Electoral (Finance Reform and Advance Voting) Amendment Bill

12A New subpart 2A inserted

• The following subpart is inserted after section 206R:

  “Subpart 2A—Election expenses of registered promoters

  “206S Interpretation

  • “(1) In this subpart,—

    “advertising expenses has the meaning given to it by section 3E

    “election advertisement has the meaning given to it by section 3A

    “election expenses, in relation to a registered promoter,—

    • “(a) means the advertising expenses incurred in relation to an election advertisement that—

      • “(i) is published, or continues to be published, during the regulated period; and

      • “(ii) is promoted by the registered promoter; and

    • “(b) includes, as required by section 34 of the Electoral Referendum Act 2010, any referendum expenses incurred in relation to an advertisement that comprises both—

      • “(i) an election advertisement; and

      • “(ii) a referendum advertisement (within the meaning of section 30 of the Electoral Referendum Act 2010)

    “registered promoter has the meaning given to it by section 204A.

    “(2) For the purposes of the definition of election expenses, it is immaterial whether an election expense is paid or incurred before, during, or after the regulated period.

  “206T Persons who may incur election expenses in relation to election advertisement promoted by registered promoter

  • An election expense in relation to an election advertisement promoted by a registered promoter may only be incurred by—

    • “(a) the registered promoter; or

    • “(b) a person authorised by the registered promoter.

  “206U Offence to incur unauthorised election expense

  • Every person is guilty of—

    • “(a) a corrupt practice who wilfully contravenes section 206T; and

    • “(b) an illegal practice who contravenes section 206T in any other case.

    “Compare: 2007 No 111 s 117(1)

  “206V Maximum amount of registered promoter's total election expenses

  • “(1) The total election expenses of a registered promoter in respect of any regulated period must not exceed $300,000 (or such other amount as is prescribed by the Governor-General by Order in Council under section 266A).

    “(2) The amount in subsection (1) is inclusive of goods and services tax.

  “206W Apportionment of advertising expenses for publication of election advertisement promoted by registered promoter both before and during regulated period

  • “(1) This section applies if an election advertisement that is promoted by a registered promoter—

    • “(a) is published both before the commencement of the regulated period and during the regulated period; or

    • “(b) is published before the commencement of the regulated period and continues to be published during the regulated period.

    “(2) If this section applies,—

    • “(a) the election advertisement is deemed to have been published during the regulated period; but

    • “(b) the advertising expenses for the publication of the election advertisement must be apportioned so that only a fair proportion of the expenses is attributed to being incurred during the regulated period.

    “(3) Only the advertising expenses attributed to being incurred during the regulated period in accordance with subsection (2) are election expenses.

    “Compare: 2007 No 11 s 119

  “206X Offence to pay election expenses in excess of prescribed maximum

  • “(1) This section applies to any registered promoter or other person who directly or indirectly pays or knowingly aids or abets any person in paying for or on account of any election expenses any sum in excess of the maximum amount prescribed by section 206V.

    “(2) The registered promoter or other person is guilty of—

    • “(a) a corrupt practice if he or she knew the payment was in excess of the prescribed maximum amount; or

    • “(b) an illegal practice in any other case, unless he or she proves that he or she took all reasonable steps to ensure that the election expenses did not exceed the prescribed maximum amount.

    “(3) Every person who enters into an agreement or enters into an arrangement or understanding with any other person for the purpose of circumventing the maximum amount prescribed in section 206V is guilty of a corrupt practice.

    “Compare: 2007 No 111 s 122

  “206Y Periods for claiming and paying registered promoter's election expenses

  • “(1) A claim for any election expenses against a registered promoter is recoverable only if it is sent to the registered promoter within 20 working days after the day on which the declaration required by section 179(2) is made.

    “(2) A claim that is sent to a registered promoter in accordance with subsection (1) must be paid within 40 working days after the day on which that declaration is made, and not otherwise.

    “(3) A person who makes a payment in breach of this section is guilty of an illegal practice.

    “(4) This section is subject to sections 206Z and 206ZA.

    “Compare: 2007 No 111 s 82

  “206Z Procedure if claim disputed

  • “(1) If a registered promoter, in the case of a claim for election expenses sent to a registered promoter within the period specified in section 206Y(1), disputes the claim or fails to pay the claim within the period of 40 working days specified in section 206Y(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 expiry 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 registered promoter in accordance with a judgment or order of the court in any such action is to be treated as paid within the period specified in section 206Y(2).

