Disclosure Legislation

New Campaign Financing and Disclosure Legislation

On April 22, 2010, the Province passed amendments to the Local Authorities Election Act, R.S.A. 2000, c. L-21 which affect municipal campaign financing and disclosure. School board candidates are not subject to these rules.

The new legislation creates obligations with respect to:

Campaign Contributions
Self Funded Campaigns
Contribution Limits
Contributors
Accounting Responsibilities
Surplus Campaign Funds

This new legislation is binding on all candidates running for a Council seat in this election. Failure to comply with this legislation could result in significant penalties payable by both candidates and contributors. It is imperative that all candidates familiarlize themselves with this legislation. Candidates are responsible for ensuring that their campaign complies with all provincial legislation. This information is not intended to serve as a legal document but only provides general information about the disclosure requirements. The information is not a replacement for consulting the actual legislation or obtaining independent legal advice.

Campaign Contributions
Campaign contributions include money, personal property, real property, or services provided to a candidate at less than fair market value, but does not include volunteer services provided to the campaign.

Local Authorities Election Act, s. 147.1(1)(a)

Self Funded Campaigns
If a candidate funds his or her campaign entirely from his or her funds, to the maximum allowable amount being 10,000 during the campaign period, the candidate does NOT have to:

  • open a bank account for campaign contributions and expenses OR
  • file a Campaign Disclosure Statement

Local Authorities Election Act, s. 147.11

NOTE: If you self-fund your campaign, please complete and forward the signed original Self-funded Campaign - Voluntary Statement to Legislative and Legal Services, on or before March 1, 2011, to avoid being noted as having failed to provide the Campaign Disclosure Statement. The Manager of Legislative and Legal Services has no way of knowing that you self-funded your campaign without written notice from you.

Contribution Limits
Any person, corporation, employee organization or union may donate up to $5,000 to your campaign per calendar year during the campaign period, but cannot make those contributions retroactively. You may contribute $10,000 to your own campaign during the entire campaign period. The campaign period for the 2010 municipal election runs from January 1, 2008 to December 31, 2010.

Candidates may contribute up to maximum of $10,000 to their own campaigns for the entire campaign period. Please be aware of the following points about contribution limits:

  • the $5,000 limit applies to a trade union as a whole – not individual locals
  • the $5,000 limit applies to all corporations which are considered to be “associated” for Income Tax purposes. Corporations may be considered “associated” if:
    • one of the corporations directly or indirectly in any manner controls the other
    • both of the corporations are controlled directly or indirectly in any manner by the same person or group of persons
    • each corporation is directly or indirectly controlled by a related person, or group of related persons, and each of them own 25 percent of the shares of the corporations
    • each of the corporations is directly or indirectly controlled by a related group, and all members of the group are related to one another and one or more of the members of the group own 25 percent of the shares of each corporation

Local Authorities Election Act, s. 147.2, Income Tax Act (Canada) s. 256

WARNING:

  • Candidates and non-corporate contributors who break these rules may be found guilty of an offence punishable by a fine of up to $5,000. If a corporation breaks these rules, it may be liable for a $10,000 fine.

Local Authorities Election Act, s. 147.2(4) and 147.2(5)

Contributors
You may accept campaign contributions, subject to the dollar limits set by law, from any Alberta resident or an eligible corporation, employee organization or union operating in Alberta. Corporations, unions and employee organizations are defined in the legislation.

You may NOT accept contributions from:

  • people who do not reside in Alberta
  • “anonymous” contributors – all contributors must be identified and a receipt issued for the contribution
  • a corporation that does not carry on business in Alberta
  • a municipality
  • a non-profit organization that received grants or property from this municipality after the last election
  • a provincially owned or operated corporation as defined in the Financial Administration Act, R.S.A. 2000, c. F-12
  • the management body of a housing authority
  • Métis settlement
  • school board
  • a trade union which does not hold bargaining rights in Alberta
  • an employee organization which is not resident in Alberta

Local Authorities Election Act, s. 147.2 and 147.1(1)

WARNING:

  • Contributions accepted in contravention of these rules must be re-paid to the contributor. If the contributor cannot be located, the value of the contribution must be immediately paid to Strathcona County, Legislative and Legal Services department. A letter explaining why the contribution is being sent to the County must accompany the contribution.
  • Candidates and non-corporate contributors who break these rules may be found guilty of an offence punishable by a fine of up to $5,000. If a corporation breaks these rules, it may be liable for a $10,000 fine.

