96-20804. Electronic Filing of Reports by Political Committees  

  • [Federal Register Volume 61, Number 159 (Thursday, August 15, 1996)]
    [Rules and Regulations]
    [Pages 42371-42376]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-20804]
    
    
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    FEDERAL ELECTION COMMISSION
    
    11 CFR Part 104
    
    [Notice 1996-16]
    
    
    Electronic Filing of Reports by Political Committees
    
    AGENCY: Federal Election Commission.
    
    ACTION: Final rules; transmittal of regulations to Congress.
    
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    SUMMARY: The Federal Election Commission is implementing an electronic 
    filing system for reports of campaign finance activity filed with the 
    agency. The Commission is publishing new rules today as part of the 
    process of implementing this system. The new rules establish general 
    requirements for
    
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    filing reports electronically; specify the format for data to be 
    submitted by filers; set up procedures for submitting amendments to 
    reports; and explain methods of complying with the signature 
    requirements of the law. Further information is provided in the 
    supplementary information that follows.
    
    EFFECTIVE DATE: Further action, including the announcement of an 
    effective date, will be taken after these regulations have been before 
    Congress for 30 legislative days pursuant to 2 U.S.C. 438(d). A 
    document announcing the effective date will be published in the Federal 
    Register.
    
    FOR FURTHER INFORMATION CONTACT: Ms. Susan E. Propper, Assistant 
    General Counsel, or Paul Sanford, Staff Attorney, 999 E Street, NW., 
    Washington, DC 20463, (202) 219-3690 or (800) 424-9530.
    
    SUPPLEMENTARY INFORMATION: The Commission is today publishing the final 
    text of new regulations to be added to 11 CFR Part 104 regarding the 
    electronic filing of reports by political committees. These rules 
    implement provisions of Public Law 104-79, which amended the Federal 
    Election Campaign Act of 1971, 2 U.S.C. 431 et seq. [``the Act''], to 
    require, inter alia, that the Commission create a system to ``permit 
    reports required by this Act to be filed and preserved by means of 
    computer disk or any other electronic format or method, as determined 
    by the Commission.'' Federal Election Campaign Act of 1971, Amendment, 
    Pub. L. No. 104-79, section 1(a), 109 Stat. 791 (December 28, 1995). 
    The final rules announced today set out the requirements and procedures 
    for filing reports electronically.
        The electronic filing system is intended to reduce paper filing and 
    manual processing of reports, resulting in more efficient and cost-
    effective methods of operation for filers and for the Commission. The 
    system will also provide the public with more complete on-line access 
    to reports on file with the Commission, thereby furthering the 
    disclosure purposes of the Act. Public Law 104-79 requires the 
    Commission to make this filing method available for reports covering 
    periods after December 31, 1996. Thus, the new system will be in place 
    for the first reports filed in the 1998 election cycle.
        Public Law 104-79 requires the Commission to make the electronic 
    filing option available for all ``report[s], designation[s], or 
    statement[s] required by this Act to be filed with the Commission.'' 
    Previously, this would not have included reports filed by the 
    authorized committees of candidates for the House of Representatives, 
    as these committees filed their reports with the Clerk of the House. 
    However, section 3 of Public Law 104-79 amended 2 U.S.C. 432(g) to 
    require the authorized committees of House candidates to file their 
    reports with the Commission. Consequently, these committees, as well as 
    those that have historically filed with the Commission, will have the 
    opportunity to file electronically under the new system. Committees 
    that are required to file reports with the Secretary of the Senate will 
    not be covered by the new rules.
        While the Commission encourages political committees and other 
    persons to file their reports electronically, doing so is not required. 
    Under Public Law 104-79, participation in the Commission's electronic 
    filing program is voluntary. Therefore, filers have the option of 
    continuing to submit paper reports as they have in the past.
        Section 438(d) of Title 2, United States Code requires that any 
    rules or regulations prescribed by the Commission to carry out the 
    provisions of Title 2 of the United States Code be transmitted to the 
    Speaker of the House of Representatives and the President of the Senate 
    30 legislative days before they are finally promulgated. These 
    regulations were transmitted to Congress on August 9, 1996.
    
