 or more candidates unless the advertisement--(a) is authorised in writing either by the financial agent of each of those candidates or by the financial agent of the party to which those candidates belong; and (b) contains a statement that sets out the name and address of the promoter of the advertisement. (4) Every person is guilty of an illegal practice who wilfully contravenes any provision of this section.
56 Payments for exhibition of election advertisements (1) No payment or contract for payment may be made to any person on account of the exhibition of, or the use of any house, land, building, or premises for the exhibition of, any election advertisement, unless it is the ordinary business of the person to exhibit election advertisements for payment and the payment or contract is made in the ordinary course of that business. (2) If any payment or contract for payment is contravention of this section before, during, or making the payment or contract and, if he or she of this Act, any person receiving the payment or is guilty of an illegal practice. knowingly made in after an election, the person knew it to be in contravention being a party to the contract
57 Display of advertisement of a specified kind (1) During the period beginning 2 months before polling day and ending with the close of the day before polling day, the display of an advertisement of a specified kind is not subject to--(a) any prohibition or restriction imposed in any other enactment or bylaw, or imposed by any local authority, that applies in relation to the period when an advertisement of a specified kind may be displayed; or (b) any prohibition or restriction imposed in any bylaw, or imposed by any local authority, that applies in relation to the content or language used in an advertisement of a specified kind. (2) In this section advertisement of a specified kind means an advertisement displayed in a public place or on private property that does not exceed 3 square metres in size and that--(a) encourages or persuades or appears to encourage or persuade voters to vote for a party; or (b) is used or appears to be used to promote or procure the election of a candidate; but (c) does not include---
(i) an advertisement published in any newspaper, periodical, or handbill, or in any poster less than 150 square centimetres in size; or (ii) an advertisement broadcast over any television station or by any electronic means of communication. (3) Nothing in this section limits or prevents the display before polling day of any advertisement relating to an election that complies with any prohibition or restriction imposed in any enactment or bylaw, or imposed by any local authority. Subpart 6---Candidates' election expenses 58 Interpretation
In this subpart, unless the context otherwise requires,--candidate activity, in relation to a candidate at an election in any district, means an activity--(a) that is undertaken by, or with the authority of,--(i) (ii) the candidate; or the candidate's financial agent; and
(b) that comprises the publication of a candidate advertisement in any form (for example, in the form of a radio or television broadcast, notice, poster, pamphlet, billboard, or electronic message); and (c) that relates to the campaign for the return of the candidate in the candidate's capacity as a candidate for the district and not to the candidate--(i) in his or her capacity as a member of Parliament or as the holder of any other office; or (ii) in any other capacity; and
(d) that is undertaken, or deemed by section 63 to have been undertaken, during the regulated period candidate advertisement election expense publication has the meaning given to it by section 4
has the meaning given to it by section 59
has the meaning given to it by section 4
regulated period includes, in the case of a by-election, the period that commences 3 months before the polling day appointed for the by-election and ends with the close of that polling day. 59 Meaning of election expense (1) In this subpart, election expense means an expense that--(a) (b) is incurred in undertaking a candidate activity; and is incurred in respect of any of the following costs:
(i) the cost of the preparation, design, composition, printing, distribution, postage, and publication of a candidate advertisement: (ii) the cost of any material used for or applied towards a candidate advertisement: (iii) the cost of displaying a candidate advertisement on any advertising space on any land or building that is used solely or principally for commercial or industrial purposes. (2) of--Despite subsection (1)(b), election expense does not include the cost
(a) (b) (c) person:
travel: the conduct of any survey or public opinion poll: the labour of any person that is provided free of charge by that
(d) the replacement of any material used in respect of a candidate advertisement which has been destroyed or rendered unusable by 1 or more persons (other than the candidate or any person acting on his or her behalf) or by the occurrence of an event beyond the control of the candidate and any person acting on his or her behalf. (3) Where any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii) is provided free of charge, the commercial value of that material or advertising space must be included as an election expense. (4) Where any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii) is provided at less than its commercial value, the amount of the difference between the contract price of the material or advertising space and the commercial value of that material or advertising space must be included as an election expense. (5) However, subsections (3) and (4) do not apply where the commercial value of the material or advertising space is less than $200. (6) For the purposes of subsections (3) to (5), commercial value, in relation to any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii), means the lowest amount charged at the time the material or advertising space was provided, for the same kind and quantity, by--(a) the person who provided it, if that person is in the business of providing that material or advertising space; or (b) another person who provides that material or advertising space on a commercial basis in the area where it was provided, if the person who provided the material or advertising space is not in that business. 60 Election expense to be incurred by candidate's financial agent No person other than the candidate's financial agent may incur an election expense in relation to a candidate activity. 61 Offence to incur unauthorised election expense (1) Every person is guilty of--(a) (b) a corrupt practice who wilfully contravenes section 60; and an illegal practice who contravenes section 60 in any other case.
(2) Every person who enters into an agreement or enters into an arrangement or understanding with any other person for the purpose of circumventing section
60 is guilty of an illegal practice. 62 Maximum amount of candidate's total election expenses (1) The total election expenses of a candidate in respect of any regulated period must not exceed--(a) the amount of $20,000 in the case of a candidate at a general election; and (b) (2) the amount of $40,000 in the case of a candidate at a by-election.
The amounts in subsection (1) are inclusive of goods and services tax.
