Clause 4 amends section 204K of the principal Act to update the reference to the provision in which overseas person is defined. The definition of overseas person now appears in section 207(2) (see clause 5(5)).

Clause 5 amends section 207 of the principal Act, which is an interpretation provision. Definitions for 2 new terms, New Zealand person and overseas person, are inserted. The definition of overseas person is taken from existing section 207K(1) and is defined for the purposes of subpart 3 to 6 of Part 6A of the principal Act. New Zealand person is defined as a person who is not an overseas person. The definitions of candidate donation and party donation are also amended to distinguish between goods and services provided by a New Zealand person and goods and services provided by an overseas person. Currently, if goods or services are provided to a candidate or party at a value less than their reasonable market value (being a value that exceeds $300 in the context of a candidate donation or $1,500 in the context of a party donation) the difference between the 2 values is treated as a donation. The effect of the above distinction is that while the current position will continue to apply to goods and services provided by a New Zealand person, for goods and services provided by an overseas person, the reasonable market value threshold decreases to $50. This means that only goods or services provided by an overseas person to a candidate or party having a reasonable market value of less than $50 will be excluded as a candidate donation or party donation. Similarly, goods or services provided by a New Zealand person to a candidate or party free of charge are not a candidate or party donation if their reasonable market value is not greater than $300 and $1,500, respectively, but in the case of goods or services provided by an overseas person free of charge to a candidate or party this threshold decreases to $50.

Clause 6 amends section 207C of the principal Act to require that, in the case of a donation funded from contributions, the donor must identify all contributors who are overseas persons and who are contributing more than $50 in sum or value. Contributors who are New Zealand persons need only be identified if they contribute more than $1,500 in sum or value.

Clause 7 replaces section 207I of the principal Act, which deals with anonymous donations. New section 207I provides that, if a candidate or party receives an anonymous donation, that donation or its value must be paid to the Electoral Commission less $50 if the candidate or party believes, or has reasonable grounds to suspect, that the donation was received from an overseas person and the donation exceeds $50. In any other case, the donation or its value must be paid to the Electoral Commission less $1,500. All amounts received by the Electoral Commission must be paid into a Crown Bank Account.

Clause 8 inserts new section 207JA into the principal Act, which imposes a duty on candidates and party secretaries to take all reasonable steps in the circumstances to ascertain whether a donation (not being an anonymous donation) that exceeds $50 is made by an overseas person, or includes a contribution from an overseas person. If a candidate or party secretary ascertains that a donation, or contribution to a donation, was made by an overseas person, or that there are reasonable grounds to suspect that a donation or contribution to a donation was made by an overseas person, the candidate or party secretary must comply with section 207K.

Clause 9 amends section 207K of the principal Act to provide that donations from an overseas person may not exceed $50. Amounts above this threshold must be returned by a candidate or party to the donor or, if this is not possible, paid to the Electoral Commission. If an overseas person contributes more than $50 to a donation, the total amount of the donation or its value must be returned by a candidate or party to the donor or, if this is not possible, paid to the Electoral Commission.

Clause 10 amends section 207L of the principal Act to provide that if a candidate or party secretary is charged with contravening section 207K, it is a defence to that charge if the candidate or party secretary proves that they took all reasonable steps in the circumstances to ascertain that the donation or contribution was not made by or on behalf of an overseas person, or that there were no reasonable grounds to suspect that the donation or contribution was made by or on behalf of an overseas person.

Clause 11 amends section 208A of the principal Act to provide that an overseas person may not make a donation that is protected from disclosure under subpart 4 of Part 6A of the principal Act.

Clause 12 amends section 208D of the principal Act to provide that if the Electoral Commission believes, or has reasonable grounds to believe, that a donation, or contribution to a donation, is received under section 208A from an overseas person, the Commission must return the donation to the donor or, if this is not possible, pay the amount of the donation into a Crown Bank Account. A donation paid into a Crown Bank Account will be included in the Electoral Commission’s report required under section 208G.

Clause 13 amends section 209 of the principal Act relating to returns of candidate donations. Section 209(1)(b), which requires that a return include details of contributors contributing more than $1,500 to a donation, is amended to clarify that it applies only in respect of contributions made by New Zealand persons. Details of contributions received from overseas persons are required by section 209(1)(e). Section 209(1)(c) is amended to provide that the details required in respect of anonymous donations must separately specify those donations suspected of being received from overseas donors. Section 209(1)(d) and (e), which relates to donations and contributions received from overseas persons, is amended to reduce the $1,500 threshold to $50.

Clause 14 amends section 210 of the principal Act relating to the annual returns of party donations. The amendments parallel those made to section 209 (see clause 13). Section 210(6A)(b) is also repealed, with the effect that parties will not be required to separately return the number of overseas party donations received of an amount less than $50, and the total amount of all such donations.

Clause 15 amends section 3 of the principal Act to move the definition of party secretary to new section 3EA (see clause 16).

Clause 16 inserts new section 3EA into the principal Act, which defines party secretary. A party secretary is required to live in New Zealand, but otherwise the existing definition is unchanged.

Clause 17 amends section 221A of the principal Act relating to electoral advertisements. The scope of section 221A is broadened to cover publishing and broadcasting in all mediums, including electronic mediums. However, excluded from the scope of this provision are personal political views published in an electronic medium by an individual who does not make or receive a payment in respect of the publication, and also the editorial content of a publication on a news media Internet site.