[Title 11 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2000 Edition]
[From the U.S. Government Printing Office]



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                    11

                         Revised as of January 1, 2000

Federal Elections





          Containing a Codification of documents of general 
          applicability and future effect
          As of January 1, 2000
          With Ancillaries
          Published by:
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2000



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



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                            Table of Contents



                                                                    Page
  Explanation..................................................      v

  Title 11:

          Chapter I--Federal Election Commission...............      3

  Finding Aids:

    Indexes to Regulations:

          Administrative Regulations, Parts 1-8; 200-201.......    291

          General, Parts 100-116...............................    297

          General Election Financing, Parts 9001-9007 and 9012.    343

          Federal Financing of Presidential Nominating 

          Conventions, Part 9008...............................    355

          Presidential Primary Matching Fund, Parts 9031-9039..    363

      Table of CFR Titles and Chapters.........................    381

      Alphabetical List of Agencies Appearing in the CFR.......    399

      List of CFR Sections Affected............................    409



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                     ----------------------------

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  11 CFR 1.1 refers 
                       to title 11, part 1, 
                       section 1.

                     ----------------------------

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, January 1, 2000), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

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Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I). A list of CFR titles, chapters, 
and parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
info@fedreg.nara.gov.

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ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Weekly Compilation of Presidential Documents and 
the Privacy Act Compilation are available in electronic format at 
www.access.gpo.gov/nara (``GPO Access''). For more information, contact 
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Office. Phone 202-512-1530, or 888-293-6498 (toll-free). E-mail, 
gpoaccess@gpo.gov.

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    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
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site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

January 1, 2000.



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                               THIS TITLE

    Title 11--Federal Elections is composed of one volume. The contents 
of this volume represent all current regulations issued by the Federal 
Election Commission codified under this title of the CFR as of January 
1, 2000.

    Indexes to regulations for ``parts 1-8,'' ``parts 100-116,'' ``parts 
200-201,'' ``parts 9001-9007 and 9012,'' ``part 9008,'' and ``parts 
9031-9039,'' appear in the Finding Aids section of this volume.

    For this volume, Jonn V. Lilyea was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

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                       TITLE 11--FEDERAL ELECTIONS




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                                                                    Part

Chapter I--Federal Election Commission......................           1

Cross References: Other regulations implementing section 401 of the 
  Federal Election Campaign Act of 1971 appear in:

    Office of the Secretary, Department of Transportation: 14 CFR part 
374a

    Federal Communications Commission: 47 CFR part 64 (subpart H), 47 
CFR Secs. 73.1910--73.1944

    Interstate Commerce Commission: 49 CFR part 1325

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                 CHAPTER I--FEDERAL ELECTION COMMISSION




-----------------------------------------------------------------------
Part                                                                Page
1               Privacy Act.................................           5
2               Sunshine regulations; meetings..............           9
4               Public records and the Freedom of 
                    Information Act.........................          13
5               Access to Public Disclosure Division 
                    documents...............................          22
6               Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Federal 
                    Election Commission.....................          24
7               Standards of conduct........................          31
8               National Voter Registration Act (42 U.S.C. 
                    1973gg-1 et seq.).......................          42

                          SUBCHAPTER A--GENERAL

100             Scope and definitions (2 U.S.C. 431)........          46
101             Candidate status and designations (2 U.S.C. 
                    432(e)).................................          67
102             Registration, organization, and 
                    recordkeeping by political committees (2 
                    U.S.C. 433).............................          68
103             Campaign depositories (2 U.S.C. 432(h)).....          81
104             Reports by political committees (2 U.S.C. 
                    434)....................................          82
105             Document filing (2 U.S.C. 432(g))...........         101
106             Allocations of candidate and committee 
                    activities..............................         102
107             Presidential nominating convention, 
                    registration and reports................         114
108             Filing copies of reports and statements with 
                    State officers (2 U.S.C. 439)...........         115
109             Independent expenditures (2 U.S.C. 431(17), 
                    434(c)).................................         116
110             Contribution and expenditure limitations and 
                    prohibitions............................         118
111             Compliance procedure (2 U.S.C. 437g, 
                    437d(a))................................         141
112             Advisory opinions (2 U.S.C. 437f)...........         148
113             Excess campaign funds and funds donated to 
                    support Federal officeholder activities 
                    (2 U.S.C. 439a).........................         150
114             Corporate and labor organization activity...         154
115             Federal contractors.........................         177

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116             Debts owed by candidates and political 
                    committees..............................         179

                SUBCHAPTER B--ADMINISTRATIVE REGULATIONS

200             Petitions for rulemaking....................         188
201             Ex parte communications.....................         189

                       SUBCHAPTERS C-D [RESERVED]

  SUBCHAPTER E--PRESIDENTIAL ELECTION CAMPAIGN FUND: GENERAL ELECTION 
                                FINANCING

9001            Scope.......................................         192
9002            Definitions.................................         192
9003            Eligibility for payments....................         195
9004            Entitlement of eligible candidates to 
                    payments; use of payments...............         205
9005            Certification by Commission.................         214
9006            Reports and recordkeeping...................         215
9007            Examinations and audits; Repayments.........         216
9008            Federal Financing of Presidential nominating 
                    conventions.............................         225
9009-9011       [Reserved]
9012            Unauthorized expenditures and contributions.         240

SUBCHAPTER F--PRESIDENTIAL ELECTION CAMPAIGN FUND: PRESIDENTIAL PRIMARY 
                              MATCHING FUND

9031            Scope.......................................         243
9032            Definitions.................................         243
9033            Eligibility for payments....................         245
9034            Entitlements................................         253
9035            Expenditure limitations.....................         268
9036            Review of matching fund submissions and 
                    certification of payments by Commission.         270
9037            Payments and reporting......................         276
9038            Examination and audits......................         277
9039            Review and investigation authority..........         286

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PART 1--PRIVACY ACT--Table of Contents




Sec.
1.1  Purpose and scope.
1.2  Definitions.
1.3  Procedures for requests pertaining to individual records in a 
          record system.
1.4  Times, places, and requirements for identification of individuals 
          making requests.
1.5  Disclosure of requested information to individuals.
1.6  Special procedure: Medical records. [Reserved]
1.7  Request for correction or amendment to record.
1.8  Agency review of request for correction or amendment of record.
1.9  Appeal of initial adverse agency determination on amendment or 
          correction.
1.10  Disclosure of record to person other than the individual to whom 
          it pertains.
1.11  Fees.
1.12  Penalties.
1.13  General exemptions. [Reserved]
1.14  Specific exemptions.

    Authority: 5 U.S.C. 552a.

    Source: 41 FR 43064, Sept. 29, 1976, unless otherwise noted.



Sec. 1.1  Purpose and scope.

    (a) The purpose of this part is to set forth rules informing the 
public as to what information is maintained by the Federal Election 
Commission about identifiable individuals and to inform those 
individuals how they may gain access to and correct or amend information 
about themselves.
    (b) The regulations in this part carry out the requirements of the 
Privacy Act of 1974 (Pub. L. 93-579) and in particular 5 U.S.C. 552a as 
added by that Act.
    (c) The regulations in this part apply only to records disclosed or 
requested under the Privacy Act of 1974, and not to requests for 
information made pursuant to 5 U.S.C. 552, the Freedom of Information 
Act, or requests for reports and statements filed with the Federal 
Election Commission which are public records and available for 
inspection and copying pursuant to 2 U.S.C. 437g(a)(4) (C) and 
438(a)(4).

[41 FR 43064, Sept. 29, 1976, as amended at 45 FR 21209, Apr. 1, 1980]



Sec. 1.2  Definitions.

    As defined in the Privacy Act of 1974 and for the purposes of this 
part, unless otherwise required by the context, the following terms 
shall have these meanings:
    Individual means a citizen of the United States or an alien lawfully 
admitted for permanent residence.
    Maintain includes maintain, collect, use or disseminate.
    Record means any item, collection, or grouping of information about 
an individual that is maintained by an agency, including but not limited 
to his or her education, financial transactions, medical history, and 
criminal or employment history and that contains his or her name, or the 
identifying number, symbol or other identifying particular assigned to 
the individual, such as finger or voice print or a photograph.
    Systems of Records means a group of any records under the control of 
the Federal Election Commission from which information is retrieved by 
the name of the individual or by some identifying number, symbol, or 
other identifying particular assigned to the individual.
    Routine use means the use of such record for a purpose compatible 
with the purpose for which the information was collected.
    Commission means the Federal Election Commission, its Commissioners 
and employees.
    Commissioners means the six appointees confirmed by the Senate who 
are voting members of the Commission.
    Act means the Federal Election Campaign Act of 1971, as amended and 
chapters 95 and 96 of the Internal Revenue Code of 1954.



Sec. 1.3  Procedures for requests pertaining to individual records in a record system.

    (a) Any individual may request the Commission to inform him or her 
whether a particular record system named by the individual contains a 
record pertaining to him or her. The request may be made in person or in 
writing at the location and to the person specified in the notice 
describing that record system.
    (b) An individual who believes that the Commission maintains records 
pertaining to him or her but who cannot

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determine which record system contains those records, may request 
assistance by mail or in person from the Staff Director, Federal 
Election Commission, 999 E Street, NW., Washington, DC 20463 during the 
hours of 9 a.m. to 5:30 p.m.
    (c) Requests under paragraphs (a) or (b) of this section shall be 
acknowledged by the Commission within 15 days from the date of receipt 
of the request. If the Commission is unable to locate the information 
requested under paragraphs (a) or (b) of this section, it shall so 
notify the individual within 15 days after receipt of the request. Such 
acknowledgement may request additional information to assist the 
Commission in locating the record or it may advise the individual that 
no record or document exists about that individual.

[41 FR 43064, Sept. 29, 1976, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 1.4  Times, places, and requirements for identification of individuals making requests.

    (a) After being informed by the Commission that a record system 
contains a record pertaining to him or her, an individual may request 
the Commission to disclose that record in the manner described in this 
section. Each request for the disclosure of a record or a copy of it 
shall be made at the Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463 and to the system manager identified in the notice 
describing the systems of records, either in writing or in person. 
Requests may be made by specifically authorized agents or by parents or 
guardians of individuals.
    (b) Each individual requesting the disclosure of a record or copy of 
a record shall furnish the following information with his or her 
request:
    (1) The name of the record system containing the record;
    (2) Proof as described in paragraph (c) of this section that he or 
she is the individual to whom the requested record relates;
    (3) Any other information required by the notice describing the 
record system.
    (c) Proof of identity as required by paragraph (b)(2) of this 
section shall be provided as described in paragraphs (c) (1) and (2) of 
this section. Requests made by an agent, parent, or guardian, shall be 
in accordance with the procedures described in Sec. 1.10.
    (1) Requests made in writing shall include a statement, signed by 
the individual and either notarized or witnessed by two persons 
(including witnesses' addresses). If the individual appears before a 
notary, he or she shall submit adequate proof of identification in the 
form of a drivers license, birth certificate, passport or other 
identification acceptable to the notary. If the statement is witnessed, 
it shall include a sentence above the witnesses' signatures that they 
personally know the individual or that the individual has submitted 
proof of his or her identification to their satisfaction. In any case in 
which, because of the extreme sensitivity of the record sought to be 
seen or copied, the Commission determines that the identification is not 
adequate, it may request the individual to submit additional proof of 
identification.
    (2) If the request is made in person, the requestor shall submit 
proof of identification similar to that described in paragraph (c)(1) of 
this section, acceptable to the Commission. The individual may have a 
person of his or her own choosing accompany him or her when the record 
is disclosed.

[41 FR 43064, Sept. 29, 1976, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 1.5  Disclosure of requested information to individuals.

    (a) Upon submission of proof of identification as required by 
Sec. 1.4, the Commission shall allow the individual to see and/or obtain 
a copy of the requested record or shall send a copy of the record to the 
individual by registered mail. If the individual requests to see the 
record, the Commission may make the record available either at the 
location where the record is maintained or at a place more suitable to 
the requestor, if possible. The record shall be made available as soon 
as possible but in no event later than 15 days after proof of 
identification.
    (b) The Commission must furnish each record requested by an 
individual

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under this part in a form intelligible to that individual.
    (c) If the Commission denies access to a record to an individual, he 
or she shall be advised of the reason for the denial and advised of the 
right to judicial review.
    (d) Upon request, an individual will be provided access to the 
accounting of disclosures from his or her record under the same 
procedures as provided above and in Sec. 1.4.



Sec. 1.6  Special procedure: Medical records. [Reserved]



Sec. 1.7  Request for correction or amendment to record.

    (a) Any individual who has reviewed a record pertaining to him or 
her that was furnished under this part, may request the Commission to 
correct or amend all or any part of that record.
    (b) Each individual requesting a correction or amendment shall send 
the request to the Commission through the person who furnished the 
record.
    (c) Each request for a correction or amendment of a record shall 
contain the following information:
    (1) The name of the individual requesting the correction or 
amendment;
    (2) The name of the system of records in which the record sought to 
be amended is maintained;
    (3) The location of the system of records from which the individual 
record was obtained;
    (4) A copy of the record sought to be amended or corrected or a 
sufficiently detailed description of that record;
    (5) A statement of the material in the record that the individual 
desires to correct or amend;
    (6) A statement of the basis for the requested correction or 
amendment including any material that the individual can furnish to 
substantiate the reasons for the correction or amendment sought.



Sec. 1.8  Agency review of request for correction or amendment of record.

    (a) The Commission shall, not later than ten (10) days (excluding 
Saturdays, Sundays and legal holidays) after the receipt of the request 
for a correction or amendment of a record under Sec. 1.7, acknowledge 
receipt of the request and inform the individual whether information is 
required before the correction or amendment can be considered.
    (b) If no additional information is required, within ten (10) days 
from receipt of the request, the Commission shall either make the 
requested correction or amendment or notify the individual of its 
refusal to do so, including in the notification the reasons for the 
refusal, and the appeal procedures provided in Sec. 1.9.
    (c) The Commission shall make each requested correction or amendment 
to a record if that correction or amendment will tend to negate 
inaccurate, irrelevant, untimely, or incomplete matter in the record.
    (d) The Commission shall inform prior recipients of any amendment or 
correction or notation of dispute of such individual's record if an 
accounting of the disclosure was made. The individual may request a list 
of prior recipients if an accounting of the disclosure was made.



Sec. 1.9  Appeal of initial adverse agency determination on amendment or correction.

    (a) Any individual whose request for a correction or amendment has 
been denied in whole or in part, may appeal that decision to the 
Commissioners no later than one hundred eighty (180) days after the 
adverse decision is rendered.
    (b) The appeal shall be in writing and shall contain the following 
information:
    (1) The name of the individual making the appeal;
    (2) Identification of the record sought to be amended;
    (3) The record system in which that record is contained;
    (4) A short statement describing the amendment sought; and
    (5) The name and location of the agency official who initially 
denied the correction or amendment.
    (c) Not later than thirty (30) days (excluding Saturdays, Sundays 
and legal holidays) after the date on which the Commission receives the 
appeal, the Commissioners shall complete their review of the appeal and 
make a final decision thereon. However, for good cause shown, the 
Commissioners

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may extend that thirty (30) day period. If the Commissioners extend the 
period, the individual requesting the review shall be promptly notified 
of the extension and the anticipated date of a decision.
    (d) After review of an appeal, the Commission shall send a written 
notice to the requestor containing the following information:
    (1) The decision and, if the denial is upheld, the reasons for the 
decision;
    (2) The right of the requestor to institute a civil action in a 
Federal District Court for judicial review of the decision; and
    (3) The right of the requestor to file with the Commission a concise 
statement setting forth the reasons for his or her disagreement with the 
Commission denial of the correction or amendment. The Commission shall 
make this statement available to any person to whom the record is later 
disclosed, together with a brief statement, if appropriate, of the 
Commission's reasons for denying the requested correction or amendment. 
The Commission shall also send a copy of the statement to prior 
recipients of the individual's record if an accounting of the 
disclosures was made.



Sec. 1.10  Disclosure of record to person other than the individual to whom it pertains.

    (a) Any individual who desires to have a record covered by this part 
disclosed to or mailed to another person may designate such person and 
authorize such person to act as his or her agent for that specific 
purpose. The authorization shall be in writing, signed by the individual 
and notarized or witnessed as provided in Sec. 1.4(c).
    (b) The parent of any minor individual or the legal guardian of any 
individual who has been declared by a court of competent jurisdiction to 
be incompetent, due to physical or mental incapacity or age, may act on 
behalf of that individual in any matter covered by this part. A parent 
or guardian who desires to act on behalf of such an individual shall 
present suitable evidence of parentage or guardianship, by birth 
certificate, certified copy of a court order, or similar documents, and 
proof of the individual's identity in a form that complies with 
Sec. 1.4(c) of this part.
    (c) An individual to whom a record is to be disclosed in person, 
pursuant to this part may have a person of his or her own choosing 
accompany him or her when the record is disclosed.



Sec. 1.11  Fees.

    (a) The Commission shall not charge an individual for the costs of 
making a search for a record or the costs of reviewing the record. When 
the Commission makes a copy of a record as a necessary part of the 
process of disclosing the record to an individual, the Commission shall 
not charge the individual for the cost of making that copy.
    (b) If an individual requests the Commission to furnish a copy of 
the record, the Commission shall charge the individual for the costs of 
making the copy. The fee that the Commission has established for making 
a copy is ten cents ($.10) per page.



Sec. 1.12  Penalties.

    Any person who makes a false statement in connection with any 
request for a record, or an amendment or correction thereto, under this 
part, is subject to the penalties prescribed in 18 U.S.C. 494 and 495.



Sec. 1.13  General exemptions. [Reserved]



Sec. 1.14  Specific exemptions.

    (a) No individual, under the provisions of these regulations, shall 
be entitled to access to materials compiled in its systems of records 
identified as FEC audits and investigations (FEC 2) or FEC compliance 
actions (FEC 3). These exempted systems relate to the Commission's power 
to exercise exclusive civil jurisdiction over the enforcement of the Act 
under 2 U.S.C. 437d (a)(6) and (e); and to defend itself in actions 
filed against it under 2 U.S.C. 437d(a)(6). Further the Commission has a 
duty to investigate violations of the Act under 2 U.S.C. 437g(a)(2); to 
conduct audits and investigations pursuant to 2 U.S.C. 438(b); 26 U.S.C. 
9007 and 9038; and to refer apparent violations of the Act to the 
Attorney General or other law enforcement authorities under 2 U.S.C. 
437g(a)(5) and 437d(9). Information contained in FEC systems 2

[[Page 9]]

and 3 contain the working papers of the Commission staff and form the 
basis for either civil and/or criminal proceedings pursuant to the 
exercise of the powers and duties of the Commission. These materials 
must be protected until such time as they are subject to public access 
under the provision of 2 U.S.C. 437g(a)(4)(B) or 5 U.S.C. 552, or other 
relevant statutes.
    (b)(1) Pursuant to 5 U.S.C. 552a(j)(2), records contained in FEC 12, 
Office of Inspector General Investigative Files, are exempt from the 
provisions of 5 U.S.C. 552a, except subsections (b), (c) (1) and (2), 
(e)(4) (A) through (F), (e) (6), (7), (9), (10), and (11) and (f) , and 
the corresponding provisions of 11 CFR part 1, to the extent this system 
of records relates in any way to the enforcement of criminal laws.
    (2) Pursuant to 5 U.S.C. 552a(k)(2), FEC 12, Office of Inspector 
General Investigative Files, is exempt from 552a (c)(3), (d), (e)(1), 
(e)(4)(G), (H), and (I), and (f), and the corresponding provisions of 11 
CFR part 1, to the extent the system of records consists of 
investigatory material compiled for law enforcement purposes, except for 
material that falls within the exemption included in paragraph (b)(1) of 
this section.
    (c) The provisions of paragraph (a) of this section shall not apply 
to the extent that application of the subsection would deny any 
individual any right, privilege or benefit to which he or she would 
otherwise be entitled to receive.

[41 FR 43064, Sept. 29, 1976, as amended at 45 FR 21209, Apr. 1, 1980; 
60 FR 4073, Jan. 20, 1995]



PART 2--SUNSHINE REGULATIONS; MEETINGS--Table of Contents




Sec.
2.1  Scope.
2.2  Definitions.
2.3  General rules.
2.4  Exempted meetings.
2.5  Procedures for closing meetings.
2.6  Transcripts and recordings.
2.7  Announcement of meetings and schedule changes.
2.8  Annual report.

    Authority: Sec. 3(a), Pub. L. 94-409, 5 U.S.C. 552b.

    Source: 50 FR 39972, Oct. 1, 1985, unless otherwise noted.



Sec. 2.1  Scope.

    These regulations are promulgated pursuant to the directive of 5 
U.S.C. 552b(g) which was added by section 3(a) of Public Law 94-409, the 
Government in the Sunshine Act, and specifically implement section 3 of 
that Act.



Sec. 2.2  Definitions.

    (a) Commission. Commission means the Federal Election Commission, 
999 E Street, NW., Washington, DC 20463.
    (b) Commissioner or Member. Commissioner or Member means an 
individual appointed to the Federal Election Commission pursuant to 2 
U.S.C. 437c and section 101(e) of Public Law 94-283 and shall also 
include ex-officio non-voting Commissioners or Members, the Secretary of 
the Senate and the Clerk of the House, but does not include a proxy or 
other designated representative of a Commissioner.
    (c) Person. Person means an individual, including employees of the 
Commission, partnership, corporation, association, or public or private 
organization, other than an agency of the United States Government.
    (d) Meeting. (1) Meeting means the deliberation of at least four 
voting members of the Commission in collegia where such deliberations 
determine or result in the joint conduct or disposition of official 
Commission business. For the purpose of this section, joint conduct does 
not include, for example, situations where the requisite number of 
members is physically present in one place but not conducting agency 
business as a body (e.g., at a meeting at which one member is giving a 
speech while a number of other members are present in the audience). A 
deliberation conducted through telephone or similar communications 
equipment by means of which all persons participating can hear each 
other will be considered a meeting under this section.
    (2) The term meeting does not include the process of notation voting 
by circulated memorandum for the purpose of expediting consideration of 
routine matters. It also does not include deliberations to schedule a 
meeting, to take action to open or close a meeting, or to

[[Page 10]]

release or withhold information, or to change the subject matter of a 
meeting under 11 CFR 2.5, 2.6 and 2.7.

[50 FR 39972, Oct. 1, 1985, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 2.3  General rules.

    (a) Commissioners shall not jointly conduct, determine or dispose of 
Commission business other than in accordance with this part.
    (b) Except as provided in 11 CFR 2.4, every portion of every 
Commission meeting shall be open to public observation.
    (c) No additional right to participate in Commission meetings is 
granted to any person by this part. A meeting is not part of the formal 
or informal record of decision of the matters discussed therein except 
as otherwise required by law. Statements of views or expressions of 
opinions made by Commissioners or FEC employees at meetings are not 
intended to represent final determinations or beliefs.
    (d) Members of the public attending open Commission meetings may use 
small electronic sound recorders to record the meeting, but the use of 
other electronic recording equipment and cameras requires advance notice 
to and coordination with the Commission's Press Officer.



Sec. 2.4  Exempted meetings.

    (a) Meetings required by statute to be closed. Meetings concerning 
matters specifically exempted from disclosure by statutes which require 
public withholding in such a manner as to leave no discretion for the 
Commission on the issue, or which establish particular types of matters 
to be withheld, shall be closed to public observation in accordance with 
the procedures of 11 CFR 2.5.
    (1) As required by 2 U.S.C. 437g(a)(12), all Commission meetings, or 
portions of meetings, pertaining to any notification or investigation 
that a violation of the Act has occurred, shall be closed to the public.
    (2) For the purpose of this section, any notification or 
investigation that a violation of the Act has occurred includes, but is 
not limited to, determinations pursuant to 2 U.S.C. 437g, the issuance 
of subpoenas, discussion of referrals to the Department of Justice, or 
consideration of any other matter related to the Commission's 
enforcement activity, as set forth in 11 CFR part 111.
    (b) Meetings closed by Commission determination. Except as provided 
in 11 CFR 2.4(c), the requirement of open meetings will not apply where 
the Commission finds, in accordance with 11 CFR 2.5, that an open 
meeting or the release of information is likely to result in the 
disclosure of:
    (1) Matters that relate solely to the Commission's internal 
personnel decisions, or internal rules and practices.
    (i) This provision includes, but is not limited to, matters relating 
to Commission policies on working conditions, or materials prepared 
predominantly for internal use, the disclosure of which would risk 
circumvention of Commission regulations; but
    (ii) This provision does not include discussions or materials 
regarding employees' dealings with the public, such as personnel manuals 
or Commission directives setting forth job functions or procedures;
    (2) Financial or commercial information obtained from any person 
which is privileged or confidential;
    (3) Matters which involve the consideration of a proceeding of a 
formal nature by the Commission against a specific person or the formal 
censure of any person;
    (4) Information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (5) Investigatory records compiled for law enforcement purposes, or 
information which if written would be contained in such records, but 
only to the extent that the production of such records or information 
would:
    (i) Interfere with enforcement proceedings,
    (ii) Deprive a person of a right to a fair trial or an impartial 
adjudication,
    (iii) Constitute an unwarranted invasion of personal privacy,
    (iv) Disclose the identity of a confidential source,
    (v) Disclose investigative techniques and procedures, or
    (vi) Endanger the life or physical safety of law enforcement 
personnel;

[[Page 11]]

    (6) Information the premature disclosure of which would be likely to 
have a considerable adverse effect on the implementation of a proposed 
Commission action, as long as the Commission has not already disclosed 
the content or nature of its proposed action, or is not required by law 
to disclose it prior to final action; or
    (7) Matters that specifically concern the Commission's participation 
in a civil action or proceeding, or an arbitration, or involving a 
determination on the record after opportunity for a hearing.
    (c) Nothwithstanding the applicability of any exemptions set forth 
in 11 CFR 2.4(b), the Commission may determine that the public interest 
requires a meeting to be open.



Sec. 2.5  Procedures for closing meetings.

    (a) General. No meeting or portion of a meeting may be closed to the 
public observation under this section unless a majority of the 
Commissioners (not including ex officio non-voting Commissioners) votes 
to take such action. The closing of one portion of a meeting shall not 
justify closing any other portion of a meeting.
    (b) Certification. Each time the Commission votes to close a 
meeting, the General Counsel shall publicly certify that, in his or her 
opinion, each item on the agenda may properly be closed to public 
observation. The certification shall state each relevant exemption 
provision. The original copy of the certification shall be attached to, 
and preserved with, the statement required by 11 CFR 2.5(d).
    (c) Voting procedures. (1) No meeting need be held to consider 
closing a meeting. The Commission may vote to close a meeting or any 
portion thereof by using its notation vote procedures.
    (i) A separate vote shall be taken with respect to each item on an 
agenda proposed to be closed in whole or in part pursuant to 11 CFR 2.4, 
or with respect to any information proposed to be withheld under 11 CFR 
2.4.
    (ii) A single vote may be taken with respect to a particular matter 
to be discussed in a series of closed meetings, or with respect to any 
information concerning such series of meetings, so long as each meeting 
in the series is scheduled to be held no more than 30 days after the 
initial meeting.
    (iii) This section shall not affect the Commission's practice of 
setting dates for closed meetings more than 30 days in advance of such 
meetings.
    (2) The Commission Secretary shall record the vote of each 
Commissioner participating in the vote. No proxies, written or 
otherwise, shall be counted.
    (3)(i) A Commissioner may object to a recommendation to close the 
discussion of a particular matter or may assert a claim of exemption for 
a matter scheduled to be discussed in an open meeting. Such objection or 
assertion will be discussed by the Commission at the next scheduled 
closed meeting, to determine whether the matter in question should be 
discussed in a closed meeting.
    (ii) An objection for the record only will not cause the objection 
to be placed on any agenda.
    (d) Public statement of vote. (1) If the Commission votes to close a 
meeting, or any portion thereof, under this section, it shall make 
publicly available within 24 hours a written statement of the vote. The 
written statement shall contain:
    (i) A citation to the provision(s) of 11 CFR 2.4 under which the 
meeting was closed to public observation and an explanation of why the 
specific discussion comes within the cited exemption(s);
    (ii) The vote of each Commissioner participating in the vote;
    (iii) A list of the names of all persons expected to attend the 
closed meeting and their affiliation. For purposes of this section, 
affiliation means title or position, and name of employer, and in the 
case of a representative, the name of the person represented. In the 
case of Commission employees, the statement will reflect, through the 
use of titles rather than individual names, that the Commissioners, 
specified division heads and their staff will attend; and
    (iv) The signature of the Commission Secretary.
    (2) The original copy of the statement shall be maintained by the 
Commission Secretary. A copy shall be posted on a public bulletin board 
located in the Commission's Public Records Office.

[[Page 12]]

    (e) Public request to close a meeting. A person whose interests may 
be directly affected by a portion of a meeting may request that the 
Commission close that portion to the public for any of the reasons 
referred to in 11 CFR 2.4. The following procedures shall apply to such 
requests:
    (1) The request must be made in writing and shall be directed to the 
Chairman of the Commission.
    (2) The request shall identify the provisions of 11 CFR 2.4 under 
which the requestor seeks to close all or a portion of the meeting.
    (3) A recorded vote to close the meeting or a portion thereof shall 
be taken.
    (4) Requests made under this section shall become part of the 
official record of the underlying matter and shall be disclosed in 
accordance with 11 CFR 2.6 on completion of the matter.
    (5) If the Commission decides to approve a request to close, the 
Commission will then follow the procedures for closing a meeting set 
forth in 11 CFR 2.5 (a) through (d).



Sec. 2.6  Transcripts and recordings.

    (a) The Commission Secretary shall maintain a complete transcript or 
electronic recording adequate to record fully the proceedings of each 
meeting, or portion of a meeting, closed to public observation. An 
electronic recording of a meeting shall be coded, or other records shall 
be kept in a manner adequate to identify each speaker.
    (b)(1) In the case of any meeting closed pursuant to 11 CFR 2.4(b), 
as the last item of business, the Commission will determine which, if 
any, portions of the electronic recording or transcript and which if 
any, items of information withheld under 11 CFR 2.5 contain information 
which should be withheld pursuant to 11 CFR 2.4.
    (2) Portions of transcripts or recordings determined to be outside 
the scope of any exemptions under 11 CFR 2.6(b)(1) shall be promptly 
made available to the public through the Commission's Public Records 
Office at a cost sufficient to cover the Commission's actual cost of 
duplication or transcription. Requests for such copies shall be made and 
processed in accordance with the provisions of 11 CFR part 5.
    (3) Portions of transcripts or electronic recordings not made 
available immediately pursuant to 11 CFR 2.6(b)(1), and portions of 
transcripts or recordings withheld pursuant to 11 CFR 2.4(a), will be 
made available on request when the relevant exemptions no longer apply. 
Such materials shall be requested and processed under the provisions of 
11 CFR 2.6(b)(2).
    (c) A complete verbatim copy of the transcript or a complete 
electronic recording of each meeting, or portion of a meeting, closed to 
the public, shall be maintained by the Commission Secretary in 
confidential files of the Commission, for a minimum of two years 
subsequent to such meeting, or a minimum of one year after the 
conclusion of any agency proceeding with respect to which the meeting, 
or portion of the meeting was held, whichever occurs later.



Sec. 2.7  Announcement of meetings and schedule changes.

    (a)(1) In the case of each meeting, the Commission shall publicly 
announce and shall submit such announcement for publication in the 
Federal Register at least seven days prior to the day on which the 
meeting is to be called to order. The Commission Secretary shall also 
forward a copy of such announcement for posting in the Commission's 
Public Records Office.
    (2) Announcements made under this section shall contain the 
following information:
    (i) The date of the meeting;
    (ii) The place of the meeting;
    (iii) The subject matter of the meeting;
    (iv) Whether the meeting is to be open or closed to the public; and
    (v) The name and telephone number of the official designated by the 
agency to respond to requests for information about the meeting.
    (b) The public announcement and submission for publication shall be 
made when required by 11 CFR 2.7(a) in the case of every Commission 
meeting unless a majority of the Commissioners decide by recorded vote 
that Commission business requires that the meeting be called at an 
earlier date, in which case the Commission shall make at the

[[Page 13]]

earliest practicable time, the announcement required by this section and 
a concurrent submission for publication of that announcement in the 
Federal Register.
    (c) The time or place of a meeting may be changed following the 
public announcement required by 11 CFR 2.7 (a) or (b) only if the 
Commission announces the change at the earliest practicable time.
    (d) The subject matter of a meeting, or the determination of the 
Commission to open or close a meeting, or portions of a meeting, to the 
public may be changed following the public announcement required by 11 
CFR 2.7 (a) or (b) only if:
    (1) A majority of the entire membership of the Commission determines 
by recorded vote that Commission business so requires and that no 
earlier announcement of the change was possible; and
    (2) The Commission publicly announces the change and the vote of 
each member upon the change at the earliest practicable time. 
Immediately following this announcement, the Commission shall submit for 
publication in the Federal Register a notice containing the information 
required by 11 CFR 2.7(a)(2), including a description of any change from 
the earlier published notice.



Sec. 2.8  Annual report.

    The Commission shall report annually to Congress regarding its 
compliance with the requirements of the Government in the Sunshine Act 
and of this part, including:
    (a) A tabulation of the total number of Commission meetings open to 
the public;
    (b) The total number of such meetings closed to the public;
    (c) The reasons for closing such meetings; and
    (d) A description of any litigation brought against the Commission 
under the Sunshine Act, including any costs assessed against the 
Commission in such litigation (whether or not paid by the Commission).



PART 4--PUBLIC RECORDS AND THE FREEDOM OF INFORMATION ACT--Table of Contents




Sec.
4.1  Definitions.
4.2  Policy on disclosure of records.
4.3  Scope.
4.4  Availability of records.
4.5  Categories of exemptions.
4.6  Discretionary release of exempt records.
4.7  Requests for records.
4.8  Appeal of denial.
4.9  Fees.

    Authority: 5 U.S.C. 552, as amended.

    Source: 44 FR 33368, June 8, 1979, unless otherwise noted.



Sec. 4.1  Definitions.

    As used in this part:
    (a) Commission means the Federal Election Commission, established by 
the Federal Election Campaign Act of 1971, as amended.
    (b) Commissioner means the Secretary of the Senate, the Clerk of the 
House, or their designees ex officio, or an individual appointed to the 
Federal Election Commission pursuant to 2 U.S.C. 437c(a).
    (c) Request means to seek the release of records under 5 U.S.C. 552.
    (d) Requestor is any person who submits a request to the Commission.
    (e) Act means the Federal Election Campaign Act of 1971, as amended 
by the Federal Election Campaign Act Amendments of 1974, 1976, and 1979, 
and unless specifically excluded, includes chapters 95 and 96 of the 
Internal Revenue Code of 1954 relating to public financing of Federal 
elections.
    (f) Public Disclosure Division of the Commission is that division 
which is responsible for, among other things, the processing of requests 
for public access to records which are submitted to the Commission 
pursuant to 2 U.S.C. 437f(d), 437g(a)(4)(B)(ii), and 438(a).
    (g) Direct costs means those expenditures which the Commission 
actually incurs in searching for and duplicating (and, in the case of 
commercial use requestors, reviewing) documents to respond to a FOIA 
request. Direct costs include the salary of the employee performing the 
work (the basic rate of pay for the employee plus 16 percent of that 
rate to cover benefits) and the cost of

[[Page 14]]

operating duplicating equipment. Direct costs do not include overhead 
expenses such as the cost of space and heating or lighting the facility 
in which the records are stored.
    (h) Search means all time spent looking for material that is 
responsive to a FOIA request, including page-by-page or line-by-line 
identification of material within documents. This includes both manual 
searches and searches conducted with a computer using existing 
programming. Search time does not include review of material in order to 
determine whether the material is exempt from disclosure.
    (i) Review means the process of examining a document located in 
response to a commercial use request to determine whether any portion of 
the document located is exempt from disclosure. Review also refers to 
processing any document for disclosure, i.e., doing all that is 
necessary to excise exempt portions of the document and otherwise 
prepare the document for release. Review does not include time spent by 
the Commission resolving general legal or policy issues regarding the 
application of exemptions.
    (j) Duplication means the process of making a copy of a document 
necessary to respond to a FOIA request. Examples of the form such copies 
can take include, but are not limited to, paper copy, microform, audio-
visual materials, or machine readable documentation (e.g., magnetic tape 
or disk).
    (k) Commercial use means a purpose that furthers the commercial, 
trade, or profit interests of the requestor or the person on whose 
behalf the request is made. The Commission's determination as to whether 
documents are being requested for a commercial use will be based on the 
purpose for which the documents are being requested. Where the 
Commission has reasonable cause to doubt the use for which the requestor 
claims to have made the request or where that use is not clear from the 
request itself, the Commission will seek additional clarification before 
assigning the request to a specific category.
    (l) Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of graduate higher 
education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, which operates a program or programs of scholarly research.
    (m) Non-commercial scientific institution means an organization that 
is not operated on a commercial basis, as that term is defined in 
paragraph (k) of this section, and which is operated solely for the 
purpose of conducting scientific research the results of which are not 
intended to promote any particular product or industry.
    (n) Representative of the news media means a person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public. The term news means information that is 
about current events or that would be of current interest to the public. 
Examples of news media entities include, but are not limited to, 
television or radio stations broadcasting to the public at large, and 
publishers of periodicals (but only in those instances when they can 
qualify as disseminators of news, as defined in this paragraph) who make 
their products available for purchase or subscription by the general 
public. A freelance journalist may be regarded as working for a news 
organization and therefore considered a representative of the news media 
if that person can demonstrate a solid basis for expecting publication 
by that news organization, even though that person is not actually 
employed by that organization. The best means by which a freelance 
journalist can demonstrate a solid basis for expecting publication by a 
news organization is by having a publication contract with that news 
organization. When no such contract is present, the Commission will look 
to the freelance journalist's past publication record in making this 
determination.

[44 FR 33368, June 8, 1979, as amended at 45 FR 31291, May 13, 1980; 52 
FR 39212, Oct. 21, 1987]



Sec. 4.2  Policy on disclosure of records.

    (a) The Commission will make the fullest possible disclosure of 
records to the public, consistent with the rights of individuals to 
privacy, the rights of

[[Page 15]]

persons contracting with the Commission with respect to trade secret and 
commercial or financial information entitled to confidential treatment, 
and the need for the Commission to promote free internal policy 
deliberations and to pursue its official activities without undue 
disruption.
    (b) All Commission records shall be available to the public unless 
they are specifically exempt under this part.
    (c) To carry out this policy, the Commission shall designate a 
Freedom of Information Act Officer.



Sec. 4.3  Scope.

    The regulations in this part implement the provisions of the Freedom 
of Information Act, 5 U.S.C. 552, with respect to the availability of 
records for inspection and copying.

[44 FR 33368, June 8, 1979, as amended at 45 FR 31291, May 13, 1980]



Sec. 4.4  Availability of records.

    (a) In accordance with 5 U.S.C. 552 (a)(2) and (a)(3) the Commission 
shall make the following materials available for public inspection and 
copying:
    (1) Statements of policy and interpretation which have been adopted 
by the Commission;
    (2) Administrative staff manuals and instructions to staff that 
affect a member of the public;
    (3) Opinions of Commissioners rendered in enforcement cases and 
General Counsel's reports and non-exempt 2 U.S.C. 437g investigatory 
materials in enforcement files will be made available no later than 30 
days from the date on which a respondent is notified that the Commission 
has voted to take no further action and to close such an enforcement 
file.
    (4) Letter requests for guidance and responses thereto;
    (5) The minutes of Commission meetings and transcripts made from 
tapes of Commission meetings;
    (6) Material routinely prepared for public distribution, e.g. 
campaign guidelines, FEC Record, press releases, speeches, notices to 
candidates and committees.
    (7) Proposals submitted in response to a request for proposals 
formulated pursuant to the Federal Procurement Regulations. 41 CFR 1-
1.001 et seq.
    (8) Contracts for services and supplies entered into by the 
Commission.
    (9) Statements and certifications (with respect to closing meetings) 
as required by the Government in the Sunshine Act, 5 U.S.C. 552b.
    (10) Reports of receipts and expenditures, designations of campaign 
depositories, statements of organization, candidate designations of 
committees, and the indices compiled from the filings therein.
    (11) Requests for advisory opinions, written comments submitted in 
connection therewith, and responses approved by the Commission.
    (12) With respect to enforcement matters, any conciliation agreement 
entered into between the Commission and any respondent.
    (13) Copies of studies published pursuant to the Commission's duty 
to serve as a national clearinghouse on election law administration.
    (14) Audit reports (if discussed in open session).
    (15) Agendas for Commission meetings.
    (b) Public access to the materials described in subparagraphs (a)(3) 
and (a)(10) through (a)(15) of this section is also available pursuant 
to the Federal Election Campaign Act of 1971, as amended, in accordance 
with the provisions of part 5 of this chapter.
    (c) The Commission shall maintain and make available current indexes 
and supplements providing identifying information regarding any matter 
issued, adopted or promulgated after April 15, 1975 as required by 5 
U.S.C. 552(a)(2)(c). These indexes and supplements shall be published 
and made available on at least a quarterly basis for public distribution 
unless the Commission determines by Notice in the Federal Register that 
publication would be unnecessary, impracticable, or not feasible due to 
budgetary considerations. Nevertheless, copies of any index or 
supplement shall be made available upon request at a cost not to exceed 
the direct cost of duplication.
    (d) The Freedom of Information Act and the provisions of this part 
apply only to existing records; they do not require the creation of new 
records.

[[Page 16]]

    (e) If documents or files contain both disclosable and 
nondisclosable information, the nondisclosable information will be 
deleted and the disclosable information released unless the disclosable 
portions cannot be reasonably segregated from the other portions in a 
manner which will allow meaningful information to be disclosed.
    (f) All records created in the process of implementing provisions of 
5 U.S.C. 552 will be maintained by the Commission in accordance with the 
authority granted by General Records Schedule 14, approved by the 
National Archives and Records Service of the General Services 
Administration.

[44 FR 33368, June 8, 1979, as amended at 45 FR 31291, May 13, 1980]



Sec. 4.5  Categories of exemptions.

    (a) No requests under 5 U.S.C. 552 shall be denied release unless 
the record contains, or its disclosure would reveal, matters that are:
    (1) Specifically authorized under criteria established by an 
executive order to be kept secret in the interest of national defense or 
foreign policy and are in fact properly classified pursuant to such 
Executive order;
    (2) Related solely to the internal personnel rules and practices of 
the Commission;
    (3) Specifically exempted from disclosure by statute, provided that 
such statute (A) requires that the matters be withheld from the public 
in such a manner as to leave no discretion on the issue, or (B) 
establishes particular criteria for withhholding or refers to particular 
types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person which are privileged or confidential. Such information 
includes confidential business information which concerns or relates to 
the trade secrets, processes, operations, style of works, or apparatus, 
or to the production, sales, shipments, purchases, transfers, 
identification of customers, inventories, or amount of source of income, 
profits, losses, or expenditures of any person, firm, partnership, 
corporation, or other organization, if the disclosure is likely to have 
the effect of either impairing the Commission's ability to obtain such 
information as is necessary to perform its statutory functions, or 
causing substantial harm to the competitive position of the person, 
firm, partnership, corporation, or other organization from which the 
information was obtained, unless the Commission is required by law to 
disclose such information. These procedures shall be used for submitting 
business information in confidence:
    (i) A request for confidential treatment shall be addressed to the 
FOIA officer, Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463, and shall indicate clearly on the envelope that it 
is a request for confidential treatment.
    (ii) With each submission of, or offer to submit, business 
information which a submitter desires to be treated as confidential 
under paragraph (a)(4) of this section, the submitter shall provide the 
following, which may be disclosed to the public: (A) A written 
description of the nature of the subject information, and a 
justification for the request for its confidential treatment, and (B) a 
certification in writing under oath that substantially identical 
information is not available to the public.
    (iii) Approval or denial of requests shall be made only by the FOIA 
officer or his or her designees. A denial shall be in writing, shall 
specify the reason therefore, and shall advise the submitter of the 
right to appeal to the Commission.
    (iv) For good cause shown, the Commission may grant an appeal from a 
denial by the FOIA Officer or his or her designee if the appeal is filed 
within fifteen (15) days after receipt of the denial. An appeal shall be 
addressed to the FOIA Officer, Federal Election Commission, 999 E 
Street, NW., Washington, DC 20463 and shall clearly indicate that it is 
a confidential submission appeal. An appeal will be decided within 
twenty (20) days after its receipt (excluding Saturdays, Sundays and 
legal holidays) unless an extension, stated in writing with the reasons 
therefore, has been provided the person making the appeal.
    (v) Any business information submitted in confidence and determined 
to be entitled to confidential treatment shall be maintained in 
confidence by

[[Page 17]]

the Commission and not disclosed except as required by law. In the event 
that any business information submitted to the Commission is not 
entitled to confidential treatment, the submitter will be permitted to 
withdraw the tender unless it is the subject of a request under the 
Freedom of Information Act or of judicial discovery proceedings.
    (vi) Since enforcement actions under 2 U.S.C. 437g are confidential 
by statute, the procedures outlined in Sec. 4.5(a)(4) (i) thru (v) are 
not applicable.
    (5) Inter-agency or intra-agency memoranda or letters which would 
not be available by law to a party in litigation with the Commission.
    (6) Personnel and medical files and similar files, the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy.
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement authority in the course of a criminal 
investigation, or by an agency conducting a lawful national security 
intelligence investigation, information furnished by a confidential 
source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (b) Whenever a request is made which involves access to records 
described in 11 CFR 4.5(a)(7): and
    (1) The investigation or proceeding involves a possible violation of 
criminal law; and
    (2) There is reason to believe that--
    (i) The subject of the investigation or proceeding is not aware of 
its pendency, and
    (ii) Disclosure of the existence of the records could reasonably be 
expected to interfere with enforcement proceedings;

The agency may, during only such time as that circumstance continues, 
treat the records as not subject to the requirements of the Freedom of 
Information Act.
    (c) Any reasonably segregable portion of a record shall be provided 
to any person requesting such record after deletion of the portions 
which are exempt.
    (d) If a requested record is one of another government agency or 
deals with subject matter to which a government agency other than the 
Commission has exclusive or primary responsibility, the request for such 
a record shall be promptly referred by the Commission to that agency for 
disposition or guidance as to disposition.
    (e) Nothing in this part authorizes withholding of information or 
limiting the availability of records to the public, except as 
specifically provided in this part; nor is this part authority to 
withhold information from Congress.

[44 FR 33368, June 8, 1979, as amended at 50 FR 50778, Dec. 12, 1985; 52 
FR 23638, June 24, 1987; 52 FR 39212, Oct. 21, 1987]



Sec. 4.6  Discretionary release of exempt records.

    The Commission may, in its discretion, release requested records 
despite the applicability of the exemptions in Sec. 4.5(a), if it 
determines that it is in the public interest and that the rights of 
third parties would not be prejudiced.



Sec. 4.7  Requests for records.

    (a) A request to inspect or copy Commission public records of the 
type referred to in 11 CFR 4.4(b) may be made

[[Page 18]]

in person or by mail. The Public Records Office is open Monday through 
Friday between the hours of 9 a.m. and 5 p.m. and is located on the 
first floor, 999 E Street, NW., Washington, DC 20463.
    (b) Requests for copies of records pursuant to the Freedom of 
Information Act shall be addressed to FOIA officer, Federal Election 
Commission, 999 E Street, NW., Washington, DC 20463. The request shall 
reasonably describe the records sought with sufficient specificity with 
respect to names, dates, and subject matter, to permit the records to be 
located. A requester will be promptly advised if the records cannot be 
located on the basis of the description given and that further 
identifying information must be provided before the request can be 
satisfied.
    (c) Records or copies thereof will normally be made available either 
immediately upon receipt of a request or within ten working days 
thereafter, or twenty working days in the case of an appeal, unless in 
unusual circumstances the time is extended or subject to 11 CFR 
4.9(f)(3), which governs advance payments. In the event the time is 
extended, the requestor shall be notified of the reasons for the 
extension and the date on which a determination is expected to be made, 
but in no case shall the extended time exceed ten working days. An 
extension may be made if it is--
    (1) Necessary to locate records or transfer them from physically 
separate facilities; or
    (2) Necessary to search for, collect, and appropriately examine a 
large quantity of separate and distinct records which are the subject of 
a single request; or
    (3) Necessary for consultation with another agency which has a 
substantial interest in the determination of the request, or with two or 
more components of the Commission which have a substantial subject 
matter interest therein.
    (d) Any person denied access to records by the Commission shall be 
notified immediately giving reasons therefore, and notified of the right 
of such person to appeal such adverse determination to the Commission.
    (e) The date of receipt of a request under this part shall be the 
date on which the FOIA Officer actually receives the request.

[44 FR 33368, June 8, 1979, as amended at 45 FR 31292, May 13, 1980; 50 
FR 50778, Dec. 12, 1985; 52 FR 39213, Oct. 21, 1987]



Sec. 4.8  Appeal of denial.

    (a) Any person who has been notified pursuant to Sec. 4.6(d) of this 
part that his/her request for inspection of a record or for a copy has 
been denied, or who has received no response within ten working days (or 
within such extended period as is permitted under Sec. 4.7(c) of this 
part) after the request has been received by the Commission, may appeal 
the adverse determination or the failure to respond by requesting the 
Commission to direct that the record be made available.
    (b) The appeal request shall be in writing, shall clearly and 
prominently state on the envelope or other cover and at the top of the 
first page ``FOIA Appeal'', and shall identify the record in the form in 
which it was originally requested.
    (c) The appeal request should be delivered or addressed to the FOIA 
Officer, Federal Election Commission, 999 E Street, NW., Washington, DC 
20463.
    (d) The requestor may state facts and cite legal or other 
authorities as he/she deems appropriate in support of the appeal 
request.
    (e) For good cause shown, the Commission may disclose a record which 
is subject to one of the exemptions listed in Sec. 4.5 of this part.
    (f) The Commission will make a determination with respect to any 
appeal within twenty days (excluding Saturdays, Sundays and legal 
holidays) after receipt of the appeal (or within such extended period as 
is permitted under Sec. 4.7(c) of this part). If on appeal, the denial 
of the request for a record or a copy is in whole or in part upheld, the 
Commission shall advise the requestor of the denial and shall notify 
him/her of the provisions for judicial review of that determination as 
set forth in 5 U.S.C. 552(a)(4).
    (g) Because of the risk of misunderstanding inherent in oral 
communications, the Commission will not entertain any appeal from an 
alleged denial

[[Page 19]]

or failure to comply with an oral request. Any person who has orally 
requested a copy of a record that he/she believes to have been 
improperly denied should resubmit the request in writing as set forth in 
Sec. 4.7.

[44 FR 33368, June 8, 1979, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 4.9  Fees.

