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Third Session, Thirty-Seventh Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.
It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications.

Bill 46

THE ELECTIONS FINANCES AMENDMENT ACT


Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. E32 amended

1           The Elections Finances Act is amended by this Act.

2(1)        Section 1 is amended by adding the following definitions in alphabetical order:

"leadership contest" means any procedure by which a registered political party selects a leader; (« campagne visant la désignation du chef d'un parti »)

"leadership contest period" means the period beginning on the date of the official call of a leadership contest, as set out in a statement filed by a registered political party under section 31.1, and ending two months after the date of the leadership vote; (« période de campagne visant la désignation du chef d'un parti »)

"leadership contestant" means a person seeking the leadership of a registered political party at a leadership contest called by that party for the purpose; (« candidat à la direction d'un parti »)

2(2)        The definition "contribution" in section 1 is amended

(a) in the part before clause (a), by adding "leadership contestant," after "candidate,"; and

(b) in clause (b), by adding "or leadership contestant" after "candidate".

2(3)        The definition "donation in kind" in section 1 is amended

(a) in the part before clause (a), by adding "leadership contestant," after "candidate,"; and

(b) in clause (b), by adding ", leadership contestant" after "candidate".

2(4)        The definition "election expenses" in section 1 is amended in clause (r) by striking out "convention or other" and substituting "contest or any".

2(5)        The definition "fund raising function" in section 1 is amended by adding "leadership contestant," after "candidate,".

2(6)        The definition "official agent" in section 1 is replaced with the following:

"official agent"

(a) of a candidate, means the person appointed as the official agent in the candidate's nomination papers, or subsequently appointed by the candidate as a replacement by notice in writing to the Chief Electoral Officer, and

(b) of a leadership contestant, means the person appointed as the contestant's official agent in accordance with section 10; (« agent officiel »)

2(7)        The definition "transfer" in section 1 is amended by striking out "and endorsed candidates, without compensation from the entity or candidate" and substituting ", endorsed candidates and leadership contestants, without compensation from the entity or person".

3           Section 6 is amended

(a) in clause (a), by striking out "and" at the end of subclause (i), by adding "and" at the end of subclause (ii), and by adding the following:

(iii) leadership contestants;

(b) in subclause (b)(iii), by adding "and leadership contestants," before "and deputies";

(c) in clause (c), by adding "and leadership contestants" after "candidates"; and

(d) in clause (h), by adding "leadership contestants," after "candidates,".

4(1)        Subsection 8.1(1) is amended by adding "or leadership contestant" after "candidate" where it occurs in the section and in the section heading.

4(2)        Subsection 8.1(2) is replaced with the following:

Candidate not eligible to act as official agent

8.1(2)      No candidate is eligible to act as his or her own official agent or deputy official agent, or as the official agent or deputy official agent of another candidate, or as the official agent of a leadership contestant.

Leadership contestant not eligible to act as official agent

8.1(3)      No leadership contestant is eligible to act as his or her own official agent or as the official agent or deputy official agent of a candidate.

5           The following is added after subsection 10(5):

Official agent for leadership contestant

10(6)       Immediately on becoming a leadership contestant, every contestant shall appoint an official agent, and shall provide to the Chief Electoral Officer, in the prescribed form, the official agent's name, address, telephone number and the official agent's signed consent to act in that capacity.

Replacement of official agent

10(7)       If a leadership contestant's official agent ceases to hold office for any reason, the contestant shall immediately notify the Chief Electoral Officer of the new official agent in accordance with subsection (6).

Responsibilities of leadership contestant's official agent

10(8)       In addition to the other powers, duties and functions of an official agent under this Act and the regulations, the official agent of a leadership contestant is responsible for ensuring that

(a) accounts are maintained in a financial institution in the name of the contestant;

(b) records are kept of receipts, including contributions and other income;

(c) at the time the statement under section 61.1 is filed, records of contributions are filed with the Chief Electoral Officer that include the name and address of each contributor and the value of the contributions during the leadership contest period;

(d) records are kept of all expenses;

(e) records are kept of all assets and liabilities; and

(f) financial statements and returns and other information, in prescribed form, are filed with the Chief Electoral Officer;

by or on behalf of the contestant in accordance with this Act.

6(1)        Subsection 10.1(1) is replaced with the following:

Accounts

10.1(1)     A person required to maintain an account under section 10 shall

(a) deposit in that account all money provided to the registered political party, constituency association, candidate or leadership contestant, as the case may be; and

(b) make all disbursements from that account, including transfers.

