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5th Session, 42nd Legislature

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Bill 245

THE PUBLIC SCHOOLS AMENDMENT ACT (CAMPAIGN FINANCING)


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

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

C.C.S.M. c. P250 amended

1   The Public Schools Act is amended by this Act.

2   The following is added before section 24:

CAMPAIGN FINANCING

Definitions

23.1(1)   The following definitions apply in this section and in sections 23.2 to 23.18.

"campaign account" means, in respect of a registered candidate, an account that is listed in their application to become a registered candidate. (« compte de campagne »)

"campaign expense" means

(a) money spent or liabilities incurred; and

(b) the value of non-monetary contributions accepted;

in respect of goods used or services provided by or on behalf of and with the knowledge and consent of a registered candidate during a campaign period for the purpose of an election, but does not include expenses relating to a recount in respect of the election. (« dépenses électorales »)

"campaign period" means

(a) in a general election, the period beginning on June 30 in the year of the election and ending on March 31 of the year after the election; and

(b) in a by-election, the period beginning on the day when the senior election official receives the warrant to hold the by-election and ending on the day that is 90 days after the by-election. (« période de campagne électorale »)

"contribution" means money paid or a non-monetary contribution provided by a contributor to or for the benefit of a registered candidate without compensation from the candidate. (« contribution »)

"financial institution" means a bank, credit union, trust company or other similar institution. (« établissement financier »)

"non-monetary contribution" means goods or services provided to or for the benefit of a registered candidate without compensation from the candidate, and includes

(a) services of an employee provided by an employer;

(b) goods produced or donated voluntarily by a contributor who is a commercial supplier of the goods; and

(c) services provided voluntarily by a contributor who is a commercial or occupational supplier of the services;

but does not include

(d) money;

(e) goods produced or donated voluntarily, other than in clause (b); or

(f) services provided voluntarily, other than in clause (c). (« contribution non monétaire »)

"organization" includes

(a) a trade union, a partnership and an unincorporated association;

(b) a political party registered under the Canada Elections Act, or a constituency association of such a party; and

(c) a political party registered under The Election Financing Act, or a constituency association of such a party. (« organisation »)

"registered candidate" means a candidate who has been registered under section 23.3. (« candidat inscrit »)

Value of non-monetary contribution

23.1(2)   The value of a non-monetary contribution is

(a) the fair market value of the goods or services at the time of the donation; or

(b) where the non-monetary contribution is services of an employee provided by an employer, the cost to the employer of the salary or wages of the employee whose services are provided for the period during which the services are provided.

Definitions in Municipal Councils and School Boards Elections Act apply

23.1(3)   Terms and expressions defined in The Municipal Councils and School Boards Elections Act have the same meaning in this section and sections 23.2 to 23.18 as they have in that Act unless they are otherwise defined in this Act.

By-law on expenses and contributions

23.2(1)   A school board must pass a by-law

(a) prescribing the limit to campaign expenses that may be incurred by a registered candidate;

(b) prescribing the portion of income from a fundraising event that is deemed to be a contribution, and the portion that is deemed to be campaign expenses;

(c) prescribing the manner in which registered candidates must keep records of contributions received and campaign expenses incurred by them;

(d) in respect of an election finance statement required to be filed under section 23.14,

(i) prescribing additional information, if any, required to be included in the statement, and

(ii) prescribing the date on or before which the statement must be filed, which must not be more than 210 days after the election;

(e) prescribing the date on or before which any further statement requested by the secretary-treasurer under subsection 23.14(2) must be filed, which must not be more than 60 days after the registered candidate receives the request; and

(f) prescribing forms for the purpose of the by-law.

Effective date of by-law

23.2(2)   A by-law under this section must be passed at least 180 days before the election in respect of which it is to take effect.

Registration of prospective candidates

23.3(1)   The senior election official must register an individual who proposes to be a candidate in an election if

(a) during the campaign period for the election and before nominations close, the individual applies for registration in a form approved by the senior election official; and

(b) the senior election official is satisfied that the individual is eligible to be nominated in the election.

