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Bill C-24

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Division 1.1

Registration of Electoral District Associations and Financial Administration of Registered Associations

Registration of Electoral District Associations

Duty to register

403.01 No electoral district association of a registered party shall, unless it is registered,

    (a) accept contributions;

    (b) provide goods or services or transfer funds to a candidate endorsed by a registered party;

    (c) provide goods or services or transfer funds to a registered party or a registered association; or

    (d) accept surplus electoral funds of a candidate, surplus leadership campaign funds of a leadership contestant or surplus nomination campaign funds of a nomination contestant.

Contents of application

403.02 (1) An application for registration of an electoral district association of a registered party may be submitted to the Chief Electoral Officer by the association, and must include

    (a) the full name of the association;

    (b) the full name of the registered party;

    (c) the address of the office of the association at which records are maintained and to which communications may be addressed;

    (d) the names and addresses of the chief executive officer and other officers of the association;

    (e) the name and address of the appointed auditor of the association; and

    (f) the name and address of the financial agent of the association.

Accompanyin g documents

(2) The application must be accompanied by

    (a) the signed consent of the financial agent to so act;

    (b) the signed consent of the auditor to so act; and

    (c) a declaration signed by the leader of the party certifying that the electoral district association is an electoral district association of the party.

Examination of application

(3) The Chief Electoral Officer shall register an electoral district association that meets the requirements of subsections (1) and (2). In the case of a refusal to register, the Chief Electoral Officer shall indicate which of those requirements have not been met.

Date of registration

(4) An electoral district association is registered as of the date on which the Chief Electoral Officer enters it in the registry of electoral district associations.

Only one registered association per district

403.03 A registered party may not have more than one registered association in an electoral district.

Election period - contributions and expenses

403.04 No electoral district association of a registered party shall, during an election period in that electoral district,

    (a) accept contributions; or

    (b) incur expenses for election advertising, as defined in section 319.

Statement of assets and liabilities

403.05 Within six months after becoming a registered association, the association shall provide the Chief Electoral Officer with

    (a) a statement, prepared in accordance with generally accepted accounting principles, of its assets and liabilities, including any surplus or deficit, as of the day before the effective date of the registration;

    (b) a report on that statement made by the registered association's auditor to its financial agent that contains the auditor's opinion as to whether that statement presents fairly and in accordance with generally accepted accounting principles the information on which it is based; and

    (c) a declaration in the prescribed form by the financial agent of the registered association that the statement is complete and accurate.

Annual fiscal period

403.06 The fiscal period of a registered association is the calendar year.

Adjustment of fiscal period for newly registered associations

403.07 Without delay after becoming registered, a registered association shall, if necessary, vary its fiscal period so that it ends at the end of the calendar year. The then current fiscal period may not be less than 6 months or more than 18 months.

Registry of electoral district associations

403.08 The Chief Electoral Officer shall maintain a registry of electoral district associations that contains the information referred to in subsection 403.02(1).

Appointments

403.09 (1) A registered association may, subject to any terms and conditions that it specifies, appoint, as electoral district agents, persons who are authorized by the association to accept contributions and incur expenses on behalf of the association.

Report of appointment

(2) Within 30 days after the appointment of an electoral district agent, the registered association shall provide the Chief Electoral Officer with a written report, certified by its financial agent, that includes the name and address of the person appointed and any terms and conditions to which the appointment is subject. The Chief Electoral Officer shall enter that information in the registry of electoral district associations.

Agents - corporations

403.1 (1) A corporation incorporated under the laws of Canada or a province is eligible to be the financial agent or an electoral district agent of a registered association.

Agents - ineligible persons

(2) The following persons are not eligible to be a financial agent or an electoral district agent:

    (a) an election officer or a member of the staff of a returning officer;

    (b) a candidate;

    (c) an auditor appointed as required by this Act;

    (d) subject to subsection (1), a person who is not an elector;

    (e) an undischarged bankrupt; and

    (f) a person who does not have the capacity to enter into contracts in the province in which the person ordinarily resides.

Auditor - eligibility

403.11 (1) Only the following are eligible to be an auditor for a registered association:

    (a) a person who is a member in good standing of a corporation, an association or an institute of professional accountants; or

    (b) a partnership of which every partner is a member in good standing of a corporation, an association or an institute of professional accountants.

Auditor - ineligible persons

(2) The following persons are not eligible to be an auditor for a registered association:

    (a) election officers and members of the staff of returning officers;

    (b) chief agents of registered parties or eligible parties and registered agents of registered parties;

    (c) candidates and official agents of candidates;

    (d) electoral district agents of registered associations;

    (e) leadership contestants and their leadership campaign agents;

    (f) nomination contestants and their financial agents; and

    (g) financial agents of registered third parties.

Consent

403.12 A registered association shall obtain from the financial agent or auditor, on appointment, their signed consent to so act.

Death, incapacity, resignation or revocation

403.13 In the event of the death, incapacity, resignation or revocation of the appointment of its financial agent or auditor, a registered association shall without delay appoint a replacement.