6(2)         Subsection 10.1(3) is amended by striking out "and" at the end of clause (b), by adding "and" at the end of clause (c), and by adding the following:

(d) in the case of an account in the name of a leadership contestant, money relating solely to the leadership contestant.

7           Subsection 10.2(2) is replaced with the following:

Persons not eligible

10.2(2)     None of the following persons shall act as an auditor for a candidate, a leadership contestant or a registered political party:

(a) an election officer or enumerator appointed under The Elections Act;

(b) a candidate or leadership contestant, or an official agent of either of them;

(c) the chief financial officer of a registered political party;

(d) a person involved in the raising or spending of money or the custody of property of a candidate, leadership contestant or registered political party.

8           The following is added after section 10.3:

Leadership contestant shall appoint auditor

10.3.1      Immediately on becoming a leadership contestant, every leadership contestant shall appoint an auditor, and shall provide to the Chief Electoral Officer, in the prescribed form, the auditor's name, address and telephone number and the auditor's signed consent to act in that capacity.

9(1)        Subsection 10.4(1) is amended by striking out everything before "as the case may be" and substituting "If an auditor for a registered political party, candidate or leadership contestant ceases to act for any reason, the leader of the party, or the candidate or leadership contestant,".

9(2)        Subsection 10.4(2) is amended by striking out "a candidate" and substituting "for a candidate or leadership contestant".

10(1)       Subsections 10.5(1)is amended by adding "or leadership contestant" after "candidate".

10(2)       Clause 10.5(2)(a) is amended by adding ", leadership contestant" after "candidate".

10(3)       Subsection 10.5(3) is amended by striking out everything before clause (b) and substituting the following:

Access to records

10.5(3)     The official agent of a candidate or leadership contestant and the chief financial officer of a registered political party, and any employee or agent of a candidate or leadership contestant, or employee, agent or officer of a registered political party, shall

(a) give the auditor access at all reasonable times to the records of the candidate, leadership contestant or registered political party; and

10(4)       Subsection 10.5(4) is amended by striking out "of a candidate or a registered political party".

11          The following is added after section 31:

NOTICE OF LEADERSHIP CONTEST

Notice of leadership contest

31.1(1)     The chief financial officer of a registered political party that proposes to hold a leadership contest shall promptly file a statement with the Chief Electoral Officer in the prescribed form setting out the date of the official call of the leadership contest and the date fixed for the leadership vote.

Information about leadership contestants

31.1(2)     In addition, the chief financial officer shall immediately notify the Chief Electoral Officer, in prescribed form, of the name, address and telephone number of each leadership contestant, and the day they became a contestant.

12          The following is added after section 33:

No tax receipts for contributions to leadership contestants

33.1        No person shall issue a tax receipt for a contribution made to or for the benefit of a leadership contestant.

13(1)       Subsection 38(1) is amended

(a) in the part before clause (a), by adding "leadership contestant," after "candidate,"; and

(b) in clause (a), by adding "or leadership contestant" after "candidate".

13(2)       Subsection 38(2) is amended by adding "leadership contestant," after "candidate,".

14          The following is added after subsection 39(1):

Leadership contestant's personal contributions

39(1.1)     A leadership contestant may make contributions in support of the contestant's own campaign for the leadership.

15(1)       Subsections 40(1) and (2) are amended by adding "leadership contestant," after "candidate,".

15(2)       Subsection 40(3) is amended by striking out everything before clause (b) and substituting the following:

Recording donations in kind

40(3)       Where a donation in kind is accepted by or on behalf of a candidate, leadership contestant, constituency association or registered political party, the value of the donation in kind and the name and address of the contributor shall, for purposes of subsection 44(4) and sections 61.1, 62, 64 and 67, be recorded

(a) in the case of a candidate or leadership contestant, by his or her official agent;

16(1)       Subsection 41(1) is amended by adding "leadership contestant," after "candidate,".

16(2)       Subsection 41(1.1) is replaced with the following:

Limit on contributions by individuals to candidates, constituency associations and parties

41(1.1)     No individual shall make contributions totalling more than $3000. in a calendar year to candidates, constituency associations or registered political parties or any combination of them.

Limit on contributions by individuals to leadership contestants

41(1.1.1)   No individual shall make contributions totalling more than $3,000. in a leadership contest period to one or more leadership contestants.

No contributions to contestant before leadership contest begins

41(1.1.2)   No individual shall make a contribution, before the leadership contest period begins, to a person who is or intends to become a leadership contestant.

16(3)       Subsection 41(1.2) is amended in the part before clause (a) by adding "leadership contestant," after "candidate,".