(3) For the purposes of subsection (1), it is immaterial whether an election expense is paid or incurred before, during, or after the regulated period. 63 Apportionment of election expense for candidate activity undertaken both before and within regulated period (1) This section applies where a candidate activity as described in paragraphs (a) to (c) of the definition of that term in section 58 is--(a) undertaken both before and within the regulated period; or
(b) undertaken before the regulated period and continues to be undertaken within the regulated period. (2) Where this section applies,---
(a) the candidate activity is deemed to have been undertaken in the regulated period; but (b) the election expense of the candidate activity must be apportioned so that a fair proportion of the expense is attributed to being incurred within the regulated period. (3) Only the fair proportion of the election expense determined in accordance with subsection (2) is an election expense. 64 Apportionment of election expense of election activity between candidates (1) This section provides for the apportionment between candidates of the election expense of an election activity. (2) In this section, election activity means an activity that comprises 2 or more candidate activities. (3) The election expense of an election activity must be apportioned among the candidates in proportion to the coverage the activity provides to each candidate's candidate activity. (4) However, where an election activity provides a candidate's candidate activity less than 10% coverage, the candidate's apportionment of the election expenses of the election activity is not to be included as an election expense
of the candidate. (5) For the purposes of this section,---
(a) election expense of an election activity means the total of the election expense of all of the candidate activities to which this section applies; and (b) the coverage provided by an election activity must be calculated in such a manner as is appropriate in relation to the form of the activity. 65 Apportionment of election expense of election activity between candidate and party (1) This section provides for the apportionment between a candidate and a party of the election expense of an election activity. (2) In this section, election activity means an activity that comprises a candidate activity and a party activity (as defined in section 80). (3) The election expense of an election activity must be apportioned between the candidate and the party in proportion to the coverage the activity provides to the candidate's candidate activity and the party's party activity. (4) For the purposes of this section,---
(a) election expense of an election activity means the cost of the candidate activity and the cost of the party activity (as defined in section 80); and (b) the coverage provided by an election activity must be calculated in such a manner as is appropriate in relation to the form of the election activity. 66 Cost of party activity deemed to be election expense of candidate in particular case (1) This section applies where a party advertisement features a candidate--(a) in his or her capacity as a list candidate; or
(b) as endorsing or supporting the party, or the list submitted by the party under section 127 of the Electoral Act 1993. (2) Where the party advertisement gives more than 10% coverage to the candidate and is published in the electoral district in respect of which the candidate has been nominated, the cost of the party advertisement is deemed to be an election expense of the candidate. (3) However, this section does not apply where the party advertisement is published--(a) in the electoral district in respect of which the candidate has been nominated; and (b) 10 other electoral districts.
For the purposes of this section--means a person who is both a constituency candidate and a list
list candidate means a person whose name is included in the list submitted by a party under section 127 of the Electoral Act 1993. (5) For the purposes of this section the coverage provided by a party advertisement must be calculated in such manner as is appropriate in relation to the form of the advertisement. 67 Offences in relation to candidate's total election expenses (1) If a candidate's total election expenses exceed either of the maximum amounts prescribed by section 62, the candidate's financial agent is guilty of--(a) a corrupt practice if the financial agent knew the candidate's total election expenses exceeded the maximum amount; or (b) an illegal practice in any other case, unless the financial agent proves that he or she took all reasonable steps to ensure that the election expenses did not exceed the maximum amount. (2) Every person who enters into an agreement or enters into an arrangement or understanding with any other person for the purpose of circumventing either of the maximum amounts prescribed in section 62(1) is guilty of an illegal practice. 68 Periods for claiming and paying candidate's election expenses (1) A claim against a candidate's financial agent in respect of any election expense is recoverable only if it is sent to the financial agent within 20 working days after the day on which the declaration required by section 179(2) of the Electoral Act 1993 is made. (2) A claim that is sent to a candidate's financial agent in accordance with subsection (1) must be paid by the financial agent, and no other person, within 40 working days after the day on which that declaration is made, and not otherwise. (3) Every person who makes any payment in breach of subsection (2) is guilty of an illegal practice. (4) This section is subject to sections 69 and 70.
69 Procedure where claim disputed (1) If a financial agent, in the case of a claim for an election expense sent to the candidate's financial agent within the period specified in section 68(1), disputes the claim, or fails to pay the claim within the period of 40 working days specified in section 68(2), then---
(b) the claimant may, if he or she thinks fit, within 20 working days after the expiration of that period of 40 working days, bring an action for the disputed claim in any court of competent jurisdiction. (2) Any sum paid by the financial agent in accordance with a judgment or order of the court in any such action is to be treated as paid within the time specified by section 68(2). 70 Leave to pay claim after time limitation (1) On the application of a claimant or candidate's financial agent, a District Court may make an order granting leave to a financial agent to pay--(a) a claim for election expenses sent after the period specified in section 68(1); or (b) a claim not paid in the period specified in section 68(2); or
(c) a disputed claim in respect of which an action was not brought within the period specified in section 69(1)(b). (2) Any sum specified in the order granting that leave may be paid by the candidate's financial agent, and when so paid is to be treated as having been paid within the period specified in section 68(2). 71 Election expense to be invoiced No payment in respect of any election expense exceeding $50 may be made without an invoice. 72 Return of candidate's election expenses (1) Within 70 working days after polling day, a candidate's financial agent must file with the Chief Electoral Officer a return setting out the candidate's election expenses incurred during the regulated period. (2) Every return filed under subsection (1) must be---
(a) in the form required by the Chief Electoral Officer and include a statutory declaration made by the financial agent and the candidate each declaring that to the best of his or her knowledge and belief--(i) be provided; and the return correctly sets out all the information required to
(ii) a fair assessment has been made of the commercial value of any materials and advertising spaces used in candidate advertisements; and (b) required. accompanied by an auditor's report obtained under section 73, if
73 Auditor's report on return of candidate's election expenses exceeding
75% of maximum amount (1) Every financial agent must, before the Chief Electoral Officer receives the return required by section 72, obtain from the auditor appointed under section 10 a report on the return if the candidate's total election expenses exceed 75% of either of the maximum amounts prescribed by section 62. (2) The auditor must state in the report---
(a) the position shown by the return in respect of the requirement that the candidate's total election expenses not exceed the maximum amount prescribed by section 62; and (b) either---
(i) whether, in the auditor's opinion, the position stated under paragraph (a) is correct; or (ii) that the auditor has been unable to form an opinion as to whether the position stated in paragraph (a) is correct. (3) The auditor must make any examinations that the auditor considers necessary. (4) The auditor must specify in the report any case in which---
