Electoral Financing for Candidates and Third Parties. Supervisor of Political Financing
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1 Electoral Financing for Candidates and Third Parties Supervisor of Political Financing 2014
2 Training outcomes 1. Important documents 2. Scope of Political Process Financing Act 3. Principles of political financing 4. Roles of campaign team members 5. Electoral activities: phases and rules 6. Election advertising by third parties 2
3 1. Important documents Political Process Financing Act (PPFA) Electoral Financing Overview (P ) Electoral Advertising Information and Guidelines (P ) Guidelines Issued by the Supervisor of Political Financing (P ) Electoral Financial Return for Candidate (P ) Instructions to Official Agent for Completing the Electoral Financial Return for Candidate (P ) 3
4 2. Scope of the Political Process Financing Act PPFA governs financial activities of: Registered political parties Registered district associations Nomination contenders Candidates Official candidates of registered political parties Registered independent candidates Third parties 4
5 3. Principles of political financing for elections Limits on political contributions Limits on pre-writ advertising Limits on election expenses Public funding to reimburse election expenses Public disclosure of electoral finances 5
6 3. Principles (Cont.) Limits on political contributions No difference in contribution rules and limits in an election year or election period Rules establish: Definition of contribution Recipient and contributor eligibility Acceptable means of raising funds Annual limit of $6,000 per political party and district associations Public disclosure of contributor if total > $100 Receipts issued by political party N.B. income tax credit up to $500 6
7 3. Principles (Cont.) Limits on pre-writ advertising Subject to $2,000 annual advertising limit of candidate s registered district association (RDA) $35,000 annual advertising limit for registered political parties 7
8 3. Principles (Cont.) Limits on election expenses Definition of election expenses: PPFA, s.67 Election expenses means all expenditures incurred during an election period for the purpose of promoting or opposing directly or indirectly, the election of a candidate or that of the candidates of a party, including every person who subsequently becomes or who is likely to become a candidate, and includes all expenditures incurred before an election period for literature, objects or materials of an advertising nature used during the election period for such purposes Includes contributions of property and services to a campaign 8
9 3. Principles (Cont.) Limits on election expenses (cont.) Calculation Number of registered electors in electoral district multiplied by inflation-adjusted rate per elector 2014 Estimated Election Expenses Limit 11,269 electors X $3.30/elector = $37,
10 3. Principles (Cont.) Public funding to reimburse election expenses Criteria to receive reimbursement of election expenses Candidate declared elected Candidates receiving 15% of vote in their respective electoral districts 10
11 3. Principles (Cont.) Public funding to reimburse election expenses (cont.) Calculation of reimbursement Candidate s election expenses (less contributed property and services) up to a maximum Maximum = number of registered electors in electoral district multiplied by defined rate per elector 2014 estimated maximum reimbursement 11,269 electors X $1.31/elector = $14,
12 3. Principles (Cont.) Public disclosure of electoral finances Electoral Financial Return for Candidate submitted by official agent Examined by Supervisor Available for public examination 12
13 4. Roles of campaign team members 4.1 Candidate 4.2 Official representative of registered district association 4.3 Official agent of candidate 4.4 Campaign manager 4.5 Registered independent candidate 13
14 4. Campaign team roles (Cont.) 4.1 Candidate Does not manage electoral finances May be authorized to collect contributions or incur election expenses, but not recommended Nomination paper accompanied by $100 deposit Refunded upon filing Electoral Financial Return 14
15 4. Campaign team roles (Cont.) 4.2 Official representative of registered district association (RDA) Arrange financing for campaign Contributions and fund-raising events Loans and guarantors Consider reimbursement of election expenses Transfer funds to official agent Authorize non-election expenditures Pre-writ advertising Joint non-election and electoral items Ensure compliance with legislation See Electoral Financing Overview 15
16 4. Campaign team roles (Cont.) 4.3 Official agent of candidate Appointment By chief agent of Party; confirmed by candidate Manage spending of election funds Prepare or approve budget within spending limit Authorize and identify all election expenses Open bank account If offered, make use of Party s simplified method Submit Electoral Financial Return for Candidate Collect reimbursement, pay bills, & close account Ensure compliance with leg n See Electoral Financing Overview 16
17 4. Campaign team roles (Cont.) 4.4 Campaign manager Role not specified in legislation Must understand and respect roles and responsibilities of official representative and official agent and collaborate with them 17
18 4. Campaign team roles (Cont.) 4.5 Registered independent candidate Must register with Chief Electoral Officer prior to public presentation as candidate Appoint official representative Same responsibilities as for RDAs Issue receipts acknowledging contributions Appoint official agent Same responsibilities as for other candidates Generally, same person fills both roles Same rules as other candidates 18
