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R00 INTRODUCTION TO REFERENDUM GUIDELINES

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									R00                                              Guidelines for Referendum Campaign Organizers
                                                                                     July 2007




R00: INTRODUCTION TO REFERENDUM GUIDELINES

Introduction
This information package is provided to assist those individuals and organizations
who seek to promote a particular result in Ontario’s electoral system referendum
vote on October 10, 2007 in conjunction with the polling day for the general
election.

The Chief Electoral Officer has responsibility for the administration of the
referendum required by the Electoral System Referendum Act, 2007 (“ESRA,
2007”) to ensure the process is fair, transparent, and accessible for all Ontarians
who want to participate in the referendum debate.

The guidelines are intended to assist referendum campaign organizers and their
chief financial officers in meeting the registration and reporting requirements of
Ontario Regulation 211/07 made under ESRA, 2007.

In particular, the guidelines deal with registration, contribution, campaign
advertising, and reporting rules.
These guidelines are made under the authority of the Electoral System
Referendum Act, 2007.


Table of Contents

SECTION 1

The Electoral System Referendum Act, 2007 and the Ontario Regulation 211/07


SECTION 2

Guideline R01       Application for Registration as a Referendum Campaign
                    Organizer (“RCO”)

Guideline R02       Change in Registration Information

Guideline R03       Use of a Registered Referendum Campaign Organizer’s
                    (“RRCO”) Own Funds

Guideline R04       Rules on Contributions

Guideline R05       Referendum Advertising

Guideline R06       Referendum Period Advertising Report

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Guidelines for Referendum Campaign Organizers                                          R00
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SECTION 3

Registration Form RCO-1 Referendum Campaign Organizer

Reporting Form RAR-1                Referendum Advertising Report

Appendix A                          Determination of Carrying on Business in Ontario
                                    Requirement for Corporate Contributions
Disponible aussi en français




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R01                                                     Guidelines for Referendum Campaign Organizers
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R01: REFERENDUM CAMPAIGN ORGANIZER –
APPLICATION FOR REGISRATION
.01         Every person or entity spending $500 or more on referendum advertising
            to solicit votes in favour of a particular result, or to promote a particular
            result, during the referendum period must register with the Chief Electoral
            Officer. That registration will disclose the name, address and other
            identifying information of the registrant. Where an entity has a governing
            body then a copy of a resolution from that body authorizing the
            referendum campaign organizer to incur referendum advertising expenses
            must be included with the application.

            There is an exception to the registration requirement where the
            referendum campaign organizer is spending less than $500 to solicit votes
            or promote a particular result.

            The Chief Electoral Officer may refuse to register a referendum campaign
            organizer where their name or nickname may cause confusion with the
            name or nickname of a registered referendum campaign organizer
            registered under the ESRA, 2007; a third party registered under the EFA
            or a candidate, political party or political organization active anywhere in
            Canada.

            A political party or constituency association registered under the Election
            Finances Act may not be registered as a referendum campaign organizer.

            O. Reg. 211/07 reference 4

.02         A referendum campaign organizer who files an application for registration,
            form RCO-1, with the Chief Electoral Officer:

            •      prior to September 10, 2007 is deemed to be registered effective
                   from September 10, 2007, providing the application is approved

            •      after September 10, 2007 is deemed to be registered the day the
                   application is received at the offices of the Chief Electoral Officer,
                   providing the application is approved. The form may be submitted
                   by fax or similar method of electronic transmittal

            •      an application for registration forwarded by registered mail to the
                   Chief Electoral Officer after September 10, 2007 is deemed to have
                   been filed on the day it is mailed, providing the application is
                   approved




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Appointment of a Chief Financial Officer (CFO)
.03      Every referendum campaign organizer must appoint a CFO before
         applying to register with the Chief Electoral Officer. The following persons
         are not eligible to be a CFO of a referendum campaign organizer:

         •        The CFO or auditor of a candidate, party, constituency association,
                  leadership contestant or third party registered under the EFA.
                  (Despite this requirement, a third party registered under the EFA
                  and a referendum campaign organizer registered under the ESRA,
                  2007 may have the same CFO where the referendum campaign
                  organizer and the third party are the same person or entity.)

         •        A returning officer, deputy returning officer or election clerk

         O. Reg. 211/07 reference 5

.04      The Chief Electoral Officer provides the Referendum Campaign Organizer
         Registration and Change Notice Form RCO-1 for organizers applying for
         registration. It is important to submit complete information for all points on
         the application. The RCO-1 application form is included in this information
         package.

.05      It is the CFO's responsibility to ensure that the requirements of the
         Electoral System Referendum Act, 2007 and Ontario Regulation 211/07
         are met, including that:

         •        the necessary financial records of referendum advertising
                  contributions and referendum advertising expense are kept

         •        that monies received are placed in the appropriate depository on
                  record with the Chief Electoral Officer

         •        that contributions of goods or services are valued and reported as
                  both contributions and expenses

         •        that every referendum advertising expense incurred for a
                  referendum campaign organization is authorized

         •        the prescribed referendum advertising report is filed with the Chief
                  Electoral Officer

         •        that, where the referendum advertising expenses are $5,000 or
                  more, the report has been audited

         O. Reg. 211/07 references 5, 6, 9




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R02                                                   Guidelines for Referendum Campaign Organizers
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R02: CHANGE IN REGISTRATION INFORMATION
.01         When the registered referendum campaign organizer’s CFO or auditor
            ceases for any reason to hold office, the registered referendum campaign
            organizer shall immediately appoint another CFO or auditor and shall
            immediately inform the Chief Electoral Officer in writing of the name,
            address and telephone number(s) of the new CFO or auditor, by filing an
            amended Referendum Campaign Organizer Registration and Change
            Notice Form RCO-1.

