HONOURABLE SELINA ROBINSON
MINISTER OF MUNICIPAL AFFAIRS AND HOUSING

BILL 15 – 2017

LOCAL ELECTIONS CAMPAIGN
FINANCING AMENDMENT ACT, 2017

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 – Local Elections Campaign
Financing Act Amendments

SECTION 1: [Local Elections Campaign Financing Act, section 5] replaces references to election area with references to jurisdiction.

1 Section 5 (2) of the Local Elections Campaign Financing Act, S.B.C. 2014, c. 18, is amended by striking out "one election area" and substituting "one jurisdiction" and by striking out "each of the election areas" and substituting "each of the jurisdictions".

SECTION 2: [Local Elections Campaign Financing Act, section 9] is self-explanatory.

2 Section 9 (1) (c) is repealed.

SECTION 3: [Local Elections Campaign Financing Act, section 13]

3 Section 13 is amended

(a) by repealing subsection (1) (d) and (e) and substituting the following:

(d) the amount of any money provided by a candidate for use in the candidate's own campaign; ,

(b) in subsection (1) (h) by striking out "an unpaid amount" and substituting "the unpaid amount of a debt, other than a debt arising from a loan,",

(c) by adding the following subsections:

(3.1) If the unpaid amount of a debt referred to in subsection (1) (h) of this section

(a) is payable to an organization or an individual, other than an eligible individual, and

(b) becomes a campaign contribution under that subsection,

section 28 [dealing with prohibited campaign contributions] applies as if the unpaid amount of the debt were a campaign contribution made or accepted in contravention of this Act or the regulations under this Act.

(3.2) The unpaid amount of a debt referred to in subsection (1) (h) becomes a campaign contribution under that subsection in the calendar year in which the debt arises. , and

(d) in subsection (5) by adding the following paragraphs:

(b.1) non-monetary property or services provided by a candidate for use in the candidate's own campaign;

(b.2) non-monetary property or services provided by an elector organization for use in the organization's own campaign; .

SECTION 4: [Local Elections Campaign Financing Act, sections 13.01 and 13.02]

4 The following sections are added:

Campaign contributions through fundraising functions

13.01  (1) An organization or an individual, other than an eligible individual, must not pay a charge per individual for a fundraising function.

(2) If an eligible individual makes a payment of greater than $50 for one or more charges per individual for a fundraising function, the amount of the payment is a campaign contribution by the eligible individual.

(3) An individual or organization that contravenes subsection (1) commits an offence.

Campaign contributions through loans

13.02  (1) Subject to any applicable regulations, a permissible loan made to a candidate or elector organization is not a campaign contribution, but

(a) the loan must be disclosed in accordance with the requirements under Division 2 [Disclosure Requirements for Candidates, Elector Organizations and Advertising Sponsors] of Part 5 [Transparency Requirements for Local Elections and Assent Voting], and

(b) if the loan is made by an eligible individual, it must be treated as if it were a campaign contribution for the purpose of determining whether the eligible individual exceeds an applicable campaign contribution limit.

(2) Despite subsection (1), the unpaid amount of a permissible loan made by an eligible individual to a candidate or elector organization is a campaign contribution in the calendar year in which the loan is made if

(a) that part of the loan remains unpaid for 6 months after it becomes due and no legal proceedings to recover the loan have been commenced by the eligible individual, or

(b) the eligible individual forgives that part of the loan.

(3) Despite subsection (1), the unpaid amount of a permissible loan made by a savings institution to a candidate or elector organization is a campaign contribution in the calendar year in which the loan is made if the savings institution does not make commercially reasonable efforts to collect or enforce that part of the loan.

(4) In the circumstances described in subsection (3), section 28 [dealing with prohibited campaign contributions] applies as if the unpaid amount of the loan were a campaign contribution made or accepted in contravention of this Act or the regulations under this Act.

(5) For certainty, nothing in subsection (2) or (3) affects the rights of a creditor in relation to a permissible loan that becomes a campaign contribution under those subsections.

SECTION 5: [Local Elections Campaign Financing Act, section 14] is consequential to amendments made to the Act by this Bill.

5 Section 14 (6) (f) is amended by striking out "interest on a loan" and substituting "interest on a permissible loan".

SECTION 6: [Local Elections Campaign Financing Act, section 18]

6 Section 18 is amended

(a) by repealing subsection (5) (c),

(b) in subsection (5) by adding the following paragraph:

(g.1) making payments on a permissible loan; , and

(c) in subsection (6) by adding the following paragraph:

(a.1) a permissible loan; .

SECTION 7: [Local Elections Campaign Financing Act, section 20]

7 Section 20 is amended

(a) by repealing subsection (5) (b),

(b) in subsection (5) by adding the following paragraph:

(f.1) making payments on a permissible loan; , and

(c) in subsection (6) by adding the following paragraph:

(a.1) a permissible loan; .

SECTION 8: [Local Elections Campaign Financing Act, section 22]

8 Section 22 is amended by adding the following subsections:

(1.1) Without limiting subsection (1), the financial agent must record the following in relation to a permissible loan made to the candidate or elector organization, as applicable:

(a) if the loan is made by an eligible individual, the full name and residential address of the eligible individual;

(b) if the loan is made by a savings institution, the name of the savings institution;

(c) the amount of the loan;

(d) the date the loan is made;

(e) the date the loan is due;

(f) the rate of interest, if any, charged for the loan;

(g) if the loan is made by a savings institution, the prime rate of the principal banker to the government at the time the rate of interest for the loan is fixed;

(h) any other information prescribed by regulation.