19 5. Electoral activities: phases and rules 5.1 Pre-nomination 5.2 Pre-writ 5.3 Election period 5.4 Post-election A handy summary: Electoral Advertising Information and Guidelines, Appendix B 19
20 5.1 Pre-nomination activities Nomination contenders No limits on donations No limits on expenses Report any surplus to Supervisor Advertising should focus on nomination Applies equally to incumbent MLAs If nominating convention held during election period, successful contender s costs > $1000 deemed to be election expenses 20
21 5.2 Pre-writ activities Nominated candidate Nominated candidate and RDA become entwined following nomination Candidate may be authorized by official representative to: Solicit contributions and incur non-election expenditures: not recommended Incur his or her own reasonable travel expenses, if to be reimbursed by RDA If no expectation of reimbursement, no prior authorization needed 21
22 5.2 Pre-writ activities (Cont.) Official representative of RDA Authorize all solicitation of contributions and organizing of fund-raising events Authorize all non-election expenditures Pre-writ advertising promoting candidate No identification disclosures nor tagline required Subject to $2,000 annual advertising limit of RDA Other election-related costs: no limits Nominating convention Travel expenses of candidate Candidate's website Campaign office set-up 22
23 5.2 Pre-writ activities (Cont.) Official agent of candidate Prepare or approve campaign budget Based on estimated election expenses limit and funds available from RDA Open electoral bank account Party may offer simplified method Authorize election expenses Order advertising to be used during election Collaborate with official representative on joint pre-writ and election-period items Signage, hand-outs, door-knockers, etc. Candidate s website Campaign office rent and set-up costs 23
24 5.2 Pre-writ activities (Cont.) Official agent of candidate (cont.) Candidate s website Generally, not considered to be advertising Not subject to $2,000 pre-writ advertising limit Purchased advertisements are considered to be advertising; e.g. Web banners, Facebook, Google, etc. Subject to $2,000 annual advertising limit No disclosure requirements until election period begins 24
25 5.2 Pre-writ activities (Cont.) Official agent of candidate (cont.) MLA s communications with constituents* Non-partisan in nature MLA s Constituency Office* May never be used for partisan political activity May not be used for campaign office Must be closed during election period *Orientation Manual 2010, Legislative Administration Committee, Legislative Assembly of New Brunswick 25
26 5.3 Election-period activities ENB publishes election expenses limits Official representative supplies funding Official agent manages election expenses Identification required on advertising Advertisements used pre-writ and during election period Signs used in previous elections Vandalized, stolen, or destroyed signs Placement of signs Advertising prohibitions 26
27 5.3.1 ENB publishes election expenses limits Spending limits based on Preliminary List of Electors Prepared upon issuing of writs of election Historical modification of election period for political financing purposes From issue of writs of election until close of polls on Election Day 27
28 5.3.2 Official representative of RDA supplies funding Transfer funds to official agent to finance election campaign Identify and determine retail value of contributions of property and services to campaign ( donations in kind ) Advise official agent of joint-use items to be reimbursed to RDA as election expenses Direct costs of fund-raising events held during election period Office rent prorated, phones, etc. 28
29 5.3.3 Official agent manages election expenses Authorizes all election expenses May delegate authorization to incur Expenses incurred by candidate Own lodging, food, and transportation If reimbursed, election expenses If not reimbursed, not election expenses $2,000 non-travel personal expenses Reimburse electoral portion of joint items Hand-outs, door-knockers, etc. Office rent, phones, etc. 29
30 5.3.3 Official agent manages election expenses (Cont.) Volunteer labour The donation by an individual of his personal services, talents or expertise, or the use of his vehicle and the product of that donation, where it is given freely and not as part of his work in the service of an employer, is not considered a contribution nor an election expense Other property and services donated in kind are election expenses $100 exemption 30
31 5.3.4 Identification disclosure in or on all advertisements PPFA, section 73 Bear the name of the candidate on whose behalf it was ordered If printed advertisements, include name and address of printer Tagline may be helpful Ordered on behalf of John Doe Similar disclosures for political parties 31
32 5.3.5 Advertisements used prewrit and during election period Must meet identification disclosure requirements during election period Official agent Reimburse official representative for cost of advertisements Signage reimbursed at full cost Door-knockers, hand-bills, brochures, etc. may be based upon quantities distributed pre-writ and election-period 32
