Bill C-19: An Act to amend the Canada Elections Act (accountability with respect to political loans)

C-19 Third Session, Fortieth Parliament, 59 Elizabeth II, 2010 HOUSE OF COMMONS OF CANADA BILL C-19 An Act to amend the Canada Elections Act (accountability with respect to political loans) first reading, April 28, 2010 MINISTER OF STATE (DEMOCRATIC REFORM) 90410 SUMMARY This enactment amends the Canada Elections Act to enact rules concerning loans, guarantees and suretyships with respect to registered parties, registered associations, candidates, leadership contestants and nomination contestants. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca 3rd Session, 40th Parliament, 59 Elizabeth II, 2010 house of commons of canada BILL C-19 An Act to amend the Canada Elections Act (accountability with respect to political loans) Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Political Loans Accountability Act. 2000, c. 9 CANADA ELECTIONS ACT 2003, c. 19, s. 23 2. Subsection 403.28(3) of the Canada Elections Act is replaced by the following: Prohibition — accepting contributions, borrowing (3) No person, other than an electoral district agent of a registered association, shall accept contributions to the registered association or borrow money on its behalf. 2003, c. 19, s. 23 3. Paragraph 403.31(1)(b) of the Act is replaced by the following: (b) the payment was not made in the six-month period referred to in section 403.3. 2003, c. 19, s. 23 4. Subsection 403.34(1) of the Act is replaced by the following: Deemed contributions 403.34 (1) Any unpaid amount of a claim mentioned in a return referred to in subsection 403.35(1) is deemed to be a contribution to the registered association made as of the day on which the expense was incurred or the loan was made, as the case may be, if the claim remains unpaid in whole or in part (a) 18 months after the end of the fiscal period to which the return relates, in the case of a claim to be paid for an expense; or (b) three years after the end of the fiscal period during which the loan was made, in the case of a claim for a loan made to the registered association under section 405.5. 2003, c. 19, s. 23 5. (1) Subparagraph 403.35(2)(e)(ii) of the Act is replaced by the following: (ii) unpaid claims that are, or may be, the subject of an application referred to in subsection 403.31(1) or section 403.32, and loans made to the registered association under section 405.5 that remain unpaid in whole or in part; 2003, c. 19, s. 23 (2) Paragraphs 403.35(2)(i) and (i.1) of the Act are replaced by the following: (i) a statement of the terms and conditions of each loan made to the registered association under section 405.5, including the amount of the loan, the interest rate, the lender’s name and address, the dates and amounts of repayments of principal and payments of interest and, if there is a guarantor, the guarantor’s name and address and the amount guaranteed; and 2003, c. 19, s. 23 (3) Subsection 403.35(3) of the Act is replaced by the following: Report (2.1) If there is any amendment to the information in a statement made under paragraph (2)(i) — including the giving of a guarantee or suretyship in respect of the loan — after the financial transactions return is provided, then the registered association’s financial agent shall without delay provide the Chief Electoral Officer with a report on the amendment in the prescribed form. Publication (3) The Chief Electoral Officer shall publish the information in a statement made under paragraph (2)(i) and any report provided under subsection (2.1) as soon as practicable after receiving the information or report, as the case may be. The publication shall be in the manner that he or she considers appropriate. 2006, c. 9, s. 46(1) 6. (1) The portion of subsection 405(1) of the Act before paragraph (a) is replaced by the following: Contribution limits 405. (1) Subject to subsection 405.5(4), no individual shall make contributions that exceed 2006, c. 9, s. 46(1) (2) Paragraph 405(1)(c) of the Act is replaced by the following: (c) $1,000 in total in any calendar year to the leadership contestants in a particular leadership contest. 2003, c. 19, s. 25 (3) Subsection 405(5) of the Act is repealed. 7. The Act is amended by adding the following after section 405.4: Loans, Guarantees and Suretyships Ineligible lenders and guarantors 405.5 (1) Except as permitted under this section, no person or entity shall (a) make a loan to a registered party or a registered association; (b) make a loan to a candidate, a leadership contestant or a nomination contestant in relation to the candidate’s or contestant’s campaign; or (c) guarantee a loan referred to in paragraph (a) or (b). Ineligible borrowers (2) Except if the loan is permitted under this section, no chief agent of a registered party or financial agent of a registered association shall borrow money on behalf of the party or association, and no official agent of a candidate or financial agent of a leadership contestant or nomination contestant shall borrow money for the purposes of the candidate’s or contestant’s campaign. Exception — financial institutions (3) A financial institution as defined in section 2 of the Bank Act may in writing make a loan referred to in subsection (1) at a fair market rate of interest. Exception — individuals (4) An individual who is a citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act may in writing make a loan referred to in subsection (1) or guarantee such a loan. However, the total of the following amounts shall not at any time exceed the individual’s relevant contribution limit set out in paragraphs 405(1)(a) to (c) and (4)(a) to (c): (a) the amounts of the individual’s contributions, (b) the amounts of the individual’s loans made in the relevant contribution period, not including any amount that has been repaid in the calendar year in which the loan was made, and (c) the amounts guaranteed by the individual in the relevant contribution period, not including any amount for which the individ- ual has ceased to be liable in the calendar year in which the guarantee was given. Exception — certain loans (5) A loan may be made in writing (a) by a registered party to a registered association of the party or a candidate endorsed by the party; or (b) by a registered association to the registered party with which it is affiliated, another registered association of the party or a candidate endorsed by the party. Exception — certain guarantees and suretyships (6) A registered party or registered association may in writing guarantee a loan made in writing to a party, association or candidate to which it itself is permitted to make a loan under subsection (5). Deemed contributions 405.6 (1) Any unpaid amount of a loan made under subsection 405.5(3) or (4) to a candidate, leadership contestant, nomination contestant, registered party or registered association is deemed to be a contribution to the candidate, leadership contestant, nomination contestant, registered party or registered association, made as of the day on which the loan was made, if the loan remains unpaid, in whole or in part, three years after (a) polling day, in the case of a candidate; (b) the end of the leadership contest, in the case of a leadership contestant; (c) the selection date as defined in section 478.01 — or, in the case referred to in subsection 478.23(7), polling day — in the case of a nomination contestant; and (d) the end of the fiscal period during which the loan was made, in the case of a registered party or registered association. When no deemed contribution (2) Subsection (1) does not apply to an unpaid amount that, at the end of the three-year period, (a) is the subject of a binding agreement to pay; (b) is the subject of a legal proceeding to secure its payment; (c) is the subject of a dispute as to the amount that was to be paid or the amount that remains unpaid; or (d) has been written off by the lender as an uncollectable debt in accordance with the lender’s normal accounting practices. Notice by registered party, etc. (3) A registered party, registered association, candidate, leadership contestant or nomination contestant or the registered agent, financial agent or official agent, as the case may be, that believes that any of paragraphs (2)(a) to (d) prevents subsection (1) from applying to a liability of the party, association, candidate or contestant to pay an amount shall so notify the Chief Electoral Officer before the end of the three-year period. Representations (4) Before a determination is made under subsection (5), an electoral district association, registered party or lender shall be given the opportunity to make representations to the Chief Electoral Officer. Chief Electoral Officer’s determination (5) The Chief Electoral Officer shall without delay determine whether any of paragraphs (2)(a) to (d) applies to the liability and shall inform the person or entity of his or her determination. Uncollectable debts — candidates (6) If the Chief Electoral Officer determines that an unpaid amount of a loan to a candidate of a registered party has been written off under paragraph (2)(d), then the Chief Electoral Officer shall inform the lender of his or her determination; furthermore, the candidate’s registered association or, if there is no registered association, the registered party becomes liable for the unpaid amount as if the association or party had guaranteed the loan. Publication (7) As soon as practicable after the end of the three-year period, the Chief Electoral Officer shall publish in any manner that he or she considers appropriate (a) a notice of any unpaid amount that is deemed to be a contribution under subsection (1); and (b) a notice of any unpaid amount that, under subsection (2), is not deemed to be a contribution, as well as the paragraph of that subsection that prevents it from being deemed to be a contribution. 2003, c. 19, s. 31 8. Subsection 416(3) of the Act is replaced by the following: Prohibition — accepting contributions, borrowing (3) No person or entity, other than a registered agent of a registered party, shall accept contributions to the registered party or borrow money on its behalf. 9. Paragraph 419(1)(b) of the Act is replaced by the following: (b) the payment was not made in the six-month period mentioned in section 418. 2003, c. 19, s. 33 10. Subsection 423.1(1) of the Act is replaced by the following: Deemed contributions 423.1 (1) Any unpaid amount of a claim mentioned in the financial transactions return referred to in subsection 424(1) or in an election expenses return referred to in subsection 429(1) is deemed to be a contribution to the registered party made as of the day on which the expense was incurred or the loan was made, as the case may be, if the claim remains unpaid in whole or in part (a) 18 months after the end of the fiscal period to which the return relates or in which the polling day fell, as the case may be, in the case of a claim to be paid for an expense; or (b) three years after the end of the fiscal period during which the loan was made, in the case of a claim for a loan made to the registered party under section 405.5. 