(a) the auditor has not received from the financial agent all the information that the auditor requires to carry out his or her duties: (b) proper records of the candidate's election expenses have not, in the auditor's opinion, been kept by the financial agent. (5) The auditor---
(a) must have access at all reasonable times to all records, documents, and accounts which relate to the candidate's election expenses and which are held by the financial agent; and (b) may require the financial agent to provide any information and explanations that, in the auditor's opinion, may be necessary to enable the auditor to prepare the report. 74 Nil return Where a financial agent considers there is no relevant information under section 72, the financial agent must file a nil return under that section. 75 Offences relating to return of candidate's election expenses (1) Every financial agent who fails, without reasonable excuse, to comply with section 72 is liable on summary conviction to a fine not exceeding $40,000. (2) Where a candidate who is his or her own financial agent and who has been elected fails, without reasonable excuse, to comply with section 72, the candidate is liable on summary conviction to---
the penalty in subsection (1); and
(b) a further fine not exceeding $400 for every day he or she sits or votes in the House of Representatives until the return is filed. (3) Every financial agent who files a return under section 72 that is false in any material particular is guilty of--(a) a corrupt practice if the financial agent filed the return knowing it to be false in any material particular: (b) proves--facts; and an illegal practice in any other case unless the financial agent (i) that he or she had no intention to misstate or conceal the
(ii) that he or she took all reasonable steps in the circumstances to ensure that the information in the return was accurate. 76 Obligation to retain records necessary to verify return of candidate's election expenses (1) A financial agent must take all reasonable steps to ensure that all records, documents, and accounts that are necessary to enable a return under section 72 to be verified are retained until the expiry of the period within which a prosecution may be commenced under this Act in relation to the return or in relation to any matter to which the return relates. (2) Every financial agent who fails, without reasonable excuse, to comply with subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 77 Duty of Chief Electoral Officer If the Chief Electoral Officer believes that any person has committed an offence specified in this subpart, the Chief Electoral Officer must report the facts upon which that belief is based to the New Zealand Police. 78 Return of candidate's election expenses to be available for public inspection (1) As soon as practicable after receiving from a candidate's financial agent a return of the candidate's election expenses filed under section 72 and any accompanying auditor's report obtained under section 73, the Chief Electoral Officer must send a copy of the return and report to the Electoral Commission. (2) The Chief Electoral Officer must make a copy of every return of a candidate's election expenses and any accompanying auditor's report available for public inspection by any person on payment of any charges that may be made under the Official Information Act 1982. (3) The Chief Electoral Officer may publish every return of a candidate's
election expenses and any accompanying auditor's report in any manner that the Chief Electoral Officer considers appropriate. 79 Return of candidate's election expenses to be kept for certain period (1) The Chief Electoral Officer and the Electoral Commission must keep every return of a candidate's election expenses and any accompanying auditor's report for the period--(a) beginning with the date of receipt of the return and report; and
(b) ending with the close of polling day for the second general election that takes place after the date of receipt of the return and report. (2) On the expiry of the period referred to in subsection (1), the Chief Electoral Officer and the Electoral Commission must destroy, or cause to be destroyed, the return and any report. Subpart 7---Parties' election expenses 80 Interpretation In this subpart, unless the context otherwise requires,--election expense has the meaning given to it by section 81
party activity, in relation to a party, means an activity--(a) that is undertaken by, or with the authority of,--(i) (ii) the party; or the party's financial agent; and
(b) that comprises the publication of a party advertisement in any form (for example, in the form of a radio or television broadcast, notice, poster, pamphlet, billboard, or electronic message); and (c) that is undertaken, or deemed by section 85 to have been undertaken, during the regulated period; and (d) does not include anything done in relation to a member of Parliament in his or her capacity as a member of Parliament party advertisement publication has the meaning given to it by section 4
has the meaning given to it by section 4.
81 Meaning of election expense (1) In this subpart, election expense means an expense that--(a) (b) is incurred in undertaking a party activity; and is incurred in respect of any of the following costs:
(i) the cost of the preparation, design, composition, printing, distribution, postage, and publication of a party advertisement: (ii) advertisement: the cost of any material used or applied for a party
(iii) the cost of displaying a party advertisement on any advertising space on any land or building that is used solely or principally for commercial or industrial purposes. (2) of--Despite subsection (1)(b), election expense does not include the cost (a) (b) (c) person: travel: the conduct of any survey or public opinion poll: the labour of any person that is provided free of charge by that
(d) the replacement of any material used in respect of a party advertisement which has been destroyed or rendered unusable by 1 or more persons (other than a person acting on behalf of the party) or by the occurrence of an event beyond the control of any person acting on behalf of the party: (e) the election expense of any of the party's candidates:
(f) allocations of time and money made to the party by the body responsible for such allocations under the Broadcasting Act 1989: (g) any publications that relate to a member of Parliament in his or her capacity as a member of Parliament. (3) Where any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii) is provided free of charge, the commercial value of that material or advertising space must be included as an election expense. (4) Where any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii) is provided at less than its commercial value, the amount of the difference between the contract price of the material or advertising space and the commercial value of that material or advertising space must be included as an election expense. (5) However, subsections (3) and (4) do not apply where the commercial value of the material or advertising space is less than $1,000. (6) For the purposes of subsections (3) to (5), commercial value, in relation to any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii), means the lowest amount charged at the time the material or advertising space was provided, for the same kind and quantity, by--(a) the person who provided it, if that person is in the business of providing that material or advertising space; or
(b) another person who provides that material or advertising space on a commercial basis in the area where it was provided, if the person who provided the material or advertising space is not in that business. 82 Election expense to be incurred by party's financial agent No person other than the party's financial agent may incur an election expense in relation to a party activity. 83 Offence to incur unauthorised election expense (1) Every person is guilty of--(a) (b) a corrupt practice who wilfully contravenes section 82; and an illegal practice who contravenes section 82 in any other case.
(2) Every person who enters into an agreement or enters into an arrangement or understanding with any other person for the purpose of circumventing section 82 is guilty of an illegal practice. 84 Maximum amount of party's total election expenses (1) Where a party is 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--(a) the amount of $1,000,000; and
(b) the amount of $20,000 for each electoral district contested by a candidate for the party. (2) Where 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 the amount of $20,000 for each electoral district contested by a candidate for the party. (3) The amounts in subsection (1) are inclusive of goods and services tax.