            O. Reg. 211/07 references 4(4), 6(5)

.02         Where there has been a change in CFO, the person accepting the
            appointment should receive the following documents from the retiring
            CFO:

            •     the Chief Electoral Officer's Guidelines for Chief Financial Officers

            •     all financial records of the particular referendum campaign

            If these documents are not provided, the new CFO should write and
            advise the Chief Electoral Officer accordingly.




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R03                                                    Guidelines for Referendum Campaign Organizers
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R03: USE OF AN ORGANIZER’S OWN FUNDS
.01         When a registered referendum campaign organizer’s own monies are
            used for that organizer’s referendum campaign advertising expenses
            those monies must be recorded and reported in the referendum
            advertising report.

            O. Reg. 211/07 reference 14(4) (c)

.02         Once the referendum period has begun on September 10, 2007, a
            referendum campaign organizer that spends $500 or more of their own
            funds on referendum advertising expenses must register with the Chief
            Electoral Officer.

            O. Reg. 211/07 references 3(1), 3(2) (b)




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R04                                                   Guidelines for Referendum Campaign Organizers
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R04: RULES ON CONTRIBUTIONS

General
.01         The Electoral System Referendum Act, 2007 and Ontario Regulation
            211/07 contain a number of important requirements regarding acceptance
            of contributions on behalf of a registered referendum campaign organizer.
            The CFO of a registered campaign should become completely familiar
            with these provisions. Particular note should be made of the recording
            requirements for contributions in Guidelines R04.20 to R04.26 and the
            contribution reporting period of July 10, 2007 to January 10, 2008.

            O. Reg. 211/07 reference 9 (1)


Who May Contribute
.02         Contributions may be accepted on behalf of a registered referendum
            campaign organizer only from the following individuals or organizations:

            •     a person who is normally resident in Ontario

            •     a corporation that is not a registered charity and that carries on
                  business in the Province of Ontario. Many corporations carry on
                  business through subsidiaries and affiliated companies. Provided
                  each carries on an active business in Ontario each corporation
                  qualifies as a contributor

            •     a trade union as defined by the Labour Relations Act or the Canada
                  Labour Code that holds bargaining rights for employees in the
                  Province of Ontario to whom those Acts apply, including central,
                  regional or district labour councils located in the Province of
                  Ontario.

            There are notable exceptions to who may contribute. Care should be
            taken not to accept contributions from:

            •     a corporation that is a registered charity

            •     charitable organizations

            •     corporations which do not qualify (Appendix A)

            •     Members of the House of Commons domiciled in Ontario but
                  representing an electoral district outside of the Province of Ontario.

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Guidelines for Referendum Campaign Organizers                                    R04
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         O. Reg. 211/07 reference 10 (1)

.03      Contributions may be made to a registered referendum campaign through
         an unincorporated association or organization provided the unincorporated
         association or organization meets certain requirements. Many small
         businesses such as retail and repair shops are unincorporated.
         Partnerships and joint ventures are also examples of unincorporated
         associations or organizations. In order for the contribution to be
         acceptable, the unincorporated association or organization must provide a
         written list of the name and address of each particular person, corporation
         or trade union that was the ultimate source of the contribution and the
         amount contributed by each to the CFO of the referendum campaign.

         O. Reg. 211/07 reference 11

         For example, the Monday Afternoon Bridge Club, an unincorporated club,
         wishes to contribute $1,500 to a registered campaign. This contribution
         must be broken down into its particular sources and amounts. For
         instance, $500 may have come from Mr. A, $500 from Mrs. B, $300 from
         Mr. C and $200 from Ms. D who are some or all of the club's members.
         The CFO of the registered campaign must have this information in writing
         before accepting the contribution.

         Another example would be a contribution from the partners of a
         professional partnership such as a firm of chartered accountants, lawyers,
         dentists etc. This contribution too must be broken down into its particular
         sources and amounts as in the first example. The CFO again must have
         the information in writing before accepting the contribution.

         A further example of an unincorporated organization is a business, which
         is organized as a partnership, and not as a limited company such as Bob
         and Joe's Garage which is a partnership of Bob X and Joe Z. The CFO
         must be very careful to determine that this is indeed an unincorporated
         business. As with the first example, the CFO must have the information
         regarding the partners and the amounts of their contributions in writing
         before accepting the contribution.

         Joe’s Garage may be a sole-proprietorship of Joe Z. The contribution
         would be recorded as a contribution from the individual, Joe Z, carrying on
         business (“COB”) as Joe’s Garage and not simply a contribution from
         Joe’s Garage.

         And lastly, income trusts, such as a Real Estate Investment Trust (REIT),
         must provide a list of the members of the trust that participated in the
         contribution and at what amount.