11. (1) Subparagraph 424(2)(f)(ii) of the Act is replaced by the following: (ii) unpaid claims that are, or may be, the subject of an application referred to in subsection 419(1) or section 420, and loans made to the registered party under section 405.5 that remain unpaid in whole or in part; (2) Paragraph 424(2)(j) of the Act is replaced by the following: (j) a statement of the terms and conditions of each loan made to the registered party under section 405.5, including the amount of the loan, the interest rate, the lender’s name and address, the dates and amounts of repayments of principal and payments of interest and, if there is a guarantor, the guarantor’s name and address and the amount guaranteed; and (3) Subsection 424(3) of the Act is replaced by the following: Report (2.1) If there is any amendment to the information in a statement made under paragraph (2)(j) — including the giving of a guarantee or suretyship in respect of the loan — after the financial transactions return is provided, then the registered party’s chief agent shall without delay provide the Chief Electoral Officer with a report on the amendment in the prescribed form. Publication (3) The Chief Electoral Officer shall publish the information in a statement made under paragraph (2)(j) and any report provided under subsection (2.1) as soon as practicable after receiving the information or report, as the case may be. The publication shall be in the manner that he or she considers appropriate. 2003, c. 19, s. 40 12. Subsection 435.22(1) of the Act is replaced by the following: Prohibition — accepting contributions, borrowing 435.22 (1) No person, other than a leadership campaign agent of a leadership contestant, shall accept contributions to the contestant’s leadership campaign or borrow money on the contestant’s behalf under section 405.5. 2003, c. 19, s. 40 13. (1) Subsection 435.24(1) of the Act is replaced by the following: Payment within three years 435.24 (1) A claim for leadership campaign expenses evidenced by an invoice or other document that has been sent in accordance with section 435.23, as well as a claim for repayment of a loan made under section 405.5, must be paid within three years after the day on which the leadership contest ends. 2003, c. 19, s. 40 (2) The portion of subsection 435.24(2) of the Act before paragraph (a) is replaced by the following: Exceptions (2) The requirement to pay a claim within three years does not apply to a claim in respect of which 2003, c. 19, s. 40 14. Subsection 435.26(1) of the Act is replaced by the following: Irregular claims or payments — Chief Electoral Officer 435.26 (1) On the written application of a person with a claim to be paid for a leadership campaign expense in relation to a leadership contestant or to be paid for a loan made to the leadership contestant under section 405.5, or on the written application of the contestant’s financial agent or the contestant in relation to such a claim, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the payment, through the contestant’s financial agent, of the amount claimed if (a) in the case of an expense, the invoice or other document evidencing the claim was not sent in accordance with section 435.23 or the payment was not made in the three-year period referred to in subsection 435.24(1); or (b) in the case of a loan, the repayment of the loan was not made in the three-year period referred to in subsection 435.24(1). 2003, c. 19, s. 40 15. (1) Paragraph 435.27(a) of the Act is replaced by the following: (a) the applicant establishes that an authorization under subsection 435.26(1) has been refused and that the invoice or other document evidencing the claim was not sent in accordance with section 435.23 or the payment has not been made in the three-year period referred to in subsection 435.24(1); or (2) Section 435.27 of the Act is renumbered as subsection 435.27(1) and is amended by adding the following: Irregular claims and payments — judge (2) On the application of a person with a claim to be paid for a loan made to a leadership contestant under section 405.5 or on the application of the contestant’s financial agent or the contestant, as the case may be, a judge who is competent to conduct a recount may, on being satisfied that there are reasonable grounds for so doing, by order authorize the payment, through the contestant’s financial agent, of the amount claimed if (a) the applicant establishes that an authorization under subsection 435.26(1) has been refused and that the payment has not been made in the three-year period referred to in subsection 435.24(1); or (b) the amount claimed has not been paid in accordance with an authorization obtained under subsection 435.26(1) and the applicant establishes their inability to comply with the authorization for reasons beyond their control. The applicant shall notify the Chief Electoral Officer that the application has been made. 2003, c. 19, s. 40 16. The portion of subsection 435.28(1) of the Act before paragraph (a) is replaced by the following: Proceedings to recover payment 435.28 (1) A person who has sent an invoice or other document evidencing a claim in accordance with section 435.23, or has a claim for repayment of a loan made to a leadership contestant under section 405.5, may commence proceedings in a court of competent jurisdiction to recover any unpaid amount 2003, c. 19, s. 40 17. Subsection 435.29(1) of the Act is replaced by the following: Deemed contributions 435.29 (1) Any unpaid amount of a claim mentioned in a return referred to in subsection 435.3(1) is deemed to be a contribution to the leadership contestant made as of the day on which the expense was incurred if the claim remains unpaid in whole or in part three years after the end of the leadership contest. 