[Federal Register: November 29, 2002 (Volume 67, Number 230)]
[Rules and Regulations]
[Page 71075-71078]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29no02-3]
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FEDERAL ELECTION COMMISSION
11 CFR Parts 104, 106, and 300
[NOTICE 2002-24]
FEC Policy Statement: Interim Reporting Procedures
AGENCY: Federal Election Commission.
ACTION: Statement of policy.
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SUMMARY: During the transition period following the effective date of
the Bipartisan Campaign Reform Act of 2002 (``BCRA''), the Commission
intends to exercise its discretion by not pursuing the political
committees and other persons and entities addressed below for possible
violations of the reporting statutes and regulations covered by the
instructions set out in this policy statement if they fully adhere to
those instructions and timely file the described reports. The
limitations on the scope and duration of the policy are discussed in
detail below.
FOR FURTHER INFORMATION CONTACT: Mr. John C. Vergelli, Acting Assistant
General Counsel, Mr. Jonathan M. Levin, Senior Attorney, Mr. Gregory
Scott, Assistant Staff Director for Information, and Ms. Debbie
Chacona, Reports Analysis Division Chief of Party/Non-Party Branch, 999
E Street, NW., Washington, DC 20463, (202) 694-1650 or (800) 424-9530.
SUPPLEMENTARY INFORMATION: Congress established a 90-day period during
which the Commission was required to promulgate regulations
implementing Title I of BCRA regarding certain national, state, and
local party committee activities, including reporting of Federal
election activity and certain allocable expenses. This period ended on
June 25, 2002. Congress also required the Commission to complete the
remaining BCRA rulemakings, including those regarding other reporting
requirements, in 270 days, which is December 22, 2002. The Commission
adopted final rules implementing Title I on June 25, 2002. Prohibited
and Excessive Contributions: Non-Federal Funds or Soft Money; Final
Rule, 67 FR 49,064 (July 29, 2002) (``Soft Money Final Rules''). The
Commission has also completed four other rulemakings to implement BCRA:
(1) Final Rules on Electioneering Communications, 67 FR 65190 (October
23, 2002); (2) Interim Final Rules Regarding FCC Database on
Electioneering Communications, 67 FR 65212 (October 23, 2002); (3)
Final Rules on Reorganization of Regulations on Contributions and
Expenditures, 67 FR 50582 (August 5, 2002); and (4) Final Rules on
Contribution Limitations and Prohibitions, 67 FR 69928 (November 19,
2002). The Commission notes that other BCRA-related reporting rules
(e.g., electioneering communications, independent expenditures) are not
yet finalized, but are expected to be before December 22, 2002,
including the Consolidated Reporting Rulemaking, which the Commission
is scheduled to complete on December 12, 2002. Issuance of new and
revised reporting forms, software and instructions is dependent upon
the finalization of all the reporting rules. However, BCRA's reporting
requirements became effective on November 6, 2002. The Commission is in
the process of updating its reporting forms, software, and instructions
to incorporate all the new regulations, and will need a period of time
after December 22, 2002, to complete this process. In the interim,
filers will continue to use existing disclosure forms and software for
their December 5th Post General Election Report, January 31st Year End
Report and, for monthly filers only, the February Monthly Report, which
covers January 2003.
BCRA introduced new reporting responsibilities for political party
committees and other reporting entities and significantly changed
certain existing requirements. Among the significant changes introduced
by BCRA are the reporting by State, district, and local party
committees of Federal election activities (``FEA''), including the
allocation of some of those activities between Federal funds and
``Levin'' funds, and revisions in those committees' allocations of
payments between Federal and non-Federal funds. See 11 CFR 300.2(i),
300.36, 106.7, and 104.17. In addition, BCRA introduced provisions for
Federal candidates and their committees with respect to candidate
funding of his or her own campaign in the form of the ``millionaires
provision'' and provisions for reporting by individuals and entities
making electioneering communications. See 2 U.S.C. 434(a)(6)(B),
434(f), and 441a-1(b).