.04      A contribution may only be made in the contributor's own funds. Where a
         contribution is made on behalf of a contributor by a trustee or a person

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R04                                                    Guidelines for Referendum Campaign Organizers
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            holding a power of attorney, the cheque must have the name of the
            beneficiary, who is the real contributor, legibly printed thereon. Where the
            printed cheque does not contain the beneficiary's name, for example,
            "John Doe in Trust", the beneficiary's name must be legibly added, for
            example, "John Doe in Trust for Mary Smith". Also, the cheque must be
            drawn on an account in the name of the beneficiary and not the trustee.
            Therefore, a cheque drawn on a lawyer's general trust account would not
            meet this requirement of the Electoral System Referendum Act, 2007.

.05         Anonymous contributions, contributions from unidentifiable or anonymous
            sources, contributions from sources other than those permitted under
            Guideline RO4.02, cash contributions in excess of $25, and contributions
            of funds not belonging to the contributor except as mentioned in Guideline
            RO4.03 received by the referendum campaign’s CFO must not be used or
            expended by the referendum campaign for referendum advertising
            purposes.

            O. Reg. 211/07 reference 10(2), 13(1)


Who May Accept Contributions
.06         The CFO or other authorized persons on record with the Chief Electoral
            Officer may accept contributions for the registered referendum campaign.
            Therefore, any contributions, which are collected by others, for example,
            by means of a door-to-door canvass, must be turned over immediately to
            the referendum campaign’s CFO or other persons on record with the Chief
            Electoral Officer, along with a list of the names and addresses of the
            contributors and the amounts of their individual contributions.

            While the Electoral System Referendum Act, 2007 permits other
            authorized persons on record to accept contributions, it is the CFO's
            responsibility to ensure that contributions in excess of $25 are by way of a
            cheque drawn on the contributor's own bank account, a money order
            signed by the contributor or by way of a charge on the individual
            contributor's credit card, and that contributions by unincorporated
            associations or organizations are accompanied by a list of those persons
            sharing in the contribution and the amount contributed by each.

            O. Reg. 211/07 reference 4 (2), 5 (2)

.07         Where the registered referendum campaign organizer or CFO learns that
            any contribution has been made or accepted in contravention of any
            provisions of Ontario Regulation 211/07 such as, but not limited to:

            •      contributions from unidentifiable or anonymous sources



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Guidelines for Referendum Campaign Organizers                                             R04
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         •        contributions from sources other than those permitted under
                  Guideline R04.02

         •        cash contributions in excess of $25

         •        contributions of funds not belonging to the contributor except as
                  mentioned in Guideline R04. 03.

         Then the referendum campaign organizer must not use such a
         contribution for the purposes of referendum advertising.

         O. Reg. 211/07 references 10, 11, 12


Types of Contributions
.08      If a contribution to a registered referendum campaign consists of money
         and if the amount of the contribution exceeds $25, it must be made in one
         of the following ways:

         •        by cheque having the name of the contributor legibly printed
                  thereon, signed by the contributor and drawn on an account in the
                  contributor's name

         •        by money order signed by the contributor or

         •        in the case of monies contributed by an individual, by credit card
                  having the name of the individual imprinted or embossed thereon

         •        through a facilitating entity such as PayPal, provided the
                  transaction is effected using a credit card

         Note: Financial institution debit cards are not an acceptable form of contribution.


         O. Reg. 211/07 reference 12 (1)

.09      For purposes of recording a contribution for referendum advertising
         purposes, only the net amount of the donation is treated as a
         contribution. If any rebate is given, either in the form of money or of goods,
         in connection with the political contribution, then the value of that rebate
         must be subtracted from the amount of the donation in order to arrive at
         the net amount of the contribution.

         For example, if a contributor is offered a gift worth $25 for each $200
         donation, a contribution for only $175 is to be recorded. In the case of a
         fund-raising event, if the price of admission is $300 and includes a dinner



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R04                                                   Guidelines for Referendum Campaign Organizers
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            and complimentary liquor that costs $50, a contribution of only $250 is to
            be recorded.

            Should the contribution component of any charge exceed $25, the entire
            amount must be paid for by cheque, money order or credit card.

            O. Reg. 211/07 reference 12(1)

.10         Goods or services provided by a supplier to a registered referendum
            campaign organizer are to be considered a contribution.

            In every instance where goods or services have been provided for
            referendum advertising purposes a referendum advertising expense in the
            equivalent value is considered to have been incurred.

            The value of goods or services for the referendum advertising purposes of
            the Ontario Regulation 211/07 is deemed to be the lowest market price for
            similar goods or services at the time of their provision.

            For example, if a referendum campaign pays $150 for the printing of
            handbills, but the lowest market price available to other customers is
            $275, then the difference of $125 is deemed to be a contribution to the
            referendum campaign by the printer.

            O. Reg. 211/07 reference (1) (c)

.11         Voluntary labour is not considered to be a contribution to the registered
            referendum campaign.

            Any services performed voluntarily by an individual are not considered to
            be a contribution to the registered referendum campaign provided the
            individual does not receive from any source, pursuant to an arrangement
            with the individual's employer, compensation in excess of that normally
            received during the period this service is performed. Note that these must
            be services actually performed by the individual.

            O. Reg. 211/07 reference (1) (c)


Limits on Contributions
.12         There are no limits on the amount of contributions that can be made to a
            registered referendum campaign organizer for the purposes of referendum
            advertising. The referendum campaign period for acceptance of
            contributions ends January 10, 2008.