(1.2) Without limiting subsection (1), if the financial agent for an elector organization or a financial agent for a candidate must comply with section 30.05 [campaign contribution limits – elector organization and endorsed candidates], the financial agent must record the following:

(a) the date the financial agent for an elector organization returned a campaign contribution to a contributor under section 30.05 (5) (a), the amount of the campaign contribution and the full name of the contributor;

(b) the date the financial agent for an elector organization paid an amount equal to the value of a campaign contribution to a contributor under section 30.05 (5) (b), the amount paid and the full name of the contributor;

(c) the date the financial agent for an elector organization paid an amount of a permissible loan to a lender under section 30.05 (5) (c), the amount of the permissible loan paid and, if the lender is an eligible individual, the full name of the lender;

(d) the date the financial agent for a candidate returned a campaign contribution to a contributor under section 30.05 (7) (a), the amount of the campaign contribution and the full name of the contributor;

(e) the date the financial agent for a candidate paid an amount equal to the value of a campaign contribution to a contributor under section 30.05 (7) (b), the amount paid and the full name of the contributor;

(f) the date the financial agent for a candidate paid an amount of a permissible loan to a lender under section 30.05 (7) (c), the amount of the permissible loan paid and, if the lender is an eligible individual, the full name of the lender;

(g) any other information prescribed by regulation.

SECTION 9: [Local Elections Campaign Financing Act, section 23] provides that a candidate who provided money to an elector organization must return the money if the elector organization does not endorse the candidate.

9 Section 23 is amended

(a) in subsection (5) by striking out "may be returned" and substituting "must be returned", and

(b) by repealing subsections (6) and (7) and substituting the following:

(7) An elector organization that contravenes subsection (5) commits an offence.

SECTION 10: [Local Elections Campaign Financing Act, section 26]

10 Section 26 is amended

(a) by adding the following subsection:

(0.1) An organization or an individual, other than an eligible individual, must not make a campaign contribution. ,

(b) in subsection (1) by striking out "An individual or organization" and substituting "An eligible individual",

(c) by repealing subsection (1) (g),

(d) by adding the following subsection:

(1.1) An eligible individual must not make campaign contributions in a calendar year that, in total, exceed an applicable campaign contribution limit. ,

(e) in subsection (2) by striking out "Except as permitted by regulation, an elector organization" and substituting "An elector organization", and

(f) by adding the following subsection:

(2.01) An individual or organization must not make a campaign contribution indirectly by providing money, non-monetary property or services to an eligible individual

(a) for the eligible individual to make as a campaign contribution, or

(b) as consideration for that eligible individual making a campaign contribution.

SECTION 11: [Local Elections Campaign Financing Act, section 27] prohibits accepting campaign contributions from anyone other than an eligible individual or that exceed an applicable campaign contribution limit.

11 Section 27 is amended by adding the following subsection:

(1.01) A financial agent or an individual authorized under subsection (1) must not accept

(a) a campaign contribution from an organization or an individual, other than an eligible individual, or

(b) campaign contributions from an eligible individual that exceed an applicable campaign contribution limit.

SECTION 12: [Local Elections Campaign Financing Act, sections 27.01 and 27.02] establishes rules for loans.

12 The following sections are added:

Restrictions on making loans for campaign use

27.01  (1) Subject to this section, an individual or organization must not make a loan to a candidate or elector organization for campaign use.

(2) A savings institution or an eligible individual must not make a loan, other than a permissible loan, to a candidate or elector organization for campaign use.

(3) An eligible individual must not make a permissible loan to a candidate or elector organization for campaign use in an amount that would bring the total value of campaign contributions and permissible loans made by the eligible individual to an amount greater than an applicable campaign contribution limit.

(4) For certainty, this section applies whether the permissible loan is made or accepted before or after the start of a campaign period.

(5) An individual or organization that contravenes this section commits an offence.

Restrictions in relation to accepting loans for campaign use

27.02  (1) A candidate or elector organization must not accept a loan, other than a permissible loan, for campaign use.

(2) A candidate or elector organization must not accept a permissible loan for campaign use from an eligible individual if the amount of the loan would bring the total value of campaign contributions and permissible loans made by the eligible individual to an amount greater than an applicable campaign contribution limit.

(3) If a candidate, elector organization or financial agent for a candidate or elector organization becomes aware that the candidate or elector organization, as applicable, has accepted a loan in contravention of subsection (1) or (2), the financial agent must, within 30 days after the candidate, elector organization or financial agent becomes aware of the contravention,

(a) return the loan to the lender, or

(b) pay to the lender an amount equal to the value of the loan.

(4) If subsection (3) applies, the financial agent for the candidate or elector organization must record the following for each loan:

(a) the circumstances in which the loan was accepted;

(b) the information required under section 22 (1.1) [recording requirements for loans];

(c) when and how the loan was dealt with in accordance with subsection (3) of this section;

(d) any other information prescribed by regulation.

(5) For certainty, this section applies whether the loan is made or accepted before or after the start of a campaign period.

(6) A financial agent, candidate or elector organization that contravenes this section commits an offence.

SECTION 13: [Local Elections Campaign Financing Act, section 29]

13 Section 29 is amended

(a) by repealing subsection (1) (c), (d) and (e) and substituting the following:

(c) unless it is an anonymous campaign contribution, the full name, mailing address and, if it is different, residential address of the contributor;

(d) whether the campaign contribution is an anonymous campaign contribution; ,

(b) in subsection (2) (b) by striking out "under subsection (1) (a) to (e) of this section;" and substituting "under subsection (1) (a) to (d) of this section;", and

(c) in subsection (2) by adding the following paragraph:

(b.1) if the contribution was made by an organization, the name of the organization; .

