Political Parties, Elections and Referendums Bill - continued        House of Lords
PART VII, REFERENDUMS - continued

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  CHAPTER II
  FINANCIAL CONTROLS
 
Referendum expenses
Referendum expenses.     108. - (1) The following provisions have effect for the purposes of this Part.
 
      (2) "Referendum expenses", in relation to a referendum to which this Part applies, means expenses incurred by or on behalf of any individual or body which are expenses falling within Part I of Schedule 13 and incurred for referendum purposes.
 
      (3) "For referendum purposes" means-
 
 
    (a) in connection with the conduct or management of any campaign conducted with a view to promoting or procuring a particular outcome in relation to any question asked in the referendum, or
 
    (b) otherwise in connection with promoting or procuring any such outcome.
      (4) "Referendum campaign" means a campaign such as is mentioned in subsection (3)(a); and "campaign organiser", in relation to referendum expenses, means the individual or body by whom or on whose behalf the expenses are incurred.
 
Notional referendum expenses.     109. - (1) This section applies where, in the case of any individual or body-
 
 
    (a) either-
 
      (i) property is transferred to the individual or body free of charge or at a discount of more than 10 per cent. of its market value, or
 
      (ii) property, services or facilities is or are provided for the use or benefit of the individual or body free of charge or at a discount of more than 10 per cent. of the commercial rate for the use of the property or for the provision of the services or facilities, and
 
    (b) the property, services or facilities is or are made use of by or on behalf of the individual or body in circumstances such that, if any expenses were to be (or are) actually incurred by or on behalf of the individual or body in respect of that use, they would be (or are) referendum expenses incurred by or on behalf of the individual or body.
      (2) Where this section applies, an amount of referendum expenses determined in accordance with this section ("the appropriate amount") shall be treated, for the purposes of this Part, as incurred by the individual or body during the period for which the property, services or facilities is or are made use of as mentioned in subsection (1)(b).
 
  This subsection has effect subject to subsection (9).
 
      (3) Where subsection (1)(a)(i) applies, the appropriate amount is such proportion of either-
 
 
    (a) the market value of the property (where the property is transferred free of charge), or
 
    (b) the difference between the market value of the property and the amount of expenses actually incurred by or on behalf of the individual or body in respect of the property (where the property is transferred at a discount),
       as is reasonably attributable to the use made of the property as mentioned in subsection (1)(b).
 
      (4) Where subsection (1)(a)(ii) applies, the appropriate amount is such proportion of either-
 
 
    (a) the commercial rate for the use of the property or the provision of the services or facilities (where the property, services or facilities is or are provided free of charge), or
 
    (b) the difference between that commercial rate and the amount of expenses actually incurred by or on behalf of the individual or body in respect of the use of the property or the provision of the services or facilities (where the property, services or facilities is or are provided at a discount),
       as is reasonably attributable to the use made of the property, services or facilities as mentioned in subsection (1)(b).
 
      (5) Where the services of an employee are made available by his employer for the use or benefit of an individual or body, then for the purposes of this section the amount which is to be taken as constituting the commercial rate for the provision of those services shall be the amount of the remuneration or allowances payable to the employee by his employer in respect of the period for which his services are made available (but shall not include any amount in respect of contributions or other payments for which the employer is liable in respect of the employee).
 
      (6) Where an amount of referendum expenses is treated, by virtue of subsection (2), as incurred by or on behalf of an individual or body during any period the whole or part of which falls within the period which is, in relation to the referendum to which the expenses relate, the referendum period then-
 
 
    (a) the amount mentioned in subsection (7) shall be treated as incurred by or on behalf of the individual or body during the referendum period, and
 
    (b) if a return falls to be prepared under section 117 in respect of referendum expenses incurred by or on behalf of the individual or body during that period, the responsible person shall make a declaration of that amount,
       unless that amount is less than £200.
 
      (7) The amount referred to in subsection (6) is such proportion of the appropriate amount (determined in accordance with subsection (3) or (4)) as reasonably represents the use made of the property, services or facilities as mentioned in subsection (1)(b) during the referendum period.
 
      (8) A person commits an offence if he knowingly or recklessly makes a false declaration under subsection (6).
 
      (9) No amount of referendum expenses shall be regarded as incurred by virtue of subsection (1) in respect of-
 
 
    (a) the transmission by a broadcaster of a referendum campaign broadcast (within the meaning of section 124);
 
    (b) the provision of any rights conferred on a designated organisation (or persons authorised by such an organisation) by virtue of section 107(4) and Schedule 12; or
 
    (c) the provision by any individual of his own services which he provides voluntarily in his own time and free of charge.
      (10) Paragraph 2(5) and (6)(a) of Schedule 15 shall apply with any necessary modifications for the purpose of determining, for the purposes of subsection (1), whether property is transferred to an individual or body.
 