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Guidelines for Referendum Campaign Organizers                                        R04
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.13      While cash contributions are limited to $25 they are not anonymous, and
         the source of any referendum advertising contributions should be recorded
         for reporting purposes.

         O. Reg. 211/07 references 12, 14


Depositing, Recording and Reporting of Contributions
.14      All monies accepted on behalf of a registered referendum campaign
         organizer, including the campaign organizer’s own funds, to be used for
         the purposes of referendum advertising must be deposited in the financial
         institution on record with the Chief Electoral Officer. To facilitate audit
         examination of the records, duplicate deposit slips should be prepared for
         all financial institution deposits listing the names of the referendum
         advertising contributors.

         Cheques received from credit card institutions for credit card contributions
         accepted will be supported by contributor details in accounts submitted to
         the institution for payment.

         O. Reg. 211/07 reference 12 (2)

.15      For the purposes of recording and reporting contributions accepted by:

         •        cash, cheque or money order are considered to have been
                  accepted at the time such contributions are deposited in the
                  financial institution account on record with the Chief Electoral
                  Officer

         •        credit card vouchers are considered to have been accepted on the
                  date the credit card voucher is deposited or submitted by the CFO
                  to the credit card issuer for payment

.16      All contributions accepted during a referendum campaign period on behalf
         of a registered referendum campaign organizer for the purposes of
         referendum advertising must be recorded at the time of deposit by the
         registered referendum campaign organizer’s CFO as to that particular
         purpose. In addition, where such contributions, including goods, services
         or advertising, have a total aggregate value exceeding $100 from a single
         source, the CFO must also report the name and address and classification
         of the contributor and the amount and date of each contribution.

         To adhere to the requirement to record contributions for referendum
         advertising purposes the CFO must establish ledger accounts that
         designate monies and donations in kind contributed for the purposes of
         referendum advertising and those contributed for the general purposes of
         the referendum campaign organizer.

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R04                                                    Guidelines for Referendum Campaign Organizers
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            O. Reg. 211/07 reference 14 (4)

.17         All referendum advertising contributions which have been recorded during
            a referendum campaign period must be reported in the referendum
            advertising report to be filed with the Chief Electoral Officer by the
            registered referendum campaign organizer’s CFO no later than April 10,
            2008.

            O. Reg. 211/07 reference 14 (1)


Receipts for Contributions
.18         Contributions to registered referendum campaign organizers are not
            eligible for a political tax credit receipt. CFO’s may wish to use an informal
            receipt of their design to acknowledge contributions and to assist in the
            recording task.

            O. Reg. 211/07 reference 12(2)


Acceptance of Contributions
.19         If a cheque for a contribution is drawn on a joint personal bank account,
            the contribution should be recorded only for the person who signed the
            cheque. Where two people have signed a cheque drawn on a joint
            personal bank account, the CFO should determine who made the
            contribution and record the contribution accordingly.


Soliciting Contributions
.20         All literature and other communication used in connection with any
            solicitation of referendum advertising contributions by or on behalf of a
            registered referendum campaign must clearly identify the registered
            referendum campaign organizer as being the recipient or beneficiary of
            such contributions. Further, the solicitation must provide an opportunity for
            the donor to determine that the contribution is to be used only for the
            purpose of referendum advertising or that the contribution may be used for
            the discretionary purposes of the RCO. Donors who designate that their
            contribution only be used for referendum advertising purposes should also
            be informed that such contributions not so used are subject to a prorated
            refund from the RCO.




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Guidelines for Referendum Campaign Organizers                                    R04
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Prohibited Transfers and Loans
.21      Transfers of funds or goods and services among registered referendum
         campaign organizers are not permitted. Further, referendum campaign
         organizers cannot accept loans and transfers of funds or goods and
         services from political parties and constituency associations registered
         under the Election Finances Act or loans and transfers of funds or goods
         and services that result from contributions under the Election Finances Act
         to a registered candidate.




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R05                                                     Guidelines for Chief Financial Officers
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GUIDELINE R05: REFERENDUM ADVERTISING

General
.01   The Ontario Regulation 211/07 made under the Electoral System
      Referendum Act, 2007 defines referendum advertising as advertising
      during the referendum period in any broadcast, print, electronic or other
      medium that promotes a particular result in the referendum. Any person or
      entity spending $500 or more on referendum advertising must apply to
      register immediately with the Chief Electoral Officer as a registered
      referendum campaign organizer.

      Parties and constituency associations registered under the Election
      Finances Act are prohibited from registering as a referendum campaign
      organizer. There are authorization and reporting requirements for any
      referendum advertising that appears. In addition there is a blackout period
      for such advertising on polling day and the day before polling day. Also,
      there are restrictions on the rates that may be charged by broadcasting or
      publishing facilities for such advertising.

      O. Reg. 211/07 references 1, 3, 4, 14, 16, 17, 18


LIMITS ON TIME

.02   There is a blackout period imposed on the day before polling day and
      polling day, i.e. October 9th and 10th, 2007. Referendum advertising must
      end at midnight October 8, 2007.

      No broadcaster or publisher shall allow a referendum advertisement to
      appear during the blackout period.

