[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Proposed Rules]
[Pages 50708-50721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25477]
[[Page 50707]]
_______________________________________________________________________
Part IV
Federal Election Commission
_______________________________________________________________________
11 CFR Parts 102, 104, and 108
Recordkeeping and Reporting; Proposed Rule
Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 /
Proposed Rules
[[Page 50708]]
FEDERAL ELECTION COMMISSION
11 CFR Parts 102, 104 and 108
[Notice 1997-14]
Recordkeeping and Reporting
AGENCY: Federal Election Commission.
ACTION: Notice of Proposed Rulemaking.
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SUMMARY: The Federal Election Commission requests comment on proposed
revisions to regulations that govern recordkeeping, reporting, and
filing with State officers under the Federal Election Campaign Act of
1971, as amended (``the Act'' or ``FECA''). The proposed revisions,
many of which are technical in nature, would clarify and simplify
requirements for recording, reporting, and filing reports of campaign-
related receipts and disbursements. The revisions are intended to
address issues that have arisen since the rules were last amended.
Please note that the draft rules which follow do not represent a final
decision by the Commission on issues presented in this rulemaking.
DATES: Comments must be received on or before October 27, 1997. If the
Commission receives requests to testify, it will hold a hearing on
November 5, 1997 at 10:00 a.m. Persons wishing to testify should so
indicate in their written comments.
ADDRESSES: 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 to the Commission's
postal service address: Federal Election Commission, 999 E Street,
N.W., Washington, D.C. 20463. Faxed comments should be sent to (202)
219-3923. Commenters submitting faxed comments should also submit a
printed copy to the Commission's postal service address to ensure
legibility. Comments may also be sent by electronic mail to
reprec@fec.gov''. Commenters sending comments by electronic mail
should include their full name, electronic mail address and postal
service address within the text of their comments. 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. Teresa A. Hennessy, Attorney, 999 E Street,
N.W., Washington, D.C. 20463, (202) 219-3690 or (800) 424-9530.
SUPPLEMENTARY INFORMATION: The FECA's principal requirements for
recording and reporting contributions and expenditures in connection
with Federal elections currently appear at 11 CFR 102.9 and 104.3. The
first rule prescribes procedures for committees that qualify as
political committees under the Act to follow in recordkeeping. The
second sets forth procedures for political committees to follow in
reporting campaign-related receipts and disbursements. The procedures
apply to authorized committees, i.e. committee(s) designated by a
candidate to receive contributions and make expenditures on his or her
behalf, and unauthorized committees, those not so designated by a
candidate. 11 CFR 100.5(f).
Although the Commission has made several changes to these sections
in earlier rulemakings, it is now taking a comprehensive look at the
recordkeeping and reporting requirements. Disclosure of campaign
finance in connection with Federal elections is a major goal of the
FECA, as recognized by the Supreme Court. See Buckley v. Valeo, 424
U.S. 1, 67-69 (1976). Hence, the Commission is undertaking to clarify--
and where possible, to simplify--the requirements. The Commission is
aware of the ongoing need to balance the public interest in effective
and timely disclosure with the concerns of the regulated community
about reporting burdens. Thus, the draft rules propose several key
changes: reorganizing the reporting requirements by retaining the
provisions applicable to unauthorized committees at 11 CFR 104.3 and
moving the reporting requirements for candidates' authorized committees
to new 11 CFR 104.17; permitting alternatives for reporting loan
repayments; simplifying the reporting requirements for draws on a line
of credit; and clarifying procedures for reporting disbursements paid
by credit card(s).
Concurrently, a review is underway of the relevant reporting forms:
Form 3 for authorized committees and Form 3X for unauthorized
committees. Under the proposed revisions, the rules and forms would be
revised in a parallel manner. Draft revised Form 3 and Form 3X are
available on request from the Commission's Public Records Branch at 999
E Street, NW, Washington, DC 20463 (202/219-4140 or 800/424-9530).
Lastly, the Act's requirements for filing reports with State
officers appear at 11 CFR part 108. The regulations provide that any
reports required under the Act are also required to be filed with the
Secretary of State, or other State officer, of the appropriate
State(s). The regulations identify the ``appropriate'' State(s) and set
forth duties for State officers regarding the reports. See, e.g., 11
CFR 108.2 and 108.6. The Commission seeks to comport these rules with
recent amendments to the FECA, providing that these requirements do not
apply in certain circumstances. Public Law No. 104-79, 109 Stat. 791
(1995).
The Commission seeks comment on the proposed regulations. It
requests that any comments on the reporting forms be forwarded with
comments on the proposed reporting rules. The Commission also welcomes
comments on the recordkeeping and reporting process, in general,
including any issues not covered by the proposed regulations. A summary
of the proposed revisions follows.
A. Proposed 11 CFR 102.9--Accounting for Contributions and
Expenditures
Proposed Sec. 102.9, governing recordkeeping for contributions and
expenditures, would redesignate current paragraphs (a)(1)-(3) as
paragraphs (a)(2)-(4), respectively. The draft rule also would propose
several substantive changes for procedures set forth at current
paragraphs (a), (b) and (d).
1. Proposed Recordkeeping for Contributions
The proposed revisions first would codify recordkeeping
requirements for contributions of $50 or less. A committee would have
two options for maintaining this information. It may retain the
information specified for contributions in excess of $50 at
redesignated paragraph (a)(2). Or, for many small contributions
received at a fundraising event, the committee may record the name of
the event, the date(s) contributions are received at the event, and the
total amount of contributions received on each day of the event.
The Act requires that a treasurer of a political committee maintain
an account of all contributions received by or on behalf of the
committee but does not specify how records should be kept of receipts
under $50. 2 U.S.C. 432(c)(1). Currently, the rule elaborates that the
treasurer may use ``any reasonable accounting procedure'' to maintain
these records. 11 CFR 102.9(a). The Commission has suggested methods of
recording receipts under $50 in Advisory Opinions (``AO'') 1981-48 and
1980-99. This section would codify that guidance at new paragraph
(a)(1).
2. Proposed Recordkeeping for Disbursements
The draft rule would continue the current rule's definition of
``payee''. See proposed paragraph (b)(2)(i)(A). The rule would provide
that a ``payee'' is a
[[Page 50709]]
person who receives payment directly from the committee, or indirectly
from an agent of the committee, in return for goods or services
extended to the committee or its agent. To comply with the proposed
section, a committee therefore must retain records for all
disbursements it makes, including those by its agent, or primary payee,
to other vendors that perform work for the committee, or secondary
payees. As presented later, a committee similarly would be required to
report all disbursements: payments to primary payees would be reported
as disbursements and, under certain circumstances, payments to
secondary payees would be reported as memo entries. See proposed
Secs. 104.3(c)(2) and 104.17(c)(2).
The Commission has addressed recording and reporting disbursements
to payees in AO 1996-20, AO 1983-25 and in audits. In AO 1996-20, the
Commission determined that the principal campaign committee (``PCC'')--
the committee designated by the candidate as his main authorized
committee--for the re-election of a Member of Congress was permitted to
reimburse the Member's Chief of Staff (``COS'') for his campaign-
related travel expenses. See 11 CFR 100.5(e)(1), 101.1 and 102. The
Commission stated that the PCC must report as memo entries the COS'
payments to vendors for the travel expenses ``* * * to achieve full
disclosure but not inflate disbursement figures.'' See AO 1996-20, note
3. The Commission reached a different conclusion in AO 1983-25. There,
the Commission determined that, after a presidential PCC made direct
payments to certain media consultants, it was not required to itemize
payments by the consultants to other vendors which performed work for
the PCC as long as records were maintained for the latter
disbursements.
The draft rule would codify the guidance of AO 1996-20 for two
reasons. First, the reporting method referenced in this opinion would
indicate how a committee's disbursements are actually used and, thus,
would serve the disclosure policy underlying the Act. Relying alone on
the recordkeeping requirements in AO 1983-25 would not as effectively
result in such disclosure.
Next, the two committees in the opinions are different legal
entities under the Act. The Presidential campaign committee was a
recipient of public funding and, therefore, was required to undergo a
mandatory audit. 26 U.S.C. 9007 and 9038. It also was required to
maintain records of disbursements to secondary payees. See 11 CFR
9003.5, 9033.1(b)(7) and 9033.11. Hence, even if publicly funded
committees were not required to report disbursements to secondary
payees, the Commission could rely on audits to examine these
disbursements. On the other hand, Title 2 committees, such as the PCC
in AO 1996-20, do not receive public funding and are not required to be
audited by statute. Compare 2 U.S.C. 438(b). Thus, the mechanism of a
recordkeeping and reporting requirement is necessary so that the
Commission may examine how Title 2 committees directly, and indirectly,
use funds. The Commission welcomes comments on the proposed
clarification.
The draft rule would revise the recordkeeping requirements in other
respects. The draft rule would more clearly state that an individual
who receives an advance from a committee for his or her own travel or
subsistence would be a ``payee''. The draft rule would raise the amount
of the qualifying advance from $500 or less to $1,000 or less, to
accommodate inflationary increases. See proposed paragraph
(b)(2)(i)(B).
The documentation requirements for disbursements also would be
revised. The draft rule would require that if a committee makes an
advance for travel or subsistence expenses, it must keep all expense
account documentation related to the advance. The present rule requires
only that the committee maintain ``the expense voucher or other expense
account documentation'' (emphasis added). Thus, committees now may
satisfy their recordkeeping obligations by retaining only one type of
documentation, even if more records originally existed for a particular
expense. The Commission proposes this change because the present rule
may conflict with the general requirement to maintain records stated at
11 CFR 104.14. Moreover, the Commission has discovered that an expense
voucher may have required information that other expense account
documentation lacks, or vice-versa. The proposed documentation
requirement would not require committees to create new records. Rather,
it would clarify that committees must preserve all records related to
disbursements, consistent with Sec. 104.14.
The draft rule specifically would address documentation
requirements for disbursements by bank draft accounts and debit cards.
