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MINUTES OF PROCEEDINGS

Meeting No. 48

Tuesday, June 3, 2003

The Standing Committee on Procedure and House Affairs met at 9:07 a.m. this day, in Room 112-N, Centre Block, the Chair, Peter Adams, presiding.

Members of the Committee present: Peter Adams, Marlene Catterall, Rodger Cuzner, Michel Guimond, Joe Jordan, Lynn Myers, Carolyn Parrish, Geoff Regan, Jacques Saada, Guy St-Julien.

Acting Members present: Bob Wood for Carolyn Parrish; Ted White for Dale Johnston; Dick Proctor for Yvon Godin; Gerald Keddy for Rick Borotsik.

In attendance: From the Library of Parliament: James Robertson, principal; John M. Wright; Research Assistant. From the Committees Directorate: Susan Baldwin, Legislative Clerk.

Witnesses: From the Privy Council Office: Michèle René de Cotret, Senior Privy Council Officer/Counsel, Legislation and House Planning/Counsel; Stéphane Perrault, Senior Counsel.

Pursuant to its Order of Reference of Tuesday, March 18, 2003, the Committee resumed consideration of Bill C-24, An Act to amend the Canada Elections Act and the Income Tax Act (political financing) (See Minutes of Proceedings, Thursday, April 3, 2003, Meeting No. 31).

The Committee resumed Clause-by-Clause consideration of the Bill.

On Clause 24,

Joe Jordan moved, -- That Bill C-24, in Clause 24, be amended by deleting lines 25 to 43 on page 24 and lines 1 to 20 on page 25.

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 4; NAYS, 8.

The Chair ruled that the following amendments were consequential to the previous amendment and therefore they were also negatived:

--That Bill C-24, in Clause 24, be amended by replacing lines 21 and 22 on page 26 with the following:

“received in accordance with section 405.3.”

-- That Bill C-24, in Clause 25, be amended

(a) by replacing line 32 on page 27 with the following:

“subsection 405(1), in effect for”

(b) by replacing lines 7 and 8 on page 28 with the following:

“(2) The amounts set out in subsection 405(1) shall be multiplied by the”

“(a) in the case referred to in paragraph 405(1) (a), during”

--That Bill C-24, in Clause 25, be amended by replacing line 31 on page 28 with the following:

“a limit set out in”

--That Bill C-24, in Clause 65, be amended by replacing line 4 on page 93 with the following:

“subsection 405(1) of the Cana-”

Joe Jordan moved, -- That Bill C-24, in Clause 24, be amended by replacing line 26 on page 24 with the following:

“tributions that do not exceed $1,225 in total in”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 1; NAYS, 10.

The Chair ruled that the following amendments were consequential to the previous amendment and therefore they were also negatived:

-- That Bill C-24, in Clause 25, be amended by replacing lines 15 to 25 on page 27 with the following:

“tions that exceed $1,225 in total in any calendar year to registered associations, nomination contestants and candidates.”

-- That Bill C-24, in Clause 25, be amended by replacing line 20 on page 29 with the following:

“(b) the contributions do not exceed $1,225”

Geoff Regan moved, -- That Bill C-24, in Clause 24, be amended by replacing lines 26 to 34 on page 24 with the following:

“tributions may be made by a corporation or a trade union that do not exceed

(a) $1,000 in total in any calendar year to the registered associations, nomination contestants and candidates of a particular registered party; and

(b) $1,000 in total to a candidate for a particular election who is not the candidate of a registered party.

(1.1) Despite paragraph (1)(a), if two elections are held in an electoral district in a calendar year and a corporation or trade union has, before the polling day of the first election, made a contribution under that paragraph to the registered association, the nomination contestants or the candidate of a particular registered party in that electoral district, the corporation or trade union may make contributions not exceeding $1000 in total to the registered association, the nomination contestants and the candidate of the registered party in that electoral district during the election period for the second election.

(1.2) A corporation or trade union may make contributions under subsection (1.1) in respect of the registered association, the nomination contestants and the candidate of any particular registered party in only one electoral district in any calendar year.

(1.3) Despite paragraph (1)(a), if a corporation or trade union has in any calendar year made a contribution under that paragraph to an individual who is a nomination contestant in an electoral district in a nomination contest held in that year but who is not endorsed by the registered party as its candidate, the corporation or trade union may during that year make contributions not exceeding $1000 in total to the endorsed candidate after he or she is endorsed.