16(4)       Subsection 41(2) is amended

(a) by adding "leadership contestant," after "candidate,"; and

(b) by striking out "subsection (1), (1.1) or (1.2)" and substituting "this section".

16(5)       Subsection 41(3) is amended

(a) by adding "leadership contestant" after "on behalf of a candidate,"; and

(b) by adding "or leadership contestant," after "official agent of the candidate".

16(6)       Subsection 41(4) is amended by adding "leadership contestant," after "candidate,".

17           Section 42 is amended by adding "leadership contestant," after "candidate,".

18(1)       Subsection 44(1) is amended by adding ", but shall not transfer money, goods or services to a leadership contestant" at the end.

18(2)       Subsection 44(2) is amended by adding "or to a leadership contestant" at the end.

18(3)       Subsection 44(3) is amended by adding "or a leadership contestant" at the end.

18(4)       The following is added after subsection 44(3):

No transfer by leadership contestant

44(3.1)     Except as provided in subsection 68.1(4) (payment of surplus to party), a leadership contestant shall not transfer money, good or services to a registered political party, a constituency association of a registered political party, a candidate or another leadership contestant.

19           Section 44.1 is amended by adding ", a leadership contestant," after "candidate" wherever it occurs.

20(1)       Subsection 44.2(1) is amended

(a) in the part before clause (a), by adding ", a leadership contestant" after "candidate,"; and

(b) in clause (c) by adding ", 61.1" after "61".

20(2)       Subsection 44.2(2) is amended

(a) in clause (a), by adding "or leadership contestant," after "candidate"; and

(b) in clause (b), by striking out "candidate," and substituting "candidate or leadership contestant, by the candidate or contestant".

21           The following is added after section 44.3:

No loans from leadership contestant to others

44.3.1      A leadership contestant shall not lend money raised for the purposes of a leadership contest to another person or to any organization.

22           The following is added after subsection 48(4):

Application of section to leadership contestants

48(5)       This section applies, with necessary changes, to leadership contestants during a leadership contest period.

23           The following is added after subsection 54.1(3):

Leadership contest expenses not included in annual limit

54.1(3.1)   Advertising expenses incurred in respect of a leadership contest — whether incurred by or on behalf of a leadership contestant or a registered political party — are not advertising expenses to which the limit under this section applies.

24           The following is added after section 55:

CLAIM FOR LEADERSHIP CONTESTANT EXPENSES

Claim for leadership contestant expenses

55.0.1(1)   Every person who has a claim against a leadership contestant for an expense incurred by the contestant in respect of the leadership contest shall send the claim to the contestant's official agent within one month after the date of the leadership vote.

Section 55 applies to leadership contestants

55.0.1(2)   Section 55 applies, with necessary changes, in relation to claims for expenses against leadership contestants.

25           Subsection 57(2) is amended

(a) by adding "leadership contestant," after "candidate,"; and

(b) by adding "or contestant's" after "candidate's".

26           Section 58 is amended by adding "leadership contestant," after "candidate,".

27           The following is added after section 61:

Statement of leadership contestant

61.1(1)     Within 30 days after the end of the leadership contest period, the official agent of every leadership contestant shall file with the Chief Electoral Officer an audited statement setting out

(a) all receipts and income, including contributions and other income, of the leadership contestant during the leadership contest period;

(b) all disbursements by or on behalf of the contestant during the leadership contest period; and

(c) the assets and liabilities of the contestant at the end of the leadership contest period;

together with the auditor's report for the financial statement.

Details of contributions to leadership contestant

61.1(2)     At the time of filing a statement under subsection (1), the official agent of every leadership contestant shall also file with the Chief Electoral Officer a return setting out, in respect of the leadership contest period of the contestant,

(a) where the aggregate value of the contributions received by or on behalf of the contestant during the leadership contest period from any individual was $250. or more,

(i) the name and address of the individual, and

(ii) the aggregate value of the contributions from that individual to the contestant during the leadership contest period;

(b) where the aggregate value of the contributions received by or on behalf of the contestant during the leadership contest period from any individual was $25. or more but was less than $250., the aggregate value of all such contributions from all such contributors to the contestant during the leadership contest period; and

(c) the aggregate value of all contributions received by or on behalf of the contestant during the leadership contest period and not included in the aggregates required to be set out under clauses (a) and (b).

Contestant to keep records

61.1(3)     If the leadership contest period begins before a leadership contestant appoints an official agent, the contestant shall maintain records of receipts, expenses, and assets and liabilities, in sufficient detail to meet the filing requirements under this section. Upon the appointment of the official agent, the contestant shall turn the records over to the official agent.