SECTION 14: [Local Elections Campaign Financing Act, Divisions 4 and 5 of Part 2] establishes a campaign contribution limit framework.

14 The following Divisions are added to Part 2:

Division 4 – Campaign Contribution Limits
for 2017 and 2018

Campaign contribution limits
for 2017 and 2018

30.01  (1) Subject to any applicable regulations, in relation to the 2018 general local election, for each of 2017 and 2018, the campaign contribution limit is $1 200 for a candidate who is not endorsed by an elector organization in relation to an election campaign of the candidate.

(2) Subject to any applicable regulations, in relation to the 2018 general local election, for each of 2017 and 2018, the campaign contribution limit is $1 200 for any one elector organization and all the candidates endorsed by the elector organization in relation to an election campaign of the elector organization.

Campaign contributions – elector
organizations and endorsed candidates

30.02  Section 30.05 [campaign contributions – elector organizations and endorsed candidates] applies in relation to an applicable campaign contribution limit for 2017 and 2018.

Division 5 – Campaign Contribution Limits

Application of Division

30.03  As an exception to section 1 [elections to which this Act applies], this Division applies to one or more of the following:

(a) an election prescribed by regulation;

(b) an election prescribed by regulation in an election area prescribed by regulation;

(c) an election prescribed by regulation for all the election areas in the geographic area associated with a jurisdiction prescribed by regulation.

Campaign contribution limits
for 2019 and subsequent years

30.04  (1) In this section, "base year" means 2019 or a subsequent calendar year for which a campaign contribution limit is established under subsection (2) or (3).

(2) Subject to any applicable regulations, the campaign contribution limit for a base year is, for a candidate who is not endorsed by an elector organization in relation to an election campaign of the candidate, an amount prescribed by regulation or determined in accordance with the regulations.

(3) Subject to any applicable regulations, the campaign contribution limit for a base year is, for any one elector organization and all the candidates endorsed by the elector organization in relation to an election campaign of the elector organization, an amount prescribed by regulation or determined in accordance with the regulations.

(4) Subject to any applicable regulations, for a calendar year other than a base year, the BC chief electoral officer must establish the campaign contribution limits for that year by

(a) determining the ratio between the consumer price index at January 1 of the base year and the consumer price index at January 1 of the year in which the limit applies, and

(b) applying the ratio to adjust the amount prescribed or determined under subsection (2) and (3) that is to apply for that year.

(5) For the purpose of establishing a campaign contribution limit under subsection (4), the BC chief electoral officer has the discretion to determine

(a) whether to use a consumer price index prepared by the director under the Statistics Act (British Columbia) or a consumer price index published by Statistics Canada under the Statistics Act (Canada), and

(b) which consumer price index is applicable for a particular time.

(6) As soon as practicable after January 1 of each year, the BC chief electoral officer must

(a) have the campaign contribution limits established under subsection (4) published in the Gazette, and

(b) make that information publicly available on an Elections BC authorized internet site.

Campaign contributions – elector
organizations and endorsed candidates

30.05  (1) In this section, "excess campaign contributions" means

(a) permissible loans made by an eligible individual, and

(b) campaign contributions

that are accepted by an elector organization and the candidates endorsed by the elector organization and that, in total, exceed an applicable campaign contribution limit.

(2) As soon as practicable after an elector organization endorses a candidate in an election, the financial agent for the candidate must provide to the financial agent for the elector organization the following information in relation to the election campaign of the candidate for that election:

(a) the amount and date of each campaign contribution accepted by the candidate;

(b) the full name of the contributor of each campaign contribution accepted by the candidate, unless the contributor is an anonymous contributor;

(c) the amount and date of each permissible loan made by an eligible individual and accepted by the candidate;

(d) the full name of the eligible individual who made the permissible loan;

(e) any other information prescribed by regulation.

(3) As soon as practicable after receiving the information under subsection (2), the financial agent for the elector organization must review the information.

(4) If, after the review under subsection (3) or at any other time after an elector organization endorses a candidate, the financial agent for the elector organization becomes aware that there are excess campaign contributions, the financial agent for the elector organization must comply with subsection (5) and, if applicable, subsection (6).

(5) If there are excess campaign contributions, the financial agent for the elector organization must do one or more of the following:

(a) return to one or more contributors one or more campaign contributions accepted by the elector organization;

(b) pay to one or more contributors an amount equal to the value of one or more campaign contributions accepted by the elector organization;

(c) pay to one or more lenders an amount of one or more permissible loans made to and accepted by the elector organization.

(6) If, after complying with subsection (5), the financial agent for the elector organization determines that there continue to be excess campaign contributions, the financial agent for the elector organization must, as soon as practicable, notify the financial agent for one or more candidates of the excess campaign contributions.

(7) As soon as practicable after receiving a notification under subsection (6), a financial agent for a candidate must do one or more of the following to ensure that there are no excess campaign contributions:

(a) return to one or more contributors one or more campaign contributions accepted by the candidate;

(b) pay to one or more contributors an amount equal to the value of one or more campaign contributions accepted by the candidate;

(c) pay to one or more lenders an amount of one or more permissible loans made to and accepted by the candidate.

(8) A financial agent who contravenes this section commits an offence.

SECTION 15: [Local Elections Campaign Financing Act, section 32] updates the rules respecting debts.

15 Section 32 is amended

(a) in subsection (1) (d) by striking out "an unpaid amount" and substituting "the unpaid amount of a debt, other than a debt arising from a loan,", and

(b) by adding the following subsection:

(2.1) If the unpaid amount of a debt referred to in subsection (1) (d) of this section

(a) is payable to an organization or an individual, other than an eligible individual, and

(b) becomes a sponsorship contribution under that subsection,

section 35 [dealing with prohibited sponsorship contributions] applies as if the unpaid amount of the debt were a sponsorship contribution made or accepted in contravention of this Act or the regulations under this Act.