These financial instruments are more commonly used today by committees
and have unique characteristics. Therefore, the Commission is providing
guidance on how to retain required information for transactions based
on these. The Commission also would welcome comments on suitable
documentation for these transactions. Please note that the proposed
requirements for bank draft accounts are distinct from those for share
draft accounts at credit unions, addressed at current paragraph
(b)(2)(iii). The new provisions would address a current concern of
committees and lead to more complete, useful information for committees
and the Commission. See proposed paragraph (b)(2) and new paragraphs
(b)(2)(iv) and (v).
Further, the draft rule would clarify that a committee treasurer
must comply with both the ``best efforts'' rule and the requirements of
11 CFR 104.14. Principally, a treasurer would be required to meet the
recordkeeping duties set forth at proposed Sec. 102.9 and, at the same
time, to maintain bank records and other documents related to reports
required under 11 CFR part 104. See proposed paragraph (d).
The proposed revisions also would require that, in recording
contributions to candidates, a committee identify the election(s) for
which these are made. See proposed paragraph (b)(1)(iii). In addition,
the proposed revisions would amend paragraph (b)(1)(iv) of the section
to cross-reference the new citations for the definition of ``purpose''
in proposed Secs. 104.3 and 104.17. The final rules will contain
conforming amendments to other sections of the regulations to reflect
the revisions proposed for this section.
B. Proposed 11 CFR 104.3--Contents of Reports for Unauthorized
Committees
1. Proposed Restructuring of Current 11 CFR 104.3
The Commission proposes to restructure, into two sections, 11 CFR
104.3 which governs the contents of reports political committees must
file. Proposed 11 CFR 104.3 would state the requirements applied to all
unauthorized committees for reporting receipts and disbursements. The
corresponding requirements for authorized committees would appear at
new 11 CFR 104.17. (Please note that the Commission recently repealed
former 11 CFR 104.17 as an obsolete rule. 60 FR 56506 (November 9,
1995.)) The purpose of the proposed restructuring is to clarify points
of Commission policy, simplify the preparation of reports pursuant to 2
U.S.C. 434, and facilitate committees' efforts to locate the rules that
apply to each. The Commission welcomes comments on the proposed
restructuring.
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2. Proposed Reporting Requirements for Unauthorized Committees
As amended, the section would follow the organization of current 11
CFR 104.3 except for the changes discussed below. Most of the proposed
changes would appear at draft paragraphs (b), (c), (k) and (l) to
address procedures for reporting receipts and disbursements, amending
reports and reporting disbursements paid by credit card(s),
respectively. New paragraph (a) would state the rule's scope and refer
authorized committees to the reporting requirements at new Sec. 104.17.
a. Reporting Receipts of Unauthorized Committees
The proposed amendments would delete the reference to traveler's
checks in the definition of ``Cash on hand''. Under this amendment, a
committee may hold traveler's checks only after receiving these as
contributions, see 11 CFR 104.8, and before depositing these pursuant
to 11 CFR 103.3(a). The proposed amendment is intended to comport with
the Act and to address substantial problems raised by the use of
traveler's checks for disbursements. The Act requires that, except for
petty cash fund expenditures, a committee issue a check from an account
at its campaign depository to make a disbursement. 2 U.S.C. 432(h). See
also 11 CFR 102.10 and 103.3. Traveler's checks are unlike these
checks: traveler's checks are not forwarded to a committee's campaign
depository and are unavailable for review. Thus, at times committees
have been unable to identify payees or the purpose of disbursements by
traveler's checks, and the Commission's efforts to evaluate a
committee's compliance with the Act have been frustrated. The
Commission welcomes comment on the proposal to limit the role of
traveler's checks in campaign finance. See redesignated paragraph
(b)(2).
The categories and itemizations of receipts for unauthorized
committees would be reorganized and revised in draft paragraphs (b) (3)
and (4). Concurrently, Form 3X would be revised to conform to the
proposed rule. Similar provisions for authorized committees would be
addressed in new Sec. 104.17.
Paragraph (b)(3) would set forth the revised categories of receipts
that must be reported on the Detailed Summary Page of Form 3X. The
revisions would reflect the types of receipts received by unauthorized
committees in recent years. For example, the draft rule would add two
new categories: ``loan repayments received'' and ``refunds of
contributions made by the reporting committee to political
committees''. See proposed paragraphs (b)(3) (vi) and (viii). In
addition, the Commission proposes to reduce the burden on committees by
deleting the itemized and unitemized sub-categories for ``offsets to
operating expenditures'' and ``other receipts''. See proposed
paragraphs (b)(3) (vii) and (ix). The draft rule also would clarify
that the category of ``contributions from persons'' would include
contributions from committees that do not qualify as political
committees under the Act, and that ``offsets to operating
expenditures'' would refer to rebates and refunds from vendors. See
proposed paragraphs (b)(3) (i), (ii) and (vii). Further, the draft
paragraph would require year-to-date reporting for itemized and
unitemized sub-categories.
The proposed itemizations of receipts for unauthorized committees,
which must be reported on Schedule A of Form 3X, would follow the
revisions proposed for reporting categories of receipts, discussed
above. Thus, the proposed rule would add an itemization for loan
repayments received, clarify that the current itemization for
``offsets'' refers to rebates and refunds from vendors, and add an
itemization for refunds of contributions. See proposed paragraphs
(b)(4) (v)-(vii).
b. Reporting Disbursements of Unauthorized Committees
The draft rule would reorganize and revise requirements for
reporting categories and itemizations of disbursements at proposed
paragraphs (c) (1) and (2). The proposed revisions would appear on Form
3X, concurrently under revision. (Similar requirements for authorized
committees would be moved to new section 104.17.) The draft rule also
would cross-reference new reporting requirements for disbursements paid
by credit card found at new paragraph (l).
The categories of disbursements, which are reported as total
amounts on the Detailed Summary Page of Form 3X, would be revised to
reflect contemporary disbursement practices by committees.
Illustratively, the categories for refunds of contributions to persons
and to political committees would replace ``offsets''. See proposed
paragraphs (c)(1) (ix) and (x). These revisions also would correspond
to amendments proposed for reports of receipts. To ease committees'
reporting burdens, the draft rule would delete itemized and unitemized
sub-categories for ``other disbursements''. See proposed paragraph
(c)(1)(xii). The proposed amendments additionally would clarify which
disbursements are covered by categories in the current rule for
operating expenditures, transfers to affiliated or party committees,
coordinated party expenditures under 11 CFR 110.7, and other
disbursements. See proposed paragraphs (c)(1) (ii), (iii), (vi), and
(xii). As for receipts, the proposed rule would require year-to-date
reporting for itemized and unitemized sub-categories of disbursements.
The revised itemizations of disbursements for unauthorized
committees, which must be reported on Schedule B of Form 3X, would
appear at proposed paragraph (c)(2). The amended rule would clarify
that a committee may report a loan repayment in two ways: report the
sum of the principal and interest as a single loan repayment, or report
the principal as a loan repayment and the interest as an operating
expenditure. (Committees would continue to report on Schedule C
repayments of principal and the outstanding principal balance for each
loan.) In the past, the Commission has instructed that each interest
payment be reported as a separate operating expenditure. See AO 1991-9
and AO 1986-45. Although the latter method is consistent with the Act's
requirements, the former may be easier for reporting committees. The
Commission seeks to ease the reporting burden on committees and
requests comment on the proposal to permit alternative reporting
methods for loan repayments. See proposed paragraph (c)(2)(vi).
The Commission seeks comments on related points raised by Schedule
D. For example, should a committee report as a payment toward a debt
incurred for goods or services only the principal paid and report as an
operating expenditure the finance charges paid? Or, should a committee
report the sum of these as a debt payment? The Commission is
considering permitting both reporting methods, and requiring that
payments (including accrued interest) on debts owed to a committee be
reported along similar lines.
The revisions proposed for itemizations of disbursements generally
would follow the revisions proposed for categories of disbursements,
discussed above. Thus, a committee would itemize ``refunds of
contributions'' to persons and to political committees in place of
``offsets to contributions''. See proposed paragraphs (c)(2) (viii) and
(ix). The proposed rule would add a requirement that, for certain
itemized disbursements, a committee identify the election for which the
disbursement was made. See proposed paragraphs (c)(2) (iii)-(v) and
(vii). Where a disbursement is a
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contribution, a committee would be required to identify the election
for which it made the contribution and, hence, the particular
contribution limit against which the contribution must be counted, e.g.
1998 General Election. See 2 U.S.C. 441a.
c. Additional Revisions to Section 104.3
Significant changes are proposed at paragraphs (e), ``Reporting
debts and obligations'', (h), ``Legal and accounting services'', (k),
``Amending reports'', and (l), ``Credit card payments'', of the draft
rule. With respect to paragraph (e), the provision governing loans to
candidates would be moved to new Sec. 104.17. The proposed revisions
also would simplify the current rule to require that, for a line of
credit, a committee file Schedule C-1 only when it reports the receipt
of a line of credit or a restructuring of the line. As revised, the
rule would require a committee to report each draw on a line of credit
only as a receipt on Schedule A.
The Commission proposes to simplify the reporting requirements
because it appears that committees often make numerous draws on a line
of credit in a single day. The draws usually are made without
restructuring the line of credit, i.e. changing the repayment terms
such as the interest rate. The Commission therefore has questioned the
present practice of requiring a Schedule C-1 for every routine draw.
The Commission believes that it would be more informative to require
that, after the initial Schedule C-1, a committee file a subsequent
Schedule C-1 only to report a restructuring of the line. This approach
would ease the burden on committees while protecting the public
interest in disclosure. The Commission emphasizes that a committee
would remain obligated to report, as with any debt or obligation, the
outstanding balance on a line of credit on Schedule C.