(4) For the purposes of subsections (1) and (2), it is immaterial whether an election expense is paid or incurred after the regulated period. 85 Apportionment of election expense for party activity undertaken both before and within regulated period (1) This section applies where a party activity as described in paragraphs (a) to (b) of the definition of that term in section 80 is--(a) undertaken both before and within the regulated period; or
(a) the party activity is deemed to have been undertaken in the regulated period; but (b) the election expense of the party activity must be apportioned so that a fair proportion of the expense is attributed to being incurred within the regulated period. (3) Only the fair proportion of the election expense determined in accordance with subsection (2) is an election expense. 86 Offences in relation to party's total election expenses (1) If a party's total election expenses exceed either of the maximum amounts prescribed by section 84, the party's financial agent is guilty of--(a) a corrupt practice if the financial agent knew the party's total election expenses exceeded the maximum amount; or (b) an illegal practice in any other case, unless the financial agent proves that he or she took all reasonable steps to ensure that the election expenses did not exceed the maximum amount. (2) Every person who enters into an agreement or enters into an arrangement or understanding with any other person for the purpose of circumventing either of the maximum amounts prescribed in section 84(1) is guilty of an illegal practice. 87 Periods for claiming and paying party's election expenses (1) No claim against a party's financial agent in respect of a party's election expense is recoverable unless it is sent to the financial agent within 20 working days after the day on which the declaration required by section 193(5) of the Electoral Act 1993 is made. (2) A claim that is sent to a party's financial agent in accordance with subsection (1) must be paid by the financial agent, and no other person, within 40 working days after the day on which that declaration is made, and not otherwise. (3) Every person who makes any payment in breach of subsection (2) is guilty of an illegal practice. (4) This section is subject to sections 88 and 89.
88 Procedure where claim disputed (1) If a financial agent, in the case of a claim for an election expense sent to the party's financial agent within the period specified in section 87(1), disputes the claim, or fails to pay the claim within the period of 40 working days specified in section 87(2), then--(a) (b) the claim is to be treated as a disputed claim; and the claimant may, if he or she thinks fit, within 20 working days
after the expiration of that period of 40 working days, bring an action for the disputed claim in any court of competent jurisdiction. (2) Any sum paid by the financial agent in accordance with a judgment or order of the court in any such action is to be treated as paid within the time specified by section 87(2). 89 Leave to pay claim after time limitation (1) On the application of a claimant or party's financial agent, a District Court may make an order granting leave to a financial agent to pay--(a) a claim for election expenses sent after the period specified in section 87(1); or (b) a claim not paid in the period specified in section 87(2); or
(c) a disputed claim in respect of which an action was not brought within the period specified in section 88(1)(b). (2) Any sum specified in the order granting that leave may be paid by the party's financial agent, and when so paid is to be treated as having been paid within the period specified in section 87(2). 90 Election expense to be invoiced No payment in respect of any election expense exceeding $50 may be made without an invoice. 91 Return of party's election expenses (1) Within 50 working days after the day on which the declaration required by section 193(5) of the Electoral Act 1993 is made, a party's financial agent must file with the Electoral Commission a return of the party's election expenses. (2) Every return filed under subsection (1) must be---
(a) in the form required by the Electoral Commission and include a statutory declaration made by the financial agent and the party secretary each declaring that to the best of his or her knowledge and belief--(i) be provided; and the return correctly sets out all the information required to
(ii) a fair assessment has been made of the commercial value of any materials and advertising spaces used in party advertisements; and (b) accompanied by an auditor's report obtained under section 92.
92 Auditor's report on return of party's election expenses (1) Every financial agent must, before the Electoral Commission receives the return required by section 91, obtain from the auditor appointed under section
11 a report on the return. (2) The auditor must state in the report---
(a) the position shown by the return in respect of the requirement that the party's total election expenses not exceed the maximum amount prescribed by section 84; and (b) either---
(a) the auditor has not received from the financial agent all the information that the auditor requires to carry out his or her duties: (b) proper records of the party's election expenses have not, in the auditor's opinion, been kept by the financial agent. (5) The auditor---
(a) must have access at all reasonable times to all records, documents, and accounts which relate to the party's election expenses and which are held by the financial agent; and (b) may require the financial agent to provide any information and explanations that, in the auditor's opinion, may be necessary to enable the auditor to prepare the report. 93 Nil return Where a financial agent considers there is no relevant information to disclose under section 91, the financial agent must file a nil return under that section. 94 Offences relating to return of party's election expenses (1) Every financial agent who fails, without reasonable excuse, to comply with section 91 is liable on summary conviction to a fine not exceeding $40,000. (2) Every financial agent who files a return under section 91 that is false in any material particular is guilty of--(a) a corrupt practice if the financial agent filed the return knowing it to be false in any material particular: (b) an illegal practice in any other case unless the financial agent proves that---
he or she had no intention to misstate or conceal the facts;
(ii) he or she took all reasonable steps in the circumstances to ensure that the information in the return was accurate. 95 Obligation to retain records necessary to verify return of party's election expenses (1) A financial agent must take all reasonable steps to ensure that all records, documents, and accounts that are necessary to enable a return under section 91 to be verified are retained until the expiry of the period within which a prosecution may be commenced under this Act in relation to the return or in relation to any matter to which the return relates. (2) Every financial agent who fails, without reasonable excuse, to comply with subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding $40,000. 96 Duty of Electoral Commission If the Electoral Commission believes that any person has committed an offence specified in this subpart, the Electoral Commission must report the facts upon which that belief is based to the New Zealand Police. 97 Return of party's election expenses to be available for public inspection (1) The Electoral Commission must make every return of a party's election expenses filed under section 91, and every accompanying auditor's report obtained under section 92, available for public inspection by any person on payment of any charges that may be made under the Official Information Act 1982. (2) The Electoral Commission may publish every return of a party's election expenses and accompanying auditor's report in any manner that the Electoral Commission considers appropriate. 98 Return of party's election expenses to be kept for certain period (1) The Electoral Commission must keep every return of a party's election expenses and accompanying auditor's report for the period--(a) beginning with the date of receipt of the return and report; and
(b) ending with the close of polling day for the second general election that takes place after the date of receipt of the return and report. (2) On the expiry of the period referred to in subsection (1), the Electoral Commission must destroy, or cause to be destroyed, the return and report. Subpart 8---Third parties' election expenses
99 Interpretation In this subpart, unless the context otherwise requires,--election advertisement election expense publication has the meaning given to it by section 5
has the meaning given to it by section 100
third party activity, in relation to a third party, means an activity--(a) that is undertaken by, or with the authority of,--(i) (ii) the third party; or the third party's financial agent; and
(b) that comprises the publication of a election advertisement in any form (for example, in the form of a radio or television broadcast, notice, poster, pamphlet, billboard, or electronic message); and (c) that is undertaken, or deemed by section 105 to have been undertaken, during the regulated period. 100 Meaning of election expense (1) In this subpart, election expense means an expense that--(a) (b) is incurred in undertaking a third party activity; and is incurred in respect of any of the following costs:
(i) the cost of the preparation, design, composition, printing, distribution, postage, and publication of an election advertisement: (ii) advertisement: the cost of any material used or applied for an election
(iii) the cost of displaying an election advertisement on any advertising space on any land or building that is used solely or principally for commercial or industrial purposes. (2) of--Despite subsection (1)(b), election expense does not include the cost (a) (b) (c) person: travel: the conduct of any survey or public opinion poll: the labour of any person that is provided free of charge by that
(d) the replacement of any material used in respect of an election advertisement which has been destroyed or rendered unusable by 1 or more persons (other than the third party or any person acting on its behalf) or by
the occurrence of an event beyond the control of the third party and any person acting on its behalf. (3) Where any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii) is provided free of charge, the commercial value of that material or advertising space must be included as an election expense of the third party. (4) Where any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii) is provided at less than its commercial value, the amount of the difference between the contract price of the material or advertising space and the commercial value of that material or advertising space must be included as an election expense of the third party. (5) However, subsections (3) and (4) do not apply where the commercial value of the material or advertising space is less than $200. (6) For the purposes of subsections (3) to (5), commercial value, in relation to any material referred to in subsection (1)(b)(ii) or any advertising space referred to in subsection (1)(b)(iii), means the lowest amount charged at the time the material or advertising space was provided, for the same kind and quantity, by--(a) the person who provided it, if that person is in the business of providing that material or advertising space; or (b) another person who provides that material or advertising space on a commercial basis in the area where it was provided, if the person who provided the material or advertising space is not in that business. 101 Election expense to be incurred by third party's financial agent No person other than the third party's financial agent may incur an election expense in relation to a third party activity. 102 Offence to incur unauthorised election expense (1) Every person is guilty of--(a) (b) a corrupt practice who wilfully contravenes section 101; and an illegal practice who contravenes section 101 in any other case.