SECTION 16: [Local Elections Campaign Financing Act, section 32.01] establishes rules respecting loans.

16 The following section is added:

Sponsorship contributions through loans

32.01  (1) Subject to any applicable regulations, a permissible loan to a third party sponsor is not a sponsorship contribution.

(2) Despite subsection (1), the unpaid amount of a permissible loan made by an eligible individual to a third party sponsor is a sponsorship contribution if

(a) that part of the loan remains unpaid for 6 months after it becomes due and no legal proceedings to recover the loan have been commenced by the eligible individual, or

(b) the eligible individual forgives that part of the loan.

(3) Despite subsection (1), the unpaid amount of a permissible loan made by a savings institution to a third party sponsor is a sponsorship contribution if the savings institution does not make commercially reasonable efforts to collect or enforce the loan.

(4) In the circumstances described in subsection (3), section 35 [dealing with prohibited sponsorship contributions] applies as if the unpaid amount of the loan were a sponsorship contribution made or accepted in contravention of this Act or the regulations under this Act.

(5) For certainty, nothing in subsection (2) or (3) affects the rights of a creditor in relation to a permissible loan that becomes a sponsorship contribution under those subsections.

SECTION 17: [Local Elections Campaign Financing Act, section 34]

17 Section 34 is amended

(a) by adding the following subsection:

(0.1) An organization or an individual, other than an eligible individual, must not make a sponsorship contribution. ,

(b) in subsection (1) by striking out "An individual or organization" and substituting "An eligible individual",

(c) by repealing subsection (1) (e), and

(d) by adding the following subsection:

(1.1) An individual or organization must not make a sponsorship contribution indirectly by providing money, non-monetary property or services to an eligible individual

(a) for the eligible individual to make as a sponsorship contribution, or

(b) as consideration for that eligible individual making a sponsorship contribution.

SECTION 18: [Local Elections Campaign Financing Act, sections 34.01 to 34.03]

18 The following sections are added:

Restrictions on making loans for sponsorship use

34.01  (1) Subject to this section, an individual or organization must not make a loan to a third party sponsor for sponsorship use.

(2) A savings institution or an eligible individual must not make a loan, other than a permissible loan, to a third party sponsor for sponsorship use.

(3) For certainty, this section applies whether the permissible loan is made or accepted before or after the start of a campaign period.

(4) An individual or organization that contravenes this section commits an offence.

Restrictions in relation to accepting sponsorship contributions

34.02  (1) A third party sponsor must not accept a sponsorship contribution from an organization or an individual, other than an eligible individual.

(2) A third party sponsor must not accept

(a) a sponsorship contribution for which the information required to be recorded under section 36 [records of sponsorship contributions and sponsored advertising] is not provided, or

(b) any other sponsorship contribution that the sponsor has reason to believe is made in contravention of this Act or the regulations under this Act.

(3) A third party sponsor that contravenes this section commits an offence.

Restrictions in relation to accepting loans for sponsorship use

34.03  (1) A third party sponsor must not accept a loan, other than a permissible loan, for sponsorship use.

(2) If a third party sponsor becomes aware that it has accepted a loan in contravention of subsection (1), the third party sponsor must, within 30 days after becoming aware of the contravention,

(a) return the loan to the lender, or

(b) pay to the lender an amount equal to the value of the loan.

(3) If subsection (2) applies, the third party sponsor must maintain records of the following for each loan:

(a) the circumstances in which the loan was accepted;

(b) the information required under section 36 (2.1) [records of sponsorship contributions – loans];

(c) when and how the loan was dealt with in accordance with subsection (2) of this section;

(d) any other information prescribed by regulation.

(4) For certainty, this section applies whether the loan is made or accepted before or after the start of a campaign period.

(5) A third party sponsor that contravenes this section commits an offence.

SECTION 19: [Local Elections Campaign Financing Act, section 35] is self-explanatory.

19 Section 35 (1) is repealed.

SECTION 20: [Local Elections Campaign Financing Act, section 36]

20 Section 36 is amended

(a) by repealing subsection (1) (c), (d) and (e) and substituting the following:

(c) unless it is an anonymous sponsorship contribution, the full name, mailing address and, if it is different, residential address of the contributor;

(d) whether the sponsorship contribution is an anonymous sponsorship contribution; ,

(b) in subsection (2) (b) by striking out "under subsection (1) (a) to (e) of this section;" and substituting "under subsection (1) (a) to (d) of this section;",

(c) in subsection (2) by adding the following paragraph:

(b.1) if the contribution was made by an organization, the name of the organization; , and

(d) by adding the following subsection:

(2.1) The sponsor must maintain records of the following in relation to a permissible loan made to the sponsor:

(a) if the loan is made by an eligible individual, the full name and residential address of the eligible individual;

(b) if the loan is made by a savings institution, the name of the savings institution;

(c) the amount of the loan;

(d) the date the loan is made;

(e) the date the loan is due;

(f) the rate of interest, if any, charged for the loan;

(g) if the loan is made by a savings institution, the prime rate of the principal banker to the government at the time the rate of interest for the loan is fixed;

(h) any other information prescribed by regulation.

SECTION 21: [Local Elections Campaign Financing Act, section 49]

21 Section 49 (2) is amended

(a) in paragraph (d) by striking out "other than the mailing address of an individual;" and substituting "and the residential address of each significant contributor but not the mailing address, if different;", and

(b) by adding the following paragraphs:

(f.1) the information referred to in section 22 (1.1) [recording requirements for loans];

(f.2) any amount outstanding on a loan; .