Filing by leadership contestant who withdraws

61.1(4)     The requirements of subsections (1) to (3) apply to any leadership contestant who withdraws from a leadership contest, and in that event,

(a) the leadership contest period ends on the day the person withdraws; and

(b) if the contestant withdraws before appointing an official agent, the contestant shall file the statement and return required under this section.

Expenses and contributions only after leadership contest period begins

61.1(5)     No leadership contestant may incur an expense or accept a contribution related to a leadership contest before the leadership contest period begins.

Reimbursement of auditor's fee

61.2        Upon the filing of the statement under subsection 61.1(1), the Minister of Finance shall pay out of the Consolidated Fund to the auditor for the leadership contestant $600. or any lesser amount that the Chief Electoral Officer considers reasonable as a fee for auditing the statement.

28           The following is added after section 68:

Leadership contestant's deficit or surplus: definitions

68.1(1)     In this section,

"deficit" means the amount by which money paid or payable by a leadership contestant exceeds money received or receivable; (« déficit »)

"surplus" means the amount by which money received or receivable by a leadership contestant exceeds money paid or payable. (« excédent »)

Elimination of deficit

68.1(2)     Within 30 days after the end of the year, every leadership contestant with a deficit shall file with the Chief Electoral Officer a return setting out

(a) the amount of the deficit that remains outstanding;

(b) if the deficit has been reduced or eliminated, the total amounts of contributions or other funds used to reduce or eliminate it; and

(c) if the contestant received, after the end of the leadership contest period, contributions from any individual which in any year have an aggregate value of $250. or more,

(i) the name and address of the individual, and

(ii) the aggregate value of the contributions from that individual to the leadership contestant during the year.

Records of contributions

68.1(3)     At the time of filing a return under subsection (2), every contestant with a deficit shall file with the Chief Electoral Officer records of contributions received during the year, which include the name and address of each contributor, the value of the contributions during the year and the date each contribution was made.

Payment of surplus

68.1(4)     If a leadership contestant has a surplus, the contestant's official agent shall transfer the surplus to the chief financial officer of the registered political party for which the leadership contest was held.

Payment of surplus in case of withdrawal

68.1(5)     When a leadership contestant who withdraws from a leadership contest has a surplus at the time of withdrawal, his or her official agent shall transfer the surplus to the chief financial officer of the registered political party for which the leadership contest is held. If the withdrawal occurs before an official agent is appointed, the contestant shall transfer the surplus to the chief financial officer of the party.

29(1)       Subsection 69(1) is amended

(a) in the part before clause (a), by adding "or leadership contestant" after "candidate"; and

(b) by replacing clause (a) with the following:

(a) in the case of the official agent of a candidate or leadership contestant, to the candidate or contestant; and

29(2)       Subsection 69(2) is replaced with the following:

Filing by candidate, contestant or leader

69(2)       A person who receives notice under subsection (1) shall, within 30 days after receiving it or within any extended time period granted by the Chief Electoral Officer, file the statement or return or other information.

30(1)       Subsection 70.1(1) is amended in the part before clause (a) by adding "leadership contestants," after "candidates,".

30(2)       Clause 70.1(2)(a) is amended by adding "leadership contestant," after "candidate,".

31           Section 90 is replaced with the following:

Vicarious liability

90(1)       If the chief financial officer of a political party or his or her deputy, the official agent of a candidate or his or her deputy, or the official agent of a leadership contestant, is guilty of an offence under this Act or the regulations, the political party, candidate or leadership contestant may be charged with the same offence and, if convicted, is liable to the fine imposed for the offence under this Act.

Saving

90(2)       Nothing in subsection (1) precludes prosecution against a candidate, leadership contestant or political party for an offence under this Act or the regulations committed by any person or organization

(a) acting on behalf of the candidate, leadership contestant or political party within the scope of the actual or apparent authority of the person or organization; or

(b) acting with the knowledge and consent of the candidate, leadership contestant or political party.

32          The following is added after section 99.1:

Amendments

99.2        An amendment to this Act may not come into force until three months after the day it receives royal assent.

Coming into force

33           This Act comes into force six months after the day it receives royal assent.

Explanatory Note

This Bill extends political campaign finance legislation to leadership contests held by registered political parties.  It requires leadership contestants to appoint an official agent and file financial disclosure reports. Only individuals who reside in Manitoba are allowed to make contributions to leadership contestants, and only to a maximum of $3000. during a contest.