    (a) Exceptions to fee charges--(1) General. Except for a commercial 
use requester, the Commission will not charge a fee to any requester for 
the first two hours of search time and the first 100 pages of 
duplication in response to any FOIA request.
    (2) Free computer search time. For purposes of this paragraph, the 
term search time is based on the concept of a manual search. To apply 
this to a search conducted by a computer, the Commission will provide 
the equivalent dollar value of two hours of professional staff time, 
calculated according to paragraph (c)(4) of this section, in computer 
search time. Computer search time is determined by adding the cost of 
the computer connect time actually used for the search, calculated at 
the rate of $25.00 per hour, to the cost of the operator's salary for 
the time spent conducting the computer search, calculated at the 
professional staff time rate set forth at paragraph (c)(4) of this 
section.
    (3) Definition of pages. For purposes of this paragraph, the word 
pages refers to paper copies of a standard agency size which will 
normally be 8\1/2\  x  11 or 
8\1/2\  x  14. Thus, while a 
requester would not be entitled to 100 free computer disks, for example, 
a requester would be entitled to 100 free pages of a computer printout.
    (4) Minimum charge. The Commission will not charge a fee to any 
requester when the allowable direct cost of that FOIA request is equal 
to or less than the Commission's cost of routinely collecting and 
processing a FOIA request fee.
    (b) Fee reduction or waiver--(1) The Commission will consider 
requests for the reduction or waiver of any fees assessed pursuant to 
paragraph (c)(1) of this section if it determines, either as a result of 
its own motion or in response to a written submission by the requester, 
that disclosure of the information is in the public interest because it 
is likely to contribute significantly to public understanding of the 
operations or activities of the government and that disclosure of the 
information is not primarily in the commercial interest of the 
requester.
    (2) A request for a reduction or waiver of fees shall be made in 
writing by the FOIA requestor; shall accompany the relevant FOIA request 
so as to be considered timely; and shall include a specific explanation 
as to why the fee for that FOIA request should be reduced or waived, 
applying the standard stated in paragraph (b)(1) of this section to the 
facts of that particular request. In addition, the explanation shall 
include: the requester's (and user's, if the requester and the user are 
different persons or entities) identity, qualifications and expertise in 
the subject area, and ability and intention to disseminate the 
information to the public; and a discussion of any commercial or 
personal benefit that the requestor (and user, if the requestor and user 
are different persons or entities) expects as a result of disclosure, 
including whether the information disclosed would be resold in any form 
at a fee above actual cost.
    (c) Fees to be charged. (1) The FOIA services provided by the 
Commission in response to a FOIA request for which the requestor will be 
charged will depend upon the category of the requestor. The categories 
of FOIA requestors are as follows:
    (i) Commercial use requestors. A requestor of documents for 
commercial use will be assessed reasonable standard charges for the full 
allowable direct costs of searching for, reviewing for release and 
duplicating the records sought, according to the Commission's schedule 
of fees for those services as set forth at paragraph (c)(4) of this 
section. A commercial use requestor is not entitled to two hours of free 
search time nor 100 free pages of duplication of documents.
    (ii) Educational and non-commercial scientific institution 
requestors. The Commission will provide documents to requestors in this 
category for the cost of duplication of the records provided by

[[Page 20]]

the Commission in response to the request, according to the Commission's 
schedule of fees as set forth at paragraph (c)(4) of this section, 
excluding charges for the first 100 pages of duplication. Requestors in 
this category will not be charged for search time. To be eligible for 
inclusion in this category, requestors must show that the request is 
being made as authorized by and under the auspices of a qualifying 
institution and that the records are not sought for a commercial use, 
but are sought in furtherance of scholarly (if the request is from an 
educational institution) or scientific (if the request is from a non-
commercial scientific institution) research.
    (iii) Requestors who are representatives of the news media. The 
Commission will provide documents to requestors in this category for the 
cost of duplication of the records provided by the Commission in 
response to the request, according to the Commission's schedule of fees 
as set forth at paragraph (c)(4) of this section, excluding charges for 
the first 100 pages of duplication. Requestors in this category will not 
be charged for search time. To be eligible for inclusion in this 
category, the requestor must meet the criteria listed at 11 CFR 4.1(n) 
and his or her request must not be made for a commercial use. A request 
for records supporting the news dissemination function of the requestor 
shall not be considered to be a request that is for a commercial use.
    (iv) All other requestors. The Commission will charge requestors who 
do not fit into any of the categories listed in paragraph (c)(1)(i), 
(ii) or (iii) of this section the full direct costs of searching for and 
duplicating records in response to the request, according to the 
Commission's schedule of fees as set forth at paragraph (c)(4) of this 
section, excluding charges for the first two hours of search time and 
the first 100 pages of duplication. Requests from record subjects for 
records about themselves will continue to be treated under the fee 
provisions of the Privacy Act of 1974 which permit fees only for 
duplication.
    (2) The Commission may assess fees for the full allowable direct 
costs of searching for documents in response to a request even if the 
Commission fails to locate any documents which are responsive to that 
request and, in the case of commercial use requestors, of reviewing 
documents located in response to a request which the Commission 
determines are exempt from disclosure.
    (3) If the Commission estimates that search or duplication charges 
are likely to exceed $25.00, it will notify the requestor of the 
estimated amount of the fee unless the requestor has indicated in 
advance a willingness to pay a fee as high as that estimated by the 
Commission. Through this notification, the Commission will offer the 
requestor the opportunity to confer with Commission staff to reformulate 
the original request in order to meet the requestor's needs at a lower 
cost.
    (4) The following is the schedule of the Commission's standard fees. 
The cost of staff time will be added to all of the following fees, 
generally at the Professional rate listed below, except for the cost of 
Photocopying from photocopying machines which has been calculated to 
include staff time.

                              Photocopying

Photocopying from photocopying machines--$.07 per page
Photocopying from microfilm reader-printer--$.15 per page
Paper copies from microfilm-paper print machine--$.05 per frame page

                           Reels of Microfilm

Daily film (partial or complete roll)--$2.85 per roll
Other film (partial or complete roll)--$5.00 per roll

            Publications: (new or not from available stocks)

Cost of photocopying document--$.07 per page
Cost of binding document--$.30 per inch

                     Publications: (available stock)

If available from stock on hand, cost is based on previously calculated 
cost as stated in the publication (based on actual cost per copy, 
including reproduction and binding). Commission publications for which 
fees will be charged include, but are not limited to, the following: 
Advisory Opinion Index, Report on Financial Activity, Financial Control 
and Compliance Manual, MUR Index, and Guideline for Presentation in Good 
Order.

[[Page 21]]

                             Computer Tapes

Cost to process the request at the rate of $25.00 per hour connect time 
plus the cost of the computer tape ($25.00) and professional staff time 
(see Staff Time).

               Computer Indexes (including Name Searches)

Cost to process the request at the rate of $25.00 per hour connect time 
plus the cost of professional staff time (see Staff Time).

                               Staff Time

Clerical: $4.50 per each half hour (agency average of staff below a GS-
11) for each request.
Professional: $12.40 per each half hour (agency average of staff at GS-
11 and above) for each request.

                              Other Charges

Certification of a Document: $7.35 per quarter hour.
Transcripts of Commission meetings not previously transcribed: $7.50 per 
half hour (equivalent of a GS-11 executive secretary).
The Commission will not charge a fee for ordinary packaging and mailing 
of records requested. When a request for special mailing or delivery 
services is received the Commission will package the records requested. 
The requestor will make all arrangements for pick-up and delivery of the 
requested materials. The requestor shall pay all costs associated with 
special mailing or delivery services directly to the courier or mail 
service.

    (5) Upon receipt of any request for the production of computer tape 
or microfilm, the Commission will advise the requestor of the identity 
of the private contractor who will perform the duplication services. If 
fees are charged for the production of computer tape or microfilm, they 
shall be made payable to that private contractor and shall be forwarded 
to the Commission.
    (d) Interest charges. FOIA requestors should pay fees within 30 days 
following the day on which the invoice for that request was sent to the 
requestor. If the invoice is unpaid on the 31st day following the day on 
which the invoice was sent, the Commission will begin assessing interest 
charges, which will accrue from the date the invoice was mailed. 
Interest will be charged at a rate that is equal to the average 
investment rate for the Treasury tax and loan accounts for the 12-month 
period ending on September 30 of each year, rounded to the nearest whole 
percentage point, pursuant to 31 U.S.C. 3717. The accrual of interest 
will be stayed by the Commission's receipt of the fee, even if the fee 
has not yet been processed.
    (e) Aggregating requests. A requestor may not file multiple 
requests, each seeking portions of a document or documents, in order to 
avoid payment of fees. When the Commission reasonably believes that a 
FOIA requestor or group of requestors acting in concert is attempting to 
break a request down into a series of requests for the purpose of 
evading the assessment of fees, the Commission will aggregate any such 
requests and charge the appropriate fees. In making this determination, 
the Commission will consider the time period in which the requests have 
occurred, the relationship of the requestors, and the subject matter of 
the requests.
    (f) Advance payments. The Commission will require a requestor to 
make an advance payment, i.e., a payment before work is commenced or 
continued on a request, when:
    (1) The Commission estimates or determines that allowable charges 
that a requestor may be required to pay are likely to exceed $250. In 
such a case, the Commission will notify the requestor of the likely cost 
and, where the requestor has a history of prompt payment of FOIA fees, 
obtain satisfactory assurance of full payment, or in the case of a 
requestor with no FOIA fee payment history, the Commission will require 
an advance payment of an amount up to the full estimated charges; or
    (2) A requestor has previously failed to pay a fee in a timely 
fashion (i.e., within 30 days of the date of the billing). In such a 
case, the Commission may require that the requestor pay the full amount 
owed plus any applicable interest or demonstrate that the fee has been 
paid and make an advance payment of the full amount of the estimated fee 
before the Commission begins to process a new request or a pending 
request from that requestor.
    (3) If the provisions of paragraph (f) (1) or (2) of this section 
apply, the administrative time limits prescribed in 11 CFR 4.7(c) will 
begin only after the

[[Page 22]]

Commission has received the payments or the requestor has made 
acceptable arrangements to make the payments required by paragraph (f) 
(1) or (2) of this section.

[52 FR 39213, Oct. 21, 1987]



PART 5--ACCESS TO PUBLIC DISCLOSURE DIVISION DOCUMENTS--Table of Contents




Sec.
5.1  Definitions.
5.2  Policy on disclosure of records.
5.3  Scope.
5.4  Availability of records.
5.5  Request for records.
5.6  Fees.

    Authority: 2 U.S.C. 437f(d), 437g(a)(4)(B)(ii), 438(a), and 31 
U.S.C. 9701.

    Source: 45 FR 31293, May 13, 1980, unless otherwise noted.



Sec. 5.1  Definitions.

    (a) Commission means the Federal Election Commission established by 
the Federal Election Campaign Act of 1971, as amended.
    (b) Commissioner means the Secretary of the Senate, the Clerk of the 
House, or their designees, ex officio, or an individual appointed to the 
Federal Election Commission pursuant to 2 U.S.C. 437c(a).
    (c) Request means to seek access to Commission materials subject to 
the provisions of the Federal Election Campaign Act of 1971, as amended.
    (d) Requestor is any person who submits a request to the Commission.
    (e) Act means the Federal Election Campaign Act, as amended by the 
Federal Election Campaign Act Amendments of 1974, 1976, and 1979, and 
unless specifically excluded, includes chapters 95 and 96 of the 
Internal Revenue Code of 1954 relating to public financing of Federal 
elections.
    (f) Public Disclosure Division of the Commission is that division 
which is responsible for, among other things, the processing of requests 
for public access to records which are submitted to the Commission 
pursuant to 2 U.S.C. 437g(a)(4)(B)(ii), and 438(a).



Sec. 5.2  Policy on disclosure of records.

    (a) The Commission will make the fullest possible disclosure of 
records to the public, consistent with the rights of individuals to 
privacy, the rights of persons contracting with the Commission with 
respect to trade secrets and commercial or financial information 
entitled to confidential treatment, and the need for the Commission to 
promote free internal policy deliberations and to pursue its official 
activities without undue disruption.
    (b) Nothing herein shall be deemed to restrict the public 
availability of Commission records falling outside provisions of the 
Act, or to restrict such public access to Commission records as is 
available pursuant to the Freedom of Information Act and the rules set 
forth as part 4 of this chapter.



Sec. 5.3  Scope.

    (a) The regulations in this part implement the provisions of 2 
U.S.C. 437f(d), 437g(a)(4)(B)(ii), and 438(a).
    (b) Public access to such Commission records as are subject to the 
collateral provisions of the Freedom of Information Act and are not 
included in the material subject to disclosure under this part 
(described in 11 CFR 5.4(a)) shall be governed by the rules set forth as 
part 4 of this chapter.



Sec. 5.4  Availability of records.

    (a) In accordance with 2 U.S.C. 438(a), the Commission shall make 
the following material available for public inspection and copying 
through the Commission's Public Disclosure Division:
    (1) Reports of receipts and expenditures, designations of campaign 
depositories, statements of organization, candidate designations of 
campaign committees and the indices compiled from the filings therein.
    (2) Requests for advisory opinions, written comments submitted in 
connection therewith, and responses issued by the Commission.
    (3) With respect to enforcement matters, any conciliation agreement 
entered into between the Commission and any respondent.
    (4) Opinions of Commissioners rendered in enforcement cases and 
General Counsel's reports and non-exempt 2 U.S.C. 437g investigatory 
materials in enforcement files will be made available no later than 30 
days from the date on which a respondent is notified that the Commission 
has voted to take

[[Page 23]]

no further action and to close such an enforcement file.
    (b) The provisions of this part apply only to existing records; 
nothing herein shall be construed as requiring the creation of new 
records.
    (c) In order to ensure the integrity of the Commission records 
subject to the Act and the maximum availability of such records to the 
public, nothing herein shall be construed as permitting the physical 
removal of any Commission records from the public facilities maintained 
by the Public Disclosure Division other than copies of such records 
obtained in accordance with the provisions of this part.
    (d) Release of records under this section is subject to the 
provisions of 5 U.S.C. 552a.



Sec. 5.5  Request for records.

    (a) A request to inspect or copy those public records described in 
11 CFR 5.4(a) may be made in person or by mail. The Public Disclosure 
Division is open Monday through Friday between the hours of 9 a.m. and 5 
p.m. and is located on the first floor, 999 E Street, NW., Washington, 
DC 20463.
    (b) Each request shall describe the records sought with sufficient 
specificity with respect to names, dates and subject matter to permit 
the records to be located with a reasonable amount of effort. A 
requester will be promptly advised if the requested records cannot be 
located on the basis of the description given and that further 
identifying information must be provided before the request can be 
satisfied.
    (c) Requests for copies of records not available through the Public 
Disclosure Division shall be addressed to the FOIA Officer, Federal 
Election Commission, 999 E Street, NW., Washington, DC 20463. Requests 
for Commission records not described in 11 CFR 5.4(a) shall be treated 
as requests made pursuant to the Freedom of Information Act (5 U.S.C. 
552) and shall be governed by 11 CFR part 4. In the event that the 
Public Disclosure Division receives a written request for access to 
materials not described in 11 CFR 5.4(a), it shall promptly forward such 
request to the Commission FOIA Officer for processing in accordance with 
the provisions of part 4 of this chapter.

[45 FR 31293, May 13, 1980, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 5.6  Fees.

    (a)(1) Fees will be charged for copies of records which are 
furnished to a requester under this part and for the staff time spent in 
locating and reproducing such records. The fees to be levied for 
services rendered under this part shall not exceed the Commission's 
direct cost of processing requests for those records computed on the 
basis of the actual number of copies produced and the staff time 
expended in fulfilling the particular request, in accordance with the 
following schedule of standard fees:

Photocopying from microfilm reader-printer--$.15 per page
Photocopying from photocopying machines--$.05 per page
Paper copies from microfilm--Paper Print Machine--$.05 per frame/page

                           Reels of Microfilm

Daily film (partial or complete roll)--$2.85 per roll
Other film (partial or complete roll)--$5.00 per roll

            Publications: (new or not from stocks available)

Cost of photocopying (reproducing) document--$.05 per page
Cost of binding document--$.30 per inch
Plus cost of staff research time after first \1/2\ hour (see Research 
Time)

                     Publications: (available stock)

If available from stock on hand, cost is based on previously calculated 
cost as stated in the publication (based on actual cost per copy, 
including reproduction and binding).

                             Computer Tapes:

Cost ($.0006 per Computer Resource Unit Utilized--CRU) to process the 
request plus the cost of the computer tape ($25) and professional staff 
time (see Research Time). The cost varies based upon request.

                            Computer Indexes:

No charge for 20 or fewer requests for computer indexes, except for a 
name search as described below.
C Index--Committee Index of Disclosure Documents--No charge for requests 
of 20 or fewer committee ID numbers. Requests for

[[Page 24]]

more than 20 ID numbers will cost $.05 for each ID number requested.
E Index (Parts 1-4)--Candidate Index of Supporting Documents--No charge 
for requests of 20 or fewer candidate ID numbers. Requests for more than 
20 ID numbers will cost $.10 for each ID number requested.
D Index--Committee Index or Candidates Supported/Opposed--No charge for 
requests of 20 or fewer committee ID numbers. Requests for more than 20 
ID numbers will cost $.30 for each committee ID number requested.
E Index (Complete)--Candidate Index of Supporting Documents--No charge 
for requests of 20 or fewer committee ID numbers. Requests for more than 
20 ID numbers will cost $2.00 for each candidate ID number requested.
G Index--Selected List of Receipts and Expenditures--No charge for 
requests of 20 or fewer committee ID numbers. Requests for more than 20 
ID numbers will cost $2.00 for each ID number requested.
Other computer index requests for more than 20 ID numbers will cost 
$.0006 per CRU (Computer Resource Unit) utilized.
Name Search--A computer search of an entire individual contributor file 
for contributions made by a particular individual or individuals will 
cost $.0006 per CRU (Computer Resource Unit) utilized.

                     Research Time/Photocopying Time

Clerical: First \1/2\ hour is free; remaining time costs $4.50 per each 
half hour (agency average of staff below a GS-11) for each request.
Professional: First \1/2\ hour is free; remaining time costs $12.40 per 
each half hour (agency average of staff at GS-11 and above) for each 
request.

                              Other Charges

Certification of a Document: $7.35 per quarter hour.
Transcripts of Commission meetings not previously transcribed: $7.50 per 
half hour (equivalent of a GS-11 executive secretary).

    (2) Upon receipt of any request for the production of computer tape 
or microfilm, the Commission will advise the requester of the identity 
of the private contractor who will perform the duplication services. The 
fee for the production of computer tape or microfilm shall be made 
payable to that private contractor and shall be fowarded to the 
Commission.
    (b) Commission publications for which fees will be charged under 11 
CFR 5.6(a) include, but are not limited to, the following:

Advisory Opinion Index
Report on Financial Activity
Financial Control and Compliance Manual
MUR Index
Guideline for Presentation in Good Order
Office Account Index

    (c) In the event the anticipated fees for all pending requests from 
the same requester exceed $25.00, records will not be searched, nor 
copies furnished, until the requester pays, or makes acceptable 
arrangements to pay, the total amount due.
    Similarly, if the records requested require the production of 
microfilm or of computer tapes, the Commission will not instruct its 
contractor to duplicate the records until the requester has submitted 
payment as directed or has made acceptable arrangements to pay the total 
amount due. If any fee is not precisely ascertainable, an estimate will 
be made by the Commission and the requester will be required to forward 
the fee so estimated. In the event any advance payment differs from the 
actual fee, an appropriate adjustment will be made at the time the 
copies are made available by the Commission.
    (d) The Commission may reduce or waive payments of fees hereunder if 
it determines that such waiver or reduction is in the public interest 
because the furnishing of the requested information to the particular 
requester involved can be considered as primarily benefiting the general 
public as opposed to primarily benefiting the person or organization 
requesting the information.

[49 FR 30460, July 31, 1984, as amended at 52 FR 39214, Oct. 21, 1987]



PART 6--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE FEDERAL ELECTION COMMISSION--Table of Contents




Sec.
6.101  Purpose.
6.102  Application.
6.103  Definitions.
6.104-6.109  [Reserved]
6.110  Evaluation.
6.111  Notice.
6.112-6.129  [Reserved]

[[Page 25]]

6.130  General prohibitions against discrimination.
6.131-6.139  [Reserved]
6.140  Employment.
6.141-6.148  [Reserved]
6.149  Program accessibility: Discrimination prohibited.
6.150  Program accessibility: Existing facilities.
6.151  Program accessibility: New construction and alterations.
6.152-6.159  [Reserved]
6.160  Communications.
6.161-6.169  [Reserved]
6.170  Compliance procedures.
6.171-6.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 49 FR 33211, Aug. 22, 1984, unless otherwise noted.



Sec. 6.101  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 6.102  Application.

    This part applies to all programs or activities conducted by the 
Commission.



Sec. 6.103  Definitions.

    For purposes of this part, the term--
    (a) Auxiliary aids means services, including attendant services, or 
devices that enable handicapped persons, including those with impaired 
sensory, manual, or speaking skills to have an equal opportunity to 
participate in, and enjoy the benefits of, programs or activities 
conducted by the Commission. For example, auxiliary aids useful for 
persons with impaired vision include readers, Brailled materials, audio 
recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices. Although auxiliary 
aids are explicitly required only by 11 CFR 6.160(a)(1), they may also 
be used to meet other requirements of this part.
    (b) Commission means the Federal Election Commission, 999 E Street, 
NW., Washington, DC 20463.
    (c) Complete complaint means a written statement that contains the 
complainant's name and address and describes the Commission's actions in 
sufficient detail to inform the Commission of the nature and date of the 
alleged violation of section 504. It shall be signed by the complainant 
or by someone authorized to do so on his or her behalf. Complaints filed 
on behalf of classes or third parties shall describe or identify (by 
name, if possible) the alleged victims of discrimination.
    (d) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property whether owned, leased or 
used on some other basis by the Commission.
    (e) Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment. As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, drug addiction, and 
alcoholism.

[[Page 26]]

    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the Commission as 
constituting such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in 11 CFR 6.103(e)(1) but 
is treated by the agency as having such an impairment.
    (f) Qualified handicapped person means--
    (1) With respect to any Commission program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, a handicapped person who, with reasonable accommodation, 
meets the essential eligibility requirements and who can achieve the 
purpose of the program or activity; and
    (2) With respect to any other program or activity, a handicapped 
person who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity.
    (g) Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617), 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Act of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used in 
this part, section 504 applies only to programs or activities conducted 
by the Commission and not to any federally assisted programs or 
activities that it administers.

[49 FR 33211, Aug. 22, 1984, as amended at 50 FR 50778, Dec. 12, 1985]



Secs. 6.104-6.109  [Reserved]



Sec. 6.110  Evaluation.

    (a) Within one year of the effective date of this part, the 
Commission will conduct, with the assistance of interested persons, 
including handicapped persons and organizations representing handicapped 
persons, and evaluation of its compliance with section 504. This 
evaluation will include a determination of whether the Commission's 
policies and practices, and the effects thereof, meet the requirements 
of this part and whether modification of any such policies or practices 
is required to comply with section 504. If modification of any policy or 
practice is found to be required as a result of this evaluation, the 
Commission will proceed to make the necessary modifications.
    (b) For at least three years following completion of the evaluation 
required under paragraph (a), the Commission will maintain on file and 
make available for public inspection:
    (1) A list of the interested persons consulted;
    (2) A description of areas examined and any problems identified; and
    (3) A description of any modifications made.



Sec. 6.111  Notice.

    The Commission will make available to employees, applicants, 
participants, beneficiaries, and other interested persons information 
regarding the provisions of this part and its applicability to the 
programs or activities conducted by the Commission. The Commission will 
make such information available to them in a manner it finds necessary 
to effectively apprise such persons of the protections against 
discrimination assured them by section 504 and the provisions of this 
part.

[[Page 27]]



Secs. 6.112-6.129  [Reserved]



Sec. 6.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
conducted by the Commission.
    (b)(1) The Commission, in providing any aid, benefit, or service, 
may not, directly or through contractual, licensing, or other 
arrangements, on the basis of handicap--
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aids, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aids, benefits, or services that are as 
effective as those provided to others;
    (v) Aid or perpetuate discrimination against a qualified handicapped 
person by providing significant assistance to an agency, organization, 
or person that discriminates on the basis of handicap in providing any 
aid, benefit, or service to beneficiaries of the recipient's program, 
except that this paragraph does not apply to candidates or conventions 
receiving public financing under title 26, United States Code;
    (vi) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vii) Otherwise limit a qualified handicapped person in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The Commission may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The Commission may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap;
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to handicapped persons; or
    (iii) Perpetuate the discrimination of another agency.
    (4) The Commission may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
conducted by the Commission; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to handicapped persons.
    (5) The Commission, in the selection of procurement contractors, may 
not use criteria that subject qualified handicapped persons to 
discrimination on the basis of handicap.
    (6) The Commission may not administer a certification program in a 
manner that subjects qualified handicapped persons to discrimination on 
the basis of handicap, nor may the Commission establish requirements for 
the programs or activities of certified entities that subject qualified 
handicapped persons to discrimination on the basis of handicap. However, 
the programs or activities of entities that are certified by the 
Commission are not, themselves, covered by this part.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to handicapped 
persons or the exclusion of a specific class of

[[Page 28]]

handicapped persons from a program limited by Federal statute or 
Executive Order to a different class of handicapped persons is not 
prohibited by this part.
    (d) The Commission will administer programs and activities in the 
most integrated setting appropriate to the needs of qualified 
handicapped persons.



Secs. 6.131-6.139  [Reserved]



Sec. 6.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
conducted by the Commission. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established in 29 CFR part 1613, shall apply to employment in 
federally conducted programs or activities.



Secs. 6.141-6.148  [Reserved]



Sec. 6.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in 11 CFR 6.150 and 11 CFR 6.151, no 
qualified handicapped person shall be denied the benefits of, be 
excluded from participation in, or otherwise be subjected to 
discrimination under any program or activity conducted by the Commission 
because its facilities are inaccessible to or unusable by handicapped 
persons.



Sec. 6.150  Program accessibility; Existing facilities.

    (a) General. The Commission will operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not--
    (1) Necessarily require the Commission to make each of its existing 
facilities accessible to and usable by handicapped persons;
    (2) Require the Commission to take any action that it can 
demonstrate would result in a fundamental alteration in the nature of a 
program or activity or in undue financial and administrative burdens. 
The Commission has the burden of proving that compliance with 11 CFR 
6.150(a) would result in such alterations or burdens. The decision that 
compliance would result in such alteration or burdens must be made by 
the Commission after considering all agency resources available for use 
in the funding and operation of the conducted program or activity, and 
must be accompanied by a written statement of the reasons for reaching 
that conclusion. If an action would result in such an alteration or such 
burdens, the Commission will take any other action that would not result 
in such an alteration or such a burden but would nevertheless ensure 
that handicapped persons receive the benefits and services of the 
program or activity.
    (b) Methods. The Commission may comply with the requirements of this 
section through such means as redesign of equipment, reassignment of 
services to accessible buildings, assignment of aides to beneficiaries, 
home visits, delivery of services at alternate accessible sites, 
alteration of existing facilities and construction of new facilities, 
use of accessible rolling stock, or any other methods that result in 
making its programs or activities readily accessible to and usable by 
handicapped persons. The Commission is not required to make structural 
changes in existing facilities where other methods are effective in 
achieving compliance with this section. The Commission, in making 
alterations to existing buildings, will meet accessibility requirements 
to the extent compelled by the Architectural Barriers Act of 1968, as 
amended (42 U.S.C. 4151-4157) and any regulations implementing it. In 
choosing among available methods for meeting the requirements of this 
section, the Commission will give priority to those methods that offer 
programs and activities to qualified handicapped persons in the most 
integrated setting appropriate.
    (c) Time period for compliance. The Commission will comply with the 
obligations established under this section within sixty days of the 
effective date of this part except that where structural changes in 
facilities are undertaken, such changes will be made within three years 
of the effective date of this part, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be

[[Page 29]]

undertaken to achieve program accessibility, the Commission will 
develop, within six months of the effective date of this part, a 
transition plan setting forth the steps necessary to complete such 
changes. The plan will be developed with the assistance of interested 
persons, including handicapped persons and organizations representing 
handicapped persons. A copy of the transition plan will be made 
available for public inspection. The plan will, at a minimum--
    (1) Identify physical obstacles in the Commission's facilities that 
limit the accessibility of its programs or activities to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period;
    (4) Indicate the official responsible for implementation of the 
plan; and
    (5) Identify the persons or groups with whose assistance the plan 
was prepared.



Sec. 6.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constucted or altered 
by, on behalf of, or for the use of the Commission shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
handicapped persons. The definitions, requirements, and standards of the 
Architectural Barriers Act, 42 U.S.C. 4151-4157, as established in 41 
CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Secs. 6.152-6.159  [Reserved]



Sec. 6.160  Communications.

    (a) The Commission will take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The Commission will furnish appropriate auxiliary aids where 
necessary to afford a handicapped person an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the Commission.
    (i) In determination what type of auxiliary aid is necessary, the 
Commission will give primary consideration to the requests of the 
handicapped person.
    (ii) The Commission need not provide individually prescribed 
devices, readers for personal use or study, or other devices of a 
personal nature.
    (2) Where the Commission communicates with applicants and 
beneficiaries by telephone, telecommunications devices for deaf persons 
(TDD's), or equally effective telecommunication systems will be used.
    (b) The Commission will ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The Commission will provide signage at a primary entrance to 
each of its inaccessible facilities, directing users to a location at 
which they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) The Commission will take appropriate steps to provide 
handicapped persons with information regarding their section 504 rights 
under the Commission's programs of activities.
    (e) This section does not require the Commission to take any action 
that it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. The Commission has the burden of proving that compliance with 
this section would result in such alterations or burdens. The decision 
that compliance would result in such alteration or burdens must be made 
by the Commission after considering all agency resources available for 
use in the funding and operation of the conducted program or activity, 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the 
Commission will take any other action that would not result in such an 
alteration or such a burden but would nevertheless ensure

[[Page 30]]

that, to the maximum extent possible, handicapped persons receive the 
benefits and services of the program or activity.



Secs. 6.161-6.169  [Reserved]



Sec. 6.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the Commission.
    (b) The Commission will process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established in 29 CFR part 1613 pursuant to section 501 of the 
Rehabilitation Act of 1973 (29 U.S.C. 791).
    (c) Responsibility for implementation and operation of this section 
shall be vested in the Rehabilitation Act Officer.
    (d)(1)(i) Any person who believes that he or she or any specific 
class of persons of which he or she is a member has been subjected to 
discrimination prohibited by this part may file a complaint with the 
Rehabilitation Act Officer.
    (ii) Any person who believes that a denial of his or her services 
will result or has resulted in discrimination prohibited by this part 
may file a complaint with the Rehabilitatin Act Officer.
    (2) All complete complaints must be filed within 180 days of the 
alleged act of discrimination. The Commission may extend this time 
period for good cause.
    (3) Complaints filed under this part shall be addressed to the 
Rehabilitation Act Officer, 999 E Street, NW., Washington, DC 20463.
    (e) The Commission will notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), or section 502 of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 792), are not readily 
accessible and usable to handicapped persons.
    (f)(1) The Commission will accept and investigate a complete 
complaint that is filed in accordance with paragraph (d) of this section 
and over which it has jurisdiction. The Rehabilitation Act Officer will 
notify the complainant and the respondent of receipt and acceptance of 
the complaint.
    (2) If the Rehabilitation Act Officer receives a complaint that is 
not complete (See 11 CFR 6.101(c)), he or she will notify the 
complainant within 30 days of receipt of the incomplete complaint, that 
additional information is needed. If the complainant fails to complete 
the complaint within 30 days of receipt of this notice, the 
Rehabilitation Act Officer will dismiss the complaint without prejudice.
    (3) If the Rehabilitation Act Officer receives a complaint over 
which the Commission does not have jurisdiction, the Commission will 
promptly notify the complainant and will make reasonable efforts to 
refer the complaint to the appropriate governmental entity.
    (g) Within 180 days of receipt of a complete complaint for which it 
has jurisdiction, the Commission will notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description or a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the Commission of the letter required by Sec. 6.170(g). The Commission 
may extend this time for good cause.
    (i) Timely appeals to the Commission shall be addressed to the 
Rehabilitation Act Officer, Federal Election Commission, 999 E Street, 
NW., Washington, DC 20463.
    (j) The Commission will notify the complainant of the results of the 
appeal within 60 days of the receipt of the request. If the Commission 
determines that it needs additional information from the complainant, it 
shall have 60 days from the date it receives the additional information 
to make its determination on the appeal.

[[Page 31]]

    (k) The Commission may extend the time limits in paragraphs (g) and 
(j) of this section for good cause.
    (l) The Commission may delegate its authority for conducting 
complaint investigations to other Federal agencies, except that the 
authority for making the final determination may not be delegated.

[49 FR 33211, Aug. 22, 1984, as amended at 50 FR 50778, Dec. 12, 1985]



Secs. 6.171-6.999  [Reserved]



PART 7--STANDARDS OF CONDUCT--Table of Contents




                      Subpart A--General Provisions

Sec.
7.1  Purpose and applicability.
7.2  Definitions.
7.3  Notification to employees and special Commission employees.
7.4  Interpretation and advisory service.
7.5  Reporting suspected violations.
7.6  Disciplinary and other remedial action.

  Subpart B--Conduct and Responsibilities of Employees or Commissioners

7.7  Prohibited conduct--General.
7.8  Gifts, entertainment, and favors.
7.9  Outside employment or activities.
7.10  Financial interests.
7.11  Political and organization activity.
7.12  Membership in associations.
7.13  Use of Government property.
7.14  Prohibition against making complaints and investigations public.
7.15  Ex parte communications.
7.16  Miscellaneous statutory provisions.

 Subpart C--Conduct and Responsibilities of Special Commission Employees

7.17  Use of Commission employment.
7.18  Use of inside information.
7.19  Coercion.
7.20  Gifts, entertainment, and favors.
7.21  Miscellaneous statutory provisions.

    Subpart D--Post Employment Conflict of Interest: Procedures for 
                 Administrative Enforcement Proceedings

7.22  Scope.
7.23  Initiation of investigation.
7.24  Conduct of preliminary investigation.
7.25  Initiation of administrative disciplinary proceeding.
7.26  Notice to former employee.
7.27  Hearing examiner designation and qualifications.
7.28  Hearing date.
7.29  Hearing rights of former employee.
7.30  Hearing procedures.
7.31  Examiner's decision.
7.32  Appeal.
7.33  Administrative sanctions.

    Authority: 5 U.S.C. 7321 et seq.; 18 U.S.C. 207.

    Source: 51 FR 34446, Sept. 29, 1986, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 7.1  Purpose and applicability.

    (a) The Federal Election Commission is committed to honest, 
independent and impartial monitoring and enforcement of federal election 
law. To ensure public trust in the fairness and integrity of the federal 
elections process, all employees must observe the highest standards of 
conduct. This part prescribes standards of ethical conduct for 
Commissioners, employees and special Government employees of the Federal 
Election Commission relating to conflicts of interest arising out of 
outside employment, private business and professional activities, 
political activities, and financial interests. The avoidance of 
misconduct and conflicts of interest on the part of Commission employees 
through informed judgment is indispensable to the maintenance of these 
prescribed ethical standards. Attainment of these goals necessitates 
strict and absolute fairness and impartiality in the administration of 
the law.
    (b) This part applies to all persons included within the terms 
employee and special Commission employees of the Commission as defined 
in 11 CFR 7.2, except to the extent otherwise indicated herein, and is 
consistent with Executive Order 11222 and part 735 of title 5, Code of 
Federal Regulations, relating to employee responsibilities and conduct.
    (c) These Standards of Conduct shall be construed in accordance with 
any applicable laws, regulations and agreements between the Federal 
Election Commission and a labor organization.



Sec. 7.2  Definitions.

    As used in this part:
    (a) Commission means the Federal Election Commission, 999 E Street, 
NW., Washington, DC 20463.

[[Page 32]]

    (b) Commissioner means a voting member of the Federal Election 
Commission, in accordance with 2 U.S.C. 437c.
    (c) Conflict of interest means a situation in which an employee's 
private interest is inconsistent with the efficient and impartial 
conduct of his or her official duties and responsibilities.
    (d) Designated Agency Ethics Officer or Ethics Officer means the 
employee designated by the Commission to administer the provisions of 
the Ethics in Government Act of 1978 (Pub. L. 95-521), as amended, and 
includes a designee of the Ethics Officer.
    (e) Employee means an employee of the Federal Election Commission, 
but does not include a special Commission employee.
    (f) Former employee means one who was, and is no longer, an employee 
of the Commission.
    (g) Official responsibility means the direct administrative or 
operating authority, whether intermediate or final, to approve, 
disapprove, or otherwise direct Commission action. Official 
responsibility may be exercised alone or with others and either 
personally or through subordinates.
    (h) Outside employment or other outside activity means any work, 
service or other activity performed by an employee, but not a 
Commissioner, other than in the performance of the employee's official 
duties. It includes such activities as writing and editing, publishing, 
teaching, lecturing, consulting, self-employment, and other services or 
work performed, with or without compensation.
    (i) Person means an individual, corporation, company, association, 
firm, partnership, society, joint stock company, political committee, or 
other group, organization, or institution.
    (j) Special Commission employee means an individual who is retained, 
designated, appointed or employed by the Federal Election Commission to 
perform, with or without compensation, temporary duties either on a 
full-time or intermittent basis, for not to exceed 130 days during any 
period of 365 consecutive days, as defined at 18 U.S.C. 202.



Sec. 7.3  Notification to employees and special Commission employees.

    (a) The provisions of this part shall be brought to the attention 
of, and made available to, each employee and special Commission employee 
by furnishing a copy at the time of final publication. The provisions of 
this part shall further be brought to the attention of such employees at 
least annually thereafter.
    (b) The provisions of this part shall be brought to the attention of 
each new employee and new special Commission employee by furnishing a 
copy at the time of entrance of duty, and by such other methods of 
information and education as the Ethics Officer may prescribe.



Sec. 7.4  Interpretation and advisory service.

    A Commissioner or employee seeking advice and guidance on questions 
of conflict of interest and on other matters covered by this part should 
consult with the Commission's General Counsel, who serves as Ethics 
Officer. The Ethics Officer should be consulted prior to the undertaking 
of any action which might violate this part governing the conduct of 
Commissioners or employees.



Sec. 7.5  Reporting suspected violations.

    (a) Personnel who have information which causes them to believe that 
there has been a violation of a statute or policy set forth in this part 
should promptly report such incident to the Ethics Officer. If a report 
is made orally, the Ethics Officer shall require a written report from 
the complainant before proceeding further.
    (b) When information available to the Commission indicates a 
conflict between the interests of an employee or special Commission 
employee and the performance of his or her Commission duties, the 
employee or special Commission employee shall be provided an opportunity 
to explain the conflict or appearance of conflict in writing.



Sec. 7.6  Disciplinary and other remedial action.

    (a) A violation of this part by an employee or special Commission 
employee

[[Page 33]]

may be cause for appropriate disciplinary action which may be in 
addition to any penalty prescribed by law.
    (b) When the Ethics Officer determines that an employee may have or 
appears to have a conflict of interest, the Ethics Officer, the 
employee's supervisor, the employee's division head, and the Staff 
Director or General Counsel may question the employee in the matter and 
gather other information. The Ethics Officer, the employee's supervisor, 
the employee's division head, and the Staff Director or General Counsel 
shall discuss with the employee possible ways of eliminating the 
conflict or appearance of conflict. If the Ethics Officer, after 
consultation with the employee's supervisor, the employee's division 
head, and the Staff Director or General Counsel, concludes that remedial 
action should be taken, he or she shall refer a statement to the 
Commission containing his or her recommendation for such action. The 
Commission, after consideration of the employee's explanation and the 
results of any investigation, may direct appropriate remedial action as 
it deems necessary.
    (c) Remedial action pursuant to paragraph (b) of this section may 
include, but is not limited to:
    (1) Changes in assigned duties;
    (2) Divestment by the employee of his or her conflicting interest;
    (3) Disqualification for a particular action; or
    (4) Disciplinary action.



  Subpart B--Conduct and Responsibilities of Employees or Commissioners



Sec. 7.7  Prohibited conduct--General.

    A Commissioner or employee shall avoid any action whether or not 
specifically prohibited by this subpart which might result in, or create 
the appearance of:
    (a) Using public office for unlawful private gain;
    (b) Giving favorable or unfavorable treatment to any person or 
organization due to any partisan, political, or other consideration;
    (c) Impeding Government efficiency or economy;
    (d) Losing independence or impartiality;
    (e) Making a Government decision outside official channels; or
    (f) Affecting adversely the confidence of the public in the 
integrity of the Government.



Sec. 7.8  Gifts, entertainment, and favors.

    (a) A Commissioner or employee of the Federal Election Commission 
shall not solicit or accept, directly or indirectly, any gift, gratuity, 
favor, entertainment, loan, or any other thing of monetary value, from a 
person who:
    (1) Has, or is seeking to obtain, contractual or other business or 
financial relations with the Commission;
    (2) Conducts operations or activities that are regulated or examined 
by the Commission; or
    (3) Has interests that may be substantially affected by the 
performance or nonperformance of the Commissioner or employee's official 
duty.
    (b) Paragraph (a) of this section shall not apply:
    (1) Where obvious family or personal relationships govern when the 
circumstances make it clear that it is those relationships rather than 
the business of the persons concerned which are the motivating factors;
    (2) To the acceptance of food, refreshments, and accompanying 
entertainment of nominal value in the ordinary course of a social 
occasion or a luncheon or dinner meeting or other function where a 
Commissioner or an employee is properly in attendance;
    (3) To the acceptance of unsolicited advertising or promotional 
material or other items of nominal intrinsic value such as pens, 
pencils, note pads, calendars; and
    (4) To the acceptance of loans from banks or other financial 
institutions on customary terms to finance proper and usual activities, 
such as home mortgage loans.
    (c) A Commissioner or an employee shall not solicit a contribution 
from another employee for a gift to an official superior, make a 
donation as a gift to an official superior, or accept a gift from an 
employee receiving less pay than himself or herself. However, this

[[Page 34]]

paragraph does not prohibit a voluntary gift of nominal value or 
donation in a nominal amount made on a special occasion such as 
birthday, holiday, marriage, illness, or retirement.
    (d) A Commissioner or employee shall not accept a gift, present, 
decoration, or other thing from a foreign government unless authorized 
by Congress as provided by the Constitution and in section 7342 of title 
5, United States Code.
    (e) Neither this section nor 11 CFR 7.7 precludes a Commissioner or 
employee from receipt of a bona fide reimbursement, unless prohibited by 
law, for expenses of travel and such other necessary subsistence as is 
compatible with this part for which no Government payment or 
reimbursement is made. However, this section does not allow an employee 
or Commissioner to be reimbursed, or payment to be made on his or her 
behalf, for excessive personal living expenses, gifts, entertainment, or 
other personal benefits, nor does it allow an employee to be reimbursed 
by a person for travel on official business under agency orders when 
reimbursement is proscribed by Decision B-128527 of the Comptroller 
General dated March 7, 1967 (46 Comp. Gen. 689).



Sec. 7.9  Outside employment or activities.

    (a) A member of the Commission shall not devote a substantial 
portion of his or her time to any other business, vocation, or 
employment. Any individual who is engaging substantially in any other 
business, vocation, or employment at the time such individual begins to 
serve as a member of the Commission shall appropriately limit such 
activity no later than 90 days after beginning to serve as such a 
member.
    (b) An employee shall not engage in outside employment that is not 
compatible with the full discharge of his or her Government employment 
and not in compliance with any labor-management agreement between the 
Federal Election Commission and a labor organization. Incompatible 
outside employment or other activities include but are not limited to:
    (1) Outside employment or other activities which would involve the 
violation of a Federal or State statute, local ordinance, Executive 
Order, or regulation to which the employee is subject;
    (2) Outside employment or other activities which would give rise to 
a real or apparent conflict of interest situation even though no 
violation of a specific statutory provision was involved;
    (3) Acceptance of a fee, compensation, gift, payment of expense, or 
any other thing of monetary value in circumstances where acceptance may 
result in, or create the appearance of, a conflict of interest;
    (4) Outside employment or other activities that might bring 
discredit upon the Government or Commission;
    (5) Outside employment or other activities that establish 
relationships or property interests that may result in a conflict 
between the employee's private interests and official duties;
    (6) Outside employment or other activities which would involve any 
contractor or subcontractor connected with any work performed for the 
Commission or would involve any person or organization in a position to 
gain advantage in its dealings with the Government through the 
employee's exercise of his or her official duties;
    (7) Outside employment of other activities that may be construed by 
the public to be the official acts of the Federal Election Commission. 
In any permissible outside employment, care shall be taken to ensure 
that names and titles of employees are not used to give the impression 
that the activity is officially endorsed or approved by the Commission 
or is part of the Commission's activities;
    (8) Outside employment or other activities which would involve use 
by an employee of his or her official duty time; use of official 
facilities, including office space, machines, or supplies, at any time; 
or use of the services of other employees during their official duty 
hours;
    (9) Outside employment or other activities which tend to impair the 
employee's mental or physical capacities to perform Commission duties 
and responsibilities in an acceptable manner; or
    (10) Use of information obtained as a result of Government 
employment which is not freely available to the general public or would 
not be made

[[Page 35]]

available upon request. However, written authorization for the use of 
any such information may be given when the Commission determines that 
such use would be in the public interest.
    (c) An employee shall not receive any salary or anything of monetary 
value from a private source as compensation for his or her services to 
the Government in violation of 18 U.S.C. 209.
    (d) Employees are encouraged to engage in teaching, lecturing, and 
writing that is not prohibited by law, Executive Order 11222, or this 
part. However, an employee shall not, either for or without 
compensation, engage in teaching or writing that is dependent on 
information obtained as a result of his or her Commission employment, 
except when that information has been made available to the general 
public or will be made available on request, or when the Commission 
gives written authorization for the use of nonpublic information on the 
basis that the use is in the public interest.
    (e) This section does not preclude an individual from participation 
in the affairs of or acceptance of an award for meritorious public 
contribution or achievement given by a charitable, religious, 
professional, social, fraternal, nonprofit educational, recreational, 
public service or civic organization.
    (f) An employee of the Office of General Counsel who intends to 
engage in outside employment shall obtain the approval of the General 
Counsel/Ethics Officer. All other employees who intend to engage in 
outside employment shall obtain the approval of the Staff Director prior 
to review and approval by the Ethics Officer. The request shall include 
the name of the person, group, or organization for whom the work is to 
be performed, the nature of the services to be rendered, the proposed 
hours of work, or approximate dates of employment, and the employee's 
certification as to whether the outside employment (including teaching, 
writing or lecturing) will depend in any way on information obtained as 
a result of the employee's official Government position. The employee 
will receive notice of approval or disapproval of any written request in 
accordance with any labor-management agreement between the Commission 
and a labor organization. A record of the approval shall be placed in 
each employee's official personnel folder.



Sec. 7.10  Financial interests.

    (a)(1) A Commissioner or employee shall not engage in, directly or 
indirectly, a financial transaction as a result of, or primarily relying 
on, information obtained through his or her Commission employment.
    (2) A Commissioner or employee shall not have a direct or indirect 
financial interest that conflicts substantially, or appears to conflict 
substantially, with his or her Commission duties and responsibilities, 
except in cases where the Commissioner or employee makes full 
disclosure, and the Commissioner or employee disqualifies himself or 
herself from participating in any decisions, approval, disapproval, 
recommendation, the rendering of advice, investigation, or otherwise in 
any proceeding of the Commission in which the financial interest is or 
appears to be affected. The filing of public financial disclosure 
reports will constitute full disclosure for all individuals who are 
required to file such reports pursuant to the Ethics in Government Act. 
Until such time as the extent, shape and form of confidential financial 
disclosure reports required of employees by the Ethics in Government Act 
has been determined, full disclosure by an employee will require that 
that employee submit a written statement to the Ethics Officer 
disclosing the particular financial interest which conflicts 
substantially, or appears to conflict substantially, with the employee's 
duties and responsibilities.
    (3) A Commissioner or employee should disqualify himself or herself 
from a proceeding in which his or her impartiality might reasonably be 
questioned where the Commissioner or employee knows that he or she, or 
his or her spouse, has an interest in the subject matter in controversy 
or is a party to the proceeding, or any other interest that could be 
substantially affected by the outcome of the proceeding.
    (b) This section does not preclude a Commissioner or employee from 
having a financial interest or engaging in financial transactions to the 
same extent as a private citizen not employed

[[Page 36]]

by the Government provided that the activity is not prohibited by law, 
Executive Order 11222, or Commission regulations.



Sec. 7.11  Political and organization activity.

    (a) Due to the Federal Election Commission's role in the political 
process, the following restrictions on political activities are required 
in addition to those imposed by the Hatch Act (5 U.S.C. 7324 et seq.):
    (1) No Commissioner or employee should publicly support a candidate, 
political party, or political committee subject to the jurisdiction of 
the Commission. No Commissioner or employee should work for a candidate, 
political party or political committee subject to the jurisdiction of 
the Commission. Commissioners and employees should be aware that 
contributing to candidates, political parties, or political committees 
subject to the jurisdiction of the Commission is likely to result in a 
conflict of interest.
    (2) No Commissioner or employee shall display partisan buttons, 
badges or other insignia on Commission premises.
    (b) Special Government employees are subject to the restrictions 
contained in this section for the entire 24 hours of any day on which 
the employee is on active duty status.
    (c) Employees on leave, leave without pay, or on furlough or 
terminal leave, even though the employees' resignations have been 
accepted, are subject to the restrictions of this section. A separated 
employee who has received a lump-sum payment for annual leave, however, 
is not subject to the restrictions during the period covered by the 
lump-sum payment or thereafter, provided he or she does not return to 
Federal employment during that period. An employee is not permitted to 
take a leave of absence to work with a political candidate, committee, 
or organization or become a candidate for office despite any 
understanding that he or she will resign his or her position if 
nominated or elected.
    (d) An employee is accountable for political activity by another 
person acting as his or her agent or under the employee's direction or 
control if the employee is thus accomplishing what he or she may not 
lawfully do directly and openly.



Sec. 7.12  Membership in associations.

    Commissioners or employees who are members of nongovernmental 
associations or organizations shall avoid activities on behalf of those 
associations or organizations that are incompatible with their official 
governmental positions.



Sec. 7.13  Use of Government property.

    A Commission or employee shall not directly or indirectly use, or 
allow the use of, Government property of any kind, including property 
leased to the Government, for other than officially approved activities. 
Commissioners and employees have a positive duty to protect and conserve 
Government property including equipment, supplies, and other property 
entrusted or issued to him or her.



Sec. 7.14  Prohibition against making complaints and investigations public.

    (a) Commission employees are warned that they are subject to 
criminal penalties if they discuss or otherwise make public any matters 
pertaining to a complaint or investigation under 2 U.S.C. 437g, without 
the written permission of the person complained against or being 
investigated. Such communications are prohibited by 2 U.S.C. 
437g(a)(12)(A).
    (b) 2 U.S.C. 437g(a)(12)(B) provides as follows: ``Any member or 
employee of the Commission or any other person, who violates the 
provisions of subparagraph (A) shall be fined not more than $2,000. Any 
such member, employee, or other person who knowingly and willfully 
violates this subsection shall be fined not more than $5,000.''



Sec. 7.15  Ex parte communications.

    In order to avoid the possibility of prejudice, real or apparent, to 
the public interest in enforcement actions pending before the Commission 
pursuant to 2 U.S.C. 437g(A) (1) or (2):
    (a) Except to the extent required for the disposition of ex parte 
matters as

[[Page 37]]

required by law (as, for example, during the normal course of an 
investigation or a conciliation effort), no Commissioner or employee 
involved in the decisional process shall make or entertain any ex parte 
communications.
    (b) The prohibition of this section shall apply from the time a 
complaint is filed with the Commission pursuant to 2 U.S.C. 437(a)(1) or 
from the time that the Commission determines on the basis of information 
ascertained in the normal course of its supervisory responsibilities 
that it has reason to believe that a violation has occurred or may occur 
pursuant to 2 U.S.C. 437g(a)(2), and shall remain in force until the 
Commission has concluded all action with respect to the enforcement 
matter in question.
    (c) Any written communication prohibited by paragraph (a) of this 
section shall be delivered to the Ethics Officer of the Commission who 
shall place the communication in the file of the case.
    (d) A Commissioner or employee, other than the employee assigned to 
the case, involved in handling enforcement actions who receives an oral 
offer or any communication concerning any enforcement action pending 
before the Commission as described in paragraph (a) of this section 
shall decline to listen to such communication. If unsuccessful in 
preventing the communication, the Commissioner or employee shall advise 
the person making the communication that he or she will not consider the 
communication and shall prepare a statement setting forth the substance 
and circumstances of the communication within 48 hours of receipt of the 
communication and shall deliver the statement to the Ethics Officer for 
placing in the file in the manner set forth in paragraph (c) of this 
section.



Sec. 7.16  Miscellaneous statutory provisions.

