Political Parties, Elections and Referendums Bill - continued        House of Lords
PART VI, CONTROLS RELATING TO THIRD PARTY NATIONAL ELECTION CAMPAIGNS - continued

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  CHAPTER II
  FINANCIAL CONTROLS
 
General restrictions relating to controlled expenditure by recognised third parties
Restriction on incurring controlled expenditure.     90. - (1) No amount of controlled expenditure shall be incurred by or on behalf of a recognised third party 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 recognised third party that is a registered party, any expenses are incurred in contravention of subsection (1), the expenses shall not count for the purposes of sections 94 to 99 or Schedule 10 as controlled expenditure incurred by or on behalf of the recognised third party.
 
Restriction on payments in respect of controlled expenditure.     91. - (1) No payment (of whatever nature) may be made in respect of any controlled expenditure incurred or to be incurred by or on behalf of a recognised third party 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 expenditure by a person within paragraph (a) or (b) of subsection (1) must be supported by an invoice or a receipt unless it is less than £200.
 
      (3) Where a person within paragraph (b) of subsection (1) makes a payment to which subsection (2) applies, he must deliver to the responsible person-
 
 
    (a) notification that he has made the payment, and
 
    (b) the supporting invoice or receipt,
  as soon as possible after making the payment.
 
      (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 controlled expenditure.     92. - (1) A claim for payment in respect of controlled expenditure incurred by or on behalf of a recognised third party during any period which is a regulated period (as defined by section 94(10)(a)) shall not be payable if the claim is not sent to-
 
 
    (a) the responsible person, or
 
    (b) any other person authorised under section 90 to incur the expenditure,
  not later than 21 days after the end of the regulated period.
 
      (2) Any claim sent in accordance with subsection (1) shall be paid not later than 42 days after the end of the regulated 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 expenditure in question was 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 recognised third party to obtain payment before the end of the period allowed under that subsection.
 
      (7) Subsections (7) to (10) of section 77 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;
 
    (b) any reference to campaign expenditure were a reference to controlled expenditure; 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 recognised third party.
Disputed claims.     93. - (1) This section applies where-
 
 
    (a) a claim for payment in respect of controlled expenditure incurred by or on behalf of a recognised third party as mentioned in section 92(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 92(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 92(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 92 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 92(1); and
 
    (b) subsections (7) and (8) of section 77 shall apply as if any reference to subsection (4) of that section were a reference to section 92(4) as applied by paragraph (a) above.
 
Financial limits
Limits on controlled expenditure by third parties.     94. - (1) Schedule 10 has effect for imposing limits on controlled expenditure incurred by or on behalf of recognised third parties in England, Scotland, Wales or Northern Ireland during the periods specified in that Schedule.
 
      (2) Where during a regulated period any controlled expenditure is incurred in a relevant part of the United Kingdom by or on behalf of a recognised third party in excess of the limit imposed by Schedule 10 in relation to that period and part of the United Kingdom, then-
 
 
    (a) if the third party is not an individual-
 
      (i) the responsible person is guilty of an offence if he authorised the expenditure to be incurred by or on behalf of the third party and he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit, and
 
      (ii) the third party is also guilty of an offence;
 
    (b) if the third party is an individual, he is guilty of an offence if he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit.
      (3) Subsection (4) applies where-
 
 
    (a) during a regulated period any controlled expenditure is incurred in a part of the United Kingdom by or on behalf of a third party in excess of the limit for that part of the United Kingdom mentioned in subsection (5), and
 
    (b) the third party is not a recognised third party.
      (4) In such a case-
 
 
    (a) if the third party is not an individual-
 
      (i) any person who authorised the expenditure to be incurred by or on behalf of the third party is guilty of an offence if he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit, and
 
      (ii) the third party is also guilty of an offence;
 
    (b) if the third party is an individual, he is guilty of an offence if he knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit.
      (5) The limits referred to in subsection (3) are as follows-
 
 
    (a) £10,000 for England; and
 
    (b) £5,000 for each of Scotland, Wales and Northern Ireland.
      (6) Where-
 
 
    (a) during a regulated period any controlled expenditure is incurred in a particular part of the United Kingdom by or on behalf of a third party, and
 
    (b) the expenditure is so incurred in pursuance of a plan or other arrangement whereby controlled expenditure is to be incurred by or on behalf of-
 
      (i) that third party, and
 
      (ii) one or more other third parties,
 
    respectively in connection with the production or publication of election material which can reasonably be regarded as intended to achieve a common purpose falling within section 85(3),
  the expenditure mentioned in paragraph (a) shall be treated for the purposes of this section and Schedule 10 as having also been incurred, during the period and in the part of the United Kingdom concerned, by or on behalf of the other third party (or, as the case may be, each of the other third parties) mentioned in paragraph (b)(ii).
 
      (7) Subsection (6) applies whether or not any of the third parties in question is a recognised third party.
 
      (8) Where-
 
 
    (a) at any time before the beginning of any regulated period any expenses within section 85(2) are incurred by or on behalf of a third party in respect of any property, services or facilities, but
 
    (b) the property, services or facilities is or are made use of by or on behalf of the third party during the regulated period in circumstances such that, had any expenses been incurred in respect of that use during that period, they would by virtue of section 85(2) have constituted controlled expenditure incurred by or on behalf of the third party during that period,
  the appropriate proportion of the expenses mentioned in paragraph (a) shall be treated for the purposes of this section, sections 96 to 99 and Schedule 10 as controlled expenditure incurred by or on behalf of the third party during that period.
 
      (9) For the purposes of subsection (8) the appropriate proportion of the expenses mentioned in paragraph (a) of that subsection is such proportion of those expenses as is reasonably attributable to the use made of the property, services or facilities as mentioned in paragraph (b).
 
      (10) For the purposes of this section, sections 96 to 99 and Schedule 10-
 
 
    (a) a "regulated period" is a period in relation to which any limit is imposed by Schedule 10;
 
    (b) any reference to controlled expenditure incurred by or on behalf of a recognised third party during a regulated period includes any controlled expenditure so incurred during that period at any time before the third party became a recognised third party;
 
    (c) a part of the United Kingdom is a "relevant part" if any limit imposed by Schedule 10 applies to controlled expenditure which is incurred in that part; and
 
    (d) any reference to controlled expenditure being incurred in a part of the United Kingdom shall be construed in accordance with paragraph 2 of that Schedule.
 
Donations to recognised third parties
Control of donations to recognised third parties.     95. Schedule 11 has effect for controlling donations to recognised third parties which either are not registered parties or are minor parties.
 
 
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Prepared 23 November 2000