    Explanation and Justification for 11 CFR 104.18
    
        The Commission initiated this rulemaking with a Notice of Proposed 
    Rulemaking [``NPRM''] published in the Federal Register on March 27, 
    1996. 61 FR 13465 (March 27, 1996). The NPRM contained proposed rules 
    covering general filing requirements, the format for electronic 
    reports, report validation procedures, amendments to electronically 
    filed reports, signature requirements, and the preservation of reports 
    filed electronically. The NPRM sought comments on the proposed rules 
    and on other issues from various segments of the regulated community, 
    including (1) committees that will be affected by the new rules; (2) 
    vendors with knowledge of the software issues involved in implementing 
    such a system; and (3) state and local jurisdictions that have 
    experience with electronic filing. The Commission received ten comments 
    in response to the NPRM. Several commenters offered general 
    observations about the features that an electronic filing system should 
    include. Other commenters offered specific comments on the proposed 
    rules set out in the notice. The Internal Revenue Service submitted a 
    comment in which it said that the proposed rules are not inconsistent 
    with IRS regulations or the Internal Revenue Code. The comments 
    received provided valuable information that serves as the basis for the 
    final rules published today.
    
    General Comments About System Features
    
        Some commenters offered general comments about the features that 
    should be incorporated into the electronic filing system. One commenter 
    urged the Commission to make the software for the system as user 
    friendly as possible, in order to make filing FEC reports easier, and 
    also urged the Commission to make the software available free of charge 
    through its World Wide Web site. This commenter said that filers should 
    be required to include the FEC identification number of the candidates 
    and PACs listed on their reports in order to ensure accurate 
    incorporation of the reports into the Commission's data base, and 
    suggested that pop-up menus could be incorporated into the software 
    that would allow filers to select this and other information from a 
    master list.
        Similarly, this commenter along with one other commenter, urged the 
    Commission to establish a standardized list of codes for reported 
    disbursements. This proposal was set out in the narrative portion of 
    the NPRM. However, the commenter said filers should be able to include 
    a written elaboration. This commenter also said that any software made 
    available by the Commission should not include any campaign management 
    features, since these features would suggest assistance to candidates 
    and would present practical problems.
        Another commenter said that encryption capabilities should be 
    incorporated into the electronic filing software, since this would 
    serve the dual purposes of compressing files and providing security in 
    the reporting.
        The Commission shares the commenter's view that the electronic 
    filing system must be as easy to use as possible, and intends to make 
    any software that it creates available free of charge through the 
    Internet and other electronic means. Initially, this will be limited to 
    the validation software that filers will use to validate their reports 
    before submitting them to the Commission on diskette. Additional 
    software, such as encryption software, will be made available after 
    initial implementation, as the Commission moves towards filing by 
    telecommunications. The Commission will also make a list of the 
    identification numbers of all registered candidates and committees 
    available on the Internet for committees to download and
    
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    incorporate into their reports. Committees can access this list through 
    the Commission's home page at www.fec.gov.
    
    General Rule
    
        Paragraph (a) of the proposed rules set out the general rule that 
    political committees who file reports with the Commission may choose to 
    file their reports in an electronic format that meets the requirements 
    of the section. Paragraph (a) also states that committees that choose 
    to file electronically and whose reports satisfy the validation program 
    described in paragraph (c), below, must continue to file electronically 
    all reports covering financial activity for that calendar year. The 
    Commission sought comment on whether the rules should distinguish 
    between committees that begin filing electronically but later encounter 
    problems and are unable to do so from those who simply decide to 
    discontinue filing electronic reports.
        The Commission received no comments on the general rule or on the 
    one year continuation requirement. Generally, the final rule tracks the 
    proposed rule. Requiring committees that begin to file reports 
    electronically to continue to do so for the rest of the year will 
    enable the Commission to more efficiently process the committee's 
    reports and place them on the public record. However, the rule now 
    contains an exception that waives this requirement if the Commission 
    determines that extraordinary and unforeseeable circumstances have made 
    it impracticable for the committee to continue filing electronically. 
    In order to obtain a waiver, a committee must submit a written request 
    to the Commission's Data Systems Development Division explaining the 
    circumstances that make continued electronic filing impracticable. The 
    Data Division will review these requests and make a determination as to 
    whether the committee may revert to paper filing. Generally, waivers 
    will only be granted if circumstances such as destruction of the 
    committee's computer equipment make continued electronic filing 
    technologically impossible. Committees that revert to paper filing will 
    be required to report on paper for the remainder of the calendar year.
    