As new forms are now being developed to meet the new requirements,
the Commission concludes that a period of transition and adjustment
with respect to reporting is needed, including allowance for the
continued use of the ballot composition formula in the Post-General and
Year End Reports. To assist filers during this transition period, the
Commission has developed the interim disclosure
[[Page 71076]]
procedures set forth below.\1\ These procedures address BCRA-related
transactions not contemplated by the existing reporting forms and
filing software. Questions concerning these procedures may be directed
to the FEC's Information Division, Reports Analysis Division or
Electronic Filing Office, as appropriate.
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\1\ These procedures also apply to filers involved in special
elections held during this period, including the November 30 and
January 4 special elections in Hawaii. Those filers should pay
special attention to the instructions for disclosing ``Federal
Election Activity'' (defined in 11 CFR 100.24) and ``Electioneering
Communications'' (defined in 11 CFR 100.29), since both are
triggered by proximity to an election. See 11 CFR 300.33, 300.36,
and proposed 104.20.
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Hence, the Commission intends to exercise its discretion by not
pursuing the committees and other persons and entities addressed below
for possible violations of the reporting statutes and regulations
covered by the instructions set out in this policy statement if the
filers fully adhere to those instructions and timely file the reports.
Interim Reporting Procedures
Interim Disclosure Procedures for State, District and Local Party
Committees
1. Reporting Allocable Administrative and Generic Voter Drive Expenses
(that are not Federal Election Activity (FEA)) for November and
December 2002
For the December 5th Post General Election report and the January
31st Year End report only, state, district and local party committees
may continue to allocate administrative and generic voter drive
expenses according to the ballot composition ratio for the 2001-2002
election cycle. Committees should report this activity just as they
always have: payments should be disclosed on Schedule H4, and transfers
from the nonfederal account should appear on Schedule H3. Committees
need not submit a new Schedule H1.
2. Reporting Allocable Exempt Activities (that are not FEA) for
November and December 2002
For the December 5th Post General Election report and the January
31st Year End report only, state, district and local party committees
may continue to allocate payments for exempt activities based on the
time or space devoted to federal candidates, as compared to the time or
space of the entire communication. Committees should report this
activity just as they always have: payments should be disclosed on
Schedule H4, and transfers from the nonfederal account should appear on
Schedule H3.
3. Reporting Receipts of ``Levin Funds''
[sbull] Paper Filers:
--Using a separate Schedule A, itemize each receipt (regardless of
amount) as a memo entry. Do not include these receipts in totals or on
the Detailed Summary Page.
--IMPORTANT: Label the Schedule A ``Levin funds.''
--Disclose total ``Levin fund'' receipts as a lump sum in a cover memo
attached to the report.
[sbull] E-Filers:
--On a Schedule A, itemize each receipt (regardless of amount) as a
memo entry. These receipts will not be included in totals or on the
Detailed Summary Page.
--IMPORTANT: Use the text entry description field to label the receipt
as ``Levin funds''
--Disclose total ``Levin fund'' receipts as a lump sum using a text
record.
Note: During the transition period, the Commission will allow
committees to amend reports to disclose as Levin funds receipts that
were not initially disclosed as such. The Commission plans to
address this issue more broadly when it finalizes the reporting and
filing procedures for BCRA in 2003.
4. Reporting Disbursements for Non-Allocable (100% federal) ``Federal
Election Activities'' (i.e., Public Communications and Certain Salary
Payments)
[sbull] Paper Filers:
--Use a separate Schedule B labeled ``FEA--100% Federal'' to disclose
each disbursement, regardless of amount.
--Adjust the totals on the completed Detailed Summary Page by adding
the total ``FEA--100% Federal'' to line 31 ``Total Federal
Disbursements.''
[sbull] E-Filers:
--Using Schedule B as a model, submit a Form 99 (miscellaneous text
submission) labeled ``FEA--100% Federal'' disclosing for each
disbursement, regardless of amount:
[sbull] The name of the committee;
[sbull] The name, mailing address, city, state and zip code for
each payee;
[sbull] The date and amount; and
[sbull] The purpose of the disbursement.
--To account for these disbursements on your regular report (e.g., 2002
Year End Report), adjust the cash on hand figure on line 8 of the
Summary Page.
--Examples of these transactions in FECFile are available on the
Commission's BCRA web page at http://www.fec.gov/pages/bcra/bcra_update.htm
.
5. Reporting the Allocation Formula for Paying Allocable ``Federal
Election Activities,'' if any, Conducted in 2002
Use the table below to determine the appropriate formula for
allocating ``Federal Election Activities,'' if any, conducted between
November 6, 2002, and December 31, 2002.