SECTION 22: [Local Elections Campaign Financing Act, section 50]

22 Section 50 (2) is amended

(a) in paragraph (e) by striking out "other than the mailing address of an individual;" and substituting "and the residential address of each significant contributor but not the mailing address, if different;",

(b) by adding the following paragraphs:

(e.1) the information referred to in section 22 (1.1);

(e.2) any amount outstanding on a loan; , and

(c) by repealing paragraph (f).

SECTION 23: [Local Elections Campaign Financing Act, section 51]

23 Section 51 (2) is amended

(a) in paragraph (c) by striking out "other than the mailing address of an individual;" and substituting "and the residential address of each significant contributor but not the mailing address, if different;", and

(b) by adding the following paragraphs:

(c.1) the information referred to in section 36 (2.1) [records of sponsorship contributions – loans];

(c.2) any amount outstanding on a loan; .

SECTION 24: [Local Elections Campaign Financing Act, section 52]

24 Section 52 (2) is amended

(a) in paragraph (c) by striking out "other than the mailing address of an individual;" and substituting "and the residential address of each significant contributor but not the mailing address, if different;", and

(b) by adding the following paragraphs:

(c.1) the information referred to in section 36 (2.1);

(c.2) any amount outstanding on a loan; .

SECTION 25: [Local Elections Campaign Financing Act, section 58] is consequential to amendments made to the Act by this Bill.

25 Section 58 (1) (a) and (b) is amended by striking out "or report" and substituting "or report, other than a mailing address or residential address of a significant contributor,".

SECTION 26: [Local Elections Campaign Financing Act, section 98.1] is consequential to amendments made to the Act by this Bill.

26 Section 98.1 is amended by striking out "for the purposes of this Act" and substituting "for the purposes of this Act and the regulations under this Act" and by striking out "election area" wherever it appears and substituting "election area or the geographic area associated with a jurisdiction".

SECTION 27: [Local Elections Campaign Financing Act, section 100] adds the ability to establish classes of geographic areas associated with a jurisdiction.

27 Section 100 (5) (a) is amended by striking out "jurisdictions," and substituting "jurisdictions, geographic areas associated with a jurisdiction,".

SECTION 28: [Local Elections Campaign Financing Act, section 100.01] adds regulation-making powers respecting campaign contribution limits.

28 The following section is added:

Power to make regulations – campaign contribution limits

100.01  (1) Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations respecting campaign contribution limits, including, without limitation, but subject to subsection (3), as follows:

(a) for the purposes of section 30.03 [application of Division], prescribing the election, jurisdiction, election area or geographic area associated with a jurisdiction to which Division 5 [Campaign Contribution Limits] of Part 2 [Candidate and Elector Organization Campaign Financing] applies;

(b) for the purposes of section 30.04 [campaign contribution limits for 2019 and subsequent years],

(i) prescribing the amounts of the campaign contribution limits, or

(ii) respecting how an amount of a campaign contribution limit is determined, including prescribing that an amount is determined on the basis of

(A) prescribed population ranges, or

(B) a prescribed formula that takes into account the population of an election area or the geographic area associated with a jurisdiction;

(c) respecting amounts of campaign contribution limits, and the application of the campaign contribution limits, for a candidate referred to in section 4 (2) [candidate running in multiple elections];

(d) respecting amounts of campaign contribution limits, and the application of the campaign contribution limits, for an elector organization referred to in section 5 (2) [endorsing in multiple jurisdictions].

(2) In making a regulation under subsection (1), the Lieutenant Governor in Council may do one or more of the following:

(a) establish rules respecting

(i) how campaign contribution limits apply or are determined in the calendar year in which an applicable campaign contribution limit is prescribed,

(ii) how campaign contributions made in the calendar year in which an applicable campaign contribution limit is prescribed before the date the applicable campaign contribution limit is prescribed are dealt with, including whether they are included in determining if an eligible individual exceeds the applicable campaign contribution limit for that calendar year,

(iii) how permissible loans are dealt with, including if and how they are included for the purpose of determining if an eligible individual exceeds an applicable campaign contribution limit, and

(iv) how loans made or accepted and debts arising before the date an applicable campaign contribution limit is prescribed are dealt with;

(b) make provisions that the Lieutenant Governor in Council considers necessary or advisable for the purpose of more effectively determining and applying campaign contribution limits;

(c) make provisions that the Lieutenant Governor in Council considers necessary or advisable for the purpose of preventing, minimizing or otherwise addressing any transitional difficulties encountered in determining or applying campaign contribution limits.

(3) A regulation under sections 30.03 and 30.04 may be made only on the recommendation of the minister responsible.

SECTION 29: [Local Elections Campaign Financing Act, section 1 of the Schedule]

29 Section 1 of the Schedule is amended

(a) by renumbering the section as section 1 (1),

(b) in subsection (1) by adding the following definition:

"applicable campaign contribution limit" means a campaign contribution limit that is established

(a) under section 30.01 [campaign contribution limits for 2017 and 2018], or

(b) under section 30.04 [campaign contribution limits for 2019 and subsequent years] and applies to an election prescribed under section 30.03 [application of Division]; ,

(c) in subsection (1) by repealing the definition of "campaign contribution" and substituting the following:

"campaign contribution" means a campaign contribution within the meaning of any of the following sections:

(a) section 13 [campaign contributions to candidate and elector organization generally];

(b) section 13.01 [campaign contributions through fundraising functions];

(c) section 13.02 [campaign contributions through loans]; ,

(d) in subsection (1) by repealing the definition of "contributor class",

(e) in subsection (1) by adding the following definitions:

"eligible individual" means an individual who is

(a) a resident of British Columbia, and

(b) a Canadian citizen or a permanent resident as defined in the Immigration and Refugee Protection Act (Canada);

"fundraising function" includes a social function held by, or on behalf of, a candidate or elector organization for the purpose of obtaining funds for the candidate or elector organization;

"loan", in relation to a loan made by an eligible individual, includes an interest free loan;

"permissible loan" means a loan that is made to a candidate or elector organization for campaign use or to a third party sponsor or assent voting advertising sponsor for sponsorship use

(a) by a savings institution at a rate of interest that is not less than the prime rate of the principal banker to the government on the date the loan is received, or

(b) by an eligible individual; ,

(f) in subsection (1) in the definition of "significant contributor" by striking out "an individual or organization that" in both places and substituting "an eligible individual who",

(g) in subsection (1) in the definition of "sponsorship contribution" by striking out "section 32 [what are sponsorship contributions]" and substituting "section 32 [sponsorship contributions generally] or 32.01 [sponsorship contributions through loans]",

(h) in subsection (1) in the definition of "sponsorship use" by striking out "to a contribution" in both places and substituting "to a contribution or permissible loan", and

(i) by adding the following subsection:

(2) For the purposes of the definition of "eligible individual", the rules set out in section 67 [rules for determining residence] of the Local Government Act apply to determine if an individual is resident in British Columbia.

Part 2 – Transitional Provisions

SECTION 30: [Transition – definitions] adds a number of definitions for the purposes of the transitional provisions.

Transition – definitions

30  (1) In this Part:

"election amendments" means the following, as applicable:

(a) the amendments made by Part 1 [Local Elections Campaign Financing Act Amendments] of this Act;

(b) the amendments to the Local Elections Campaign Financing Expense Limit Regulation made by a regulation effective the day after the date this Act receives First Reading in the Legislative Assembly;

"former Act" means the Local Elections Campaign Financing Act as it read immediately before repeal, replacement or amendment by the applicable provision of the election amendments;

"former provision" means either of the following:

(a) a provision of the former Act;

(b) a provision of the Local Elections Campaign Financing Expense Limit Regulation as it read immediately before repeal, replacement or amendment by the applicable provision of the election amendments;

"new Act" means the Local Elections Campaign Financing Act as it reads immediately after amendment or enactment by the applicable provision of the election amendments;

"new provision" means either of the following:

(a) a provision of the new Act;

(b) a provision of the Local Elections Campaign Financing Expense Limit Regulation, as it reads the day after the date this Act receives First Reading in the Legislative Assembly.

(2) The following definitions apply to this Part, as necessary to give effect to the meaning of a former provision or new provision, as applicable:

(a) the definitions in the former Act;

(b) the definitions in the new Act;

(c) the definitions in the Local Elections Campaign Financing Expense Limit Regulation as it read immediately before repeal, replacement or amendment by the applicable provision of the election amendments.

SECTION 31: [Transition – application of election amendments] provides that the election amendments do not apply to elections or assent voting held before the 2018 general local election.

Transition – application of election amendments

31  The election amendments do not apply in relation to an election referred to in section 1 [elections to which this Act applies] of the Local Elections Campaign Financing Act, or voting referred to in section 2 [assent voting to which this Act applies] of that Act, held before the 2018 general local election, and a former provision continues to apply in relation to that election or that voting.

SECTION 32: [Transition – compliance and enforcement] provides that specified provisions of the Local Elections Campaign Financing Act apply to ensure compliance with and enforcement of the transitional provisions.

Transition – compliance and enforcement

32  Division 1 [Elections BC Responsibilities and Powers] of Part 7 [Enforcement] and Division 1 [Responsibilities and Authorities] of Part 8 [Administration and Other Matters] of the Local Elections Campaign Financing Act apply in respect of ensuring compliance with and enforcement of

(a) this Part, and

(b) a former provision as that former provision applies in relation to an election referred to in section 1 of the Local Elections Campaign Financing Act, or voting referred to in section 2 of that Act, that is part of the 2018 general local election.

SECTION 33: [Transition – regulations] provides a regulation-making power to make regulations retroactive to make specified amendments.

Transition – regulations

33  (1) For the purpose of making the amendments referred to in paragraph (b) of the definition of "election amendments" in section 30 (1), the Lieutenant Governor in Council may make regulations retroactive to the day after the date this Act receives First Reading in the Legislative Assembly.

(2) A regulation may not be made under subsection (1) after December 31, 2017.

SECTION 34: [Transition – debts before this section comes into force]

Transition – debts before this section comes into force

34  (1) Despite the election amendments, an individual or organization does not contravene the new Act if,

(a) in relation to an election referred to in section 1 of the Local Elections Campaign Financing Act, or voting referred to in section 2 of that Act, held before the 2018 general local election,

(i) a candidate or elector organization is liable for payment to the individual or organization for a debt, including a debt arising from a loan, in relation to election expenses,

(ii) a third party sponsor is liable for payment to the individual or organization for a debt, including a debt arising from a loan, in relation to the preparation or transmission of third party advertising, or

(iii) an assent voting advertising sponsor is liable for payment to the individual or organization for a debt, including a debt arising from a loan, in relation to the preparation or transmission of non-election assent voting advertising, and

(b) on or after the date this section comes into force, an unpaid amount of the debt becomes a campaign contribution or a sponsorship contribution, as applicable.