    Standard format
    
        Under paragraph (b) of the proposed rules, reports filed 
    electronically must conform to the technical specifications, including 
    file requirements, described in the Commission's Electronic Filing 
    Specification Requirements [``EFSR''], and must be organized in the 
    order specified in those requirements. The narrative portion of the 
    NPRM indicated that the Commission would develop these requirements in 
    a parallel process to the Electronic Filing rulemaking, and would make 
    the requirements available to the public during the development 
    process. The notice invited interested persons to comment on the 
    requirements as they were being developed.
        The draft electronic filing specification requirements were made 
    available for comment on May 31, 1996. Several comments were submitted 
    on the draft requirements. The Commission expects to issue a final 
    version of the EFSR during mid-August, 1996.
        A few commenters addressed the issue of standardized format 
    specifications in their comments on the NPRM. Two commenters expressed 
    support for the Commission's plans to develop a standard format. One of 
    these commenters suggested that the Commission use the same field 
    structures and lengths as those in the Computerized Magnetic Media 
    Requirements [``CMMR''] currently used by publicly financed 
    presidential campaigns. The other commenter said the need to develop a 
    standard format for electronically filed reports was obvious, but said 
    that the format should not be so technical that users are unable to 
    generate properly formatted reports themselves.
        The format required for electronically filed reports will be 
    relatively simple, and users should be able to easily generate properly 
    formatted reports using the EFSR documentation. The Commission has used 
    the CMMR as a model for the EFSR, and incorporated similar field 
    structures and lengths where appropriate. However, the EFSR will differ 
    in many significant respects, because the CMMR was designed to 
    facilitate the matching fund submission process for presidential 
    primary candidates, whereas the EFSR must serve the broader purposes of 
    reporting under Part 104 of the regulations. Thus, while the EFSR will 
    share some of the characteristics of the CMMR, the EFSR will include 
    specifications for the full range of activities that are reportable 
    under section 434 of the Act and Part 104 of the regulations.
        In contrast to the two comments described above, a third commenter 
    suggested an entirely different approach for filing reports 
    electronically. This commenter said that filers should simply scan the 
    Commission's forms into their databases, complete the forms, and submit 
    them to the Commission by electronic mail. Or, as an alternative to 
    scanning, the Commission should make the forms available on a diskette 
    for $25.
        Accepting scanned forms as electronically filed reports would 
    complicate the electronic filing process, because scanned forms would 
    be more difficult to directly integrate into the Commission's 
    disclosure data base. Direct integration will be achieved most 
    efficiently if reports are made up of a series of fields of ASCII 
    characters. Scanned forms are digitized images, rather than fields of 
    ASCII characters. Since direct integration is one of the main goals of 
    electronic filing, the Commission has decided not to accept scanned 
    images as electronically filed reports.
    
    Acceptance of Reports Filed Electronically
    
        1. Validation checks. Under paragraph (c) of the proposed rules, 
    committees submitting reports electronically would be required to check 
    each report against the Commission's validation software before it is 
    submitted, to ensure that it meets the standard format specification 
    requirements. Paragraph (c)(1) also indicated that electronically filed 
    reports would be checked again when they are received by the 
    Commission. The Commission would not accept reports that do not pass 
    the validation program, and would notify a committee if its reports are 
    rejected.
        One commenter suggested that, instead of supplying validation 
    software, the Commission certify a commercial disclosure software 
    package. This, the commenter said, would allow filers to bypass the 
    process of validating each submission.
        The Commission is unable to adopt this commenter's suggestion. The 
    validation software will ensure that electronic reports submitted to 
    the Commission conform to the electronic filing specification 
    requirements and can be integrated into the Commission's disclosure 
    data base. The Commission is making the validation software available 
    to committees so that reports can be checked before they are submitted. 
    This will allow filers to remedy filing problems before sending their 
    reports to the Commission. Although commercial software packages may 
    become available that will perform this function, the Commission is 
    reluctant to treat any of these packages as a substitute for the 
    validation software, because doing so would require ongoing oversight 
    of these software packages to ensure continued compliance with the 
    EFSR. The Commission is unwilling and unable to perform this oversight. 
    Therefore, the Commission will not
    