    Each employee shall acquaint himself or herself with each statute 
that relates to his or her ethical and other conduct as an employee of 
the Commission and of the Government. In particular, the attention of 
employees is directed to the following statutory provisions:
    (a) Chapter 11 of title 18, United States Code, relating to bribery, 
graft, and conflicts of interest, as appropriate to the employees 
concerned.
    (b) The prohibition of 18 U.S.C. 1913 against lobbying with 
appropriated funds.
    (c) The prohibitions of 5 U.S.C. 7311 and 18 U.S.C. 1918 against 
disloyalty and striking.
    (d) The prohibition of 50 U.S.C. 784 against the employment of a 
member of a Communist organization.
    (e) The prohibitions against (1) the disclosure of classified 
information under 18 U.S.C. 798 and 50 U.S.C. 782 and (2) the disclosure 
of confidential business information under 18 U.S.C. 1905.
    (f) The provisions of 5 U.S.C. 7352 relating to the habitual use of 
intoxicants to excess.
    (g) The prohibition of 31 U.S.C. 638a(c) against the misuse of a 
Government vehicle.
    (h) The prohibition of 18 U.S.C. 1719 against the misuse of the 
franking privilege.
    (i) The prohibition of 18 U.S.C. 1917 against the use of deceit in 
an examination or personnel action in connection with Government 
employment.
    (j) The prohibition of 18 U.S.C. 1001 against fraud or false 
statements in a Government matter.
    (k) The prohibition of 18 U.S.C. 2071 against mutilating or 
destroying a public record.
    (l) The prohibition of 18 U.S.C. 508 against counterfeiting and 
forging transportion requests.
    (m) The prohibitions against
    (1) Embezzlement of Government money or property under 18 U.S.C. 
641;
    (2) Failing to account for public money under 18 U.S.C. 643; and
    (3) Embezzlement of the money or property of another person in the 
possession of an employee by reason of his or her employment under 18 
U.S.C 654.
    (n) The prohibition of 18 U.S.C. 285 against unauthorized use of 
documents relating to claims from or by the Government.
    (o) The prohibitions against political activities in subchapter III 
of chapter 73 of title 5, United States Code, and 18 U.S.C 602, 603, 
607, and 608.

[[Page 38]]

    (p) The prohibition of 18 U.S.C. 219 against an employee acting as 
the agent of a foreign principal registered under the Foreign Agents 
Registration Act.
    (q) The prohibition of 18 U.S.C. 207 against certain activities of 
departing and former employees.
    (r) The prohibition of 18 U.S.C. 208 against certain acts affecting 
a personal financial interest.



 Subpart C--Conduct and Responsibilities of Special Commission Employees



Sec. 7.17  Use of Commission employment.

    A special Commission employee shall not use his or her Commission 
employment for a purpose that is, or gives the appearance of being, 
motivated by a desire for unlawful private gain for himself or herself, 
or for another person, particularly one with whom the employee has 
family, business or financial ties.



Sec. 7.18  Use of inside information.

    (a) A special Commission employee shall not use inside information 
obtained as a result of his or her Commission employment for unlawful 
private gain for himself or herself, or for another person, either by 
direct action on the employee's part or by counsel, recommendation, or 
suggestion to another person, particularly one with whom the employee 
has family, business, or financial ties. For the purpose of this 
section, inside information means information obtained under Commission 
authority which has not become part of the body of public information.
    (b) A special Commission employee may teach, lecture, or write in a 
manner consistent with 11 CFR 7.9 (d) and (e).



Sec. 7.19  Coercion.

    A special Commission employee shall not use his or her Commission 
employment to coerce, or give the appearance of coercing, a person to 
provide unlawful financial benefit to himself or herself or to another 
person, particularly one with whom the employee has family, business, or 
financial ties.



Sec. 7.20  Gifts, entertainment, and favors.

    Except as provided at 11 CFR 7.8(b), a special Commission employee, 
while so employed or in connection with his or her employment, shall not 
receive or solicit from a person having business with the Commission 
anything of value such as a gift, gratuity, loan, entertainment, or 
favor for himself or herself, or for another person, particularly one 
with whom the employee has family, business, or financial ties.



Sec. 7.21  Miscellaneous statutory provisions.

    Each special Commission employee shall acquaint himself or herself 
with each statute that relates to his or her ethical or other conduct as 
a special Commission employee. Particular attention should be directed 
to the statutory provisions listed in 11 CFR 7.16.



    Subpart D--Post Employment Conflict of Interest: Procedures for 
                 Administrative Enforcement Proceedings



Sec. 7.22  Scope.

    The following are procedures to be followed by the Federal Election 
Commission in investigating and administratively correcting violations 
of the post employment conflict of interest provisions contained in 18 
U.S.C. 207 (a), (b), and (c), which restrict activities of former 
employees, including former special Commission employees, which might 
give the appearance of undue benefit based on prior Commission 
employment and affiliation. Where appropriate for purposes of this 
subpart, former special Commission employee shall be defined in 
accordance with 18 U.S.C. 207(c)(1).



Sec. 7.23  Initiation of investigation.

    (a) Filing of complaint. (1) Any person who believes a former 
employee has violated the post employment conflict of interest 
provisions of 18 U.S.C. 207 (a), (b), or (c), or 5 CFR part 737 may file 
a signed complaint with the Ethics Officer.
    (2) The Ethics Officer, within five days after receipt of the 
complaint, shall send a copy of the complaint by certified mail to the 
former employee

[[Page 39]]

named in the complaint. The former employee may, within ten days after 
receipt of the complaint, submit any written legal or factual materials 
he or she believes demonstrate that the complaint should be dismissed on 
its face.
    (b) Review of complaint. (1) The Ethics Officer will review the 
complaint and any materials submitted by the former employee, and will 
prepare a report to the Commission recommending whether the complaint 
should be investigated or should be dismissed on its face.
    (2) If the Commission, by an affirmative vote of four members, finds 
that the complaint appears to be substantiated, it may order an 
investigation of the allegations made in the complaint.
    (i) Except as may be required to coordinate with the Department of 
Justice under 11 CFR 7.23(b)(2)(iii) any investigation conducted under 
this section shall be kept confidential until such time as the 
Commission has determined whether there is reasonable cause to believe a 
violation has occurred.
    (ii) The Ethics Officer shall notify the Director of the Office of 
Government Ethics and the Criminal Division of the Department of Justice 
of the Commission's finding that the complaint has merit. The 
notification shall contain a copy of the complaint, any materials 
submitted by the former employee, the Ethics Officer's report, and the 
certification of the Commission's action.
    (iii) The Commission will coordinate any investigation or 
administrative action with the Department of Justice to avoid 
prejudicing criminal proceedings, unless the Department of Justice 
notifies the Commission that it does not intend to initiate criminal 
proceedings.
    (3) If the Commission finds the complaint to be unfounded, no 
investigation will be conducted and both the complainant and the former 
employee will be notified by the Ethics Officer of the Commission's 
finding.



Sec. 7.24  Conduct of preliminary investigation.

    (a) Ethics Officer's responsibility. Upon a finding under 11 CFR 
7.23(b)(2) that a complaint appears to be substantiated, the Ethics 
Officer shall conduct an investigation into the allegations of the 
complaint.
    (b) Opportunity to respond. The former employee will be sent a copy 
of the Ethics Officer's report and will be given an opportunity to 
respond in writing and under oath to the allegations made in the 
complaint and the findings made in the report. The former empoloyee may 
provide any written legal or factual materials he or she believes 
demonstrate that no violation has occurred. Such response must be 
received by the Commission within 20 days after the former employee's 
receipt of the Ethics Officer's report, unless an extension is 
authorized in writing by the Ethics Officer.
    (c) Representation by counsel. The former employee may be 
represented by counsel during the investigation. Such counsel shall 
notify the Ethics Officer in writing that he or she is representing the 
former employee. Thereafter, all communications between the Commission 
staff and the former employee relating to the investigation shall be 
made to the former employee's counsel.
    (d) Report to the Commission. Upon completion of the investigation, 
the Ethics Officer shall prepare a report to the Commission, including 
any materials provided by the former employee. The report shall 
recommend whether there is reasonable cause to believe the respondent 
has violated 18 U.S.C. 207 (a), (b), or (c).



Sec. 7.25  Initiation of administrative disciplinary proceeding.

    (a) Commission review of report. The Commission shall review the 
Ethics Officer's investigative report in Executive Session.
    (b) Reasonable cause to believe finding. If the Commission, by an 
affirmative vote of four members, determines there is reasonable cause 
to believe a violation has occurred, it shall initiate an administrative 
disciplinary proceeding by providing the former employee with the notice 
defined in 11 CFR 7.26.
    (c) No reasonable cause to believe finding. If the Commission 
determines that there is no reasonable cause to believe a violation has 
occurred, it will close

[[Page 40]]

its file on the matter and take no further action. The Commission shall 
notify the Director of the Office of Government Ethics, the Criminal 
Division of the Department of Justice, the complainant, and the former 
employee of its determination. Included in this notification will be a 
statement of reasons for the Commission's determination.



Sec. 7.26  Notice to former employee.

    (a) Notice requirement. After a reasonable cause to believe finding 
the Ethics Officer shall provide the former Commission employee with 
adequate notice of an intention to institute a disciplinary proceeding 
and an opportunity to request a hearing.
    (b) Contents. The notice required under this section shall contain:
    (1) A statement of the allegations (and the basis thereof);
    (2) Notification of the right to request a hearing;
    (3) An explanation of the method by which a hearing may be requested 
as set forth at 11 CFR 7.26(c); and
    (4) A copy of the post-employment regulations.
    (c) Request for hearing. (1) A former employee who has received a 
notice under this section must notify the Commission with ten days after 
receipt of such notice by certified mail of his or her desire for a 
hearing. The request for a hearing should include the following 
information:
    (i) The former employee's daytime telephone number;
    (ii) The name, address, and telephone number of the former 
employee's counsel, if he or she intends to be represented by counsel; 
and
    (iii) At least three dates and times at which the former employee 
will be available for a hearing.
    (2) If a written request from the former employee is not received by 
the Ethics Officer within the stated time period, the right to a hearing 
shall be waived and the examiner (See 11 CFR 7.27) shall consider the 
evidence and make a decision.



Sec. 7.27  Hearing examiner designation and qualifications.

    (a) Designation. If the Commission decides by an affirmative vote of 
four of its members to hold a hearing, the Ethics Officer shall 
designate an individual to serve as examiner at the administrative 
disciplinary hearing. In the absence of a hearing, the Ethics Officer 
shall designate an examiner to consider the written evidence and make a 
decision. (See 11 CFR 7.26(b)(2)). The individual designated as examiner 
shall have the qualifications set forth in paragraph (b) of this 
section.
    (b) Qualifications. (1) An examiner shall be impartial. No 
individual who has participated in any manner in the decision to 
initiate the proceeding may serve as an examiner in those proceedings. 
Therefore, the following persons may not be designated as an examiner:
    (i) A Commissioner,
    (ii) The Ethics Officer, or
    (iii) Any Commission employee who has participated in the 
preliminary investigation of the complaint.
    (2) The examiner shall be an attorney at the Assistant General 
Counsel level or higher.



Sec. 7.28  Hearing date.

    (a) Setting of date by examiner. The examiner shall set the hearing 
at a reasonable time, date, and place.
    (b) Considerations. Whenever practicable, the examiner shall choose 
a time and date from the list submitted by the former employee in the 
request for a hearing. In setting a hearing date, the examiner shall 
give due regard to the former employee's need for:
    (1) Adequate time to prepare a defense properly, and
    (2) An expeditious resolution of allegations that may be damaging to 
his or her reputation.



Sec. 7.29  Hearing rights of former employee.

    A hearing conducted under these procedures shall afford the former 
employee the following rights:
    (a) To represent oneself or to be represented by counsel,
    (b) To introduce and examine witnesses and to submit physical 
evidence,
    (c) To confront and cross-examine adverse witnesses,
    (d) To present oral argument, and
    (e) To request a transcript of the recording of proceedings. The 
requester

[[Page 41]]

will be charged according to the fee schedule set out at 11 CFR 5.6.



Sec. 7.30  Hearing procedures.

    (a) Witness lists. (1) No later than 10 days prior to the hearing 
date, the Ethics Officer will provide the former employee with a list of 
the witnesses the Commission intends to introduce. The list shall 
include the name and position of each witness and the aspect of the 
allegation upon which the witness is expected to testify. If no 
witnesses are to be called, the former employee shall be so notified.
    (2) No later than 5 days prior to the hearing date, the former 
employee shall provide the Ethics Officer with a list of witnesses he or 
she intends to introduce. The list shall include the name and position 
of each witness and the aspect of the allegation upon which the witness 
is expected to testify. If no witnesses are to be called, the Ethics 
Officer shall be so notified.
    (3) Copies of the witness lists shall be given to the examiner by 
the Ethics Officer.
    (b) Representation. (1) The Commission shall be represented at the 
hearing by the Ethics Officer or his or her designee,
    (2) The former employee may represent himself or herself or may be 
represented by counsel.
    (c) Burden of proof. The burden of proof shall be on the Commission 
which must establish substantial evidence of a violation.
    (d) Conduct of hearing. (1) The following items will be introduced 
by the Commission and will be made part of the hearing record:
    (i) The complaint;
    (ii) The notification sent to the former employee under 11 CFR 7.27;
    (iii) The former employee's response to the notification; and
    (iv) If the Commission so chooses, a brief or memorandum of law.
    (2) The former employee will then be given an opportunity to submit 
a brief or memorandum of law to be included in the hearing record.
    (3) The Commission shall introduce its witnesses and evidence first. 
At the close of the Commission's examination of each witness, the former 
employee will be given an opportunity to cross-examine the witness.
    (4) The former employee will present his or her witnesses and 
evidence at the close of the Commission's presentation. At the close of 
the former employee's examination of each witness, the Commission shall 
be given an opportunity to cross-examine each witness.
    (5) After the former employee has completed his or her presentation, 
both parties will be given an opportunity for oral argument with the 
Commission making its arguments first. Time shall be offered during the 
oral argument for Commission rebuttal.
    (6) Decisions as to the admissibility of evidence or testimony shall 
be made under the Federal Rules of Evidence.



Sec. 7.31  Examiner's decision.

    (a) Initial determination. No later than 15 days after the close of 
the hearing, the examiner shall make a determination exclusively on 
matters of record in the proceeding.
    (b) Form of determination. The examiner's determination shall set 
forth all findings of fact and conclusions of law relevant to the 
matters at issue.
    (c) Copies. The examiner shall provide copies of his or her 
determination to the former employee, the complainant, the Ethics 
Officer, and the Commission.



Sec. 7.32  Appeal.

    (a) Right of appeal. Within ten days after receipt by certified mail 
of the examiner's decision, either party may appeal such decision to the 
members of the Commission by filing a notice of appeal with the 
Chairman.
    (b) Notice of appeal. The notice of appeal shall be accompanied by a 
memorandum setting forth the legal and factual reasons why the 
examiner's decision should be reversed or modified.
    (c) Commission review of appeal. The Commission, by an affirmative 
vote of four members, may affirm, modify, or reverse the examiner's 
decision. The Commission's decision shall be based solely on the hearing 
record or those portions thereof cited by the parties to limit the 
issues.
    (d) Commission statement on appeal. If the Commission modifies or 
reverses

[[Page 42]]

the initial decision, it shall specify such findings of fact or 
conclusions of law as are different from those of the examiner.



Sec. 7.33  Administrative sanctions.

    The Commission may take appropriate disciplinary action in the case 
of any individual who is found in violation of 18 U.S.C. 207 (a), (b), 
or (c) after a final administrative hearing, or in the absence of a 
hearing, after adequate notice such as by:
    (a) Prohibiting the individual from making, on behalf of any person 
(except the United States), any formal or informal appearance before, 
or, with the intent to influence, any oral or written communication to 
the Commission on any matter of business for a period not to exceed five 
years, which may be accomplished by directing agency employees to refuse 
to participate in any such appearance or to accept any such 
communication;
    (b) Issuing a letter of reprimand;
    (c) Issuing a letter of admonishment;
    (d) Prohibiting a former employee from making formal or informal 
appearances or communications in connection with a particular matter or 
on behalf of a particular party.
    (e) Taking other appropriate disciplinary action.



PART 8--NATIONAL VOTER REGISTRATION ACT (42 U.S.C. 1973gg-1 et seq.)--Table of Contents




                      Subpart A--General Provisions

Sec.
8.1  Purpose & scope.
8.2  Definitions.

            Subpart B--National Mail Voter Registration Form

8.3  General Information.
8.4  Contents.
8.5  Format.
8.6  Chief state election official.

                 Subpart C--Recordkeeping and Reporting

8.7  Contents of reports from the states.

    Authority: 42 U.S.C. 1973gg-1 et seq.

    Source: 59 FR 32323, June 23, 1994, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 8.1  Purpose & scope.

    The regulations in this part implement the responsibilities 
delegated to the Commission under Section 9 of the National Voter 
Registration Act of 1993, Public Law 103-31, 97 Stat. 77, 42 U.S.C. 
1973gg-1 et seq. (``NVRA''). They describe the format and contents of 
the national mail voter registration form and the information that will 
be required from the states for inclusion in the Commission's biennial 
report to Congress.



Sec. 8.2  Definitions.

    As used in this part:
    (a) Form means the national mail voter registration application 
form, which includes the registration application, accompanying general 
instructions for completing the application, and state-specific 
instructions.
    (b) Chief state election official means the designated state officer 
or employee responsible for the coordination of state responsibilities 
under 42 U.S.C. 1973gg-8.
    (c) Active voters means all registered voters except those who have 
been sent but have not responded to a confirmation mailing sent in 
accordance with 42 U.S.C. 1973gg-6(d) and have not since offered to 
vote.
    (d) Inactive voters means registrants who have been sent but have 
not responded to a confirmation mailing sent in accordance with 42 
U.S.C. 1973gg-6(d) and have not since offered to vote.
    (e) Duplicate registration application means an offer to register by 
a person already registered to vote at the same address, under the same 
name, and (where applicable) in the same political party.
    (f) State means a state of the United States and the District of 
Columbia not exempt from coverage under 42 U.S.C. 1973gg-2(b).
    (g) Closed primary state means a state that requires party 
registration as a precondition to vote for partisan races in primary 
elections or for other nominating procedures.

[[Page 43]]



            Subpart B--National Mail Voter Registration Form



Sec. 8.3  General information.

    (a) The national mail voter registration form shall consist of three 
components: An application, which shall contain appropriate fields for 
the applicant to provide all of the information required or requested 
under 11 CFR 8.4; general instructions for completing the application; 
and accompanying state-specific instructions.
    (b) The state-specific instructions shall contain the following 
information for each state, arranged by state: the address where the 
application should be mailed and information regarding the state's 
specific voter eligibility and registration requirements.
    (c) States shall accept, use, and make available the form described 
in this section.



Sec. 8.4  Contents.

    (a) Information about the applicant.
    The application shall provide appropriate fields for the 
applicant's:
    (1) Last, first, and middle name, any suffix, and (optional) any 
prefix;
    (2) Address where the applicant lives including: street number and 
street name, or rural route with a box number; apartment or unit number; 
city, town, or village name; state; and zip code; with instructions to 
draw a locational map if the applicant lives in a rural district or has 
a non-traditional residence, and directions not to use a post office box 
or rural route without a box number;
    (3) Mailing address if different from the address where the 
applicant lives, such as a post office box, rural route without a box 
number, or other street address; city, town, or village name; state; and 
zip code;
    (4) Month, day, and year of birth;
    (5) Telephone number (optional); and
    (6) Voter identification number as required or requested by the 
applicant's state of residence for election administration purposes.
    (i) The application shall direct the applicant to consult the 
accompanying state-specific instructions to determine what type of voter 
identification number, if any, is required or requested by the 
applicant's state.
    (ii) For each state that requires the applicant's full social 
security number as its voter identification number, the state's Privacy 
Act notice required at 11 CFR 8.6(c) shall be reprinted with the 
instructions for that state.
    (7) Political party preference, for an applicant in a closed primary 
state.
    (i) The application shall direct the applicant to consult the 
accompanying state-specific instructions to determine if the applicant's 
state is a closed primary state.
    (ii) The accompanying instructions shall state that if the applicant 
is registering in a state that requires the declaration of party 
affiliation, then failure to indicate a political party preference, 
indicating ``none'', or selecting a party that is not recognized under 
state law may prevent the applicant from voting in partisan races in 
primary elections and participating in political party caucuses or 
conventions, but will not bar an applicant from voting in other 
elections.
    (8) Race/ethnicity, if applicable for the applicant's state of 
residence. The application shall direct the applicant to consult the 
state-specific instructions to determine whether race/ethnicity is 
required or requested by the applicant's state.
    (b) Additional information required by the Act. (42 U.S.C. 1973gg-
7(b) (2) and (4)). The form shall also:
    (1) Specify each eligibility requirement (including citizenship). 
The application shall list U.S. Citizenship as a universal eligibility 
requirement and include a statement that incorporates by reference each 
state's specific additional eligibility requirements (including any 
special pledges) as set forth in the accompany state instructions;
    (2) Contain an attestation on the application that the applicant, to 
the best of his or her knowledge and belief, meets each of his or her 
state's specific eligibility requirements;
    (3) Provide a field on the application for the signature of the 
applicant, under penalty of perjury, and the date of the applicant's 
signature;
    (4) Inform an applicant on the application of the penalties provided 
by law for submitting a false voter registration application;

[[Page 44]]

    (5) Provide a field on the application for the name, address, and 
(optional) telephone number of the person who assisted the applicant in 
completing the form if the applicant is unable to sign the application 
without assistance;
    (6) State that if an applicant declines to register to vote, the 
fact that the applicant has declined to register will remain 
confidential and will be used only for voter registration purposes; and
    (7) State that if an applicant does register to vote, the office at 
which the applicant submits a voter registration application will remain 
confidential and will be used only for voter registration purposes.
    (c) Other information. The form will, if appropriate, require an 
applicant's former address or former name or request a drawing of the 
area where the applicant lives in relation to local landmarks.

[59 FR 32323, June 23, 1994; 59 FR 40639, Aug. 9, 1994]



Sec. 8.5  Format.

    (a) The application shall conform to the technical specifications 
described in the Federal Election Commission's National Mail Voter 
Registration Form Technical Specifications.
    (b) Size. The application shall consist of a 5" by 8" application 
card of sufficient stock and weight to satisfy postal regulations. The 
application card shall be attached by a perforated fold to another 5" by 
8" card that contains space for the information set forth at 11 CFR 
8.4(c).
    (c) Layout. (1) The application shall be sealable.
    (2) The outside of the application shall contain an appropriate 
number of address lines to be completed by the applicant using the state 
information provided.
    (3) Both sides of the application card shall contain space 
designated ``For Official Use Only.''
    (d) Color. The application shall be of ink and paper colors of 
sufficient contrast to permit for optical scanning capabilities.
    (e) Signature field. The application shall contain a signature field 
in lieu of a signature line.
    (f) Type size. (1) All print on the form shall be of the largest 
practicable type size.
    (2) The requirements on the form specified in 11 CFR 8.4(b)(1), (6), 
and (7) shall be in print identical to that used in the attestation 
portion of the application required by 11 CFR 8.4(b)(2).



Sec. 8.6  Chief state election official.

    (a) Each chief state election official shall certify to the 
Commission within 30 days after July 25, 1994:
    (1) All voter registration eligibility requirements of that state 
and their corresponding state constitution or statutory citations, 
including but not limited to the specific state requirements, if any, 
relating to minimum age, length of residence, reasons to disenfranchise 
such as criminal conviction or mental incompetence, and whether the 
state is a closed primary state.
    (2) Any voter identification number that the state requires or 
requests; and
    (3) Whether the state requires or requests a declaration of race/
ethnicity;
    (4) The state's deadline for accepting voter registration 
applications; and
    (5) The state election office address where the application shall be 
mailed.
    (b) If a state, in accordance with 11 CFR 8.4(a)(2), requires the 
applicant's full social security number, the chief state election 
official shall provide the Commission with the text of the state's 
privacy statement required under the Privacy Act of 1974 (5 U.S.C. 552a 
note).
    (c) Each chief state election official shall notify the Commission, 
in writing, within 30 days of any change to the state's voter 
eligibility requirements or other information reported under this 
section.



                 Subpart C--Recordkeeping and Reporting



Sec. 8.7  Contents of reports from the states.

    (a) The chief state election official shall provide the information 
required under this section with the Commission by March 31 of each odd-
numbered year beginning March 31, 1995 on a form to be provided by the 
Commission. Reports shall be mailed to: National

[[Page 45]]

Clearinghouse on Election Administration, Federal Election Commission, 
999 E Street, NW., Washington DC 20463. The data to be reported in 
accordance with this section shall consist of applications or responses 
received up to and including the date of the preceding federal general 
election.
    (b) Except as provided in paragraph (c) of this section, the report 
required under this section shall include:
    (1) The total number of registered voters statewide, including both 
``active'' and ``inactive'' voters if such a distinction is made by the 
state, in the federal general election two years prior to the most 
recent federal general election;
    (2) The total number of registered voters statewide, including both 
``active'' and ``inactive'' voters if such a distinction is made by the 
state, in the most recent federal election;
    (3) The total number of new valid registrations accepted statewide 
between the past two federal general elections, including all 
registrations that are new to the local jurisdiction and re-
registrations across jurisdictional lines, but excluding all 
applications that are duplicates, rejected, or report only a change of 
name, address, or (where applicable) party preference within the local 
jurisdiction;
    (4) If the state distinguishes between ``active'' and ``inactive'' 
voters, the total number of registrants statewide that were considered 
``inactive'' at the close of the most recent federal general election;
    (5) The total number of registrations statewide that were, for 
whatever reason, deleted from the registration list, including both 
``active'' and ``inactive'' voters if such a distinction is made by the 
state, between the past two federal general elections;
    (6) The statewide number of registration applications received 
statewide (regardless of whether they were valid, rejected, duplicative, 
or address, name or party changes) that were received from or generated 
by each of the following categories:
    (i) All motor vehicle offices statewide;
    (ii) Mail;
    (iii) All public assistance agencies that are mandated as 
registration sites under the Act;
    (iv) All state-funded agencies primarily serving persons with 
disabilities;
    (v) All Armed Forces recruitment offices;
    (vi) All other agencies designated by the state;
    (vii) All other means, including but not limited to, in person, 
deputy registrars, and organized voter registration drives delivering 
forms directly to registrars;
    (7) The total number of duplicate registration applications 
statewide that, between the past two federal general elections were 
received in the appropriate election office and generated by each of the 
categories described in paragraphs (b)(6) (i) through (vii) of this 
section;
    (8) The statewide number of confirmation notices mailed out between 
the past two federal general elections and the statewide number of 
responses received to these notices during the same period;
    (9) Answers to a series of questions with categorical responses for 
the state to indicate which options or procedures the state has selected 
in implementing the NVRA or any significant changes to the state's voter 
registration program; and
    (10) Any additional information that would be helpful to the 
Commission for meeting the reporting requirement under 42 U.S.C. 1973gg-
7(a)(3).
    (c) For the State report due March 31, 1995, the chief state 
election official need only provide the information described in 
paragraph (b)(2) of this section and a brief narrative or general 
description of the state's implementation of the NVRA.

[59 FR 32323, June 23, 1994, as amended at 59 FR 64560, Dec. 15, 1994]

[[Page 46]]





                          SUBCHAPTER A--GENERAL





PART 100--SCOPE AND DEFINITIONS (2 U.S.C. 431)--Table of Contents




Sec.
100.1  Scope.
100.2  Election (2 U.S.C. 431(1)).
100.3  Candidate (2 U.S.C. 431(2)).
100.4  Federal office (2 U.S.C. 431(3)).
100.5  Political committee (2 U.S.C. 431 (4), (5), (6)).
100.6  Connected organization (2 U.S.C. 431(7)).
100.7  Contribution (2 U.S.C. 431(8)).
100.8  Expenditure (2 U.S.C. 431(9)).
100.9  Commission (2 U.S.C. 431(10)).
100.10  Person (2 U.S.C. 431(11)).
100.11  State (2 U.S.C. 431(12)).
100.12  Identification (2 U.S.C. 431(13)).
100.13  National committee (2 U.S.C. 431(14)).
100.14  State committee, subordinate committee (2 U.S.C. 431(15)).
100.15  Political party (2 U.S.C. 431(16)).
100.16  Independent expenditure (2 U.S.C. 431(17)).
100.17  Clearly identified (2 U.S.C. 431(18)).
100.18  Act (2 U.S.C. 431(19)).
100.19  File, filed or filing (2 U.S.C. 434(a)).
100.20  Occupation (2 U.S.C. 431(13)).
100.21  Employer (2 U.S.C. 431(13)).
100.22  Expressly advocating (2 U.S.C. 431(17)).

    Authority: 2 U.S.C. 431, 438(a)(8).

    Source: 45 FR 15094, Mar. 7, 1980, unless otherwise noted.



Sec. 100.1  Scope.

    This subchapter is issued by the Federal Election Commission to 
implement the Federal Election Campaign Act of 1971 (Pub. L. 92-225), as 
amended by Public Law 93-443, Public Law 94-283, Public Law 95-216, and 
Public Law 96-187.



Sec. 100.2  Election (2 U.S.C. 431(1)).

    (a) Election means the process by which individuals, whether opposed 
or unopposed, seek nomination for election, or election, to Federal 
office. The specific types of elections, as set forth at 11 CFR 100.2 
(b), (c), (d), (e) and (f) are included in this definition.
    (b) General election. A general election is an election which meets 
either of the following conditions:
    (1) An election held in even numbered years on the Tuesday following 
the first Monday in November is a general election.
    (2) An election which is held to fill a vacancy in a Federal office 
(i.e., a special election) and which is intended to result in the final 
selection of a single individual to the office at stake is a general 
election. See 11 CFR 100.2(f).
    (c) Primary election. A primary election is an election which meets 
one of the following conditions:
    (1) An election which is held prior to a general election, as a 
direct result of which candidates are nominated, in accordance with 
applicable State law, for election to Federal office in a subsequent 
election is a primary election.
    (2) An election which is held for the expression of a preference for 
the nomination of persons for election to the office of President of the 
United States is a primary election.
    (3) An election which is held to elect delegates to a national 
nominating convention is a primary election.
    (4) With respect to individuals seeking federal office as 
independent candidates, or without nomination by a major party (as 
defined in 26 U.S.C. 9002(6)), the primary election is considered to 
occur on one of the following dates, at the choice of the candidate:
    (i) The day prescribed by applicable State law as the last day to 
qualify for a position on the general election ballot may be designated 
as the primary election for such candidate.
    (ii) The date of the last major party primary election, caucus, or 
convention in that State may be designated as the primary election for 
such candidate.
    (iii) In the case of non-major parties, the date of the nomination 
by that party may be designated as the primary election for such 
candidate.
    (5) With respect to any major party candidate (as defined at 26 
U.S.C. 9002(6)) who is unopposed for nomination within his or her own 
party, and who is certified to appear as that party's nominee in the 
general election for the office sought, the primary election is 
considered to have occurred on the date on which the primary election 
was

[[Page 47]]

held by the candidate's party in that State.
    (d) Runoff election. Runoff election means the election which meets 
either of the following conditions:
    (1) The election held after a primary election, and prescribed by 
applicable State law as the means for deciding which candidate(s) should 
be certified as a nominee for the Federal office sought, is a runoff 
election.
    (2) The election held after a general election and prescribed by 
applicable State law as the means for deciding which candidate should be 
certified as an officeholder elect, is a runoff election.
    (e) Caucus or Convention. A caucus or convention of a political 
party is an election if the caucus or convention has the authority to 
select a nominee for federal office on behalf of that party.
    (f) Special election. Special election means an election which is 
held to fill a vacancy in a Federal office. A special election may be a 
primary, general, or runoff election, as defined at 11 CFR 100.2 (b), 
(c) and (d).



Sec. 100.3  Candidate (2 U.S.C. 431(2)).

    (a) Definition. Candidate means an individual who seeks nomination 
for election, or election, to federal office. An individual becomes a 
candidate for Federal office whenever any of the following events occur:
    (1) The individual has received contributions aggregating in excess 
of $5,000 or made expenditures aggregating in excess of $5,000.
    (2) The individual has given his or her consent to another person to 
receive contributions or make expenditures on behalf of that individual 
and such person has received contributions aggregating in excess of 
$5,000 or made expenditures aggregating in excess of $5,000.
    (3) After written notification by the Commission that any other 
person has received contributions aggregating in excess of $5,000 or 
made expenditures aggregating in excess of $5,000 on the individual's 
behalf, the individual fails to disavow such activity by letter to the 
Commission within 30 days of receipt of the notification.
    (4) The aggregate of contributions received under 11 CFR 100.3(a) 
(1), (2), and (3), in any combination thereof, exceeds $5,000, or the 
aggregate of expenditures made under 11 CFR 100.3(a) (1), (2), and (3), 
in any combination thereof, exceeds $5,000.
    (b) Election cycle. For purposes of determining whether an 
individual is a candidate under this section, contributions or 
expenditures shall be aggregated on an election cycle basis. An election 
cycle shall begin on the first day following the date of the previous 
general election for the office or seat which the candidate seeks, 
unless contributions or expenditures are designated for another election 
cycle. For an individual who receives contributions or makes 
expenditures designated for another election cycle, the election cycle 
shall begin at the time such individual, or any other person acting on 
the individual's behalf, first receives contributions or makes 
expenditures in connection with the designated election. The election 
cycle shall end on the date on which the general election for the office 
or seat that the individual seeks is held.



Sec. 100.4  Federal office (2 U.S.C. 431(3)).

    Federal office means the office of President or Vice President of 
the United States, Senator or Representative in, or Delegate or Resident 
Commissioner to, the Congress of the United States.



Sec. 100.5  Political committee (2 U.S.C. 431 (4), (5), (6)).

    Political committee means any group meeting one of the following 
conditions:
    (a) Except as provided in 11 CFR 100.5 (b), (c) and (d), any 
committee, club, association, or other group of persons which receives 
contributions aggregating in excess of $1,000 or which makes 
expenditures aggregating in excess of $1,000 during a calendar year is a 
political committee.
    (b) Any separate segregated fund established under 2 U.S.C. 
441b(b)(2)(C) is a political committee.
    (c) Any local committee of a political party is a political 
committee if: it receives contributions aggregating in excess of $5,000 
during a calendar year; it

[[Page 48]]

makes payments exempted from the definition of contribution, under 11 
CFR 100.7(b) (9), (15) and (17), and expenditure, under 11 CFR 100.8(b) 
(10), (16) and (18), which payments aggregate in excess of $5,000 during 
a calendar year; or it makes contributions aggregating in excess of 
$1,000 or makes expenditures aggregating in excess of $1,000 during a 
calendar year.
    (d) An individual's principal campaign committee or authorized 
committee(s) becomes a political committee(s) when that individual 
becomes a candidate pursuant to 11 CFR 100.3.
    (e) The following are examples of political committees:
    (1) Principal campaign committee. Principal campaign committee means 
a political committee designated and authorized by a candidate pursuant 
to 11 CFR 101.1 and 102.1.
    (2) Single candidate committee. Single candidate committee means a 
political committee other than a principal campaign committee which 
makes or receives contributions or makes expenditures on behalf of only 
one candidate.
    (3) Multi-candidate committee. Multi-candidate committee means a 
political committee which (i) has been registered with the Commission or 
Secretary of the Senate for at least 6 months; (ii) has received 
contributions for Federal elections from more than 50 persons; and (iii) 
(except for any State political party organization) has made 
contributions to 5 or more Federal candidates.
    (4) Party committee. Party committee means a political committee 
which represents a political party and is part of the official party 
structure at the national, State, or local level.
    (5) Delegate committee. A delegate committee is a group of persons 
that receives contributions or makes expenditures for the sole purpose 
of influencing the selection of one or more delegates to a national 
nominating convention. The term delegate committee includes a group of 
delegates, a group of individuals seeking selection as delegates and a 
group of individuals supporting delegates. A delegate committee that 
qualifies as a political committee under 11 CFR 100.5 must register with 
the Commission pursuant to 11 CFR part 102 and report its receipts and 
disbursements in accordance with 11 CFR part 104. (See definition of 
delegate at 11 CFR 110.14(b)(1).)
    (f) A political committee is either an authorized committee or an 
unauthorized committee.
    (1) Authorized committee. An authorized committee means the 
principal campaign committee or any other political committee authorized 
by a candidate under 11 CFR 102.13 to receive contributions or make 
expenditures on behalf of such candidate, or which has not been 
disavowed pursuant to 11 CFR 100.3(a)(3).
    (2) Unauthorized committee. An unauthorized committee is a political 
committee which has not been authorized in writing by a candidate to 
solicit or receive contributions or make expenditures on behalf of such 
candidate, or which has been disavowed pursuant to 11 CFR 100.3(a)(3).
    (g) Affiliated committee. (1) All authorized committees of the same 
candidate for the same election to Federal office are affiliated.
    (2) All committees (including a separate segregated fund, see 11 CFR 
part 114) established, financed, maintained or controlled by the same 
corporation, labor organization, person, or group of persons, including 
any parent, subsidiary, branch, division, department, or local unit 
thereof, are affiliated. Local unit may include, in appropriate cases, a 
franchisee, licensee, or State or regional association.
    (3) Affiliated committees sharing a single contribution limitation 
under paragraph (g)(2) of this section include all of the committees 
established, financed, maintained or controlled by--I11(i) A single 
corporation and/or its subsidiaries;
    (ii) A single national or international union and/or its local 
unions or other subordinate organizations;
    (iii) An organization of national or international unions and/or all 
its State and local central bodies;
    (iv) A membership organization, (other than political party 
committees, see 11 CFR 110.3(b)) including trade or professional 
associations, see 11 CFR 114.8(a), and/or related State and local 
entities of that organization or group; or

[[Page 49]]

    (v) The same person or group of persons.
    (4)(i) The Commission may examine the relationship between 
organizations that sponsor committees, between the committees 
themselves, or between one sponsoring organization and a committee 
established by another organization to determine whether committees are 
affiliated.
    (ii) In determining whether committees not described in paragraphs 
(g)(3) (i)-(iv) of this section are affiliated, the Commission will 
consider the circumstantial factors described in paragraphs (g)(4)(ii) 
(A) through (J) of this section. The Commission will examine these 
factors in the context of the overall relationship between committees or 
sponsoring organizations to determine whether the presence of any factor 
or factors is evidence of one committee or organization having been 
established, financed, maintained or controlled by another committee or 
sponsoring organization. Such factors include, but are not limited to:
    (A) Whether a sponsoring organization owns controlling interest in 
the voting stock or securities of the sponsoring organization of another 
committee;
    (B) Whether a sponsoring organization or committee has the authority 
or ability to direct or participate in the governance of another 
sponsoring organization or committee through provisions of 
constitutions, bylaws, contracts, or other rules, or through formal or 
informal practices or procedures;
    (C) Whether a sponsoring organization or committee has the authority 
or ability to hire, appoint, demote or otherwise control the officers, 
or other decisionmaking employees or members of another sponsoring 
organization or committee;
    (D) Whether a sponsoring organization or committee has a common or 
overlapping membership with another sponsoring organization or committee 
which indicates a formal or ongoing relationship between the sponsoring 
organizations or committees;
    (E) Whether a sponsoring organization or committee has common or 
overlapping officers or employees with another sponsoring organization 
or committee which indicates a formal or ongoing relationship between 
the sponsoring organizations or committees;
    (F) Whether a sponsoring organization or committee has any members, 
officers or employees who were members, officers or employees of another 
sponsoring organization or committee which indicates a formal or ongoing 
relationship between the sponsoring organizations or committees, or 
which indicates the creation of a successor entity;
    (G) Whether a sponsoring organization or committee provides funds or 
goods in a significant amount or on an ongoing basis to another 
sponsoring organization or committee, such as through direct or indirect 
payments for administrative, fundraising, or other costs, but not 
including the transfer to a committee of its allocated share of proceeds 
jointly raised pursuant to 11 CFR 102.17;
    (H) Whether a sponsoring organization or committee causes or 
arranges for funds in a significant amount or on an ongoing basis to be 
provided to another sponsoring organization or committee, but not 
including the transfer to a committee of its allocated share of proceeds 
jointly raised pursuant to 11 CFR 102.17;
    (I) Whether a sponsoring organization or committee or its agent had 
an active or significant role in the formation of another sponsoring 
organization or committee; and
    (J) Whether the sponsoring organizations or committees have similar 
patterns of contributions or contributors which indicates a formal or 
ongoing relationship between the sponsoring organizations or committees.

[45 FR 15094, Mar. 7, 1980, as amended at 45 FR 34867, May 23, 1980; 52 
FR 35534, Sept. 22, 1987; 54 FR 34109, Aug. 17, 1989; 54 FR 48580, Nov. 
24, 1989; 61 FR 3549, Feb. 1, 1996]



Sec. 100.6  Connected organization (2 U.S.C. 431(7)).

    (a) Connected organization means any organization which is not a 
political committee but which directly or indirectly establishes, 
administers, or financially supports a political committee. A connected 
organization may

[[Page 50]]

be a corporation (including a corporation without capital stock), a 
labor organization, a membership organization, a cooperative or a trade 
association.
    (b) For purposes of 11 CFR 100.6, organizations which are members of 
the entity (such as corporate members of a trade association) which 
establishes, administers, or financially supports a political committee 
are not organizations which directly or indirectly establish, administer 
or financially support that political committee.
    (c) For purposes of 11 CFR 100.6, the term financially supports does 
not include contributions to the political committee, but does include 
the payment of establishment, administration and solicitation costs of 
such committee.



Sec. 100.7  Contribution (2 U.S.C. 431(8)).

    (a) The term contribution includes the following payments, services 
or other things of value:
    (1) A gift, subscription, loan (except for a loan made in accordance 
with 11 CFR 100.7(b)(11)), advance, or deposit of money or anything of 
value made by any person for the purpose of influencing any election for 
Federal office is a contribution.
    (i) For purposes of 11 CFR 100.7(a)(1), the term loan includes a 
guarantee, endorsement, and any other form of security.
    (A) A loan which exceeds the contribution limitations of 2 U.S.C. 
441a and 11 CFR part 110 shall be unlawful whether or not it is repaid.
    (B) A loan is a contribution at the time it is made and is a 
contribution to the extent that it remains unpaid. The aggregate amount 
loaned to a candidate or committee by a contributor, when added to other 
contributions from that individual to that candidate or committee, shall 
not exceed the contribution limitations set forth at 11 CFR part 110. A 
loan, to the extent it is repaid, is no longer a contribution.
    (C) Except as provided in (D), a loan is a contribution by each 
endorser or guarantor. Each endorser or guarantor shall be deemed to 
have contributed that portion of the total amount of the loan for which 
he or she agreed to be liable in a written agreement. Any reduction in 
the unpaid balance of the loan shall reduce proportionately the amount 
endorsed or guaranteed by each endorser or guarantor in such written 
agreement. In the event that such agreement does not stipulate the 
portion of the loan for which each endorser or guarantor is liable, the 
loan shall be considered a loan by each endorser or guarantor in the 
same proportion to the unpaid balance that each endorser or guarantor 
bears to the total number of endorsers or guarantors.
    (D) A candidate may obtain a loan on which his or her spouse's 
signature is required when jointly owned assets are used as collateral 
or security for the loan. The spouse shall not be considered a 
contributor to the candidate's campaign if the value of the candidate's 
share of the property used as collateral equals or exceeds the amount of 
the loan which is used for the candidate's campaign.
    (E) If a political committee makes a loan to any person, such loan 
shall be subject to the limitations of 11 CFR part 110. Repayment of the 
principal amount of such loan to such political committee shall not be a 
contribution by the debtor to the lender committee. Such repayment shall 
be made with funds which are subject to the prohibitions of 11 CFR 
110.4(a) and part 114. The payment of interest to such committee by the 
debtor shall be a contribution only to the extent that the interest paid 
exceeds a commercially reasonable rate prevailing at the time the loan 
is made. All payments of interest shall be made from funds subject to 
the prohibitions of 11 CFR 110.4(a) and part 114.
    (ii) For purposes of 11 CFR 100.7(a)(1), the term money includes 
currency of the United States or of any foreign nation, checks, money 
orders, or any other negotiable instruments payable on demand.
    (iii) (A) For purposes of 11 CFR 100.7(a)(1), the term anything of 
value includes all in-kind contributions. Unless specifically exempted 
under 11 CFR 100.7(b), the provision of any goods or services without 
charge or at a charge which is less than the usual and normal charge for 
such goods or services is a contribution. Examples of such goods or 
services include, but are

[[Page 51]]

not limited to: Securities, facilities, equipment, supplies, personnel, 
advertising services, membership lists, and mailing lists. If goods or 
services are provided at less than the usual and normal charge, the 
amount of the in-kind contribution is the difference between the usual 
and normal charge for the goods or services at the time of the 
contribution and the amount charged the political committee.
    (B) For purposes of 11 CFR 100.7(a)(1)(iii)(A), usual and normal 
charge for goods means the price of those goods in the market from which 
they ordinarily would have been purchased at the time of the 
contribution; and usual and normal charge for any services, other than 
those provided by an unpaid volunteer, means the hourly or piecework 
charge for the services at a commercially reasonable rate prevailing at 
the time the services were rendered.
    (2) The entire amount paid to attend a fundraiser or other political 
event and the entire amount paid as the purchase price for a fundraising 
item sold by a political committee is a contribution.
    (3) The payment by any person of compensation for the personal 
services of another person if those services are rendered without charge 
to a political committee for any purpose, except for legal and 
accounting services provided under 11 CFR 100.7(b)(13) or (14), is a 
contribution. No compensation is considered paid to any employee under 
any of the following conditions:
    (i) If an employee is paid on an hourly or salaried basis and is 
expected to work a particular number of hours per period, no 
contribution results if the employee engages in political activity 
during what would otherwise be a regular work period, provided that the 
taken or released time is made up or completed by the employee within a 
reasonable time.
    (ii) No contribution results where an employee engages in political 
activity during what would otherwise be normal working hours if the 
employee is paid on a commission or piecework basis, or is paid only for 
work actually performed and the employee's time is considered his or her 
own to use as he or she sees fit.
    (iii) No contribution results where the time used by the employee to 
engage in political activity is bona fide, although compensable, 
vacation time or other earned leave time.
    (4) The extension of credit by any person is a contribution unless 
the credit is extended in the ordinary course of the person's business 
and the terms are substantially similar to extensions of credit to 
nonpolitical debtors that are of similar risk and size of obligation. If 
a creditor fails to make a commercially reasonable attempt to collect 
the debt, a contribution will result. (See 11 CFR 116.3 and 116.4.) If a 
debt owed by a political committee is forgiven or settled for less than 
the amount owed, a contribution results unless such debt is settled in 
accordance with the standards set forth at 11 CFR 116.3 and 116.4.
    (b) The term contribution does not include the following payments, 
services or other things of value:
    (1)(i) Funds received solely for the purpose of determining whether 
an individual should become a candidate are not contributions. Examples 
of activities permissible under this exemption if they are conducted to 
determine whether an individual should become a candidate include, but 
are not limited to, conducting a poll, telephone calls, and travel. Only 
funds permissible under the Act may be used for such activities. The 
individual shall keep records of all such funds received. See 11 CFR 
101.3. If the individual subsequently becomes a candidate, the funds 
received are contributions subject to the reporting requirements of the 
Act. Such contributions must be reported with the first report filed by 
the principal campaign committee of the candidate, regardless of the 
date the funds were received.
    (ii) This exemption does not apply to funds received for activities 
indicating that an individual has decided to become a candidate for a 
particular office or for activities relevant to conducting a campaign. 
Examples of activities that indicate that an individual has decided to 
become a candidate include, but are not limited to:
    (A) The individual uses general public political advertising to 
publicize his

[[Page 52]]

or her intention to campaign for Federal office.
    (B) The individual raises funds in excess of what could reasonably 
be expected to be used for exploratory activities or undertakes 
activities designed to amass campaign funds that would be spent after he 
or she becomes a candidate.
    (C) The individual makes or authorizes written or oral statements 
that refer to him or her as a candidate for a particular office.
    (D) The individual conducts activities in close proximity to the 
election or over a protracted period of time.
    (E) The individual has taken action to qualify for the ballot under 
State law.
    (2) Any cost incurred in covering or carrying a news story, 
commentary, or editorial by any broadcasting station (including a cable 
television operator, programmer or producer), newspaper, magazine, or 
other periodical publication is not a contribution unless the facility 
is owned or controlled by any political party, political committee, or 
candidate, in which case the costs for a news story (i) which represents 
a bona fide news account communicated in a publication of general 
circulation or on a licensed broadcasting facility, and (ii) which is 
part of a general pattern of campaign-related news accounts which give 
reasonably equal coverage to all opposing candidates in the circulation 
or listening area, is not a contribution.
    (3) The value of services provided without compensation by any 
individual who volunteers on behalf of a candidate or political 
committee is not a contribution.
    (4) No contribution results where an individual, in the course of 
volunteering personal services on his or her residential premises to any 
candidate or to any political committee of a political party, provides 
the use of his or her real or personal property to such candidate for 
candidate-related activity or to such political committee of a political 
party for party-related activity. For the purposes of 11 CFR 
100.7(b)(4), an individual's residential premises, shall include a 
recreation room in a residential complex where the individual 
volunteering services resides, provided that the room is available for 
use without regard to political affiliation. A nominal fee paid by such 
individual for the use of such room is not a contribution.
    (5) No contribution results where an individual, in the course of 
volunteering personal services to any candidate or political committee 
of a political party, obtains the use of a church or community room and 
provides such room to any candidate for candidate-related activity or to 
any political committee of a political party for party-related activity, 
provided that the room is used on a regular basis by members of the 
community for noncommercial purposes and the room is available for use 
by members of the community without regard to political affiliation. A 
nominal fee paid by such individual for the use of such room is not a 
contribution.
    (6) The cost of invitations, food and beverages is not a 
contribution where such items are voluntarily provided by an individual 
volunteering personal services on the individual's residential premises 
or in a church or community room as specified at 11 CFR 100.7(b) (4) and 
(5) to a candidate for candidate-related activity or to any political 
committee of a political party for party-related activity, to the extent 
that: The aggregate value of such invitations, food and beverages 
provided by the individual on behalf of the candidate does not exceed 
$1,000 with respect to any single election; and on behalf of all 
political committees of each political party does not exceed $2,000 in 
any calendar year.
    (7) The sale of any food or beverage by a vendor (whether 
incorporated or not) for use in a candidate's campaign, or for use by a 
political committee of a political party, at a charge less than the 
normal or comparable commercial rate, is not a contribution, provided 
that the charge is at least equal to the cost of such food or beverage 
to the vendor, to the extent that: The aggregate value of such discount 
given by the vendor on behalf of any single candidate does not exceed 
$1,000 with respect to any single election; and on behalf of all 
political committees of each political party does not exceed $2,000 in a 
calendar year.