(2) Despite the election amendments, an individual or organization does not contravene the new Act if,

(a) before the date this section comes into force,

(i) a candidate or elector organization is liable for payment to the individual or organization for a debt, other than a debt arising from a loan, in relation to election expenses in relation to the 2018 general local election, or

(ii) a third party sponsor is liable for payment to the individual or organization for a debt, including a debt arising from a loan, in relation to the preparation or transmission of third party advertising in relation to the 2018 general local election, and

(b) on or after the date this section comes into force, an unpaid amount of the debt becomes a campaign contribution or a sponsorship contribution, as applicable.

(3) Section 13 (1) (h), (3.1) and (3.2) [debts as campaign contributions] of the new Act does not apply in relation to a debt described in subsection (1) (a) (i) or (2) (a) (i) of this section, and section 13 (1) (h) of the former Act continues to apply in relation to the debt.

(4) Section 32 (1) (d) and (2.1) [debts as sponsorship contributions] of the new Act does not apply in relation to a debt described in subsection (1) (a) (ii) or (iii) or (2) (a) (ii) of this section, and section 32 (1) (d) of the former Act continues to apply in relation to the debt.

SECTION 35: [Transition – fundraising functions] provides that the new rules respecting fundraising functions do not apply to specified fundraising functions and that former provisions continue to apply.

Transition – fundraising functions

35  Section 13.01 [campaign contributions through fundraising functions] of the new Act does not apply in relation to a fundraising function in relation to the 2018 general local election that is held or that is publicly announced or publicly advertised before the date this section comes into force, and a former provision continues to apply in relation to the fundraising function, including, without limitation, provisions respecting the following:

(a) the definition of "fundraising function";

(b) determining whether a charge for a fundraising function is a campaign contribution;

(c) depositing into campaign accounts charges for fundraising functions that are not campaign contributions;

(d) requiring information respecting a fundraising function to be included in a disclosure statement of a candidate or elector organization.

SECTION 36: [Transition – loans before this section comes into force]

Transition – loans before this section comes into force

36  (1) Despite the election amendments, an individual or organization does not contravene the new Act if,

(a) before the date this section comes into force, the individual or organization makes a loan to a candidate or elector organization for campaign use, in relation to the 2018 general local election, and

(b) on or after the date this section comes into force, an amount in relation to the loan becomes a campaign contribution or sponsorship contribution, as applicable.

(2) A new provision does not apply in relation to a loan described in subsection (1), and a former provision continues to apply in relation to the loan, including, without limitation, provisions respecting the following:

(a) the definition of "loan";

(b) making and accepting a loan;

(c) recording information respecting a loan and lender;

(d) determining whether an amount in relation to a loan is a campaign contribution;

(e) determining when an amount in relation to a loan becomes a campaign contribution;

(f) disclosing the value of interest on a loan in relation to election expenses;

(g) using campaign accounts for paying and depositing a loan;

(h) requiring information respecting a loan to be included in a disclosure statement of a candidate or elector organization.

(3) Despite the election amendments,

(a) a candidate or elector organization may use a loan made to the candidate or elector organization for campaign use in relation to the 2018 general local election if the loan was

(i) made before the date this section comes into force, and

(ii) made by an individual or organization, and

(b) a third party sponsor may use a loan made to the third party sponsor for sponsorship use in relation to the 2018 general local election if the loan was

(i) made before the date this section comes into force, and

(ii) made by an individual or organization.

SECTION 37: [Transition – contributions made before this section comes into force] is self-explanatory.

Transition – contributions made before
this section comes into force

37  Despite the election amendments,

(a) a candidate or elector organization may use a campaign contribution for campaign use in relation to the 2018 general local election if the campaign contribution was

(i) received before the date this section comes into force, and

(ii) made by an individual or organization, and

(b) a third party sponsor may use a sponsorship contribution for sponsorship use in relation to the 2018 general local election if the sponsorship contribution was

(i) received before the date this section comes into force, and

(ii) made by an individual or organization.

SECTION 38: [Transition – application of campaign contribution limits] provides how campaign contributions made in 2017 apply to an applicable campaign contribution limit in 2017.

Transition – application of campaign contribution limits

38  The following must be included in determining whether an eligible individual exceeds an applicable campaign contribution limit for 2017 established under section 30.01 [campaign contribution limits for 2017 and 2018] of the new Act:

(a) a campaign contribution made in 2017 by an eligible individual before the date this section comes into force;

(b) a loan for campaign use made in 2017 by an eligible individual to a candidate or elector organization before the date this section comes into force.

SECTION 39: [Transition – provision of residential address] is self-explanatory.

Transition – provision of residential address

39  Sections 49 (2) (d), 50 (2) (e), 51 (2) (c), 52 (2) (c) and 58 (1) of the new Act do not apply in relation to campaign contributions or sponsorship contributions received in relation to the 2018 general local election before the date this section comes into force, and sections 49 (2) (d), 50 (2) (e), 51 (2) (c), 52 (2) (c) and 58 (1) of the former Act continue to apply in relation to those campaign contributions or sponsorship contributions.

SECTION 40: [Transition – disclosure requirements for contributor class] establishes disclosure requirements respecting contributor classes for campaign contributions or sponsorship contributions received before the date the section comes into force.

Transition – disclosure requirements for contributor class

40  (1) In this section, "previous contribution" means a campaign contribution or a sponsorship contribution that

(a) was made by an individual or organization,

(b) was received before the date this section comes into force, and

(c) must be included, under the Local Elections Campaign Financing Act, in a disclosure statement of a candidate, elector organization or third party sponsor in relation to the 2018 general local election.

(2) Despite the election amendments, a disclosure statement for a candidate, elector organization and third party sponsor must include the following information for each previous contribution:

(a) the total value of each contribution in each contributor class, other than the anonymous contributor class;

(b) if applicable, the total value of campaign contributions received through fundraising functions and the total number of contributors that made those contributions.