(1.4) A corporation or trade union may make contributions under subsection (1.3) in respect of the candidate of any particular registered party in respect of only one election and in only one electoral district in any calendar year.”

After debate, the question being put on the amendment, it was adopted.

Gerald Keddy moved, -- That Bill C-24, in Clause 24, be amended by replacing lines 27 and 28 on page 24 with the following:

“any calendar year to a registered party and the registered associations, nomination contestants, candidates and leadership contestants”

By unanimous consent, the amendment was stood.

Dick Proctor moved, -- That Bill C-24, in Clause 24, be amended by replacing lines 11 to 14 on page 25 with the following:

“(a) a corporation;

(b) a trade union;”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 4; NAYS, 7.

Dick Proctor moved, -- That Bill C-24, in Clause 24, be amended by replacing line 4 on page 25 with the following:

““trade union” means any local organization of em-”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 2; NAYS, 7.

The Committee reverted to the following amendment that was stood:

-- That Bill C-24, in Clause 24, be amended by replacing lines 27 and 28 on page 24 with the following:

“any calendar year to a registered party and the registered associations, nomination contestants, candidates and leadership contestants”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 3; NAYS, 8.

Geoff Regan moved, -- That Bill C-24, in Clause 24, be amended by

(a) replacing, in the English version, lines 36 to 39 on page 25 with the following:

endorsed by the party;

(b) adding after line 39 on page 25 the following:

”(d) from a candidate to himself or herself in his or her capacity as a nomination contestant in respect of the same election.”

After debate, the question being put on the amendment, it was adopted.

Gerald Keddy moved, -- That Bill C-24, in Clause 24, be amended by deleting lines 18 to 22 on page 26.

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 2; NAYS, 9.

At 10:08 a.m., Carolyn Parrish took the Chair.

At 10:13 a.m., the meeting was suspended.

At 10:21 a.m, the meeting resumed.

By unanimous consent, the Committee reverted to Clause 23.

Geoff Regan moved, -- That Bill C-24, in Clause 23, be amended by replacing lines 10 to 13 on page 9 with the following:

“period, incur expenses for election advertising, as defined in section 319.”

After debate, the question being put on the amendment, it was adopted.

The Committee reverted to the following amendment that was stood:

Dick Proctor moved, -- That Bill C-24, in Clause 23, be amended by replacing lines 8 to 13 on page 9 with the following:

“403.04 An electoral district association of a registered party may accept contributions during an election period.”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 3; NAYS, 8.

The Committee reverted to Clause 24.

Geoff Regan moved, -- That Bill C-24, in Clause 24, be amended by adding after line 24 on page 24 the following:

“(3) For greater certainty, contributions to and expenses of a provincial division of a registered party are contributions to and expenses of the party. Similarly, transfers to or by the division are transfers to or by the party.

(4) A provincial division of a registered party may, subject to any terms and conditions that it specifies, appoint registered agents. This Act applies to those agents as if they were registered agents appointed by the party under subsection 375(1).”

After debate, the question being put on the amendment, it was adopted.

The Chair ruled that the following amendments were consequential to the previous amendment and therefore they were also adopted:

-- That Bill C-24, in Clause 40, be amended by replacing line 39 on page 36 with the following:

“set out in the certificate. The payment may also be made in whole or in part to any provincial division of the party, as authorized in writing by the leader of the party.

(4) In this Act, “provincial division” means a division of a registered party for a province or territory in relation to which the leader of the party has provided the following to the Chief Electoral Officer:

(a) the name of the division and of the province or territory;

(b) the name of the party;

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

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

(e) the name and address of any registered agent appointed by the division; and

(f) a declaration signed by the leader of the party certifying that the division is a division of the party.

This Act applies to information provided under this subsection as if it were information referred to in paragraphs 366(2)(a) to (h).

(5) Within 15 days after a change in the information referred to in subsection (4), the chief executive officer of the provincial division shall report the change in writing to the chief agent of the registered party.”

-- That Bill C-24, in Clause 58, be amended by adding after line 6 on page 81 the following:

“(q.011) being the chief executive officer of a provincial division, contravenes subsection 435.02(5) (failure to report provincial division changes);”

-- That Bill C-24, in Clause 73, be amended by replacing lines 10 and 11 on page 96 with the following:

“a registered party, a provincial division of a registered party, a registered association or a candidate, as those terms are defined in that Act,”

Geoff Regan moved, -- That Bill C-24, in Clause 24, be amended by adding after line 22 on page 26 the following:

“(5) The provision, by an employer who is eligible to make a contribution, of a paid leave of absence during an election period to an employee for the purpose of allowing the employee to be a nomination contestant or candidate is not a contribution.”