2003, c. 19, s. 40 18. (1) Paragraph 435.3(2)(c) of the Act is replaced by the following: (c) a statement of unpaid claims — including loans made to the leadership contestant under section 405.5 that remain unpaid in whole or in part — that are, or may be, the subject of an application under section 435.26 or 435.27; 2003, c. 19, s. 40 (2) Paragraph 435.3(2)(d.1) of the Act is replaced by the following: (d.1) a statement of the terms and conditions of each loan made to the leadership contestant under section 405.5, including the amount of the loan, the interest rate, the lender’s name and address, the dates and amounts of repayments of principal and payments of interest, the unpaid principal remaining at the end of each calendar year and, if there is a guarantor, the guarantor’s name and address and the amount guaranteed; 2003, c. 19, s. 40 (3) Subsection 435.3(5) of the Act is replaced by the following: Report (4.1) If there is any amendment to the information in a statement made under paragraph (2)(d.1) — including the giving of a guarantee or suretyship in respect of the loan — after the leadership campaign return is provided, then the leadership contestant’s financial agent shall without delay provide the Chief Electoral Officer with a report on the amendment in the prescribed form. Publication (5) The Chief Electoral Officer shall publish the information in a statement made under paragraph (2)(d.1) and any report provided under subsection (4.1) as soon as practicable after receiving the information or report, as the case may be. The publication shall be in the manner that he or she considers appropriate. 19. Subsection 438(2) of the Act is replaced by the following: Prohibition — accepting contributions, borrowing (2) No person, other than an official agent of a candidate, shall accept contributions to the candidate’s electoral campaign or borrow money on the candidate’s behalf under section 405.5. 20. (1) Section 445 of the Act is amended by adding the following after subsection (1): Payment — loans (1.1) A loan made to a candidate under section 405.5 must be repaid within three years after polling day. (2) The portion of subsection 445(2) of the Act before paragraph (a) is replaced by the following: Exceptions (2) The requirement to pay within the period set out in subsection (1) or (1.1) does not apply to a claim or loan in respect of which 21. Subsection 447(1) of the Act is replaced by the following: Irregular claims or payments — Chief Electoral Officer 447. (1) On the written application of a person with a claim to be paid for a candidate’s electoral campaign expense or to be paid for a loan made to the candidate under section 405.5, or on the written application of the candidate’s official agent or the candidate in relation to such a claim, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the payment, through the candidate’s official agent, of the amount claimed if (a) in the case of an expense, the invoice or other document evidencing the claim was not sent in accordance with section 444 or the payment was not made in the four-month period referred to in subsection 445(1); and (b) in the case of a loan, the repayment of the loan was not made in the three-year period referred to in subsection 445(1.1). 22. Section 448 of the Act is renumbered as subsection 448(1) and is amended by adding the following: Irregular claims and payments — judge (2) On the application of a person with a claim to be paid for a loan made to a candidate under section 405.5 or on the application of the candidate’s official agent or the candidate, as the case may be, a judge who is competent to conduct a recount may, on being satisfied that there are reasonable grounds for so doing, by order authorize the payment, through the candidate’s official agent, of the amount claimed if (a) the applicant establishes that an authorization under subsection 447(1) has been refused and that the payment has not been made in the three-year period referred to in subsection 445(1.1); or (b) the amount claimed has not been paid in accordance with an authorization obtained under subsection 447(1) and the applicant establishes their inability to comply with the authorization for reasons beyond their control. The applicant shall notify the Chief Electoral Officer that the application has been made. 23. Subsection 449(1) of the Act is replaced by the following: Proceedings to recover payment 449. (1) A person who has sent an invoice or other document evidencing a claim in accordance with section 444, or has a claim for repayment of a loan made to a candidate under section 405.5, may commence proceedings in a court of competent jurisdiction to recover any unpaid amount (a) at any time, if the candidate or his or her official agent refuses to pay that amount or disputes that it is payable; or (b) after the end of the period mentioned in subsection 445(1) or (1.1) or any extension of that period authorized by subsection 447(1) or section 448, in any other case. 2003, c. 19, s. 43 24. Subsection 450(1) of the Act is replaced by the following: Deemed contributions 450. (1) Any unpaid amount of a claim mentioned in a return referred to in subsection 451(1) is deemed to be a contribution to the candidate made as of the day on which the expense was incurred or the loan was made, as the case may be, if the claim remains unpaid in whole or in part (a) 18 months after polling day for the election to which the return relates, in the case of a claim to be paid for a candidate’s electoral campaign expense; or (b) three years after that polling day, in the case of a claim for a loan made to the candidate under section 405.5. 25. (1) Paragraph 451(2)(e) of the Act is replaced by the following: (e) a statement of unpaid claims — including loans made to the candidate under section 405.5 that remain unpaid in whole or in part — that are, or may be, the subject of an application under section 447 or 448; (e.1) a statement of the terms and conditions of each loan made to the candidate under section 405.5, including the amount of the loan, the interest rate, the lender’s name and address, the dates and amounts of repayments of principal and payments of interest, the unpaid principal remaining at the end of each calendar year and, if there is a guarantor, the guarantor’s name and address and the amount guaranteed; (2) Subsection 451(3) of the Act is replaced by the following: Report (2.3) If there is any amendment to the information in a statement made under paragraph (2)(e.1) — including the giving of a guarantee or suretyship in respect of the loan — after the electoral campaign return is provided, then the candidate’s official agent shall without delay provide the Chief Electoral Officer with a report on the amendment in the prescribed form. Publication (3) The Chief Electoral Officer shall publish the information in a statement made under paragraph (2)(e.1) and any report provided under subsection (2.3) as soon as practicable after receiving the information or report, as the case may be. The publication shall be in the manner that he or she considers appropriate. 