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    recognize commercial software as a substitute for the validation 
    process.
        Another commenter suggested that the Commission develop what the 
    commenter described as ``pre-auditing'' software that would 
    automatically review reports before they are submitted in order to 
    ensure that the reports are complete and correct to the greatest extent 
    possible. The commenter said that this software should check for math 
    errors, look for inconsistencies between the summary page and the 
    detailed reporting pages, and notify the filer if mandatory fields have 
    been left blank, contributions have been listed that exceed the 
    applicable limits, or data has been included that is outside the 
    reporting period range.
        The validation software filers will be required to use in 1997 will 
    perform some of these functions. Specifically, this software will 
    ensure that all required information is included in the report, and 
    will also examine the report for inconsistencies between the summary 
    pages and detailed reporting pages. The Commission's current plans are 
    to incorporate other pre-auditing functions, such as checking for math 
    errors, etc., into the more sophisticated validation software that will 
    be made available for the next phase of the program in 1998. This may 
    further increase the accuracy of electronically filed reports as the 
    Commission moves towards submission by telecommunications and direct 
    integration into the disclosure data base.
        2. Methods of transmission. The narrative portion of the NPRM 
    explained that the Commission initially intends to accept reports only 
    on floppy disk. However, the Commission will begin accepting reports 
    submitted through telecommunications as soon as practicable. One 
    commenter urged the Commission to begin accepting reports submitted by 
    electronic mail right away. However, another commenter said that there 
    are space limitations on electronic mail that preclude it from serving 
    this purpose, and that it is not reliable enough to serve as a filing 
    medium.
        The Commission continues to believe that a gradual implementation 
    of the electronic filing program will minimize the transitional 
    difficulties and will be more likely to lead to a viable electronic 
    filing system. Accepting reports by electronic mail would raise 
    security issues that the Commission would rather address during the 
    second phase of the electronic filing program. Therefore, the 
    Commission has decided to adhere to its plan to initially accept 
    electronic reports only on floppy disk. The Commission will move toward 
    accepting reports through telecommunications as soon as possible.
    
    Amended Reports
    
        Paragraph (d) of the proposed rules would require that amendments 
    to electronically filed reports be filed electronically. This provision 
    would also require that amendments consist of a complete version of the 
    report as amended, rather than just those portions of the report that 
    have been revised. In the narrative portion of the NPRM, the Commission 
    recognized that requiring submission of a complete version of the 
    amended report has one drawback in that the complete version will not 
    immediately indicate which aspects of the earlier report had changed. 
    Thus, persons reviewing the report will have difficulty identifying new 
    information. The Commission specifically sought comment on whether 
    another approach would be preferable.
        All three commenters that addressed this issue supported the 
    approach set out in the proposed rule. One commenter suggested that the 
    Commission require filers to flag revised information in the amended 
    report so that persons reviewing the report will be able to readily 
    determine which portions have been changed. Another commenter said that 
    information that has been amended should be highlighted in the 
    Commission's data base. This would be achieved by replacing the amended 
    field in the original report with the identification number of the 
    amended report containing the superseding information. This commenter 
    also suggested that the Commission produce a cumulative electronic list 
    of amended items.
        The final rule tracks the proposed rule in that it requires filers 
    to submit a complete version of the report as amended, rather than just 
    those portions of the report that are being amended. However, the final 
    rule also adopts the commenter's suggestion in that it requires filers 
    to include electronic flags or markings in their amended reports that 
    point to the portions of the report that are being amended. These flags 
    will be incorporated into the Commission's disclosure process so that 
    persons reviewing the committee's reports will know which portions have 
    been revised.
    