      The prohibition against the publication of a referendum advertisement
      does not apply to:

      •     genuine news reporting

      •     the publication of referendum advertising, on polling day or the day
            before polling day, in a newspaper that is published once a week or
            less often and whose regular day of publication falls on that day

      •     a referendum advertisement on the Internet or in a similar
            electronic medium, if posted before and not altered during the
            blackout period


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          •         a referendum advertisement in the form of a poster or billboard, if
                    posted before and not altered during the blackout period

.03       However, this two day blackout period does not apply to:

          •         advertising of public meetings relating to the referendum

          •         announcing the location of referendum campaign organizer
                    headquarters

          •         advertising for volunteer referendum campaign workers

          •         announcing polling day services for electors

          •         any other matter respecting administrative functions of the
                    referendum campaign organizer

          provided that such advertisements, announcements and other matters are
          done in accordance with the guidelines of the Chief Electoral Officer.

          The Chief Electoral Officer has determined, therefore, that while it is
          permissible for such an advertisement or announcement to contain the
          name of the referendum campaign organizer or to include the logo of the
          referendum campaign organizer, a reference to the particular exempt
          service or activity listed in subsection 17 (5) of the regulations of the
          Electoral System Referendum Act, 2007 must constitute the
          dominant feature of such advertisement or announcement. Further,
          such advertisement or announcement must not contain any slogan, motto
          or other wording promoting the particular position of the referendum
          campaign organizer or opposing another referendum campaign
          organizer’s position, such as “Vote for MMP” (or FPTP), “On polling day
          make a choice to keep the system we have, “On polling day make a
          choice to change the system”, or “Pick MMP (or FPTP) on October 10th,
          etc.

          Note:        The two day blackout period does not apply to fund-raising advertising
                       provided the content of the advertisement conforms to this guideline.


          O. Reg. 211/07 reference 17




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REFERENDUM ACTIVITIES OF POLITICAL ENTITIES REGISTERED UNDER
THE EFA

.04   Political parties and constituency associations registered under the
      Election Finances Act are not permitted to register as a referendum
      campaign organizer so as to organize a campaign or advertise to promote
      or entreat on behalf of a particular referendum result. They are not
      permitted to explicitly promote or entreat on behalf of a particular
      referendum result. Advertising that contains slogans, mottos, or wording
      such as “Vote for MMP (or FPTP)”, “On polling day make the choice to
      keep the system we have, “On polling day make the choice to change the
      system”, or “Pick our party and MMP (or FPTP) on October 10th” is
      prohibited.

      However, political parties and constituency associations registered under
      the Election Finances Act are permitted to make fair public comment by
      discussing and advertising their policies and positions on the referendum
      and the referendum legislation. It is fair public comment for
      advertisements of their election platforms/policies to say, for example, “We
      support MMP (or FPTP)”, “If elected; we will introduce an electoral reform
      bill even if the 60 per cent threshold is not met”, “We will repeal the
      referendum law”, or, “We will respect whatever Ontarians decide”. Such
      advertising, which is no different from advertising in respect of other
      election issues, is governed by the requirements and limits found in the
      Election Finances Act.

      Although permitted to register separately as a referendum campaign
      organizer under the ESRA, 2007 and O.Reg. 211/07, a person registered
      as a candidate under the EFA must ensure that there is evidence of a
      clear separation of financial, advertising, and other activities between their
      campaign as a candidate and their campaign as a referendum campaign
      organizer.

      Whether or not they are registered as a referendum campaign organizer,
      persons who are candidates registered under the EFA:

      1.     cannot solicit election campaign contributions to be used to
             promote or entreat on behalf of a particular referendum result (such
             solicitation would be in contravention of the Election Finances Act)
             nor can they use their election campaign funds to promote or
             entreat on behalf of a particular referendum result (such use would
             be in contravention of the Electoral System Referendum Act, 2007
             and O. Reg. 211/07). As with parties and constituency associations,
             a candidate is permitted to discuss or publish his/her personal or
             party position on the referendum and the referendum legislation;
             and,


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          2.        must ensure that any referendum advertising they pay for (or
                    consent to) does not promote or oppose a registered party or the
                    election of a registered candidate. Such advertising would
                    constitute political advertising and would be governed by the
                    requirements and limits found in the Election Finances Act.

          O. Reg. 211/07 references 4, 6


LIMITS ON RATES TO BE CHARGED

.05       During the referendum period, no person or corporation shall charge a
          referendum campaign organizer, or any person, corporation or trade union
          acting with the referendum campaign organizer’s consent, a rate for
          making referendum advertising available in any broadcast, print, electronic
          or other medium that exceeds the lowest rate the person or corporation
          charges anyone else for the same amount of equivalent advertising space
          or time during the referendum period.

          O. Reg. 211/07 reference 18

.06       It is recognized that, in certain media, advertising rates may depend upon
          the volume of time or space purchased over the year. For the purposes of
          the Ontario Regulation 211/07 the lowest rate shall refer to the lowest rate
          available to any other customer purchasing advertising equivalent to the
          total volume of referendum advertising carried on by or on behalf of a
          registered referendum campaign organizer.


OTHER MATTERS

.07       Where a broadcasting facility may provide time without charge to
          registered referendum campaign organizers in accordance with the
          provisions of and regulations and guidelines under the Broadcasting Act
          (Canada), the provision of such free time to referendum campaign
          organizers shall not be considered to be a contribution or a referendum
          advertising expense for the purposes of the Ontario Regulation 211/07.