Local Authorities Election Act, s. 147.2(3),147.2(4) and 147.2(5)147.3(1)(i) and 147.3(j)

Accounting Responsibilities
All candidates are responsible for accounting for all funds used or spent on their campaign. Candidates must:

  • Open a campaign account at a financial institution for the purposes of the election campaign and in the name of the candidate’s election campaign
  • Deposit all campaign contributions to that account, and use it for all campaign expenses.
  • Assign a value to every campaign contribution received (including personal property, real property or services other than volunteer services)
  • Issue a receipt for every contribution
  • Obtain a receipt for every expense including:
    • actual personal expenses of the candidate
    • cost of acquiring premises, accommodation, goods or services used for proper election campaign purposes
    • bona fide payments for the fair cost of printing and advertising
    • reasonable and ordinary payment to any person for hiring transportation used by the candidate to travel to and from public meetings, or by any person for proper election purposes
  • Keep a record of all contributions for a single person or other source that totals more than $100, including the name and address of the contributor
  • File the Campaign Disclosure Statement and Financial Statement with Strathcona County, Legislative and Legal Services on or before March 1, 2011. Candidates must complete the regulated form which asks for the following information:
    • The total value of campaign contributions that were less than $100 which were received during the campaign
    • The list of contributors whose contributions totalled more than $100, along with their name and address
    • The total amount the candidate contributed to the campaign from his or her own funds
    • The total amount of any campaign surplus worth more than $500, including surpluses from previous elections
    • A financial statement showing the total revenue and expenses for the campaign
  • File an additional statement if the candidate learns or an error or omission in the original statement
  • Keep receipts for all campaign contributions and expenses for 2 years following the date on which the disclosure statements were required to be filed. 2010 Election Campaign Disclosure Statements are due on March 1, 2011. All receipts must be kept until March 2, 2013.
  • Return anonymous contributions to the contributor. If it cannot be returned to the contributor, it must be paid to the County

Local Authorities Election Act, s. 118(1), 147.3 and 147.4

NOTE: The prescribed form (Disclosure Statement) has not yet been provided by the Province of Alberta.

Audited statements are not required. Candidates are only required to provide the information required by the provincial government form.

WARNING:

  • Failure to file the candidate’s Campaign Disclosure Statement must be reported to Strathcona County Council and to the public
  • There is a 30 day grace period for filing the Campaign Disclosure Statement, but if it is filed late, the Candidate must pay the County a late filing fee of $500 at the time of filing
  • If a candidate fails to file a Disclosure Statement and wins the election, he or she may be disqualified from holding office unless he or she is relieved from the obligation to file their Campaign Disclosure Statement by the Court of Queen’s Bench of Alberta
  • Candidates who break these rules may be found guilty of an offence punishable by payment of a $5,000 if convicted

Municipal Government Act, R.S.A. 2000, c. M-26, s. 174(1)(b)
Local Authorities Election Act, s. 147.7 and 147.8

Surplus Campaign Funds

  • On December 1, 2011, candidates must pay any campaign funds held by them in excess of $500, including any surpluses from previous elections, to the County. All payments must be made at Legislative and Legal Services.
  • The County will deposit the candidate’s surplus funds to a trust account. It will be repaid to the candidate with a regulated rate of interest, when he or she files nomination papers in the next election.
  • If the candidate decides not to run again, he or she may direct the Chief Administrative Officer to donate surplus election funds to a registered charity. Candidates may provide this direction to the Chief Administrative Officer after the election in October of 2013, but must do so no later than 6 months after the 2013 election. If no direction is received, the surplus funds become County property.

Local Authorities Election Act, s. 147.5, 147.6, 147.91, 147.92

WARNING:

  • Failure to pay funds to the County as required is an offence punishable by payment of a $5,000 fine upon conviction

Local Authorities Election Act, s. 147.7

Last updated: Tuesday, May 08, 2012
Page ID: 6778

County Hall: 2001 Sherwood Drive, Sherwood Park, Alberta, Canada T8A 3W7