[Federal Register Volume 63, Number 116 (Wednesday, June 17, 1998)]
[Proposed Rules]
[Pages 33012-33014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16006]
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FEDERAL ELECTION COMMISSION
11 CFR Parts 9003 and 9033
[Notice 1998-11]
Electronic Filing of Reports by Publicly Financed Presidential
Primary and General Election Candidates
AGENCY:Federal Election Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY:The Federal Election Commission requests comments on proposed
changes to its regulations to address the electronic filing of reports
by publicly financed Presidential primary and general election
candidates. The proposed rules would specify that if Presidential
candidates and their authorized committees have computerized their
campaign finance records, they must agree to participate in the
Commission's recently established electronic filing program as a
condition of voluntarily accepting federal funding. These regulations
would implement the provisions of the Presidential Election Campaign
Fund Act (``Fund Act'') and the Presidential Primary Matching Payment
Account Act (``Matching Payment Act''), which establish eligibility
requirements for Presidential candidates seeking public financing, as
well as Public Law 104-97, which amended the reporting provisions of
the Federal Election Campaign Act of 1971 (``FECA''). No final
decisions have been made by the Commission on the proposed revisions in
this Notice. Further information is provided in the supplementary
information which follows.
DATES: Comments must be received on or before July 17, 1998.
ADDRESSES: All comments should be addressed to Ms. Susan E. Propper,
Assistant General Counsel, and must be submitted in either written or
electronic form. Written comments should be sent
[[Page 33013]]
to the Federal Election Commission, 999 E Street, N.W., Washington,
D.C. 20463. Faxed comments should be sent to (202) 219-3923, with
printed copy follow up. Electronic mail comments should be sent to
elecfiling@fec.gov. Commenters sending comments by electronic mail
should include their full name and postal service address within the
text of their comments. Electronic comments that do not contain the
full name, electronic mail address and postal service address of the
commenter will not be considered.
FOR FURTHER INFORMATION CONTACT: Ms. Susan E. Propper, Assistant
General Counsel, or Ms. Rosemary C. Smith, Senior Attorney, at (202)
694-1650 or toll free (800) 424-9530.
SUPPLEMENTARY INFORMATION: Recently, the Federal Election Commission
implemented a system permitting political committees and other persons
to file reports of campaign finance activity via computer diskettes and
direct transmission of electronic data. See Explanation and
Justification of 11 CFR 104.18, 61 FR 42371 (Aug. 15, 1996). The
Commission was required 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.'' Public Law 104-79, 109 Stat. 791
(1995), (adding 2 U.S.C. 434(a)(11)). While the Commission encourages
all political committees and other persons to file their reports
electronically, no committee or person is required to do so. Under
Public Law 104-79, participation in the Commission's electronic filing
program is voluntary. The goals of the new system include enhancement
of on-line access to reports on file with the Commission, reduction of
paper filing and manual processing, and increased efficiency and cost-
effective methods of operation for the filers and for the Commission.
With the advent of the first Presidential election cycle since the
implementation of the new electronic filing system, the question has
arisen as to whether it would be advisable to modify the Commission's
regulations at 11 CFR 9003.1 and 9033.1 to provide that certain
Presidential committees must agree to file their campaign finance
reports electronically as a condition of receiving public funding.
Currently, the authorized committees of presidential candidates, like
other political committees, have the option of submitting electronic
reports should they wish to do so. See 11 CFR 104.18. The proposed
changes to the candidate agreement regulations which follow would
establish electronic filing as an additional prerequisite for the
receipt of public funding. Please, note, however, this new language
would only apply to those primary and general election candidate
committees that decide to rely upon a computer system to maintain and
use their campaign finance data. Thus, the draft rules would not burden
campaign committees with new requirements if they are not computerized.
Electronic filing of Presidential committees' reports is intended
to save a substantial amount of time and Commission resources that
would otherwise be devoted to inputting these reports into the FEC's
database. Although the number of political committees affected by the
requirement would be relatively small, their reports can be voluminous
given the substantial number of contributions and expenditures listed
in each report. Thus, these proposed changes to the candidate agreement
rules are expected to speed the reporting of campaign finance
information and enhance public disclosure.
