Functions and liabilities of compliance officers

17 (1) A regulated donee who is the holder of a relevant elective office (the "office-holder") may, by giving a notice to the Commission which complies with paragraph 18(1), appoint an individual as compliance officer for the office-holder.

(2) Where a notice under this paragraph is for the time being in force—

(a) any duty imposed on the office-holder by virtue of paragraph 8, or under paragraph 10, 11 or 13, may be discharged either by the office-holder or by the compliance officer;

(b) section 56(3), (3B) and (4) as applied by paragraph 8, and paragraph 12(1) and (2), apply to the compliance officer as well as the office-holder (so that either or both of them may be charged with any offence under those provisions);

(c) if the compliance officer makes a declaration under paragraph 13, paragraph 13(4) applies to the compliance officer instead of the office-holder.

(3) The compliance officer for an office-holder cannot be guilty of an offence under paragraph 12(1) or (2) in respect of any controlled donation received by the office-holder at a time when the notice under this paragraph was not in force.

(4) A person commits an offence if, at a time when a notice under this paragraph is in force in relation to an office-holder, the person knowingly gives the compliance officer any information relating to—

(a) the amount of any controlled donation made to the office-holder, or

(b) the person or body making such a donation,

which is false in a material particular.

Notices of appointment, renewal, alteration and termination

18 (1) A notice under paragraph 17—

(a) must be signed by the office-holder, and

(b) must contain a statement signed by the individual to be appointed as compliance officer confirming that the individual is willing to be appointed.

(2) A notice under paragraph 17 must state—

(a) the full name of the office-holder,

(b) the relevant elected office that the person holds,

(c) the office-holder's home address in the United Kingdom, or (if there is no such home address) the office-holder's home address elsewhere, and

(d) if the office-holder is a member of a registered party, the party's registered name and the address of its registered headquarters.

(3) A notice under paragraph 17 must also state—

(a) the full name of the individual to be appointed as compliance officer,

(b) if the individual holds a relevant elected office, what that office is,

(c) the individual's home address in the United Kingdom, or (if there is no such home address) the individual's home address elsewhere, and

(d) if the individual is a member of a registered party, the party's registered name and the address of its registered headquarters.

(4) Subject to the following provisions of this paragraph, a notice under paragraph 17 ("the original notice")—

(a) shall be in force as from the date on which it is received by the Commission, but

(b) shall, subject to sub-paragraph (5), lapse at the end of the period of 12 months beginning with that date unless the office-holder or the compliance officer gives a notice to the Commission that they both wish the original notice to remain in force.

(5) A notice under sub-paragraph (4)(b) (a "renewal notice") must either—

(a) confirm that all the statements contained in the original notice, as it has effect for the time being, are accurate; or

(b) indicate that any statement contained in that notice, as it so has effect, is replaced by some other statement conforming with the relevant provision of sub-paragraph (2) or (3).

A renewal notice must be signed by the office-holder and the compliance officer.

(6) A renewal notice must be received by the Commission during the period of one month ending with the year referred to in sub-paragraph (4)(b).

(7) The office-holder or the compliance officer may, at any time after giving the original notice, give the Commission a notice (a "notice of alteration") indicating that any statement contained in the original notice, as it has effect for the time being, is replaced by some other statement—

(a) contained in the notice of alteration, and

(b) conforming with the relevant provision of sub-paragraph (2) or (3).

A notice of alteration must be signed by the office-holder and the compliance officer.

(8) A notice under paragraph 17 ceases to have effect on receipt by the Commission of a notice terminating it (a "notice of termination") given by the office-holder or the compliance officer.

A notice of termination must be signed by the person giving it (but may be signed both by the office-holder and the compliance officer).

(9) Where a notice of termination is signed by the office-holder alone or by the compliance officer alone, the Commission must inform the other person as soon as is reasonably practicable.

Register of compliance officers

19 (1) The Commission shall maintain a register of all notices given to them under paragraph 17 which are for the time being in force.

(2) The register shall be maintained by the Commission in such form as they may determine and shall contain, in the case of each such notice, all the information contained in the notice as it has effect for the time being in accordance with paragraph 18.

(3) Where any notice is given to the Commission under paragraph 17 or sub-paragraph (5) or (7) of paragraph 18, they shall cause all the information contained in the notice, or (as the case may be) any new information contained in it, to be entered in the register as soon as is reasonably practicable.

(4) The information to be entered in the register in respect of any individual shall, however, not include the individual's home address."

(2) In Schedule 20 to the 2000 Act the following entry is inserted at the appropriate place—

Brought up, and read the First time.

I beg to move, That the clause be read a Second time.

With this it will be convenient to discuss the following: amendment 5, in schedule 3, page 38, line 21, at beginning insert—

'(A1) In paragraph 1 of Schedule 7 to the 2000 Act (prohibition on accepting donations from impermissible donors), at the end of sub-sub-paragraph (7)(c) there is inserted ", or a compliance officer appointed by the holder of a relevant elective office to act on his behalf."'.

Government amendments 29 and 30.

The House will recall that we discussed the purpose of the new clause at some length in Committee— [Interruption.]

Order. I am sorry to interrupt the right hon. Gentleman. Will the House please be quiet? This debate may be short and sweet, but it should be heard in silence.

The new clause will be of interest to Members because it is designed to make their lives a little easier. After the discussions about whether a compliance officer should be able to be appointed, we do not think the new clause will allow a holder of elective office to appoint a person to act as a compliance officer for the purpose of ensuring compliance with controls in the 2000 Act. There is nothing in that Act to prevent the appointment of an individual to help with compliance, but the clause ensures that such appointments can be made on a statutory basis.

We do not consider it appropriate to compel holders of elective office to appoint a compliance officer. That would be an unnecessary burden on Members, where there may have been no need in the first place. However, as I said in Committee, we recognise that some will wish to make such an appointment. The clause as drafted is permissive and allows a holder of elective office to notify the Electoral Commission that they have appointed a compliance officer.

We have set out the details of what is required in proposed paragraph 18. It is self-explanatory, so I will not deal with it in detail— [Interruption.] Mr. Djanogly will be even more relieved when I tell him that the clause adopts a common-sense approach. It does not absolve office-holders from responsibility for compliance with their obligations under schedule 7 of PPERA. The question of who will be liable for a breach of the requirements for reporting on and handling donations will depend, as so often, on the facts of the case, but both the office-holder and the compliance officer may be subject to criminal sanction where there has been a failure to comply with their reporting requirements. The only exception—

Three hours having elapsed since the commencement of proceedings on the programme motion, the proceedings were interrupted (Programme Order, this day).

The Deputy Speaker put forthwith the Question necessary for the disposal of business to be concluded at that time (Standing Order No. 83E). Question put, that the Clause be added to the Bill.

The House divided: Ayes 328, Noes 146.

Question accordingly agreed to.

New clause 13 added to the Bill.