The reporting requirements would be streamlined for a committee
that receives legal and accounting services pursuant to 11 CFR 100.7(b)
(13) and (14). Draft paragraph (h) would delete the current requirement
that a committee report each person providing the services. The
Commission also is proposing to institute a $200 threshold for
``itemizing'' receipts of these services: a committee would specify in
a memo entry, on Schedule A, the regular employers of persons providing
the services which have spent more than $200 for the services during
the calendar year. For ``unitemized'' receipts of the services, or
those from employers which have not met the $200 threshold, a committee
instead would report as a memo entry, on Schedule A, the total of
amounts paid by regular employers for the services and maintain all
records of the services as described in 11 CFR 102.9(c). A memo entry
is supplemental information about a specific transaction, and the
dollar amount recorded in the memo entry is not included in the totals
reported on the Detailed Summary Page for Form 3X (or Form 3). Thus,
for an employer meeting the $200 threshold, a committee would report a
memo entry: Employer A/Address, $50, on 11/22/96 (where Employer A had
spent $250 for the services in 1996). For regular employers not meeting
the threshold, a committee would report a memo entry: $500 received in
``unitemized'' exempt legal and accounting services (for example, to
reflect 5 employers which individually had not spent more than $200 for
the services in 1996).
New paragraph (k) would be added to clarify the process for
amending reports that are filed with the Commission in hard-copy form.
The new paragraph would present: the deadline for filing an amendment;
optional methods for filing amendments; and a provision for identifying
the specific changes in the amended report(s). These provisions would
apply both to amendments prompted by a Commission notice and to those
initiated by a committee after discovering an error, omission or change
in information. The Commission proposes to standardize the amendment
process to simplify a committee's reporting obligations. The proposed
revisions also are intended to address an issue that frequently arises
concerning amendments to longer reports as well as shorter reports,
such as Schedule H-4 (``Joint Federal and NonFederal Activity
Schedule''). A mechanism to quickly and clearly identify the changes on
amended pages, or reports, submitted by a committee is necessary to
ensure the accuracy of the Commission's database and to assist the
review of disclosure reports. The draft rule provides one mechanism for
ensuring that the Commission and the public are able to locate easily
new or amended information in a report. The Commission welcomes
suggestions as to other effective methods for achieving this result,
and seeks comment generally on the proposed amendment process. In
addition, the Commission notes that a committee which amends an
electronically filed report must follow a different procedure set forth
at 11 CFR 104.18.
New paragraph (l) would clarify and simplify reporting obligations
for disbursements paid by credit card. These provisions would apply to
all disbursements subject to the requirements proposed for categories
of disbursements, and itemized entries for the categories, discussed
earlier. The new paragraph would define a credit card as representing a
credit account with a depository institution or other corporation that
is not a depository institution. See 11 CFR 103.2. For some credit
cards, the monthly balance must be paid in full; for others, it may be
paid in part or in full. A committee would be required to itemize on
Schedule B each payment to a credit card company, the depository
institution or other corporation receiving the payment, the date and
the amount of payment. For example, for a payment that covers an entire
monthly balance, the committee would report: ABC National Bank (VISA),
Anytown, Any State, 12/05/96, $2,000.00. The committee also would
include the payment in the total for the appropriate category on the
Detailed Summary Page of Form 3X (or Form 3).
Under the new provisions, if the disbursement is a partial payment
of a monthly credit card balance, the committee first would report the
information required for a full payment, as noted above, and next
report a memo entry on Schedule B. The memo entry would report the
creditor, the outstanding credit balance, and the corresponding date.
In the example above, the committee would report as a memo entry: ABC
National Bank (VISA), $1,000 balance, as of 12/05/96. It would not
include $1,000 in the appropriate totals on the Detailed Summary Page,
but it would report the unpaid balance as a debt under 11 CFR
104.11(b).
Whether paying its bill in full or in part, a committee also would
be required to report, as a memo entry on Schedule B, each expenditure
that is separately listed on a monthly credit card statement and that
would be required to be itemized under proposed paragraph (c)(2). In
the example above, the committee would report as a memo entry: $600 to
XYZ Printing Company, Anytown, Any State, 12/01/96, by ABC National
Bank VISA, for campaign literature. If a committee made multiple
expenditures to a particular vendor during a single reporting period
and each was required to be itemized, the committee would report a memo
entry for each expenditure. Thus, a committee would itemize a
disbursement to pay all, or part, of a credit card balance and would
identify the itemizable, underlying expenditures that were paid by
credit card. See new paragraphs (l) (2) and (3).
In the Commission's experience, many committees pay for
disbursements with credit card(s) and subsequently
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make partial payments to the credit card company. Thus, regulations
tailored to these transactions would disclose more information about a
committee's disbursements as well as identify a committee's outstanding
credit balances. The Commission welcomes comment on the proposal to
include the new paragraph in the reporting requirements.
Lastly, the proposed amendments would modify section 104.3 in
several other respects. The draft rule would substitute the term
``savings association'' for ``savings and loan institutions'' to
reflect current regulatory practice. See 12 CFR 561.43 (Regulations
Applicable to All Savings Associations, Office of Thrift Supervision,
U.S. Department of Treasury). In addition, the draft provision for
reporting ``cash on hand'' would cross-reference to 11 CFR 104.13 to
clarify that, when a committee receives a non-liquid asset (such as a
computer) as an in-kind contribution, it should report the contribution
in a memo entry rather than as cash. See proposed paragraph (b)(2).
Current paragraph (c), ``Summary of contributions and operating
expenditures'', would be adjusted to reflect the amendments proposed
for reporting categories of receipts and disbursements. See proposed
paragraph (d). Finally, the proposed amendments would move current
paragraph (f), ``Consolidated reports'', to new Sec. 104.17 as it
relates solely to authorized committees, and add guidance for national
party committees in proposed paragraph (g), ``Building funds''.
C. New 11 CFR 104.17--Contents of Reports for Authorized Committees
The new rule would contain all the reporting provisions applicable
to authorized committees of candidates. Also, Form 3 would be revised
to reflect these provisions. New Sec. 104.17 generally would follow the
organization of proposed Sec. 104.3, thus simplifying the reporting
process for authorized committees. The discussion below concentrates on
the provisions unique to authorized committees and not discussed in the
preceding discussion of proposed Sec. 104.3.
1. Reporting Receipts of Authorized Committees
The new rule would address reporting receipts by authorized
committees at new paragraph (b) and would correspond to current 11 CFR
104.3(a) (3) and (4). The categories of receipts at new paragraph
(b)(3) would be reported as total amounts on the Detailed Summary Page
of Form 3. The new section would specify more clearly which categories
include the following receipts: contributions from the candidate; loans
made, guaranteed or endorsed by the candidate; Federal matching funds
for presidential candidates; and the new factor of contributions
refunded by authorized committees for other Federal candidates. See new
paragraphs (b)(3) (iii), (vi), (vii), and (ix). The draft categories
also would provide for transfers from other committees authorized by
the candidate, to the extent permitted by Commission regulations. See
new paragraph (b)(3)(v) and 11 CFR 110.3(c) (4) and (5) and
110.8(d)(2). In addition, reimbursements by any person for ``personal
use'' of committee funds would be added to the category of ``other
receipts''. See new paragraph (b)(3)(x). ``Personal use'' consists of
the use of campaign funds for an obligation of any person that would
exist irrespective of the candidate's campaign or duties as a Federal
officeholder. Certain payments for travel or vehicle expenses may
include both legitimate officeholder or campaign activities and
personal business. The portion of these costs associated with personal
activities must be reimbursed under 11 CFR 113.1(g)(1)(ii) (C) or (D).
As drafted, the categories would continue to state that coordinated
party expenditures, made pursuant to 11 CFR 110.7, are not
contributions and would add that loan repayments received are included
as ``other receipts''. See new paragraph (b)(3) (ii) and (x). To ease
reporting burdens, the draft rule would delete the requirements for
reporting total itemized and unitemized ``offsets to operating
expenditures'' and ``other receipts''. See new paragraphs (b)(3) (viii)
and (x).
The draft rules for itemizing receipts, which must be reported on
Schedule A of Form 3, would follow the changes proposed for categories
of receipts. The new section also would add that an authorized
committee specify the election for which contributions from persons and
from political committees are made when it itemizes the contributions.
See draft paragraphs (b)(4) (i) and (ii). In addition to the
requirements at proposed Sec. 104.3, a committee would be required to
itemize all loans it has received including those made to the candidate
as the committee's agent. If any loan itemized under draft paragraph
(b)(4)(v) represents a contribution by a lender, endorser or guarantor,
the committee would be required to report the election for which the
contribution was made. As drafted, the section would add a provision
governing the itemization of contributions by the candidate, excluding
any loans by the candidate. See new paragraph (b)(4) (iii) and (v).
2. Reporting Disbursements of Authorized Committees
The new rule would govern reporting disbursements at new paragraph
(c). This new paragraph would correspond to current 11 CFR 104.3(b) (2)
and (4).
One issue on which the Commission seeks comment concerns the
requirement that authorized committees report the ``purpose'' of
committee disbursements. See new paragraphs (c)(2)(i) (A) and (B). In
particular, the Commission seeks comment on whether to require more
information on committees' statements of ``purpose'' in the interests
of monitoring adequately possible instances of personal use of campaign
funds. 11 CFR 113.1(g)(1) (i) and (ii). It is intended that any new
requirement would generate meaningful disclosure about committee
disbursements, as intended by the Act, without significantly increasing
committees' reporting burdens.
The Commission's current regulations closely follow the legislative
guidance on this point:
It is the opinion of the Committee that the purpose requirement
will be satisfied by a short statement or description, no more than
one or two words in most cases, of why the money was spent. The
particulars, i.e., the details, of the disbursement are not required
by the statute.
H.R. Rep. No. 422, 96th Cong., 1st Sess. 18 (1979). Despite suggestions
in comments received in the Commission's rulemaking on ``personal
use'', 60 FR 7862 (February 9, 1995), the Commission has been reluctant
to conclude that the purpose statement serves only to regulate personal
use of campaign funds. These statements provide required information
about other committee disbursements, such as a committee's
contributions to a committee authorized by another candidate. Over the
years, however, purpose statements often have lacked sufficient detail
to enable the Commission to determine whether a certain disbursement
represents a candidate's personal use of campaign funds. See Matter
Under Review 3107. In addition, a more informative purpose statement
may be necessary to determine whether a disbursement by an authorized
committee for an office-holder not seeking re-election is impermissible
personal use.