.08       Referendum advertising constitutes a contribution for the purposes of this
          Act if,

          •         it promotes a particular result and appears during the referendum
                    period

          •         it is provided or arranged for by a person, corporation or trade
                    union with the knowledge and consent of the registered referendum
                    campaign organizer and/ or the CFO of same


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      A referendum advertising contribution described above that is made
      during a referendum period constitutes a referendum advertising expense
      of the referendum campaign organizer’s position so promoted.

      O. Reg. 211/7 reference 1

.09   A publisher may publish any genuine news stories including interviews,
      commentaries, or other works prepared for and published by any
      newspaper, magazine or other periodical publication without charge to any
      referendum campaign organizer. The publication of such material is not
      considered to be referendum advertising under the Ontario Regulation
      211/07.

      A broadcasting facility may similarly broadcast genuine news stories
      subject, however, to the provisions of and regulations and guidelines
      under the Broadcasting Act (Canada).

      O. Reg. 211/07 reference 17 (4)

.10   Pre-referendum advertising literature purchased by a referendum
      campaign organizer for use after September 10, 2007 must be accounted
      for as a referendum advertising expense of the registered referendum
      campaign organizer.

.11   Promotion by a registered referendum campaign organizer by such means
      as menus, place mats, or shopping bags must be accounted for. Where
      the referendum advertising is simply added to an existing product used by
      a third party, such as menus or place mats by a restaurant or shopping
      bags by a super market, then the expense is the incremental cost of that
      advertising. Costs would include direct identifiable costs such as artwork
      and special dyes. However, when the product itself is distributed by the
      registered referendum campaign organizer, the entire cost of the product
      is a referendum advertising expense. For example, where the registered
      referendum campaign organizer distributes place mats or shopping bags
      to the public, the cost must be comparable to that charged to similar
      customers. All such advertising must bear proper authorization as referred
      to in Guideline R05.15.


AUTHORIZATION OF POLITICAL ADVERTISING

.12   During the referendum period of September 10, 2007 to October 10, 2007,
      all referendum advertising expenses incurred by a registered referendum
      campaign organizer must be approved by that organizer’s CFO.

      O. Reg. 211/07 reference 9 (2)



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Guidelines for Chief Financial Officers                                             R05
July 2007


.13       All pre-referendum and referendum period advertising including
          advertising in any broadcast, print, electronic or other medium, e.g. printed
          advertising, handbills, placards, posters, lawn signs and billboards and
          broadcast, telecast or Internet advertisements, shall bear or make
          reference to the name of the registered referendum campaign organizer,
          person, corporation or trade union authorizing the pre-referendum or
          referendum period advertising.

          No specific language is required for the authorization but it must be
          apparent what person or entity has caused the advertisement to appear
          and any other person or entity that has sponsored or paid for it.

          O. Reg. 211/07 reference 16




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R06                                                    Guidelines for Referendum Campaign Organizers
July 2007




R06: CAMPAIGN PERIOD ADVERTSING REPORT

General
.01         The CFO of every registered referendum campaign must file a referendum
            advertising report by April 10, 2008.


Appointment of Auditor
.02         Where referendum advertising expenses are $5,000 or more the
            registered referendum campaign organizer must without delay appoint an
            auditor licensed under the Public Accounting Act, 2004 or a firm whose
            partners resident in Ontario are licensed under that Act. Notice of this
            appointment along with the required auditor identity information must
            forthwith be provided to the Chief Electoral Officer.

            The following persons are not eligible to be an auditor for the referendum
            campaign organizer:

            •     the referendum campaign organizer’s CFO

            •     a person who signed the application for registration of the
                  referendum campaign organization

            •     a candidate as defined in the Election Finances Act

            •     a returning officer, deputy returning officer or election clerk

            •     the chief financial officer or auditor of a registered candidate, party,
                  constituency association, leadership contestant or third party as
                  defined in the Election Finances Act . (Exception: the auditor of a
                  third party may be the auditor of a referendum campaign organizer
                  where the referendum campaign organizer and the third party are
                  the same person or entity)

            O. Reg. 211/07 reference 6


The Registered Referendum Campaign Organizer’s Referendum
Advertising Report Form RAR-1
.03         The Chief Electoral Officer requires that all referendum advertising reports
            be filed in the form prescribed or approved by the Chief Electoral Officer.


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Guidelines for Referendum Campaign Organizers                                        R06
July 2007


         Many CFOs maintain computerized records of the information required by
         the statutory disclosure provisions and generate the statements from
         computers.

         CFOs who wish to use computer-generated information for the
         referendum advertising report must have the format approved by the Chief
         Electoral Officer prior to filing computer-generated statements.

         Computer-generated statements must contain all the required information
         in a format substantially similar to the Chief Electoral Officer's forms.


Filing Date
.04      The registered referendum campaign organizer’s referendum advertising
         report is due April 10, 2008.

.05      The Chief Electoral Officer will accept as on time, a referendum campaign
         period advertising report postmarked or courier receipted on or before
         April 10, 2008.