 
General restrictions relating to referendum expenses incurred by permitted participants
Restriction on incurring referendum expenses.     110. - (1) No amount of referendum expenses shall be incurred by or on behalf of a permitted participant unless it is incurred with the authority of-
 
 
    (a) the responsible person; or
 
    (b) a person authorised in writing by the responsible person.
      (2) A person commits an offence if, without reasonable excuse, he incurs any expenses in contravention of subsection (1).
 
      (3) Where, in the case of a permitted participant that is a registered party, any expenses are incurred in contravention of subsection (1), the expenses shall not count for the purposes of sections 114 to 120 or Schedule 14 as referendum expenses incurred by or on behalf of the permitted participant.
 
Restriction on payments in respect of referendum expenses.     111. - (1) No payment (of whatever nature) may be made in respect of any referendum expenses incurred or to be incurred by or on behalf of a permitted participant unless it is made by-
 
 
    (a) the responsible person, or
 
    (b) a person authorised in writing by the responsible person.
      (2) Any payment made in respect of any such expenses by a person within paragraph (a) or (b) of subsection (1) must be supported by an invoice and a receipt unless it is less than £100.
 
      (3) Where a person within paragraph (b) of subsection (1) makes a payment to which subsection (2) applies, he must-
 
 
    (a) deliver to the responsible person-
 
      (i) notification that he has made the payment, and
 
      (ii) the supporting invoice,
 
    as soon as possible after making the payment, and
 
    (b) deliver to the responsible person a receipt for the payment as soon as possible after receiving the receipt.
      (4) A person commits an offence if, without reasonable excuse-
 
 
    (a) he makes any payment in contravention of subsection (1), or
 
    (b) he contravenes subsection (3).
Restriction on making claims in respect of referendum expenses.     112. - (1) A claim for payment in respect of referendum expenses incurred by or on behalf of a permitted participant during a referendum period shall not be payable if the claim is not sent, together with the relevant invoice, to-
 
 
    (a) the responsible person, or
 
    (b) any other person authorised under section 110 to incur the expenses,
       not later than 21 days after the end of the referendum period.
 
      (2) Any claim sent in accordance with subsection (1) shall be paid not later than 42 days after the end of the referendum period.
 
      (3) A person commits an offence if, without reasonable excuse-
 
 
    (a) he pays any claim which by virtue of subsection (1) is not payable, or
 
    (b) he makes any payment in respect of a claim after the end of the period allowed under subsection (2).
      (4) In the case of any claim to which subsection (1) applies-
 
 
    (a) the person making the claim, or
 
    (b) the person with whose authority the expenses in question were incurred,
       may apply to the High Court or a county court or, in Scotland, to the Court of Session or the sheriff for leave for the claim to be paid although sent in after the end of the period mentioned in that subsection; and the court, if satisfied that for any special reason it is appropriate to do so, may by order grant the leave.
 
      (5) Nothing in subsection (1) or (2) shall apply in relation to any sum paid in pursuance of the order of leave.
 
      (6) Subsection (2) is without prejudice to any rights of a creditor of a permitted participant to obtain payment before the end of the period allowed under that subsection.
 
      (7) Subsections (7) to (10) of section 75 shall apply for the purposes of this section as if-
 
 
    (a) any reference to subsection (1), (2) or (4) of that section were a reference to subsection (1), (2) or (4) above; and
 
    (b) any reference to campaign expenditure were a reference to referendum expenses; and
 
    (c) any reference to the treasurer or deputy treasurer of the registered party were a reference to the responsible person in relation to the permitted participant.
Disputed claims.     113. - (1) This section applies where-
 
 
    (a) a claim for payment in respect of referendum expenses incurred by or on behalf of a permitted participant as mentioned in section 112(1) is sent to-
 
      (i) the responsible person, or
 
      (ii) any other person with whose authority it is alleged that the expenditure was incurred,
 
    within the period allowed under that provision; and
 
    (b) the responsible person or other person to whom the claim is sent fails or refuses to pay the claim within the period allowed under section 112(2);
       and the claim is referred to in this section as "the disputed claim".
 
      (2) The person by whom the disputed claim is made may bring an action for the disputed claim, and nothing in section 112(2) shall apply in relation to any sum paid in pursuance of any judgment or order made by a court in the proceedings.
 
      (3) For the purposes of this section-
 
 
    (a) subsections (4) and (5) of section 112 shall apply in relation to an application made by the person mentioned in subsection (1)(b) above for leave to pay the disputed claim as they apply in relation to an application for leave to pay a claim (whether it is disputed or otherwise) which is sent in after the period allowed under section 112(1); and
 
    (b) subsections (6) and (7) of section 75 shall apply as if any reference to subsection (4) of that section were a reference to section 112(4) as applied by paragraph (a) above.
 
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Prepared 26 October 2000