The Commission is obligated to enforce the Act's prohibition on
personal use of campaign funds. 2 U.S.C. 439a. Currently, the only
[[Page 50713]]
reporting provisions addressing this ban are the requirement for
statements of purpose and the requirement to describe certain
disbursements for travel and vehicle expenses for which the committee
expects reimbursement. See 11 CFR 104.17(c)(2)(i) (A) and (B); 11 CFR
113.1(g)(1)(ii) (C) and (D). Hence, the Commission requests comment on
possible mechanisms for generating more disclosure of the purpose of
committee disbursements without heavily burdening reporting committees.
As drafted, the new rule would cross-reference to draft paragraph
(l) governing disbursements paid by credit card. The categories of
disbursements, at new paragraph (c)(1), would be reported as total
amounts on the Detailed Summary Page of Form 3. The draft rule would
specify which categories include the following receipts: transfers to
other committees authorized by the candidate; repayments of loans made
or guaranteed by the candidate; and disbursements by authorized
committees for presidential candidates not subject to the limitations
at 11 CFR 110.8. See new paragraphs (c)(1) (ii)-(iv). Also, the new
rule would add a category for contributions to committees authorized by
other candidates for Federal office. See new paragraph (c)(1)(viii).
The new categories of refunds of contributions to persons and to
political committees would replace the current category of ``offsets to
contributions''. See new paragraphs (c)(1) (v) and (vi). To ease
committees' reporting burdens, the new rule would eliminate reporting
itemized and unitemized subcategories for ``other disbursements''. See
draft paragraph (c)(1)(ix).
Paragraph (c)(2) would contain the reporting requirements for
itemizing disbursements on Schedule B of Form 3. The draft rule would
add a requirement that a committee identify the election for which
contributions and loans to authorized committees for other candidates
are made. See new paragraphs (c)(2) (iii) and (v). A committee would be
required to itemize repayments for all loans used in the campaign,
whether these were made to the committee or to the candidate. See draft
paragraph (c)(2)(iv).
3. Additional Revisions to New Section 104.17
Generally, new paragraphs (d)-(l) would correspond to proposed
paragraphs (d)-(l) of Sec. 104.3 with certain exceptions. The draft
rule would provide for reporting loans to candidates and would move
``Consolidated reports'' from current 11 CFR 104.3(f). See new
paragraphs (e)(2), (3) and (g).
The final rules will contain conforming amendments to other
sections of the regulations to reflect changes in cross-reference
citations, resulting from the reorganization of 11 CFR 104.3 into two
sections and the proposed revisions included therein.
D. 11 CFR Part 108--Filing Copies of Reports and Statements With State
Officers
The FECA governs, inter alia, the filing of campaign finance
reports and statements by political committees with Secretaries of
State or equivalent State officers. Similarly, the Act specifies the
duties of State officers to maintain the duplicate reports. 2 U.S.C.
439. On December 28, 1995, Public Law No. 104-79, 109 Stat. 791 (1995),
amended the FECA to provide that the filing and maintenance
requirements no longer apply where the Commission determines that a
State maintains a system that permits electronic access to, and
duplication of, reports and statements filed with the Commission.
Public Law No. 104-79, section 2 (codified at 2 U.S.C. 439(c)).
The proposed rule would revise 11 CFR part 108 to conform to the
statutory amendments. It also would ease reporting burdens for
political committees and other persons as well as filing
responsibilities for State offices. For example, an unauthorized
committee or other person, making independent expenditures under 11 CFR
part 109, would not be required to file a copy of campaign finance
reports with the relevant State officer where the Commission has
determined that the State office maintains a system that can receive
and duplicate optically imaged reports from the Commission. Optically
imaged reports are stored on special optical disks. See proposed
Secs. 108.1(b)(1) and 108.3(b). These are unlike microfilm and
microfiche. This method also is distinct from electronic filing of
reports, which was the subject of a separate rulemaking by the
Commission. See 61 FR 42371 (August 15, 1996). Current technology
requires that the images be stored and maintained on specialized
equipment at the Commission. To access and retrieve these images,
states must have the equipment necessary to connect to the Commission's
imaging system. Although currently no state office has the necessary
capability, the Commission expects that states will begin to gain the
capability in the near future.
The proposed revisions would apply to reports filed in connection
with primaries for presidential and vice-presidential candidates as
well as reports by unauthorized committees in connection with a
presidential election. See proposed Secs. 108.2 and 108.4. The
revisions also would apply to reports filed in connection with a
candidate's campaign for the office of Representative in, Delegate or
Resident Commissioner to the Congress. The 1995 amendments and a
subsequent rulemaking on the point of entry for campaign finance
reports provide that these reports now are filed with the Commission
rather than the Clerk of the House of Representatives. Public Law 104-
79, section 3; 61 FR 3549 and 6095 (February 1 and 16, 1996). Hence,
the Commission includes the reports in the optical imaging process and
is able to make the reports available to State offices.
However, reports filed by a candidate, or authorized committee(s)
of a candidate, to the office of Senator would not be covered. Since
these reports are filed with the Secretary of the Senate, the
Commission does not receive the original reports and cannot optically
image the copies it receives. Consequently, it is unable to make the
reports available to State offices by this method. See proposed
Sec. 108.3.
Lastly, the provisions governing the duties of state officers to
maintain the duplicate reports would be modified to correspond to the
1995 amendments. See proposed Sec. 108.6.
The Commission seeks comment on all proposed revisions to the
regulations concerning recordkeeping, reporting, and filing with State
offices and on the proposed conforming amendments. The Commission also
welcomes comment on these requirements generally, including any issues
not covered by the proposed regulations. Please note that a subsequent
rulemaking may cover other issues addressed by parts 102 and 104.
Certification of No Effect Pursuant to 5 U.S.C. 605(b)
(Regulatory Flexibility Act)
The attached proposed rules would not, if promulgated, have a
significant economic impact on a substantial number of small entities.
The majority of the attached proposed rules would clarify recordkeeping
and reporting requirements under the Federal Election Campaign Act, and
any affected entities already are required to comply with the
Commission's requirements in this area. The remaining attached proposed
rules for filing copies of reports with State officers would conform to
statutory amendments and reduce any reporting burden of affected
entities. Therefore, these rules would not have a significant
[[Page 50714]]
economic effect on a substantial number of small entities.
List of Subjects
11 CFR Part 102
Political candidates, Reporting and recordkeeping requirements.
11 CFR Part 104
Campaign funds, Political candidates, Political committees and
parties, Reporting and recordkeeping requirements.
11 CFR Part 108
Elections, Reporting and recordkeeping requirements.
For the reasons set out in the preamble, it is proposed to amend
subchapter A, chapter I of title 11 of the Code of Federal Regulations
as follows:
PART 102--REGISTRATION, ORGANIZATION, AND RECORDKEEPING BY
POLITICAL COMMITTEES (2 U.S.C. 433)
1. The authority citation for part 102 would continue to read as
follows:
Authority: 2 U.S.C. 432, 433, 438(a)(8), 441d.
2. Section 102.9 would be amended by redesignating paragraphs
(a)(1) through (3) as paragraphs (a)(2) through (4), respectively, by
adding new paragraph (a)(1), by revising newly designated paragraphs
(a)(2) through (4), the last sentence of (b)(1) introductory text,
(b)(1) (iii) and (iv), (b)(2) introductory text and (b)(2)(i) (A) and
(B), by adding new (b)(2) (iv) and (v), and by revising paragraph (d)
to read as follows:
Sec. 102.9 Accounting for contributions and expenditures (2 U.S.C.
432(c)).
* * * * *
(a) * * *
(1) For contributions of $50 or less, a committee may satisfy the
requirements of this section by keeping either: the name and address of
each contributor, the date of receipt and the amount of each
contribution; or, if the committee received many small contributions
under $50 each through a fundraising event, the name of the event, the
date(s) contributions were received at the event, and the total amount
of contributions received on each day of the event.
(2) For contributions in excess of $50 each, the account shall
include the name and address of the contributor, the date of receipt
and amount of each contribution.
(3) For contributions from any person whose contributions aggregate
more than $200 during a calendar year, the account shall include the
identification of the person, the date of receipt and amount of each
contribution.
(4) For contributions from a political committee, the account shall
include the identification of the political committee, the date of
receipt and amount of each contribution.
(b)(1) * * * The account shall consist of a record of:
* * * * *
(iii) if the disbursement is made for a candidate, the name, the
election (e.g. primary or general) and office (including State and
Congressional district, if any) sought by the candidate.
(iv) For purposes of 11 CFR 102.9(b)(1), purpose has the same
meaning given the term at 11 CFR 104.3(c)(2)(i)(A) and (B) and
104.17(c)(2)(i)(A) and (B).
(2) In addition to the account to be kept under paragraph (b)(1) of
this section, the receipt(s) or invoice(s) from the payee or the
canceled check(s) to the payee shall be obtained and kept for each
disbursement in excess of $200, by or on behalf of, the committee,
except that credit card transactions shall be documented in accordance
with paragraph (b)(2)(ii) of this section, disbursements by share draft
or check drawn on a credit union account shall be documented in
accordance with paragraph (b)(2)(iii) of this section, bank draft
account disbursements shall be documented in accordance with paragraph
(b)(2)(iv) of this section, and debit card transactions shall be
documented in accordance with paragraph (b)(2)(v) of this section.
(i)(A) For purposes of paragraph (b)(2) of this section, payee
means the person who provides the goods or services to the committee or
its agent in return for payment, except that an employee of a political
committee, or other individual, who receives an advance from the
committee of $1,000 or less for his or her own travel and subsistence
shall be considered the payee for that advance.
(B) For any advance to an employee of a political committee, or
other individual, of $1,000 or less for travel and subsistence, the
committee shall obtain and keep all expense account documentation
including the expense voucher and the canceled check(s) to the
recipient of the advance.