[[Page 53]]

    (8) Any unreimbursed payment for transportation expenses incurred by 
any individual on behalf of any candidate or any political committee of 
a political party is not a contribution to the extent that: The 
aggregate value of the payments made by such individual on behalf of a 
candidate does not exceed $1,000 with respect to a single election; and 
on behalf of all political committees of each political party does not 
exceed $2,000 in a calendar year. Additionally, any unreimbursed payment 
from a volunteer's personal funds for usual and normal subsistence 
expenses incidental to volunteer activity is not a contribution.
    (9) The payment by a State or local committee of a political party 
of the costs of preparation, display, or mailing or other distribution 
incurred by such committee with respect to a printed slate card, sample 
ballot, palm card, or other printed listing(s) of three or more 
candidates for any public office for which an election is held in the 
State in which the committee is organized is not a contribution. The 
payment of the portion of such costs allocable to Federal candidates 
must be made from funds subject to the limitations and prohibitions of 
the Act. If made by a political committee, such payments shall be 
reported by that committee as disbursements, but need not be allocated 
in committee reports to specific candidates. This exemption shall not 
apply to costs incurred by such a committee with respect to the 
preparation and display of listings made on broadcasting stations, or in 
newspapers, magazines, and similar types of general public political 
advertising such as billboards.
    (10) Any payment made or obligation incurred by a corporation or a 
labor organization is not a contribution if under the provisions of 11 
CFR part 114 such payment or obligation would not constitute an 
expenditure by the corporation or labor organization.
    (11) A loan of money by a State bank, a federally chartered 
depository institution (including a national bank) or a depository 
institution whose deposits and accounts are insured by the Federal 
Deposit Insurance Corporation, the Federal Savings and Loan Insurance 
Corporation, or the National Credit Union Administration is not a 
contribution by the lending institution if such loan is made in 
accordance with applicable banking laws and regulations and is made in 
the ordinary course of business. A loan will be deemed to be made in the 
ordinary course of business if it: Bears the usual and customary 
interest rate of the lending institution for the category of loan 
involved; is made on a basis which assures repayment; is evidenced by a 
written instrument; and is subject to a due date or amortization 
schedule. Such loans shall be reported by the political committee in 
accordance with 11 CFR 104.3(a). Each endorser or guarantor shall be 
deemed to have contributed that portion of the total amount of the loan 
for which he or she agreed to be liable in a written agreement, except 
that, in the event of a signature by the candidate's spouse, the 
provisions of 11 CFR 100.7(a)(1)(i)(D) shall apply. Any reduction in the 
unpaid balance of the loan shall reduce proportionately the amount 
endorsed or guaranteed by each endorser or guarantor in such written 
agreement. In the event that such agreement does not stipulate the 
portion of the loan for which each endorser or guarantor is liable, the 
loan shall be considered a contribution by each endorser or guarantor in 
the same proportion to the unpaid balance that each endorser or 
guarantor bears to the total number of endorsers or guarantors. For 
purposes of 11 CFR 100.7(b)(11), an overdraft made on a checking or 
savings account shall be considered a contribution by the bank or 
institution unless: The overdraft is made on an account which is subject 
to automatic overdraft protection; the overdraft is subject to a 
definite interest rate which is usual and customary; and there is a 
definite repayment schedule.
    (i) A loan, including a line of credit, shall be considered made on 
a basis which assures repayment if it is obtained using either of the 
sources of repayment described in paragraphs (b)(11)(i) (A) or (B) of 
this section, or a combination of paragraphs (b)(11)(i) (A) and (B) of 
this section:

[[Page 54]]

    (A)(1) The lending institution making the loan has perfected a 
security interest in collateral owned by the candidate or political 
committee receiving the loan, the fair market value of the collateral is 
equal to or greater than the loan amount and any senior liens as 
determined on the date of the loan, and the candidate or political 
committee provides documentation to show that the lending institution 
has a perfected security interest in the collateral. Sources of 
collateral include, but are not limited to, ownership in real estate, 
personal property, goods, negotiable instruments, certificates of 
deposit, chattel papers, stocks, accounts receivable and cash on 
deposit.
    (2) Amounts guaranteed by secondary sources of repayment, such as 
guarantors and cosigners, shall not exceed the contribution limits of 11 
CFR part 110 or contravene the prohibitions of 11 CFR 110.4, part 114 
and part 115; or
    (B) The lending institution making the loan has obtained a written 
agreement whereby the candidate or political committee receiving the 
loan has pledged future receipts, such as public financing payments 
under 11 CFR part 9001 et seq. or part 9031 et seq., contributions, or 
interest income, provided that:
    (1) The amount of the loan or loans obtained on the basis of such 
funds does not exceed the amount of pledged funds;
    (2) Loan amounts are based on a reasonable expectation of the 
receipt of pledged funds. To that end, the candidate or political 
committee must furnish the lending institution documentation, i.e., cash 
flow charts or other financial plans, that reasonably establish that 
such future funds will be available;
    (3) A separate depository account is established at the lending 
institution or the lender obtains an assignment from the candidate or 
political committee to access funds in a committee account at another 
depository institution that meets the requirements of 11 CFR 103.2, and 
the committee has notified the other institution of this assignment;
    (4) The loan agreement requires the deposit of the public financing 
payments, contributions and interest income pledged as collateral into 
the separate depository account for the purpose of retiring the debt 
according to the repayment requirements of the loan agreement; and
    (5) In the case of public financing payments, the borrower 
authorizes the Secretary of the Treasury to directly deposit the 
payments into the depository account for the purpose of retiring the 
debt.
    (ii) If the requirements set forth in paragraph (b)(11)(i) of this 
section are not met, the Commission will consider the totality of the 
circumstances on a case-by-case basis in determining whether a loan was 
made on a basis which assures repayment.
    (12) A gift, subscription, loan, advance, or deposit of money or 
anything of value made to a national committee or a State committee of a 
political party is not a contribution if it is specifically designated 
to defray any cost incurred for construction or purchase of any office 
facility which is not acquired for the purpose of influencing the 
election of any candidate in any particular election for Federal office. 
If such gift, subscription, loan, advance, or deposit of money or 
anything of value is made to a committee which is not a political 
committee under 11 CFR 100.5, the amount need not be reported. However, 
if such gift, subscription, loan, advance, or deposit of money or 
anything of value is made to a political committee, it shall be reported 
in accordance with 11 CFR 104.3(g).
    (13) Legal or accounting services rendered to or on behalf of any 
political committee of a political party are not contributions if the 
person paying for such services is the regular employer of the 
individual rendering the services and such services are not attributable 
to activities which directly further the election of any designated 
candidate for Federal office. For purposes of 11 CFR 100.7(b)(13), a 
partnership shall be deemed to be the regular employer of a partner. 
Amounts paid by the regular employer for such services shall be reported 
by the committee receiving such services in accordance with 11 CFR 
104.3(h).
    (14) Legal or accounting services rendered to or on behalf of an 
authorized committee of a candidate or any other

[[Page 55]]

political committee are not contributions if the person paying for such 
services is the regular employer of the individual rendering the 
services and if such services are solely to ensure compliance with the 
Act or 26 U.S.C. 9001 et seq. and 9031 et seq. For purposes of 11 CFR 
100.7(b)(14), a partnership shall be deemed to be the regular employer 
of a partner. Amounts paid by the regular employer for these services 
shall be reported by the committee receiving such services in accordance 
with 11 CFR 104.3(h).
    (15) The payment by a state or local committee of a political party 
of the costs of campaign materials (such as pins, bumper stickers, 
handbills, brochures, posters, party tabloids or newletters, and yard 
signs) used by such committee in connection with volunteer activities on 
behalf of any nominee(s) of such party is not a contribution, provided 
that the following conditions are met:
    (i) Such payment is not for cost incurred in connection with any 
broadcasting, newspaper, magazine, bill board, direct mail, or similar 
type of general public communication or political advertising. For 
purposes of 11 CFR 100.7(b)(15)(i), the term direct mail means any 
mailing(s) by a commercial vendor or any mailing(s) made from commercial 
lists.
    (ii) The portion of the cost of such materials allocable to Federal 
candidates is paid from contributions subject to the limitations and 
prohibitions of the Act.
    (iii) Such payment is not made from contributions designated by the 
donor to be spent on behalf of a particular candidate or candidates for 
Federal office. For purposes of 11 CFR 100.7(b)(15)(iii), a contribution 
shall not be considered a designated contribution if the party committee 
disbursing the funds makes the final decision regarding which 
candidate(s) shall receive the benefit of such disbursement.
    (iv) Such materials are distributed by volunteers and not by 
commercial or for-profit operations. For the purposes of 11 CFR 
100.7(b)(15)(iv), payments by the party organization for travel and 
subsistence or customary token payments to volunteers do not remove such 
individuals from the volunteer category.
    (v) If made by a political committee such payments shall be reported 
by the political committee as disbursements in accordance with 11 CFR 
104.3 but need not be allocated to specific candidates in committee 
reports.
    (vi) Payments by a State candidate or his or her campaign committee 
to a State or local political party committee for the State candidate's 
share of expenses for such campaign materials are not contributions, 
provided the amount paid by the State candidate or his or her committee 
does not exceed his or her proportionate share of the expenses.
    (vii) Campaign materials purchased by the national committee of a 
political party and delivered to a State or local party committee, or 
materials purchased with funds donated by the national committee to such 
State or local committee for the purchase of such materials, shall not 
qualify under this exemption. Rather, the cost of such materials shall 
be subject to the limitations of 2 U.S.C. 441a(d) and 11 CFR 110.7.
    (16) The payment by a candidate for any public office (including 
State or local office), or by such candidate's authorized committee, of 
the costs of that candidate's campaign materials which include 
information on or any reference to a candidate for Federal office and 
which are used in connection with volunteer activities (such as pins, 
bumper stickers, handbills, brochures, posters, and yard signs) is not a 
contribution to such candidate for Federal office, provided that the 
payment is not for the use of broadcasting, newspapers, magazines, 
billboards, direct mail or similar types of general public communication 
or political advertising. The payment of the portion of the cost of such 
materials allocable to Federal candidates shall be made from 
contributions subject to the limitations and prohibitions of the Act. 
For purposes of 11 CFR 100.7(b)(16), the term direct mail means any 
mailing(s) by commercial vendors or mailing(s) made from lists which 
were not developed by the candidate.
    (17) The payment by a State or local committee of a political party 
of the

[[Page 56]]

costs of voter registration and get-out-the-vote activities conducted by 
such committee on behalf of the Presidential and Vice Presidential 
nominee(s) of that party, is not a contribution to such candidate(s) 
provided that the following conditions are met:
    (i) Such payment is not for the costs incurred in connection with 
any broadcasting, newspaper, magazine, billboard, direct mail, or 
similar type of general public communication or political advertising. 
For purposes of 11 CFR 100.7(b)(17)(i), the term direct mail means any 
mailing(s) by a commercial vendor or any mailing(s) made from commercial 
lists.
    (ii) The portion of the costs of such activities allocable to 
Federal candidates is paid from contributions subject to the limitations 
and prohibitions of the Act.
    (iii) Such payment is not made from contributions designated to be 
spent on behalf of a particular candidate or candidates for Federal 
office. For purposes of 11 CFR 100.7(b)(17)(iii), a contribution shall 
not be considered a designated contribution if the party committee 
disbursing the funds makes the final decision regarding which 
candidate(s) shall receive the benefit of such disbursement.
    (iv) For purposes of 11 CFR 100.7(b)(17), if such activities include 
references to any candidate(s) for the House or Senate, the costs of 
such activities which are allocable to that candidate(s) shall be a 
contribution to such candidate(s) unless the mention of such 
candidate(s) is merely incidental to the overall activity.
    (v) For purposes of 11 CFR 100.7(b)(17), payment of the costs 
incurred in the use of phone banks in connection with voter registration 
and get-out-the-vote activities is not a contribution when such phone 
banks are operated by volunteer workers. The use of paid professionals 
to design the phone bank system, develop calling instructions and train 
supervisors is permissible. The payment of the costs of such 
professional services is not an expenditure but shall be reported as a 
disbursement in accordance with 11 CFR 104.3 if made by a political 
committee.
    (vi) If made by a political committee, such payments for voter 
registration and get-out-the-vote activities shall be reported by that 
committee as disbursements in accordance with 11 CFR 104.3, but such 
payments need not be allocated to specific candidates in committee 
reports except as provided in 11 CFR 100.7(b)(17)(iv).
    (vii) Payments made from funds donated by a national committee of a 
political party to a State or local party committee for voter 
registration and get-out-the-vote activities shall not qualify under 
this exemption. Rather, such funds shall be subject to the limitations 
of 2 U.S.C. 441a(d) and 11 CFR 110.7.
    (18) Payments made to any party committee by a candidate or the 
authorized committee of a candidate as a condition of ballot access are 
not contributions.
    (19) [Reserved]
    (20) A gift, subscription, loan, advance, or deposit of money or 
anything of value made with respect to a recount of the results of a 
Federal election, or an election contest concerning a Federal election, 
is not a contribution except that the prohibitions of 11 CFR 110.4(a) 
and part 114 apply.
    (21) Funds provided to defray costs incurred in staging candidate 
debates in accordance with the provisions of 11 CFR 110.13 and 114.4(f).
    (c) For purposes of 11 CFR 100.7 (a) and (b), a contribution or 
payment made by an individual shall not be attributed to any other 
individual, unless otherwise specified by that other individual in 
accordance with 11 CFR 110.1(k).

[45 FR 15094, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980; 45 
FR 23642, Apr. 8, 1980; 48 FR 19020, Apr. 27, 1983; 50 FR 9994, Mar. 13, 
1985; 52 FR 773, Jan. 9, 1987; 55 FR 26385, June 27, 1990; 56 FR 67123, 
Dec. 27, 1991; 57 FR 1640, Jan. 15, 1992; 60 FR 64272, Dec. 14, 1995; 61 
FR 18051, Apr. 24, 1996]



Sec. 100.8  Expenditure (2 U.S.C. 431(9)).

    (a) The term expenditure incudes the following payments, gifts or 
other things of value:
    (1) A purchase, payment, distribution, loan (except for a loan made 
in accordance with 11 CFR 100.8(b)(12)), advance, deposit, or gift of 
money or

[[Page 57]]

anything of value, made by any person for the purpose of influencing any 
election for Federal office is an expenditure.
    (i) For purposes of 11 CFR 100.8(a)(1), the term payment includes 
payment of any interest on an obligation and any guarantee or 
endorsement of a loan by a candidate or a political committee.
    (ii) For purposes of 11 CFR 100.8(a)(1), the term payment does not 
include the repayment by a political committee of the principal of an 
outstanding obligation which is owed by such committee, except that the 
repayment shall be reported as disbursements in accordance with 11 CFR 
104.3(b).
    (iii) For purposes of 11 CFR 100.8(a)(1), the term money includes 
currency of the United States or of any foreign nation, checks, money 
orders, or any other negotiable instrument payable on demand.
    (iv)(A) For purposes of 11 CFR 100.8(a)(1), the term anything of 
value includes all in-kind contributions. Unless specifically exempted 
under 11 CFR 100.8(b), the provision of any goods or services without 
charge or at a charge which is less than the usual and normal charge for 
the goods or services is an expenditure. Examples of such goods or 
services include, but are not limited to: Securities, facilities, 
equipment, supplies, personnel, advertising services, membership lists, 
and mailing lists. If goods or services are provided at less than the 
usual and normal charge, the amount of the expenditure is the difference 
between the usual and normal charge for the goods or services at the 
time of the expenditure and the amount charged the candidate or 
political committee.
    (B) For the purposes of 11 CFR 100.8(a)(1)(iv)(A), usual and normal 
charge for goods means the price of those goods in the market from which 
they ordinarily would have been purchased at the time of the 
expenditure; and usual and normal charge for services, other than those 
provided by an unpaid volunteer, means the hourly or piecework charge 
for the services at a commerically reasonable rate prevailing at the 
time the services were rendered.
    (2) A written contract, including a media contract, promise, or 
agreement to make an expenditure is an expenditure as of the date such 
contract, promise or obligation is made.
    (3) An independent expenditure which meets the requirements of 11 
CFR 104.4 or part 109 is an expenditure, and such independent 
expenditure is to be reported by the person making the expenditure in 
accordance with 11 CFR 104.4 and part 109.
    (b) The term expenditure does not include the following payments, 
gifts, or other things of value:
    (1)(i) Payments made solely for the purpose of determining whether 
an individual should become a candidate are not expenditures. Examples 
of activities permissible under this exemption if they are conducted to 
determine whether an individual should become a candidate include, but 
are not limited to, conducting a poll, telephone calls, and travel. Only 
funds permissible under the Act may be used for such activities. The 
individual shall keep records of all such payments. See 11 CFR 101.3. If 
the individual subsequently becomes a candidate, the payments made are 
subject to the reporting requirements of the Act. Such expenditures must 
be reported with the first report filed by the principal campaign 
committee of the candidate, regardless of the date the payments were 
made.
    (ii) This exemption does not apply to payments made for activities 
indicating that an individual has decided to become a candidate for a 
particular office or for activities relevant to conducting a campaign. 
Examples of activities that indicate that an individual has decided to 
become a candidate include, but are not limited to:
    (A) The individual uses general public political advertising to 
publicize his or her intention to campaign for Federal office.
    (B) The individual raises funds in excess of what could reasonably 
be expected to be used for exploratory activities or undertakes 
activities designed to amass campaign funds that would be spent after he 
or she becomes a candidate.
    (C) The individual makes or authorizes written or oral statements 
that refer to him or her as a candidate for a particular office.

[[Page 58]]

    (D) The individual conducts activities in close proximity to the 
election or over a protracted period of time.
    (E) The individual has taken action to qualify for the ballot under 
State law.
    (2) Any cost incurred in covering or carrying a new story, 
commentary, or editorial by any broadcasting station (including a cable 
television operator, programmer or producer), newspaper, magazine, or 
other periodical publication is not an expenditure unless the facility 
is owned or controlled by any political party, political committee, or 
candidate, in which case the costs for a news story (i) which represents 
a bona fide news account communicated in a publication of general 
circulation or on a licensed broadcasting facility, and (ii) which is 
part of a general pattern of campaign-related news account which give 
reasonably equal coverage to all opposing candidates in the circulation 
or listening area, is not an expenditure.
    (3) Any cost incurred for activity designed to encourage individuals 
to register to vote or to vote is not an expenditure if no effort is or 
has been made to determine the party or candidate preference of 
individuals before encouraging them to register to vote or to vote, 
except that corporations and labor organizations shall engage in such 
activity in accordance with 11 CFR 114.4 (c) and (d). See also 11 CFR 
114.3(c)(4)
    (4) Any cost incurred for any communication by a membership 
organization, including a labor organization, to its members, or any 
cost incurred for any communication by a corporation to its stockholders 
or executive or administrative personnel, is not an expenditure, except 
that the costs directly attributable to such a communication that 
expressly advocates the election or defeat of a clearly identified 
candidate (other than a communication primarily devoted to subjects 
other than the express advocacy of the election or defeat of a clearly 
identified candidate) shall, if those costs exceed $2,000 per election, 
be reported to the Commission on FEC Form 7 in accordance with 11 CFR 
104.6.
    (i) For purposes of 11 CFR 100.8(b)(4), labor organization means an 
organization of any kind (any local, national, or international union, 
or any local or State central body of a federation of unions is each 
considered a separate labor organization for purposes of this section) 
or any agency or employee representative committee or plan, in which 
employees participate and which exists for the purpose, in whole or in 
part, of dealing with employers concerning grievances, labor disputes, 
wages, rates of pay, hours of employment, or conditions of work.
    (ii) For purposes of 11 CFR 100.8(b)(4), stockholder means a person 
who has a vested beneficial interest in stock, has the power to direct 
how that stock shall be voted, if it is voting stock, and has the right 
to receive dividends.
    (iii) For purposes of 11 CFR 100.8(b)(4), executive or 
administrative personnel means individuals employed by a corporation who 
are paid on a salary rather than hourly basis and who have policymaking, 
managerial, professional, or supervisory responsibilities.
    (A) This definition includes--
    (1) Individuals who run the corporation's business, such as 
officers, other executives, and plant, division, and section managers; 
and
    (2) Individuals following the recognized professions, such as 
lawyers and engineers.
    (B) This definition does not include--
    (1) Professionals who are represented by a labor organization;
    (2) Salaried foremen and other salaried lower level supervisors 
having direct supervision over hourly employees;
    (3) Former or retired personnel who are not stockholders; or
    (4) Individuals who may be paid by the corporation, such as 
consultants, but who are not employees, within the meaning of 26 CFR 
31.3401(c)-(1), of the corporation for the purpose of the collection of, 
and liability for, employee tax under 26 CFR 31.3402(a)-(1).
    (C) Individuals on commission may be considered executive or 
administrative personnel if they have policymaking, managerial, 
professional, or supervisory responsibility and if the individuals are 
employees, within the meaning of 26 CFR 31.3401(c)-(1), of the 
corporation for the purpose of the collection of, and liability for, 
employee tax under 26 CFR 31.3402(a)-(1).

[[Page 59]]

    (D) The Fair Labor Standards Act, 29 USC 201, et seq. and the 
regulations issued pursuant to such Act, 29 CFR part 541, et seq., may 
serve as a guideline in determining whether individuals have 
policymaking, managerial, professional, or supervisory responsibilities.
    (iv) (A) For purposes of paragraph (b)(4) of this section membership 
organization means an unincorporated association, trade association, 
cooperative, corporation without capital stock, or a local, national, or 
international labor organization that:
    (1) Is composed of members, some or all of whom are vested with the 
power and authority to operate or administer the organization, pursuant 
to the organization's articles, bylaws, constitution or other formal 
organizational documents;
    (2) Expressly states the qualifications and requirements for 
membership in its articles, bylaws, constitution or other formal 
organizational documents;
    (3) Makes its articles, bylaws, constitution or other formal 
organizational documents available to its members;
    (4) Expressly solicits persons to become members;
    (5) Expressly acknowledges the acceptance of membership, such as by 
sending a membership card or including the member's name on a membership 
newsletter list; and
    (6) Is not organized primarily for the purpose of influencing the 
nomination for election, or election, of any individual for Federal 
office.
    (B) For purposes of paragraph (b)(4) of this section, the term 
members includes all persons who are currently satisfying the 
requirements for membership in a membership organization, affirmatively 
accept the membership organization's invitation to become a member, and 
either:
    (1) Have some significant financial attachment to the membership 
organization, such as a significant investment or ownership stake; or
    (2) Pay membership dues at least annually, of a specific amount 
predetermined by the organization; or
    (3) Have a significant organizational attachment to the membership 
organization which includes: affirmation of membership on at least an 
annual basis and direct participatory rights in the governance of the 
organization. For example, such rights could include the right to vote 
directly or indirectly for at least one individual on the membership 
organization's highest governing board; the right to vote on policy 
questions where the highest governing body of the membership 
organization is obligated to abide by the results; the right to approve 
the organization's annual budget; or the right to participate directly 
in similar aspects of the organization's governance.
    (C) Notwithstanding the requirements of paragraph (b)(4)(iv)(B) of 
this section, the Commission may determine, on a case-by-case basis, 
that persons who do not precisely meet the requirements of the general 
rule, but have a relatively enduring and independently significant 
financial or organizational attachment to the organization, may be 
considered members for purposes of this section. For example, student 
members who pay a lower amount of dues while in school, long term dues 
paying members who qualify for lifetime membership status with little or 
no dues obligation, and retired members may be considered members of the 
organization.
    (D) Notwithstanding the requirements of paragraphs (b)(4)(iv)(B)(1) 
through (3) of this section, members of a local union are considered to 
be members of any national or international union of which the local 
union is a part and of any federation with which the local, national, or 
international union is affiliated.
    (E) In the case of a membership organization which has a national 
federation structure or has several levels, including, for example, 
national, state, regional and/or local affiliates, a person who 
qualifies as a member of any entity within the federation or of any 
affiliate by meeting the requirements of paragraphs (b)(4)(iv)(B)(1), 
(2), or (3) of this section shall also qualify as a member of all 
affiliates for purposes of paragraph (b)(4)(iv) of this section. The 
factors set forth at 11 CFR 100.5(g)(2), (3) and (4) shall be used to 
determine whether entities are affiliated for purposes of this 
paragraph.

[[Page 60]]

    (F) The status of a membership organization, and of members, for 
purposes of paragraph (b)(4) of this section, shall be determined 
pursuant to paragraph (b)(4)(iv) of this section and not by provisions 
of state law governing unincorporated associations, trade associations, 
cooperatives, corporations without capital stock, or labor 
organizations.
    (v) For purposes of 11 CFR 100.8(b)(4), election means two separate 
processes in a calendar year, to each of which the $2,000 threshold 
described above applies separately. The first process is comprised of 
all primary elections for Federal office, whenever and wherever held; 
the second process is comprised of all general elections for Federal 
office, whenever and wherever held. The term election shall also include 
each special election held to fill a vacancy in a Federal office (11 CFR 
100.2(f)) or each runoff election (11 CFR 100.2(d)).
    (vi) For purposes of 11 CFR 100.8(b)(4), corporation means any 
separately incorporated entity, whether or not affiliated.
    (vii) When the aggregate costs under 11 CFR 100.8(b)(4) exceed 
$2,000 per election, all costs of the communication(s) shall be reported 
on the filing dates specified in 11 CFR 104.6, and shall include the 
total amount expended for each candidate supported.
    (5) No expenditure results where an individual, in the course of 
volunteering personal services on his or her residential premises to any 
candidate or political committee of a political party, provides the use 
of his or her real or personal property to such candidate for candidate-
related activity or to such political committee of a political party for 
party-related activity. For the purposes of 11 CFR 100.8(b)(5), an 
individual's residential premises shall include a recreation room in a 
residential complex where the individual volunteering services resides, 
provided that the room is available for use without regard to political 
affiliation. A nominal fee paid by such individual for the use of such 
room is not an expenditure.
    (6) No expenditure results where an individual, in the course of 
volunteering personal services to any candidate or political committee 
of a political party, obtains the use of a church or community room and 
provides such room to any candidate for candidate-related activity or to 
any political committee of a political party for party-related activity, 
provided that the room is used on a regular basis by members of the 
community for noncommercial purposes and the room is available for use 
by members of the community without regard to political affiliation. A 
nominal fee paid by such individual for the use of such room is not an 
expenditure.
    (7) The cost of invitations, food, and beverages is not an 
expenditure where such items are voluntarily provided by an individual 
in rendering voluntary personal services on the individual's residential 
premises or in a church or community room as specified at 11 CFR 
100.8(b) (5) and (6) to a candidate for candidate-related activity or to 
a political committee of a political party for party-related activity, 
to the extent that: The aggregate value of such invitations, food and 
beverages provided by the individual on behalf of the candidate does not 
exceed $1,000 with respect to any single election; and on behalf of all 
political committees of each political party does not exceed $2,000 in 
any calendar year.
    (8) The sale of any food or beverage by a vendor (whether 
incorporated or not) for use in a candidate's campaign, or for use by a 
political committee of a political party, at a charge less than the 
normal or comparable commercial charge, is not an expenditure, provided 
that the charge is at least equal to the cost of such food or beverage 
to the vendor, to the extent that: The aggregate value of such discount 
given by the vendor on behalf of any single candidate does not exceed 
$1,000 with respect to any single election; and on behalf of all 
political committees of each political party does not exceed $2,000 in a 
calendar year.
    (9) Any unreimbursed payment for transportation expenses incurred by 
any individual on behalf of any candidate or political committee of a 
political party is not an expenditure to the extent that: The aggregate 
value of the payments made by such individual

[[Page 61]]

on behalf of a candidate does not exceed $1,000 with respect to a single 
election; and on behalf of all political committees of each political 
party does not exceed $2,000 in a calendar year. Additionally, any 
unreimbursed payment from a volunteer's personal funds for usual and 
normal subsistence expenses incident to volunteer activity is not an 
expenditure.
    (10) The payment by a State or local committee of a political party 
of the costs of preparation, display, or mailing or other distribution 
incurred by such committee with respect to a printed slate card, sample 
ballot, palm card, or other printed listing(s) of three or more 
candidates for any public office for which an election is held in the 
State in which the committee is organized is not an expenditure. The 
payment of the portion of such costs allocable to Federal candidates 
must be made from funds subject to the limitations and prohibitions of 
the Act. If made by a political party committee, such payments shall be 
reported by that committee as disbursements, but need not be allocated 
in committee reports to specific candidates. This exemption shall not 
apply to costs incurred by such a committee with respect to the 
preparation and display of listings made on broadcasting stations, or in 
newspapers, magazines, and similar types of general public political 
advertising such as billboards.
    (11) Any payment made or obligation incurred by a corporation or 
labor organization is not an expenditure if under the provisions of 11 
CFR part 114 such payment or obligation would not constitute an 
expenditure by the corporation or labor organization.
    (12) A loan of money by a State bank, a federally chartered 
depository institution (including a national bank) or a depository 
institution whose deposits and accounts are insured by the Federal 
Deposit Insurance Corporation, the Federal Savings and Loan Insurance 
Corporation, or the National Credit Union Administration is not an 
expenditure by the lending institution if such loan is made in 
accordance with applicable banking laws and regulations and is made in 
the ordinary course of business. A loan will be deemed to be made in the 
ordinary course of business if it: Bears the usual and customary 
interest rate of the lending institution for the category of loan 
involved; is made on a basis which assures repayment; is evidenced by a 
written instrument; and is subject to a due date or amortization 
schedule. Such loans shall be reported by the political committee in 
accordance with 11 CFR 104.3(a). Each endorser or guarantor shall be 
deemed to have contributed that portion of the total amount of the loan 
for which he or she agreed to be liable in a written agreement, except 
that, in the event of a signature by the candidate's spouse, the 
provisions of 11 CFR 100.7(a)(1)(i)(D) shall apply. Any reduction in the 
unpaid balance of the loan shall reduce proportionately the amount 
endorsed or guaranteed by each endorser or guarantor in such written 
agreement. In the event that the loan agreement does not stipulate the 
portion of the loan for which each endorser or guarantor is liable, the 
loan shall be considered an expenditure by each endorser or guarantor in 
the same proportion to the unpaid balance that each endorser or 
guarantor bears to the total number of endorsers or guarantors. For the 
purpose of 11 CFR 100.8(b)(12), an overdraft made on a checking or 
savings account shall be considered an expenditure unless: The overdraft 
is made on an account which is subject to automatic overdraft 
protection; and the overdraft is subject to a definite interest rate and 
a definite repayment schedule.
    (i) A loan, including a line of credit, shall be considered made on 
a basis which assures repayment if it is obtained using either of the 
sources of repayment described in paragraphs (b)(12)(i) (A) or (B) of 
this section, or a combination of paragraphs (b)(12)(i) (A) and (B) of 
this section:
    (A)(1) The lending institution making the loan has perfected a 
security interest in collateral owned by the candidate or political 
committee receiving the loan; the fair market value of the collateral is 
equal to or greater than the loan amount and any senior liens as 
determined on the date of the loan; and the candidate or political 
committee provides documentation to show

[[Page 62]]

that the lending institution has a perfected security interest in the 
collateral. Sources of collateral include, but are not limited to, 
ownership in real estate, personal property, goods, negotiable 
instruments, certificates of deposit, chattel papers, stocks, accounts 
receivable and cash on deposit.
    (2) Amounts guaranteed by secondary sources of repayment, such as 
guarantors and cosigners, shall not exceed the contribution limits of 11 
CFR part 110 or contravene the prohibitions of 11 CFR 110.4, part 114 
and part 115; or
    (B) The lending institution making the loan has obtained a written 
agreement whereby the candidate or political committee receiving the 
loan has pledged future receipts, such as public financing payments 
under 11 CFR part 9001 et seq. or part 9031 et seq., contributions, or 
interest income, provided that:
    (1) The amount of the loan(s) obtained the basis of such funds does 
not exceed the amount of pledged funds;
    (2) Loan amounts are based on a reasonable expectation of the 
receipt of pledged funds. To that end, the candidate or political 
committee must furnish the lending institution documentation, i.e., cash 
flow charts or other financial plans, that reasonably establish that 
such future funds will be available;
    (3) A separate depository account is established at the lending 
institution or the lender obtains an assignment from the candidate or 
political committee to access funds in a committee account at another 
depository institution that meets the requirements of 11 CFR 103.2, and 
the committee has notified the other institution of this assignment;
    (4) The loan agreement requires the deposit of the public financing 
payments, contributions, interest or other income pledged as collateral 
into the separate depository account for the purpose of retiring the 
debt according to the repayment requirements of the loan; and
    (5) In the case of public financing payments, the borrower 
authorizes the Secretary of the Treasury to directly deposit the 
payments into the depository account for the purpose of retiring the 
debt.
    (ii) If the requirements set forth in paragraph (b)(12)(i) of this 
section are not met, the Commission will consider the totality of 
circumstances on a case-by-case basis in determining whether a loan was 
made on a basis which assures repayment.
    (13) A purchase, payment, distribution, loan, advance, or deposit of 
money or anything of value made to a national committee or a state 
committee of a political party is not an expenditure if it is 
specifically designated to defray any cost incurred for construction or 
purchase of any office facility which is not acquired for the purpose of 
influencing the election of any candidate in any particular election for 
Federal office. If such purchase, payment, distribution, loan, advance, 
or deposit of money or anything of value is made to a committee which is 
not a political committee under 11 CFR 100.5, the amount need not be 
reported. However, if such purchase, payment, distribution, loan, 
advance, or deposit of money or anything of value is made to a political 
committee, it shall be reported in accordance with 11 CFR 104.3(g).
    (14) Legal or accounting services rendered to or on behalf of any 
political committee of a political party are not expenditures if the 
person paying for such services is the regular employer of the 
individual rendering the services and such services are not attributable 
to activities which directly further the election of any designated 
candidate for Federal office. For purposes of 11 CFR 100.8(b)(14), a 
partnership shall be deemed to be the regular employer of a partner. 
Amounts paid by the regular employer for such services shall be reported 
by the committee receiving such services in accordance with 11 CFR 
104.3(h).
    (15) Legal or accounting services rendered to or on behalf of an 
authorized committee of a candidate or any other political committee are 
not expenditures if the person paying for such services is the regular 
employer of the individual rendering such services and if the services 
are solely to ensure compliance with the Act or 26 U.S.C. 9001 et seq. 
and 9032 et seq. For purposes of 11 CFR 100.8(b)(15), a partnership 
shall be deemed to be the regular employer of a

[[Page 63]]

partner. Amounts paid by the regular employer for these services shall 
be reported by the committee receiving such services in accordance with 
11 CFR 104.3(h). Expenditures for these services by a candidate 
certified to receive Primary Matching Funds under 11 CFR part 9034 do 
not count against such candidate's expenditure limitations under 11 CFR 
part 9035 or 11 CFR 110.8. Unless paid for with federal funds received 
pursuant to 11 CFR part 9005, disbursements for these services by a 
candidate who is certified to receive payments from the Presidential 
Election Campaign Fund under 11 CFR part 9005 do not count against that 
candidate's expenditure limitations under 11 CFR 110.8.
    (16) The payment by a state or local committee of a political party 
of the costs of campaign materials (such as pins, bumper stickers, 
handbills, brochures, posters, party tabloids or newsletters, and yard 
signs) used by such committee in connection with volunteer activities on 
behalf of any nominee(s) of such party is not an expenditure, provided 
that the following conditions are met.
    (i) Such payment is not for costs incurred in connection with any 
broadcasting, newspaper, magazine, billboard, direct mail, or similar 
type of general public communication or political advertising. For the 
purposes of 11 CFR 100.8(b)(16)(i), the term direct mail means any 
mailing(s) by a commercial vendor or any mailing(s) made from commercial 
lists.
    (ii) The portion of the cost of such materials allocable to Federal 
candidates is paid from contributions subject to the limitations and 
prohibitions of the Act.
    (iii) Such payment is not made from contributions designated by the 
donor to be spent on behalf of a particular candidate or candidates for 
Federal office. For purposes of 11 CFR 100.8(b)(16)(iii), a contribution 
shall not be considered a designated contribution if the party committee 
disbursing the funds makes the final decision regarding which 
candidate(s) shall receive the benefit of such disbursement.
    (iv) Such materials are distributed by volunteers and not by 
commercial or for-profit operations. For the purposes of 11 CFR 
100.8(b)(16)(iv), payments by the party organization for travel and 
subsistence or customary token payments to volunteers do not remove such 
individuals from the volunteer category.
    (v) If made by a political party committee, such payments shall be 
reported by that committee as disbursements, in accordance with 11 CFR 
104.3, but need not be allocated to specific candidates in committee 
reports.
    (vi) Payments by a State candidate or his or her campaign committee 
to a State or local political party committee for the State candidate's 
share of expenses for such campaign materials are not expenditures, 
provided the amount paid by the State candidate or his or her committee 
does not exceed his or her proportionate share of the expenses.
    (vii) Campaign materials purchased by the national committee of a 
political party and delivered to a State or local party committee, or 
materials purchased with funds donated by the national committee to such 
State or local committee for the purchase of such materials, shall not 
qualify under this exemption. Rather, the cost of such materials shall 
be subject to the limitations of 2 U.S.C. 441a(d) and 11 CFR 110.7.
    (17) The payment by a candidate for any public office (including 
State or local office), or by such candidate's authorized committee, of 
the costs of that candidate's campaign materials which include 
information on or any reference to a candidate for Federal office and 
which are used in connection with volunteer activities (such as pins, 
bumper stickers, handbills, brochures, posters, and yard signs) is not 
an expenditure on behalf of such candidate for Federal office, provided 
that the payment is not for the use of broadcasting, newspapers, 
magazines, billboards, direct mail or similar types of general public 
communication or political advertising. The payment of the portion of 
the cost of such materials allocable to Federal candidates shall be made 
from contributions subject to the limitations and prohibitions of the 
Act. For purposes of 11 CFR 100.8(b)(17), the term direct mail means 
mailings by commercial vendors or mailings made

[[Page 64]]

from lists which were not developed by the candidate.
    (18) The payment by a State or local committee of a political party 
of the costs of voter registration and get-out-the-vote activities 
conducted by such committee on behalf of the Presidential and Vice 
Presidential nominee(s) of that party is not an expenditure for the 
purpose of influencing the election of such candidates provided that the 
following conditions are met:
    (i) Such payment is not for the costs incurred in connection with 
any broadcasting, newspaper, magazine, billboard, direct mail, or 
similar type of general public communication or political advertising. 
For purposes of 11 CFR 100.8(b)(18)(i), the term direct mail means any 
mailing(s) by a commercial vendor or any mailing(s) made from commercial 
lists.
    (ii) The portion of the costs of such activities allocable to 
Federal candidates is paid from contributions subject to the limitations 
and prohibitions of the Act.
    (iii) Such payment is not made from contributions designated to be 
spent on behalf of a particular candidate or candidates for Federal 
office. For the purposes of 11 CFR 100.8(b)(18)(iii), a contribution 
shall not be considerd a designated contribution if the party committee 
disbursing the funds makes the final decision regarding which 
candidate(s) shall receive the benefit of such disbursement.
    (iv) For purposes of 11 CFR 100.8(b)(18), if such activities include 
references to any candidate(s) for the House or Senate, the costs of 
such activities which are allocable to that candidate(s) shall be an 
expenditure on behalf of such candidate(s) unless the mention of such 
candidate(s) is merely incidental to the overall activity.
    (v) For purposes of 11 CFR 100.8(b)(18), payment of the costs 
incurred in the use of phone banks in connection with voter registration 
and get-out-the-vote activities is not an expenditure when such phone 
banks are operated by volunteer workers. The use of paid professionals 
to design the phone bank system, develop calling instructions and train 
supervisors is permissible. The payment of the costs of such 
professional services is not an expenditure but shall be reported as a 
disbursement in accordance with 11 CFR 104.3 if made by a political 
committee.
    (vi) If made by a political committee, such payments for voter 
registration and get-out-the-vote activities shall be reported by that 
committee as disbursements, in accordance with 11 CFR 104.3 but such 
payments need not be allocated to specific candidates in committee 
reports except as provided in 11 CFR 100.8(b)(18)(iv).
    (vii) Payments made from funds donated by a national committee of a 
political party to a State or local party committee for voter 
registration and get-out-the-vote activities shall not qualify under 
this exemption. Rather, such funds shall be subject to the limitations 
of 2 U.S.C. 441a(d) and 11 CFR 110.7.
    (19) Amounts transferred by a party committee to another party 
committee or payments made to the appropriate State official of fees 
collected from candidates or their authorized committees as a condition 
of ballot access are not expenditures.
    (20) A purchase, payment, distribution, loan, advance, or deposit of 
money or anything of value made with respect to a recount of the results 
of a Federal election, or an election contest concerning a Federal 
election, is not an expenditure except that the prohibitions of 11 CFR 
110.4(a) and part 114 apply.
    (21)(i) Any costs incurred by a candidate or his or her authorized 
committee(s) in connection with the solicitation of contributions are 
not expenditures if incurred by a candidate who has been certified to 
receive Presidential Primary Matching Fund Payments, or by a candidate 
who has been certified to receive general election public financing 
under 26 U.S.C. 9004 and who is soliciting contributions in accordance 
with 26 U.S.C. 9003(b)(2) or 9003(c)(2) to the extent that the aggregate 
of such costs does not exceed 20 percent of the expenditure limitation 
applicable to the candidate. These costs shall, however, be reported as 
disbursements pursuant to 11 CFR part 104.
    (ii) For a candidate who has been certified to receive general 
election public

[[Page 65]]

financing under 26 U.S.C. 9004 and who is soliciting contributions in 
accordance with 26 U.S.C. 9003(b)(2) or 9003(c)(2), in connection with 
the solicitation of contributions means any cost reasonably related to 
fundraising activity, including the costs of printing and postage, the 
production of and space or air time for, advertisements used for 
fundraising, and the costs of meals, beverages, and other costs 
associated with a fundraising reception or dinner.
    (iii) For a candidate who has been certified to receive Presidential 
Primary Matching Fund Payments, the costs that may be exempted as 
fundraising expenses under this section shall not exceed 20% of the 
overall expenditure limitation under 11 CFR 9035.1, and shall equal the 
total of:
    (A) All amounts excluded from the state expenditure limitations for 
exempt fundraising activities under 11 CFR 110.8(c)(2), plus
    (B) An amount of costs that would otherwise be chargeable to the 
overall expenditure limitation but that are not chargeable to any state 
expenditure limitation, such as salary and travel expenses. See 11 CFR 
106.2.
    (22) Payments by a candidate from his or her personal funds, as 
defined at 11 CFR 110.10(b), for the candidate's routine living expenses 
which would have been incurred without candidacy, including the cost of 
food and residence, are not expenditures. Payments for such expenses by 
a member of the candidate's family as defined in 11 CFR 113.1(g)(7), are 
not expenditures if the payments are made from an account jointly held 
with the candidate, or if the expenses were paid by the family member 
before the candidate became a candidate.
    (23) Funds used to defray costs incurred in staging candidate 
debates in accordance with the provisions of 11 CFR 110.13 and 114.4(f).
    (c) For purposes of 11 CFR 100.8 (a) and (b), a payment made by an 
individual shall not be attributed to any other individual, unless 
otherwise specified by that other individual. To the extent that a 
payment made by an individual qualifies as a contribution, the 
provisions of 11 CFR 110.1(k) shall apply.

[45 FR 15094, Mar. 7, 1980; 45 FR 23642, Apr. 8, 1980, as amended at 45 
FR 43387, June 27, 1980; 48 FR 19020, Apr. 27, 1983; 50 FR 9994, Mar. 
13, 1985; 52 FR 773, Jan. 9, 1987; 56 FR 35908, July 29, 1991; 56 FR 
67123, Dec. 27, 1991; 58 FR 45774, Aug. 30, 1993; 60 FR 7874, Feb. 9, 
1995; 60 FR 64272, Dec. 14, 1995; 61 FR 18051, Apr. 24, 1996; 64 FR 
41272, July 30, 1999]



Sec. 100.9  Commission (2 U.S.C. 431(10)).

    Commission means the Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463.

[45 FR 15094, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 100.10  Person (2 U.S.C. 431(11)).

    Person means an individual, partnership, committee, association, 
corporation, labor organization, and any other organization, or group of 
persons, but does not include the Federal government or any authority of 
the Federal government.



Sec. 100.11  State (2 U.S.C. 431(12)).

    State means each State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, and any territory or 
possession of the United States.



Sec. 100.12  Identification (2 U.S.C. 431(13)).

    Identification means, in the case of an individual, his or her full 
name, including: First name, middle name or initial, if available, and 
last name; mailing address; occupation; and the name of his or her 
employer; and, in the case of any other person, the person's full name 
and address.



Sec. 100.13  National committee (2 U.S.C. 431(14)).

    National committee means the organization which, by virtue of the 
bylaws of a political party, is responsible for the day-to-day operation 
of the political party at the national level, as determined by the 
Commission.



Sec. 100.14  State committee, subordinate committee (2 U.S.C. 431(15)).

    (a) State committee means the organization which by virtue of the 
bylaws of a political party, is responsible for the

[[Page 66]]

day-to-day operation of the political party at the State level, as 
determined by the Commission.
    (b) Subordinate committee of a State committee means any 
organization which is responsible for the day-to-day operation of the 
political party at the level of city, county, neighborhood, ward, 
district, precinct, or any other subdivision of a State or any 
organization under the control or direction of the State committee.



Sec. 100.15  Political party (2 U.S.C. 431(16)).

    Political party means an association, committee, or organization 
which nominates or selects a candidate for election to any Federal 
office, whose name appears on an election ballot as the candidate of the 
association, committee, or organization.



Sec. 100.16  Independent expenditure (2 U.S.C. 431(17)).

    The term independent expenditure means an expenditure for a 
communication by a person expressly advocating the election or defeat of 
a clearly identified candidate which is made without cooperation or 
consultation with any candidate, or any authorized committee or agent of 
such candidate, and which is not made in concert with, or at the request 
or suggestion of, any candidate, or any authorized committee or agent of 
such candidate.



Sec. 100.17  Clearly identified (2 U.S.C. 431(18)).

    The term clearly identified means the candidate's name, nickname, 
photograph, or drawing appears, or the identity of the candidate is 
otherwise apparent through an unambiguous reference such as ``the 
President,'' ``your Congressman,'' or ``the incumbent,'' or through an 
unambiguous reference to his or her status as a candidate such as ``the 
Democratic presidential nominee'' or ``the Republican candidate for 
Senate in the State of Georgia.''

[60 FR 35304, July 6, 1995]



Sec. 100.18  Act (2 U.S.C. 431(19)).

    Act means the Federal Election Campaign Act of 1971 (Pub. L. 92-
225), as amended in 1974 (Pub. L. 93-443), 1976 (Pub. L. 94-283), 1977 
(Pub. L. 95-216) and 1980 (Pub. L. 96-187).



Sec. 100.19  File, filed or filing (2 U.S.C. 434(a)).

    With respect to reports, statements, notices, and designations 
required to be filed under 11 CFR parts 101, 102, 104, 105, 107, 108 and 
109, and any modifications or amendments thereto, the terms file, filed 
and filing mean either of the following actions:
    (a) A document is timely filed upon delivery to the Federal Election 
Commission, 999 E Street, NW., Washington, DC 20463; or the Secretary of 
the United States Senate, Office of Public Records, 119 D Street NE., 
Washington, DC 20510 as required by 11 CFR part 105, by the close of the 
prescribed filing date.
    (b) A document is timely filed upon deposit as registered or 
certified mail in an established U.S. Post Office and postmarked no 
later than midnight of the day of the filing date, except that pre-
election reports so mailed must be postmarked no later than midnight of 
the fifteenth day before the date of the election. Reports and 
statements sent by first class mail must be received by the close of 
business of the prescribed filing date to be timely filed.

[45 FR 15094, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985; 61 
FR 6095, Feb. 16, 1996]



Sec. 100.20  Occupation (2 U.S.C. 431(13)).

    Occupation means the principal job title or position of an 
individual and whether or not self-employed.



Sec. 100.21  Employer (2 U.S.C. 431(13)).

    Employer means the organization or person by whom an individual is 
employed, and not the name of his or her supervisor.



Sec. 100.22  Expressly advocating (2 U.S.C. 431(17)).

    Expressly advocating means any communication that--(a) Uses phrases 
such as ``vote for the President,'' ``re-elect your Congressman,'' 
``support the Democratic nominee,'' ``cast your ballot for the 
Republican challenger for U.S. Senate in Georgia,'' ``Smith for 
Congress,'' ``Bill McKay in '94,'' ``vote

[[Page 67]]

Pro-Life'' or ``vote Pro-Choice'' accompanied by a listing of clearly 
identified candidates described as Pro-Life or Pro-Choice, ``vote 
against Old Hickory,'' ``defeat'' accompanied by a picture of one or 
more candidate(s), ``reject the incumbent,'' or communications of 
campaign slogan(s) or individual word(s), which in context can have no 
other reasonable meaning than to urge the election or defeat of one or 
more clearly identified candidate(s), such as posters, bumper stickers, 
advertisements, etc. which say ``Nixon's the One,'' ``Carter '76,'' 
``Reagan/Bush'' or ``Mondale!''; or
    (b) When taken as a whole and with limited reference to external 
events, such as the proximity to the election, could only be interpreted 
by a reasonable person as containing advocacy of the election or defeat 
of one or more clearly identified candidate(s) because--
    (1) The electoral portion of the communication is unmistakable, 
unambiguous, and suggestive of only one meaning; and
    (2) Reasonable minds could not differ as to whether it encourages 
actions to elect or defeat one or more clearly identified candidate(s) 
or encourages some other kind of action.

[60 FR 35304, July 6, 1995]



PART 101--CANDIDATE STATUS AND DESIGNATIONS (2 U.S.C. 432(e))--Table of Contents




Sec.
101.1  Candidate designations (2 U.S.C. 432(e)(1)).
101.2  Candidate as agent of authorized committee (2 U.S.C. 432(e)(2)).
101.3  Funds received or expended prior to becoming a candidate (2 
          U.S.C. 432(e)(2)).

    Authority: 2 U.S.C. 432(e), 438(a)(f).



Sec. 101.1  Candidate designations (2 U.S.C. 432(e)(1)).

    (a) Principal Campaign Committee. Within 15 days after becoming a 
candidate under 11 CFR 100.3, each candidate, other than a nominee for 
the office of Vice President, shall designate in writing a principal 
campaign committee in accordance with 11 CFR 102.12. A candidate shall 
designate his or her principal campaign committee by filing a Statement 
of Candidacy on FEC Form 2, or by filing a letter containing the same 
information (that is, the individual's name and address, party 
affiliation and office sought, the District and State in which Federal 
office is sought, and the name and address of his or her principal 
campaign committee) at the place of filing specified at 11 CFR part 105. 
Each principal campaign committee shall register, designate a depository 
and report in accordance with 11 CFR parts 102, 103 and 104.
    (b) Authorized committees. A candidate may designate additional 
political committees in accordance with 11 CFR 102.13 to serve as 
committees which will be authorized to accept contributions or make 
expenditures on behalf of the candidate. For each such authorized 
committee, other than a principal campaign committee, the candidate 
shall file a written designation with his or her principal campaign 
committee. The principal campaign committee shall file such designations 
at the place of filing specified at 11 CFR part 105.

[45 FR 15103, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980]



Sec. 101.2  Candidate as agent of authorized committee (2 U.S.C. 432(e)(2)).

    (a) Any candidate who receives a contribution as defined at 11 CFR 
100.7, obtains any loan, or makes any disbursement, in connection with 
his or her campaign shall be considered as having received such 
contribution, obtained such loan or made such disbursement as an agent 
of his or her authorized committee(s).
    (b) When an individual becomes a candidate, any funds received, 
loans obtained, or disbursements made prior to becoming a candidate in 
connection with his or her campaign shall be deemed to have been 
received, obtained or made as an agent of his or her authorized 
committee(s).

[45 FR 15103, Mar. 7, 1980]



Sec. 101.3  Funds received or expended prior to becoming a candidate (2 U.S.C. 432(e)(2)).

    When an individual becomes a candidate, all funds received or 
payments made in connection with activities conducted under 11 CFR 
100.7(b)(1) and

[[Page 68]]

11 CFR 100.8(b)(1) or his or her campaign prior to becoming a candidate 
shall be considered contributions or expenditures under the Act and 
shall be reported in accordance with 11 CFR 104.3 in the first report 
filed by such candidate's principal campaign committee. The individual 
shall keep records of the name of each contributor, the date of receipt 
and amount of all contributions received (see 11 CFR 102.9(a)), and all 
expenditures made (see 11 CFR 102.9(b)) in connection with activities 
conducted under 11 CFR 100.7(b)(1) and 11 CFR 100.8(b)(1) or the 
individual's campaign prior to becoming a candidate.