.06      The Chief Electoral Officer will not accept as filed financial statements
         which have any of the following deficiencies:

         •        report statements without the signed certifications of the CFO and
                  RCO/official

         •        report statements without the signed auditor's report where
                  referendum advertising expenses are $5,000 or more

         •        report statements without the required completed schedules


Completing the Referendum Campaign Organizer’s Referendum
Advertising Report – General
.07      The registered referendum campaign organizer’s referendum advertising
         report gathers all the information required for disclosure under the
         Electoral System Referendum Act, 2007 and also in a form that can be
         reported on by auditors when required. The form is set out as follows:

         •        address information of the referendum campaign organizer and the
                  CFO

         •        certifications signed by the referendum campaign organizer and the
                  CFO responsible for filing the referendum advertising report



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R06                                                   Guidelines for Referendum Campaign Organizers
July 2007


            •     income statements on referendum advertising contributions,
                  including goods and services contributions and the organizer’s own
                  funds

            •     expense statements on referendum advertising

            •     various supporting and disclosure schedules including the over
                  $100 contributor’s list

            •     the schedule of time and place of referendum advertising

.08         The supporting schedules are an integral part of the referendum
            advertising report. It is important that each schedule agrees with the
            primary statement.

.09         The form should be completed by typing or printing clearly. The
            referendum advertising report as filed will be photocopied for display at
            Elections Ontario. In addition, the report and the names and amounts of
            contributor’s over $100 will be available on the Elections Ontario website.
            You may wish to notify such contributors of this disclosure requirement.


Certification Of Chief Financial Officer
.10         This section must be completed by the CFO who is responsible for filing
            the referendum advertising report. The Chief Electoral Officer's staff needs
            to be able to contact CFOs in a timely manner during the review process.
            Therefore, please be sure to complete all contact information fields.


Report Of Referendum Campaign Period Income And Expenses
.11         This guideline clarifies and defines what items should go into each
            account reported in the report of referendum advertising.

            This statement should include all income received for referendum
            advertising purposes and expenses incurred for referendum advertising.


INCOME

            Contributions – Contributions accepted in the period from July 10, 2007
            to January 10, 2008 for the purposes of referendum advertising should be
            reported in this account. This includes monies contributed as well as
            contributions of goods or services.




                                              23
Guidelines for Referendum Campaign Organizers                                      R06
July 2007


         Registered Referendum Campaign Organizer’s Own Funds – The
         amount paid out of the RRCO’s own funds for referendum advertising
         expenses.

         Designation of Contributions and Organizer’s Own Funds for
         Referendum Advertising Purposes – There is a requirement to establish
         ledger accounts to designate, at the time of deposit, monies and
         donations in kind contributed for the purposes of referendum advertising
         and those contributed for the general purposes of the referendum
         campaign organizer.


Schedule 2 – Contributions

PART I – CONTRIBUTIONS

.12      Contributions for referendum advertising purposes must be broken down
         into separate totals:

         •        from a single source totalling more than $100

         •        from a single source totalling $100 or less.

         •        within each of those general totals you must provide a further break
                  down by class of contributor, i.e. individual, corporation or trade
                  union

         O. Reg. 211/07 reference 14

         Donated or discounted goods or services for referendum advertising
         purposes are considered to be a contribution except those provided by
         voluntary unpaid labour.

         In every instance where goods or services have been provided for
         referendum advertising purposes an expense in the equivalent value is
         considered to have been incurred.

         O Reg. 211/07 references 1, 5 (2) (e)

         Total contributions should be carried to the statement of campaign period
         income and expenses.


PART II – LIST OF CONTRIBUTORS TOTALLING MORE THAN $100

.13      Part II illustrates the format for listing the name and address and
         classification of contributors who have made contributions for referendum
         advertising purposes totaling more than $100. You must record the

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R06                                                    Guidelines for Referendum Campaign Organizers
July 2007


            amount and date of each contribution making up this reported figure. If
            insufficient space is provided, attach a list using this format. You may wish
            to notify such contributors of this disclosure requirement.

            If the contributions during the period of July 10, 2007 to October 10, 2007
            for referendum advertising purposes cannot be identified then the CFO
            must report the name, address, and classification of all contributors at an
            amount greater than $100 to the referendum campaign organizer during
            that period.

            O. Reg. 211/07 reference 14 (4)


Referendum Advertising Expenses

DEFINITIONS AND CATEGORIES

Referendum advertising means advertising in any broadcast, print, electronic or
other medium that promotes a particular referendum result and appears during
the referendum period of September 10, 2007 to October 10, 2007.

Referendum advertising expense means an expense incurred in relation to the
production of a referendum advertisement or the transmission of that
advertisement to the public.

A referendum advertising expense is reported whether it is paid before, during or
after the referendum period. If an amount is paid for both referendum advertising
and other advertising, i.e. pre-referendum advertising, then the expense must be
pro-rated for the appropriate periods.

Only those prepaid referendum advertising expenses that are consumed during
the referendum period constitute a referendum advertising expense.

Include all payments for the design, printing, distribution, etc. of sign, brochure or
other referendum promotional items such as buttons.

In addition to reporting all referendum advertising expenses the report will
disclose in the prescribed schedule the time and place of broadcast or
publications of such advertisements.

O. Reg. 211/07 reference 4(2)




                                              25
Guidelines for Referendum Campaign Organizers                                       R06
July 2007




Auditor's Report
.14      The referendum campaign organizer’s auditor, appointed where
         referendum advertising expenses are $5,000 or more, will complete the
         standard auditor's report included in the RAR-1 report unless the auditor
         wishes to submit a qualified report or a denial of opinion.