(2) Every person who enters into an agreement or enters into an arrangement or understanding with any other person for the purpose of circumventing section 101 is guilty of an illegal practice. 103 Maximum amount of third party's total election expenses (1) The total election expenses of a third party in respect of any regulated period must not exceed--(a) the amount of $2,000 in the case of election advertisements that relate to a candidate in the candidate's capacity as a candidate for an
electoral district (whether or not the name of the candidate is stated); and (b) (2) the amount of $60,000 in any case.
(3) For the purposes of subsection (1), it is immaterial whether an election expense is paid or incurred before, during, or after the regulated period. 104 Offences in relation to third party's total election expenses (1) If a third party's total election expenses exceed either of the maximum amounts prescribed by section 103(1), the third party's financial agent is guilty of--(a) a corrupt practice if the financial agent knew the election expenses of the third party exceeded the applicable maximum amount; or (b) an illegal practice in any other case, unless the financial agent proves that he or she took all reasonable steps to ensure that the election expenses did not exceed the maximum amount. (2) Every person who enters into an agreement or enters into an arrangement or understanding with any other person for the purpose of circumventing either of the maximum amounts prescribed by section 103(1) is guilty of an illegal practice. 105 Apportionment of election expense for third party activity undertaken both before and within regulated period (1) This section applies where a third party activity as described in paragraphs (a) and (b) of the definition of that term in section 99 is--(a) undertaken both before and within the regulated period; or
(a) the third party activity is deemed to have been undertaken in the regulated period; but (b) the election expense of -the third party activity must be apportioned so that a fair proportion of the expense is attributed to being incurred within the regulated period. (3) Only the fair proportion of the election expense determined in accordance with subsection (2) is an election expense. 106 Election expenses attributed in respect of advertisements authorised by candidate or party (1) This section applies if an election advertisement promoted by a third party is authorised in writing by the financial agent of the party or by the
financial agent of 1 or more candidates. (2) The election expense of the election advertisement forms part of the election expenses of the third party and also forms part of the election expenses of the party or, as the case requires, the candidate whose financial agent authorised the election advertisement. 107 Periods for claiming and paying third party's election expenses (1) A claim against a third party's financial agent in respect of any election expense is recoverable only if it is sent to the financial agent within 20 working days after the day on which the declaration required by section 193(5) of the Electoral Act 1993 is made. (2) A claim that is sent to a third party's financial agent in accordance with subsection (1) must be paid by the financial agent, and no other person, within 40 working days after the day on which that declaration is made, and not otherwise. (3) Every person who makes any payment in breach of subsection (2) is guilty of an illegal practice. (4) This section is subject to sections 108 and 109
108 Procedure if claim disputed (1) If a financial agent, in the case of a claim for an election expense sent to the third party's financial agent within the period specified by section 107(1), disputes the claim, or fails to pay the claim within the period of 40 working days specified in section 107(2), then--(a) the claim is to be treated as a disputed claim; and
(b) the claimant may, if he or she thinks fit, within 20 working days after the expiration of that period of 40 working days, bring an action for the disputed claim in any court of competent jurisdiction. (2) Any sum paid by the financial agent in accordance with a judgment or order of the court in any such action is to be treated as paid within the time specified by section 107(2). 109 Leave to pay claim after time limitation (1) On the application of a claimant or third party's financial agent, a District Court may make an order granting leave to a financial agent to pay--(a) a claim for election expenses sent after the period specified in section 107(1); or (b) a claim not paid in the period specified in section 107(2); or
(c) a disputed claim in respect of which an action was not brought within the period specified in section 108(1)(b). (2) Any sum specified in the order granting that leave may be paid by the
third party's financial agent, and when so paid is to be treated as having been paid within the period specified in section 107(2). 110 Election expense to be invoiced No payment in respect of any election expense exceeding $50 may be made without an invoice. 111 Return of third party's election expenses (1) Within 70 working days after polling day, a third party's financial agent must file with the Chief Electoral Officer a return setting out the election expenses of the third party in respect of the regulated period. (2) Every return filed under subsection (1) must be---
(a) in the form required by the Chief Electoral Officer and include a statutory declaration made by the financial agent and the person who made the application for the third party listing each declaring that to the best of his or her knowledge and belief--(i) be provided; and the return correctly sets out all the information required to
(ii) a fair assessment has been made of the commercial value of any materials and advertising spaces used in third party advertisements; and (b) required. accompanied by an auditor's report obtained under section 112, if
112 Auditor's report on return of third party's election expenses (1) Every financial agent must, before the Chief Electoral Officer receives the return required by section 111, obtain from the auditor appointed under section 12 a report on the return if the third party's total election expenses exceed 25% of the maximum amount prescribed by section 103(1)(b). (2) The auditor must state in the report---
(a) the position shown by the return in respect of the requirement that the third party's total election expenses not exceed either of the amounts prescribed by section 103; and (b) either---
(a) the auditor has not received from the financial agent all the information that the auditor requires to carry out his or her duties: (b) proper records of the third party's election expenses have not, in the auditor's opinion, been kept by the financial agent. (5) The auditor---