[50 FR 9995, Mar. 13, 1985]



PART 102--REGISTRATION, ORGANIZATION, AND RECORDKEEPING BY POLITICAL COMMITTEES (2 U.S.C. 433)--Table of Contents




Sec.
102.1  Registration of political committees (2 U.S.C. 433(a)).
102.2  Statement of organization: Forms and committee identification 
          number (2 U.S.C. 433 (b), (c)).
102.3  Termination of registration (2 U.S.C. 433(d)(1)).
102.4  Administrative termination (2 U.S.C. 433(d)(2)).
102.5  Organizations financing political activity in connection with 
          Federal and non-Federal elections, other than through 
          transfers and joint fundraisers.
102.6  Transfers of funds; collecting agents.
102.7  Organization of political committees (2 U.S.C. 432(a)).
102.8  Receipt of contributions (2 U.S.C. 432(b)).
102.9  Accounting for contributions and expenditures (2 U.S.C. 432(c)).
102.10  Disbursement by check (2 U.S.C. 432(h)(1)).
102.11  Petty cash fund (2 U.S.C. 432(h)(2)).
102.12  Designation of principal campaign committee (2 U.S.C. 432(e) (1) 
          and (3)).
102.13  Authorization of political committees (2 U.S.C. 432(e) (1) and 
          (3)).
102.14  Names of political committees (2 U.S.C. 432(e) (4) and (5)).
102.15  Commingled funds (2 U.S.C. 432(a)(3)).
102.16  Notice: Solicitation of contributions (2 U.S.C. 441d).
102.17  Joint fundraising by committees other than separate segregated 
          funds.

    Authority: 2 U.S.C. 432, 433, 438(a)(8), 441d.

    Source: 45 FR 15104, Mar. 7, 1980, unless otherwise noted.



Sec. 102.1  Registration of political committees (2 U.S.C. 433(a)).

    (a) Principal campaign committees. Each principal campaign committee 
shall file a Statement of Organization in accordance with 11 CFR 102.2 
no later than 10 days after designation pursuant to 11 CFR 101.1. In 
addition, each principal campaign committee shall file all designations, 
statements and reports which are filed with such committee at the place 
of filing specified at 11 CFR part 105.
    (b) Authorized committees. Each authorized committee(s) shall file 
only one Statement of Organization in accordance with 11 CFR 102.2 no 
later than 10 days after designation pursuant to 11 CFR 101.1. Such 
Statement(s) shall be filed with the principal campaign committee of the 
authorizing candidate.
    (c) Separate segregated funds. Each separate segregated fund 
established under 2 U.S.C. 441b(b)(2)(C) shall file a Statement of 
Organization with the Federal Election Commission no later than 10 days 
after establishment. This requirement shall not apply to a fund 
established solely for the purpose of financing political activity in 
connection with State or local elections. Examples of establishment 
events after which a fund would be required to register include, but are 
not limited to: A vote by the board of directors or comparable governing 
body of an organization to create a separate segregated fund to be used 
wholly or in part for federal elections; selection of initial officers 
to administer such a fund; or payment of the initial operating expenses 
of such a fund.
    (d) Other political committees. All other committees shall file a 
Statement of Organization no later than 10 days after becoming a 
political committee within the meaning of 11 CFR 100.5. Such 
statement(s) shall be filed at the place of filing specified at 11 CFR 
part 105.



Sec. 102.2  Statement of organization: Forms and committee identification number (2 U.S.C. 433 (b), (c)).

    (a) Forms. (1) The Statement of Organization shall be filed in 
accordance with 11 CFR part 105 on Federal Election Commission Form 1, 
which may be

[[Page 69]]

obtained from the Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463. The Statement shall be signed by the treasurer and 
shall include the following information:
    (i) The name, address, and type of committee;
    (ii) The name, address, relationship, and type of any connected 
organization or affiliated committee in accordance with 11 CFR 102.2(b);
    (iii) The name, address, and committee position of the custodian of 
books and accounts of the committee;
    (iv) The name and address of the treasurer of the committee;
    (v) If the committee is authorized by a candidate, the name, office 
sought (including State and Congressional district, when applicable) and 
party affiliation of the candidate; and the address to which 
communications should be sent;
    (vi) A listing of all banks, safe deposit boxes, or other 
depositories used by the committee.
    (2) Any change or correction in the information previously filed in 
the Statement of Organization shall be reported no later than 10 days 
following the date of the change or correction by filing an amended 
Statement of Organization or by filing a letter noting the change(s). 
The amendment need list only the name of such committee and the change 
or correction.
    (3) A committee shall certify to the Commission that it has 
satisfied the criteria for becoming a multicandidate committee set forth 
at 11 CFR 100.5(e)(3) by filing FEC Form 1M before it makes any 
contributions to candidates that exceed $1000 per election.
    (b) For purposes of 11 CFR 102.2(a)(1)(ii), political committees 
shall disclose the names of any connected organization(s) or affiliated 
committee(s) in accordance with 11 CFR 102.2(b) (1) and (2).
    (1) Affiliated committee includes any committee defined in 11 CFR 
100.5(g), 110.3(a) or (b), or 110.14(j) or (k).
    (i) A principal campaign committee is required to disclose the names 
and addresses of all other authorized committees which have been 
authorized by its candidate, and all other unauthorized committees that 
are affiliated with the principal campaign committee. Authorized 
committees, and unauthorized committees that are affiliated, need only 
disclose the name of their principal campaign committee.
    (ii)(A) Political committees established by a single parent 
corporation, a single national or international union, a single 
organization or federation of national or international unions, a single 
national membership organization or trade association, or any other 
similar group of persons (other than political party organizations) are 
required to disclose the names and addresses of all political committees 
established by any subsidiary, or by any State, local, or other 
subordinate unit of a national or international union or federation 
thereof, or by any subordinate units of a national membership 
organization, trade association, or other group of persons (other than 
political party organizations).
    (B) Political committees established by subsidiaries, or by State, 
local, or other subordinate units are only required to disclose the name 
and address of each political committee established by their parent or 
superior body, e.g., parent corporation, national or international union 
or organization or federation of such unions, or national organization 
or trade association.
    (2) Connected organization includes any organization defined at 11 
CFR 100.6.
    (c) Committee identification number. Upon receipt of a Statement of 
Organization under 11 CFR part 102 by the Commission, an identification 
number shall be assigned to the committee, receipt shall be 
acknowledged, and the political committee shall be notified of the 
number assigned. This identification number shall be entered by the 
political committee on all subsequent reports or statements filed under 
the Act, as well as on all communications concerning reports and 
statements.

[45 FR 15104, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985; 54 
FR 34109, Aug. 17, 1989; 54 FR 48580, Nov. 24, 1989; 58 FR 42173, Aug. 
6, 1993]



Sec. 102.3  Termination of registration (2 U.S.C. 433(d)(1)).

    (a)(1) A political committee (other than a principal campaign 
committee)

[[Page 70]]

may terminate only upon filing a termination report on the appropriate 
FEC Form or upon filing a written statement containing the same 
information at the place of filing specified at 11 CFR part 105. Except 
as provided in 11 CFR 102.4(c), only a committee which will no longer 
receive any contributions or make any disbursements that would otherwise 
qualify it as a political committee may terminate, provided that such 
committee has no outstanding debts and obligations. In addition to the 
Notice, the committee shall also provide a final report of receipts and 
disbursements, which report shall include a statement as to the purpose 
for which such residual funds will be used, including a statement as to 
whether such residual funds will be used to defray expenses incurred in 
connection with an individual's duties as a holder of federal office.
    (2) An authorized committee of a qualified Member, as defined at 11 
CFR 113.1(f), shall comply with the requirements of 11 CFR 113.2 before 
any excess funds are converted to such Member's personal use. All other 
authorized committees shall include in their termination reports a 
statement signed by the treasurer, stating that no noncash committee 
assets will be converted to personal use.
    (b) Except as provided at 11 CFR 102.4, a principal campaign 
committee may not terminate until it has met the requirements of 11 CFR 
102.3(a) and until all debts of any other authorized committee(s) of the 
candidate have been extinguished.

[45 FR 15104, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980; 56 
FR 34126, July 25, 1991]



Sec. 102.4  Administrative termination (2 U.S.C. 433(d)(2)).

    (a) The Commission, on its own initiative or upon the request of the 
political committee itself, may administratively terminate a political 
committee's reporting obligation on the basis of the following factors:
    (1) The committee's aggregate reported financial activity in one 
year is less than $5000;
    (2) The committee's reports disclose no receipt of contributions for 
the previous year;
    (3) The committee's last report disclosed minimal expenditures;
    (4) The committee's primary purpose for filing its reports has been 
to disclose outstanding debts and obligations;
    (5) The committee has failed to file reports for the previous year;
    (6) The committee's last report disclosed that the committee's 
outstanding debts and obligations do not appear to present a possible 
violation of the prohibitions and limitations of 11 CFR parts 110 and 
114;
    (7) The committee's last report disclosed that the Committee does 
not have substantial outstanding accounts receivable;
    (8) The committee's outstanding debts and obligations exceed the 
total of the committee's reported cash on hand balance.
    (b) The Commission shall send a notification to the committee 
treasurer of its intent to administratively terminate that committee and 
may request the treasurer to submit information with regard to the 
factors set forth at 11 CFR 102.4(a). The treasurer shall respond, in 
writing, within 30 days of receipt of the Commission's notice or request 
and if the committee objects to such termination, the committee's 
response shall so state.
    (c) The Commission shall administratively terminate a committee if 
such committee fails to object to the Commission's action under 11 CFR 
102.4(b) and the Commission determines that either:
    (1) The committee has complied with the debt settlement procedures 
set forth at 11 CFR part 116.
    (2) The Commission has approved the forgiveness of any loan(s) owed 
the committee which would have otherwise been considered a contribution 
under the Act in violation of 11 CFR part 110;
    (3) It does not appear from evidence available that a contribution 
in violation of 11 CFR parts 110 and 114 will result.

[45 FR 15104, Mar. 7, 1980, as amended at 60 FR 64273, Dec. 14, 1995]

[[Page 71]]



Sec. 102.5  Organizations financing political activity in connection with Federal and non-Federal elections, other than through transfers and joint fundraisers.

    (a) Organizations that are political committees under the Act
    (1) Each organization, including a party committee, which finances 
political activity in connection with both federal and non-federal 
elections and which qualifies as a political committee under 11 CFR 
100.5 shall either:
    (i) Establish a separate federal account in a depository in 
accordance with 11 CFR part 103. Such account shall be treated as a 
separate federal political committee which shall comply with the 
requirements of the Act including the registration and reporting 
requirements of 11 CFR parts 102 and 104. Only funds subject to the 
prohibitions and limitations of the Act shall be deposited in such 
separate federal account. All disbursements, contributions, expenditures 
and transfers by the committee in connection with any federal election 
shall be made from its federal account. No transfers may be made to such 
federal account from any other account(s) maintained by such 
organization for the purpose of financing activity in connection with 
non-federal elections, except as provided in 11 CFR 106.5(g) and 
106.6(e). Administrative expenses shall be allocated pursuant to 11 CFR 
part 106 between such federal account and any other account maintained 
by such committee for the purpose of financing activity in connection 
with non-federal elections; or
    (ii) Establish a political committee which shall receive only 
contributions subject to the prohibitions and limitations of the Act, 
regardless of whether such contributions are for use in connection with 
federal or non-federal elections. Such organization shall register as a 
political committee and comply with the requirements of the Act.
    (2) Only contributions meeting the conditions set forth at 
subsections (i), (ii), and (iii) of this section may be deposited in a 
federal account established under 11 CFR 102.5(a)(1)(i) or may be 
received by a political committee established under 11 CFR 
102.5(a)(1)(ii).
    (i) Contributions designated for the federal account;
    (ii) Contributions that result from a solicitation which expressly 
states that the contribution will be used in connection with a federal 
election; and
    (iii) Contributions from contributors who are informed that all 
contributions are subject to the prohibitions and limitations of the 
Act.
    (3) Any party committee solicitation that makes reference to a 
federal candidate or a federal election shall be presumed to be for the 
purpose of influencing a federal election, and contributions resulting 
from that solicitation shall be subject to the prohibitions and 
limitations of the Act. This presumption may be rebutted by 
demonstrating to the Commission that the funds were solicited with 
express notice that they would not be used for federal election 
purposes.
    (b) Organizations that are not political committees under the Act
    (1) Any organization that makes contributions or expenditures but 
does not qualify as a political committee under 11 CFR 100.5 and any 
State or local party organization that makes contributions, expenditures 
and exempted payments under 11 CFR 100.7(b)(9), (15) and (17) and 
100.8(b)(10), (16) and (18) shall either:
    (i) Establish a separate account to which only funds subject to the 
prohibitions and limitations of the Act shall be deposited and from 
which contributions, expenditures and exempted payments shall be made. 
Such organization shall keep records of deposits to and disbursements 
from such account and, upon request, shall make such records available 
for examination by the Commission.
    (ii) Demonstrate through a reasonable accounting method that 
whenever such organization makes a contribution, expenditure or exempted 
payment, that organization has received sufficient funds subject to the 
limitations and prohibitions of the Act to make such contribution, 
expenditure or payment. Such organization shall keep records of amounts 
received or expended under this subsection and, upon

[[Page 72]]

request, shall make such records available for examination by the 
Commission.

[45 FR 15104, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980; 55 
FR 26067, June 26, 1990]



Sec. 102.6  Transfers of funds; collecting agents.

    (a) Transfers of funds; registration and reporting required--(1) Who 
may make transfers under this section. (i) Transfers of funds may be 
made without limit on amount between affiliated committees whether or 
not they are political committees under 11 CFR 100.5.
    (ii) Transfers of funds may be made without limit on amount between 
or among a national party committee, a State party committee and/or any 
subordinate party committee whether or not they are political committees 
under 11 CFR 100.5 and whether or not such committees are affiliated.
    (iii) Transfers of joint fundraising proceeds may be made without 
limit on amount between organizations or committees participating in the 
joint fundraising activity provided that no participating committee or 
organization governed by 11 CFR 102.17 received more than its allocated 
share of the funds raised.
    (iv) Transfers under paragraphs (a)(1) (i) through (iii) shall be 
made only from funds which are permissible under the Act. See 11 CFR 
parts 110, 114 and 115.
    (2) When registration and reporting required. Except as provided in 
11 CFR 102.6(b), organizations or committees making transfers under 11 
CFR 102.6(a)(1) shall count such transfers against the reporting 
thresholds of the Act for determining whether an organization or 
committee is a political committee under 11 CFR 100.5.
    (b) Fundraising by collecting agents; No reporting required--(1) 
Definition of collecting agent. A collecting agent is an organization or 
committee that collects and transmits contributions to one or more 
separate segregated funds to which the collecting agent is related. A 
collecting agent may be either:
    (i) A committee, whether or not it is a political committee as 
defined in 11 CFR 100.5, affiliated with the separate segregated fund 
under 11 CFR 110.3; or
    (ii) The connected organization of the separate segregated fund as 
defined in 11 CFR 100.6; or
    (iii) A parent, subsidiary, branch, division, department, or local 
unit of the connected organization of the separate segregated fund; or
    (iv) A local, national or international union collecting 
contributions on behalf of the separate segregated fund of any 
federation with which the local, national or international union is 
affiliated. See 11 CFR 114.1(e).
    (2) Collecting agent not required to report. A collecting agent that 
is an unregistered organization and that follows the procedures of 11 
CFR 102.6(c) is not required to register and report as a political 
committee under 11 CFR parts 102 and 104, provided that the organization 
does not engage in other activities such as making contributions or 
expenditures for the purpose of influencing federal elections.
    (3) Who is not a collecting agent--(i) Commercial fundraising firm. 
A separate segregated fund or a collecting agent may hire a commercial 
fundraising firm to assist in fundraising; however, the commercial 
fundraising firm shall not be considered as a collecting agent for the 
purpose of this section. Rather, the commercial fundraising firm shall 
be considered to be the agent of the separate segregated fund or 
collecting agent.
    (ii) Individuals. An individual who collects contributions for a 
separate segregated fund shall not be considered a collecting agent for 
the purpose of this section. Individuals who collect contributions are 
subject to the requirements of 11 CFR 102.8 and the provisions of 11 CFR 
part 110.
    (4) Separate segregated fund may collect contributions. Nothing in 
this section shall preclude a separate segregated fund from soliciting 
and collecting contributions on its own behalf.
    (c) Procedures for collecting agents--(1)Separate segregated fund 
responsible for acts of collecting agent. The separate segregated fund 
shall be responsible for ensuring that the recordkeeping, reporting and 
transmittal requirements of this section are met.

[[Page 73]]

    (2) Solicitation for contributions. A collecting agent may include a 
solicitation for voluntary contributions to a separate segregated fund 
in a bill for membership dues or other payments such as conference 
registration fees or a solicitation for contributions to the collecting 
agent. The collecting agent may only solicit contributions from those 
persons permitted to be solicited under 11 CFR part 114. The 
solicitation for contributions must meet all of the requirements for 
proper solicitations under 11 CFR 114.5.
    (i) The collecting agent may pay any or all of the costs incurred in 
soliciting and transmitting contributions to the separate segregated 
fund.
    (ii) If the separate segregated fund pays any solicitation or other 
administrative expense from its own account, which expense could be paid 
for as an administrative expense by the collecting agent, the collecting 
agent may reimburse the separate segregated fund no later than 30 
calendar days after the expense was paid by the separate segregated 
fund.
    (3) Checks combining contributions with other payments. A 
contributor may write a check that represents both a contribution and 
payment of dues or other fees. The check must be drawn on the 
contributor's personal checking account or on a non-repayable corporate 
drawing account of the individual contributor. Under a payroll deduction 
plan, an employer may write a check on behalf of its employees to a 
union or its agent, which check represents a combined payment of 
voluntary contributions to the union's separate segregated fund and 
union dues or other employee deductions.
    (4) Transmittal of contributions. The full amount of each 
contribution collected by a collecting agent on behalf of a separate 
segregated fund shall be transmitted to that fund within 10 or 30 days 
as required by 11 CFR 102.8.
    (i) Checks made payable to the separate segregated fund shall be 
transmitted by the collecting agent directly to the separate segregated 
fund in accordance with 11 CFR 102.8.
    (ii) To transfer all other contributions, a collecting agent shall 
either:
    (A) Establish a transmittal account to be used solely for the 
deposit and transmittal of funds collected on behalf of the separate 
segregated fund. Funds deposited into this account are subject to the 
prohibitions and limitations of the Act. If any expenditure is made from 
the account, other than a transfer of funds to an affiliated committee, 
the account shall be considered a depository of the recipient committee 
and all activity of that account shall be reported; or
    (B) Deposit the contributions collected into the collecting agent's 
treasury account. The collecting agent shall keep separate records of 
all receipts and deposits that represent contributions to the separate 
segregated fund and, in the case of cash contributions, the collecting 
agent shall make separate deposits of such funds; or
    (C) Deposit the contributions collected into an account otherwise 
established solely for State or local election activity. The collecting 
agent shall keep separate records of all receipts and deposits that 
represent contributions to the separate segregated fund; or
    (D) In the case of cash contributions, transmit the contributions to 
the separate segregated fund in the form of money orders or cashier's 
checks.
    (5) Contributor information. The collecting agent shall comply with 
the requirements of 11 CFR 102.8 regarding transmittal of contributions 
and contributor information to the separate segregated fund, except that 
if contributions of $50 or less are received at a mass collection, a 
record shall be kept of the date, the total amount collected, and the 
name of the function at which the collection was made.
    (6) Retention of records. The collecting agent shall retain all 
records of contribution deposits and transmittals under this section for 
a period of three years and shall make these records available to the 
Commission on request. The separate segregated fund shall keep a record 
of all transmittals of contributions received from collecting agents 
under this section, and shall retain these records for a period of three 
years.
    (7) Reporting of funds received through collecting agents. A 
separate segregated fund receiving contributions collected by a 
collecting agent shall report the

[[Page 74]]

full amount of each contribution received as a contribution from the 
original contributor to the extent required by 11 CFR 104.3(a).

[48 FR 26300, June 7, 1983]



Sec. 102.7  Organization of political committees (2 U.S.C. 432(a)).

    (a) Every political committee shall have a treasurer and may 
designate, on the committee's Statement of Organization, an assistant 
treasurer who shall assume the duties and responsibilities of the 
treasurer in the event of a temporary or permanent vacancy in the office 
or in the event the treasurer is unavailable.
    (b) Except as provided in subsection (a), no contribution or 
expenditure shall be accepted or made by or on behalf of a political 
committee at a time when there is a vacancy in the office of the 
treasurer.
    (c) No expenditure shall be made for or on behalf of a political 
committee without the authorization of its treasurer or of an agent 
authorized orally or in writing by the treasurer.
    (d) Any candidate who receives a contribution, as defined at 11 CFR 
100.7, obtains any loan or makes any disbursement in connection with his 
or her campaign, shall be considered as having received the 
contribution, obtained the loan or made the disbursement as an agent of 
such authorized committee(s).



Sec. 102.8  Receipt of contributions (2 U.S.C. 432(b)).

    (a) Every person who receives a contribution for an authorized 
political committee shall, no later than 10 days after receipt, forward 
such contribution to the treasurer. If the amount of the contribution is 
in excess of $50, such person shall also forward to the treasurer the 
name and address of the contributor and the date of receipt of the 
contribution. If the amount of the contribution is in excess of $200, 
such person shall forward the contribution, the identification of the 
contributor in accordance with 11 CFR 100.12, and the date of receipt of 
the contribution. Date of receipt shall be the date such person obtains 
possession of the contribution.
    (b)(1) Every person who receives a contribution of $50 or less for a 
political committee which is not an authorized committee shall forward 
such contribution to the treasurer of the political committee no later 
than 30 days after receipt.
    (2) Every person who receives a contribution in excess of $50 for a 
political committee which is not an authorized committee shall, no later 
than 10 days after receipt of the contribution, forward to the treasurer 
of the political committee: The contribution; the name and address of 
the contributor; and the date of receipt of the contribution. If the 
amount of the contribution is in excess of $200, such person shall 
forward the contribution, the identification of the contributor in 
accordance with 11 CFR 100.12, and the date of receipt of the 
contribution. Date of receipt shall be the date such person obtains 
possession of the contribution.
    (c) The provisions of 11 CFR 102.8 concerning receipt of 
contributions for political committees shall also apply to earmarked 
contributions transmitted by an intermediary or conduit.



Sec. 102.9  Accounting for contributions and expenditures (2 U.S.C. 432(c)).

    The treasurer of a political committee or an agent authorized by the 
treasurer to receive contributions and make expenditures shall fulfill 
all recordkeeping duties as set forth at 11 CFR 102.9(a) through (f):
    (a) An account shall be kept by any reasonable accounting procedure 
of all contributions received by or on behalf of the political 
committee.
    (1) For contributions in excess of $50, such account shall include 
the name and address of the contributor and the date of receipt and 
amount of such contribution.
    (2) For contributions from any person whose contributions aggregate 
more than $200 during a calendar year, such account shall include the 
identification of the person, and the date of receipt and amount of such 
contribution.
    (3) For contributions from a political committee, such account shall 
include the identification of the political committee and the date of 
receipt and amount of such contribution.

[[Page 75]]

    (b)(1) An account shall be kept of all disbursements made by or on 
behalf of the political committee. Such account shall consist of a 
record of:
    (i) the name and address of every person to whom any disbursement is 
made;
    (ii) the date, amount, and purpose of the disbursement; and
    (iii) if the disbursement is made for a candidate, the name and 
office (including State and congressional district, if any) sought by 
that candidate.
    (iv) For purposes of 11 CFR 102.9(b)(1), purpose has the same 
meaning given the term at 11 CFR 104.3(b)(3)(i)(A).
    (2) In addition to the account to be kept under 11 CFR 102.9(b)(1), 
a receipt or invoice from the payee or a cancelled check 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 11 CFR 102.9(b)(2)(ii) and 
disbursements by share draft or check drawn on a credit union account 
shall be documented in accordance with 11 CFR 102.9(b)(2)(iii).
    (i)(A) For purposes of 11 CFR 102.9(b)(2), payee means the person 
who provides the goods or services to the committee or agent thereof in 
return for payment, except for an advance of $500 or less for travel and 
subsistence to an individual who will be the recipient of the goods or 
services.
    (B) For any advance of $500 or less to an individual for travel and 
subsistence, the expense voucher or other expense account documentation 
and a cancelled check to the recipient of the advance shall be obtained 
and kept.
    (ii) For any credit card transaction, documentation shall include a 
monthly billing statement or customer receipt for each transaction and 
the cancelled check used to pay the credit card account.
    (iii) For purposes of 11 CFR 102.9(b)(2), a carbon copy of a share 
draft or check drawn on a credit union account may be used as a 
duplicate record of such draft or check provided that the monthly 
account statement showing that the share draft or check was paid by the 
credit union is also retained.
    (c) The treasurer shall preserve all records and accounts required 
to be kept under 11 CFR 102.9 for 3 years after the report to which such 
records and accounts relate is filed.
    (d) In performing recordkeeping duties, the treasurer or his or her 
authorized agent shall use his or her best efforts to obtain, maintain 
and submit the required information and shall keep a complete record of 
such efforts. If there is a showing that best efforts have been made, 
any records of a committee shall be deemed to be in compliance with this 
Act. With regard to the requirements of 11 CFR 102.9(b)(2) concerning 
receipts, invoices and cancelled checks, the treasurer will not be 
deemed to have exercised best efforts to obtain, maintain and submit the 
records unless he or she has made at least one written effort per 
transaction to obtain a duplicate copy of the invoice, receipt, or 
cancelled check.
    (e) If the candidate, or his or her authorized committee(s), 
receives contributions prior to the date of the primary election, which 
contributions are designated in writing by the contributor for use in 
connection with the general election, such candidate or such 
committee(s) shall use an acceptable accounting method to distinguish 
between contributions received for the primary election and 
contributions received for the general election. Acceptable methods 
include, but are not limited to:
    (1) The designation of separate accounts for each election, caucus 
or convention or
    (2) The establishment of separate books and records for each 
election.
    If a candidate is not a candidate in the general election, any 
contributions made for the general election shall be refunded to the 
contributors, redesignated in accordance with 11 CFR 110.1(b)(5) or 
110.2(b)(5), or reattributed in accordance with 11 CFR 110.1(k)(3), as 
appropriate.
    (f) The treasurer shall maintain the documentation required by 11 
CFR 110.1(1), concerning designations, redesignations, reattributions 
and the dates of contributions. If the treasurer does

[[Page 76]]

not maintain this documentation, 11 CFR 110.1(1)(5) shall apply.

[45 FR 15104, Mar. 7, 1980, as amended at 52 FR 773, Jan. 9, 1987]



Sec. 102.10  Disbursement by check (2 U.S.C. 432(h)(1)).

    All disbursements by a political committee, except for disbursements 
from the petty cash fund under 11 CFR 102.11, shall be made by check or 
similar draft drawn on account(s) established at the committee's 
campaign depository or depositories under 11 CFR part 103.



Sec. 102.11  Petty cash fund (2 U.S.C. 432(h)(2)).

    A political committee may maintain a petty cash fund out of which it 
may make expenditures not in excess of $100 to any person per purchase 
or transaction. If a petty cash fund is maintained, it shall be the duty 
of the treasurer of the political committee to keep and maintain a 
written journal of all disbursements. This written journal shall include 
the name and address of every person to whom any disbursement is made, 
as well as the date, amount, and purpose of such disbursement. In 
addition, if any disbursement is made for a candidate, the journal shall 
include the name of that candidate and the office (including State and 
Congressional district) sought by such candidate.



Sec. 102.12  Designation of principal campaign committee (2 U.S.C. 432(e) (1) and (3)).

    (a) Each candidate for Federal office (other than a nominee of a 
political party to the Office of Vice President) shall designate in 
writing a political committee to serve as his or her principal campaign 
committee in accordance with 11 CFR 101.1(a) no later than 15 days after 
becoming a candidate. Each principal campaign committee shall register, 
designate a depository and report in accordance with 11 CFR parts 102, 
103 and 104.
    (b) No political committee may be designated as the principal 
campaign committee of more that one candidate.
    (c)(1) No political committee which supports or has supported more 
than one candidate may be designated as a principal campaign committee, 
except that, after nomination, a candidate for the office of President 
of the United States nominated by a political party may designate the 
national committee of such political party as his or her principal 
campaign committee. A national committee which is so designated shall 
maintain separate books of account with respect to its function as a 
principal campaign committee.
    (2) For purposes of 11 CFR 102.12(c), the term support does not 
include contributions by an authorized committee in amounts aggregating 
$1,000 or less per election to an authorized committee of any other 
candidate, except that the national committee of a political party which 
has been designated as the principal campaign committee of that party's 
Presidential candidate may contribute to another candidate in accordance 
with 11 CFR part 110.



Sec. 102.13  Authorization of political committees (2 U.S.C. 432(e) (1) and (3)).

    (a)(1) Any political committee authorized by a candidate to receive 
contributions or make expenditures shall be authorized in writing by the 
candidate. Such authorization must be filed with the principal campaign 
committee in accordance with 11 CFR 102.1(b).
    (2) If an individual fails to disavow activity pursuant to 11 CFR 
100.3(a)(3) and is therefore a candidate upon notice by the Commission, 
he or she shall authorize the committee in writing.
    (b) A candidate is not required to authorize a national, State or 
subordinate State party committee which solicits funds to be expended on 
the candidate's behalf pursuant to 11 CFR 110.7.
    (c)(1) No political committee which supports or has supported more 
than one candidate may be designated as an authorized committee, except 
that two or more candidates may designate a political committee 
established solely for the purpose of joint fundraising by such 
candidates as an authorized committee.
    (2) For purposes of 11 CFR 102.13(c), the term support does not 
include contributions by an authorized committee in amounts aggregating 
$1,000 or less

[[Page 77]]

per election to an authorized committee of any other candidate, except 
that the national committee of a political party which has been 
designated as the principal campaign committee of that party's 
Presidential candidate may contribute to another candidate in accordance 
with 11 CFR part 110.



Sec. 102.14  Names of political committees (2 U.S.C. 432(e) (4) and (5)).

    (a) The name of each authorized committee shall include the name of 
the candidate who authorized such committee. Except as provided in 
paragraph (b) of this section, no unauthorized committee shall include 
the name of any candidate in its name. For purposes of this paragraph, 
``name'' includes any name under which a committee conducts activities, 
such as solicitations or other communications, including a special 
project name or other designation.
    (b)(1) A delegate committee, as defined at 11 CFR 100.5(e)(5), shall 
include the word delegate(s) in its name and may also include in its 
name the name of the presidential candidate which the delegate committee 
supports.
    (2) A political committee established solely to draft an individual 
or to encourage him or her to become a candidate may include the name of 
such individual in the name of the committee provided the committee's 
name clearly indicates that it is a draft committee.
    (3) An unauthorized political committee may include the name of a 
candidate in the title of a special project name or other communication 
if the title clearly and unambiguously shows opposition to the named 
candidate.
    (c) The name of a separate segregated fund established pursuant to 
11 CFR 102.1(c) shall include the full name of its connected 
organization. Such fund may also use a clearly recognized abbreviation 
or acronym by which the connected organization is commonly known. Both 
the full name and such abbreviation or acronym shall be included on the 
fund's Statement of Organization, on all reports filed by the fund, and 
in all notices required by 11 CFR 109.3 and 110.11. The fund may make 
contributions using its acronym or abbreviated name. A fund established 
by a corporation which has a number of subsidiaries need not include the 
name of each subsidiary in its name. Similarly, a separate segregated 
fund established by a subsidiary need not include in its name the name 
of its parent or another subsidiary of its parent.

[45 FR 15104, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980; 57 
FR 31426, July 15, 1992; 59 FR 17269, Apr. 12, 1994; 59 FR 35785, July 
13, 1994]



Sec. 102.15  Commingled funds (2 U.S.C. 432(a)(3)).

    All funds of a political committee shall be segregated from, and may 
not be commingled with, any personal funds of officers, members or 
associates of that committee, or with the personal funds of any other 
individual. See also 11 CFR 103.3 and part 114 and 2 U.S.C. 441b.



Sec. 102.16  Notice: Solicitation of contributions (2 U.S.C. 441d).

    Each political committee shall comply with the notice requirements 
for solicitation of contributions set forth at 11 CFR 110.11.



Sec. 102.17  Joint fundraising by committees other than separate segregated funds.

    (a) General. (1)(i) Political committees may engage in joint 
fundraising with other political committees or with unregistered 
committees or organizations. The participants in a joint fundraising 
effort under this section shall either establish a separate committee or 
select a participating committee, to act as fundraising representative 
for all participants. The fundraising representative shall be a 
reporting political committee and an authorized committee of each 
candidate for federal office participating in the joint fundraising 
activity. If the participants establish a separate committee to act as 
the fundraising representative, the separate committee shall not be a 
participant in any other joint fundraising effort, but the separate 
committee may conduct more than one joint fundraising effort for the 
participants.
    (ii) The participants may hire a commercial fundraising firm or 
other agent

[[Page 78]]

to assist in conducting the joint fundraising activity. In that case, 
however, the fundraising representative shall still be responsible for 
ensuring that the recordkeeping and reporting requirements set forth in 
this section are met.
    (2) The procedures in 11 CFR 102.17(c) will govern all joint 
fundraising activity conducted under this section. The participants in 
joint fundraising activity may include political party committees 
(whether or not they are political committees under 11 CFR 100.5), 
candidate committees, multicandidate committees, and unregistered 
organizations which do not qualify as collecting agents under 11 CFR 
102.6(b).
    (3) A fundraising representative conducting joint fundraising under 
this section is distinguished from an unregistered organization acting 
as a collecting agent under 11 CFR 102.6(b). If a separate segregated 
fund or an unregistered organization qualifies and acts as a collecting 
agent under 11 CFR 102.6(b), the provisions of 11 CFR 102.17 will not 
apply to that fundraising activity.
    (b) Fundraising representatives--(1) Separate fundraising committee 
as fundraising representative. Participating committees may establish a 
separate political committee to act as fundraising representative for 
all participants. This separate committee shall be a reporting political 
committee and shall collect contributions, pay fundraising costs from 
gross proceeds and from funds advanced by participants, and disburse net 
proceeds to each participant.
    (2) Participating committee as fundraising representative. All 
participating committees may select one participant to act as 
fundraising representative for all participants. The fundraising 
representative must be a political committee as defined in 11 CFR 100.5. 
The fundraising representative and any other participating committees 
may collect contributions; however, all contributions received by other 
participants shall be forwarded to the fundraising representative as 
required by 11 CFR 102.8. The fundraising representative shall pay 
fundraising costs from gross proceeds and from funds advanced by 
participants and shall disburse net proceeds to each participant.
    (3) Funds advanced for fundraising costs. (i) Except as provided in 
11 CFR 102.17(b) (3)(ii) and (iii), the amount of funds advanced by each 
participant for fundraising costs shall be in proportion to the 
allocation formula agreed upon under 11 CFR 102.17 (c)(1).
    (ii) A participant may advance more than its proportionate share of 
the fundraising costs, however, the amount advanced which is in excess 
of the participant's proportionate share shall not exceed the amount 
that participant could legally contribute to the remaining participants. 
See 11 CFR 102.12(c)(2) and part 110.
    (iii) If all the participants are affiliated under 11 CFR 110.3 or 
if the participants are all party committees of the same political 
party, there is no limit on the amount a participant may advance for 
fundraising costs on behalf of the other participants.
    (c) Joint fundraising procedures. The requirements of 11 CFR 
102.17(c)(1) through (8) shall govern joint fundraising activity 
conducted under this section.
    (1) Written agreement. The participants in a joint fundraising 
activity shall enter into a written agreement, whether or not all 
participants are political committees under 11 CFR 100.5. The written 
agreement shall identify the fundraising representative and shall state 
a formula for the allocation of fundraising proceeds. The formula shall 
be stated as the amount or percentage of each contribution received to 
be allocated to each participant. The fundraising representative shall 
retain the written agreement for a period of three years and shall make 
it available to the Commission on request.
    (2) Fundraising notice. In addition to any notice required under 11 
CFR 110.11, a joint fundraising notice shall be included with every 
solicitation for contributions.
    (i) This notice shall include the following information:
    (A) The names of all committees participating in the joint 
fundraising activity whether or not such committees are political 
committees under 11 CFR 100.5; and

[[Page 79]]

    (B) The allocation formula to be used for distributing joint 
fundraising proceeds; and
    (C) A statement informing contributors that, notwithstanding the 
stated allocation formula, they may designate their contributions for a 
particular participant or participants; and
    (D) A statement informing contributors that the allocation formula 
may change if a contributor makes a contribution which would exceed the 
amount that contributor may give to any participant.
    (ii) In the following situations, the notice shall include the 
following additional information:
    (A) If one or more participants engage in the joint fundraising 
activity solely to satisfy outstanding debts, a statement informing 
contributors that the allocation formula may change if a participant 
receives sufficient funds to pay its outstanding debts; and
    (B) If one or more participants can lawfully accept contributions 
that are prohibited under the Act, a statement informing contributors 
that contributions from prohibited sources will be distributed only to 
those participants that can accept them.
    (3) Separate depository account. (i) The participants or the 
fundraising representative shall establish a separate depository account 
to be used solely for the receipt and disbursement of the joint 
fundraising proceeds. All contributions deposited into the separate 
depository account must be permissible under the Act. Each political 
committee shall amend its Statement of Organization to reflect the 
account as an additional depository. If one or more participants can 
lawfully accept contributions that are prohibited under the Act, the 
participants may either establish a second depository account for 
contributions received from prohibited sources or they may forward such 
contributions directly to the nonfederal participants.
    (ii) The fundraising representative shall deposit all joint 
fundraising proceeds in the separate depository account within ten days 
of receipt as required by 11 CFR 103.3. The fundraising representative 
may delay distribution of the fundraising proceeds to the participants 
until all contributions are received and all expenses are paid.
    (iii) For contribution reporting and limitation purposes, the date 
of receipt of a contribution by a participating political committee is 
the date that the contribution is received by the fundraising 
representative. The fundraising representative shall report 
contributions in the reporting period in which they are received. 
Participating political committees shall report joint fundraising 
proceeds in accordance with 11 CFR 102.17(c)(8) when such funds are 
received from the fundraising representative.
    (4) Recordkeeping requirements. (i) The fundraising representative 
and participating committees shall screen all contributions received to 
insure that the prohibitions and limitations of 11 CFR parts 110 and 114 
are observed. Participating political committees shall make their 
contributor records available to the fundraising representative to 
enable the fundraising representative to carry out its duty to screen 
contributions.
    (ii) The fundraising representative shall collect and retain 
contributor information with regard to gross proceeds as required under 
11 CFR 102.8 and shall also forward such information to participating 
political committees. The fundraising representative shall also keep a 
record of the total amount of contributions received from prohibited 
sources, if any, and of all transfers of prohibited contributions to 
participants that can accept them.
    (iii) The fundraising representative shall retain the records 
required under 11 CFR 102.9 regarding fundraising disbursements for a 
period of three years. Commercial fundraising firms or agents shall 
forward such information to the fundraising representative.
    (5) Contribution limitations. Except to the extent that the 
contributor has previously contributed to any of the participants, a 
contributor may make a contribution to the joint fundraising effort 
which contribution represents the total amount that the contributor 
could contribute to all of the participants under the applicable limits 
of 11 CFR 110.1 and 110.2.

[[Page 80]]

    (6) Allocation of gross proceeds. (i) The fundraising representative 
shall allocate proceeds according to the formula stated in the 
fundraising agreement. If distribution according to the allocation 
formula extinguishes the debts of one or more participants and results 
in a surplus for those participants or if distribution under the formula 
results in a violation of the contribution limits of 11 CFR 110.1(a), 
the fundraising representative may reallocate the exesss funds. 
Reallocation shall be based upon the remaining participants' 
proportionate shares under the allocation formula. If reallocation 
results in a violation of a contributor's limit under 11 CFR 110.1, the 
fundraising representative shall return to the contributor the amount of 
the contribution that exceeds the limit.
    (ii) Designated contributions which exceed the contributor's limit 
to the designated participant under 11 CFR part 110 may not be 
reallocated by the fundraising representative absent the prior written 
permission of the contributor.
    (iii) If any participants can lawfully accept contributions from 
sources prohibited under the Act, any such contributions that are 
received are not required to be distributed according to the allocation 
formula.
    (7) Allocation of expenses and distribution of net proceeds. (i) If 
participating committees are not affiliated as defined in 11 CFR 110.3 
prior to the joint fundraising activity and are not committees of the 
same political party;
    (A) After gross contributions are allocated among the participants 
under 11 CFR 102.17(c)(6), the fundraising representative shall 
calculate each participant's share of expenses based on the percentage 
of the total receipts each participant had been allocated. If 
contributions from sources prohibited under the Act have been received 
and distributed under 11 CFR 102.17(c)(6)(iii), those contributions need 
not be included in the total receipts for the purpose of allocating 
expenses under this section. To calculate each participant's net 
proceeds, the fundraising representative shall subtract the 
participant's share of expenses from the amount that participant has 
been allocated from gross proceeds.
    (B) A participant may only pay expenses on behalf of another 
participant subject to the contribution limits of 11 CFR part 110.
    (C) The expenses from a series of fundraising events or activities 
shall be allocated among the participants on a per-event basis 
regardless of whether the participants change or remain the same 
throughout the series.
    (ii) If participating committees are affilated as defined in 11 CFR 
110.3 prior to the joint fundraising activity or if participants are 
party committees of the same political party, expenses need not be 
allocated among those participants. Payment of such expenses by an 
unregistered committee or organization on behalf of an affiliated 
political committee may cause the unregistered organization to become a 
political committee.
    (iii) Payment of expenses may be made from gross proceeds by the 
fundraising representative.
    (8) Reporting of receipts and disbursements--(i) Reporting receipts. 
(A) The fundraising representative shall report all funds received in 
the reporting period in which they are received. The fundraising 
representative shall report the total amount of contributions received 
from prohibited sources during the reporting period, if any, as a memo 
entry. Each Schedule A filed by the fundraising representative under 
this section shall clearly indicate that the contributions reported on 
that schedule represent joint fundraising proceeds.
    (B) After distribution of net proceeds, each participating political 
committee shall report its share of net proceeds received as a transfer-
in from the fundraising representative. Each participating political 
committee shall also file a memo Schedule A itemizing its share of gross 
receipts as contributions from original contributors to the extent 
required under 11 CFR 104.3(a).
    (ii) Reporting disbursements. The fundraising representative shall 
report all disbursements in the reporting period in which they are made.

[48 FR 26301, June 7, 1983, as amended at 56 FR 35909, July 29, 1991]

[[Page 81]]



PART 103--CAMPAIGN DEPOSITORIES (2 U.S.C. 432(h))--Table of Contents




Sec.
103.1  Notification of the commission.
103.2  Depositories (2 U.S.C. 432(h)(1)).
103.3  Deposit of receipts and disbursements (2 U.S.C. 432(h)(1)).
103.4  Vice Presidential candidate campaign depositories.

    Authority: 2 U.S.C. 432(h), 438(a)(8).

    Source: 45 FR 15108, Mar. 7, 1980, unless otherwise noted.



Sec. 103.1  Notification of the commission.

    Each committee shall notify the Commission of the campaign 
depository(ies) it has designated, pursuant to 11 CFR 101.1 and 103.2.



Sec. 103.2  Depositories (2 U.S.C. 432(h)(1)).

    Each political committee shall designate one or more State banks, 
federally chartered depository institutions (including a national bank), 
or depository institutions the depositor accounts of which are insured 
by the Federal Deposit Insurance Corporation, Federal Savings and Loan 
Insurance Corporation, or the National Credit Union Administration, as 
its campaign depository or depositories. One or more depositories may be 
established in one or more States. Each political committee shall 
maintain at least one checking account or transaction account at one of 
its depositories. Additional accounts may be established at each 
depository.



Sec. 103.3  Deposit of receipts and disbursements (2 U.S.C. 432(h)(1)).

    (a) All receipts by a political committee shall be deposited in 
account(s) established pursuant to 11 CFR 103.2, except that any 
contribution may be, within 10 days of the treasurer's receipt, returned 
to the contributor without being deposited. The treasurer of the 
committee shall be responsible for making such deposits. All deposits 
shall be made within 10 days of the treasurer's receipt. A committee 
shall make all disbursements by check or similar drafts drawn on an 
account at its designated campaign depository, except for expenditures 
of $100 or less made from a petty cash fund maintained pursuant to 11 
CFR 102.11. Funds may be transferred from the depository for investment 
purposes, but shall be returned to the depository before such funds are 
used to make expenditures.
    (b) The treasurer shall be responsible for examining all 
contributions received for evidence of illegality and for ascertaining 
whether contributions received, when aggregated with other contributions 
from the same contributor, exceed the contribution limitations of 11 CFR 
110.1 or 110.2.
    (1) Contributions that present genuine questions as to whether they 
were made by corporations, labor organizations, foreign nationals, or 
Federal contractors may be, within ten days of the treasurer's receipt, 
either deposited into a campaign depository under 11 CFR 103.3(a) or 
returned to the contributor. If any such contribution is deposited, the 
treasurer shall make his or her best efforts to determine the legality 
of the contribution. The treasurer shall make at least one written or 
oral request for evidence of the legality of the contribution. Such 
evidence includes, but is not limited to, a written statement from the 
contributor explaining why the contribution is legal, or a written 
statement by the treasurer memorializing an oral communication 
explaining why the contribution is legal. If the contribution cannot be 
determined to be legal, the treasurer shall, within thirty days of the 
treasurer's receipt of the contribution, refund the contribution to the 
contributor.
    (2) If the treasurer in exercising his or her responsibilities under 
11 CFR 103.3(b) determined that at the time a contribution was received 
and deposited, it did not appear to be made by a corporation, labor 
organization, foreign national or Federal contractor, or made in the 
name of another, but later discovers that it is illegal based on new 
evidence not available to the political committee at the time of receipt 
and deposit, the treasurer shall refund the contribution to the 
contributor within thirty days of the date on which the illegality is 
discovered. If the political committee does not have sufficient funds to 
refund the contribution at the time the illegality is discovered, the

[[Page 82]]

political committee shall make the refund from the next funds it 
receives.
    (3) Contributions which on their face exceed the contribution 
limitations set forth in 11 CFR 110.1 or 110.2, and contributions which 
do not appear to be excessive on their face, but which exceed the 
contribution limits set forth in 11 CFR 110.1 or 110.2 when aggregated 
with other contributions from the same contributor, and contributions 
which cannot be accepted under the net debts outstanding provisions of 
11 CFR 110.1(b)(3) and 110.2(b)(3) may be either deposited into a 
campaign depository under 11 CFR 103.3(a) or returned to the 
contributor. If any such contribution is deposited, the treasurer may 
request redesignation or reattribution of the contribution by the 
contributor in accordance with 11 CFR 110.1(b), 110.1(k) or 110.2(b), as 
appropriate. If a redesignation or reattribution is not obtained, the 
treasurer shall, within sixty days of the treasurer's receipt of the 
contribution, refund the contribution to the contributor.
    (4) Any contribution which appears to be illegal under 11 CFR 
103.3(b) (1) or (3), and which is deposited into a campaign depository 
shall not be used for any disbursements by the political committee until 
the contribution has been determined to be legal. The political 
committee must either establish a separate account in a campaign 
depository for such contributions or maintain sufficient funds to make 
all such refunds.
    (5) If a contribution which appears to be illegal under 11 CFR 
103.3(b) (1) or (3) is deposited in a campaign depository, the treasurer 
shall make and retain a written record noting the basis for the 
appearance of illegality. A statement noting that the legality of the 
contribution is in question shall be included in the report noting the 
receipt of the contribution. If a contribution is refunded to the 
contributor because it cannot be determined to be legal, the treasurer 
shall note the refund on the report covering the reporting period in 
which the refund is made.

[52 FR 774, Jan. 9, 1987]



Sec. 103.4  Vice Presidential candidate campaign depositories.

    Any campaign depository designated by the principal campaign 
committee of a political party's candidate for President shall be the 
campaign depository for that political party's candidate for the office 
of Vice President.



PART 104--REPORTS BY POLITICAL COMMITTEES (2 U.S.C. 434)--Table of Contents




Sec.
104.1  Scope (2 U.S.C. 434(a)).
104.2  Forms.
104.3  Contents of reports (2 U.S.C. 434(b), 439a).
104.4  Independent expenditures by political committees (2 U.S.C. 
          434(c)).
104.5  Filing dates (2 U.S.C. 434(a)(2)).
104.6  Form and content of internal communications reports (2 U.S.C. 
          431(9)(B)(iii)).
104.7  Best efforts (2 U.S.C. 432(i)).
104.8  Uniform reporting of receipts.
104.9  Uniform reporting of disbursements.
104.10  Reporting of expenses allocated among candidates and activities.
104.11  Continuous reporting of debts and obligations.
104.12  Beginning cash on hand for political committees.
104.13  Disclosure of receipt and consumption of in-kind contributions.
104.14  Formal requirements regarding reports and statements.
104.15  Sale or use restriction (2 U.S.C. 438(a)(4)).
104.16  Audits (2 U.S.C. 438(b)).
104.17  [Reserved]
104.18  Electronic filing of reports (2 U.S.C. 432(d) and 434(a)(11)).

    Authority: 2 U.S.C. 431(1), 431(8), 431(9), 432(i), 434, 438(a)(8), 
438(b), 439a.

    Source: 45 FR 15108, Mar. 7, 1980, unless otherwise noted.



Sec. 104.1  Scope (2 U.S.C. 434(a)).

    (a) Who must report. Each treasurer of a political committee 
required to register under 11 CFR part 102 shall report in accordance 
with 11 CFR part 104.
    (b) Who may report. An individual seeking federal office who has not 
attained candidate status under 11 CFR 100.3, the committee of such an 
individual or any other committee may voluntarily register and report in 
accordance with 11 CFR parts 102 and 104.

[[Page 83]]

An individual shall not become a candidate solely by voluntarily filing 
a report, nor shall such individual, the individual's committee, nor any 
other committee be required to file all reports under 11 CFR 104.5, 
unless the individual becomes a candidate under 11 CFR 100.3 or unless 
the committee becomes a political committee under 11 CFR 100.5.



Sec. 104.2  Forms.

    (a) Each report filed by a political committee under 11 CFR part 104 
shall be filed on the appropriate FEC form as set forth below at 11 CFR 
104.2(e).
    (b) Forms may be obtained from the Federal Election Commission, 999 
E Street, NW., Washington, DC 20463.
    (c) A committee may reproduce FEC forms for its own use provided 
they are not reduced in size.
    (d) With prior approval of the Commission a committee may use, for 
reporting purposes, computer produced schedules of itemized receipts and 
disbursements provided they are reduced to the size of FEC forms. The 
committee shall submit a sample of the proposed format with its request 
for approval.
    (e) The following forms shall be used by the indicated type of 
reporting committee:
    (1) Presidential committees. The authorized committees of a 
candidate for President or Vice President shall file on FEC Form 3-P.
    (2) Congressional candidate committees. The authorized committees of 
a candidate for the Senate or the House of Representatives shall file on 
FEC Form 3.
    (3) Political Committees Other than Authorized Committees. Political 
committees other than authorized committees shall file reports on FEC 
Form 3-X.

[45 FR 15108, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980; 50 
FR 50778, Dec. 12, 1985]



Sec. 104.3  Contents of reports (2 U.S.C. 434(b), 439a).