* * * * *
(iv) For purposes of paragraph (b)(2) of this section, a copy of
the draft drawn on a bank draft account may be used as a duplicate
record of the draft provided that the monthly account statement showing
that the draft was paid by the bank also is retained.
(v) For purposes of paragraph (b)(2) of this section, the point of
sale receipt for a debit card transaction may be used as a duplicate
record of the transaction provided that the monthly account statement
reflecting the debit charge also is retained.
* * * * *
(d) * * * The treasurer, or his or her authorized agent, also shall
meet the requirements of 11 CFR 104.14.
* * * * *
PART 104--REPORTS BY POLITICAL COMMITTEES (2 U.S.C. 434)
3. The authority citation for part 104 would continue to read as
follows:
Authority: 2 U.S.C. 431(1), 431(8), 431(9), 432(d), 432(i), 434,
438(a)(8), 438(b), 439a.
4. Section 104.3 would be revised to read as follows:
Sec. 104.3 Contents of reports for political committees other than
authorized committees (2 U.S.C. 434(b), 439a).
(a) Scope. The requirements of this section apply to all political
committees other than authorized committees. Authorized committees
shall meet the requirements for reporting receipts and disbursements
set forth at 11 CFR 104.17.
(b) Reporting of Receipts. (1) General. Each report filed under
this section shall disclose the total amount of receipts for the
reporting period and for the calendar year and shall disclose the
information set forth at paragraphs (b)(2) through (4) of this section.
The first report filed by a committee shall also include all amounts
received prior to becoming a political committee under 11 CFR 100.5,
even if these amounts were not received during the current reporting
period.
(2) Cash on hand. The amount of cash on hand at the beginning of
the reporting period, including: currency; balance on deposit in banks,
savings associations and other depository institutions; certificates of
deposit, treasury bills and any other committee investments valued at
cost. Non-liquid assets on hand, if received as in-kind contributions,
should be reported in accordance with 11 CFR 104.13.
(3) Categories of receipts. Each report shall disclose the total
amount of receipts received during the reporting period and during the
calendar year for each of the following categories:
(i) Contributions from persons other than political committees,
including individuals and committees that do not qualify as political
committees under the Act;
(A) Itemized contributions;
(B) Unitemized contributions;
(ii) Contributions from political committees;
[[Page 50715]]
(A) Party committees;
(B) Authorized committees;
(C) Unauthorized committees other than party committees;
(iii) Total contributions (add contributions from persons to
contributions from political committees);
(iv) Transfers from affiliated committees and, where the reporting
committee is a political party committee, transfers from other party
committees of the same party, regardless of whether the committees are
affiliated;
(v) Loans received;
(vi) Loan repayments received;
(vii) Offsets to operating expenditures, such as vendor refunds and
rebates; (viii) Refunds of contributions made by the reporting
committee to political committees;
(ix) Other receipts (such as dividends and interest);
(x) The total sum of all receipts.
(4) Itemization of receipts. The identification (as defined at 11
CFR 100.12) of each contributor and the aggregate year-to-date total
for the contributor in each of the following categories shall be
reported.
(i) Each person other than a political committee, including
individuals and committees which do not qualify as political committees
under the Act, who makes a contribution to the reporting committee
during the reporting period, whose contribution(s) aggregate in excess
of $200 per calendar year, together with the date of receipt and amount
of the contribution(s), except that the reporting committee may elect
to report this information for contributors of lesser amount(s) on a
separate schedule;
(ii) All political committees which make contributions to the
reporting committee during the reporting period, together with the date
of receipt and amount of the contribution(s);
(iii) Each affiliated political committee which transfers funds to
the reporting committee during the reporting period and, where the
reporting committee is a political party committee, each transfer of
funds to the reporting committee from another party committee of the
same party regardless of whether the committees are affiliated,
together with the date and amount of the transfer;
(iv) Each person who makes a loan to the reporting committee during
the reporting period, together with the identification of any endorser
or guarantor of the loan, the date the loan was made, and the amount or
value of the loan;
(v) Each person who makes a loan repayment to the reporting
committee during the reporting period, together with the date and
amount of the repayment;
(vi) Each person who provides an offset to operating expenditures,
such as vendor rebates and refunds, to the reporting committee in an
aggregate amount in excess of $200 within the calendar year, together
with the date and amount of the offset;
(vii) Each political committee, including authorized committees,
which refunds during the reporting period a contribution made by the
reporting committee, together with the date of receipt and amount of
the refund; and
(viii) Each person who provides any dividend, interest, or other
receipt to the reporting committee, in an aggregate amount in excess of
$200 within the calendar year, together with the date and amount of the
receipt.
(c) Reporting of Disbursements. Each report filed under this
section shall disclose the total amount of all disbursements for the
reporting period and for the calendar year and shall disclose the
information set forth at paragraphs (c)(1) and (2) of this section. If
a committee has paid any disbursements by credit card, the committee
shall report the disbursements in accordance with paragraph (l) of this
section. The first report filed by a committee shall also include all
amounts disbursed prior to becoming a political committee under 11 CFR
100.5, even if these amounts were not disbursed during the current
reporting period.
(1) Categories of disbursements. Each report shall disclose the
total amount of disbursements made during the reporting period and
during the calendar year in each of the following categories:
(i) Shared Federal and nonfederal operating expenditures;
(A) Federal share;
(B) Nonfederal share;
(ii) Other Federal operating expenditures;
(A) Itemized expenditures;
(B) Unitemized expenditures;
(C) Total Federal operating expenditures;
(iii) Transfers to affiliated political committees and, where the
reporting committee is a political party committee, transfers to other
party committees of the same party, regardless of whether the
committees are affiliated;
(iv) Contributions to political committees including authorized
committees and unauthorized committees, such as party committees;
(v) Independent expenditures made (2 U.S.C. 434(b)(4)(H)(iii));
(vi) Coordinated party expenditures made (2 U.S.C. 441a(d));
(vii) Loan repayments made;
(viii) Loans made by the reporting committee;
(ix) Refunds of contributions to persons, including individuals,
other than political committees;
(A) Itemized refunds;
(B) Unitemized refunds;
(x) Refunds of contributions to political committees;
(A) Party committees;
(B) Authorized committees;
(C) Unauthorized committees other than party committees;
(xi) Total contribution refunds (add contribution refunds to
persons and contribution refunds to political committees);
(xii) Other disbursements, including any disbursements to
nonfederal candidate committees;
(xiii) Total disbursements;
(xiv) Total Federal disbursements.
(2) Itemization of disbursements. Each report shall disclose the
full name and address of each person in each of the following
categories, as well as the information required by each category. For
each disbursement governed by paragraphs (c)(2)(i) or (x) of this
section, the report shall disclose this information for each vendor or
other person to whom a disbursement is made directly by the committee,
and shall contain a memo entry for each vendor or other person to whom
a disbursement is made by an agent of the committee.
(i) Each person to whom an expenditure in an aggregate amount or
value in excess of $200 within the calendar year is made by the
reporting committee to meet the committee's operating expenses,
together with the date, amount, and purpose of the operating
expenditure;
(A) As used in paragraph (c)(2) of this section, purpose means a
brief statement or description of why the disbursement was made.
(B) Examples of statements or descriptions which adequately
describe the purpose of a disbursement include the following: dinner
expenses, media, salary, polling, travel, party fees, phone banks,
travel expenses, travel expense reimbursement, and catering costs.
However, statements or descriptions such as advance, election day
expenses, other expenses, expenses, expense reimbursement,
miscellaneous, outside services, get-out-the-vote and voter
registration would not meet the requirements of paragraph (c)(2) of
this section for reporting the purpose of an expenditure.
(ii) Each affiliated political committee to which a transfer is
made by the reporting committee during the reporting period and, where
the
[[Page 50716]]
reporting committee is a political party committee, each transfer of
funds by the reporting committee to another party committee of the same
party regardless of whether the committees are affiliated, together
with the date and amount of the transfer;
(iii) Each political committee, which has received a contribution
from the reporting committee during the reporting period, together with
the date and amount of the contribution and, for contributions to
authorized committees, the candidate's name, the election (e.g. primary
or general) and office sought (including State or Congressional
district, where applicable);
(iv) (A) Each person who receives any disbursement during the
reporting period in an aggregate amount or value in excess of $200
within the calendar year in connection with an independent expenditure
by the reporting committee, together with the date, amount, and purpose
of the independent expenditure(s);
(B) For each independent expenditure reported, the committee must
also provide a statement which indicates whether the independent
expenditure is in support of, or in opposition to, a particular
candidate, as well as the name of the candidate, the election and
office sought by the candidate (including State and Congressional
district, where applicable), and a certification, under penalty of
perjury, as to whether the independent expenditure is made in
cooperation, consultation or concert with, or at the request or
suggestion of, any candidate or any authorized committee or its agent;
(C) The information required by paragraph (c)(2)(iv)(A) and (B) of
this section shall be reported on Schedule E as part of a report
covering the reporting period in which the aggregate disbursements for
any independent expenditure to any person exceed $200 per calendar
year. Schedule E shall also include the total of all such expenditures
of $200 or less made during the reporting period.