2003, c. 19, s. 57 26. Subsection 478.13(1) of the Act is replaced by the following: Prohibition — accepting contributions, borrowing 478.13 (1) No person, other than the financial agent of a nomination contestant, shall accept contributions to the contestant’s nomination campaign or borrow money on the contestant’s behalf under section 405.5. 2003, c. 19, s. 57 27. Subsection 478.17(1) of the Act is replaced by the following: Payment within four months 478.17 (1) A claim for nomination campaign expenses evidenced by an invoice or other document that has been sent in accordance with section 478.16, as well as a claim for repayment of a loan made to the nomination contestant under section 405.5, must be paid within four months after the selection date or, in the case referred to in subsection 478.23(7), the polling day. 2003, c. 19, s. 57 28. Subsection 478.19(1) of the Act is replaced by the following: Irregular claims or payments — Chief Electoral Officer 478.19 (1) On the written application of a person with a claim to be paid for a nomination campaign expense in relation to a nomination contestant or to be paid for a loan made to the contestant under section 405.5, or on the written application of the contestant’s financial agent or the contestant in relation to such a claim, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the payment, through the contestant’s financial agent, of the amount claimed if (a) in the case of an expense, the invoice or other document evidencing the claim was not sent in accordance with section 478.16 or the payment was not made in the four-month period referred to in subsection 478.17(1); and (b) in the case of a loan, the repayment of the loan was not made in the four-month period referred to in subsection 478.17(1). 29. Section 478.2 of the Act is renumbered as subsection 478.2(1) and is amended by adding the following: Irregular claims and payments — judge (2) On the application of a person with a claim to be paid for a loan made to a nomination contestant under section 405.5 or on the application of the contestant’s financial agent or the contestant, as the case may be, a judge who is competent to conduct a recount may, on being satisfied that there are reasonable grounds for so doing, by order authorize the payment, through the contestant’s financial agent, of the amount claimed if (a) the applicant establishes that an authorization under subsection 478.19(1) has been refused and that the payment has not been made in the four-month period referred to in subsection 478.17(1); or (b) the amount claimed has not been paid in accordance with an authorization obtained under subsection 478.19(1) and the applicant establishes their inability to comply with the authorization for reasons beyond their control. The applicant shall notify the Chief Electoral Officer that the application has been made. 2003, c. 19, s. 57 30. The portion of subsection 478.21(1) of the Act before paragraph (a) is replaced by the following: Proceedings to recover payment 478.21 (1) A person who has sent an invoice or other document evidencing a claim in accordance with section 478.16, or has a claim for repayment of a loan made to a nomination contestant under section 405.5, may commence proceedings in a court of competent jurisdiction to recover any unpaid amount 2003, c. 19, s. 57 31. Subsection 478.22(1) of the Act is replaced by the following: Deemed contributions 478.22 (1) Any unpaid amount of a claim mentioned in a return referred to in subsection 478.23(1) is deemed to be a contribution to the nomination contestant made as of the day on which the expense was incurred or the loan was made, as the case may be, if the claim remains unpaid in whole or in part (a) 18 months after the selection date — or, in the case referred to in subsection 478.23(7), after the polling day — in the case of a claim to be paid for a nomination contestant’s nomination campaign expense; or (b) three years after the selection date — or, in the case referred to in subsection 478.23(7), after the polling day — in the case of a claim for a loan made to the nomination contestant under section 405.5. 2003, c. 19, s. 57 32. (1) Paragraph 478.23(2)(c) of the Act is replaced by the following: (c) a statement of unpaid claims — including loans made to the nomination contestant under section 405.5 that remain unpaid in whole or in part — that are, or may be, the subject of an application under section 478.19 or 478.2; (c.1) a statement of the terms and conditions of each loan made to the nomination contestant under section 405.5, including the amount of the loan, the interest rate, the lender’s name and address, the dates and amounts of repayments of principal and payments of interest, the unpaid principal remaining at the end of each calendar year and, if there is a guarantor, the guarantor’s name and address and the amount guaranteed; 2003, c. 19, s. 57 (2) Subsection 478.23(5) of the Act is replaced by the following: Report (4.1) If there is any amendment to the information in a statement made under paragraph (2)(c.1) — including the giving of a guarantee or suretyship in respect of the loan — after the nomination campaign return is provided, then the nomination contestant’s financial agent shall without delay provide the Chief Electoral Officer with a report on the amendment in the prescribed form. Publication (5) The Chief Electoral Officer shall publish the information in a statement made under paragraph (2)(c.1) and any report provided under subsection (4.1) as soon as practicable after receiving the information or report, as the case may be. The publication shall be in the manner that he or she considers appropriate. 