Previously, the Commission issued technical specifications for
reports filed electronically in its Electronic Filing Specification
Requirements (EFSR), which is available free of charge. The EFSR
contains technical specifications, including file requirements, for
reports filed by Presidential campaign committees. However, the
electronic filing software available from the FEC at no charge will not
generate the forms used by Presidential committees. The Commission's
Data System Development Division would work with committees to assist
them in generating the proper output. Any additional costs entailed may
be treated and paid for like any other compliance cost pursuant to 11
CFR 9003.3(a)(2)(i)(B) and (F) and 9035.1(c)(1) if incurred after
January 1, 1999. The Commission notes that there are a number of
differences between the specifications contained in the EFSR and those
found in the Computerized Magnetic Media Requirements (CMMR) used by
publicly financed committees to submit financial data for the
Commission's audit. These differences are necessitated, in part, by the
different purposes for which each of these databases are used.
Nevertheless, comments are requested as to ways in which these two
standards could be better synchronized.
The proposed revisions to the candidate agreement regulations do
not require electronic filing for statements of candidacy or statements
of organization. While Presidential candidates and their authorized
committees may file these statements electronically, if they wish,
these forms have not been included in the free software available from
the FEC. Also please note that the candidate agreements, themselves,
would not be submitted in electronic form under the changes to 11 CFR
9003.1 and 9033.1 which follow.
Congress intended the new system of electronic filing to be
voluntary. 141 Cong. Rec. H 12140-41 (daily ed. Nov. 13, 1995)
(statements of Reps. Thomas, Hoyer, Fazio and Livingston). The
Commission believes that a candidate's agreement to file campaign
finance reports electronically in exchange for public funding is a
voluntary decision materially indistinguishable from the candidate's
voluntary decision to abide by the spending limits in exchange for
federal funds. For this reason, it appears that the Commission has the
authority to promulgate the regulation set forth below. Nevertheless,
commenters are encouraged to express their views on whether the rules
set out in this notice are within the scope of the Commission's
authority under the Fund Act, the Matching Payment Act, the FECA, and
Public Law 104-79.
The Commission welcomes comments on the foregoing proposed
amendments to the candidate agreement regulations. Other aspects of the
public financing process will be addressed separately in a forthcoming
Notice of Proposed Rulemaking. No final decision has been made by the
Commission concerning the proposals contained in this notice.
Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory
Flexibility Act)
These proposed rules will not, if promulgated, have a significant
economic impact on a substantial number of small entities. The basis
for this certification is that very few small entities will be affected
by these proposed rules, and the cost is not expected to be
significant. Further, any small entities affected have voluntarily
chosen to receive public funding and to comply with the requirements of
the Presidential Election Campaign Fund Act or the Presidential Primary
Matching Payment Account Act.
List of Subjects in 11 CFR Parts 9003 and 9033
Campaign funds, Elections, Political candidates.
For the reasons set out in the preamble, it is proposed to amend
Subchapters E and F of Chapter I of Title 11 of the Code of Federal
Regulations as follows:
[[Page 33014]]
PART 9003--ELIGIBILITY FOR PAYMENTS
1. The authority citation for part 9003 would continue to read as
follows:
Authority: 26 U.S.C. 9003 and 9009(b).
2. In Sec. 9003.1, paragraph (b) introductory text is republished
and new paragraph (b)(11) would be added to read as follows:
Sec. 9003.1 Candidate and committee agreements.
* * * * *
(b) Conditions. The candidates shall:
* * * * *
(11) Agree that they and their authorized committee(s) shall file
all reports with the Commission in an electronic format that meets the
requirements of 11 CFR 104.18 if the candidate or the candidate's
authorized committee(s) maintain or use computerized information
containing any of the information described in 11 CFR 104.3.
PART 9033--ELIGIBILITY FOR PAYMENTS
3. The authority citation for Part 9033 would continue to read as
follows:
Authority: 26 U.S.C. 9003(e), 9033 and 9039(b).
4. In section 9033.1, paragraph (b) introductory text is
republished and new paragraph (b)(13) would be added to read as
follows:
Sec. 9033.1 Candidate and committee agreements.
* * * * *
(b) Conditions. The candidate shall agree that:
* * * * *
(13) The candidate and the candidate's authorized committee(s) will
file all reports with the Commission in an electronic format that meets
the requirements of 11 CFR 104.18 if the candidate or the candidate's
authorized committee(s) maintain or use computerized information
containing any of the information described in 11 CFR 104.3.
Dated: June 11, 1998.
Joan D. Aikens,
Chairman, Federal Election Commission.
[FR Doc. 98-16006 Filed 6-16-98; 8:45 am]
BILLING CODE 6715-01-P