(v) Each person who receives any expenditure from the reporting
committee during the reporting period in connection with an expenditure
under 11 CFR 110.7 (2 U.S.C. 441a(d)), together with the date, amount,
and purpose of the expenditure as well as the name of, and the election
and office sought by (including State and Congressional district, where
applicable), the candidate on whose behalf the expenditure is made;
(vi) Each person who receives a loan repayment from the reporting
committee during the reporting period, together with the date and
amount of repayment;
(A) For each loan repayment, the committee shall either report the
principal and the interest as separate disbursements, or, it shall
report the sum of these as a single disbursement. If the committee
applies the former method, the principal shall be reported on Schedules
B and C as a loan repayment and the interest shall be reported on
Schedule B as an operating expenditure. If the committee applies the
latter method, the sum of the principal and the interest shall be
reported on Schedule B as a loan repayment and only the principal shall
be reported on Schedule C;
(B) The committee shall use one reporting method for the duration
of a loan;
(vii) Each person who has received a loan from the reporting
committee during the reporting period, together with the date and
amount or value of the loan, and for any authorized committee that has
received a loan, the candidate's name, the election and office sought
(including State or Congressional district, where applicable);
(viii) Each person, other than a political committee, who receives
a contribution refund from the reporting committee during the reporting
period where the receipt of the contribution was reported under
paragraph (b)(4)(i) of this section, together with the date and amount
of the refund;
(ix) Each political committee which receives a contribution refund
from the reporting committee during the reporting period where the
receipt of the contribution was reported under paragraph (b)(4)(ii) of
this section, together with the date and amount of the refund; and
(x) Each person, including nonfederal candidate committees, who has
received any disbursement during the reporting period not otherwise
disclosed under paragraph (c)(2) of this section, to whom the aggregate
amount or value of disbursements made by the reporting committee
exceeds $200 within the calendar year, together with the date, amount,
and purpose of the disbursement(s).
(d) Summary of contributions and operating expenditures. Each
report filed under this section shall disclose for both the reporting
period and the calendar year:
(1)(i) The total contributions to the reporting committee;
(ii) The total of contribution refunds;
(iii) The net contributions (subtract total of contribution refunds
from total contributions);
(2)(i) The reporting committee's total Federal operating
expenditures;
(ii) The total offsets to operating expenditures; and
(iii) The net Federal operating expenditures (subtract total
offsets from total Federal operating expenditures).
(e) Reporting debts and obligations. Each report filed under this
section shall, on Schedule C or D, as appropriate, disclose the amount
and nature of outstanding debts and obligations owed by or to the
reporting committee. Where these debts and obligations are settled for
less than their reported amount or value, each report filed under this
section shall contain a statement as to the circumstances and
conditions under which the debts or obligations were extinguished and
the amount paid. See 11 CFR 116.7.
(1) In addition, when a committee obtains a loan or a line of
credit from a lending institution as described in 11 CFR 100.7(b)(11)
and 100.8(b)(12), it shall disclose in the next due report the
following information on Schedule C-1:
(i) The date and amount of the loan or line of credit;
(ii) The interest rate and repayment schedule of the loan or line
of credit;
(iii) The types and value of traditional collateral or other
sources of repayment that secure the loan or the line of credit, and
whether that security interest is perfected;
(iv) An explanation of the basis upon which the loan was made or
the line of credit established, if not made on the basis of either
traditional collateral or other sources of repayment described in 11
CFR 100.7(b)(11)(i) (A) and (B) and 100.8(b)(12)(i) (A) and (B); and
(v) A certification from the lending institution that the
borrower's responses to paragraphs (e)(1) (i) through (iv) of this
section are accurate, to the best of the lending institution's
knowledge; that the loan was made or the line of credit established on
terms and conditions (including interest rate) no more favorable at the
time than those imposed for similar extensions of credit to other
borrowers of comparable credit worthiness; and that the lending
institution is aware of the requirement that a loan or line of credit
must be made on a basis which assures repayment and that the lending
institution has complied with Commission regulations at 11 CFR
100.7(b)(11) and 100.8(b)(12).
(2) The committee shall submit a copy of the loan or line of credit
agreement which describes the terms and conditions of the loan or line
of credit when it files Schedule C-1.
(3) The committee shall file with the next due report a Schedule C-
1 each
[[Page 50717]]
time a loan or a line of credit is restructured to change the terms of
the repayment.
(4) The committee shall report a receipt of funds in the next due
report, on Schedule A, each time it makes a draw on a line of credit.
(f) Use of pseudonyms. (1) To determine whether the names and
addresses of its contributors are being used in violation of 11 CFR
104.15 to solicit contributions or for commercial purposes, a committee
may submit up to ten (10) pseudonyms on each report filed under this
section.
(2) For purposes of this section, a pseudonym is a wholly
fictitious name which does not represent the name of an actual
contributor to a committee.
(3) If a committee uses pseudonyms it shall subtract the total
dollar amount of the fictitious contributions from the total amount
listed on line 11(a)(ii) of the Detailed Summary page, ``Contributions
from Individuals/Persons, Unitemized''. Thus the committee will, for
this purpose only, be overstating the amount of itemized contributions
received and understating the amount of unitemized contributions
received.
(4) No committee which files reports under this section shall
attribute more than $5,000 in contributions to the same pseudonym in
any calendar year.
(5) A committee using pseudonyms shall send a list of the
pseudonyms under separate cover directly to the Reports Analysis
Division, Federal Election Commission, 999 E Street, N.W., Washington,
DC 20463, on or before the date on which any report containing such
pseudonyms is filed with the Secretary of the Senate or the Commission.
The Commission shall maintain the list, but shall exclude it from the
public record. A committee shall not send any list of pseudonyms to the
Secretary of the Senate or to any Secretary of State or equivalent
State officer.
(6) A committee shall not use pseudonyms for the purpose of
circumventing the reporting requirements or the limitations and
prohibitions of the Act.
(g) Building funds. Gifts, subscriptions, loans, advances, deposits
of money or anything of value made to defray costs of construction or
purchase of office facilities received by a political committee in
accordance with 11 CFR 100.7(b)(12) shall be reported as a memo entry
on Schedule A. National party committees shall report building fund
receipts and disbursements in accordance with 11 CFR 104.8(f) and
104.9(d).
(h) Legal and accounting services. A committee which receives legal
or accounting services pursuant to 11 CFR 100.7(b) (13) and (14) during
the reporting period shall report the services in accordance with
paragraphs (i) (1) or (2) of this section.
(1) If the regular employer of person(s) who provide the services
has paid in excess of $200 for the services during the calendar year,
the committee shall report as a memo entry, on Schedule A, the amounts
paid for the services by the regular employer together with the date(s)
the services were performed.
(2) For each regular employer who has paid no more than $200 for
the services during the calendar year, the committee shall report as a
memo entry, on Schedule A, the sum of the amount(s) paid by each
regular employer of person(s) who provide the services. The committee
shall preserve all records of these services, for the period required
by 11 CFR 102.9(c), to reflect the name of each regular employer, the
amounts paid by each, and the date(s) the services were performed.
(i) Cumulative reports. The reports required to be filed under 11
CFR 104.5 shall be cumulative for the calendar year to which they
relate, but if there has been no change in a category reported in a
previous report during that year, only the amount thereof need be
carried forward.
(j) Earmarked contributions. Earmarked contributions shall be
reported in accordance with 11 CFR 110.6. See also 11 CFR 102.8(c).
(k) Amending reports. A committee shall change or correct a report
previously filed under this section, no later than the next due report,
after the committee discovers an error, omission or change in the
information submitted in the report. A committee may submit only those
pages that have been changed or corrected, or it may refile the entire,
amended report. The committee shall identify the changes, either in a
cover letter or on the amended pages or report, by specifying the lines
on the Schedule(s) or Form(s) that have been amended.
(l) Credit card payments. (1) Where a committee has paid, by credit
card, any disbursement(s) subject to paragraphs (c) (1) and (2) of this
section, the committee shall report these disbursements in accordance
with this paragraph. For the purposes of this section, a credit card
represents a credit account with a depository institution (see 11 CFR
103.2) or other corporation that is not a depository institution. A
credit account may permit the committee to make a partial payment of
each monthly balance or may require the committee to pay each monthly
balance in full.
(2) The reporting committee shall itemize on Schedule B each
payment to a credit card issuer by specifying the depository
institution or other corporation to which payment was made, the date
and amount of payment. Where the committee has made a partial payment
of a monthly balance, the committee shall report a memo entry for the
outstanding credit balance on Schedule B and report the outstanding
balance as a debt to the extent required by 11 CFR 104.11(b).
(3) Any disbursement reflected on a monthly account statement for a
credit card, that otherwise is required to be itemized by paragraph
(c)(2) of this section, shall be reported as a memo entry on Schedule B
in addition to the information required under paragraph (l)(2) of this
section.
5. New Sec. 104.17 would be added to read as follows:
Sec. 104.17 Contents of reports for authorized committees (2 U.S.C.
434(b), 439a).
(a) Scope. The requirements of this section apply to all authorized
committees of candidates for Federal office. All other political
committees shall meet the requirements for reporting receipts and
disbursements set forth at 11 CFR 104.3.
(b) Reporting of Receipts. (1) General. Each report filed under
this section shall disclose the total amount of receipts for the
reporting period and for the calendar year and shall disclose the
information set forth at paragraphs (b)(2) through (4) of this section.
The first report filed by a committee shall also include all amounts
received prior to becoming a political committee under 11 CFR 100.5,
even if these amounts were not received during the current reporting
period.
(2) Cash on hand. The amount of cash on hand at the beginning of
the reporting period, including: currency; balance on deposit in banks,
savings associations and other depository institutions; certificates of
deposit, treasury bills and any other committee investments valued at
cost. Non-liquid assets on hand, if received as in-kind contributions,
should be reported in accordance with 11 CFR 104.13.
(3) Categories of receipts. Each report shall disclose the total
amount of receipts received during the reporting period and during the
calendar year for each of the following categories:
(i) Contributions from persons other than political committees,
including individuals and committees that do not qualify as political
committees under the Act, but excluding the candidate
[[Page 50718]]
who authorized the reporting committee;
(A) Itemized contributions;
(B) Unitemized contributions;
(ii) Contributions from political committees;
(A) Party committees, except that expenditures made under 11 CFR
110.7 (2 U.S.C. 441a(d)) by a party committee shall not be reported as
contributions by the authorized committee on whose behalf they are
made;
(B) Authorized committees of other candidates;
(C) Unauthorized committees other than party committees;
(iii) Contributions from the candidate, excluding loans which are
reported under paragraph (b)(3)(vi)(A) of this section;
(iv) Total contributions (add contributions from persons, political
committees and the candidate);
(v) Transfers from other committee(s) authorized by the candidate,
regardless of amount;
(vi) Loans received;
(A) Loans made, guaranteed, or endorsed by the candidate to his or
her authorized committee;
(B) All other loans to the committee;
(C) Total loans;
(vii) For authorized committee(s) of Presidential candidates,
Federal funds received under chapters 95 and 96 of the Internal Revenue
Code of 1954 (Title 26, United States Code);
(viii) Offsets to operating expenditures, such as vendor refunds
and rebates;
(ix) Refunds of contributions made by the reporting committee to
committees authorized by other candidates for Federal office and to
other political committees;
(x) Other receipts (such as dividends, interest, loan repayments
and reimbursements received pursuant to 11 CFR 113.1(g));
(xi) The total sum of all receipts.
