Electoral Financing for Candidates and Third Parties Supervisor of Political Financing 2 0 1 4
Training outcom es 1 . I m portant docum ents 2 . Scope of Political Process Financing Act 3 . Principles of political financing 4 . Roles of cam paign team m em bers 5 . Electoral activities: phases and rules 6 . Election advertising by third parties 2
1 . I m portant docum ents • Political Process Financing Act ( PPFA) • Electoral Financing Overview ( P 0 4 9 4 5 ) • Electoral Advertising I nform ation and Guidelines ( P 0 4 9 4 3 ) • Guidelines I ssued by the Supervisor of Political Financing ( P 0 4 9 4 1 ) • Electoral Financial Return for Candidate ( P 0 4 9 0 1 ) • I nstructions to Official Agent for Com pleting the Electoral Financial Return for Candidate ( P 0 4 9 0 2 ) 3 w w w .electionsnb.ca
2 . Scope of the Political Process Financing Act • PPFA governs financial activities of: • Registered political parties • Registered district associations • Nom ination contenders • Candidates • Official candidates of registered political parties • Registered independent candidates • Third parties 4
3 . Principles of political financing for elections • Lim its on political contributions • Lim its on “pre-w rit” advertising • Lim its on election expenses • Public funding to reim burse election expenses • Public disclosure of electoral finances 5
3 . Principles ( Cont.) • Lim its on political contributions • No difference in contribution rules and lim its in an election year or election period • Rules establish: • Definition of “contribution” • Recipient and contributor eligibility • Acceptable m eans of raising funds • Annual lim it of $ 6 ,0 0 0 per political party and district associations • Public disclosure of contributor if total > $ 1 0 0 • Receipts issued by political party • N.B. incom e tax credit up to $ 5 0 0 6
3 . Principles ( Cont.) • Lim its on “pre-w rit” advertising • Subject to $ 2 ,0 0 0 annual advertising lim it of candidate’s registered district association ( RDA) • $ 3 5 ,0 0 0 annual advertising lim it for registered political parties 7
3 . Principles ( Cont.) • Lim its on election expenses • Definition of election expenses: PPFA, s.6 7 • “Election expenses” m eans all expenditures incurred during an election period for the purpose of prom oting or opposing directly or indirectly, the election of a candidate or that of the candidates of a party, including every person w ho subsequently becom es or w ho is likely to becom e a candidate, and includes all expenditures incurred before an election period for literature, objects or m aterials of an advertising nature used during the election period for such purposes • I ncludes contributions of property and services to a cam paign 8
3 . Principles ( Cont.) • Lim its on election expenses ( cont.) • Calculation • Num ber of registered electors in electoral district m ultiplied by inflation-adjusted rate per elector • 2 0 1 4 Estim ated Election Expenses Lim it • 1 1 ,2 6 9 electors X $ 3 .3 0 / elector = $ 3 7 ,1 8 8 • w w w .electionsnb.ca 9
3 . Principles ( Cont.) • Public funding to reim burse election expenses • Criteria to receive reim bursem ent of election expenses • Candidate declared elected • Candidates receiving 1 5 % of vote in their respective electoral districts 10
3 . Principles ( Cont.) • Public funding to reim burse election expenses ( cont.) • Calculation of reim bursem ent • Candidate’s election expenses ( less contributed property and services) up to a m axim um • Maxim um = num ber of registered electors in electoral district m ultiplied by defined rate per elector • 2 0 1 4 estim ated m axim um reim bursem ent • 1 1 ,2 6 9 electors X $ 1 .3 1 / elector = $ 1 4 ,7 6 2 • w w w .electionsnb.ca 11
3 . Principles ( Cont.) • Public disclosure of electoral finances • Electoral Financial Return for Candidate subm itted by official agent • Exam ined by Supervisor • Available for public exam ination 12
4 . Roles of cam paign team m em bers 4 .1 Candidate 4 .2 Official representative of registered district association 4 .3 Official agent of candidate 4 .4 Cam paign m anager 4 .5 Registered independent candidate 13
4 . Cam paign team roles ( Cont.) 4 .1 Candidate • Does not m anage electoral finances • May be authorized to collect contributions or incur election expenses, but not recom m ended • Nom ination paper accom panied by $ 1 0 0 deposit • Refunded upon filing Electoral Financial Return 14
