Bill 96 2015

An Act to amend the Election Finances Act with respect to third party election advertising

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  (1)  Section 37.1 of the Election Finances Act is amended by striking out "37.13" in the portion before the definition of "election period" and substituting "37.14".

   (2)  Section 37.1 of the Act is amended by adding the following definition:

"issue advertising" means advertising in any broadcast, print, electronic or other medium, including by telephone, internet or text messaging, if the purpose of the advertising is to take a position on any issue within the legislative competence of the Legislative Assembly of Ontario; ("publicité d'opinion")

   (3)  The definition of "third party election advertising" in section 37.1 of the Act is amended by adding "or issue advertising" after "political advertising".

   2.  The following provisions of the Act are amended by striking out "37.13" wherever that expression appears and substituting in each case "37.14":

    1.  Section 37.2, in the portion before paragraph 1.

    2.  Section 37.3.

    3.  Subsection 37.10 (5).

   3.  Subsection 37.5 (10) of the Act is repealed and the following substituted:

Registration ends

   (10)  The registration of a third party ceases to be valid when the election period ends or if the third party is convicted of contravening subsection 37.14 (1), (2) or (3).

Report required

   (11)  Even if the registration of a third party ceases to be valid, the third party continues to be subject to the requirement to file a third party election advertising report under subsection 37.12 (1).

Restriction on re-applying for registration

   (12)  A third party whose registration ceases to be valid because the third party has been convicted of contravening subsection 37.14 (1), (2) or (3) with respect to third party election advertising expenses incurred during an election period may not re-apply for registration under this section until after the polling day for the general election next following the end of that election period.

   4.  The Act is amended by adding the following section:

Limitation on amount of third party election advertising

   37.14  (1)  A third party shall not incur third party election advertising expenses in relation to a general election if the total amount of the expenses exceeds $150,000 multiplied by the inflation adjustment factor prescribed under subsection (4) that is in effect on the day of the issue of the writs for the election.

Same, electoral district

   (2)  Out of the amount that a third party incurs in third party election advertising expenses in relation to a general election, the third party shall not incur third party election advertising expenses in relation to a given electoral district if the total amount of the latter expenses exceeds $3,000 multiplied by the inflation adjustment factor prescribed under subsection (4) that is in effect on the day of the issue of the writ for the election in the given electoral district.

Same, by-election

   (3)  A third party shall not incur third party election advertising expenses in relation to a by-election if the total amount of the expenses exceeds $3,000 multiplied by the inflation adjustment factor prescribed under subsection (4) that is in effect on the day of the issue of the writ for the by-election.

Inflation adjustment factor

   (4)  The Lieutenant Governor in Council may make regulations prescribing the inflation adjustment factor for the purposes of subsections (1), (2) and (3).

No combination to exceed limit

   (5)  A third party shall not circumvent, or attempt to circumvent, a limit set out in this section in any manner, including by splitting itself into two or more third parties for the purpose of circumventing the limit or acting in collusion with another third party so that their combined third party election advertising expenses exceed the limit.

   5.  (1)  Subsection 38 (1) of the Act is amended by striking out the portion before clause (a) and substituting the following:

Limitation on campaign expenses

   (1)  The expenses of a registered party that are described in subsection (1.1) shall not exceed the amount determined by multiplying the applicable amount by,

.     .     .     .     .

   (2)  Section 38 of the Act is amended by adding the following subsection:

Total expenses

   (1.1)  The expenses of a registered party that are mentioned in subsection (1) are the total of,

  (a)  the total campaign expenses that the party and any person, corporation, trade union, unincorporated association or organization acting on behalf of the party incurs during a campaign period; and

  (b)  the total expenses that a person, corporation, trade union, unincorporated association or organization acting with the express or implied knowledge and consent of the party incurs during a campaign period in relation to producing an election advertisement in support of the party or acquiring the means of transmitting such an election advertisement to the public.

   (3)  Subsection 38 (3) of the Act is repealed and the following substituted:

Limitation: candidate, constituency association

   (3)  The expenses of a registered candidate and a constituency association endorsing the candidate that are described in subsection (3.0.1) shall not exceed the amount determined by multiplying the applicable amount by the number of electors in the candidate's electoral district.

Total expenses

   (3.0.1)  The expenses of a registered candidate and a constituency association endorsing the candidate that are mentioned in subsection (3) are the total of,

  (a)  the total campaign expenses that the candidate, the constituency association and any person, corporation, trade union, unincorporated association or organization acting on behalf of the candidate or constituency association incurs during a campaign period; and

  (b)  the total expenses that a person, corporation, trade union, unincorporated association or organization acting with the express or implied knowledge and consent of the candidate or constituency association incurs during a campaign period in relation to producing an election advertisement in support of the candidate or acquiring the means of transmitting such an election advertisement to the public.

   (4)  Subsection 38 (4) of the Act is repealed and the following substituted:

Reduction of subsidy

   (4)  If the expenses of a registered party that are described in subsection (1.1) exceed the amount determined under subsection (1) or if the expenses of a registered candidate and a constituency association endorsing the candidate that are described in subsection (3.0.1) exceed the amount determined under subsection (3), the amount of the subsidy, if any, payable to the political party's chief financial officer under subsection 44 (6) or to the candidate's chief financial officer under subsection 44 (1), as the case may be, shall be reduced by an amount equal to such excess.

   6.  Subsection 42 (1) of the Act is amended by striking out "and" at the end of clause (b) and by adding the following clause:

(b.1) of all expenses that a person, corporation, trade union, unincorporated association or organization acting with the express or implied knowledge and consent of the party, constituency association or candidate incurred during the campaign period and that related to producing an election advertisement in support of the party, constituency association or candidate or acquiring the means of transmitting such an election advertisement to the public; and

   7.  The Act is amended by adding the following section:

Third party election advertising expenses

   46.2  (1)  In this section,

"third party election advertising expense" has the same meaning as in section 37.1.

Offence

   (2)  A third party that contravenes subsection 37.14 (1), (2) or (3) is guilty of an offence and on conviction is liable to a fine equal to five times the amount of the third party election advertising expenses that it has incurred in relation to the election to which the applicable subsection relates.

Commencement

   8.  This Act comes into force on the day it receives Royal Assent.

Short title

   9.  The short title of this Act is the Special Interest Groups Election Advertising Transparency Act, 2015.

 

EXPLANATORY NOTE

The Bill amends the Election Finances Act to expand the definition of third party election advertising to include issue advertising, which is defined as advertising with the purpose of taking a position on any issue within the legislative competence of the Legislative Assembly of Ontario. The Bill imposes the following limits on third party election advertising expenses: $150,000 in relation to a general election and $3,000 in relation to a given electoral district in a general election or a by-election. Those amounts are multiplied by an inflation adjustment factor. It is an offence to contravene the limits. The penalty for the offence is a fine equal to five times the full amount of the expenses incurred, not just the amount in excess of the applicable limit. If a third party is convicted of an offence of exceeding the limits applicable to an election period, the registration of the third party with the Chief Electoral Officer ceases to be valid and the third party is prohibited from re-applying for registration until after the polling day for the general election next following the end of that election period.

At present, section 38 of the Act limits the campaign expenses that a registered political party, a registered candidate, a constituency association endorsing the candidate or a person or body acting on their behalf is allowed to incur during a campaign period and section 42 requires each political party to file a financial statement of those expenses with the Chief Electoral Officer. The Bill expands those expenses to cover expenses that a person or body acting with the express or implied knowledge and consent of the party, candidate or constituency association incurs during a campaign period in relation to producing an election advertisement in support of the party or acquiring the means of transmitting such an election advertisement to the public.