(4) Itemization of receipts. The identification (as defined at 11
CFR 100.12) of each contributor and the aggregate year-to-date total
for the contributor in each of the following categories shall be
reported.
(i) Each person other than a political committee, including
individuals and committees that do not qualify as political committees
under the Act but excluding the candidate who authorized the reporting
committee, who makes a contribution to the committee during the
reporting period, whose contribution(s) aggregate in excess of $200 per
calendar year, together with the date of receipt, the amount of the
contribution(s) and the election(s) (e.g. primary or general) for which
each contribution is made, except that the committee may elect to
report this information for contributors of lesser amount(s) on a
separate schedule;
(ii) All political committees which make contributions to the
reporting committee during the reporting period, together with the date
of receipt, amount of the contribution and the election(s) for which
each contribution is made;
(iii) Each contribution by the candidate to the reporting committee
during the reporting period, together with the date of receipt and
amount of the contribution;
(iv) Each committee authorized by the candidate which transfers
funds to the reporting committee during the reporting period, together
with the date and amount of the transfer;
(v) Each person who makes a loan during the reporting period to the
reporting committee or to the candidate acting as an agent of the
committee, together with the identification of any endorser or
guarantor of the loan, the date the loan was made, the amount or value
of the loan, and, where applicable, the election(s) for which the loan
was made;
(vi) Each person who makes a loan repayment to the reporting
committee during the reporting period, together with the date and
amount of the repayment;
(vii) Each person who provides an offset to operating expenditures,
such as vendor rebates and refunds, to the reporting committee, in an
aggregate amount in excess of $200 within the calendar year, together
with the date and amount of the offset;
(viii) Each authorized committee for other candidates for Federal
office and any other political committee which, during the reporting
period, refunds a contribution made by the reporting committee,
together with the date of receipt and amount of the refund; and
(ix) Each person who provides any dividend, interest, reimbursement
received pursuant to 11 CFR 113.1(g) or other receipt to the reporting
committee, in an aggregate amount in excess of $200 within the calendar
year, together with the date and amount of the receipt.
(c) Reporting of Disbursements. Each report filed under this
section shall disclose the total amount of disbursements for the
reporting period and for the calendar year and shall disclose the
information set forth at paragraph (c)(1) and (2) of this section. If a
committee has paid any disbursements by credit card, the committee
shall report these in accordance with paragraph (l) of this section.
The first report filed by a committee shall also include all amounts
disbursed prior to becoming a political committee under 11 CFR 100.5,
even if these amounts were not disbursed during the current reporting
period.
(1) Categories of disbursements. Each report shall disclose the
total amount of disbursements made during the reporting period and
during the calendar year in each of the following categories:
(i) Operating expenditures;
(A) Itemized expenditures;
(B) Unitemized expenditures;
(C) Total operating expenditures;
(ii) Transfers to other committees authorized by the candidate;
(iii) Loan repayments made;
(A) Repayment of loans made by or guaranteed by the candidate;
(B) Repayment of all other loans;
(C) Total loan repayments;
(iv) For an authorized committee of a candidate for the office of
President, disbursements not subject to the limitations of 11 CFR 110.8
(2 U.S.C. 441a(b));
(v) Refunds of contributions to persons, including individuals but
excluding the candidate and political committees;
(A) Itemized refunds;
(B) Unitemized refunds;
(vi) Refunds of contributions to political committees;
(A) Party committees;
(B) Authorized committees for other candidates for Federal office;
(C) Unauthorized committees other than party committees;
(vii) Total contribution refunds (add contribution refunds to
persons and contribution refunds to political committees);
(viii) Contributions to committees authorized by other candidates
for Federal office and to other political committees;
(ix) Other disbursements, including any disbursements to nonfederal
candidate committees;
(x) Total disbursements.
(2) Itemization of disbursements. Each report shall disclose the
full name and address of each person in each of the following
categories, as well as the information required by each category,
whether the disbursement was made by the reporting committee or the
candidate acting as its agent. For each disbursement governed by
paragraphs (c)(2)(i) or (viii) of this section, the report shall
disclose this information for each vendor or other person to whom a
disbursement is made directly by the committee, and shall contain a
memo entry for each vendor or other person to whom a disbursement is
made by an agent of the committee.
[[Page 50719]]
(i) Each person to whom an expenditure in an aggregate amount or
value in excess of $200 within the calendar year is made by the
reporting committee to meet the committee's operating expenses,
together with the date, amount, and purpose of the operating
expenditure;
(A) As used in paragraph (c)(2) of this section, purpose means a
brief statement or description of why the disbursement was made.
(B) Examples of statements or descriptions which adequately
describe the purpose of a disbursement include the following: dinner
expenses, media, salary, polling, travel, party fees, phone banks,
travel expenses, travel expense reimbursement, and catering costs.
However, statements or descriptions such as advance, election day
expenses, other expenses, expenses, expense reimbursement,
miscellaneous, outside services, get-out-the-vote and voter
registration would not meet the requirements of paragraph (c)(2) of
this section for reporting the purpose of an expenditure.
(C) In addition to reporting the purpose described in paragraph
(c)(2)(i) (A) and (B) of this section, whenever the reporting committee
itemizes a disbursement that is partially or entirely a personal use
for which reimbursement is required under 11 CFR 113.1(g)(1)(ii) (C) or
(D), it shall provide a brief explanation of the activity for which
reimbursement is required.
(ii) Each committee authorized by the same candidate to which a
transfer is made by the reporting committee during the reporting
period, together with the date and amount of the transfer;
(iii) Each authorized committee for other candidates for Federal
office and any other political committee which has received a
contribution from the reporting committee during the reporting period,
together with the date and amount of the contribution and, for any
authorized committee that has received a contribution, the candidate's
name, the election (e.g. primary or general) and office sought
(including State or Congressional district, where applicable);
(iv) Each person who receives a loan repayment from the reporting
committee during the reporting period, together with the date and
amount of the loan repayment;
(A) All loan repayments from the reporting committee;
(B) All loan repayments from the candidate, if the proceeds of the
loan were used in connection with the candidate's campaign;
(C) For each loan repayment, the committee shall either report the
principal and the interest as separate disbursements, or, it shall
report the sum of these as a single disbursement. If the committee
applies the former method, the principal shall be reported on Schedules
B and C as a loan repayment and the interest shall be reported on
Schedule B as an operating expenditure. If the committee applies the
latter method, the sum of the principal and the interest shall be
reported on Schedule B as a loan repayment and only the principal shall
be reported on Schedule C;
(D) The committee shall use one reporting method for the duration
of a loan;
(v) Each person who has received a loan from the reporting
committee during the reporting period, together with the date and
amount or value of the loan, and for any authorized committee that has
received a loan, the candidate's name, the election and office sought
(including State or Congressional district, where applicable);
(vi) Each person who receives a contribution refund from the
reporting committee during the reporting period where the receipt of
the contribution was reported under paragraph (b)(4)(i) of this
section, together with the date and amount of the refund;
(vii) Each political committee which receives a contribution refund
from the reporting committee during the reporting period where the
receipt of the contribution was reported under paragraph (b)(4)(ii) of
this section, together with the date and amount of the refund; and
(viii) Each person, including nonfederal candidate committees, who
has received any disbursement during the reporting period not otherwise
disclosed under paragraph (c)(2) of this section, to whom the aggregate
amount or value of disbursements made by the reporting committee
exceeds $200 within the calendar year, together with the date, amount,
and purpose of the disbursement(s).
(d) Summary of contributions and operating expenditures. Each
report filed under this section shall disclose for both the reporting
period and the calendar year:
(1)(i) The total contributions to the reporting committee;
(ii) The total of contribution refunds;
(iii) The net contributions (subtract total of contribution refunds
from total contributions);
(2) (i) The reporting committee's total Federal operating
expenditures;
(ii) The total offsets to operating expenditures; and
(iii) The net Federal operating expenditures (subtract total
offsets from total Federal operating expenditures).
(e) Reporting debts and obligations. (1) Each report filed under
this section shall, on Schedule C or D, as appropriate, disclose the
amount and nature of outstanding debts and obligations owed by or to
the reporting committee. Where these debts and obligations are settled
for less than their reported amount or value, each report filed under
this section shall contain a statement as to the circumstances and
conditions under which the debts or obligations were extinguished and
the amount paid. See 11 CFR 116.7.
(2) A loan obtained by an individual prior to becoming a candidate
for use in connection with that individual's campaign shall be reported
as an outstanding loan owed to the lender by the candidate's principal
campaign committee, if the loan is outstanding at the time the
individual becomes a candidate.
(3) When a candidate or a committee obtains a loan or a line of
credit from a lending institution as described in 11 CFR 100.7(b)(11)
and 100.8(b)(12), it shall disclose in the next due report the
following information on Schedule C-1 or C-P-1:
(i) The date and amount of the loan or line of credit;
(ii) The interest rate and repayment schedule of the loan or line
of credit;
(iii) The types and value of traditional collateral or other
sources of repayment that secure the loan or the line of credit, and
whether that security interest is perfected;
(iv) An explanation of the basis upon which the loan was made or
the line of credit established, if not made on the basis of either
traditional collateral or other sources of repayment described in 11
CFR 100.7(b)(11)(i) (A) and (B) and 100.8(b)(12)(i) (A) and (B); and
(v) A certification from the lending institution that the
borrower's responses to paragraphs (e)(1)(i) through (iv) of this
section are accurate, to the best of the lending institution's
knowledge; that the loan was made or the line of credit established on
terms and conditions (including interest rate) no more favorable at the
time than those imposed for similar extensions of credit to other
borrowers of comparable credit worthiness; and that the lending
institution is aware of the requirement that a loan or line of credit
must be made on a basis which assures repayment and that the lending
institution has complied with Commission regulations at 11 CFR
100.7(b)(11) and 100.8(b)(12).