    “Compare: 2007 No 111 s 83

  “206ZA Leave to pay claim after time limitation

  • “(1) On the application of a claimant or a registered promoter, a District Court may make an order granting leave to the registered promoter to pay—

    • “(a) a claim for election expenses sent after the period specified in section 206Y(1); or

    • “(b) a claim not paid in the period specified in section 206Y(2); or

    • “(c) a disputed claim in respect of which an action was not brought within the period specified in section 206Z(1)(b).

    “(2) Any sum paid by the registered promoter in accordance with an order made under subsection (1) is to be treated as having been paid within the period specified in section 206Y(2).

    “Compare: 2007 No 111 s 84

  “206ZB Invoice and receipt required for election expenses of $50 or more

  • “(1) Every payment made in respect of any election expenses of a registered promoter must be vouched by an invoice stating the particulars, and by a receipt.

    “(2) Subsection (1) does not apply to a payment less than $50.

  “206ZC Return of registered promoter's election expenses

  • “(1) This section applies to a registered promoter whose total election expenses in respect of any regulated period exceed $100,000 (inclusive of goods and services tax).

    “(2) Within 70 working days after polling day, the registered promoter must file a return of election expenses with the Electoral Commission.

    “(3) If the registered promoter is not an individual or a company, the return must be filed by the registered promoter's representative who is duly authorised to file the return.

    “(4) A return filed under subsection (2) must be in the form required by the Electoral Commission.

  “206ZD Electoral Commission may require auditor's report on return of registered promoter's election expenses

  • “(1) If the Electoral Commission has reasonable grounds to believe that a return filed under section 206ZC may contain any false or misleading information, the Electoral Commission may require the registered promoter (at the registered promoter's expense) to obtain from an auditor 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 registered promoter's total election expenses must not exceed the maximum amount prescribed by section 206V; 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 under 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 registered promoter all the information that the auditor requires to carry out his or her duties; or

    • “(b) proper records of the registered promoter's election expenses have not, in the auditor's opinion, been kept by the registered promoter.

    “(5) The auditor—

    • “(a) must have access at all reasonable times to all records, documents, and accounts that relate to the registered promoter's election expenses and that are held by the registered promoter; and

    • “(b) may require the registered promoter to provide any information and explanation that, in the auditor's opinion, may be necessary to enable the auditor to prepare the report.

    “Compare: 2007 No 111 s 128

  “206ZE Offences relating to return of registered promoter's election expenses

  • “(1) A registered promoter who fails, without reasonable excuse, to comply with section 206ZC is liable on summary conviction to a fine not exceeding $40,000.

    “(2) A registered promoter who files a return under section 206ZC that is false in any material particular is guilty of—

    • “(a) a corrupt practice if the registered promoter filed the return knowing it to be false in any material particular:

    • “(b) an illegal practice in any other case unless the registered promoter proves that—

      • “(i) he or she had no intention to misstate or conceal the facts; and

      • “(ii) he or she took all reasonable steps in the circumstances to ensure that the information was accurate.

    “(3) If the registered promoter is not an individual or a company, the registered promoter's representative who files the return in accordance with section 206ZC(3) is liable under subsections (1) and (2).

    “(4) Subsection (3) does not limit the liability of a registered promoter under subsection (1) or (2).

    “Compare: 2007 No 111 s 130

  “206ZF Obligation to retain records necessary to verify return of registered promoter's election expenses

  • “(1) A registered promoter must take all reasonable steps to ensure that all records, documents, and accounts that are reasonably necessary to enable a return filed under section 206ZC 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) A registered promoter 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.

    “Compare: 2007 No 111 s 131

  “206ZG Duty of Electoral Commission

  • “(1) If the Electoral Commission believes that any person has committed an offence specified in this subpart, the Electoral Commission must report the facts on which that belief is based to the New Zealand Police.

    “(2) Subsection (1) does not apply if the Electoral Commission considers that the offence is so inconsequential that there is no public interest in reporting those facts to the New Zealand Police.

    “Compare: 2007 No 111 s 132

  “206ZH Return of registered promoter's election expenses to be publicly available

  • “(1) The Electoral Commission may publish, in any manner that the Electoral Commission considers appropriate, every return filed under section 206ZC.

    “(2) During the public inspection period, the Electoral Commission must make available for public inspection a copy of every return filed under section 206ZC.

    “(3) The Electoral Commission may make inspection under subsection (2) subject to the payment of any charges that may be made under the Official Information Act 1982.

    “Compare: 2007 No 111 s 133”.