2003, c. 19, s. 58(2) 33. (1) Paragraph 497(1)(h.09) of the Act is replaced by the following: (h.09) being the financial agent of a registered association, contravenes subsection 403.35(1), (2), (2.1) or (4) (failure to provide financial transactions return or related documents); (2) Subsection 497(1) of the Act is amended by adding the following after paragraph (i.7): (i.8) being a person or entity, contravenes subsection 405.5(1) or (2) (making a loan, guaranteeing a loan or borrowing money); (3) Paragraph 497(1)(m) of the Act is replaced by the following: (m) being a chief agent, contravenes subsection 424(1), (2), (2.1) or (4) (failure to provide financial transactions return or related documents); 2003, c. 19, s. 58(5) (4) Paragraph 497(1)(q.1) of the Act is replaced by the following: (q.1) being the financial agent of a leadership contestant, contravenes subsection 435.3(1), (2), (4.1) or (6) (failure to provide leadership campaign return or related documents); 2003, c. 19, s. 58(6) (5) Paragraphs 497(1)(t) and (u) of the Act are replaced by the following: (t) being an official agent, contravenes subsection 445(1) or (1.1) (failure to pay recoverable claim or loan in timely manner); (u) being an official agent, contravenes subsection 451(1), (2), (2.3) or (4) (failure to provide electoral campaign return or related documents); 2003, c. 19, s. 58(8) (6) Paragraph 497(1)(z.28) of the Act is replaced by the following: (z.28) being the financial agent of a nomination contestant, contravenes subsection 478.23(1), (2), (4.1) or (6) (failure to provide nomination campaign return or related documents); 2003, c. 19, s. 58(11) (7) Paragraph 497(3)(f.07) of the Act is replaced by the following: (f.07) being the financial agent of a registered association, wilfully contravenes subsection 403.35(1), (2), (2.1) or (4) (failure to provide financial transactions return or related documents); (8) Subsection 497(3) of the Act is amended by adding the following after paragraph (f.19): (f.2) being a person or entity, wilfully contravenes subsection 405.5(1) or (2) (making a loan, guaranteeing a loan or borrowing money); (9) Paragraph 497(3)(i) of the Act is replaced by the following: (i) being a chief agent, wilfully contravenes subsection 424(1), (2), (2.1) or (4) (failure to provide financial transactions return or related documents); 2003, c. 19, s. 58(13) (10) Paragraph 497(3)(m.1) of the Act is replaced by the following: (m.1) being the financial agent of a leadership contestant, wilfully contravenes subsection 435.3(1), (2), (4.1) or (6) (failure to provide leadership campaign return or related documents); 2003, c. 19, s. 58(15) (11) Paragraph 497(3)(r) of the Act is replaced by the following: (r) being an official agent, wilfully contravenes subsection 451(1), (2), (2.3) or (4) (failure to provide electoral campaign return or related documents); 2003, c. 19, s. 58(16) (12) Paragraph 497(3)(z.06) of the Act is replaced by the following: (z.06) being the financial agent of a nomination contestant, wilfully contravenes subsection 478.23(1), (2), (4.1) or (6) (failure to provide nomination campaign return or related documents); TRANSITIONAL PROVISION Prior loans 34. Loans made before the coming into force of this Act continue to be subject to the Canada Elections Act as it read immediately before the coming into force of this Act. COMING INTO FORCE Coming into force 35. This Act comes into force six months after the day on which it is assented to unless, before then, the Chief Electoral Officer publishes a notice in the Canada Gazette that the necessary preparations for the bringing into operation of this Act have been made and that this Act may come into force accordingly, in which case it comes into force on the day on which the notice is published. Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada Explanatory Notes Canada Elections Act Clause 2: Existing text of subsection 403.28(3): (3) No person, other than an electoral district agent of a registered association shall accept contributions to the registered association. Clause 3: Relevant portion of subsection 403.31(1): 403.31 (1) On the written application of a claimant with a claim to be paid for an expense of a registered association or of an electoral district agent, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the electoral district agent of the registered association to pay the amount claimed if ... (b) the payment was not made in accordance with section 403.3. Clause 4: Existing text of subsection 403.34(1): 403.34 (1) An unpaid claim mentioned in a return referred to in subsection 403.35(1) that, on the day that is 18 months after the end of the fiscal period to which the return relates, remains unpaid, in whole or in part, is deemed to be a contribution of the unpaid amount to the registered association made as of the day on which the expense was incurred. Clause 5: (1) and (2) Relevant portion of subsection 403.35(2): (2) A financial transactions return must set out ... (e) a statement of the registered association’s assets and liabilities and any surplus or deficit in accordance with generally accepted accounting principles, including a statement of ... (ii) unpaid claims that are, or may be, the subject of an application referred to in subsection 403.31(1) or section 403.32; ... (i) a statement of loans or security received by the registered association, including any conditions on them; (i.1) a statement that provides full disclosure of financial loans for the purposes of the campaign, including interest rates, repayment schedules and the name of the lender; and (3) Existing text of subsection 403.35(3): (3) For