(a) must have access at all reasonable times to all records, documents, and accounts which relate to the third party's election expenses and which are held by the financial agent; and (b) may require the financial agent to provide any information and explanations that, in the auditor's opinion, may be necessary to enable the auditor to prepare the report. 113 Nil return Where a financial agent considers there is no relevant information to disclose under section 111, the financial agent must file a nil return under that section. 114 Offences relating to return of third party's election expenses (1) Every financial agent who fails, without reasonable excuse, to comply with section 111 is liable on summary conviction to a fine not exceeding $40,000. (2) Every financial agent who files a return under section 111 that is false in any material particular is guilty of--(a) a corrupt practice if the financial agent filed the return knowing it to be false in any material particular: (b) proves--facts; and (ii) that he or she took all reasonable steps in the circumstances to ensure that the information in the return was accurate. 115 Obligation to retain records necessary to verify return of third party's election expenses (1) A financial agent must take all reasonable steps to ensure that records, documents, and accounts that are necessary to enable a return section 111 to be verified are retained until the expiry of the period which a prosecution may be commenced under this Act in relation to the or in relation to any matter to which the return relates. all under within return an illegal practice in any other case unless the financial agent (i) that he or she had no intention to misstate or conceal the
(2) Every financial agent who fails, without reasonable excuse, to comply with subsection (1) commits an offence and is liable on summary conviction to a
fine not exceeding $40,000. 116 Duty of Chief Electoral Officer If the Chief Electoral Officer believes that any person has committed an offence specified in this subpart, the Chief Electoral Officer must report the facts upon which that belief is based to the New Zealand Police. 117 Return of third party's election expenses to be available for public inspection (1) As soon as practicable after receiving from a third party's financial agent a return of the third party's election expenses filed under section 111 and any accompanying auditor's report obtained under section 112, the Chief Electoral Officer must send a copy of the return and report to the Electoral Commission. (2) The Chief Electoral Officer must make a copy of every return of a third party's election expenses and any accompanying auditor's report available for public inspection by any person on payment of any charges that may be made under the Official Information Act 1982. (3) The Chief Electoral Officer may publish every return of a third party's election expenses and any accompanying auditor's report in any manner that the Chief Electoral Officer considers appropriate. 118 Return of third party's election expenses to be kept for certain period (1) The Chief Electoral Officer and the Electoral Commission must keep every return of a third party's election expenses and any accompanying auditor's report for the period--(a) beginning with the date of receipt of the return and report; and
(b) ending with the close of polling day for the second general election that takes place after the date of receipt of the return. (2) On the expiry of the period referred to in subsection (1), the Chief Electoral Officer and the Electoral Commission must destroy, or cause to be destroyed, the return and any report. Part 3 Miscellaneous Subpart 1---General provisions and penalties 119 Liability of candidates, party secretaries, and third parties (1) In this section, principal means--(a) (b) a candidate; or a party secretary; or
(2) If an offence is committed against any of the provisions of this Act by the financial agent of a principal, the principal is, without prejudice to the liability of the financial agent, liable under that provision in the same manner and to the same extent as if the principal had personally committed the offence. (3) Subsection (2) only applies if it is proved---
(a) that the act that constituted the offence was committed with the principal's authority, permission, or consent; or (b) that the principal knew or could reasonably have known that the offence was to be or was being committed and failed to take all reasonable steps to stop or prevent it. 120 Providing money for illegal purposes Where any person knowingly provides money for any purpose which is contrary to the provisions of this Act, or for any election expenses incurred in excess of the maximum amount allowed by this Act, or for repaying any money expended in any such payment or expenses, that person is guilty of an illegal practice. 121 Power to issue search warrants in respect of illegal practice (1) A search warrant may be issued under section 198 of the Summary Proceedings Act 1957 in respect of an illegal practice that constitutes an offence under this Act that--(a) (b) (c) has been committed; or is suspected to have been committed; or is believed to be intended to be committed.
(2) Subsection (1) applies even though the offence is not punishable by imprisonment. (3) Section 199 of the Summary Proceedings Act 1957, so far as it is applicable and with any necessary modifications, applies to any thing seized under a warrant provided for by subsection (1). (4) It is declared that a person Proceedings Act 1957 (as applied by seized under a warrant provided for information contained in or derived (a) (b) who, under section 199 of the Summary subsection (3)), has custody of any thing by subsection (1), may disclose any from the thing only---
for the purposes of section 199 of that Act (as so applied); or for the purposes of investigating or prosecuting an offence; or
(c) for the purposes of an appeal or other application that relates to an offence; or (d) for the purposes of complying with any enactment or any order or
direction of a court of competent jurisdiction. 122 Time limit for prosecution (1) A prosecution against a financial agent under any of the following sections must be commenced within 6 months of the date on which the return was required to be filed: (a) (b) (c) (d) (e) (f) section 32(1) or (2): section 40(1): section 50(1): section 75(1) or (2): section 94(1): section 114(1).
(2) A prosecution against a financial agent or any other person for a corrupt practice or illegal practice must be commenced--(a) within 6 months of the date on which the prosecutor is satisfied that there is sufficient evidence to warrant the commencement of proceedings; but (b) not later than 3 years after the corrupt practice or illegal practice was committed. 123 Persons charged with corrupt practice may be found guilty of illegal practice Any person charged with a corrupt practice may, if the circumstances warrant that finding, be found guilty of an illegal practice; and any person charged with an illegal practice may be found guilty of that offence even if the act constituting the offence amounted to a corrupt practice. 124 Punishment for corrupt practice Every person who is guilty of any corrupt practice is liable on conviction on indictment to either or both of the following: (a) (b) a term of imprisonment not exceeding 1 year: a fine not exceeding--(i) (A) (B) (ii) $40,000 in the case of a person who is--a financial agent; or a party secretary; or $15,000 in the case of any other person.