[[Page 50720]]
(4) The committee shall submit a copy of the loan or line of credit
agreement which describes the terms and conditions of the loan or line
of credit when it files Schedule C-1 or C-P-1.
(5) The committee shall file with the next due report a Schedule C-
1 or C-P-1 each time a loan or a line of credit is restructured to
change the terms of the repayment.
(6) The committee shall report a receipt of funds in the next due
report, on Schedule A, each time it makes a draw on a line of credit.
(f) Use of pseudonyms. (1) To determine whether the names and
addresses of its contributors are being used in violation of 11 CFR
104.15 to solicit contributions or for commercial purposes, a committee
may submit up to ten (10) pseudonyms on each report filed under this
section.
(2) For purposes of this section, a pseudonym is a wholly
fictitious name which does not represent the name of an actual
contributor to a committee.
(3) If a committee uses pseudonyms it shall subtract the total
dollar amount of the fictitious contributions from the total amount
listed on line 11(a)(ii) of the Detailed Summary page, ``Contributions
from Individuals/Persons, Unitemized''. Thus the committee will, for
this purpose only, be overstating the amount received and understating
the amount of unitemized contributions received.
(4) No committee which files reports under this section shall
attribute more than $5,000 in contributions to the same pseudonym in
any calendar year.
(5) A committee using pseudonyms shall send a list of the
pseudonyms under separate cover directly to the Reports Analysis
Division, Federal Election Commission, 999 E Street, N.W., Washington,
DC 20463, on or before the date on which any report containing such
pseudonyms is filed with the Secretary of the Senate or the Commission.
The Commission shall maintain the list, but shall exclude it from the
public record. A committee shall not send any list of pseudonyms to the
Secretary of the Senate or to any Secretary of State or equivalent
State officer.
(6) A committee shall not use pseudonyms for the purpose of
circumventing the reporting requirements or the limitations and
prohibitions of the Act.
(g) Consolidated reports. Each principal campaign committee shall
consolidate in each report those reports required to be filed with it.
These consolidated reports shall include reports submitted to it by any
authorized committees and the principal campaign committee's own
report. The consolidation shall be made on FEC Form 3-Z and shall be
submitted with the reports of the principal campaign committee and with
the reports, or applicable portions thereof, of the committees shown on
the consolidation.
(h) Legal and accounting services. A committee which receives legal
or accounting services pursuant to 11 CFR 100.7(b)(14) during the
reporting period shall report the services in accordance with
paragraphs (i) (1) or (2) of this section.
(1) If the regular employer of person(s) who provide the services
has paid in excess of $200 for the services during the calendar year,
the committee shall report as a memo entry, on Schedule A, the amounts
paid for the services by the regular employer together with the date(s)
the services were performed.
(2) For each regular employer who has paid no more than $200 for
the services during the calendar year, the committee shall report as a
memo entry, on Schedule A, the sum of the amount(s) paid by each
regular employer of person(s) who provide the services. The committee
shall preserve all records of these services, for the period required
by 11 CFR 102.9(c), to reflect the name of each regular employer, the
amounts paid by each, and the date(s) the services were performed.
(i) Cumulative reports. The reports required to be filed under 11
CFR 104.5 shall be cumulative for the calendar year to which they
relate, but if there has been no change in a category reported in a
previous report during that year, only the amount thereof need be
carried forward.
(j) Earmarked contributions. Earmarked contributions shall be
reported in accordance with 11 CFR 110.6. See also 11 CFR 102.8(c).
(k) Amending reports. A committee shall change or correct a report
previously filed under this section, no later than the next due report,
after it discovers an error, omission or change in the information
submitted in the report. A committee may submit only those pages that
have been changed or corrected, or it may refile the entire, amended
report. The committee shall identify the changes, either in a cover
letter or on the amended pages or report, by specifying the lines on
the Schedule(s) or Form(s) that have been amended.
(l) Credit card payments. (1) Where a committee has paid, by credit
card, any disbursement(s) subject to paragraphs (c) (1) and (2) of this
section, the committee shall report these disbursements in accordance
with this paragraph. For the purposes of this section, a credit card
represents a credit account with a depository institution (see 11 CFR
103.2) or other corporation that is not a depository institution. A
credit account may permit the committee to make a partial payment of
each monthly balance or may require the committee to pay each monthly
balance in full.
(2) The reporting committee shall itemize on Schedule B each
payment to a credit card issuer by specifying the depository
institution or other corporation to which payment was made, the date
and amount of payment. Where the committee has made a partial payment
of a monthly balance, the committee shall report a memo entry for the
outstanding credit balance on Schedule B and report the outstanding
balance as a debt to the extent required by 11 CFR 104.11(b).
(3) Any disbursement reflected on a monthly account statement for a
credit card, that otherwise is required to be itemized by paragraph
(c)(2) of this section, shall be reported section, shall be reported as
a memo entry on Schedule B in addition to the information required
under paragraph (l)(2) of this section.
PART 108--FILING COPIES OF REPORTS AND STATEMENTS WITH STATE
OFFICERS (2 U.S.C. 439)
6. The authority citation for part 108 would continue to read as
follows:
Authority: 2 U.S.C. 434(a)(2), 438(a)(8), 439, 453.
7. Section 108.1 would be amended by redesignating the text as
paragraph (a), revising the first sentence of newly designated
paragraph (a), and adding new paragraph (b) to read as follows:
Sec. 108.1 Filing requirements (2 U.S.C. 439(a)(1)).
(a) Except as provided in paragraph (b)(1) of this section, a copy
of each report and statement required to be filed by any person under
the Act shall be filed either with the Secretary of State of the
appropriate State or with the State officer who is charged by State law
with maintaining state election campaign reports. * * *
(b)(1) The filing requirements and duties of State officers under
11 CFR part 108 shall not apply to a State if the Commission has
determined that the State maintains a system that can electronically
receive and duplicate reports and statements filed with the Commission.
(2) The provisions of paragraph (b)(1) of this section shall not
apply to reports filed by candidates, and the authorized
[[Page 50721]]
committees of candidates, for nomination for election, or election, to
the office of Senator. See 11 CFR 108.3(a)(1).
8. Section 108.2 would be amended by revising the first sentence to
read as follows:
Sec. 108.2 Filing copies of reports and statements in connection with
the campaign of any candidate seeking nomination for election to the
Office of President or Vice-President (2 U.S.C. 439(a)(2)).
Except as provided in 11 CFR 108.1(b)(1), a copy of each report and
statement required to be filed under the Act (including 11 CFR part
104) by a Presidential or Vice Presidential candidate's principal
campaign committee, or under 11 CFR 104.4 or part 109 by any other
person making independent expenditures, in connection with a candidate
seeking nomination for election to the office of President or Vice-
President, shall be filed with the State officer of each State in which
an expenditure is made in connection with the campaign of a candidate
seeking nomination for election to the office of President or Vice-
President. * * *
9. Section 108.3 would be revised to read as follows:
Sec. 108.3 Filing copies of reports and statements in connection with
the campaign of any congressional candidate (2 U.S.C. 439(a)(2)).
(a)(1) A copy of each report and statement required to be filed
under 11 CFR part 104 by candidates, and the authorized committees of
candidates, for nomination for election, or election, to the office of
Senator, shall be filed with the appropriate State officer of that
State in which an expenditure is made in connection with the campaign.
(2) Except as provided in 11 CFR 108.1(b)(1), a copy of each report
and statement required to be filed by any unauthorized committee under
11 CFR part 104, or by any other person under 11 CFR part 109, in
connection with a campaign for nomination for election, or election to,
the office of Senator, shall be filed with the appropriate State
officer of that State in which an expenditure is made in connection
with the campaign.
(b) Except as provided in 11 CFR 108.1(b)(1), a copy of each report
and statement required to be filed under 11 CFR part 104 by candidates,
and authorized committees of candidates, for nomination for election,
or election, to the office of Representative in, Delegate or Resident
Commissioner to the Congress, or by unauthorized committees, or by any
other person under 11 CFR part 109, in connection with these campaigns
shall be filed with the appropriate State officer of that State in
which an expenditure is made in connection with the campaign.
(c) Unauthorized committees that file reports pursuant to paragraph
(b) of this section are required to file, and the Secretary of State is
required to retain, only that portion of the report applicable to
candidates seeking election in that State.
10. Section 108.4 would be revised to read as follows:
Sec. 108.4 Filing copies of reports by committees other than principal
campaign committees (2 U.S.C. 439(a)(2)).
Except as provided in 11 CFR 108.1(b)(1), any unauthorized
committee, which makes contributions in connection with a Presidential
election and which is required to file a report(s) and statement(s)
under the Act, shall file a copy of the report(s) and statement(s) with
the State officer of the State in which both the recipient and
contributing committees have their headquarters.
11. Section 108.6 would be amended by revising the introductory
text to read as follows:
Sec. 108.6 Duties of State officers (2 U.S.C. 439(b)).
Except as provided in 11 CFR 108.1(b)(1), the Secretary of State,
or the equivalent State officer, shall carry out the duties set forth
in 11 CFR 108.6(a) through (d):
* * * * *
12. Section 108.8 would be revised to read as follows:
Sec. 108.8 Exemption for the District of Columbia.
Any copy of a report required to be filed with the equivalent
officer in the District of Columbia under 11 CFR part 108 shall be
deemed to be filed if the original has been filed with the Secretary or
the Commission, as appropriate.
Dated: September 22, 1997.
John Warren McGarry,
Chairman, Federal Election Commission.
[FR Doc. 97-25477 Filed 9-25-97; 8:45 am]
BILLING CODE 6715-01-P