the purpose of subsection (2), other than paragraph (2)(j), a contribution includes a loan. Clause 6: (1) and (2) Relevant portion of subsection 405(1): 405. (1) No individual shall make contributions that exceed ... (c) $1,000 in total to the leadership contestants in a particular leadership contest. (3) Existing text of subsection 405(5): (5) For the purposes of this Act, contributions made to a leadership contestant within 18 months after a leadership contest are deemed to be contributions for that contest. Clause 7: New. Clause 8: Existing text of subsection 416(3): (3) No person or entity, other than a registered agent of a registered party, shall accept contributions to the registered party. Clause 9: Relevant portion of subsection 419(1): 419. (1) On the written application of a claimant with a claim to be paid for an expense of a registered party or registered agent, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the registered agent of the registered party to pay the amount claimed if ... (b) the payment was not made in accordance with section 418. Clause 10: Existing text of subsection 423.1(1): 423.1 (1) An unpaid claim mentioned in the financial transactions return referred to in subsection 424(1) or in an election expenses return referred to in subsection 429(1) that remains unpaid in whole or in part on the day that is 18 months after the end of the fiscal period to which the return relates or in which the polling day fell, as the case may be, is deemed to be a contribution to the registered party of the unpaid amount on the day on which the expense was incurred. Clause 11: (1) and (2) Relevant portion of subsection 424(2): (2) A financial transactions return must set out ... (f) a statement of the registered party’s assets and liabilities and any surplus or deficit in accordance with generally accepted accounting principles, including a statement of ... (ii) unpaid claims that are, or may be, the subject of an application referred to in subsection 419(1) or section 420; ... (j) a statement of loans or security received by the registered party, including any conditions on them; and (3) Existing text of subsection 424(3): (3) For the purpose of subsection (2), other than paragraph (2)(k), a contribution includes a loan. Clause 12: Existing text of subsection 435.22(1): 435.22 (1) No person, other than a leadership campaign agent of a leadership contestant, shall accept contributions to the contestant’s leadership campaign. Clause 13: (1) Existing text of subsection 435.24(1): 435.24 (1) A claim for leadership campaign expenses that has been sent in accordance with section 435.23 must be paid within 18 months after the end of the leadership contest. (2) Relevant portion of subsection 435.24(2): (2) The requirement to pay a claim within 18 months does not apply to a claim in respect of which Clause 14: Existing text of subsection 435.26(1): 435.26 (1) On the written application of a leadership contestant, of the contestant’s financial agent or of a person with a claim to be paid for a leadership campaign expense in relation to a leadership contestant, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the payment, through the contestant’s financial agent, of the amount claimed if (a) the invoice or other document evidencing the claim was not sent in accordance with section 435.23; or (b) the payment was not made in accordance with subsection 435.24(1). Clause 15: (1) Relevant portion of section 435.27: 435.27 On the application of a person with a claim to be paid for a leadership campaign expense in relation to a leadership contestant or on the application of the contestant’s financial agent or the contestant, as the case may be, a judge who is competent to conduct a recount may, on being satisfied that there are reasonable grounds for so doing, by order authorize the payment, through the contestant’s financial agent, of the amount claimed if (a) the applicant establishes that an authorization under subsection 435.26(1) has been refused and that the invoice or other document evidencing the claim was not sent in accordance with section 435.23 or the payment has not been made in the four-month period referred to in subsection 435.24(1); or (2) New. Clause 16: Relevant portion of subsection 435.28(1): 435.28 (1) A person who has sent a claim in accordance with section 435.23 may commence proceedings in a court of competent jurisdiction to recover any unpaid amount Clause 17: Existing text of subsection 435.29(1): 435.29 (1) An unpaid claim mentioned in a return referred to in subsection 435.3(1) that, on the day that is 18 months after the end of the leadership contest, remains unpaid, in whole or in part, is deemed to be a contribution of the unpaid amount to the leadership contestant made as of the day on which the expense was incurred. Clause 18: (1) and (2) Relevant portion of subsection 435.3(2): (2) The leadership campaign return shall include the following information in respect of the leadership contestant: ... (c) a statement of unpaid claims that are, or may be, the subject of an application under section 435.26 or 435.27; ... (d.1) disclosure of all financial loans for the purposes of the campaign, including interest rates, repayment schedules and the name of the lender; (3) Existing text of subsection 435.3(5): (5) For the purpose of subsection (2), other than paragraph (2)(h), a contribution includes a loan. Clause 19: Existing text of subsection 438(2): (2) No person, other than an official agent of a candidate, shall accept contributions to the candidate’s electoral campaign. Clause 20: (1) New. (2) Relevant portion of subsection 445(2): (2) The requirement to pay a claim within four months does not apply to a claim in respect of which Clause 21: Existing text of subsection 447(1): 447. (1) On the written application of a person with a claim to be paid for a candidate’s electoral