Information that must be provided

23.3(2)   When applying to be registered as a candidate, the individual must provide

(a) their name and address;

(b) the name and address of any financial institution in which accounts are to be used by or on behalf of the individual for the purpose of the election campaign, and the numbers of every such account; and

(c) any additional information required by the senior election official.

Report of change in information

23.3(3)   An individual must immediately notify the senior election official in writing of any changes in the information they provided to the senior election official under this section.

No contribution, expenses or borrowing until registered

23.4   No individual, other than a registered candidate, and no person acting on the individual's behalf, shall, for the purpose of electing the individual,

(a) solicit or accept a contribution;

(b) borrow money; or

(c) incur an expense.

Registered candidate entitled to copy of voters list

23.5   The senior election official must give a registered candidate, on request, a copy of the voters list. The senior election official may determine the form in which the list is given.

Only individual residents may contribute

23.6(1)   No person or organization other than an individual normally resident in Manitoba shall make a contribution to a registered candidate.

Application to Flin Flon

23.6(2)   Despite subsection (1), an individual who is normally resident in the boundary area defined in The Flin Flon Extension of Boundaries Act, S.M. 1989-90, c. 73, may make a contribution to a registered candidate in an election in the school division that includes the City of Flin Flon.

Contributions

23.7(1)   A school board must pass a by-law that establishes the maximum amount an individual may contribute to a registered candidate.

Limit on contributions by individuals

23.7(2)   An individual must not make contributions to a registered candidate that exceeds the amount established in a by-law passed under subsection (1).

Prohibited contributions not to be accepted

23.8(1)   A registered candidate in an election must not

(a) solicit or accept a contribution from

(i) a person who is not an individual normally resident in Manitoba, or

(ii) an organization;

(b) solicit or knowingly accept a contribution that exceeds the limits established by a by-law passed under subsection 23.7(1); or

(c) incur campaign expenses in respect of the election in excess of the limit prescribed in the by-law passed under clause 23.2(1)(a).

Return of contribution

23.8(2)   A registered candidate, on learning that a contribution accepted by or on their behalf is contrary to this Act, must immediately return to the contributor

(a) the contribution; or

(b) the amount of money equal to the value of the contribution.

Candidate's personal contributions

23.9(1)   A registered candidate may make a contribution to

(a) their own election campaign; or

(b) the election campaign of another registered candidate.

Limit applies to contributions of candidate

23.9(2)   For certainty, the limit to the contributions established by by-law passed under subsection  23.7(1) applies to the contributions made by a registered candidate.

Anonymous contributions

23.10   A registered candidate who is given an anonymous contribution must not spend the contribution, but rather must turn it over to the senior election official. Contributions turned over to the senior election official become part of the general funds of the school division or school district.

Loans only from financial institutions

23.11(1)   A registered candidate must not solicit or accept a loan for the purposes of an election, except from a financial institution.

Prohibition making loan

23.11(2)   No person or organization, other than a financial institution, may make a loan to a registered candidate for the purposes of an election.

Loans to registered candidates

23.11(3)   A loan made by a financial institution to a registered candidate is not a contribution.

Loan must be paid into campaign account

23.11(4)   A registered candidate must ensure that a loan received from a financial institution is paid directly into a campaign account of the candidate.

Loan payments must be made from campaign account

23.11(5)   Payments on a loan made to a registered candidate must be made from a campaign account of the candidate.

Loan payments made in different manner

23.11(6)   A payment on a loan made to a registered candidate that is not made from a campaign account of the candidate is a contribution to the candidate made by the person or organization that made the payment.

No loans from registered candidates to others

23.12   A registered candidate must not lend money raised for the purposes of an election to another person or to any organization.

Duties of registered candidate

23.13   A registered candidate must ensure that

(a) proper records are kept of the contributions made to and the campaign expenses incurred by the candidate;

(b) monetary contributions are deposited in a campaign account of the candidate;

(c) a campaign account of the candidate is used only for the purpose of the election campaign of the candidate;

(d) all payments relating to or arising out of the campaign are made only by cheque drawn on a campaign account of the candidate; and

(e) all financial records relating to the election campaign of the candidate are retained for not less than two years after the election and made available on request to the secretary-treasurer.