    (a) Reporting of Receipts. Except for reports filed in accordance 
with 11 CFR 104.17, each report filed under 11 CFR 104.1 shall disclose 
the total amount of receipts for the reporting period and for the 
calendar year and shall disclose the information set forth at 11 CFR 
104.3(a) (1) through (4). 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 such amounts were not received 
during the current reporting period.
    (1) Cash on hand. The amount of cash on hand at the beginning of the 
reporting period, including: currency; balance on deposit in banks, 
savings and loan institutions, and other depository institutions; 
traveler's checks owned by the committee; certificates of deposit, 
treasury bills and any other committee investments valued at cost.
    (2) Categories of receipts for all political committees other than 
authorized committees. All committees other than authorized committees 
shall report the total amount of receipts received during the reporting 
period and, except for itemized and unitemized breakdowns, during the 
calendar year for each of the following categories:
    (i) Contributions from persons other than any committees;
    (A) Itemized contributions from persons, other than any committees, 
including contributions from individuals;
    (B) Unitemized contributions from persons, other than any 
committees, including contributions from individuals;
    (C) Total contributions from persons other than any committees, 
including contributions from individuals;
    (ii) Contributions from political party committees, including 
contributions from party committees which are not political committees 
under the Act;
    (iii) Contributions from political committees, including 
contributions from committees which are not political committees under 
the Act but excluding contributions from any party committees;
    (iv) Total contributions;
    (v) Transfers from affiliated committees or organizations and, where 
the reporting committee is a political party committee, transfers from 
other party committees of the same party, regardless of whether such 
committees are affiliated;
    (vi) All loans;

[[Page 84]]

    (vii) Offsets to operating expenditures;
    (A) Itemized offsets to operating expenditures (such as rebates and 
refunds);
    (B) Unitemized offsets to operating expenditures (such as rebates 
and refunds);
    (C) Total offsets to operating expenditures;
    (viii) Other receipts:
    (A) Itemized other receipts (such as dividends and interest);
    (B) Unitemized other receipts (such as dividends and interest);
    (C) The total sum of all other receipts.
    (ix) The total sum of all receipts.
    (3) Categories of receipts for authorized committees. An authorized 
committee of a candidate for Federal office shall report the total 
amount of receipts received during the reporting period and, except for 
itemized and unitemized breakdowns, during the calendar year in each of 
the following categories:
    (i) Contributions from persons other than any committees;
    (A) Itemized contributions from persons, other than any committees, 
including contributions from individuals, but excluding contributions 
from a candidate to his or her authorized committees;
    (B) Unitemized contributions from persons, other than any 
committees, including contributions from individuals, but excluding 
contributions from a candidate to his or her authorized committees;
    (C) Total contributions from persons other than any committees, 
including contributions from individuals, but excluding contributions 
from a candidate to his or her authorized committees;
    (ii) Contributions from the candidate, excluding loans which are 
reported under 11 CFR 104.3(a)(3)(vii));
    (iii) Contributions from political party committees, including party 
committees which are not political committees under the Act, 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;
    (iv) Contributions from committees, including contributions from 
committees which are not political committees under the Act, but 
excluding contributions from any party committees;
    (v) Total contributions;
    (vi) Transfers from other authorized committee(s) of the same 
candidate, regardless of amount;
    (vii) Loans;
    (A) All loans to the committee, except loans made, guaranteed, or 
endorsed by a candidate to his or her authorized committee;
    (B) Loans made, guaranteed, or endorsed by a candidate to his or her 
authorized committee;
    (C) Total loans;
    (viii) 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);
    (ix) Offsets to operating expenditures;
    (A) Itemized offsets to operating expenditures (such as refunds and 
rebates);
    (B) Unitemized offsets to operating expenditures (such as refunds 
and rebates);
    (C) Total offsets to operating expenditures;
    (x) Other receipts;
    (A) Itemized other receipts (such as dividends and interest);
    (B) Unitemized other receipts (such as dividends and interest);
    (C) Total other receipts;
    (xi) Total receipts.
    (4) Itemization of receipts for all committees including authorized 
and unauthorized committees. The identification (as defined at 11 CFR 
100.12) of each contributor and the aggregate year-to-date total for 
such contributor in each of the following categories shall be reported.
    (i) Each person, other than any committee, who makes a contribution 
to the reporting committee during the reporting period, whose 
contribution or contributions aggregate in excess of $200 per calendar 
year, together with the date of receipt and amount of any such 
contributions, except that the reporting committee may elect to report 
such information for contributors of lesser amount(s) on a separate 
schedule;

[[Page 85]]

    (ii) All committees (including political committees and committees 
which do not qualify as political committees under the Act) which make 
contributions to the reporting committee during the reporting period, 
together with the date of receipt and amount of any such contribution;
    (iii) Transfers;
    (A) For authorized committees of a candidate for Federal office, 
each authorized committee which makes a transfer to the reporting 
committee, together with the date and amount of such transfer;
    (B) For committees which are not authorized by a candidate for 
Federal office, each affiliated committee or organization which makes a 
transfer 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 regardless of whether such committees are affiliated, together 
with the date and amount of such transfer;
    (iv) Each person who makes a loan to the reporting committee or to 
the candidate acting as an agent of the committee, during the reporting 
period, together with the identification of any endorser or guarantor of 
such loan, the date such loan was made and the amount or value of such 
loan;
    (v) Each person who provides a rebate, refund or other offset to 
operating expenditures to the reporting committee in an aggregate amount 
or value in excess of $200 within the calendar year, together with the 
date and amount of any such receipt; and
    (vi) Each person who provides any dividend, interest, or other 
receipt to the reporting committee in an aggregate value or amount in 
excess of $200 within the calendar year, together with the date and 
amount of any such receipt.
    (b) Reporting of Disbursements. Except for reports filed in 
accordance with 11 CFR 104.17, each report filed under 11 CFR 104.1 
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 11 CFR 104.3(b) (1) through (4). 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 such amounts were not 
disbursed during the current reporting period.
    (1) Categories of disbursements for political committees other than 
authorized committees. All political committees other than authorized 
committees shall report the total amount of disbursements made during 
the reporting period and, except for itemized and unitemized breakdowns, 
during the calendar year in each of the following categories:
    (i) Operating expenditures;
    (A) Itemized operating expenditures;
    (B) Unitemized operating expenditures;
    (C) Total operating expenditures;
    (ii) Transfers to affiliated committees or organizations and, where 
the reporting committee is a political party committee, transfers to 
other political party committees regardless of whether they are 
affiliated;
    (iii) Repayment of all loans;
    (iv) Offsets;
    (A) Itemized offsets to contributions (including contribution 
refunds);
    (B) Unitemized offsets to contributions (including contribution 
refunds);
    (C) Total offsets to contributions;
    (v) Contributions made to other political committees;
    (vi) Loans made by the reporting committee;
    (vii) Independent expenditures made by the reporting committee;
    (viii) Expenditures made under 11 CFR 110.7 (2 U.S.C. 441a(d)), See 
11 CFR 104.3(a)(3)(iii);
    (ix) Other disbursements;
    (A) Itemized other disbursements;
    (B) Unitemized other disbursements;
    (C) Total other disbursements;
    (x) Total disbursements.
    (2) Categories of disbursements for authorized committees. An 
authorized committee of a candidate for Federal office shall report the 
total amount of disbursements made during the reporting period and, 
except for itemized and unitemized breakdowns, during the calendar year 
in each of the following categories:
    (i) Operating expenditures;
    (A) Itemized operating expenditures;

[[Page 86]]

    (B) Unitemized operating expenditures;
    (C) Total operating expenditures;
    (ii) Transfers to other committees authorized by the same candidate;
    (iii) Repayment of loans;
    (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) Offsets;
    (A) Itemized offsets to contributions (including contribution 
refunds);
    (B) Unitemized offsets to contributions (including contribution 
refunds);
    (C) Total offsets to contributions;
    (vi) Other disbursements;
    (A) Itemized other disbursements;
    (B) Unitemized other disbursements;
    (C) Total other disbursements;
    (vii) Total disbursements.
    (3) Itemization of disbursements by political committees other than 
authorized committees. Each political committee, other than an 
authorized committee, shall report the full name and address of each 
person in each of the following categories, as well as the information 
required by each category;
    (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 such operating expenditure;
    (A) As used in 11 CFR 104.3(b)(3), purpose means a brief statement 
or decription of why the disbursement was made.
    (B) Examples of statements or descriptions which meet the 
requirements of 11 CFR 104.3(b)(3) 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 11 CFR 104.3(b)(3) for reporting the 
purpose of an expenditure.
    (ii) Each affiliated committee to which a transfer is made by the 
reporting committee during the reporting period and, where the reporting 
committee is a political party committee, each transfer of funds by the 
reporting committee to another political party committee, regardless of 
whether such committees are affiliated, together with the date and 
amount of such transfer;
    (iii) Each person who receives a loan repayment from the reporting 
committee during the reporting period, together with the date and amount 
of such loan repayment;
    (iv) Each person who receives a contribution refund or other offset 
to contributions from the reporting committee where such contribution 
refund was reported under 11 CFR 104.3(b)(1)(iv), together with the date 
and amount of such refund or offset;
    (v) Each political committee which has received a contribution from 
the reporting committee during the reporting period, together with the 
date and amount of any such contribution, and, in the case of a 
contribution to an authorized committee, the candidate's name and office 
sought (including State and Congressional district, if applicable);
    (vi) Each person who has received a loan from the reporting 
committee during the reporting period, together with the date and amount 
or value of such loan;
    (vii) (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 any such independent expenditure(s);
    (B) For each independent expenditure reported, the committee must 
also provide a statement which indicates whether such independent 
expenditure is in support of, or in opposition to a particular 
candidate, as well as the name of the candidate and office sought by 
such candidate (including State and Congressional district, when 
applicable), and a certification, under

[[Page 87]]

penalty of perjury, as to whether such independent expenditure is made 
in cooperation, consultation or concert with, or at the request or 
suggestion of, any candidate or any authorized committee or agent of 
such committee;
    (C) The information required by 11 CFR 104.3(b)(3)(vii) (A) and (B) 
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.
    (viii) 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 USC 441a(d)), together with the date, amount, and 
purpose of any such expenditure as well as the name of, and office 
sought by (including State and Congressional district, when applicable), 
the candidate on whose behalf the expenditure is made; and
    (ix) Each person who has received any disbursement within the 
reporting period not otherwise disclosed in accordance with 11 CFR 
104.3(b)(3) 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 any such disbursement.
    (4) Itemization of disbursements by authorized committees. Each 
authorized committee shall report the full name and address of each 
person in each of the following categories, as well as the information 
required by each category.
    (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 each expenditure.
    (A) As used in 11 CFR 104.3(b)(4), purpose means a brief statement 
or description of why the disbursement was made. Examples of statements 
or descriptions which meet the requirements of 11 CFR 104.3(b)(4) 
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 11 CFR 104.3(b)(4) for reporting the 
purpose of an expenditure.
    (B) In addition to reporting the purpose described in 11 CFR 
104.3(b)(4)(i)(A), whenever an authorized 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 authorized committee of the same candidate to which a 
transfer is made by the reporting committee during the reporting period, 
together with the date and amount of such transfer;
    (iii) Each person who receives a loan repayment from the reporting 
committee during the reporting period, together with the date and amount 
of such loan repayment;
    (iv) Each person who receives a loan repayment from the candidate, 
if the proceeds of such loan were used in connection with the 
candidate's campaign;
    (v) Each person who receives a contribution refund or other offset 
to contributions from the reporting committee where such contribution 
refund was reported under 11 CFR 104.3(b)(2)(v), together with the date 
and amount of such refund or offset.
    (vi) Each person who has received any disbursement(s) not otherwise 
disclosed under 11 CFR 104.3(b)(4) to whom the aggregate amount or value 
of such disbursements exceeds $200 within the calendar year, together 
with the date, amount, and purpose of any such disbursement.
    (c) Summary of contributions and operating expenditures. Each report 
filed pursuant to 11 CFR 104.1 shall disclose for both the reporting 
period and the calendar year:
    (1)(i) The total contributions to the reporting committee;
    (ii) The total offsets to contributions;

[[Page 88]]

    (iii) The net contributions (subtract total offsets from total 
contributions);
    (2)(i) The reporting committee's total operating expenditures;
    (ii) The total offsets to operating expenditures;
    (iii) The net operating expenditures (subtract total offsets from 
total operating expenditures).
    (d) Reporting debts and obligations. Each report filed under 11 CFR 
104.1 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. Loans 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 such loans are outstanding at the time the 
individual becomes a candidate. Where such debts and obligations are 
settled for less than their reported amount or value, each report filed 
under 11 CFR 104.1 shall contain a statement as to the circumstances and 
conditions under which such debts or obligations were extinguished and 
the amount paid. See 11 CFR 116.7.
    (1) In addition, when a candidate or political committee obtains a 
loan from, or establishes a line of credit at, 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 of 
each draw on the 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 the 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 (d)(1)(i)-(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 a 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 political 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.
    (3) The political committee shall file in the next due report a 
Schedule C-1 or C-P-1 each time a draw is made on a line of credit, and 
each time a loan or line of credit is restructured to change the terms 
of repayment.
    (e) 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 political 
committee may submit up to ten (10) pseudonyms on each report filed.
    (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 as a memo entry on line 11(a) of the Detailed Summary page, 
Unitemized contributions from individual persons other than political 
committees. 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 authorized committee of a candidate shall attribute more than 
$1,000 in contributions to the same pseudonym for each election and no 
other political committee shall attribute more than $5,000 in 
contributions to

[[Page 89]]

the same pseudonym in any calendar year.
    (5) A committee using pseudonyms shall send a list of such 
pseudonyms under separate cover directly to the Reports Analysis 
Division, Federal Election Commission, 999 E Street, NW., 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 political committee shall not use pseudonyms for the purpose 
of circumventing the reporting requirements or the limitations and 
prohibitions of the Act.
    (f) Consolidated reports. Each principal campaign committee shall 
consolidate in each report those reports required to be filed with it. 
Such consolidated reports shall include: (1) Reports submitted to it by 
any authorized committees and (2) the principal campaign committee's own 
report. Such 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.
    (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.
    (h) Legal and accounting services. A committee which receives legal 
or accounting services pursuant to 11 CFR 100.7(b) (13) and (14) shall 
report as a memo entry, on Schedule A, the amounts paid for these 
services by the regular employer of the person(s) providing such 
services; the date(s) such services were performed; and the name of each 
person performing such services.
    (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).

[45 FR 15108, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980; 50 
FR 50778, Dec. 12, 1985; 55 FR 26386, June 27, 1990; 56 FR 67124, Dec. 
27, 1991; 60 FR 7874, Feb. 9, 1995; 61 FR 3549, Feb. 1, 1996]



Sec. 104.4  Independent expenditures by political committees (2 U.S.C. 434(c)).

    (a) Every political committee which makes independent expenditures 
shall report all such expenditures on Schedule E in accordance with 11 
CFR 104.3(b)(3)(vii). Every person (other than a political committee) 
shall report independent expenditures in accordance with 11 CFR part 
109.
    (b) 24 Hour reports. Any independent expenditures aggregating $1,000 
or more made after the 20th day, but more than 24 hours, before 12:01 
a.m. of the day of the election, shall be reported within 24 hours after 
such independent expenditure is made. Such report shall be filed with 
the appropriate officers listed in 11 CFR 104.4(c) and shall contain the 
information required by 11 CFR 104.3(b)(3)(vii) indicating whether the 
independent expenditure is made in support of, or in opposition to, the 
candidate involved.
    (c) Where to file. Reports of independent expenditures under 11 CFR 
104.4 and part 109 shall be filed as set forth at 11 CFR 104.4(c)(1) 
through (3).
    (1) For independent expenditures in support of or in opposition to, 
a candidate for President or Vice-President: with the Commission and the 
Secretary of State for the State in which the expenditure is made.
    (2) For independent expenditures in support of, or in opposition to, 
a candidate for the Senate: with the Secretary of the Senate and the 
Secretary of State for the State in which the candidate is seeking 
election.

[[Page 90]]

    (3) For independent expenditures in support of, or in opposition to, 
a candidate for the House of Representatives: with the Federal Election 
Commission and the Secretary of State for the State in which the 
candidate is seeking election.

[45 FR 15108, Mar. 7, 1980, as amended at 61 FR 3549, Feb. 1, 1996]



Sec. 104.5  Filing dates (2 U.S.C. 434(a)(2)).

    (a) Principal Campaign Committee of House or Senate Candidate. Each 
treasurer of a principal campaign committee supporting a candidate for 
the House of Representatives or to the Senate shall file reports on the 
dates specified at 11 CFR 104.5(a) (1) and (2).
    (1) Election year reports--(i) Pre-election reports. (A) Pre-
election reports for the primary and general election shall be filed no 
later than 12 days before any primary or general election in which the 
candidate seeks election. If sent by registered or certified mail, the 
report shall be mailed no later than the 15th day before any election.
    (B) The report shall disclose all receipts and disbursements as of 
the 20th day before a primary or general election.
    (ii) Post-general election report. (A) The post-general election 
report shall be filed no later than 30 days after any general election 
in which the candidate seeks election.
    (B) The report shall be complete as of the 20th day after the 
general election.
    (iii) Quarterly reports. (A) Quarterly reports shall be filed no 
later than the 15th day following the close of the immediately preceding 
calendar quarter (on April 15, July 15, and October 15), except that the 
report for the final calendar quarter of the year shall be filed on 
January 31 of the following calendar year.
    (B) The report shall be complete as of the last day of each calendar 
quarter.
    (C) The requirement for a quarterly report shall be waived if, under 
11 CFR 104.5(a)(1)(i), a pre-election report is required to be filed 
during the period beginning on the fifth day after the close of the 
calendar quarter and ending on the fifteenth day after the close of the 
calendar quarter.
    (2) Non-election year reports--(i) Semi-annual reports. (A) The 
first report shall cover January 1 through June 30, and shall be filed 
no later than July 31.
    (B) The second report shall cover July 1 through December 31, and 
shall be filed no later than January 31 of the following year.
    (b) Principal campaign committee of Presidential candidate. Each 
treasurer of a principal campaign committee of a candidate for President 
shall file reports on the dates specified at 11 CFR 104.5(b) (1) and 
(2).
    (1) Election year reports. (i) If on January 1 of the election year, 
the committee has received or anticipates receiving contributions 
aggregating $100,000 or more, or has made or anticipates making 
expenditures aggregating $100,000 or more, it shall file monthly 
reports.
    (A) Each report shall be filed no later than the 20th day after the 
last day of each month.
    (B) The report shall be complete as of the last day of each month.
    (C) In lieu of the monthly reports due in November and December, a 
pre-election report shall be filed as prescribed at 11 CFR 
104.5(a)(1)(i), a post-general election report shall be filed as 
prescribed at 11 CFR 104.5(a)(1)(ii), and a year-end report shall be 
filed no later than January 31 of the following calendar year.
    (ii) If on January 1 of the election year, the committee does not 
anticipate receiving or has not received contributions aggregating 
$100,000 or does not anticipate making or has not made expenditures 
aggregating $100,000, the committee shall file a preelection report or 
reports, a post general election report and, quarterly reports, as 
prescribed in 11 CFR 104.5(a)(1).
    (iii) If during the election year, a committee filing under 11 CFR 
104.5(b)(1)(ii) receives contributions aggregating $100,000 or makes 
expenditures aggregating $100,000, the treasurer shall begin filing 
monthly reports at the next reporting period.
    (2) Non-election year reports. During a non-election year, the 
treasurer shall file either (i) monthly reports as prescribed at 11 CFR 
104.5(b)(1)(i); or (ii) quarterly reports as prescribed at 11 CFR 
104.5(a)(1).
    (c) Committees other than authorized committees of candidates. Each 
political

[[Page 91]]

committee which is not the authorized committee of a candidate shall 
file either: election year and non-election year reports as prescribed 
at 11 CFR 104.5(c) (1) and (2); or monthly reports as prescribed at 11 
CFR 104.5(c)(3). A political committee reporting under 11 CFR 104.5(c) 
may elect to change the frequency of its reporting from monthly to 
quarterly and semi-annually or vice versa. A committee may change its 
filing frequency only after notifying the Commission in writing of its 
intention at the time it files a required report under its current 
filing frequency. Such committee will then be required to file the next 
required report under its new filing frequency. A committee may change 
its filing frequency no more than once per calendar year.
    (1) Election year reports--(i) Quarterly reports. (A) Quarterly 
reports shall be filed no later than the 15th day following the close of 
the immediately preceding calendar quarter, (on April 15, July 15, and 
October 15), except that the report for the final calendar quarter of 
the year shall be filed on January 31 of the following calendar year.
    (B) The reports shall be complete as of the last day of the calendar 
quarter for which the report is filed.
    (C) The requirement for a quarterly report shall be waived if under 
11 CFR 104.5(c)(1)(ii) a pre-election report is required to be filed 
during the period beginning on the fifth day after the close of the 
calendar quarter and ending on the fifteenth day after the close of the 
calendar quarter.
    (ii) Pre-election reports. (A) Pre-election reports for the primary 
and general election shall be filed by a political committee which makes 
contributions or expenditures in connection with any such election if 
such disbursements have not been previously disclosed. Pre-election 
reports shall be filed no later than 12 days before any primary or 
general election. If sent by registered or certified mail, the report 
shall be mailed no later than the 15th day before any election.
    (B) The report shall disclose all receipts and disbursements as of 
the 20th day before a primary or general election.
    (iii) Post-general election reports. (A) A post-general election 
report shall be filed no later than 30 days after any general election.
    (B) The report shall be complete as of the 20th day after the 
general election.
    (2) Non-election year reports--(i) Semi-annual reports. (A) The 
first report shall cover January 1 through June 30, and shall be filed 
no later than July 31.
    (B) The second report shall cover July 1 through December 31, and 
shall be filed no later than January 31 of the following year.
    (3) Monthly reports. (i) Except as provided at 11 CFR 
104.5(c)(3)(ii), monthly reports shall be filed no later than 20 days 
after the last day of the month.
    (ii) In lieu of the monthly reports due in November and December, in 
any year in which a regularly scheduled general election is held, a pre-
election report shall be filed as prescribed at 11 CFR 104.5(a)(1)(i), a 
post general election report shall be filed as prescribed at 11 CFR 
104.5(a)(1)(ii), and a year-end report shall be filed no later than 
January 31 of the following calendar year.
    (d) Committees supporting Vice Presidential candidates. The 
treasurer of a committee supporting a candidate for the office of Vice 
President (other than a nominee of a political party) shall file reports 
on the same basis that the principal campaign committee of a 
Presidential candidate must file reports under 11 CFR 104.5(b).
    (e) U.S. post mark. A designation, report or statement sent by 
registered or certified mail shall be considered filed on the date of 
the U.S. post mark except that a twelve day pre-election report sent by 
certified or registered mail shall be mailed no later than the 15th day 
before any election. Designations, reports or statements sent by first 
class mail must be received by the close of business of the prescribed 
filing date to be timely filed.
    (f) 48 hour notification of contributions. If any contribution of 
$1,000 or more is received by any authorized committee of a candidate 
after the 20th day, but more than 48 hours, before 12:01 a.m. of the day 
of the election, the principal campaign committee of that candidate 
shall notify the Commission, the Secretary of the Senate and the 
Secretary of State, as appropriate, within 48 hours of receipt of the 
contribution. The notification shall be in writing and

[[Page 92]]

shall include the name of the candidate and office sought by the 
candidate, the identification of the contributor, and the date of 
receipt and amount of the contribution. The notification shall be in 
addition to the reporting of these contributions on the post-election 
report.
    (g) 24 hour report of independent expenditures. Any independent 
expenditures aggregating $1,000 or more made after the 20th day, but 
more than 24 hours, before 12:01 a.m. of the day of the election, shall 
be reported within 24 hours after such independent expenditure is made. 
Such report shall be filed with the appropriate officers listed in 11 
CFR 104.4(c) and shall contain the information required by 11 CFR 
104.3(b)(3)(vii) indicating whether the independent expenditure is made 
in support of, or in opposition to, the candidate involved.
    (h) Special election reports. (1) Within 5 days of the setting of a 
special election, the Commission shall set filing dates for reports to 
be filed by principal campaign committees of candidates seeking 
election, or nomination for election, in special elections and for 
political committees, other than authorized committees, which make 
contributions to or expenditures on behalf of a candidate or candidates 
in special elections. The Commission shall publish such reporting dates 
in the Federal Register and shall notify the principal campaign 
committees of all candidates in such election of the reporting dates. 
The Commission shall not require such committees to file more than one 
pre-election report for each election and one post-election report for 
the election which fills the vacancy.
    (2) Reports required to be filed under 11 CFR 104.5(a) or (c) may be 
waived by the Commission for committees filing special election reports 
if a report under 11 CFR 104.5(a) or (c) is due within 10 days of the 
date a special election report is due. The Commission shall notify all 
appropriate committees of reports so waived.

[45 FR 15108, Mar. 7, 1980, as amended at 61 FR 3549, Feb. 1, 1996]



Sec. 104.6  Form and content of internal communications reports (2 U.S.C. 431(9)(B)(iii)).

    (a) Form. Every membership organization or corporation which makes 
disbursements for communications pursuant to 11 CFR 100.8(b)(4) and 
114.3 shall report to the Commission on FEC Form 7 such costs which are 
directly attributable to any communication expressly advocating the 
election or defeat of a clearly identified candidate (other than a 
communication primarily devoted to subjects other than the election or 
defeat of a clearly identified candidate), if such costs exceed $2,000 
for any election.
    (1) For the purposes of 11 CFR 104.6(a), election means two separate 
processes in a calendar year, to each of which the $2,000 threshold 
described above applies separately. The first process is comprised of 
all primary elections for federal office, wherever and whenever held; 
the second process is comprised of all general elections for federal 
office, wherever and whenever held.
    (2) The term election shall also include each special election held 
to fill a vacancy in a Federal office (11 CFR 100.2(f)) or each runoff 
election (11 CFR 100.2(d)).
    (b) Filing dates. Organizations required to report under 11 CFR 
104.6(a) shall file such reports during a calendar year in which a 
regularly scheduled general election is held. Such reports shall be 
filed quarterly in accordance with 11 CFR 104.5(a)(1)(iii) and, with 
respect to any general election, in accordance with 11 CFR 
104.5(a)(1)(i). The organization shall be required to file reports 
beginning with the first reporting period during which the aggregate 
cost for such communications exceeds $2,000 per election as defined in 
11 CFR 104.6(a)(1), and for each quarter thereafter in which the 
organization makes additional disbursements in connection with the same 
election.
    (c) Each report filed under 11 CFR 104.6 shall include, for each 
communication:
    (1) The type of communication (such as direct mail, telephone or 
telegram);
    (2) The date(s) of the communication;
    (3) The name of the candidate, the office sought (and the district 
and state

[[Page 93]]

of the office, if applicable), and whether the communication was for the 
primary or general election;
    (4) Whether the communication was in support of or in opposition to, 
a particular candidate; and
    (5) The cost of the communication.



Sec. 104.7  Best efforts (2 U.S.C. 432(i)).

    (a) When the treasurer of a political committee shows that best 
efforts have been used to obtain, maintain and submit the information 
required by the Act for the political committee, any report of such 
committee shall be considered in compliance with the Act.
    (b) With regard to reporting the identification as defined at 11 CFR 
100.12 of each person whose contribution(s) to the political committee 
and its affiliated committees aggregate in excess of $200 in a calendar 
year (pursuant to 11 CFR 104.3(a)(4)), the treasurer and the committee 
will only be deemed to have exercised best efforts to obtain, maintain 
and report the required information if--
    (1) All written solicitations for contributions include a clear 
request for the contributor's full name, mailing address, occupation and 
name of employer, and include an accurate statement of Federal law 
regarding the collection and reporting of individual contributor 
identifications. The following are examples of acceptable statements, 
but are not the only allowable statements: ``Federal law requires us to 
use our best efforts to collect and report the name, mailing address, 
occupation and name of employer of individuals whose contributions 
exceed $200 in a calendar year;'' and ``To comply with Federal law, we 
must use best efforts to obtain, maintain, and submit the name, mailing 
address, occupation and name of employer of individuals whose 
contributions exceed $200 per calendar year.'' The request and statement 
shall appear in a clear and conspicuous manner on any response material 
included in a solicitation. The request and statement are not clear and 
conspicuous if they are in small type in comparison to the solicitation 
and response materials, or if the printing is difficult to read or if 
the placement is easily overlooked.
    (2) For each contribution received aggregating in excess of $200 per 
calendar year which lacks required contributor information, such as the 
contributor's full name, mailing address, occupation or name of 
employer, the treasurer makes at least one effort after the receipt of 
the contribution to obtain the missing information. Such effort shall 
consist of either a written request sent to the contributor or an oral 
request to the contributor documented in writing. The written or oral 
request must be made no later than thirty (30) days after receipt of the 
contribution. The written or oral request shall not include material on 
any other subject or any additional solicitation, except that it may 
include language solely thanking the contributor for the contribution. 
The request must clearly ask for the missing information, and must 
include the statement set forth in paragraph (b)(1) of this section. 
Written requests must include this statement in a clear and conspicuous 
manner. If the request is written, it shall be accompanied by a pre-
addressed return post card or envelope for the response material;
    (3) The treasurer reports all contributor information not provided 
by the contributor, but in the political committee's possession, or in 
its connected organization's possession, regarding contributor 
identifications, including information in contributor records, 
fundraising records and previously filed reports, in the same two-year 
election cycle in accordance with 11 CFR 104.3; and
    (4)(i) If any of the contributor information is received after the 
contribution has been disclosed on a regularly scheduled report, the 
political committee shall either:
    (A) File with its next regularly scheduled report, an amended memo 
Schedule A listing all contributions for which contributor 
identifications have been received during the reporting period covered 
by the next regularly scheduled report together with the dates and 
amounts of the contribution(s) and an indication of the previous 
report(s) to which the memo Schedule A relates; or

[[Page 94]]

    (B) File on or before its next regularly scheduled reporting date, 
amendments to the report(s) originally disclosing the contribution(s), 
which include the contributor identifications together with the dates 
and amounts of the contribution(s).
    (ii) Amendments must be filed for all reports that cover the two-
year election cycle in which the contribution was received and that 
disclose itemizable contributions from the same contributor. However, 
political committees are not required to file amendments to reports 
covering previous election cycles.

[45 FR 15108, Mar. 7, 1980, as amended at 58 FR 57729, Oct. 27, 1993; 62 
FR 23336, Apr. 30, 1997]



Sec. 104.8  Uniform reporting of receipts.

    (a) A reporting committee shall disclose the identification of each 
individual who contributes an amount in excess of $200 to the 
committee's federal account(s). This identification shall include the 
individual's name, mailing address, occupation, the name of his or her 
employer, if any, and the date of receipt and amount of any such 
contribution. If an individual contributor's name is known to have 
changed since an earlier contribution reported during the calendar year, 
the exact name or address previously used shall be noted with the first 
reported contribution from that contributor subsequent to the name 
change.
    (b) In each case where a contribution received from an individual in 
a reporting period is added to previously unitemized contributions from 
the same individual and the aggregate exceeds $200 in a calendar year 
the reporting committee shall disclose the identification of such 
individual along with the date of receipt and amount of any such 
contribution. Except for contributions by payroll deduction, each 
additional contribution from the individual shall be separately 
itemized. In the case of a political committee other than an authorized 
committee which receives contributions through a payroll deduction plan, 
such committee is not required to separately itemize each additional 
contribution received from the contributor during the reporting period. 
In lieu of separate itemization, such committee may report: the 
aggregate amount of contributions received from the contributor through 
the payroll deduction plan during the reporting period; the 
identification of the individual; and a statement of the amount deducted 
per pay period.
    (c) Absent evidence to the contrary, any contribution made by check, 
money order, or other written instrument shall be reported as a 
contribution by the last person signing the instrument prior to delivery 
to the candidate or committee.
    (d)(1) If an itemized contribution is made by more than one person 
in a single written instrument, the treasurer shall report the amount to 
be attributed to each contributor.
    (2)(i) If a contribution is redesignated by a contributor, in 
accordance with 11 CFR 110.1(b) or 110.2(b), the treasurer of the 
authorized political committee receiving the contribution shall report 
the redesignation in a memo entry on Schedule A of the report covering 
the reporting period in which the redesignation is received. The memo 
entry for each redesignated contribution shall be reported in the 
following manner--
    (A) The first part of the memo entry shall disclose all of the 
information for the contribution as it was originally reported on 
Schedule A;
    (B) The second part of the memo entry shall disclose all of the 
information for the contribution as it was redesignated by the 
contributor, including the election for which the contribution was 
redesignated and the date on which the redesignation was received.
    (ii) If a contribution from a political committee is redesignated by 
the contributing political committee in accordance with 11 CFR 110.1(b) 
or 110.2(b), the treasurer of such political committee shall report the 
redesignation in a memo entry on Schedule B of the report covering the 
reporting period in which the redesignation is made. The memo entry for 
each redesignated contribution shall be reported in the following 
manner--
    (A) The first part of the memo entry shall disclose all of the 
information for the contribution as it was originally reported on 
Schedule B;

[[Page 95]]

    (B) The second part of the memo entry shall disclose all of the 
information for the contribution as it was redesignated by the 
contributing political committee, including the election for which the 
contribution was redesignated and the date on which the redesignation 
was made.
    (3) If an itemized contribution is reattributed by the 
contributor(s) in accordance with 11 CFR 110.1(k), the treasurer shall 
report the reattribution in a memo entry on Schedule A of the report 
covering the reporting period in which the reattribution is received. 
The memo entry for each reattributed contribution shall be reported in 
the following manner--
    (i) The first part of the memo entry shall disclose all of the 
information for the contribution as it was originally reported on 
Schedule A;
    (ii) The second part of the memo entry shall disclose all of the 
information for the contribution as it was reattributed by the 
contributors, including the date on which the reattribution was 
received.
    (4) If a contribution is refunded to the contributor, the treasurer 
of the political committee making the refund shall report the refund on 
Schedule B of the report covering the reporting period in which the 
refund is made, in accordance with 11 CFR 103.3(b)(5) and 104.3(b). If a 
contribution is refunded to a political committee, the treasurer of the 
political committee receiving the refund shall report the refund on 
Schedule A of the report covering the reporting period in which the 
refund is received, in accordance with 11 CFR 104.3(a).
    (e) National party committees shall disclose in a memo Schedule A 
information about each individual, committee, corporation, labor 
organization, or other entity that donates an aggregate amount in excess 
of $200 in a calendar year to the committee's non-federal account(s). 
This information shall include the donating individual's or entity's 
name, mailing address, occupation or type of business, and the date of 
receipt and amount of any such donation. If a donor's name is known to 
have changed since an earlier donation reported during the calendar 
year, the exact name or address previously used shall be noted with the 
first reported donation from that donor subsequent to the name change. 
The memo entry shall also include, where applicable, the information 
required by paragraphs (b) through (d) of this section.
    (f) National party committees shall also disclose in a memo Schedule 
A information about each individual, committee, corporation, labor 
organization, or other entity that donates an aggregate amount in excess 
of $200 in a calendar year to the committee's building fund account(s). 
This information shall include the donating individual's or entity's 
name, mailing address, occupation or type of business, and the date of 
receipt and amount of any such donation. If a donor's name is known to 
have changed since an earlier donation reported during the calendar 
year, the exact name or address previously used shall be noted with the 
first reported donation from that donor subsequent to the name change. 
The memo entry shall also include, where applicable, the information 
required by paragraphs (b) through (d) of this section.

[45 FR 15108, Mar. 7, 1980, as amended at 52 FR 774, Jan. 9, 1987; 55 FR 
26067, June 26, 1990]



Sec. 104.9  Uniform reporting of disbursements.

    (a) Political committees shall report the full name and mailing 
address of each person to whom an expenditure in an aggregate amount or 
value in excess of $200 within the calendar year is made from the 
reporting committee's federal account(s), together with the date, amount 
and purpose of such expenditure, in accordance with 11 CFR 104.9(b). As 
used in 11 CFR 104.9, purpose means a brief statement or description as 
to the reasons for the expenditure. See 11 CFR 104.3(b)(3)(i)(A).
    (b) In each case when an expenditure made to a recipient in a 
reporting period is added to previously unitemized expenditures to the 
same recipient and the total exceeds $200 for the calendar year, the 
reporting committee shall disclose the recipient's full name and mailing 
address on the prescribed reporting forms, together with the date, 
amount and purpose of such expenditure. As used in 11 CFR 104.9, purpose 
means a brief statement or description

[[Page 96]]

as to the reason for the disbursement as defined at 11 CFR 
104.3(b)(3)(i)(A).
    (c) National party committees shall report in a memo Schedule B the 
full name and mailing address of each person to whom a disbursement in 
an aggregate amount or value in excess of $200 within the calendar year 
is made from the committee's non-federal account(s), together with the 
date, amount and purpose of such disbursement, in accordance with 11 CFR 
104.9(b). As used in 11 CFR 104.9, purpose means a brief statement or 
description as to the reasons for the disbursement. See 11 CFR 
104.3(b)(3)(i)(A).
    (d) National party committees shall report in a memo Schedule B the 
full name and mailing address of each person to whom a disbursement in 
an aggregate amount or value in excess of $200 within the calendar year 
is made from the committee's building fund account(s), together with the 
date, amount and purpose of such disbursement, in accordance with 11 CFR 
104.9(b). As used in 11 CFR 104.9, purpose means a brief statement or 
description as to the reasons for the disbursement. See 11 CFR 
104.3(b)(3)(i)(A).
    (e) National party committees shall report in a memo Schedule B each 
transfer from their non-federal account(s) to the non-federal account(s) 
of a state or local party committee.

[45 FR 15108, Mar. 7, 1980, as amended at 55 FR 26067, June 26, 1990]



Sec. 104.10  Reporting of expenses allocated among candidates and activities.

    (a) Expenses allocated among candidates. A political committee 
making an expenditure on behalf of more than one clearly identified 
candidate for federal office shall allocate the expenditure among the 
candidates pursuant to 11 CFR part 106. Payments involving both 
expenditures on behalf of one or more clearly identified federal 
candidates and disbursements on behalf of one or more clearly identified 
non-federal candidates shall also be allocated pursuant to 11 CFR part 
106. For allocated expenditures, the committee shall report the amount 
of each in-kind contribution, independent expenditure, or coordinated 
expenditure attributed to each federal candidate. If a payment also 
includes amounts attributable to one or more non-federal candidates, and 
is made by a political committee with separate federal and non-federal 
accounts, then the payment shall be made according to the procedures set 
forth in 11 CFR 106.5(g) or 106.6(e), as appropriate, but shall be 
reported pursuant to paragraphs (a)(1) through (a)(4), as follows:
    (1) Reporting of allocation of expenses attributable to specific 
federal and non-federal candidates. In each report disclosing a payment 
that includes both expenditures on behalf of one or more federal 
candidates and disbursements on behalf of one or more non-federal 
candidates, the committee shall assign a unique identifying title or 
code to each program or activity conducted on behalf of such candidates, 
shall state the allocation ratio calculated for the program or activity, 
and shall explain the manner in which the ratio was derived. The 
committee shall also summarize the total amounts attributed to each 
candidate, to date, for each joint program or activity.
    (2) Reporting of transfers between accounts for the purpose of 
paying expenses attributable to specific federal and non-federal 
candidates. A political committee that pays allocable expenses in 
accordance with 11 CFR 106.5(g) or 106.6(e) shall report each transfer 
of funds from its non-federal account to its federal account or to its 
separate allocation account for the purpose of paying such expenses. In 
the report covering the period in which each transfer occurred, the 
committee shall explain in a memo entry the allocable expenses to which 
the transfer relates and the date on which the transfer was made. If the 
transfer includes funds for the allocable costs of more than one program 
or activity, the committee shall itemize the transfer, showing the 
amounts designated for each program or activity conducted on behalf of 
one or more clearly identified federal candidates and one or more 
clearly identified non-federal candidates.
    (3) Reporting of allocated disbursements attributable to specific 
federal and non-federal candidates. A political committee that pays 
allocable expenses in accordance with 11 CFR 106.5(g) or

[[Page 97]]

106.6(e) shall also report each disbursement from its federal account or 
its separate allocation account in payment for a program or activity 
conducted on behalf of one or more clearly identified federal candidates 
and one or more clearly identified non-federal candidates. In the report 
covering the period in which the disbursement occurred, the committee 
shall state the full name and address of each person to whom the 
disbursement was made, and the date, amount and purpose of each such 
disbursement. If the disbursement includes payment for the allocable 
costs of more than one program or activity, the committee shall itemize 
the disbursement, showing the amounts designated for payment of each 
program or activity conducted on behalf of one or more clearly 
identified federal candidates and one or more clearly identified non-
federal candidates. The committee shall also report the amount of each 
in-kind contribution, independent expenditure, or coordinated 
expenditure attributed to each federal candidate, and the total amount 
attributed to the non-federal candidate(s). In addition, the committee 
shall report the total amount expended by the committee that year, to 
date, for each joint program or activity.
    (4) Recordkeeping. The treasurer shall retain all documents 
supporting the committee's allocation on behalf of specific federal and 
non-federal candidates, in accordance with 11 CFR 104.14.
    (b) Expenses allocated among activities. A political committee that 
has established separate federal and non-federal accounts under 11 CFR 
102.5(a)(1)(i) shall allocate between those accounts its administrative 
expenses and its costs for fundraising, exempt activities, and generic 
voter drives according to 11 CFR 106.5 or 106.6, as appropriate, and 
shall report those allocations according to paragraphs (b) (1) through 
(5), as follows:
    (1) Reporting of allocation of administrative expenses and costs of 
generic voter drives. (i) In the first report in a calendar year 
disclosing a disbursement for administrative expenses or generic voter 
drives, as described in 11 CFR 106.5(a)(2) or 106.6(b), the committee 
shall state the allocation ratio to be applied to these categories of 
activity according to 11 CFR 106.5 (b), (c) or (d) or 106.6(c), and the 
manner in which it was derived. The Senate and House campaign committees 
of each political party shall also state whether the calculated ratio or 
the minimum federal percentage required by 11 CFR 106.5(c)(2) will be 
used.
    (ii) In each subsequent report in the calendar year itemizing an 
allocated disbursement for administrative expenses or generic voter 
drives:
    (A) The committee shall state the category of activity for which 
each allocated disbursement was made, and shall summarize the total 
amount spent by the federal and non-federal accounts that year, to date, 
for each such category.
    (B) Nonconnected committees, separate segregated funds, and Senate 
and House campaign committees of a national party that have allocated 
expenses according to the funds expended method as described in 11 CFR 
106.5(c)(1) or 106.6(c) shall also report in a memo entry the total 
amounts expended in donations and direct disbursements on behalf of 
specific state and local candidates, to date, in that calendar year.
    (2) Reporting of allocation of the direct costs of fundraising and 
costs of exempt activities. In each report disclosing a disbursement for 
the direct costs of a fundraising program or an exempt activity, as 
described in 11 CFR 106.5(a)(2) or 106.6(b), the committee shall assign 
a unique identifying title or code to each such program or activity, 
shall state the allocation ratio calculated for the program or activity 
according to 11 CFR 106.5 (e) and (f) or 106.6(d), and shall explain the 
manner in which the ratio was derived. The committee shall also 
summarize the total amounts spent by the federal and non-federal 
accounts that year, to date, for each such program or activity.
    (3) Reporting of transfers between accounts for the purpose of 
paying allocable expenses. A political committee that pays allocable 
expenses in accordance with 11 CFR 106.5(g) or 106.6(e) shall report 
each transfer of funds from its

[[Page 98]]

non-federal account to its federal account or to its separate allocation 
account for the purpose of paying such expenses. In the report covering 
the period in which each transfer occurred, the committee shall explain 
in a memo entry the allocable expenses to which the transfer relates and 
the date on which the transfer was made. If the transfer includes funds 
for the allocable costs of more than one activity, the committee shall 
itemize the transfer, showing the amounts designated for administrative 
expenses and generic voter drives, and for each fundraising program or 
exempt activity, as described in 11 CFR 106.5(a)(2) or 106.6(b).
    (4) Reporting of allocated disbursements. A political committee that 
pays allocable expenses in accordance with 11 CFR 106.5(g) or 106.6(e) 
shall also report each disbursement from its federal account or its 
separate allocation account in payment for a joint federal and non-
federal expense or activity. In the report covering the period in which 
the disbursement occurred, the committee shall state the full name and 
address of each person to whom the disbursement was made, and the date, 
amount and purpose of each such disbursement. If the disbursement 
includes payment for the allocable costs of more than one activity, the 
committee shall itemize the disbursement, showing the amounts designated 
for payment of administrative expenses and generic voter drives, and for 
each fundraising program or exempt activity, as described in 11 CFR 
106.5(a)(2) or 106.6(b). The committee shall also report the total 
amount expended by the committee that year, to date, for each category 
of activity.
    (5) Recordkeeping. The treasurer shall retain all documents 
supporting the committee's allocated disbursements for three years, in 
accordance with 11 CFR 104.14.

[55 FR 26068, June 26, 1990; 55 FR 34007, Aug. 20, 1990]



Sec. 104.11  Continuous reporting of debts and obligations.

    (a) Debts and obligations owed by or to a political committee which 
remain outstanding shall be continuously reported until extinguished. 
See 11 CFR 104.3(d). These debts and obligations shall be reported on 
separate schedules together with a statement explaining the 
circumstances and conditions under which each debt and obligation was 
incurred or extinguished. Where such debts and obligations are settled 
for less than their reported amount or value, the reporting committee 
shall include a statement as to the circumstances and conditions under 
which the debt or obligation was extinguished and the amount paid.
    (b) A debt or obligation, including a loan, written contract, 
written promise or written agreement to make an expenditure, the amount 
of which is $500 or less, shall be reported as of the time payment is 
made or not later than 60 days after such obligation is incurred, 
whichever comes first. A debt or obligation, including a loan, written 
contract, written promise or written agreement to make an expenditure, 
the amount of which is over $500 shall be reported as of the date on 
which the debt or obligation is incurred, except that any obligation 
incurred for rent, salary or other regularly reoccurring administrative 
expense shall not be reported as a debt before the payment due date. See 
11 CFR 116.6. If the exact amount of a debt or obligation is not known, 
the report shall state that the amount reported is an estimate. Once the 
exact amount is determined, the political committee shall either amend 
the report(s) containing the estimate or indicate the correct amount on 
the report for the reporting period in which such amount is determined.

[45 FR 15108, Mar. 7, 1980, as amended at 55 FR 26386, June 27, 1990]



Sec. 104.12  Beginning cash on hand for political committees.

    Political committees which have cash on hand at the time of 
registration shall disclose on their first report the source(s) of such 
funds, including the information required by 11 CFR 104.3(a)(1). The 
cash on hand balance is assumed to be composed of those contributions 
most recently received by the committee. The committee shall exclude 
from funds to be used for Federal elections any contributions not 
permissible under the Act. See 11 CFR parts 110, 114, and 115.

[[Page 99]]



Sec. 104.13  Disclosure of receipt and consumption of in-kind contributions.

    (a)(1) The amount of an in-kind contribution shall be equal to the 
usual and normal value on the date received. Each in-kind contribution 
shall be reported as a contribution in accordance with 11 CFR 104.3(a).
    (2) Except for items noted in 11 CFR 104.13(b), each in-kind 
contribution shall also be reported as an expenditure at the same usual 
and normal value and reported on the appropriate expenditure schedule, 
in accordance with 11 CFR 104.3(b).
    (b) Contributions of stocks, bonds, art objects, and other similar 
items to be liquidated shall be reported as follows:
    (1) If the item has not been liquidated at the close of a reporting 
period, the committee shall record as a memo entry (not as cash) the 
item's fair market value on the date received, including the name and 
mailing address (and, where in excess of $200, the occupation and name 
of employer) of the contributor.
    (2) When the item is sold, the committee shall record the proceeds. 
It shall also report the (i) name and mailing address (and, where in 
excess of $200, the occupation and name of employer) of the purchaser, 
if purchased directly from the candidate or committee (as the purchaser 
shall be considered to have made a contribution to the committee), and 
(ii) the identification of the original contributor.



Sec. 104.14  Formal requirements regarding reports and statements.

    (a) Each individual having the responsibility to file a designation, 
report or statement required under this subchapter shall sign the 
original designation, report or statement.
    (b) Each political committee or other person required to file any 
report or statement under this subchapter shall maintain all records 
relevant to such reports or statements as follows:
    (1) Maintain records, including bank records, with respect to the 
matters required to be reported, including vouchers, worksheets, 
receipts, bills and accounts, which shall provide in sufficient detail 
the necessary information and data from which the filed reports and 
statements may be verified, explained, clarified, and checked for 
accuracy and completeness;
    (2) Preserve a copy of each report or statement required to be filed 
under 11 CFR parts 102 and 104;
    (3) Keep all reports required to be preserved under 11 CFR 104.14 
available for audit, inspection, or examination by the Commission or its 
authorized representative(s) for a period of not less than 3 years after 
the report or statement is filed. (See 11 CFR 102.9(c) for requirements 
relating to preservation of records and accounts.)
    (c) Acknowledgements by the Commission or the Secretary of the 
Senate, of the receipt of Statements of Organization, reports or other 
statements filed under 11 CFR parts 101, 102 and 104 are intended solely 
to inform the person filing the report of its receipt and neither the 
acknowledgement nor the acceptance of a report or statement shall 
constitute express or implied approval, or in any manner indicate that 
the contents of any report or statement fulfill the filing or other 
requirements of the Act or of these regulations.
    (d) Each treasurer of a political committee, and any other person 
required to file any report or statement under these regulations and 
under the Act, shall be personally responsible for the timely and 
complete filing of the report or statement and for the accuracy of any 
information or statement contained in it.

[45 FR 15108, Mar. 7, 1980, as amended at 61 FR 3549, Feb. 1, 1996]



Sec. 104.15  Sale or use restriction (2 U.S.C. 438(a)(4)).

    (a) Any information copied, or otherwise obtained, from any report 
or statement, or any copy, reproduction, or publication thereof, filed 
under the Act, shall not be sold or used by any person for the purpose 
of soliciting contributions or for any commercial purpose, except that 
the name and address of any political committee may be used to solicit 
contributions from such committee.
    (b) For purposes of 11 CFR 104.15, soliciting contributions includes 
soliciting any type of contribution or donation,

[[Page 100]]

such as political or charitable contributions.
    (c) The use of information, which is copied or otherwise obtained 
from reports filed under 11 CFR part 104, in newspapers, magazines, 
books or other similar communications is permissible as long as the 
principal purpose of such communications is not to communicate any 
contributor information listed on such reports for the purpose of 
soliciting contributions or for other commercial purposes.

[45 FR 15108, Mar. 7, 1980, as amended at 61 FR 3549, Feb. 1, 1996]



Sec. 104.16  Audits (2 U.S.C. 438(b)).

    (a) The Commission may conduct audits of any political committee 
required to register under 11 CFR part 102 and to report under 11 CFR 
part 104. Prior to conducting any such audit or investigation, the 
Commission shall conduct an internal review of reports filed by selected 
committees to determine whether reports filed by a particular committee 
meet thresholds established by the Commission for substantial compliance 
with the Act. Such thresholds may vary according to the type of 
political committee being reviewed.
    (b) The Commission may, upon affirmative vote of four members, 
conduct an audit and field investigation of any committee which meets 
the thresholds established pursuant to 11 CFR 104.16(a). All such audits 
and investigations shall commence within 30 days of such vote except 
that any audit or investigation of an authorized committee of a 
candidate shall be commenced within 6 months of the election for which 
such committee was authorized.
    (c) The Commission may, upon affirmative vote of four members, 
conduct an audit and field investigation of any committee pursuant to 11 
CFR 111.10.
    (d) All audits and field investigations concerning the verification 
for and the receipt and use of payments under chapters 95 and 96 of 
title 26 shall be given priority over any audit or investigation of 
committees not receiving such payments.



Sec. 104.17  [Reserved]



Sec. 104.18  Electronic filing of reports (2 U.S.C. 432(d) and 434(a)(11)).