125 Punishment for illegal practice Every person who is guilty of any illegal practice is liable on conviction on indictment to a fine not exceeding--(a) $40,000 in the case of a person who is--(i) (ii) (b) a financial agent; or a secretary; or
$10,000 in the case of any other person.
126 Additional penalty (1) This section applies to a person who--(a) is convicted of an offence under this Act; and
(b) has directly or indirectly received a benefit as a result of the commission of the offence. (2) In addition to any penalty that the court may impose under this Act in respect of the offence, the court may order the person to pay to the Crown an amount of money equal to the value of the benefit that the person has received. (3) For the purpose of subsection (2), the value of any benefit is assessed by the court and is recoverable in the same manner as a fine. Subpart 2---Regulations and transitional provisions 127 Regulations relating to advertisement of a specified kind (1) The Governor-General may from time to time, by Order in Council made on the recommendation of the Minister, make regulations regulating--(a) all or any of the following matters in relation to an advertisement of a specified kind: (i) (ii) (iii) (iv) design: layout: shape: colour:
(b) the procedures to be followed by any person before displaying an advertisement of a specified kind. (2) Regulations made under subsection (1)(a)---
(a) may be made only for the purpose of ensuring that an advertisement of a specified kind does not endanger the safety of road users; and
(b) apply only during the period beginning 2 months before polling day and ending with the close of the day before polling day. (3) Regulations made under subsection (1) may---
(a) impose different requirements for an advertisement of a specified kind depending on how it is published: (b) override or modify any other enactment and any bylaw or other instrument. (4) In this section, advertisement of a specified kind has the same meaning as in section 57(2). (5) This section is subject to section 128.
128 Requirements before Minister can recommend that regulations be made (1) The Minister may not recommend the making of any regulations under section 127(1)(a) unless--(a) the Minister has consulted with the Minister who is for the time being responsible for the administration of the Land Transport Act 1998; and (b) the Minister is satisfied that the regulations do not restrict the rights of candidates and political parties any more than is reasonably necessary to ensure that an advertisement of a specified kind does not endanger the safety of road users; and (c) the recommendation is agreed by at least half of the parliamentary leaders of all political parties represented in Parliament; and (d) the members of Parliament of the political parties whose parliamentary leaders agree with the Minister's recommendation comprise at least 75% of all members of Parliament. (2) The Minister may not recommend the making of any regulations under section 127(1)(b) unless--(a) and (b) the recommendation is agreed by at least half of the parliamentary leaders of all political parties represented in Parliament; and (c) the members of Parliament of the political parties whose parliamentary leaders agree with the Minister's recommendation comprise at least 75% of all members of Parliament. 129 General regulations The Governor-General may from time to time, by Order in Council, make regulations providing for such other matters as are contemplated by or necessary for giving full effect to the provisions of this Act and for its due administration. the Minister has consulted with the Minister of Local Government;
130 Transitional provisions If a writ for a general election or by-election is issued before 1 March 2008, the provisions of the Electoral Act 1993 continue to apply in respect of that election as if this Act were not in force. Subpart 3---Consequential amendments 131 Consequential amendments The enactment specified in the Schedule is amended in the manner set out in that Schedule. Subpart 4---Amendments to Broadcasting Act 1989 132 Principal Act amended This subpart amends the Broadcasting Act 1989. 133 Interpretation Section 2 is amended by inserting the following definition in its appropriate alphabetical order: "election programme,--"(a) in the definition of advertising programme and in sections 8 and 21, means a programme broadcast under Part 6; and "(b) in Part 6, has the meaning given to it by section 69".
134 Right of complainant to refer formal complaint to Authority (1) Section 8 is amended by repealing subsections (1) and (1A) and substituting the following subsections: "(1) A complainant must refer the complaint directly to the Authority if the complaint is that an election programme did not meet 1 or more of the standards in section 4(1)(a) to (c) and (e). "(1A) if--A complainant may refer the complaint directly to the Authority
"(a) the complaint is that a broadcaster failed to comply with section 4(1)(c); and "(b) the complainant chooses to refer the complaint directly to the Authority. "(1B) A complainant may refer the complaint to the Authority if the complainant--"(a) made the complaint under section 4(1)(a); and
"(b) "(i) "(ii) "(1C) and "(a)
is dissatisfied with--the decision of the broadcaster; or the action taken by the broadcaster. A complainant may refer the complaint to the Authority if--the complaint is about a programme other than an election programme;
"(b) at least 20 working days have passed since the broadcaster received the complaint; and "(c) "(i) "(ii) "(d) "(i) the broadcaster has not notified the complainant of--the decision of the broadcaster; or the action taken by the broadcaster; and the broadcaster--has not given the complainant a notice under subsection (1D); or
"(ii) has given the complainant a notice under subsection (1D) but has not complied with the statement under subsection (1D)(c). "(1D) A broadcaster that receives a complaint under section 6 may give the complainant a notice in writing or electronically within 20 working days after receiving the complaint--"(a) stating that the broadcaster will be unable to make a decision or take action on the complaint within 20 working days after receiving the complaint; and "(b) stating the reasons why the broadcaster will be unable to do so; and
"(c) stating that the broadcaster will tell the complainant about its decision or action on the complaint within 40 working days after the broadcaster received the complaint." (2) Section 8(2) is amended by omitting "Subsection (1) of this section" and substituting "Subsections (1) to (1D)". 135 New section 9 substituted Section 9 is repealed and the following section substituted: "9 Time limits "(1) The Authority must not accept a complaint made outside the period specified for the complaint in this section. "(2) A complaint under section 8(1) must be made to the Authority in the period---
"(a) starting on the first working day after the broadcast of the programme that the complaint is about; and "(b) ending 60 working days later.
"(3) A complaint under section 8(1A) must be made to the Authority in the period--"(a) starting on the first working day after the broadcast of the programme that the complaint is about; and "(b) ending 20 working days later.
"(4) A complaint under section 8(1B) must be made to the Authority in the period--"(a) starting on the first working day after the day on which the complainant received notice of the broadcaster's decision or action on the complaint; and "(b) ending 20 working days later.
"(5) A complaint under section 8(1C) must be made to the Authority in the period--"(a) starting on the first working day after the broadcast of the programme that the complaint is about; and "(b) ending 60 working days later."