After debate, the question being put on the amendment, it was adopted.

At 10:34 a.m., Peter Adams resumed the Chair.

Geoff Regan moved, -- That Bill C-24, in Clause 24, be amended by adding after line 22 on page 26 the following:

“(6) The payment by an individual of a fee of not more than $25 per year for membership in a registered party is not a contribution..”

By unanimous consent the amendment was stood.

Ted White moved, -- That Bill C-24, in Clause 24, be amended by replacing line 32 on page 26 with the following:

“ferred to a particular leadership contestant, except for the purpose of running nomination meetings and other events to which all the nomination or leadership candidates are invited to participate in.”

By unanimous consent, the amendment was withdrawn.

By unanimous consent, Clause 24 was stood.

On Clause 25,

Carolyn Parrish moved, -- That Bill C-24, in Clause 25, be amended by replacing lines 14 to 25 on page 27 with the following:

“405. (1) No individual shall make contributions that exceed

(a) $5,000 in total in any calendar year to a particular registered party and its registered associations, nomination contestants and candidates or that exceed $250 to any one registered association, nomination contestant or candidate of such party in any calendar year;

(b) $250 in total to a candidate for a particular election who is not the candidate for a registered party; and

By unanimous consent, the amendment was stood.

By unanimous consent, the following amendments were stood:

-- That Bill C-24, in Clause 25, be amended

by replacing line 16 on page 27 with the following:

“(a) $5,000 in total in any calendar year to”

(b) by replacing line 20 on page 27 with the following:

“(b) $5,000 in total to a candidate for a”

“(c) 5,000 in total to the leadership”

-- That Bill C-24, in Clause 25, be amended by replacing lines 16 to 26 on page 27 with the following:

“(a) $1,225 in total in any calendar year to registered associations, nomination contestants and candidates; and

(b) $1,225 in total to a candidate for a particular election who is not the candidate of a registered party.

(1.1) No individual, trade union or corporation shall make contributions that exceed:

(a) $10,000 in total to the leadership contestants in a particular leadership contest; and

(b) $25,000 in total in any calendar year to a registered party.

(2) Subsections (1) and (1.1) do not apply to con-”

-- That Bill C-24, in Clause 25, be amended by replacing lines 16 to 23 on page 27 with the following:

“(a) $5,000 in total in any calendar year to all registered parties and their registered associations, nomination contestants and candidates;

(b) $5,000 in total to a candidate for a particular election who is not the candidate of a registered party; and

-- That Bill C-24, in Clause 25, be amended by replacing line 16 on page 27 with the following:

“(a) $3,000 in total in any calendar year to”

(b) by replacing line 20 on page 27 with the following:

“(b) $3,000 in total to a candidate for a”

“(c) $3,000 in total to the leadership”

-- That Bill C-24, in Clause 25, be amended by replacing lines 16 and 17 on page 27 with the following:

“(a) $3,000 in total in any calendar year to all registered parties and their regis-”

(b) by replacing lines 20 and 21 on page 27 with the following:

“(b) $3,000 in total to all candidates for a particular election who are not the candidates”

Geoff Regan moved, -- That Bill C-24, in Clause 25, be amended by adding after line 29 on page 27 the following:

“(3) For the purposes of subsection (1), a contribution to a person who presents himself or herself as seeking the endorsement of a particular registered party shall be treated as a contribution referred to in paragraph (1)(a) to a candidate of that party and a contribution to a person who presents himself or herself as seeking to be a candidate not endorsed by any registered party shall be treated as a contribution referred to in paragraph (1)(b).”

After debate, the question being put on the amendment, it was adopted.

Gerald Keddy moved, -- That Bill C-24, in Clause 25, be amended by adding after line 29 on page 27 the following:

“405.01 Despite sections 404.1 and 405, a contribution in the form of services is permitted and is not a contribution for the purposes of this Act, except section 407, where it is from a corporation the majority of the shares of which are held directly or indirectly by an individual, or from an association in which the individual has an ownership interest;

(a) it is from a corporation the majority of the shares of which are held directly or indirectly by an individual, or from an association in which the individual has an ownership interest;

(b) the services are rendered wholly or largely through the skill and effort of that individual;

(c) the services are of a type, or are ancillary to a type, that is normally performed by that individual for or through the corporation or association; and

(d) the individual is not remunerated by the corporation or association for the performance of the particular services contributed.