         Please note that there is no audit subsidy available from the Chief
         Electoral Officer for the cost of the auditor’s services.

         Auditor’s accepting an engagement under the Electoral System
         Referendum Act, 2007 should contact their governing body for any
         interpretations available on their practice obligations under the ESRA,
         2007.

         O. Reg. 211/07 reference 15


Disposition Of Surplus
.15      Monies contributed to a registered referendum campaign organizer for
         referendum advertising purposes during the referendum period of
         September 10 to October 10, 2007 are funded monies that should not be
         used for other purposes of the registered referendum campaign organizer.

         Accordingly, where there is a surplus of referendum advertising
         contributions monies remaining after paying referendum advertising period
         expenses, then that surplus must be paid out to any recorded contributors
         in proportion to the amount of their original contribution to total referendum
         advertising contributions. A share that is less than $25 does not need to
         be returned.

         However, any referendum advertising contribution monies remaining after
         the required surplus disbursement must be paid to the Chief Electoral
         Officer.

         The disposition of surplus referendum advertising contributions must be
         completed prior to filing the Registered Referendum Advertising Report
         RAR-1.

         O. Reg. 211/07 reference 13


RAR-1 Filing Checklist
.16      To ensure completeness, follow the checklist below and confirm that:


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R06                                                   Guidelines for Referendum Campaign Organizers
July 2007


            •     the financial statements are audited well in advance of the filing
                  deadline

            •     the name and address and contact information boxes are complete

            •     the financial statements have been signed by the referendum
                  campaign organizer and the CFO

            •     all required schedules have been completed and agree with the
                  referendum advertising report as appropriate

            •     where required the auditor's report has been completed and signed

            •     all contributions over $25 have been accepted by cheque, money
                  order or credit card

            •     contributions of goods and services for referendum advertising
                  purposes have been recorded both as a contribution and as an
                  expense

            •     contributions for referendum advertising purposes have been
                  accepted only from persons resident in Ontario, from corporations
                  that are not charities and carrying on business in Ontario and from
                  trade unions with bargaining rights in Ontario

            •     all contributions have been made from the contributor's own funds

            •     contributions made through an unincorporated association including
                  a partnership, but excepting a trade union, have been recorded for
                  each individual member of the association or partnership sharing in
                  the contribution and in the amount each contributed


            •     all vouchers for referendum advertising expenses of an amount
                  more than $50 should be retained until permission is received from
                  the Chief Electoral Officer for their destruction. The Chief Electoral
                  Officer may request that vouchers be submitted for detailed
                  examination.


ADDITIONAL INFORMATION

OFFENCES

.17         A person or entity that knowingly:

            •     contravenes any provision of Ontario Regulation 211/07


                                             27
Guidelines for Referendum Campaign Organizers                                         R06
July 2007


         •        makes a false statement in documents filed with the Chief Electoral
                  Officer

         •        gives false information to the CFO or other persons authorized to
                  accept contributions on behalf of the referendum campaign
                  organizer

         is guilty of an offence and liable, on conviction, to a fine of not more than
         $5,000 in the case of an individual, and not more than $50,000 in the case
         of a corporation, trade union or other entity.

         Electoral System Referendum Act, 2007 reference 16




                                                28
Appendix A                                         Guidelines for Referendum Campaign Organizers
July 2007




APPENDIX A: CORPORATE CONTRIBUTIONS –
CARRYING ON BUSINESS IN THE PROVINCE OF
ONTARIO
.01     A corporation, in order to be eligible to make a contribution for referendum
        advertising purposes to a registered referendum campaign organizer
        under Ontario Regulation 211/07, must carry on business in the Province
        of Ontario and must not be a registered charity. In determining this matter,
        the Chief Electoral Officer will consider any of the following criteria as
        acceptable evidence that a corporation is carrying on business in the
        Province of Ontario for contribution purposes:

        •      the corporation maintains an office or establishment in the Province
               of Ontario for the purpose of carrying on its business activities to
               which one or more employees report to work

        •      the corporation enters into contracts in the Province of Ontario on a
               regular basis either through its officers, employees or agents
               having general authority to act on its behalf

        •      the corporation is an extra-provincial corporation licensed to carry
               on business in the Province of Ontario pursuant to Part IX of the
               Corporations Act (Ontario)

        •      the corporation is taxable in the Province of Ontario pursuant to the
               Corporations Tax Act (Ontario).

        Where a corporation wishing to make a referendum advertising
        contribution under Ontario Regulation 211/07 is unable to meet at least
        one of the criteria set out above, the onus shall be on that corporation to
        satisfy the Chief Electoral Officer that the corporation is carrying on
        business in the Province of Ontario.

.02     Corporations which otherwise meet the criteria outlined above, but which
        have been established for charitable purposes, are, in general, prohibited
        by statute or by common law from making referendum advertising
        contributions. Only corporations that are not registered charities within the
        meaning of paragraph 248(1) of the Income Tax Act (Canada) may make
        referendum advertising contributions. CFOs should make reasonable
        efforts to satisfy themselves that the contributor corporation is entitled
        under its governing laws to make a referendum advertising contribution.

        O. Reg. reference 10 (1)



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