    Signature Requirements
    
        1. Committee signatures. Paragraph (e) of the proposed rules would 
    require the committee treasurer or other person responsible for filing 
    the committee's report to verify the report either by submitting a 
    signed paper certification with the computerized magnetic media, or by 
    submitting a digitized copy of the signed certification as a separate 
    file in the electronic submission. This provision would also require 
    the person signing the report to certify that, to the best of the 
    signatory's knowledge, the report is true, correct and complete. These 
    verifications would be treated the same as verification by signature on 
    a paper report. When the Commission begins to accept reports by 
    telecommunications, it may provide other methods for verification, such 
    as providing an encryption key to the committee treasurer or allowing 
    simultaneous mailing of the signature page. The Commission sought 
    comment on these proposals, and invited commenters to suggest other 
    ways for complying with the signature requirement.
        One commenter said the Commission should be responsible for 
    comparing electronically submitted signatures with signatures already 
    on file. If the signatures look correct, they should be treated as 
    valid, with the burden of proving otherwise on the person alleging the 
    signature is not genuine.
        Comments submitted by the New York City Campaign Finance Board 
    indicate that the Board requires candidates who file on disk to submit 
    a paper control page that lists the schedule totals, file creation 
    dates, and contains the committee treasurer's original signature. Under 
    the system used by New York City, these pages cannot be created until 
    all report data has been entered and submission disks have been 
    created.
        As explained above, the Commission's validation program will ensure 
    that electronically filed reports contain all of the necessary 
    information. However, Congress has specifically directed the Commission 
    to ``provide for one or more methods (other than requiring a signature 
    on the report being filed) for verifying reports filed by means of 
    computer disk or other electronic format or method.'' 2 U.S.C. 
    434(a)(11)(B), as added by Pub. L. No. 104-79, section 1(a), 109 Stat. 
    791 (1995). Thus, the Commission is unable to require submission of a 
    signature page. For these reasons, the Commission has structured this 
    program so that filers will include all of the required information 
    within the electronic data submitted. With a few exceptions, no paper 
    submissions will be required. The exceptions will be explained further 
    below.
        With regard to encryption, another commenter expressed the view 
    that implementing a program such as ``PGP'' or ``Pretty Good Privacy'' 
    to provide a digital signature would be nearly impossible because of 
    the
    
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    administrative difficulties of issuing and receiving the necessary 
    keys. This commenter suggested that it would be better to achieve 
    security by issuing a PIN-like password to each filer by regular mail. 
    This commenter also recommended implementation of a cross-checking 
    program under which each filer would submit a signed paper summary page 
    for each report. The amounts listed on the summary page could then be 
    compared to the more detailed portions of the electronically submitted 
    reports to provide an additional level of security and assurance.
        The Commission's validation software will compare a report's 
    summary page with its detailed summary page to ensure that they are 
    consistent, thereby providing an additional level of security. However, 
    the Commission has not addressed the encryption issue in this set of 
    final rules. The Commission expects to incorporate a more sophisticated 
    security system into the electronic filing program when it moves closer 
    to accepting reports through telecommunications.
        2. Signatures of third parties. The NPRM also noted that certain 
    forms and schedules required by the Act and regulations must be 
    submitted with the signatures of third parties. For example, Schedule E 
    and Form 5, which are used to report independent expenditures, must be 
    notarized. Paragraph (f) of the proposed rules contains a list of the 
    schedules, materials and forms that have special signature 
    requirements. Under this provision, electronic filers that are required 
    to submit these items could do so by submitting a paper copy of the 
    item with their electronic report, or by including a digitized version 
    of the item as a separate file in the electronic submission. This would 
    be in addition to the general requirement that the data contained on 
    the form or schedule be included in the electronic report. The 
    Commission received no comments on this requirement.
        The final rule tracks the proposed rule. Filers have the option of 
    submitting paper copies or a digitized image as part of their 
    electronic report.
    
    Preservation of Reports
    
        Section 104.14(b)(2) of the Commission's current regulations 
    requires committee treasurers to retain copies of all reports or 
    statements submitted for a period of three years after they are filed. 
    Paragraph (g) of the proposed rules would require committee treasurers 
    to retain machine readable copies of all reports filed electronically 
    as the copy preserved under this section. Paragraph (g) would also 
    require a treasurer to retain the original signed version of any 
    documents submitted in a digitized format under paragraphs (e) or (f), 
    as explained above.
        One commenter argued that PACs should be permitted to retain files 
    exclusively on diskette, and said that keeping a hard copy is redundant 
    and self-defeating.
        A file of a report retained on a diskette would be considered a 
    machine readable copy of that report under the final rules. Thus, a 
    committee could retain its reports almost exclusively on diskette. 
    However, if a committee submits a digitized image of the signature page 
    of a report, schedule or other document to the Commission, in lieu of 
    submitting the signed paper original, the committee must retain the 
    signed original signature page for three years after the report is 
    filed. Thus, in certain situations, committees will be required to 
    maintain paper copies of portions of some reports.
    