    (a) General. A political committee that files reports with the 
Commission, as provided in 11 CFR part 105, may choose to file its 
reports in an electronic format that meets the requirements of this 
section. If a committee chooses to file its reports electronically, and 
its first electronic report passes the Commission's validation program 
in accordance with paragraph (c) of this section, it must continue to 
file in an electronic format all reports covering financial activity for 
that calendar year, unless the Commission determines that extraordinary 
and unforeseeable circumstances have made it impracticable for the 
committee to continue filing electronically.
    (b) Format specifications. Reports filed electronically shall 
conform to the technical specifications described in the Federal 
Election Commission's Electronic Filing Specifications Requirements. The 
data contained in the computerized magnetic media provided to the 
Commission shall be organized in the order specified by the Electronic 
Filing Specifications Requirements.
    (c) Acceptance of reports filed in electronic format. (1) Each 
committee that submits an electronic report shall check the report 
against the Commission's validation program before it is submitted, to 
ensure that the files submitted meet the Commission's format 
specifications and can be read by the Commission's computer system. Each 
report submitted in an electronic format under this section shall also 
be checked upon receipt against the Commission's validation program. The 
Commission's validation program is available on request and at no 
charge.
    (2) A report that does not pass the validation program will not be 
accepted by the Commission and will not be considered filed. If a 
committee submits a report that does not pass the validation program, 
the Commission will notify the committee that the report has not been 
accepted.
    (d) Amended reports. If a committee files an amendment to a report 
that was filed electronically, it shall also submit the amendment in an 
electronic

[[Page 101]]

format. The committee shall submit a complete version of the report as 
amended, rather than just those portions of the report that are being 
amended. In addition, the amended report shall contain electronic flags 
or markings that point to the portions of the report that are being 
amended.
    (e) Signature requirements. The committee's treasurer, or any other 
person having the responsibility to file a designation, report or 
statement under this subchapter, shall verify the report in one of the 
following ways: by submitting a signed certification on paper that is 
submitted with the computerized media; or by submitting a digitized copy 
of the signed certification as a separate file in the electronic 
submission. Each verification submitted under this section shall certify 
that the person has examined the report or statement and, to the best of 
the signatory's knowledge and belief, it is true, correct and complete. 
Any verification under this section shall be treated for all purposes 
(including penalties for perjury) in the same manner as a verification 
by signature on a report submitted in a paper format.
    (f) Schedules and forms with special requirements. The following 
list of schedules, materials, and forms have special signature and other 
requirements and reports containing these documents shall include, in 
addition to providing the required data within the electronic report, 
either a paper copy submitted with the committee's electronic report or 
a digitized version submitted as a separate file in the electronic 
submission: Schedule C-1 (Loans and Lines of Credit From Lending 
Institutions), including copies of loan agreements required to be filed 
with that Schedule, Schedule E (Itemized Independent Expenditures), Form 
5 (Report of Independent Expenditures Made and Contributions Received), 
and Form 8 (Debt Settlement Plan). The committee shall submit any paper 
materials together with the electronic media containing the committee's 
report.
    (g) Preservation of reports. For any report filed in electronic 
format under this section, the treasurer shall retain a machine-readable 
copy of the report as the copy preserved under 11 CFR 104.14(b)(2). In 
addition, the treasurer shall retain the original signed version of any 
documents submitted in a digitized format under paragraphs (e) and (f) 
of this section.

[61 FR 42376, Aug. 15, 1996]



PART 105--DOCUMENT FILING (2 U.S.C. 432(g))--Table of Contents




Sec.
105.1  Place of filing; House candidates and their authorized committees 
          (2 U.S.C. 432(g)(1)).
105.2  Place of filing; Senate candidates, their principal campaign 
          committees, and committees supporting only Senate candidates 
          (2 U.S.C. 432(g)(2)).
105.3  Place of filing; Presidential candidates and their principal 
          campaign committees (2 U.S.C. 432(g)(4)).
105.4  Place of filing; political committees and other persons (2 U.S.C. 
          432(g)(4)).
105.5  Transmittal of microfilm copies and photocopies of original 
          reports filed with the Secretary of the Senate to the 
          Commission (2 U.S.C. 432(g)(3)).

    Authority: 2 U.S.C. 432(g), 438(a)(8).

    Source: 45 FR 15116, Mar. 7, 1980, unless otherwise noted.



Sec. 105.1  Place of filing; House candidates and their authorized committees (2 U.S.C. 432(g)(1)).

    All designations, statements, reports, and notices, as well as any 
modification(s) or amendment(s) thereto, required to be filed under 11 
CFR parts 101, 102, and 104 by a candidate for nomination or election to 
the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress, by his or her authorized committee(s), shall be filed 
in original form with, and received by, the Federal Election Commission.

[61 FR 3550, Feb. 1, 1996]



Sec. 105.2  Place of filing; Senate candidates, their principal campaign committees, and committees supporting only Senate candidates (2 U.S.C. 432(g)(2)).

    All designations, statements, reports, and notices as well as any 
modification(s) or amendment(s) thereto, required to be filed under 11 
CFR parts 101, 102, and 104 by a candidate for nomination or election to 
the office of United States Senator, by his or her principal campaign 
committee or by

[[Page 102]]

any other political committee(s) which supports only candidates for 
nomination for election or election to the Senate of the United States 
shall be filed in original form with, and received by, the Secretary of 
the Senate, as custodian for the Federal Election Commission.



Sec. 105.3  Place of filing; Presidential candidates and their principal campaign committees (2 U.S.C. 432(g)(4)).

    All designations, statements, reports, and notices, as well as any 
modification(s) or amendment(s) thereto, required to be filed under 11 
CFR parts 101, 102 and 104 by a candidate for nomination for election or 
election to the office of President or Vice President of the United 
States or by his or her principal campaign committee shall be filed in 
original form with the Federal Election Commission.



Sec. 105.4  Place of filing; political committees and other persons (2 U.S.C. 432(g)(4)).

    All designations, statements, reports, and notices, as well as any 
modifications or amendments thereto, required to be filed under 11 CFR 
parts 101, 102, and 104 by a political committee other than any 
principal campaign committee or any committee referred to in 11 CFR 
105.2 or 105.3, by persons other than political committees making 
independent expenditures under 11 CFR part 109, and by persons required 
to report the cost of communications under 11 CFR 104.6, shall be filed 
in original form with the Federal Election Commission.

[45 FR 15116, Mar. 7, 1980, as amended at 61 FR 3550, Feb. 1, 1996]



Sec. 105.5  Transmittal of microfilm copies and photocopies of original reports filed with the Secretary of the Senate to the Commission (2 U.S.C. 432(g)(3)).

    (a) Either a microfilmed copy or photocopy of all original 
designations, statements, reports, modifications or amendments required 
to be filed pursuant to 11 CFR 105.2 shall be transmitted by the 
Secretary of the Senate to the Commission as soon as possible, but in 
any case no later than two (2) working days after receiving such 
designations, statements, reports, modifications, or amendments.
    (b) The Secretary of the Senate shall then forward to the Commission 
a microfilm copy and a photocopy of each designation, statement, and 
report, or any modification or amendment thereto, filed with the 
Secretary pursuant to 11 CFR 105.2.
    (c) The Secretary of the Senate shall place a time and date stamp on 
each original designation, statement, report, modification or amendment 
received.

[61 FR 3550, Feb. 1, 1996]



PART 106--ALLOCATIONS OF CANDIDATE AND COMMITTEE ACTIVITIES--Table of Contents




Sec.
106.1  Allocation of expenses between candidates.
106.2  State allocation of expenditures incurred by authorized 
          committees of Presidential primary candidates receiving 
          matching funds.
106.3  Allocation of expenses between campaign and non-campaign related 
          travel.
106.4  Allocation of polling expenses.
106.5  Allocation of expenses between federal and non-federal activities 
          by party committees.
106.6  Allocation of expenses between federal and non-federal activities 
          by separate segregated funds and nonconnected committees.

    Authority: 2 U.S.C. 438(a)(8), 441a(b), 441a(g).



Sec. 106.1  Allocation of expenses between candidates.

    (a) General rule. (1) Expenditures, including in-kind contributions, 
independent expenditures, and coordinated expenditures made on behalf of 
more than one clearly identified federal candidate shall be attributed 
to each such candidate according to the benefit reasonably expected to 
be derived. For example, in the case of a publication or broadcast 
communication, the attribution shall be determined by the proportion of 
space or time devoted to each candidate as compared to the total space 
or time devoted to all candidates. In the case of a fundraising program 
or event where funds are collected by one committee for more than one 
clearly identified candidate, the

[[Page 103]]

attribution shall be determined by the proportion of funds received by 
each candidate as compared to the total receipts by all candidates. 
These methods shall also be used to allocate payments involving both 
expenditures on behalf of one or more clearly identified federal 
candidates and disbursements on behalf of one or more clearly identified 
non-federal candidates.
    (2) An expenditure made on behalf of more than one clearly 
identified federal candidate shall be reported pursuant to 11 CFR 
104.10(a). A payment that also includes amounts attributable to one or 
more non-federal candidates, and that is made by a political committee 
with separate federal and non-federal accounts, shall be made according 
to the procedures set forth in 11 CFR 106.5(g) or 106.6(e), as 
appropriate, but shall be reported pursuant to 11 CFR 104.10(a).
    (b) An authorized expenditure made by a candidate or political 
committee on behalf of another candidate shall be reported as a 
contribution in-kind (transfer) to the candidate on whose behalf the 
expenditure was made, except that expenditures made by party committees 
pursuant to Sec. 110.7 need only be reported as an expenditure.
    (c) Exceptions:
    (1) Expenditures for rent, personnel, overhead, general 
administrative, fund-raising, and other day-to-day costs of political 
committees need not be attributed to individual candidates, unless these 
expenditures are made on behalf of a clearly identified candidate and 
the expenditure can be directly attributed to that candidate.
    (2) Expenditures for educational campaign seminars, for training of 
campaign workers, and for registration or get-out-the-vote drives of 
committees need not be attributed to individual candidates unless these 
expenditures are made on behalf of a clearly identified candidate, and 
the expenditure can be directly attributed to that candidate.
    (3) Payments made for the cost of certain voter registration and 
get-out-the-vote activities conducted by State or local party 
organizations on behalf of any Presidential or Vice-Presidential 
candidate(s) are exempt from the definition of a contribution or an 
expenditure under 11 CFR 100.7(b)(17) and 100.8(b)(18). If the State or 
local party organization includes references to any candidate(s) seeking 
nomination or election to the House of Representatives or Senate of the 
United States the portion of the cost of such activities allocable to 
such candidate(s) shall be considered a contribution to or an 
expenditure on behalf of such candidate(s), unless such reference is 
incidental to the overall activity. If such reference is incidental to 
the overall activity, such costs shall not be considered a contribution 
to or expenditure on behalf of any candidate(s).
    (d) For purposes of this section, clearly identified shall have the 
same meaning as set forth at 11 CFR 100.17.
    (e) Party committees, separate segregated funds, and nonconnected 
committees that make disbursements for administrative expenses, 
fundraising, exempt activities, or generic voter drives in connection 
with both federal and non-federal elections shall allocate their 
expenses in accordance with Sec. 106.5 or Sec. 106.6, as appropriate.

(2 U.S.C. 438(a)(8))

[41 FR 35944, Aug. 25, 1976, as amended at 45 FR 15117, Mar. 7, 1980; 45 
FR 21209, Apr. 1, 1980; 55 FR 26069, June 26, 1990; 60 FR 35305, July 6, 
1995]



Sec. 106.2  State allocation of expenditures incurred by authorized committees of Presidential primary candidates receiving matching funds.

    (a) General--(1) This section applies to Presidential primary 
candidates receiving or expecting to receive federal matching funds 
pursuant to 11 CFR parts 9031 et seq. The expenditures described in 11 
CFR 106.2(b)(2) shall be allocated to a particular State if incurred by 
a candidate's authorized committee(s) for the purpose of influencing the 
nomination of that candidate for the office of President with respect to 
that State. An expenditure shall not necessarily be allocated to the 
State in which the expenditure is incurred or paid. In the event that 
the Commission disputes the candidate's allocation or claim of exemption 
for a particular expense, the candidate shall demonstrate, with 
supporting documentation, that his or her proposed

[[Page 104]]

method of allocation or claim of exemption was reasonable. Expenditures 
required to be allocated to the primary election under 11 CFR 9034.4(e) 
shall also be allocated to particular states in accordance with this 
section.
    (2) Disbursements made prior to the time an individual becomes a 
candidate for the purpose of determining whether that individual should 
become a candidate pursuant to 11 CFR 100.7(b)(1) and 100.8(b)(1), i.e., 
payments for testing the waters, shall be allocable expenditures under 
this section if the individual becomes a candidate.
    (b) Method of allocating expenditures among States--(1) General 
allocation method. Unless otherwise specified under 11 CFR 106.2(b)(2), 
an expenditure described in 11 CFR 106.2(b)(2) and incurred by a 
candidate's authorized committee(s) for the purpose of influencing the 
nomination of that candidate in more than one State shall be allocated 
to each State on a reasonable and uniformly applied basis. The total 
amount allocated to a particular State may be reduced by the amount of 
exempt fundraising expenses for that State, as specified in 11 CFR 
110.8(c)(2).
    (2) Specific allocation methods. Expenditures that fall within the 
categories listed below shall be allocated based on the following 
methods. The method used to allocate a category of expenditures shall be 
based on consistent data for each State to which an allocation is made.
    (i) Media expenditures--(A) Print media. Except for expenditures 
exempted under 11 CFR 106.2(b)(2)(i) (E) and (F), allocation of 
expenditures for the publication and distribution of newspaper, magazine 
and other types of printed advertisements distributed in more than one 
State shall be made using relative circulation percentages in each State 
or an estimate thereof. For purposes of this section, allocation to a 
particular State will not be required if less than 3% of the total 
estimated readership of the publication is in that State.
    (B) Broadcast media. Except for expenditures exempted under 11 CFR 
106.2(b)(2)(i) (E) and (F), expenditures for radio, television and 
similar types of advertisements purchased in a particular media market 
that covers more than one State shall be allocated to each State in 
proportion to the estimated audience. This allocation of expenditures, 
shall be made using industry market data. If industry market data is not 
available, the committee shall obtain market data from the media carrier 
transmitting the advertisement(s).
    (C) Refunds for media expenditures. Refunds for broadcast time or 
advertisement space, purchased but not used, shall be credited to the 
States on the same basis as the original allocation.
    (D) Limits on allocation of media expenditures. No allocation of 
media expenditures shall be made to any State in which the primary 
election has already been held.
    (E) National advertising. Expenditures incurred for advertisements 
on national networks, national cable or in publications distributed 
nationwide need not be allocated to any State.
    (F) Media production costs. Expenditures incurred for production of 
media advertising, whether or not that advertising is used in more than 
one State, need not be allocated to any State.
    (G) Commissions. Expenditures for commissions, fees and other 
compensation for the purchase of broadcast or print media need not be 
allocated to any State.
    (ii) Expenditures for mass mailings and other campaign materials. 
Expenditures for mass mailings of more than 500 pieces to addresses in 
the same State, and expenditures for shipping campaign materials to a 
State, including pins, bumperstickers, handbills, brochures, posters and 
yardsigns, shall be allocated to that State. For purposes of this 
section, mass mailing includes newsletters and other materials in which 
the content of the materials is substantially identical. Records 
supporting the committee's allocations under this section shall include: 
For each mass mailing, documentation showing the total number of pieces 
mailed and the number mailed to each state or zip code; and, for other 
campaign materials acquired for use outside the State of purchase, 
records relating to any shipping costs incurred for transporting these 
items to each State.

[[Page 105]]

    (iii) Overhead expenditures--(A) Overhead expenditures of State 
offices and other facilities. Except for expenditures exempted under 11 
CFR 106.2(b)(2)(iii)(C), overhead expenditures of committee offices 
whose activities are directed at a particular State, and the costs of 
other facilities used for office functions and campaign events, shall be 
allocated to that State. An amount that does not exceed 10% of office 
overhead expenditures for a particular State may be treated as exempt 
compliance expenses, and may be excluded from allocation to that State.
    (B) Overhead expenditures of regional offices. Except for 
expenditures exempted under 11 CFR 106.2(b)(2)(iii)(C), overhead 
expenditures of a committee regional office or any committee office with 
responsibilities in two or more States shall be allocated to the State 
holding the next primary election, caucus or convention in the region. 
The committee shall maintain records to demonstrate that an office 
operated on a regional basis. These records should show, for example, 
the kinds of programs conducted from the office, the number and nature 
of contacts with other States in the region, and the amount of time 
devoted to regional programs by staff working in the regional office.
    (C) Overhead expenditures of national campaign headquarters. 
Expenditures incurred for administrative, staff, and overhead 
expenditures of the national campaign headquarters need not be allocated 
to any State, except as provided in paragraph (b)(2)(iv) of this 
section.
    (D) Definition of overhead expenditures. For purposes of 11 CFR 
106.2(b)(2)(iii), overhead expenditures include, but are not limited to, 
rent, utilities, equipment, furniture, supplies, and telephone service 
base charges. ``Telephone service base charges'' include any regular 
monthly charges for committee phone service, and charges for phone 
installation and intrastate phone calls other than charges related to a 
special program under 11 CFR 106.2(b)(2)(iv). Inter-state calls are not 
included in ``telephone service base charges.'' Overhead expenditures 
also include the costs of temporary offices established while the 
candidate is traveling in the State or in the final weeks before the 
primary election, as well as expenses paid by campaign staff and 
subsequently reimbursed by the committee, such as miscellaneous 
supplies, copying, printing and telephone expenses. See 11 CFR 116.5.
    (iv) Expenditures for special telephone programs. Expenditures for 
special telephone programs targeted at a particular State, including the 
costs of designing and operating the program, the costs of installing or 
renting telephone lines and equipment, toll charges, personnel costs, 
consultants' fees, related travel costs, and rental of office space, 
including a pro rata portion of national, regional or State office space 
used for such purposes, shall be allocated to that State based on the 
percentage of telephone calls made to that State. Special telephone 
programs include voter registration, get out the vote efforts, 
fundraising, and telemarketing efforts conducted on behalf of the 
candidate. A special telephone program is targeted at a particular State 
if 10% or more of the total telephone calls made each month are made to 
that State. Records supporting the committee's allocation of each 
special telephone program under this section shall include either the 
telephone bills showing the total number of calls made in that program 
and the number made to each State; or, a copy of the list used to make 
the calls, from which these numbers can be determined.
    (v) Public opinion poll expenditures. Expenditures incurred for the 
taking of a public opinion poll covering only one State shall be 
allocated to that State. Except for expenditures incurred in conducting 
a public opinion poll on a nationwide basis, expenditures incurred for 
the taking of a public opinion poll covering two or more States shall be 
allocated to those States based on the number of people interviewed in 
each State. Expenditures incurred for the taking of a public opinion 
poll include consultant's fees, travel costs and other expenses 
associated with designing and conducting the poll. Records supporting 
the committee's allocation under this section shall include 
documentation showing the total number of people contacted for each

[[Page 106]]

poll and the number contacted in each State.
    (3) National consulting fees. Expenditures for consultants' fees 
need not be allocated to any State if the fees are charged for 
consulting on national campaign strategy. Expenditures for consultants' 
fees charged for conducting special telephone programs and public 
opinion polls shall be allocated in accordance with paragraphs (b)(2) 
(iv) and (v) of this section.
    (c) Reporting. All expenditures allocated under this section shall 
be reported on FEC Form 3P, page 3.
    (d) Recordkeeping. All assumptions and supporting calculations for 
allocations made under this section shall be documented and retained for 
Commission inspection. In addition to the records specified in paragraph 
(b) of this section, the treasurer shall retain records supporting the 
committee's allocations of expenditures to particular States and claims 
of exemption from allocation under this section. If the records 
supporting the allocation or claim of exemption are not retained, the 
expenditure shall be considered allocable and shall be allocated to the 
State holding the next primary election, caucus or convention after the 
expenditure is incurred.

[56 FR 35909, July 29, 1991, as amended at 60 FR 31872, June 16, 1995]



Sec. 106.3  Allocation of expenses between campaign and non-campaign related travel.

    (a) This section applies to allocation for expenses between campaign 
and non-campaign related travel with respect to campaigns of candidates 
for Federal office, other than Presidential and Vice Presidential 
candidates who receive federal funds pursuant to 11 CFR part 9005 or 
9036. (See 11 CFR 9004.7 and 9034.7) All expenditures for campaign-
related travel paid for by a candidate from a campaign account or by his 
or her authorized committees or by any other political committee shall 
be reported.
    (b)(1) Travel expenses paid for by a candidate from personal funds, 
or from a source other than a political committee, shall constitute 
reportable expenditures if the travel is campaign-related.
    (2) Where a candidate's trip involves both campaign-related and non-
campaign-related stops, the expenditures allocable for campaign purposes 
are reportable, and are calculated on the actual cost-per-mile of the 
means of transportation actually used, starting at the point of origin 
of the trip, via every campaign-related stop and ending at the point of 
origin.
    (3) Where a candidate conducts any campaign-related activity in a 
stop, the stop is a campaign-related stop and travel expenditures made 
are reportable. Campaign-related activity shall not include any 
incidental contacts.
    (c)(1) Where an individual, other than a candidate, conducts 
campaign-related activities on a trip, the portion of the trip 
attributed to each candidate shall be allocated on a reasonable basis.
    (2) Travel expenses of a candidate's spouse and family are 
reportable as expenditures only if the spouse or family members conduct 
campaign-related activities.
    (d) Costs incurred by a candidate for the United States Senate or 
House of Representatives for travel between Washington, DC, and the 
State or district in which he or she is a candidate need not be reported 
herein unless the costs are paid by a candidate's authorized 
committee(s), or by any other political committee(s).
    (e) Notwithstanding paragraphs (b) and (c) of this section, the 
reportable expenditure for a candidate who uses government conveyance or 
accommodations for travel which is campaign-related is the rate for 
comparable commercial conveyance or accommodation. In the case of a 
candidate authorized by law or required by national security to be 
accompanied by staff and equipment, the allocable expenditures are the 
costs of facilities sufficient to accommodate the party, less authorized 
or required personnel and equipment. If such a trip includes both 
campaign and noncampaign stops,

[[Page 107]]

equivalent costs are calculated in accordance with paragraphs (b) and 
(c) of this section.


(Authority: 2 U.S.C. 438(a)(8))

[41 FR 35944, Aug. 25, 1976, as amended at 45 FR 15117, Mar. 7, 1980; 45 
FR 43387, June 27, 1980; 48 FR 5234, Feb. 4, 1983]



Sec. 106.4  Allocation of polling expenses.

    (a) The purchase of opinion poll results by a candidate or a 
candidate's authorized political committee or agent is an expenditure by 
the candidate. Regarding the purchase of opinion poll results for the 
purpose of determining whether an individual should become a candidate, 
see 11 CFR 100.8(b)(1).
    (b) The purchase of opinion poll results by a political committee or 
other person not authorized by a candidate to make expenditures and the 
subsequent acceptance of the poll results by a candidate or a 
candidate's authorized political committee or agent or by another 
unauthorized political committee is a contribution in-kind by the 
purchaser to the candidate or other political committee and an 
expenditure by the candidate or other political committee. Regarding the 
purchase of opinion poll results for the purpose of determining whether 
an individual should become a candidate, see 11 CFR 100.7(b)(1). The 
poll results are accepted by a candidate or other political committee if 
the candidate or the candidate's authorized political committee or agent 
or the other unauthorized political committee--
    (1) Requested the poll results before their receipt;
    (2) Uses the poll results; or
    (3) Does not notify the contributor that the results are refused.
    (c) The acceptance of any part of a poll's results which part, prior 
to receipt, has been made public without any request, authorization, 
prearrangement, or coordination by the candidate-receipient or political 
committee-recipient, shall not be treated as a contribution in-kind and 
expenditure under paragraph (b) of this section.
    (d) The purchase of opinion poll results by an unauthorized 
political committee for its own use, in whole or in part, is an overhead 
expenditure by the political committee under Sec. 106.1(c)(1) to the 
extent of the benefit derived by the committee.
    (e) The amount of a contribution under paragraph (b) of this section 
or of any expenditure under paragraphs (a) and (b) of this section 
attributable to each candidate-recipient or political committee-
recipient shall be--
    (1) That share of the overall cost of the poll which is allocable to 
each candidate (including State and local candidates) or political 
committee, based upon the cost allocation formula of the polling firm 
from which the results are purchased. Under this method the size of the 
sample, the number of computer column codes, the extent of computer 
tabulations, and the extent of written analysis and verbal consultation, 
if applicable, may be used to determine the shares; or
    (2) An amount computed by dividing the overall cost of the poll 
equally among candidates (including State and local candidates) or 
political committees receiving the results; or
    (3) A proportion of the overall cost of the poll equal to the 
proportion that the number of question results received by the candidate 
or political committee bears to the total number of question results 
received by all candidates (including State and local candidates) and 
political committees; or
    (4) An amount computed by any other method which reasonably reflects 
the benefit derived.
    (f) The first candidate(s) or committee(s) receiving poll results 
under paragraph (b) or (d) of this section and any candidate or 
political committee receiving poll results under paragraph (b) of this 
section within 15 days after receipt by the initial recipient(s) shall 
compute the amount of the contribution in-kind and the expenditure as 
provided in paragraph (e) of this section.
    (g) The amount of the contribution and expenditure reported by a 
candidate or a political committee receiving poll results under 
paragraph (b) of this section more than 15 days after receipt of such 
poll results by the initial recipient(s) shall be--

[[Page 108]]

    (1) If the results are received during the period 16 to 60 days 
following receipt by the initial recipient(s), 50 percent of the amount 
allocated to an initial recipient of the same results;
    (2) If the results are received during the period 61 to 180 days 
after receipt by the initial recipient(s), 5 percent of the amount 
allocated to an initial recipient of the same results;
    (3) If the results are received more than 180 days after receipt by 
the initial recipient(s), no amount need be allocated.
    (h) A contributor of poll results under paragraph (b) of this 
section shall maintain records sufficient to support the valuation of 
the contribution(s) in-kind and shall inform the candidate-recipient(s) 
or political committee-recipient(s) of the value of the contribution(s).

[41 FR 35944, Aug. 25, 1976, as amended at 45 FR 21209, Apr. 1, 1980]



Sec. 106.5  Allocation of expenses between federal and non-federal activities by party committees.

    (a) General rules. (1) Party committees that make disbursements in 
connection with federal and non-federal elections shall make those 
disbursements entirely from funds subject to the prohibitions and 
limitations of the Act, or from accounts established pursuant to 11 CFR 
102.5. Political committees that have established separate federal and 
non-federal accounts under 11 CFR 102.5(a)(1)(i) shall allocate expenses 
between those accounts according to this section. Organizations that are 
not political committees but have established separate federal and non-
federal accounts under 11 CFR 102.5(b)(1)(i), or that make federal and 
non-federal disbursements from a single account under 11 CFR 
102.5(b)(1)(ii) shall also allocate their federal and non-federal 
expenses according to this section. This section covers (i) general 
rules regarding allocation of federal and non-federal expenses by party 
committees, (ii) percentages to be allocated for administrative expenses 
and costs of generic voter drives by national party committees, (iii) 
methods for allocation of administrative expenses, costs of generic 
voter drives, and exempt activities by state and local party committees, 
and of fundraising costs by all party committees, and (iv) procedures 
for payment of allocable expenses. Requirements for reporting of 
allocated disbursements are set forth in 11 CFR 104.10.
    (2) Costs to be allocated. Committees that make disbursements in 
connection with federal and non-federal elections shall allocate 
expenses according to this section for the following categories of 
activity:
    (i) Administrative expenses including rent, utilities, office 
supplies, and salaries, except for such expenses directly attributable 
to a clearly identified candidate;
    (ii) The direct costs of a fundraising program or event including 
disbursements for solicitation of funds and for planning and 
administration of actual fundraising events, where federal and non-
federal funds are collected by one committee through such program or 
event;
    (iii) State and local party activities exempt from the definitions 
of contribution and expenditure under 11 CFR 100.7(b) (9), (15) or (17), 
and 100.8(b) (10), (16) or (18) (exempt activities) including the 
production and distribution of slate cards and sample ballots, campaign 
materials distributed by volunteers, and voter registration and get-out-
the-vote drives on behalf of the party's presidential and vice-
presidential nominees, where such activities are conducted in 
conjunction with non-federal election activities; and
    (iv) Generic voter drives including voter identification, voter 
registration, and get-out-the-vote drives, or any other activities that 
urge the general public to register, vote or support candidates of a 
particular party or associated with a particular issue, without 
mentioning a specific candidate.
    (b) National party committees other than Senate or House campaign 
committees; fixed percentages for allocating administrative expenses and 
costs of generic voter drives--(1) General rule. Each national party 
committee other than a Senate or House campaign committee shall allocate 
a fixed percentage of its administrative expenses and costs of generic 
voter drives, as described in paragraph (a)(2) of this section, to its 
federal and non-federal account(s) each

[[Page 109]]

year. These percentages shall differ according to whether or not the 
allocable expenses were incurred in a presidential election year. Such 
committees shall allocate the costs of each combined federal and non-
federal fundraising program or event according to paragraph (f) of this 
section, with no fixed percentages required.
    (2) Fixed percentages according to type of election year. National 
party committees other than the Senate or House campaign committees 
shall allocate their administrative expenses and costs of generic voter 
drives according to paragraphs (b)(2) (i) and (ii) as follows:
    (i) Presidential election years. In presidential election years, 
national party committees other than the Senate or House campaign 
committees shall allocate to their federal accounts at least 65% each of 
their administrative expenses and costs of generic voter drives.
    (ii) Non-presidential election years. In all years other than 
presidential election years, national party committees other than the 
Senate or House campaign committees shall allocate to their federal 
accounts at least 60% each of their administrative expenses and costs of 
generic voter drives.
    (c) Senate and House campaign committees of a national party; method 
and minimum federal percentage for allocating administrative expenses 
and costs of generic voter drives--(1) Method for allocating 
administrative expenses and costs of generic voter drives. Subject to 
the minimum percentage set forth in paragraph (c)(2) of this section, 
each Senate or House campaign committee of a national party shall 
allocate its administrative expenses and costs of generic voter drives, 
as described in paragraph (a)(2) of this section, according to the funds 
expended method, described in paragraphs (c)(1) (i) and (ii) as follows:
    (i) Under this method, expenses shall be allocated based on the 
ratio of federal expenditures to total federal and non-federal 
disbursements made by the committee during the two-year federal election 
cycle. This ratio shall be estimated and reported at the beginning of 
each federal election cycle, based upon the committee's federal and non-
federal disbursements in a prior comparable federal election cycle or 
upon the committee's reasonable prediction of its disbursements for the 
coming two years. In calculating its federal expenditures, the committee 
shall include only amounts contributed to or otherwise spent on behalf 
of specific federal candidates. Calculation of total federal and non-
federal disbursements shall also be limited to disbursements for 
specific candidates, and shall not include overhead or other generic 
costs.
    (ii) On each of its periodic reports, the committee shall adjust its 
allocation ratio to reconcile it with the ratio of actual federal and 
non-federal disbursements made, to date. If the non-federal account has 
paid more than its allocable share, the committee shall transfer funds 
from its federal to its non-federal account, as necessary, to reflect 
the adjusted allocation ratio. The committee shall make note of any such 
adjustments and transfers on its periodic reports, submitted pursuant to 
11 CFR 104.5.
    (2) Minimum federal percentage for administrative expenses and costs 
of generic voter drives. Regardless of the allocation ratio calculated 
under paragraph (c)(1) of this section, each Senate or House campaign 
committee of a national party shall allocate to its federal account at 
least 65% each of its administrative expenses and costs of generic voter 
drives each year. If the committee's own allocation calculation under 
paragraph (c)(1) of this section yields a federal share greater than 
65%, then the higher percentage shall be applied. If such calculation 
yields a federal share lower than 65%, then the committee shall report 
its calculated ratio according to 11 CFR 104.10(b), and shall apply the 
required minimum federal percentage.
    (3) Allocation of fundraising costs. Senate and House campaign 
committees shall allocate the costs of each combined federal and non-
federal fundraising program or event according to paragraph (f) of this 
section, with no minimum percentages required.
    (d) State and local party committees; method for allocating 
administrative expenses and costs of generic voter drives--(1) General 
rule. All state and local party committees except those covered by 
paragraph (d)(2) of this section shall

[[Page 110]]

allocate their administrative expenses and costs of generic voter 
drives, as described in paragraph (a)(2) of this section, according to 
the ballot composition method, described in paragraphs (d)(1) (i) and 
(ii) as follows:
    (i) Under this method, expenses shall be allocated based on the 
ratio of federal offices expected on the ballot to total federal and 
non-federal offices expected on the ballot in the next general election 
to be held in the committee's state or geographic area. This ratio shall 
be determined by the number of categories of federal offices on the 
ballot and the number of categories of non-federal offices on the 
ballot, as described in paragraph (d)(1)(ii) of this section.
    (ii) In calculating a ballot composition ratio, a state or local 
party committee shall count the federal offices of President, United 
States Senator, and United States Representative, if expected on the 
ballot in the next general election, as one federal office each. The 
committee shall count the non-federal offices of Governor, State 
Senator, and State Representative, if expected on the ballot in the next 
general election, as one non-federal office each. The committee shall 
count the total of all other partisan statewide executive candidates, if 
expected on the ballot in the next general election, as a maximum of two 
non-federal offices. State party committees shall also include in the 
ratio one additional non-federal office if any partisan local candidates 
are expected on the ballot in any regularly scheduled election during 
the two-year congressional election cycle. Local party committees shall 
also include in the ratio a maximum of two additional non-federal 
offices if any partisan local candidates are expected on the ballot in 
any regularly scheduled election during the two-year congressional 
election cycle. State and local party committees shall also include in 
the ratio one additional non-federal office.
    (2) Exception for states that do not hold federal and non-federal 
elections in the same year. State and local party committees in states 
that do not hold federal and non-federal elections in the same year 
shall allocate the costs of generic voter drives according to the ballot 
composition method described in paragraph (d)(1) of this section, based 
on a ratio calculated for that calendar year. These committees shall 
allocate their administrative expenses according to the ballot 
composition method described in paragraph (d)(1) of this section, based 
on a ratio calculated for the two-year Congressional election cycle.
    (e) State and local party committees; method for allocating costs of 
exempt activities. Each state or local party committee shall allocate 
its expenses for activities exempt from the definitions of contribution 
and expenditure under 11 CFR 100.7(b) (9), (15) or (17), and 100.8(b) 
(10), (16) or (18), when conducted in conjunction with non-federal 
election activities, as described in paragraph (a)(2) of this section, 
according to the proportion of time or space devoted in a communication. 
Under this method, the committee shall allocate expenses of a particular 
communication based on the ratio of the portion of the communication 
devoted to federal candidates or elections as compared to the entire 
communication. In the case of a publication, this ratio shall be 
determined by the space devoted to federal candidates or elections as 
compared to the total space devoted to all federal and non-federal 
candidates or elections. In the case of a phone bank, the ratio shall be 
determined by the number of questions or statements devoted to federal 
candidates or elections as compared to the total number of questions or 
statements devoted to all federal and non-federal candidates or 
elections.
    (f) All party committees; method for allocating direct costs of 
fundraising. (1) If federal and non-federal funds are collected by one 
committee through a joint activity, that committee shall allocate its 
direct costs of fundraising, as described in paragraph (a)(2) of this 
section, according to the funds received method. Under this method, the 
committee shall allocate its fundraising costs based on the ratio of 
funds received into its federal account to its total receipts from each 
fundraising program or event. This ratio shall be estimated prior to 
each such program or event based upon the committee's reasonable 
prediction of its federal and non-federal revenue from that program

[[Page 111]]

or event, and shall be noted in the committee's report for the period in 
which the first disbursement for such program or event occurred, 
submitted pursuant 11 CFR 104.5. Any disbursements for fundraising costs 
made prior to the actual program or event shall be allocated according 
to this estimated ratio.
    (2) No later than the date 60 days after each fundraising program or 
event from which both federal and non-federal funds are collected, the 
committee shall adjust the allocation ratio for that program or event to 
reflect the actual ratio of funds received. If the non-federal account 
has paid more than its allocable share, the committee shall transfer 
funds from its federal to its non-federal account, as necessary, to 
reflect the adjusted allocation ratio. If the federal account has paid 
more than its allocable share, the committee shall make any transfers of 
funds from its non-federal to its federal account to reflect the 
adjusted allocation ratio within the 60-day time period established by 
this paragraph. The committee shall make note of any such adjustments 
and transfers in its report for any period in which a transfer was made, 
and shall also report the date of the fundraising program or event which 
serves as the basis for the transfer. In the case of a telemarketing or 
direct mail campaign, the ``date'' for purposes of this paragraph is the 
last day of the telemarketing campaign, or the day on which the final 
direct mail solicitations are mailed.
    (g) Payment of allocable expenses by committees with separate 
federal and non-federal accounts--(1) Payment options. Committees that 
have established separate federal and non-federal accounts under 11 CFR 
102.5 (a)(1)(i) or (b)(1)(i) shall pay the expenses of joint federal and 
non-federal activities described in paragraph (a)(2) of this section 
according to either paragraph (g)(1) (i) or (ii), as follows:
    (i) Payment by federal account; transfers from non-federal account 
to federal account. The committee shall pay the entire amount of an 
allocable expense from its federal account and shall transfer funds from 
its non-federal account to its federal account solely to cover the non-
federal share of that allocable expense.
    (ii) Payment by separate allocation account; transfers from federal 
and non-federal accounts to allocation account. (A) The committee shall 
establish a separate allocation account into which funds from its 
federal and non-federal accounts shall be deposited solely for the 
purpose of paying the allocable expenses of joint federal and non-
federal activities. Once a committee has established a separate 
allocation account for this purpose, all allocable expenses shall be 
paid from that account for as long as the account is maintained.
    (B) The committee shall transfer funds from its federal and non-
federal accounts to its allocation account in amounts proportionate to 
the federal or non-federal share of each allocable expense.
    (C) No funds contained in the allocation account may be transferred 
to any other account maintained by the committee.
    (2) Timing of transfers between accounts. (i) Under either payment 
option described in paragraphs (g)(1) (i) or (ii) of this section, the 
committee shall transfer funds from its non-federal account to its 
federal account or from its federal and non-federal accounts to its 
separate allocation account following determination of the final cost of 
each joint federal and non-federal activity, or in advance of such 
determination if advance payment is required by the vendor and if such 
payment is based on a reasonable estimate of the activity's final cost 
as determined by the committee and the vendor(s) involved.
    (ii) Funds transferred from a committee's non-federal account to its 
federal account or its allocation account are subject to the following 
requirements:
    (A) For each such transfer, the committee must itemize in its 
reports the allocable activities for which the transferred funds are 
intended to pay, as required by 11 CFR 104.10(b)(3); and
    (B) Except as provided in paragraph (f)(2) of this section, such 
funds may not be transferred more than 10 days before or more than 60 
days after the payments for which they are designated are made.

[[Page 112]]

    (iii) Any portion of a transfer from a committee's non-federal 
account to its federal account or its allocation account that does not 
meet the requirements of paragraph (g)(2)(ii) of this section shall be 
presumed to be a loan or contribution from the non-federal account to a 
federal account, in violation of the Act.
    (3) Reporting transfers of funds and allocated disbursements. A 
political committee that transfers funds between accounts and pays 
allocable expenses according to this section shall report each such 
transfer and disbursement pursuant to 11 CFR 104.10(b).

[55 FR 26069, June 26, 1990, as amended at 57 FR 8993, Mar. 13, 1992; 57 
FR 11137, Apr. 1, 1992]



Sec. 106.6  Allocation of expenses between federal and non-federal activities by separate segregated funds and nonconnected committees.

    (a) General rule. Separate segregated funds and nonconnected 
committees that make disbursements in connection with federal and non-
federal elections shall make those disbursements either entirely from 
funds subject to the prohibitions and limitations of the Act, or from 
accounts established pursuant to 11 CFR 102.5. Separate segregated funds 
and nonconnected committees that have established separate federal and 
non-federal accounts under 11 CFR 102.5 (a)(1)(i) or (b)(1)(i), or that 
make federal and non-federal disbursements from a single account under 
11 CFR 102.5(b)(1)(ii), shall allocate their federal and non-federal 
expenses according to paragraphs (c) and (d) of this section. For 
purposes of this section, ``nonconnected committee'' includes any 
committee which conducts activities in connection with an election, but 
which is not a party committee, an authorized committee of any candidate 
for federal election, or a separate segregated fund.
    (b) Costs to be allocated--(1) Separate segregated funds. Separate 
segregated funds that make disbursements in connection with federal and 
non-federal elections shall allocate expenses for the following 
categories of activity:
    (i) Administrative expenses including rent, utilities, office 
supplies, and salaries not attributable to a clearly identified 
candidate, if such expenses are not paid by the separate segregated 
fund's connected organization;
    (ii) The direct costs of a fundraising program or event including 
disbursements for solicitation of funds and for planning and 
administration of actual fundraising events, where federal and non-
federal funds are collected through such program or event, if such 
expenses are not paid by the separate segregated fund's connected 
organization; and
    (iii) Generic voter drives including voter identification, voter 
registration, and get-out-the-vote drives, or any other activities that 
urge the general public to register, vote or support candidates of a 
particular party or associated with a particular issue, without 
mentioning a specific candidate.
    (2) Nonconnected committees. Nonconnected committees that make 
disbursements in connection with federal and non-federal elections shall 
allocate expenses for the following categories of activity:
    (i) Administrative expenses including rent, utilities, office 
supplies, and salaries, except for such expenses directly attributable 
to a clearly identified candidate;
    (ii) The direct costs of a fundraising program or event including 
disbursements for solicitation of funds and for planning and 
administration of actual fundraising events, where federal and non-
federal funds are collected through such program or event; and
    (iii) Generic voter drives including voter identification, voter 
registration, and get-out-the-vote drives, or any other activities that 
urge the general public to register, vote or support candidates of a 
particular party or associated with a particular issue, without 
mentioning a specific candidate.
    (c) Method for allocating administrative expenses and costs of 
generic voter drives. Nonconnected committees and separate segregated 
funds shall allocate their administrative expenses and costs of generic 
voter drives, as described in paragraph (b) of this section, according 
to the funds expended method, described in paragraphs (c) (1) and (2) as 
follows:
    (1) Under this method, expenses shall be allocated based on the 
ratio of federal expenditures to total federal and

[[Page 113]]

non-federal disbursements made by the committee during the two-year 
federal election cycle. This ratio shall be estimated and reported at 
the beginning of each federal election cycle, based upon the committee's 
federal and non-federal disbursements in a prior comparable federal 
election cycle or upon the committee's reasonable prediction of its 
disbursements for the coming two years. In calculating its federal 
expenditures, the committee shall include only amounts contributed to or 
otherwise spent on behalf of specific federal candidates. Calculation of 
total federal and non-federal disbursements shall also be limited to 
disbursements for specific candidates, and shall not include overhead or 
other generic costs.
    (2) On each of its periodic reports, the committee shall adjust its 
allocation ratio to reconcile it with the ratio of actual federal and 
non-federal disbursements made, to date. If the non-federal account has 
paid more than its allocable share, the committee shall transfer funds 
from its federal to its non-federal account, as necessary, to reflect 
the adjusted allocation ratio. The committee shall make note of any such 
adjustments and transfers on its periodic reports, submitted pursuant to 
11 CFR 104.5.
    (d) Method for allocating direct costs of fundraising. (1) If 
federal and non-federal funds are collected by one committee through a 
joint activity, that committee shall allocate its direct costs of 
fundraising, as described in paragraph (a)(2) of this section, according 
to the funds received method. Under this method, the committee shall 
allocate its fundraising costs based on the ratio of funds received into 
its federal account to its total receipts from each fundraising program 
or event. This ratio shall be estimated prior to each such program or 
event based upon the committee's reasonable prediction of its federal 
and non-federal revenue from that program or event, and shall be noted 
in the committee's report for the period in which the first disbursement 
for such program or event occurred, submitted pursuant to 11 CFR 104.5. 
Any disbursements for fundraising costs made prior to the actual program 
or event shall be allocated according to this estimated ratio.
    (2) No later than the date 60 days after each fundraising program or 
event from which both federal and non-federal funds are collected, the 
committee shall adjust the allocation ratio for that program or event to 
reflect the actual ratio of funds received. If the non-federal account 
has paid more than its allocable share, the committee shall transfer 
funds from its federal to its non-federal account, as necessary, to 
reflect the adjusted allocation ratio. If the federal account has paid 
more than its allocable share, the committee shall make any transfers of 
funds from its non-federal to its federal account to reflect the 
adjusted allocation ratio within the 60-day time period established by 
this paragraph. The committee shall make note of any such adjustments 
and transfers in its report for any period in which a transfer was made, 
and shall also report the date of the fundraising program or event which 
serves as the basis for the transfer. In the case of a telemarketing or 
direct mail campaign, the ``date'' for purposes of this paragraph is the 
last day of the telemarketing campaign, or the day on which the final 
direct mail solicitations are mailed.
    (e) Payment of allocable expenses by committees with separate 
federal and non-federal accounts--(1) Payment options. Nonconnected 
committees and separate segregated funds that have established separate 
federal and non-federal accounts under 11 CFR 102.5 (a)(1)(i) or 
(b)(1)(i) shall pay the expenses of joint federal and non-federal 
activities described in paragraph (b) of this section according to 
either paragraph (e)(1)(i) or (ii), as follows:
    (i) Payment by federal account; transfers from non-federal account 
to federal account. The committee shall pay the entire amount of an 
allocable expense from its federal account and shall transfer funds from 
its non-federal account to its federal account solely to cover the non-
federal share of that allocable expense.
    (ii) Payment by separate allocation account; transfers from federal 
and non-federal accounts to allocation account. (A) The committee shall 
establish a separate allocation account into which

[[Page 114]]

funds from its federal and non-federal accounts shall be deposited 
solely for the purpose of paying the allocable expenses of joint federal 
and non-federal activities. Once a committee has established an 
allocation account for this purpose, all allocable expenses shall be 
paid from that account for as long as the account is maintained.
    (B) The committee shall transfer funds from its federal and non-
federal accounts to its allocation account in amounts proportionate to 
the federal or non-federal share of each allocable expense.
    (C) No funds contained in the allocation account may be transferred 
to any other account maintained by the committee.
    (2) Timing of transfers between accounts. (i) Under either payment 
option described in paragraphs (e)(1) (i) or (ii) of this section, the 
committee shall transfer funds from its non-federal account or from its 
federal and non-federal accounts to its separate allocation account 
following determination of the final cost of each joint federal and non-
federal activity, or in advance of such determination if advance payment 
is required by the vendor and if such payment is based on a reasonable 
estimate of the activity's final cost as determined by the committee and 
the vendor(s) involved.
    (ii) Funds transferred from a committee's non-federal account to its 
federal account or its allocation account are subject to the following 
requirements:
    (A) For each such transfer, the committee must itemize in its 
reports the allocable activities for which the tranferred funds are 
intended to pay, as required by 11 CFR 104.10(b)(3); and
    (B) Except as provided in paragraph (d)(2) of this section, such 
funds may not be transferred more than 10 days before or more than 60 
days after the payments for which they are designated are made.
    (iii) Any portion of a transfer from a committee's non-federal 
account to its federal account or its allocation account that does not 
meet the requirements of paragraph (e)(2)(ii) of this section shall be 
presumed to be a loan or contribution from the non-federal account to a 
federal account, in violation of the Act.
    (3) Reporting transfers of funds and allocated disbursements. A 
political committee that transfers funds between accounts and pays 
allocable expenses according to this section shall report each such 
transfer and disbursement pursuant to 11 CFR 104.10(b).

[55 FR 26071, June 26, 1990, as amended at 57 FR 8993, Mar. 13, 1992]



PART 107--PRESIDENTIAL NOMINATING CONVENTION, REGISTRATION AND REPORTS--Table of Contents




Sec.
107.1  Registration and reports by political parties.
107.2  Registration and reports by host committees, and committees, 
          organizations or other groups representing a state, city or 
          other local government agency.

    Authority: 2 U.S.C. 437, 438(a)(8).

    Source: 59 FR 33615, June 29, 1994, unless otherwise noted.



Sec. 107.1  Registration and reports by political parties.

    Each convention committee established under 11 CFR 9008.3(a)(2) by a 
national committee of a political party and each committee or other 
organization, including a national committee, which represents a 
political party in making arrangements for that party's convention held 
to nominate a presidential or vice presidential candidate shall register 
and report in accordance with 11 CFR 9008.3(b).



Sec. 107.2  Registration and reports by host committees, and committees, organizations or other groups representing a state, city or other local government 
          agency.

    Each host committee, and each committee or other organization or 
group of persons which represents a State, municipality, local 
government agency or other political subdivision in dealing with 
officials of a national political party with respect to matters 
involving a presidential nominating convention, shall register and 
report in accordance with 11 CFR 9008.51.

[[Page 115]]



PART 108--FILING COPIES OF REPORTS AND STATEMENTS WITH STATE OFFICERS (2 U.S.C. 439)--Table of Contents




Sec.
108.1  Filing requirements (2 U.S.C. 439(a)(1)).
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)).
108.3  Filing copies of reports and statements in connection with the 
          campaign of any congressional candidate (2 U.S.C. 439(a)(2)).
108.4  Filing copies of reports by committees other than principal 
          campaign committees (2 U.S.C. 439(a)(2)).
108.5  Time and manner of filing copies (2 U.S.C. 434(a)(2)).
108.6  Duties of State officers (2 U.S.C. 439(b)).
108.7  Effect on State law (2 U.S.C. 453).
108.8  Exemption for the District of Columbia.

    Authority: 2 U.S.C. 434(a)(2) 438(a)(8), 439, 453.

    Source: 45 FR 15117, Mar. 7, 1980, unless otherwise noted.



Sec. 108.1  Filing requirements (2 U.S.C. 439(a)(1)).

    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 charge by 
State law with maintaining state election campaign reports. In States 
where reports are to be filed with a designated officer other than the 
Secretary of State, the chief executive officer of that State shall 
notify the Commission of such designation.



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)).

    A copy of each report and statement required to be filed by a 
Presidential or Vice Presidential candidate's principal campaign 
committee under the Act, including 11 CFR part 104, or by any other 
person making independent expenditures in connection with a candidate 
seeking nomination for election to the office of President or Vice-
President under 11 CFR 104.4 or part 109, 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. The report and statement shall 
contain all transactions pertaining to that State during the reporting 
period. Any committee, other than a Presidential or Vice Presidential 
candidate's principal campaign committee and the candidate's authorized 
committee(s) shall also file a copy of each report and statement with 
the appropriate State officer of the State in which such committee has 
its headquarters pursuant to 11 CFR 108.4.



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 copy of each report and statement required to be filed by a 
committee under 11 CFR part 104, or by any other person under 11 CFR 
part 109 shall be filed with the appropriate State officer of that State 
in which an expenditure is made in connection with the campaign of a 
candidate for nomination for election or election, to the office of 
Senator, Representative in, Delegate or Resident Commissioner to the 
Congress except that political committees other than authorized 
committees 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.



Sec. 108.4  Filing copies of reports by committees other than principal campaign committees (2 U.S.C. 439(a)(2)).

    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 such report(s) and 
statement(s) with the State officer of the State in which both the 
recipient and contributing committees have their headquarters.

[45 FR 15117, Mar. 7, 1980, as amended at 45 FR 21209, Apr. 1, 1980]

[[Page 116]]



Sec. 108.5  Time and manner of filing copies (2 U.S.C. 434(a)(2)).

    A copy of any report or statement required to be filed with a State 
officer under 11 CFR part 108 shall be filed at the same time as the 
original report is filed. Each copy of such report or statement shall be 
a complete, true, and legible copy of the original report or statement 
filed.



Sec. 108.6  Duties of State officers (2 U.S.C. 439(b)).

    The Secretary of State, or the equivalent State officer shall carry 
out the duties set forth in 11 CFR 108.5(a) through (d):
    (a) Receive and maintain in an orderly manner all reports and 
statements required to be filed;
    (b) Preserve such reports and statements (either in original form or 
in facsimile copy by microfilm or otherwise) filed under the Act for a 
period of 2 years from the date of receipt;
    (c) Make the reports and statements filed available as soon as 
practicable (but within 48 hours of receipt) for public inspection and 
copying during office hours and permit copying of any such reports or 
statements by hand or by duplicating machine, at the request of any 
person except that such copying shall be at the expense of the person 
making the request and at a reasonable fee;
    (d) Compile and maintain a current list of all reports and 
statements or parts of such reports and statements pertaining to each 
candidate.



Sec. 108.7  Effect on State law (2 U.S.C. 453).

    (a) The provisions of the Federal Election Campaign Act of 1971, as 
amended, and rules and regulations issued thereunder, supersede and 
preempt any provision of State law with respect to election to Federal 
office.
    (b) Federal law supersedes State law concerning the--
    (1) Organization and registration of political committees supporting 
Federal candidates;
    (2) Disclosure of receipts and expenditures by Federal candidates 
and political committees; and
    (3) Limitation on contributions and expenditures regarding Federal 
candidates and political committees.
    (c) The Act does not supersede State laws which provide for the--
    (1) Manner of qualifying as a candidate or political party 
organization;
    (2) Dates and places of elections;
    (3) Voter registration;
    (4) Prohibition of false registration, voting fraud, theft of 
ballots, and similar offenses; or
    (5) Candidate's personal financial disclosure.