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2002 Races on general election ballot Federal percentage
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A Senate candidate was on the ballot in 21% Federal
my state in the 2002 General election.
A Senate candidate was not on the ballot 15% Federal
in my state in the 2002 General election.
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[sbull] Paper Filers
--Attach a cover letter, labeled ``H1-FEA,'' to disclose the applicable
federal percentage for allocable ``federal election activity.''
[sbull] E-Filers
--Add a text record, labeled ``H1-FEA,'' to disclose the applicable
federal percentage for allocable ``federal election activity.''
6. Reporting the Allocation Formula Used for Paying Allocable ``Federal
Election Activities'' and for Administrative Expenses and the Cost of
Generic Voter Drives, as of January 1, 2003
Use the table below to determine the appropriate allocation formula
to use on or after January 1, 2003.
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2004 Races on general election ballot Federal percentage
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Presidential and Senate candidates will 36% Federal
both be on the ballot in my state in the
next regular federal general election.
Presidential candidate, but not a Senate 28% Federal
candidate, will be on the ballot in my
state in the next regular federal
general election.
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On the first report disclosing 2003 activity (e.g., February 20th
Monthly Report):
[sbull] Paper Filers
--Attach a cover letter, labeled ``H1-FEA,'' to disclose the applicable
federal percentage for allocable ``federal election activity.''
--Do not use the current version of Schedule H-1.
[sbull] E-Filers
--Add a text record, labeled ``H1-FEA,'' to disclose the applicable
federal percentage for allocable ``federal election activity.''
[[Page 71077]]
7. Reporting Disbursements for ``Federal Election Activities''
Allocated Between Federal Funds and ``Levin Funds''
[sbull] Paper Filers
--Using Schedule H4 as a model, submit a cover letter labeled ``H6-
Shared FEA,'' disclosing:
[sbull] The name of the committee;
[sbull] The name, mailing address, city, state and zip code for
each payee;
[sbull] The date of each transaction;
[sbull] The category of federal election activity (e.g., voter
registration);
[sbull] The year-to-date total for the activity;
[sbull] The purpose of disbursement;
[sbull] The federal share of each expense;
[sbull] The ``Levin fund'' share of each expense; and
[sbull] The combined federal/Levin total for each entry.
--As on Schedule H4, multiple entries may appear on each page, and
should be subtotaled by page and totaled on the last page.
--Adjust the totals on the completed Detailed Summary Page by:
[sbull] Adding the combined federal and Levin fund total from the
last page to the total for line 30 ``Total Disbursements;'' and
[sbull] Adding the total federal share from the last page to the
total for line 31 ``Total Federal Disbursements.''
[sbull] E-Filers
--Using Schedule H4 as a model, submit a Form 99 (miscellaneous text
submission) labeled ``H6-Shared FEA,'' disclosing:
[sbull] The name of the committee;
[sbull] The report to which the activity relates (e.g., 2002 Year
End Report);
[sbull] The name, mailing address, city, state and zip code for
each payee;
[sbull] The date of each transaction;
[sbull] The category of federal election activity (e.g., voter
registration);
[sbull] The year-to-date total for the activity;
[sbull] The purpose of disbursement;
[sbull] The federal share of each expense;
[sbull] The ``Levin fund'' share of each expense; and
[sbull] The combined federal/Levin total for each entry.
--As on Schedule H4, multiple entries may appear on each page of the
H6, and should be subtotaled by page and totaled on the last page.
--To account for these disbursements on your regular report (e.g., 2002
Year End Report), adjust the cash on hand figure on line 8 of the
Summary Page.
--Examples of these transactions in FECFile are available on the
Commission's BCRA Web page at http://www.fec.gov/pages/bcra/bcra_update.htm
.
8. Reporting Transfers of ``Levin Funds'' Into the Federal Account for
Shared ``Federal Election Activity''
[sbull] Paper Filers:
--Using Schedule H3 as a model, submit a cover letter labeled ``H5-
Transfers of Levin Funds for Shared FEA,'' disclosing:
[sbull] The name of the committee;
[sbull] The name of the account (i.e., ``Levin'');
[sbull] The date of the transfer; and
[sbull] The categorical breakdown of the transfer received on that
date (e.g., total voter registration, total GOTV, etc.).