405.02 Despite section 404.1, a non-monetary contribution by a corporation or trade union is permitted and is not a contribution for the purposes of this Act, except section 407, where it has a commercial value of less than $200.”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 1; NAYS, 8.

Geoff Regan moved, -- That Bill C-24, in Clause 25, be amended by

(a) replacing line 32 on page 27 with the following:

“subsections 404.1(1) and 405(1) and paragraph 405.3(2)(b), in effect for”

(b) replacing line 8 on page 28 with the following:

”404.1(1) and 405(1) and paragraph 405.3(2)(b) shall be multiplied by the”

”(a) in the cases referred to in paragraphs 404.1(1)(a) and 405(1)(a) and subparagraph 405.3(2)(b)(i), during”

(d) replacing lines 16 and 17 on page 28 with the following:

“(b) in the cases referred to in paragraphs 404.1(1)(b) and 405(1)(b) and subparagraph 405.3(2)(b)(ii), with respect to an election whose”

(e) replacing line 32 on page 28 with the following:

”405(1) or paragraph 405.3(2)(b); or”

After debate, the question being put on the amendment, it was adopted.

Geoff Regan moved, -- That Bill C-24, in Clause 25, be amended by adding after line 4 on page 29 the following:

“(4) No person or entity shall enter into an agreement for the provision for payment of goods or services to a registered party or a candidate that includes a term that any person will make a contribution, directly or indirectly, to a registered party, a registered association, a candidate, a leadership contestant or a nomination contestant.”

After debate, the question being put on the amendment, it was adopted.

Joe Jordan moved, -- That Bill C-24, in Clause 25, be amended by deleting lines 12 to 39 on page 29 and lines 1 to 15 on page 30.

By unanimous consent, the amendment was withdrawn.

Gerald Keddy moved, -- That Bill C-24, in Clause 25, be amended by replacing lines 18 and 19 on page 29 with the following:

“tered party, a registered association, a nomination contestant, a candidate or a leadership contestant;”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 1; NAYS, 11.

Geoff Regan moved, -- That Bill C-24, in Clause 25, be amended by

(a) replacing lines 20 to 23 on page 29 with the following:

“(b) the contributions do not exceed

(i) $1,000 in total in any calendar year to the recipients referred to in paragraph (a) of a particular registered party, and “

(ii) $1,000 in total to a candidate for a particular election who is not the candidate of a registered party; and”

(b) adding after line 35 on page 29 the following:

”(2.1) Despite subparagraph (2)(b)(i), if two elections are held in an electoral district in a calendar year and an association has, before the polling day of the first election, made a contribution under that subparagraph to the registered association, the nomination contestants and the candidate of a particular registered party in that electoral district, the association may make contributions not exceeding $1000 in total to the registered association, the nomination contestants and the candidate of the registered party in that electoral district during the election period for the second election.

(2.2) An association may make contributions under subsection (2.1) in respect of the registered association, the nomination contestants and the candidate of any particular registered party in only one electoral district in any calendar year.

(2.3) Despite subparagraph (2)(b)(i), if an association has in any calendar year made a contribution under that subparagraph to an individual who is a nomination contestant in an electoral district in a nomination contest held in that year but who is not endorsed by the registered party as its candidate, the association may during that year make contributions not exceeding $1000 in total to the endorsed candidate after he or she is endorsed.

(2.4) An association may make contributions under subsection (2.3) in respect of the candidate of any particular registered party in respect of only one election and in only one electoral district in any calendar year.”

After debate, the question being put on the amendment, it was adopted.

Gerald Keddy moved, -- That Bill C-24, in Clause 25, be amended by replacing lines 28 to 35 on page 29 with the following:

“who is responsible for the association, and (ii) the amount of the contribution.”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 2; NAYS, 8.

The Chair ruled that the following amendment was consequential to the previous amendment and therefore it was also negatived:

-- That Bill C-24, in Clause 25, be amended by deleting lines 10 to 15 on page 30.

At 12:03 p.m., the sitting was suspended.

At 12:37 p.m., the sitting resumed.

Geoff Regan moved, -- That Bill C-24, in Clause 25, be amended by replacing line 20 on page 30 with the following:

“tion 405(1), 405.2(4) or 405.3(1), the chief agent of the registered”

After debate, the question being put on the amendment, it was adopted.