Candidate to file election finance statement

23.14(1)   Each registered candidate in an election must file with the secretary-treasurer an election finance statement that contains the following information in respect of the campaign period of the election:

(a) all contributions received and expenses incurred by the candidate;

(b) the name, address and the contribution of each contributor who has made to the candidate a contribution of more than $250;

(c) an itemized list of campaign expenses incurred by the candidate;

(d) the contributions and expenses relating to each fundraising event, in accordance with apportioning prescribed in a by-law passed under clause 23.2(1)(b);

(e) particulars of any loan made to the candidate for the purpose of the election campaign, including the name of the financial institution that made the loan, the principal amount of the loan, the interest rate on the loan and the terms of repayment;

(f) any other information required by the by-law passed under subclause 23.2(1)(d)(i).

Further statement

23.14(2)   If the secretary-treasurer finds an election finance statement filed by a registered candidate to be incorrect or incomplete and notifies the candidate in writing of the finding, the candidate is required, not later than a day prescribed in the by-law passed under clause 23.2(1)(e) and specified in the notice, to file with the secretary-treasurer a further statement containing the information required under subsection (1).

Audit may be required

23.15(1)   A school board may, by by-law, require election finance statements and further statements requested under subsection 23.14(2) to be audited.

Qualifications of auditor

23.15(2)   If a school board has passed a by-law under subsection (1), a candidate's election finance statement and any further statement requested from the candidate under subsection 23.14(2) must be prepared by an auditor who

(a) is a chartered professional accountant authorized to provide public accounting services in accordance with The Chartered Professional Accountants Act; and

(b) is not involved in the election for which the statement is prepared as an election official or a candidate, or in raising funds for a registered candidate, and who certifies to that effect.

Appointment of auditor

23.15(3)   If a school board passes a by-law under subsection (1), the candidate must include the name and address of the candidate's auditor in the candidate's application to be registered under section 23.3.

Audit expenses are not a campaign expense

23.15(4)   The expense incurred by the candidate in having a statement audited is not a campaign expense of the candidate.

Effective date of by-law

23.15(5)   A by-law under this section must be passed at least 180 days before the election in respect of which it is to take effect.

Claims for campaign expenses

23.16   A person who has a claim against a registered candidate in an election for payment in relation to the election must submit the claim in writing to the candidate within 30 days after the election day in the election.

Surplus payable to school division or school district

23.17(1)   Where a registered candidate's election finance statement filed under subsection 23.14(1) shows a surplus of funds, the candidate must immediately pay the surplus to the school division or school district which must hold it in trust on behalf of the candidate for use by the candidate in the next general election.

Release of surplus

23.17(2)   A school division or school district must not release money held under subsection (1) in trust on behalf of an individual who was a registered candidate in an election until the person is registered under section 23.3 (registration of prospective candidates) for the next general election, and if the person

(a) advises the senior election official in writing that the person will not seek nomination;

(b) is not nominated; or

(c) is not registered under section 23.3 as a candidate;

in the next general election, the money must be paid into the general funds of the school division or school district.

Failure by elected candidate to file statement

23.18(1)   Where a registered candidate who is elected in an election fails to file

(a) an election finance statement required under subsection 23.14(1) before the date prescribed in a by-law passed under subclause 23.2(1)(d)(ii); or

(b) a further statement required under subsection 23.14(2) before the date prescribed in a by-law passed under clause 23.2(1)(e);

the secretary-treasurer must provide a written report of the failure to the school board at its next meeting, and the candidate must not sit on the school board until the secretary-treasurer reports to the school board that the candidate's statement has been filed.

Forfeiture of seat

23.18(2)   A registered candidate elected in an election forfeits their seat on the school board if the candidate fails to comply with section 23.14 (filing election finance statement) within 270 days after the day of the election.

Failure of other registered candidates to file

23.18(3)   An individual who is registered as a candidate in an election and who is not nominated, withdraws or is not elected in the election, and fails to comply with section 23.14 (filing election finance statement), is disqualified from being nominated for or elected as a trustee until after the next general election.

BOARD COMPOSITION

Coming into force

3   This Act comes into force 180 days after the day it receives royal assent.

Explanatory Note

This Bill amends The Public Schools Act.

Campaign financing rules are provided for candidates who seek office as school trustees.