    Additional Issues
    
        The Notice of Proposed Rulemaking sought additional information and 
    comment from the regulated community on other subjects related to the 
    electronic filing program. Specifically, the NPRM invited commenters to 
    describe their current computer capabilities and indicate what kind of 
    records they are currently maintaining electronically. The NPRM also 
    asked commenters to indicate whether they intend to file their reports 
    electronically, and to describe how they expect to benefit from the 
    electronic filing program. Commenters were also asked to describe the 
    technical and procedural problems they perceive with the system, and 
    provide suggestions on how these problems might be averted.
        Several commenters addressed these issues. Two commenters indicated 
    they have PC-based systems and use software such as Microsoft Office, 
    Microsoft Excel, WordPerfect, and Lotus 123. These commenters intend to 
    file their reports electronically once the program has been 
    implemented. In contrast, one software vendor said that the program 
    would not save its clients any time or money. Thus, they would not 
    benefit from participating in the program.
        The two commenters who intend to participate in the program said 
    they expect it to make the filing process more efficient by reducing 
    the duplication of efforts in keeping records and submitting reports to 
    the Commission. They hope the program will save staff time and reduce 
    the anxiety of timely filing.
        With regard to potential problems, one of these commenters 
    expressed concern that the continued requirement that forms be 
    submitted to state offices would dilute the benefits of the electronic 
    filing system. See 2 U.S.C. 439, 11 CFR Part 108. This commenter also 
    cited the delay in the availability of electronic filing as a source of 
    frustration. Another commenter expressed concern about whether its 
    current equipment would be compatible with the system, and whether the 
    committee would incur significant setup costs in preparing for 
    electronic filing. This commenter also asked whether technical support 
    will be readily available.
        Section 2 of Public Law 104-79 waives the duplicate filing 
    requirements in states that have a system for electronically accessing 
    and duplicating reports filed with the Commission. The Commission 
    expects that, in the future, states will make such a system available. 
    Over time, this will reduce the need for filers to generate paper 
    reports to send to their state filing offices. However, as with the 
    requirement for the preservation of reports, section 439 is 
    nondiscretionary for states that do not have an electronic access and 
    duplication system. Therefore, filers in those states will be required 
    to continue generating paper reports and submitting them to their state 
    filing offices.
        The electronic filing system that the Commission will implement at 
    the beginning of 1997 should cause very few compatibility problems. 
    Files that have been created or are readable by an operating system 
    compatible with Microsoft DOS 2.1 or higher, including Microsoft 
    Windows, may be submitted under the new system. The Commission does not 
    expect those who wish to file electronically to incur significant setup 
    expenses. Validation software will be available, and the Commission 
    will provide this software free of charge.
        As with any computer implementation effort, technical glitches may 
    occur. However, the Commission is committed to establishing a viable 
    electronic filing system, and will provide whatever technical support 
    filing committees need to make the program a success.
    
    Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory 
    Flexibility Act)
    
        I certify that the attached final rules, if promulgated, will not 
    have a significant economic impact on a substantial number of small 
    entities. The basis of this certification is that no small entities are 
    required to submit
    
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    reports electronically under the final rules.
    
    List of Subjects in 11 CFR Part 104
    
        Campaign funds, Political committees and parties, Reporting and 
    recordkeeping requirements.
    
        For the reasons set out in the preamble, subchapter A, chapter I of 
    title 11 of the Code of Federal Regulations is amended as follows:
    
    PART 104--REPORTS BY POLITICAL COMMITTEES
    
        1. The authority citation for part 104 continues to read as 
    follows:
    
        Authority: 2 U.S.C. 431(1), 431(8), 431(9), 432(i), 434, 438(a), 
    438(b), 439a.
    
    
    Sec. 104.17  [Reserved]
    
        2. Section 104.17 is added and reserved.
        3. Section 104.18 is added, to read as follows:
    
    
    Sec. 104.18  Electronic filing of reports (2 U.S.C. 432(d) and 
    434(a)(11)).
    