By unanimous consent, Clause 25 was stood.

Clause 26 carried.

Clause 27 carried.

New Clause 27.1,

Geoff Regan, -- That Bill C-24 be amended by adding after line 10 on page 31 the following:

“27.1 The Act is amended by adding the following after section 409:

409.1 Any expenses of a candidate that are incurred to remunerate the candidate's representatives referred to in subsection 136(1) are deemed to be personal expenses of the candidate.”

After debate, the question being put on the amendment, it was adopted.

Clause 28 carried.

Clause 29 carried.

Clause 30 carried.

Clause 31 carried.

On Clause 32,

Gerald Keddy moved, -- That Bill C-24, in Clause 32, be amended by deleting lines 37 to 45 on page 32.

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 2; NAYS, 6.

Clause 32 carried.

On Clause 33,

Geoff Regan moved, -- That Bill C-24, in Clause 33, be amended by replacing, in the English version, lines 15 and 16 on page 33 with the following:

“deemed to be a contribution to the registered party of the unpaid amount on the day on which the expense was incurred.”

After debate, the question being put on the amendment, it was adopted.

After debate, Clause 33, as amended, carried.

By unanimous consent, Clause 34 was stood.

New Clause 34.1,

Geoff Regan moved, -- That Bill C-24 be amended by adding after line 38 on page 34 the following:

“34.1 The Act is amended by adding the following after section 424:

424.1 (1) The chief agent of a registered party that is entitled under subsection 435.01(1) to a quarterly allowance shall, for each quarter of the fiscal period of the party, provide the Chief Electoral Officer with a return that includes the information required under paragraphs 424(2)(a) to (c), (h.2) and (k).

(2) A quarterly return shall be provided within 30 days after the end of the period to which it relates.”

After debate, the question being put on the amendment, it was adopted.

The Chair ruled that the following amendments were consequential to the previous amendment and therefore they were also adopted:

-- That Bill C-24, in Clause 40, be amended by replacing lines 30 to 35 on page 36 with the following:

“(2) If a registered party has not provided all the documents that it is required to provide under sections 424, 424.1 and 429, the Chief Electoral Officer shall postpone providing the certificate for any quarter until the party has provided those documents.”

-- That Bill C-24, in Clause 58, be amended by adding after line 41 on page 80 the following:

“(3.1) Subsection 497(1) of the Act is amended by adding the following after paragraph (m):

(m.1) being a chief agent, contravenes section 424.1 (failure to provide quarterly return);”

-- That Bill C-24, in Clause 58, be amended by adding after line 37 on page 86 the following:

“(11.1) Subsection 497(3) of the Act is amended by adding the following after paragraph (i):

(i.1) being a chief agent, wilfully contravenes section 424.1 (failure to provide quarterly return);”

By unanimous consent, the Committee reverted to the following amendment that was stood:

-- That Bill C-24, in Clause 14, be amended by replacing line 33 on page 5 with the following:

“(h) a quarterly statement required by subsection”

By unanimous consent, the amendment was withdrawn.

By unanimous consent, the Committee reverted to Clause 34 that was stood.

Clause 34 carried.

By unanimous consent, Clause 35 stood.

Clause 36 carried.

Clause 37 carried.

Clause 38 carried.

Clause 39 carried.

On Clause 40,

Ted White moved, -- That Bill C-24, in Clause 40, be amended by replacing line 8 on page 36 with the following:

“(b) an average equal to 5% of the number of valid votes cast in”

After debate, the question being put on the amendment, it was negatived by a show of hands: YEAS, 3; NAYS, 6.

Dick Proctor moved, -- That Bill C-24, in Clause 40, be amended by adding after line 23 on page 36 the following:

“(5) The fund mentioned in subsection (2) shall be inflation indexed based on the federal government index measurement that is annually provided and based on an amount of $0.375 per valid vote.”

The Chair ruled the amendment inadmissible as the fund comes from the public treasury and this change would require a royal recommendation.

Geoff Regan moved, -- That Bill C-24, in Clause 40, be amended by replacing line 5 on page 39 with the following:

“tions and to incur and pay leadership campaign expenses”

After debate, the question being put on the amendment, it was adopted.

At 1:36 p.m., the Committee adjourned to the call of the Chair.

Jean-Michel Roy

Legislative Clerk