33 5.3.6 Signs used in previous elections Previously-used signs assigned current retail value of similar, new signs Determined by official representative Official agent to reimburse RDA Include with election advertising expense 33
34 5.3.7 Vandalized, stolen, or destroyed signs Replacement costs do not constitute election expenses Official agent requests exemption from Supervisor See Electoral Advertising Information and Guidelines 34
35 5.3.8 Placement of signs Certain restrictions on highway signs Department of Transportation and Infrastructure Municipalities NB Power Bell Aliant 35
36 5.3.9 Advertising prohibitions Election Day and Sunday preceding it: the blackout period Radio and TV; newspapers and magazines; unsolicited electronic communications Facebook and Twitter permitted From any moving vehicle on Election Day Parked vehicles may bear advertising Within 30 metres of a regular or advance polling station No restriction on locating a campaign office near a returning office 36
37 5.4 Post-election activities Candidate Advise official agent of: Lodging, food, and transportation expenses for reimbursement Non-travel personal election expenses up to $2,000 Other election expenses incurred by candidate Official Representative Celebrations after close of polls Not election expenses Report all non-election expenditures in Annual Financial Return of RDA 37
38 5.4 Post-election activities (Cont.) Official Agent Reimburse candidate and RDA for election expenses Submit Electoral Financial Return to ENB Receive election expenses reimbursement from Supervisor, if eligible Pay all liabilities Disburse excess funds Close electoral bank account Submit bank statements to ENB 38
39 6. Election advertising by third parties PPFA provisions since 2010 Definition of third party a person or group other than a registered political party, a registered district association or a candidate. A group means a group of persons acting together by mutual consent for a common purpose, and includes a trade union. Examples of 2010 election advertising on following slides 39
40 2010 election advertising 40
41 2010 election advertising 41
42 2010 election advertising 42
43 2010 election advertising 43
44 2010 election advertising 44
45 6. Election advertising by third parties (Cont.) Election advertising means a message transmitted to the public by any means during a campaign period that promotes or opposes a registered political party or the election of a candidate or takes a position on an issue with which a registered political party or a candidate is associated. Unrestricted advertising outside the campaign period 45
46 6. Election advertising by third parties (Cont.) Election advertising does not include: a) An editorial, debate, speech or news b) Distribution or promotion of a book if it was planned irrespective of the election c) The transmission of a document directly by a person or a group to its members, employees or shareholders d) The transmission by an individual, on a non-commercial basis, of his or her personal political views via the Internet 46
47 6. Election advertising by third parties (Cont.) Advertising identification required For any third party who advertises during campaign period, not just those registered Including individual lawn signs Authorization and identification information Name of third party Name of person responsible for books and records and telephone number or address Taglines: see Electoral Advertising Information and Guidelines 47
48 6. Election advertising by third parties (Cont.) Third party shall register with ENB immediately after incurring election advertising expenses exceeding $500 in total May register in advance 48
49 6. Election advertising by third parties (Cont.) Election advertising contributions Eligible contributors Individuals ordinarily resident in N.B. Corporations Trade unions No limits, but not eligible for provincial income-tax credit Disclose contributions received six months prior to registration 49
50 6. Election advertising by third parties (Cont.) Chief Financial Officer appointed prior to registration Responsibilities: Ensuring compliance with legislation Accepting election advertising contributions Authorizing election advertising expenses Maintaining books and records Filing required reports with the Supervisor 50
51 6. Election advertising by third parties (Cont.) Spending limits for general election Province-wide limit 1.3% of election expenses limit of a registered political party Limit relating to a single electoral district 10% of province-wide limit 2014 estimated limits $1,043,622 political party X 1.3% = $13,567 $13,567 X 10% = $1,
52 6. Election advertising by third parties (Cont.) Spending limit for by-election Limit calculated for that electoral district for most recent general election 52
53 6. Election advertising by third parties (Cont.) No circumvention of Act No collusion with political entities Publicly-accessible registry and financial reports Serious offences Fines between $500 and $20,500 Jail terms not more than 180 days One prosecution followed 2010 election 53
54 Recap of training outcomes Gain understanding of: Important documents Scope of Political Process Financing Act Principles of political financing Roles of campaign team members Electoral activities: phases and rules Election advertising by third parties 54
55 Information and assistance Political party Chief agent, official representative, or financial officer Elections New Brunswick Nathan Phillips, CA, Assistant Supervisor of Political Financing
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