SECTION 41: [Transition – disclosure requirements for transfers] establishes disclosure requirements respecting transfers made before the date the section comes into force.

Transition – disclosure requirements for transfers

41  (1) If, before the date this section comes into force,

(a) a candidate has separate campaigns for different jurisdictions as referred to in section 4 (2) [candidate running in multiple elections] of the Local Elections Campaign Financing Act, and

(b) the candidate makes transfers from a campaign account for one of those campaigns to a campaign account for another of those campaigns,

the disclosure statement of the candidate required under the Local Elections Campaign Financing Act in relation to the 2018 general local election must include the total amount of those transfers.

(2) If, before the date this section comes into force,

(a) an elector organization has separate campaigns for different jurisdictions as referred to in section 5 (2) [endorsing in multiple jurisdictions] of the Local Elections Campaign Financing Act, and

(b) the elector organization makes transfers from a campaign account for one of those campaigns to a campaign account for another of those campaigns,

the disclosure statement of the elector organization required under the Local Elections Campaign Financing Act in relation to the 2018 general local election must include the total amount of those transfers.

Commencement

42  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table:

Item Column 1
Provisions of Act
Column 2
Commencement
1 Anything not elsewhere covered by this table The date of Royal Assent
2 Sections 1 to 41 On the day after the date this Act receives First Reading in the Legislative Assembly

 
Explanatory Notes

SECTION 1: [Local Elections Campaign Financing Act, section 5] replaces references to election area with references to jurisdiction.

SECTION 2: [Local Elections Campaign Financing Act, section 9] is self-explanatory.

SECTION 3: [Local Elections Campaign Financing Act, section 13]

SECTION 4: [Local Elections Campaign Financing Act, sections 13.01 and 13.02]

SECTION 5: [Local Elections Campaign Financing Act, section 14] is consequential to amendments made to the Act by this Bill.

SECTION 6: [Local Elections Campaign Financing Act, section 18]

SECTION 7: [Local Elections Campaign Financing Act, section 20]

SECTION 8: [Local Elections Campaign Financing Act, section 22]

SECTION 9: [Local Elections Campaign Financing Act, section 23] provides that a candidate who provided money to an elector organization must return the money if the elector organization does not endorse the candidate.

SECTION 10: [Local Elections Campaign Financing Act, section 26]

SECTION 11: [Local Elections Campaign Financing Act, section 27] prohibits accepting campaign contributions from anyone other than an eligible individual or that exceed an applicable campaign contribution limit.

SECTION 12: [Local Elections Campaign Financing Act, sections 27.01 and 27.02] establishes rules for loans.

SECTION 13: [Local Elections Campaign Financing Act, section 29]

SECTION 14: [Local Elections Campaign Financing Act, Divisions 4 and 5 of Part 2] establishes a campaign contribution limit framework.

SECTION 15: [Local Elections Campaign Financing Act, section 32] updates the rules respecting debts.

SECTION 16: [Local Elections Campaign Financing Act, section 32.01] establishes rules respecting loans.

SECTION 17: [Local Elections Campaign Financing Act, section 34]

SECTION 18: [Local Elections Campaign Financing Act, sections 34.01 to 34.03]

SECTION 19: [Local Elections Campaign Financing Act, section 35] is self-explanatory.

SECTION 20: [Local Elections Campaign Financing Act, section 36]

SECTION 21: [Local Elections Campaign Financing Act, section 49]

SECTION 22: [Local Elections Campaign Financing Act, section 50]

SECTION 23: [Local Elections Campaign Financing Act, section 51]

SECTION 24: [Local Elections Campaign Financing Act, section 52]

SECTION 25: [Local Elections Campaign Financing Act, section 58] is consequential to amendments made to the Act by this Bill.

SECTION 26: [Local Elections Campaign Financing Act, section 98.1] is consequential to amendments made to the Act by this Bill.

SECTION 27: [Local Elections Campaign Financing Act, section 100] adds the ability to establish classes of geographic areas associated with a jurisdiction.

SECTION 28: [Local Elections Campaign Financing Act, section 100.01] adds regulation-making powers respecting campaign contribution limits.

SECTION 29: [Local Elections Campaign Financing Act, section 1 of the Schedule]

SECTION 30: [Transition – definitions] adds a number of definitions for the purposes of the transitional provisions.

SECTION 31: [Transition – application of election amendments] provides that the election amendments do not apply to elections or assent voting held before the 2018 general local election.

SECTION 32: [Transition – compliance and enforcement] provides that specified provisions of the Local Elections Campaign Financing Act apply to ensure compliance with and enforcement of the transitional provisions.

SECTION 33: [Transition – regulations] provides a regulation-making power to make regulations retroactive to make specified amendments.

SECTION 34: [Transition – debts before this section comes into force]

SECTION 35: [Transition – fundraising functions] provides that the new rules respecting fundraising functions do not apply to specified fundraising functions and that former provisions continue to apply.

SECTION 36: [Transition – loans before this section comes into force]

SECTION 37: [Transition – contributions made before this section comes into force] is self-explanatory.

SECTION 38: [Transition – application of campaign contribution limits] provides how campaign contributions made in 2017 apply to an applicable campaign contribution limit in 2017.

SECTION 39: [Transition – provision of residential address] is self-explanatory.

SECTION 40: [Transition – disclosure requirements for contributor class] establishes disclosure requirements respecting contributor classes for campaign contributions or sponsorship contributions received before the date the section comes into force.

SECTION 41: [Transition – disclosure requirements for transfers] establishes disclosure requirements respecting transfers made before the date the section comes into force.