        (a) General. A political committee that files reports with the 
    Commission, as provided in 11 CFR part 105, may choose to file its 
    reports in an electronic format that meets the requirements of this 
    section. If a committee chooses to file its reports electronically, and 
    its first electronic report passes the Commission's validation program 
    in accordance with paragraph (c) of this section, it must continue to 
    file in an electronic format all reports covering financial activity 
    for that calendar year, unless the Commission determines that 
    extraordinary and unforeseeable circumstances have made it 
    impracticable for the committee to continue filing electronically.
        (b) Format specifications. Reports filed electronically shall 
    conform to the technical specifications described in the Federal 
    Election Commission's Electronic Filing Specifications Requirements. 
    The data contained in the computerized magnetic media provided to the 
    Commission shall be organized in the order specified by the Electronic 
    Filing Specifications Requirements.
        (c) Acceptance of reports filed in electronic format. (1) Each 
    committee that submits an electronic report shall check the report 
    against the Commission's validation program before it is submitted, to 
    ensure that the files submitted meet the Commission's format 
    specifications and can be read by the Commission's computer system. 
    Each report submitted in an electronic format under this section shall 
    also be checked upon receipt against the Commission's validation 
    program. The Commission's validation program is available on request 
    and at no charge.
        (2) A report that does not pass the validation program will not be 
    accepted by the Commission and will not be considered filed. If a 
    committee submits a report that does not pass the validation program, 
    the Commission will notify the committee that the report has not been 
    accepted.
        (d) Amended reports. If a committee files an amendment to a report 
    that was filed electronically, it shall also submit the amendment in an 
    electronic format. The committee shall submit a complete version of the 
    report as amended, rather than just those portions of the report that 
    are being amended. In addition, the amended report shall contain 
    electronic flags or markings that point to the portions of the report 
    that are being amended.
        (e) Signature requirements. The committee's treasurer, or any other 
    person having the responsibility to file a designation, report or 
    statement under this subchapter, shall verify the report in one of the 
    following ways: by submitting a signed certification on paper that is 
    submitted with the computerized media; or by submitting a digitized 
    copy of the signed certification as a separate file in the electronic 
    submission. Each verification submitted under this section shall 
    certify that the person has examined the report or statement and, to 
    the best of the signatory's knowledge and belief, it is true, correct 
    and complete. Any verification under this section shall be treated for 
    all purposes (including penalties for perjury) in the same manner as a 
    verification by signature on a report submitted in a paper format.
        (f) Schedules and forms with special requirements. The following 
    list of schedules, materials, and forms have special signature and 
    other requirements and reports containing these documents shall 
    include, in addition to providing the required data within the 
    electronic report, either a paper copy submitted with the committee's 
    electronic report or a digitized version submitted as a separate file 
    in the electronic submission: Schedule C-1 (Loans and Lines of Credit 
    From Lending Institutions), including copies of loan agreements 
    required to be filed with that Schedule, Schedule E (Itemized 
    Independent Expenditures), Form 5 (Report of Independent Expenditures 
    Made and Contributions Received), and Form 8 (Debt Settlement Plan). 
    The committee shall submit any paper materials together with the 
    electronic media containing the committee's report.
        (g) Preservation of reports. For any report filed in electronic 
    format under this section, the treasurer shall retain a machine-
    readable copy of the report as the copy preserved under 11 CFR 
    104.14(b)(2). In addition, the treasurer shall retain the original 
    signed version of any documents submitted in a digitized format under 
    paragraphs (e) and (f) of this section.
    
        Dated: August 9, 1996.
    John Warren McGarry,
    Vice Chairman, Federal Election Commission.
    [FR Doc. 96-20804 Filed 8-14-96; 8:45 am]
    BILLING CODE 6715-01-P
    
    
    

Document Information

Published:
08/15/1996
Department:
Federal Election Commission
Entry Type:
Rule
Action:
Final rules; transmittal of regulations to Congress.
Document Number:
96-20804
Dates:
Further action, including the announcement of an effective date, will be taken after these regulations have been before Congress for 30 legislative days pursuant to 2 U.S.C. 438(d). A document announcing the effective date will be published in the Federal Register.
Pages:
42371-42376 (6 pages)
Docket Numbers:
Notice 1996-16
PDF File:
96-20804.pdf
CFR: (2)
11 CFR 104.17
11 CFR 104.18