4 . Cam paign team roles ( Cont.) 4 .2 Official representative of registered district association ( RDA) • Arrange financing for cam paign • Contributions and fund-raising events • Loans and guarantors • Consider reim bursem ent of election expenses • Transfer funds to official agent • Authorize non-election expenditures • Pre-w rit advertising • Joint non-election and electoral item s • Ensure com pliance w ith legislation 15 • See Electoral Financing Overview
4 . Cam paign team roles ( Cont.) 4 .3 Official agent of candidate • Appointm ent • By chief agent of Party; confirm ed by candidate • Manage spending of election funds • Prepare or approve budget w ithin spending lim it • Authorize and identify all election expenses • Open bank account • I f offered, m ake use of Party’s sim plified m ethod • Subm it Electoral Financial Return for Candidate • Collect reim bursem ent, pay bills, & close account • Ensure com pliance w ith leg’n • See Electoral Financing Overview 16
4 . Cam paign team roles ( Cont.) 4 .4 Cam paign m anager • Role not specified in legislation • Must understand and respect roles and responsibilities of official representative and official agent and collaborate w ith them 17
4 . Cam paign team roles ( Cont.) 4 .5 Registered independent candidate • Must register w ith Chief Electoral Officer prior to public presentation as candidate • Appoint official representative • Sam e responsibilities as for RDAs • I ssue receipts acknow ledging contributions • Appoint official agent • Sam e responsibilities as for other candidates • Generally, sam e person fills both roles • Sam e rules as other candidates 18
5 . Electoral activities: phases and rules 5 .1 Pre-nom ination 5 .2 Pre-w rit 5 .3 Election period 5 .4 Post-election A handy sum m ary: Electoral Advertising I nform ation and Guidelines, Appendix B 19
5 .1 Pre-nom ination activities • Nom ination contenders • No lim its on donations • No lim its on expenses • Report any surplus to Supervisor • Advertising should focus on nom ination • Applies equally to incum bent MLAs • I f nom inating convention held during election period, successful contender’s costs > $ 1 0 0 0 deem ed to be election expenses 20
5 .2 Pre-w rit activities • Nom inated candidate • Nom inated candidate and RDA becom e entw ined follow ing nom ination • Candidate m ay be authorized by official representative to: • Solicit contributions and incur non-election expenditures: not recom m ended • I ncur his or her ow n reasonable travel expenses, if to be reim bursed by RDA • I f no expectation of reim bursem ent, no prior authorization needed 21
5 .2 Pre-w rit activities ( Cont.) • Official representative of RDA • Authorize all solicitation of contributions and organizing of fund-raising events • Authorize all non-election expenditures • Pre-w rit advertising prom oting candidate • No identification disclosures nor tagline required • Subject to $ 2 ,0 0 0 annual advertising lim it of RDA • Other election-related costs: no lim its • Nom inating convention • Travel expenses of candidate • Candidate's w ebsite • Cam paign office set-up 22
5 .2 Pre-w rit activities ( Cont.) • Official agent of candidate • Prepare or approve cam paign budget • Based on estim ated election expenses lim it and funds available from RDA • Open electoral bank account • Party m ay offer sim plified m ethod • Authorize election expenses • Order advertising to be used during election • Collaborate w ith official representative on joint pre-w rit and election-period item s • Signage, hand-outs, door-knockers, etc. • Candidate’s w ebsite • Cam paign office rent and set-up costs 23
5 .2 Pre-w rit activities ( Cont.) • Official agent of candidate ( cont.) • Candidate’s w ebsite • Generally, not considered to be advertising • Not subject to $ 2 ,0 0 0 pre-w rit advertising lim it • Purchased advertisem ents are considered to be advertising; e.g. W eb banners, Facebook, Google, etc. • Subject to $ 2 ,0 0 0 annual advertising lim it • No disclosure requirem ents until election period begins 24
5 .2 Pre-w rit activities ( Cont.) • Official agent of candidate ( cont.) • MLA’s com m unications w ith constituents* • Non-partisan in nature • MLA’s Constituency Office* • May never be used for partisan political activity • May not be used for cam paign office • Must be closed during election period * Orientation Manual 2 0 1 0 , Legislative Adm inistration Com m ittee, Legislative Assem bly of New Brunsw ick 25
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