136 Functions of Authority Section 21(1) is amended by repealing paragraph (b) and substituting the following paragraphs: "(b) to receive and determine complaints that election programmes did not meet 1 or more of the standards in section 4(1)(a) to (c) and (e); and "(ba) to receive and determine complaints when---
"(i) the complaint is that a broadcaster failed to comply with section 4(1)(c); and "(ii) the complainant has chosen to refer the complaint directly to the Authority; and". 137 Prohibition on paid election programmes Section 70(2)(c)(iv) is amended by omitting "3 months preceding polling day for the election" and substituting "election period". Subpart 5---Amendments to Electoral Act 1993 138 Principal Act amended
This subpart amends the Electoral Act 1993. 139 Interpretation (1) Section 3(1) is amended by repealing the definitions of anonymous and election expenses. (2) Section 3(1) is amended by repealing the definition of corrupt practice and substituting the following definition: "corrupt practice means any act declared by this Act or the Electoral Finance Act 2007 to be a corrupt practice". (3) Section 3(1) is amended by repealing the definition of illegal practice and substituting the following definition: "illegal practice means any act declared by this Act or the Electoral Finance Act 2007 to be an illegal practice". 140 Electoral Commission Section 4 is amended by inserting "and the Electoral Finance Act 2007" after "Act". 141 Functions Section 5 is amended by repealing paragraph (c) and substituting the following paragraph: "(c) to supervise political parties' compliance with the requirements of the Electoral Finance Act 2007:". 142 Membership (1) (2) Section 8(4) is repealed. Section 8(5) is repealed.
143 Term of office Section 10 is repealed. 144 Vacation of office of additional members who hold office for purposes of jurisdiction under Part 6 of Broadcasting Act 1989 Section 11 is repealed. 145 Appointment of deputies Section 11A(1) is amended by omitting "or section 8(4)(b)".
146 Chief Electoral Officer Section 18 is amended by inserting "and the Electoral Finance Act 2007" immediately before "into". 147 Application for registration (1) Section 63(2)(c)(v) is amended by omitting "section 214D" and substituting "section 11 of the Electoral Finance Act 2007". (2) Section 63(2)(c) is amended by adding the following subparagraph:
"(viii) set out the name and address of the person, being a person eligible for appointment under section 9 of the Electoral Finance Act 2007, who is to be appointed as the financial agent of the party, and be accompanied by that person's signed consent to the appointment; and". (3) Section 63 is amended by adding the following subsection:
"(5) For the purposes of subsection (2)(c)(v) and (viii), address means,--"(a) in relation to an individual, the full address of the place where that person usually lives: "(b) in relation to a body corporate or unincorporated, the full address of its principal place of business or head office." 148 Registration Section 67(3)(f) is repealed. 149 Deposit by party secretary (1) Section 127A(4)(a) is amended by omitting "section 214C" and substituting "section 91 of the Electoral Finance Act 2007". (2) Section 127A(4)(b) is amended by omitting "under section 214E" and substituting "obtained under section 92 of the Electoral Finance Act 2007". 150 Deposit by candidate Section 144(4) is 210 in respect of completed returns and any auditor's amended by omitting "a duly completed return under section that candidate" and substituting "from that candidate duly under sections 29 and 72 of the Electoral Finance Act 2007 report required under section 73 of that Act".
151 Deposit payable in respect of bulk nomination schedule Section 146F(4) is amended by omitting " a return under section 210 in respect of every constituency candidate nominated in the bulk nomination schedule" and substituting "from every constituency candidate nominated in the bulk
nomination schedule duly completed returns under sections 29 and 72 of the Electoral Finance Act 2007 and any auditor's report required under section 73 of that Act". 152 Interfering with or influencing voters Section 197(1) is amended by omitting "$5,000" and substituting "$20,000". 153 Repeals (1) The heading above each of sections 206, 214A, 214B, 214F, and 214K are omitted. (2) The following sections are repealed: (a) (b) (c) sections 206 to 211: sections 213 to 214L: sections 219, 221, 221B, 267A, and 267B.
154 Electoral advertisements Section 221A(1) is amended by inserting "(not being an election advertisement as defined in section 5 of the Electoral Finance Act 2007)" after "election". 155 Providing money for illegal purposes Section 220 is amended by omitting ", or for any election expenses incurred in excess of the maximum amount allowed by this Act, or for repaying money expended in any such payment or expenses," and substituting ", or for repaying any money expended in any such payment,". 156 Punishment for corrupt or illegal practice (1) Section 224(1)(a) is amended by omitting "$4,000" and substituting "$15,000". (2) Section 224(1)(b) is amended by omitting "$3,000" and substituting "$10,000". (3) Section 224 is amended by repealing subsection (2) and substituting the following subsection: "(2) Nothing in this section applies in relation to a corrupt practice under any of the following provisions: "(a) "(b) "(c) section 201; or the Electoral Finance Act 2007; or section 43 of the Citizens Initiated Referenda Act 1993; or
"(d) 1997."
section 54 of the Compulsory Retirement Savings Scheme Referendum Act
157 New section 226A inserted The following section is inserted after section 226: "226A Power to issue search warrants in respect of illegal practice "(1) A search warrant may be issued under section 198 of the Summary Proceedings Act 1957 in respect of an illegal practice that constitutes an offence under this Act that--"(a) "(b) "(c) has been committed; or is suspected to have been committed; or is believed to be intended to be committed.
"(2) Subsection (1) applies even though the offence is not punishable by imprisonment. "(3) Section 199 of the Summary Proceedings Act 1957, so far as it is applicable and with any necessary modifications, applies to any thing seized under a warrant provided for by subsection (1). "(4) It is declared that a person who, under section 199 of the Summary Proceedings Act 1957 (as applied by subsection (2)), has custody of any thing seized under a warrant provided for by subsection (1), may disclose any information contained in or derived from the thing only--"(a) "(b) for the purposes of section 199 of that Act (as so applied); or for the purposes of investigating or prosecuting an offence; or
"(c) for the purpose of an appeal or other application that relates to an offence; or "(d) for the purposes of complying with any enactment or any order or direction of a court of competent jurisdiction." 158 Schedule 1 amended Clause 1 of Schedule 1 is repealed. -------------------Schedule Consequential amendments Citizens Initiated Referenda Act 1993 (1993 No 101) Section 24(5): omit "206 to 214L, 221". Section 24A(3): omit "206 to 214A, 215 to 219, 221" and substitute "215 to 218". s 131
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