--As on Schedule H3, transfers must be segregated by date on the H5. It
is permissible, however, to include transfers occurring on multiple
dates on each page, as long as they are segregated by date.
--Aggregate transfers by category should appear at the bottom of the
last page of H5.
--Adjust the totals on the completed Detailed Summary Page by adding
the combined Levin fund transfers to the total for line 19 ``Total
Receipts.''
--Do not adjust the total for line 20 ``Total Federal Receipts.''
[sbull] E-Filers
--Using Schedule H3 as a model, submit a Form 99 (miscellaneous text
submission) labeled ``H5-Transfers of Levin Funds for Shared FEA,''
disclosing:
[sbull] The name of the committee;
[sbull] The name of the account (i.e., ``Levin'');
[sbull] The report to which the activity relates (e.g., 2002 Year
End Report);
[sbull] The date of the transfer; and
[sbull] The categorical breakdown of the transfer received on that
date (e.g., total voter registration, total GOTV, etc.).
--As on Schedule H3, transfers must be grouped by date on the H5.
However, unlike H3, it is permissible to include transfers occurring on
multiple dates on a single page, so long as the transfers remain
grouped by date.
--Total Levin fund transfers by category should appear at the bottom of
the last page of H5.
--To account for these receipts on your regular report (e.g., 2002 Year
End Report), adjust the cash on hand figure on line 8 of the Summary
Page.
--Examples of these transactions in FECFile are available on the
Commission's BCRA web page at http://www.fec.gov/pages/bcra/bcra_update.htm
.
Interim Disclosure Procedures for Federal Candidates and Campaign
Committees
1. Additional Registration Information Pursuant to the ``Millionaires
Provision''
All candidates seeking election to federal office on/after January
1, 2003, must provide an e-mail address, a fax number and a declaration
of intent to expend personal funds.
[sbull] Paper Filers:
--Attach a cover memo to FEC Form 2, Statement of Candidacy, disclosing
an e-mail address, a fax number and a declaration of intent to expend
personal funds.
[sbull] The declaration should read: ``With respect to this
election, I intend to expend personal funds totaling [fill in
amount].''
[sbull] E-Filers:
--Include with Form 2, Statement of Candidacy, a text record disclosing
an e-mail address, a fax number and a declaration of intent to expend
personal funds.
[sbull] The declaration should read: ``With respect to this
election, I intend to expend personal funds totaling [fill in
amount].''
Interim Disclosure Procedures for Other Types of Filers
1. 24-Hour Notice of ``Electioneering Communications''
E-mail or fax a report to the FEC disclosing:
[sbull] Name, address, occupation and name of employer or principal
place of business of the individual or person making the communication;
[sbull] Name, address, occupation and name of employer or principal
place of business of any person sharing or exercising control over the
person making the communication;
[sbull] Name, address, occupation and name of employer or principal
place of business of the custodian of the books and accounts from which
the disbursements for the communication was made;
[sbull] If the person making the communication pays for it
exclusively from a segregated bank account, the name and address of
persons who donate $1,000 or more to that account, including the date
and amount of those donations;
[sbull] If the person making the communication does not pay for it
exclusively from a segregated bank account, the name and address of
persons who donate $1,000 or more to the person making the
communication (regardless of whether those funds are
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used to finance the communication), including the date and amount of
those donations;
[sbull] Disbursements of more than $200, including the name and
address of the payee, date, amount and purpose of the disbursement, the
name of the federal candidate, and the election identified in the
communication;
[sbull] Total donations received and disbursements made in this
report;
[sbull] Aggregate disbursements year-to-date;
[sbull] The disclosure date (i.e., the date when the communication
was first publicly distributed); and
[sbull] The following statement: ``Under penalty of perjury, I
certify that this report is true, correct and complete.'' followed by
the name/signature of the person making that statement and the date.\2\
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\2\ Submission of false, erroneous or incomplete information may
subject the person signing this report to the penalties of 2 U.S.C.
437g.
Dated: November 22, 2002.
David M. Mason,
Chairman, Federal Election Commission.
[FR Doc. 02-30265 Filed 11-27-02; 8:45 am]
BILLING CODE 6715-01-P