campaign expense or of the candidate’s official agent or the candidate in relation to such a claim, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the payment, through the candidate’s official agent, of the amount claimed if (a) the invoice or other document evidencing the claim was not sent in accordance with section 444; or (b) the payment was not made in accordance with subsection 445(1). Clause 22: New. Clause 23: Existing text of subsection 449(1): 449. (1) A person who has sent a claim in accordance with section 444 may commence proceedings in a court of competent jurisdiction to recover any unpaid amount (a) at any time, if the candidate or his or her official agent refuses to pay that amount or disputes that it is payable; (b) after the end of the period mentioned in subsection 445(1) or any extension of that period authorized by subsection 447(1) or section 448, in any other case. Clause 24: Existing text of subsection 450(1): 450. (1) An unpaid claim mentioned in a return referred to in subsection 451(1) that, on the day that is 18 months after polling day for the election to which the return relates, remains unpaid, in whole or in part, is deemed to be a contribution of the unpaid amount to the candidate made as of the day on which the expense was incurred. Clause 25: (1) Relevant portion of subsection 451(2): (2) The electoral campaign return shall include the following in respect of the candidate: ... (e) a statement of unpaid claims that are, or may be, the subject of an application under section 447 or 448; (2) Existing text of subsection 451(3): (3) For the purpose of subsection (2), other than paragraph (2)(k), a contribution includes a loan. Clause 26: Existing text of subsection 478.13(1): 478.13 (1) No person, other than the financial agent of a nomination contestant, shall accept contributions to the contestant’s nomination campaign. Clause 27: Existing text of subsection 478.17(1): 478.17 (1) A claim for nomination campaign expenses that has been sent in accordance with section 478.16 must be paid within four months after the selection date, or in the case referred to in subsection 478.23(7), the polling day. Clause 28: Existing text of subsection 478.19(1): 478.19 (1) On the written application of a person with a claim to be paid for a nomination campaign expense in relation to a nomination contestant or of the contestant’s financial agent or the contestant in relation to such a claim, the Chief Electoral Officer may, on being satisfied that there are reasonable grounds for so doing, in writing authorize the payment, through the contestant’s financial agent, of the amount claimed if (a) the invoice or other document evidencing the claim was not sent in accordance with section 478.16; or (b) the payment was not made in accordance with subsection 478.17(1). Clause 29: New. Clause 30: Relevant portion of subsection 478.21(1): 478.21 (1) A person who has sent a claim in accordance with section 478.16 may commence proceedings in a court of competent jurisdiction to recover any unpaid amount Clause 31: Existing text of subsection 478.22(1): 478.22 (1) An unpaid claim mentioned in a return referred to in subsection 478.23(1) that remains unpaid, in whole or in part, on the day that is 18 months after the selection date — or in the case referred to in subsection 478.23(7), after the polling day — is deemed to be a contribution of the unpaid amount to the nomination contestant made as of the day on which the expense was incurred. Clause 32: (1) Relevant portion of subsection 478.23(2): (2) The nomination campaign return shall include the following in respect of the nomination contestant: ... (c) a statement of unpaid claims that are, or may be, the subject of an application under section 478.19 or 478.2; (2) Existing text of subsection 478.23(5): (5) For the purpose of subsection (2), other than paragraph (2)(i), a contribution includes a loan. Clause 33: (1) to (6) Relevant portion of subsection 497(1): 497. (1) Every person is guilty of an offence who ... (h.09) being the financial agent of a registered association, contravenes subsection 403.35(1), (2) or (4) (failure to provide financial transactions return or related documents); ... (m) being a chief agent, contravenes section 424 (failure to provide financial transactions return or related documents); ... (q.1) being the financial agent of a leadership contestant, contravenes subsection 435.3(1), (2) or (6) (failure to provide leadership campaign return or related documents); ... (t) being an official agent, contravenes subsection 445(1) (failure to pay recoverable claim in timely manner); (u) being an official agent, contravenes subsection 451(1), (2), (3) or (4) (failure to provide electoral campaign return or related documents); ... (z.28) being the financial agent of a nomination contestant, contravenes subsection 478.23(1), (2) or (6) (failure to provide nomination campaign return or related documents); (7) to (12) Relevant portion of subsection 497(3): (3) Every person is guilty of an offence who ... (f.07) being the financial agent of a registered association, wilfully contravenes subsection 403.35(1), (2) or (4) (failure to provide financial transactions return or related documents); ... (i) being a chief agent, wilfully contravenes section 424 (failure to provide financial transactions return or related documents); ... (m.1) being the financial agent of a leadership contestant, wilfully contravenes subsection 435.3(1), (2) or (6) (failure to provide leadership campaign return or related documents); ... (r) being an official agent, wilfully contravenes subsection 451(1), (2), (3) or (4) (failure to provide electoral campaign return or related documents); ... (z.06) being the financial agent of a nomination contestant, wilfully contravenes subsection 478.23(1), (2) or (6) (failure to provide nomination campaign return or related documents);