Only one financial agent and auditor

403.14 A registered association shall have no more than one financial agent and one auditor at a time.

Prohibition - agents

403.15 (1) No person who is not eligible to be a financial agent or an electoral district agent of a registered association shall so act.

Prohibition - auditor

(2) No person who is not eligible to be an auditor of a registered association shall so act.

New auditor or financial agent

403.16 (1) Within 30 days after a change in the information referred to in subsection 403.02(1) other than paragraph 403.02(1)(b), a registered association shall report the change in writing to the Chief Electoral Officer. The report must be certified by the chief executive officer of the association.

New auditor or financial agent

(2) A report under subsection (1) that involves the replacement of the auditor or financial agent of the registered association must include a copy of the signed consent obtained under section 403.12.

Registration of change

(3) The Chief Electoral Officer shall enter any change in the information referred to in this section in the registry of electoral district associations.

Confirmation of registration yearly

403.17 On or before May 31 of every year, a registered association shall provide the Chief Electoral Officer with

    (a) a statement certified by its chief executive officer confirming the validity of the information concerning that association in the registry of electoral district associations; or

    (b) if there is a change in that information, the report made under subsection 403.16(1) of the change.

Deregistration of Registered Associations

Deregistration - failure to provide documents

403.18 The Chief Electoral Officer may deregister a registered association if the association fails to provide

    (a) confirmation under section 403.17 of the validity of the registered information;

    (b) any of the documents referred to in subsection 403.16(1) or (2) with respect to a replacement of its auditor or financial agent;

    (c) a report under subsection 403.09(2) concerning the appointment of an electoral district agent;

    (d) a report under subsection 403.16(1) of a change in any other registered information;

    (e) any of the documents referred to in section 403.05; or

    (f) a report that is required to be filed under subsection 478.02(1).

Deregistration - failure to file return

403.19 The Chief Electoral Officer may deregister a registered association if its financial agent fails to provide the Chief Electoral Officer with a document for a fiscal year in accordance with subsection 403.35(1).

Voluntary deregistration

403.2 (1) On application by a registered association to become deregistered, signed by its chief executive officer and the financial agent, the Chief Electoral Officer may deregister the association.

Deregistration at the request of the party

(2) On application by a registered party, signed by its leader and two of its officers, to deregister one of its registered associations, the Chief Electoral Officer shall deregister the association.

Exception

(3) Subsections (1) and (2) do not apply during an election period in the electoral district of the registered association.

Procedure for non-voluntary deregistration

403.21 (1) If the Chief Electoral Officer believes on reasonable grounds that a registered association or its financial agent has omitted to perform any obligation referred to in section 403.18 or 403.19, the Chief Electoral Officer shall, in writing, notify the chief executive officer and the financial agent of the association that the association or financial agent must

    (a) rectify the omission by the discharge of those obligations within 30 days after receipt of the notice; or

    (b) satisfy the Chief Electoral Officer that the omission was not the result of negligence or a lack of good faith.

Extension or exemption

(2) If paragraph (1)(b) applies, the Chief Electoral Officer may amend the notice by

    (a) exempting, in whole or in part, the recipients of the notice from complying with the obligations referred to in section 403.18 or 403.19; or

    (b) specifying a period for compliance with the obligations referred to in paragraph (1)(a).

Copy of notice

(3) A copy of any notice or amendment under subsection (1) or (2) shall be sent to the leader and the chief agent of the registered party with which the registered association is affiliated.

Deregistration

(4) The Chief Electoral Officer may deregister a registered association if the association or its financial agent fails to comply with a notice referred to in subsection (1) or with an amended notice under subsection (2).

Electoral Boundaries Readjustment Act

403.22 A registered association in an electoral district whose boundaries are revised as a result of a representation order under section 25 of the Electoral Boundaries Readjustment Act is deregistered on the day on which the representation order takes effect under subsection 25(1) of that Act and, despite paragraph 403.01(c), may transfer goods or funds to the registered party with which it is affiliated or to one of that party's registered associations in the six months after that day. Any such transfer is not a contribution for the purposes of this Act.

Notice of deregistration

403.23 (1) If the Chief Electoral Officer deregisters a registered association under section 403.2 or subsection 403.21(4), the Chief Electoral Officer shall so notify the association and the registered party with which it is affiliated.

Date of deregistration

(2) The notice under subsection (1) shall specify the effective date of the deregistration, which shall be at least 15 days after the day on which the notice is sent.

Publication

403.24 (1) If a registered association is deregistered for any reason other than the deregistration of the political party with which it is affiliated, the Chief Electoral Officer shall without delay cause a notice of deregistration to be published in the Canada Gazette.

Entry of deregistration in registry of electoral district associations

(2) The Chief Electoral Officer shall indicate any deregistration of a registered association in the registry of electoral district associations.

Effect of deregistration

403.25 A deregistered electoral district association continues to have the obligations of a registered association for the application of section 403.26.

Fiscal period and returns

403.26 The financial agent of a deregistered electoral district association shall, within six months after the day of its deregistration, provide the Chief Electoral Officer with the documents referred to in subsection 403.35(1) for

    (a) the portion of its current fiscal period ending on the day of its deregistration; and