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 shall be deemed to be filed if the 
original has been filed with the Secretary or the Commission, as 
appropriate.

[45 FR 15117, Mar. 7, 1980, as amended at 61 FR 6095, Feb. 16, 1996]



PART 109--INDEPENDENT EXPENDITURES (2 U.S.C. 431(17), 434(c))--Table of Contents




Sec.
109.1  Definitions (2 U.S.C. 431(17)).
109.2  Reporting of independent expenditures by persons other than a 
          political committee (2 U.S.C. 434(c)).
109.3  Non-authorization notice (2 U.S.C. 441d).

    Authority: 2 U.S.C. 431(17), 434(c), 438(a)(8), 441d.

    Source: 45 FR 15118, Mar. 7, 1980, unless otherwise noted.



Sec. 109.1  Definitions (2 U.S.C. 431(17)).

    (a) Independent expenditure means an expenditure by a person for a 
communication expressly advocating the election or defeat of a clearly 
identified candidate which is not made with the cooperation or with the 
prior consent of, or in consultation with, or at the request or 
suggestion of, a candidate or any agent or authorized committee of such 
candidate.
    (b) For purposes of this definition--
    (1) Person means an individual, partnership, committee, association, 
qualified nonprofit corporation under 11 CFR 114.10(c), or any 
organization or group of persons, including a separate segregated fund 
established by a labor

[[Page 117]]

organization, corporation, or national bank (see part 114) but does not 
mean a labor organization, corporation not qualified under 11 CFR 
114.10(c), or national bank.
    (2) Expressly advocating shall have the same meaning as set forth at 
11 CFR 100.22.
    (3) Clearly identified shall have the same meaning as set forth at 
11 CFR 100.17.
    (4) Made with the cooperation or with the prior consent of, or in 
consultation with, or at the request or suggestion of, a candidate or 
any agent or authorized committee of the candidate--
    (i) Means any arrangement, coordination, or direction by the 
candidate or his or her agent prior to the publication, distribution, 
display, or broadcast of the communication. An expenditure will be 
presumed to be so made when it is--
    (A) Based on information about the candidate's plans, projects, or 
needs provided to the expending person by the candidate, or by the 
candidate's agents, with a view toward having an expenditure made; or
    (B) Made by or through any person who is, or has been, authorized to 
raise or expend funds, who is, or has been, an officer of an authorized 
committee, or who is, or has been, receiving any form of compensation or 
reimbursement from the candidate, the candidate's committee or agent;
    (ii) But does not include providing to the expending person upon 
request Commission guidelines on independent expenditures.
    (5) Agent means any person who has actual oral or written authority, 
either express or implied, to make or to authorize the making of 
expenditures on behalf of a candidate, or means any person who has been 
placed in a position within the campaign organization where it would 
reasonably appear that in the ordinary course of campaign-related 
activities he or she may authorize expenditures.
    (c) An expenditure not qualifying under this section as an 
independent expenditure shall be a contribution in-kind to the candidate 
and an expenditure by the candidate, unless otherwise exempted.
    (d)(1) The financing of the dissemination, distribution, or 
republication, in whole or in part, of any broadcast or any written, 
graphic, or other form of campaign materials prepared by the candidate, 
his campaign committees, or their authorized agents shall be considered 
a contribution for the purpose of contribution limitations and reporting 
responsibilities by the person making the expenditure but shall not be 
considered an expenditure by the candidate or his authorized committees 
unless made with the cooperation or with the prior consent of, or in 
consultation with, or at the request or suggestion of, a candidate or 
any authorized agent or committee thereof.
    (2) This paragraph does not affect the right of a State or 
subordinate party committee to engage in such dissemination, 
distribution, or republication as agents designated by the national 
committee pursuant to Sec. 110.7(a)(4).
    (e) No expenditure by an authorized committee of a candidate on 
behalf of that candidate shall qualify as an independent expenditure.

[45 FR 15118, Mar. 7, 1980, as amended at 60 FR 35305, July 6, 1995; 60 
FR 64273, Dec. 14, 1995]



Sec. 109.2  Reporting of independent expenditures by persons other than a political committee (2 U.S.C. 434(c)).

    (a) Every person other than a political committee, who makes 
independent expenditures aggregating in excess of $250 during a calendar 
year shall file a signed statement or report on FEC Form 5 with the 
Commission or Secretary of the Senate in accordance with 11 CFR 
104.4(c).
    (1) If a signed statement is submitted, the statement shall include:
    (i) The reporting person's name mailing address, occupation and the 
name of his or her employer, if any;
    (ii) The identification (name and mailing address) of the person to 
whom the expenditure was made;
    (iii) The amount, date and purpose of each expenditure;
    (iv) A statement which indicates whether such expenditure was in 
support of, or in opposition to a candidate, together with the 
candidate's name and office sought;

[[Page 118]]

    (v) A notarized certification under penalty of perjury as to whether 
such expenditure was made in cooperation, consultation or concert with, 
or at the request or suggestion of any candidate or any authorized 
committee or agent thereof; and
    (vi) The identification of each person who made a contribution in 
excess of $200 to the person filing such report, which contribution was 
made for the purpose of furthering the reported independent expenditure.
    (2) Reports or statements filed under this section shall be filed at 
the end of the reporting period (quarterly pre-election post-election 
semi-annual annual) (See 11 CFR 104.5)) during which any independent 
expenditure which aggregrates in excess of $250 is made and in any 
reporting period thereafter in which additional independent expenditures 
are made.
    (b) Independent expenditures aggregating $1,000 or more made by any 
person after the twentieth day, but more than 24 hours before 12:01 a.m 
of the day of an election shall be reported within 24 hours after such 
independent expenditure is made. Such report or statement shall contain 
the information required by 11 CFR 109.2(a) indicating whether the 
independent expenditure is made in support of, or in opposition to, a 
particular candidate and shall be filed with the appropriate officers in 
accordance with 11 CFR 104.4(c).

[45 FR 15118, Mar. 7, 1980, as amended at 61 FR 3550, Feb. 1, 1996]



Sec. 109.3  Non-authorization notice (2 U.S.C. 441d).

    Whenever any person makes an independent expenditure for the purpose 
of financing communications expressly advocating the election or defeat 
of a clearly identified candidate, such person shall comply with the 
requirements of 11 CFR 110.11.



PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS--Table of Contents




Sec.
110.1  Contributions by persons other than multicandidate political 
          committees (2 U.S.C. 441a(a)(1)).
110.2  Contributions by multicandidate political committees (2 U.S.C. 
          441a(a)(2)).
110.3  Contribution limitations for affiliated committees and political 
          party committees; Transfers (2 U.S.C. 441a(a)(5), 441a(a)(4)).
110.4  Prohibited contributions (2 U.S.C. 441e, 441f, 441g, 432(c)(2)).
110.5  Annual contribution limitation for individuals (2 U.S.C. 
          441a(a)(3)).
110.6  Earmarked contributions (2 U.S.C. 441a(a)(8)).
110.7  Party committee expenditure limitations (2 U.S.C. 441a(d)).
110.8  Presidential candidate expenditure limitations.
110.9  Miscellaneous provisions.
110.10  Expenditures by candidates.
110.11  Communications; advertising (2 U.S.C. 441d).
110.12  Candidate appearances on public educational institution 
          premises.
110.13  Candidate debates.
110.14  Contributions to and expenditures by delegates and delegate 
          committees.

    Authority: 2 U.S.C. 431(8), 431(9), 432(c)(2), 437d(a)(8), 
438(a)(8), 441a, 441b, 441d, 441e, 441f, 441g and 441h.



Sec. 110.1  Contributions by persons other than multicandidate political committees (2 U.S.C. 441a(a)(1)).

    (a) Scope. This section applies to all contributions made by any 
person as defined in 11 CFR 100.10, except multicandidate political 
committees as defined in 11 CFR 100.5(e)(3) or entities and individuals 
prohibited from making contributions under 11 CFR 110.4 and 11 CFR parts 
114 and 115.
    (b) Contributions to candidates; designations; and redesignations. 
(1) No person shall make contributions to any candidate, his or her 
authorized political committees or agents with respect to any election 
for Federal office which, in the aggregate, exceed $1,000.
    (2) For purposes of this section, with respect to any election 
means--
    (i) In the case of a contribution designated in writing by the 
contributor for a particular election, the election so designated. 
Contributors to candidates are encouraged to designate their 
contributions in writing for particular elections. See 11 CFR 
110.1(b)(4).
    (ii) In the case of a contribution not designated in writing by the 
contributor for a particular election, the next election for that 
Federal office after the contribution is made.

[[Page 119]]

    (3)(i) A contribution designated in writing for a particular 
election, but made after that election, shall be made only to the extent 
that the contribution does not exceed net debts outstanding from such 
election. To the extent that such contribution exceeds net debts 
outstanding, the candidate or the candidate's authorized political 
committee shall return or deposit the contribution within ten days from 
the date of the treasurer's receipt of the contribution as provided by 
11 CFR 103.3(a), and if deposited, then within sixty days from the date 
of the treasurer's receipt the treasurer shall take the following 
action, as appropriate:
    (A) Refund the contribution using a committee check or draft; or
    (B) Obtain a written redesignation by the contributor for another 
election in accordance with 11 CFR 110.1(b)(5); or
    (C) Obtain a written reattribution to another contributor in 
accordance with 11 CFR 110.1(k)(3).
    If the candidate is not a candidate in the general election, all 
contributions made for the general election shall be either returned or 
refunded to the contributors or redesignated in accordance with 11 CFR 
110.1(b)(5), or reattributed in accordance with 11 CFR 110.1(k)(3), as 
appropriate.
    (ii) In order to determine whether there are net debts outstanding 
from a particular election, the treasurer of the candidate's authorized 
political committee shall calculate net debts outstanding as of the date 
of the election. For purposes of this section, net debts outstanding 
means the total amount of unpaid debts and obligations incurred with 
respect to an election, including the estimated cost of raising funds to 
liquidate debts incurred with respect to the election and, if the 
candidate's authorized committee terminates or if the candidate will not 
be a candidate for the next election, estimated necessary costs 
associated with termination of political activity, such as the costs of 
complying with the post-election requirements of the Act and other 
necessary administrative costs associated with winding down the 
campaign, including office space rental, staff salaries and office 
supplies, less the sum of:
    (A) The total cash on hand available to pay those debts and 
obligations, including: currency; balances on deposit in banks, savings 
and loan institutions, and other depository institutions; traveler's 
checks; certificates of deposit; treasury bills; and any other committee 
investments valued at fair market value; and
    (B) The total amounts owed to the candidate or political committee 
in the form of credits, refunds of deposits, returns, or receivables, or 
a commercially reasonable amount based on the collectibility of those 
credits, refunds, returns, or receivables.
    (iii) The amount of the net debts outstanding shall be adjusted as 
additional funds are received and expenditures are made. The candidate 
and his or her authorized political committee(s) may accept 
contributions made after the date of the election if such contributions 
are designated in writing by the contributor for that election and if 
such contributions do not exceed the adjusted amount of net debts 
outstanding on the date the contribution is received.
    (iv) This paragraph shall not be construed to prevent a candidate 
who is a candidate in the general election or his or her authorized 
political committee(s) from paying primary election debts and 
obligations with funds which represent contributions made with respect 
to the general election.
    (4) For purposes of this section, a contribution shall be considered 
to be designated in writing for a particular election if--
    (i) The contribution is made by check, money order, or other 
negotiable instrument which clearly indicates the particular election 
with respect to which the contribution is made;
    (ii) The contribution is accompanied by a writing, signed by the 
contributor, which clearly indicates the particular election with 
respect to which the contribution is made; or
    (iii) The contribution is redesignated in accordance with 11 CFR 
110.1(b)(5).
    (5)(i) The treasurer of an authorized political committee may 
request a written redesignation of a contribution by the contributor for 
a different election if--
    (A) The contribution was designated in writing for a particular 
election, and

[[Page 120]]

the contribution, either on its face or when aggregated with other 
contributions from the same contributor for the same election, exceeds 
the limitation on contributions set forth in 11 CFR 110.1(b)(1);
    (B) The contribution was designated in writing for a particular 
election and the contribution was made after that election and the 
contribution cannot be accepted under the net debts outstanding 
provisions of 11 CFR 110.1(b)(3);
    (C) The contribution was not designated in writing for a particular 
election, and the contribution exceeds the limitation on contributions 
set forth in 11 CFR 110.1(b)(1); or
    (D) The contribution was not designated in writing for a particular 
election, and the contribution was received after the date of an 
election for which there are net debts outstanding on the date the 
contribution is received.
    (ii) A contribution shall be considered to be redesignated for 
another election if--
    (A) The treasurer of the recipient authorized political committee 
requests that the contributor provide a written redesignation of the 
contribution and informs the contributor that the contributor may 
request the refund of the contribution as an alternative to providing a 
written redesignation; and
    (B) Within sixty days from the date of the treasurer's receipt of 
the contribution, the contributor provides the treasurer with a written 
redesignation of the contribution for another election, which is signed 
by the contributor.
    (iii) A contribution redesignated for another election shall not 
exceed the limitations on contributions made with respect to that 
election. A contribution redesignated for a previous election shall be 
subject to the requirements of 11 CFR 110.1(b)(3) regarding net debts 
outstanding.
    (6) For the purposes of this section, a contribution shall be 
considered to be made when the contributor relinquishes control over the 
contribution. A contributor shall be considered to relinquish control 
over the contribution when it is delivered by the contributor to the 
candidate, to the political committee, or to an agent of the political 
committee. A contribution that is mailed to the candidate, or to the 
political committee or to an agent of the political committee, shall be 
considered to be made on the date of the postmark. See 11 CFR 
110.1(1)(4). An in-kind contribution shall be considered to be made on 
the date that the goods or services are provided by the contributor.
    (c) Contributions to political party committees. (1) No person shall 
make contributions to the political committees established and 
maintained by a national political party in any calendar year, which, in 
the aggregate, exceed $20,000.
    (2) For purposes of this section, political committees established 
and maintained by a national political party means--
    (i) The national committee;
    (ii) The House campaign committee; and
    (iii) The Senate campaign committee.
    (3) Each recipient committee referred to in 11 CFR 110.1(c)(2) may 
receive up to the $20,000 limitation from a contributor, but the limits 
of 11 CFR 110.5 shall also apply to contributions made by an individual.
    (4) The recipient committee shall not be an authorized political 
committee of any candidate, except as provided in 11 CFR 9002.1(c).
    (d) Contributions to other political committees. (1) No person shall 
make contributions to any other political committee in any calendar year 
which, in the aggregate, exceed $5,000.
    (2) The limitation on contributions of this paragraph also applies 
to contributions made to political committees making independent 
expenditures under 11 CFR part 109.
    (e) Contributions by partnerships. A contribution by a partnership 
shall be attributed to the partnership and to each partner--
    (1) In direct proportion to his or her share of the partnership 
profits, according to instructions which shall be provided by the 
partnership to the political committee or candidate; or
    (2) By agreement of the partners, as long as--

[[Page 121]]

    (i) Only the profits of the partners to whom the contribution is 
attributed are reduced (or losses increased), and
    (ii) These partners' profits are reduced (or losses increased) in 
proportion to the contribution attributed to each of them.

A contribution by a partnership shall not exceed the limitations on 
contributions in 11 CFR 110.1 (b), (c), and (d). No portion of such 
contribution may be made from the profits of a corporation that is a 
partner.
    (f) Contributions to candidates for more than one Federal office. If 
an individual is a candidate for more than one Federal office, a person 
may make contributions which do not exceed $1,000 to the candidate, or 
his or her authorized political committees for each election for each 
office, as long as--
    (1) Each contribution is designated in writing by the contributor 
for a particular office;
    (2) The candidate maintains separate campaign organizations, 
including separate principal campaign committees and separate accounts; 
and
    (3) No principal campaign committee or other authorized political 
committee of that candidate for one election for one Federal office 
transfers funds to, loans funds to, makes contributions to, or makes 
expenditures on behalf of another principal campaign committee or other 
authorized political committee of that candidate for another election 
for another Federal office, except as provided in 11 CFR 110.3(c)(4).
    (g) Contributions by limited liability companies (``LLC''). (1) 
Definition. A limited liability company is a business entity that is 
recognized as a limited liability company under the laws of the State in 
which it is established.
    (2) A contribution by an LLC that elects to be treated as a 
partnership by the Internal Revenue Service pursuant to 26 CFR 301.7701-
3, or does not elect treatment as either a partnership or a corporation 
pursuant to that section, shall be considered a contribution from a 
partnership pursuant to 11 CFR 110.1(e).
    (3) An LLC that elects to be treated as a corporation by the 
Internal Revenue Service, pursuant to 26 CFR 301.7701-3, or an LLC with 
publicly-traded shares, shall be considered a corporation pursuant to 11 
CFR Part 114.
    (4) A contribution by an LLC with a single natural person member 
that does not elect to be treated as a corporation by the Internal 
Revenue Service pursuant to 26 CFR 301.7701-3 shall be attributed only 
to that single member.
    (5) An LLC that makes a contribution pursuant to paragraph (g)(2) or 
(g)(4) of this section shall, at the time it makes the contribution, 
provide information to the recipient committee as to how the 
contribution is to be attributed, and affirm to the recipient committee 
that it is eligible to make the contribution.
    (h) Contributions to committees supporting the same candidate. A 
person may contribute to a candidate or his or her authorized committee 
with respect to a particular election and also contribute to a political 
committee which has supported, or anticipates supporting, the same 
candidate in the same election, as long as--
    (1) The political committee is not the candidate's principal 
campaign committee or other authorized political committee or a single 
candidate committee;
    (2) The contributor does not give with the knowledge that a 
substantial portion will be contributed to, or expended on behalf of, 
that candidate for the same election; and
    (3) The contributor does not retain control over the funds.
    (i) Contributions by spouses and minors. (1) The limitations on 
contributions of this section shall apply separately to contributions 
made by each spouse even if only one spouse has income.
    (2) Minor children (children under 18 years of age) may make 
contributions to any candidate or political committee which in the 
aggregate do not exceed the limitations on contributions of this 
section, if--
    (i) The decision to contribute is made knowingly and voluntarily by 
the minor child;
    (ii) The funds, goods, or services contributed are owned or 
controlled exclusively by the minor child, such as income earned by the 
child, the proceeds of a trust for which the child is the

[[Page 122]]

beneficiary, or a savings account opened and maintained exclusively in 
the child's name; and
    (iii) The contribution is not made from the proceeds of a gift, the 
purpose of which was to provide funds to be contributed, or is not in 
any other way controlled by another individual.
    (j) Application of limitations to elections. (1) The limitations on 
contributions of this section shall apply separately with respect to 
each election as defined in 11 CFR 100.2, except that all elections held 
in a calendar year for the office of President of the United States 
(except a general election for that office) shall be considered to be 
one election.
    (2) An election in which a candidate is unopposed is a separate 
election for the purposes of the limitations on contributions of this 
section.
    (3) A primary or general election which is not held because a 
candidate is unopposed or received a majority of votes in a previous 
election is a separate election for the purposes of the limitations on 
contributions of this section. The date on which the election would have 
been held shall be considered to be the date of the election.
    (4) A primary election which is not held because a candidate was 
nominated by a caucus or convention with authority to nominate is not a 
separate election for the purposes of the limitations on contributions 
of this section.
    (k) Joint contributions and reattributions. (1) Any contribution 
made by more than one person, except for a contribution made by a 
partnership, shall include the signature of each contributor on the 
check, money order, or other negotiable instrument or in a separate 
writing.
    (2) If a contribution made by more than one person does not indicate 
the amount to be attributed to each contributor, the contribution shall 
be attributed equally to each contributor.
    (3)(i) If a contribution to a candidate or political committee, 
either on its face or when aggregated with other contributions from the 
same contributor, exceeds the limitations on contributions set forth in 
11 CFR 110.1 (b), (c) or (d), as appropriate, the treasurer of the 
recipient political committee may ask the contributor whether the 
contribution was intended to be a joint contribution by more than one 
person.
    (ii) A contribution shall be considered to be reattributed to 
another contributor if--
    (A) The treasurer of the recipient political committee asks the 
contributor whether the contribution is intended to be a joint 
contribution by more than one person, and informs the contributor that 
he or she may request the return of the excessive portion of the 
contribution if it is not intended to be a joint contribution; and
    (B) Within sixty days from the date of the treasurer's receipt of 
the contribution, the contributors provide the treasurer with a written 
reattribution of the contribution, which is signed by each contributor, 
and which indicates the amount to be attributed to each contributor if 
equal attribution is not intended.
    (l) Supporting evidence. (1) If a political committee receives a 
contribution designated in writing for a particular election, the 
treasurer shall retain a copy of the written designation, as required by 
11 CFR 110.1(b)(4) or 110.2(b)(4), as appropriate. If the written 
designation is made on a check or other written instrument, the 
treasurer shall retain a full-size photocopy of the check or written 
instrument.
    (2) If a political committee receives a written redesignation of a 
contribution for a different election, the treasurer shall retain the 
written redesignation provided by the contributor, as required by 11 CFR 
110.1(b)(5) or 110.2(b)(5), as appropriate.
    (3) If a political committee receives a written reattribution of a 
contribution to a different contributor, the treasurer shall retain the 
written reattribution signed by each contributor, as required by 11 CFR 
110.1(k).
    (4) If a political committee chooses to rely on a postmark as 
evidence of the date on which a contribution was made, the treasurer 
shall retain the envelope or a copy of the envelope containing the 
postmark and other identifying information.
    (5) If a political committee does not retain the written records 
concerning designation required under 11 CFR 110.1(1)(2), the 
contribution shall not be

[[Page 123]]

considered to be designated in writing for a particular election, and 
the provisions of 11 CFR 110.1(b)(2)(ii) or 110.2(b)(2)(ii) shall apply. 
If a political committee does not retain the written records concerning 
redesignation or reattribution required under 11 CFR 110.1(1) (2), (3) 
or (6), the redesignation or reattribution shall not be effective, and 
the original designation or attribution shall control.
    (6) For each written redesignation or written reattribution of a 
contribution described in paragraph (b)(5) or paragraph (k)(3) of this 
section, the political committee shall retain documentation 
demonstrating when the written redesignation or written reattribution 
was received. Such documentation shall consist of:
    (i) A copy of the envelope bearing the postmark and the 
contributor's name, or return address or other identifying code; or
    (ii) A copy of the written redesignation or written reattribution 
with a date stamp indicating the date of the committee's receipt; or
    (iii) A copy of the written redesignation or written reattribution 
dated by the contributor.
    (m) Contributions to delegates and delegate committees. (1) 
Contributions to delegates for the purpose of furthering their selection 
under 11 CFR 110.14 are not subject to the limitations of this section.
    (2) Contributions to delegate committees under 11 CFR 110.14 are 
subject to the limitations of this section.

[52 FR 769, Jan. 9, 1987, as amended at 52 FR 35534, Sept. 22, 1987; 54 
FR 34110, Aug. 17, 1989; 54 FR 48580, Nov. 24, 1989; 55 FR 2281, Jan. 
23, 1990; 56 FR 35911, July 29, 1991; 60 FR 31381, June 15, 1995; 64 FR 
37400, July 12, 1999]



Sec. 110.2  Contributions by multicandidate political committees (2 U.S.C. 441a(a)(2)).

    (a)(1) Scope. This section applies to all contributions made by any 
multicandidate political committee as defined in 11 CFR 100.5(e)(3).
    (2) Notice to recipients. Each multicandidate committee that makes a 
contribution under this section shall notify the recipient in writing of 
its status as a multicandidate committee.
    (b) Contributions to candidates; designations; and redesignations. 
(1) No multicandidate political committee shall make contributions to 
any candidate, his or her authorized political committees or agents with 
respect to any election for Federal office which, in the aggregate, 
exceed $5,000.
    (2) For purposes of this section, with respect to any election 
means--
    (i) In the case of a contribution designated in writing by the 
contributor for a particular election, the election so designated. 
Multicandidate political committees making contributions to candidates 
are encouraged to designate their contributions in writing for 
particular elections. See 11 CFR 110.2(b)(4).
    (ii) In the case of a contribution not designated in writing by the 
contributor for a particular election, the next election for that 
Federal office after the contribution is made.
    (3)(i) A contribution designated in writing for a particular 
election, but made after that election, shall be made only to the extent 
that the contribution does not exceed net debts outstanding from such 
election. To the extent that such contribution exceeds net debts 
outstanding, the candidate or the candidate's authorized political 
committee shall return or deposit the contribution within ten days from 
the date of the treasurer's receipt of the contribution as provided by 
11 CFR 103.3(a), and if deposited, then within sixty days from the date 
of the treasurer's receipt the treasurer shall take the following 
action, as appropriate:
    (A) Refund the contribution using a committee check or draft; or
    (B) Obtain a written redesignation by the contributor for another 
election in accordance with 11 CFR 110.2(b)(5).
    If the candidate is not a candidate in the general election, all 
contributions made for the general election shall be either returned or 
refunded to the contributors or redesignated in accordance with 11 CFR 
110.2(b)(5).
    (ii) The treasurer of the candidate's authorized political committee 
shall calculate net debts outstanding in accordance with 11 CFR 
110.1(b)(3)(ii). The amount of the net debts outstanding shall be 
adjusted as additional funds are received and expenditures are

[[Page 124]]

made. The candidate and his or her authorized political committee(s) may 
accept contributions made after the date of the election if such 
contributions are designated in writing by the contributor for that 
election and if such contributions do not exceed the adjusted amount of 
net debts outstanding on the date the contribution is received.
    (4) For purposes of this section, a contribution shall be considered 
to be designated in writing for a particular election if--
    (i) The contribution is made by check, money order, or other 
negotiable instrument which clearly indicates the particular election 
with respect to which the contribution is made;
    (ii) The contribution is accompanied by a writing, signed by the 
contributor, which clearly indicates the particular election with 
respect to which the contribution is made; or
    (iii) The contribution is redesignated in accordance with 11 CFR 
110.2(b)(5).
    (5)(i) The treasurer of an authorized political committee may 
request a written redesignation of a contribution by the contributor for 
a different election if--
    (A) The contribution was designated in writing for a particular 
election, and the contribution, either on its face or when aggregated 
with other contributions from the same contributor for the same 
election, exceeds the limitation on contributions set forth in 11 CFR 
110.2(b)(1);
    (B) The contribution was designated in writing for a particular 
election and the contribution was made after that election and the 
contribution cannot be accepted under the net debts outstanding 
provisions of 11 CFR 110.2(b)(3);
    (C) The contribution was not designated in writing for a particular 
election, and the contribution exceeds the limitation on contributions 
set forth in 11 CFR 110.2(b)(1); or
    (D) The contribution was not designated in writing for a particular 
election and the contribution was received after the date of an election 
for which there are net debts outstanding on the date the contribution 
is received.
    (ii) A contribution shall be considered to be redesignated for 
another election if--
    (A) The treasurer of the recipient authorized political committee 
requests that the contributor provide a written redesignation of the 
contribution and informs the contributor that the contributor may 
request the refund of the contribution as an alternative to providing a 
written redesignation; and
    (B) Within sixty days from the date of the treasurer's receipt of 
the contribution, the contributor provides the treasurer with a written 
redesignation of the contribution for another election, which is signed 
by the contributor.
    (iii) A contribution redesignated for another election shall not 
exceed the limitations on contributions made with respect to that 
election. A contribution redesignated for a previous election shall be 
subject to the requirements of 11 CFR 110.2(b)(3) regarding net debts 
outstanding.
    (6) For the purposes of this section, a contribution shall be 
considered to be made when the contributor relinquishes control over the 
contribution. A contributor shall be considered to relinquish control 
over the contribution when it is delivered by the contributor to the 
candidate, to the political committee, or to an agent of the political 
committee. A contribution that is mailed to the candidate, or to the 
political committee or to an agent of the political committee, shall be 
considered to be made on the date of the postmark. See 11 CFR 
110.1(1)(4). An in-kind contribution shall be considered to be made on 
the date that the goods or services are provided by the contributor.
    (c) Contributions to political party committees. (1) No 
multicandidate political committee shall make contributions to the 
political committees established and maintained by a national political 
party in any calendar year which, in the aggregate, exceed $15,000.
    (2) For purposes of this section, political committees established 
and maintained by a national political party means--
    (i) The national committee;
    (ii) The House campaign committee; and

[[Page 125]]

    (iii) The Senate campaign committee.
    (3) Each recipient committee referred to in 11 CFR 110.2(c)(2) may 
receive up to the $15,000 limitation from a multicandidate political 
committee.
    (4) The recipient committee shall not be an authorized political 
committee of any candidate, except as provided in 11 CFR 9002.1(c).
    (d) Contributions to other political committees. (1) No 
multicandidate political committee shall make contributions to any other 
political committee in any calendar year which, in the aggregate, exceed 
$5,000.
    (2) The limitation on contributions of this paragraph also applies 
to contributions made to political committees making independent 
expenditures under 11 CFR part 109.
    (e) Contributions by political party committees to Senatorial 
candidates. Notwithstanding any other provision of the Act, or of these 
regulations, the Republican and Democratic Senatorial campaign 
committees, or the national committee of a political party, may make 
contributions of not more than a combined total of $17,500 to a 
candidate for nomination or election to the Senate during the calendar 
year of the election for which he or she is a candidate. Any 
contribution made by such committee to a Senatorial candidate under this 
paragraph in a year other than the calendar year in which the election 
is held shall be considered to be made during the calendar year in which 
the election is held.
    (f) Contributions to candidates for more than one Federal office. If 
an individual is a candidate for more than one Federal office, a 
multicandidate political committee may make contributions which do not 
exceed $5,000 to the candidate, or his or her authorized political 
committees for each election for each office, provided that the 
requirements set forth in 11 CFR 110.1(f)(1), (2), and (3) are 
satisfied.
    (g) Contributions to retire pre-1975 debts. Contributions made to 
retire debts resulting from elections held prior to January 1, 1975 are 
not subject to the limitations of 11 CFR part 110, as long as 
contributions and solicitations to retire these debts are designated in 
writing and used for that purpose. Contributions made to retire debts 
resulting from elections held after December 31, 1974 are subject to the 
limitations of 11 CFR part 110.
    (h) Contributions to committees supporting the same candidate. A 
multicandidate political committee may contribute to a candidate or his 
or her authorized committee with respect to a particular election and 
also contribute to a political committee which has supported, or 
anticipates supporting, the same candidate in the same election, as long 
as--
    (1) The recipient political committee is not the candidate's 
principal campaign committee or other authorized political committee or 
a single candidate committee;
    (2) The multicandidate political committee does not give with the 
knowledge that a substantial portion will be contributed to, or expended 
on behalf of, that candidate for the same election; and
    (3) The multicandidate political committee does not retain control 
over the funds.
    (i) Application of limitations to elections. (1) The limitations on 
contributions of this section (other than paragraph (e) of this section) 
shall apply separately with respect to each election as defined in 11 
CFR 100.2, except that all elections held in a calendar year for the 
office of President of the United States (except a general election for 
that office) shall be considered to be one election.
    (2) An election in which a candidate is unopposed is a separate 
election for the purposes of the limitations on contributions of this 
section.
    (3) A primary or general election which is not held because a 
candidate is unopposed or received a majority of votes in a previous 
election is a separate election for the purposes of the limitations on 
contributions of this section. The date on which the election would have 
been held shall be considered to be the date of the election.
    (4) A primary election which is not held because a candidate was 
nominated by a caucus or convention with authority to nominate is not a 
separate election for the purposes of the limitations on contributions 
of this section.

[[Page 126]]

    (j) Contributions to delegates and delegate committees. (1) 
Contributions to delegates for the purpose of furthering their selection 
under 11 CFR 110.14 are not subject to the limitations of this section.
    (2) Contributions to delegate committees under 11 CFR 110.14 are 
subject to the limitations of this section.

[52 FR 772, Jan. 9, 1987, as amended at 52 FR 35534, Sept. 22, 1987; 58 
FR 42173, Aug. 6, 1993]



Sec. 110.3  Contribution limitations for affiliated committees and political party committees; Transfers (2 U.S.C. 441a(a)(5), 441a(a)(4)).

    (a) Contribution limitations for affiliated committees. (1) For the 
purposes of the contribution limitations of 11 CFR 110.1 and 110.2, all 
contributions made or received by more than one affiliated committee, 
regardless of whether they are political committees under 11 CFR 100.5, 
shall be considered to be made or received by a single political 
committee. See 11 CFR 100.5(g). Application of this paragraph means that 
all contributions made or received by the following committees shall be 
considered to be made or received by a single political committee--
    (i) Authorized committees of the same candidate for the same 
election to Federal office; or
    (ii) Committees (including a separate segregated fund, see 11 CFR 
part 114) established, financed, maintained or controlled by the same 
corporation, labor organization, person or group of persons, including 
any parent, subsidiary, branch, division, department or local unit 
thereof. For the purposes of this section, local unit may include, in 
appropriate cases, a franchisee, licensee, or State or regional 
association.
    (2) Affiliated committees sharing a single contribution limitation 
under paragraph (a)(1)(ii) of this section include all of the committees 
established, financed, maintained or controlled by--
    (i) A single corporation and/or its subsidiaries;
    (ii) A single national or international union and/or its local 
unions or other subordinate organizations;
    (iii) An organization of national or international unions and/or all 
its State and local central bodies;
    (iv) A membership organization, (other than political party 
committees, see paragraph (b) of this section) including trade or 
professional associations, see 11 CFR 114.8(a), and/or related State and 
local entities of that organization or group; or
    (v) The same person or group of persons.
    (3)(i) The Commission may examine the relationship between 
organizations that sponsor committees, between the committees 
themselves, or between one sponsoring organization and a committee 
established by another organization to determine whether committees are 
affiliated.
    (ii) In determining whether committees not described in paragraphs 
(a)(2) (i)-(iv) of this section are affiliated, the Commission will 
consider the circumstantial factors described in paragraphs (a)(3)(ii) 
(A) through (J) of this section. The Commission will examine these 
factors in the context of the overall relationship between committees or 
sponsoring organizations to determine whether the presence of any factor 
or factors is evidence of one committee or organization having been 
established, financed, maintained or controlled by another committee or 
sponsoring organization. Such factors include, but are not limited to:
    (A) Whether a sponsoring organization owns a controlling interest in 
the voting stock or securities of the sponsoring organization of another 
committee;
    (B) Whether a sponsoring organization or committee has the authority 
or ability to direct or participate in the governance of another 
sponsoring organization or committee through provisions of 
constitutions, bylaws, contracts, or other rules, or through formal or 
informal practices or procedures;
    (C) Whether a sponsoring organization or committee has the authority 
or ability to hire, appoint, demote or otherwise control the officers, 
or other decisionmaking employees or members of another sponsoring 
organization or committee;

[[Page 127]]

    (D) Whether a sponsoring organization or committee has a common or 
overlapping membership with another sponsoring organization or committee 
which indicates a formal or ongoing relationship between the sponsoring 
organizations or committees;
    (E) Whether a sponsoring organization or committee has common or 
overlapping officers or employees with another sponsoring organization 
or committee which indicates a formal or ongoing relationship between 
the sponsoring organizations or committees;
    (F) Whether a sponsoring organization or committee has any members, 
officers or employees who were members, officers or employees of another 
sponsoring organization or committee which indicates a formal or ongoing 
relationship between the sponsoring organizations or committees, or 
which indicates the creation of a successor entity;
    (G) Whether a sponsoring organization or committee provides funds or 
goods in a significant amount or on an ongoing basis to another 
sponsoring organization or committee, such as through direct or indirect 
payments for administrative, fundraising, or other costs, but not 
including the transfer to a committee of its allocated share of proceeds 
jointly raised pursuant to 11 CFR 102.17;
    (H) Whether a sponsoring organization or committee causes or 
arranges for funds in a significant amount or on an ongoing basis to be 
provided to another sponsoring organization or committee, but not 
including the transfer to a committee of its allocated share of proceeds 
jointly raised pursuant to 11 CFR 102.17;
    (I) Whether a sponsoring organization or a committee or its agent 
had an active or significant role in the formation of another sponsoring 
organization or committee; and
    (J) Whether the sponsoring organizations or committees have similar 
patterns of contributions or contributors which indicates a formal or 
ongoing relationshp between the sponsoring organizations or committees.
    (b) Contribution limitations for political party committees. (1) For 
the purposes of the contribution limitations of 11 CFR 110.1 and 110.2, 
all contributions made or received by the following political committees 
shall be considered to be made or received by separate political 
committees--
    (i) The national committee of a political party and any political 
committees established, financed, maintained, or controlled by the same 
national committee; and
    (ii) The State committee of the same political party.
    (2) Application of paragraph (b)(1)(i) of this section means that--
    (i) The House campaign committee and the national committee of a 
political party shall have separate limitations on contributions under 
11 CFR 110.1 and 110.2.
    (ii) The Senate campaign committee and the national committee of a 
political party shall have separate limitations on contributions, except 
that contributions to a senatorial candidate made by the Senate campaign 
committee and the national committee of a political party are subject to 
a single contribution limitation under 11 CFR 110.2(e).
    (3) All contributions made by the political committees established, 
financed, maintained, or controlled by a State party committee and by 
subordinate State party committees shall be presumed to be made by one 
political committee. This presumption shall not apply if--
    (i) The political committee of the party unit in question has not 
received funds from any other political committee established, financed, 
maintained, or controlled by any party unit; and
    (ii) The political committee of the party unit in question does not 
make its contributions in cooperation, consultation or concert with, or 
at the request or suggestion of any other party unit or political 
committee established, financed, maintained, or controlled by another 
party unit.
    (c) Permissible Transfers. The contribution limitations of 11 CFR 
110.1 and 110.2 shall not limit the transfers set forth below in 11 CFR 
110.3(c) (1) through (6)--
    (1) Transfers of funds between affiliated committees or between 
party committees of the same political party whether or not they are 
affiliated or by

[[Page 128]]

collecting agents to a separate segregated fund made pursuant to 11 CFR 
102.6;
    (2) Transfers of joint fundraising proceeds between organizations or 
committees participating in the joint fundraising activity provided that 
no participating committee or organization governed by 11 CFR 102.17 
received more than its allocated share of the funds raised;
    (3) Transfers of funds between the primary campaign and general 
election campaign of a candidate of funds unused for the primary;
    (4) Transfers of funds between a candidate's previous Federal 
campaign committee and his or her current Federal campaign committee, or 
between previous Federal campaign committees, provided that the 
candidate is not a candidate for more than one Federal office at the 
same time, and provided that the funds transferred are not composed of 
contributions that would be in violation of the Act. The cash on hand 
from which the transfer is made shall be considered to consist of the 
funds most recently received by the transferor committee. The transferor 
committee must be able to demonstrate that such cash on hand contains 
sufficient funds at the time of the transfer that comply with the 
limitations and prohibitions of the Act to cover the amount transferred.
    (i) Previous Federal campaign committee means a principal campaign 
committee, or other authorized committee, that was organized to further 
the candidate's campaign in a Federal election that has already been 
held.
    (ii) Current Federal campaign committee means a principal campaign 
committee, or other authorized committee, organized to further the 
candidate's campaign in a future Federal election.
    (iii) For purposes of the contribution limits, a contribution made 
after an election has been held, or after an individual ceases to be a 
candidate in an election, shall be aggregated with other contributions 
from the same contributor for the next election unless the contribution 
is designated for the previous election, or is designated for another 
election, and the candidate has net debts outstanding for the election 
so designated pursuant to 11 CFR 110.1(b)(3).
    (iv) For purposes of this section, an individual ceases to be a 
candidate in an election as of the earlier of the following dates--
    (A) The date on which the candidate publicly announces that he or 
she will no longer be a candidate in that election for that office and 
ceases to conduct campaign activities with respect to that election; or
    (B) The date on which the candidate is or becomes ineligible for 
nomination or election to that office by operation of law;
    (5) Transfers of funds between the principal campaign committees of 
an individual seeking nomination or election to more than one Federal 
office, as long as the conditions in 11 CFR 110.3(c)(5) (i), (ii) and 
(iii) are met. An individual will be considered to be seeking nomination 
or election to more than one Federal office if the individual is 
concurrently a candidate for more than one Federal office during the 
same or overlapping election cycles.
    (i) The transfer shall not be made when the individual is actively 
seeking nomination or election to more than one Federal office. An 
individual will not be considered to be actively seeking nomination or 
election to a Federal office if:
    (A) The individual publicly announces that he or she will no longer 
seek nomination or election to that office and ceases to conduct 
campaign activities with respect to that election, except in connection 
with the retirement of debts outstanding at the time of the 
announcement;
    (B) The individual is or becomes ineligible for nomination or 
election to that office by operation of law;
    (C) The individual has filed a proper termination report with the 
Commission under 11 CFR 102.3; or
    (D) The individual has notified the Commission in writing that the 
individual and his or her authorized committees will conduct no further 
campaign activities with respect to that election, except in connection 
with the retirement of debts outstanding at the time of the 
notification;

[[Page 129]]

    (ii) The limitations on contributions by persons shall not be 
exceeded by the transfer. The cash on hand from which the transfer is 
made shall be considered to consist of the funds most recently received 
by the transferor committee. The transferor committee must be able to 
demonstrate that such cash on hand contains sufficient funds at the time 
of the transfer that comply with the limitations and prohibitions of the 
Act to cover the amount transferred. A contribution shall be excluded 
from the amount transferred to the extent that such contribution, when 
aggregated with other contributions from the same contributor to the 
transferee principal campaign committee, exceeds the contribution limits 
set forth at 11 CFR 110.1 or 110.2, as appropriate; and
    (iii) The candidate has not elected to receive funds under 26 U.S.C. 
9006 or 9037 for either election; or
    (6) [Reserved]
    (7) The authorized committees of a candidate for more than one 
Federal office, or for a Federal office and a nonfederal office, shall 
follow the requirements for separate campaign organizations set forth at 
11 CFR 110.8(d).
    (d) Transfers from nonfederal to federal campaigns. Transfers of 
funds or assets from a candidate's campaign committee or account for a 
nonfederal election to his or her principal campaign committee or other 
authorized committee for a federal election are prohibited. However, at 
the option of the nonfederal committee, the nonfederal committee may 
refund contributions, and may coordinate arrangements with the 
candidate's principal campaign committee or other authorized committee 
for a solicitation by such committee(s) to the same contributors. The 
full cost of this solicitation shall be paid by the Federal committee.

[54 FR 34110, Aug. 17, 1989, and 54 FR 48580, Nov. 24, 1989; 58 FR 3476, 
Jan. 8, 1993]



Sec. 110.4  Prohibited contributions (2 U.S.C. 441e, 441f, 441g, 432(c)(2)).

    (a) Contributions or expenditures by foreign nationals. (1) A 
foreign national shall not directly or through any other person make a 
contribution, or an expenditure, or expressly or impliedly promise to 
make a contribution, or an expenditure, in connection with a convention, 
a caucus, or a primary, general, special, or runoff election in 
connection with any local, State, or Federal public office.
    (2) No person shall solicit, accept, or receive a contribution as 
set out above from a foreign national.
    (3) A foreign national shall not direct, dictate, control, or 
directly or indirectly participate in the decision-making process of any 
person, such as a corporation, labor organization, or political 
committee, with regard to such person's Federal or nonfederal election-
related activities, such as decisions concerning the making of 
contributions or expenditures in connection with elections for any 
local, State, or Federal office or decisions concerning the 
administration of a political committee.
    (4) For purposes of this section, foreign national means--
    (i) A foreign principal, as defined in 22 U.S.C. 611(b); or
    (ii) An individual who is not a citizen of the United States and who 
is not lawfully admitted for permanent residence, as defined in 8 U.S.C. 
1101(a)(20);
    (iii) Except that foreign national shall not include any individual 
who is a citizen of the United States.
    (b) Contributions in the name of another. (1) No person shall--
    (i) Make a contribution in the name of another;
    (ii) Knowingly permit his or her name to be used to effect that 
contribution;
    (iii) Knowingly help or assist any person in making a contribution 
in the name of another; or
    (iv) Knowingly accept a contribution made by one person in the name 
of another.
    (2) Examples of contributions in the name of another include--
    (i) Giving money or anything of value, all or part of which was 
provided to the contributor by another person (the true contributor) 
without disclosing the source of money or the thing of value to the 
recipient candidate or committee at the time the contribution is made, 
see 11 CFR 110.6; or
    (ii) Making a contribution of money or anything of value and 
attributing as

[[Page 130]]

the source of the money or thing of value another person when in fact 
the contributor is the source.
    (c) Cash contributions. (1) With respect to any campaign for 
nomination for election or election to Federal office, no person shall 
make contributions to a candidate or political committee of currency of 
the United States, or of any foreign country, which in the aggregate 
exceed $100.
    (2) A candidate or committee receiving a cash contribution in excess 
of $100 shall promptly return the amount over $100 to the contributor.
    (3) A candidate or committee receiving an anonymous cash 
contribution in excess of $50 shall promptly dispose of the amount over 
$50. The amount over $50 may be used for any lawful purpose unrelated to 
any Federal election, campaign, or candidate.

[54 FR 34112, Aug. 17, 1989, and 54 FR 48580, Nov. 24, 1989, as amended 
at 54 FR 48582, Nov. 24, 1989; 55 FR 1139, Jan. 11, 1990]



Sec. 110.5  Annual contribution limitation for individuals (2 U.S.C. 441a(a)(3)).

    (a) Scope. This section applies to all contributions made by any 
individual, except individuals prohibited from making contributions 
under 11 CFR 110.4 and 11 CFR part 115.
    (b) Annual limitation. No individual shall make contributions in any 
calendar year which aggregate more than $25,000.
    (c) Contributions made in a nonelection year. (1) For the purposes 
of this section, nonelection year means a year other than the calendar 
year in which a particular election is held.
    (2) For purposes of this section, any contribution to a candidate or 
his or her authorized committee with respect to a particular election 
made in a nonelection year shall be considered to be made during the 
calendar year in which such election is held.
    (3) For purposes of this section, any contribution to an 
unauthorized committee which is made in a nonelection year shall not be 
considered to be made during the calendar year in which an election is 
held unless:
    (i) The political committee is a single candidate committee which 
has supported or anticipates supporting the candidate; or
    (ii) The contribution is earmarked by the contributor for a 
particular candidate with respect to a particular election.
    (d) Independent expenditures. The annual limitation on contributions 
in this section applies to contributions made to persons, including 
political committees, making independent expenditures under 11 CFR part 
109.
    (e) Contributions to delegates and delegate committees. The annual 
limitation on contributions in this section applies to contributions to 
delegates and delegate committees under 11 CFR 110.14.

[54 FR 34112, Aug. 17, 1989 and 54 FR 48580, Nov. 24, 1989]



Sec. 110.6  Earmarked contributions (2 U.S.C. 441a(a)(8)).

    (a) General. All contributions by a person made on behalf of or to a 
candidate, including contributions which are in any way earmarked or 
otherwise directed to the candidate through an intermediary or conduit, 
are contributions from the person to the candidate.
    (b) Definitions. (1) For purposes of this section, earmarked means a 
designation, instruction, or encumbrance, whether direct or indirect, 
express or implied, oral or written, which results in all or any part of 
a contribution or expenditure being made to, or expended on behalf of, a 
clearly identified candidate or a candidate's authorized committee.
    (2) For purposes of this section, conduit or intermediary means any 
person who receives and forwards an earmarked contribution to a 
candidate or a candidate's authorized committee, except as provided in 
paragraph (b)(2)(i) of this section.
    (i) For purposes of this section, the following persons shall not be 
considered to be conduits or intermediaries:
    (A) An individual who is an employee or a full-time volunteer 
working for the candidate's authorized committee, provided that the 
individual is not acting in his or her capacity as a representative of 
an entity prohibited from making contributions;
    (B) A fundraising representative conducting joint fundraising with 
the candidate's authorized committee pursuant to 11 CFR 102.17 or 
9034.8;

[[Page 131]]

    (C) An affiliated committee, as defined in 11 CFR 100.5(g);
    (D) A commercial fundraising firm retained by the candidate or the 
candidate's authorized committee to assist in fundraising; and
    (E) An individual who is expressly authorized by the candidate or 
the candidate's authorized committee to engage in fundraising, and who 
occupies a significant position within the candidate's campaign 
organization, provided that the individual is not acting in his or her 
capacity as a representative of an entity prohibited from making 
contributions.
    (ii) Any person who is prohibited from making contributions or 
expenditures in connection with an election for Federal office shall be 
prohibited from acting as a conduit for contributions earmarked to 
candidates or their authorized committees. The provisions of this 
section shall not restrict the ability of an organization or committee 
to serve as a collecting agent for a separate segregated fund pursuant 
to 11 CFR 102.6.
    (iii) Any person who receives an earmarked contribution shall 
forward such earmarked contribution to the candidate or authorized 
committee in accordance with 11 CFR 102.8, except that--
    (A) A fundraising representative shall follow the joint fundraising 
procedures set forth at 11 CFR 102.17.
    (B) A person who is prohibited from acting as a conduit pursuant to 
paragraph (b)(2)(ii) of this section shall return the earmarked 
contribution to the contributor.
    (c) Reporting of earmarked contributions--(1) Reports by conduits 
and intermediaries. (i) The intermediary or conduit of the earmarked 
contribution shall report the original source and the recipient 
candidate or authorized committee to the Commission or the Secretary of 
the Senate, as appropriate (see 11 CFR part 105), and to the recipient 
candidate or authorized committee.
    (ii) The report to the Commission or Secretary shall be included in 
the conduit's or intermediary's report for the reporting period in which 
the earmarked contribution was received, or, if the conduit or 
intermediary is not required to report under 11 CFR part 104, by letter 
to the Commission within thirty days after forwarding the earmarked 
contribution.
    (iii) The report to the recipient candidate or authorized committee 
shall be made when the earmarked contribution is forwarded to the 
recipient candidate or authorized committee pursuant to 11 CFR 102.8.
    (iv) The report by the conduit or intermediary shall contain the 
following information:
    (A) The name and mailing address of each contributor and, for each 
earmarked contribution in excess of $200, the contributor's occupation 
and the name of his or her employer;
    (B) The amount of each earmarked contribution, the date received by 
the conduit, and the intended recipient as designated by the 
contributor; and
    (C) The date each earmarked contribution was forwarded to the 
recipient candidate or authorized committee and whether the earmarked 
contribution was forwarded in cash or by the contributor's check or by 
the conduit's check.
    (v) For each earmarked contribution passed through the conduit's or 
intermediary's account, the information specified in paragraph 
(c)(1)(iv) (A) through (C) of this section shall be itemized on the 
appropriate schedules of receipts and disbursements attached to the 
conduit's or intermediary's report, or shall be disclosed by letter, as 
appropriate. For each earmarked contribution forwarded in the form of 
the contributor's check or other written instrument, the information 
specified in paragraph (c)(1)(iv) (A) through (C) of this section shall 
be disclosed as a memo entry on the appropriate schedules of receipts 
and disbursements attached to the conduit's or intermediary's report, or 
shall be disclosed by letter, as appropriate.
    (2) Reports by recipient candidates and authorized committees. (i) 
The recipient candidate or authorized committee shall report each 
conduit or intermediary who forwards one or more earmarked contributions 
which in the aggregate exceed $200 in any calendar year.

[[Page 132]]

    (ii) The report by the recipient candidate or authorized committee 
shall contain the following information:
    (A) The identification of the conduit or intermediary, as defined in 
11 CFR 100.12;
    (B) The total amount of earmarked contributions received from the 
conduit or intermediary and the date of receipt; and
    (C) The information required under 11 CFR 104.3(a) (3) and (4) for 
each earmarked contribution which in the aggregate exceeds $200 in any 
calendar year.
    (iii) The information specified in paragraph (c)(2)(ii) (A) through 
(C) of this section shall be itemized on Schedule A attached to the 
report for the reporting period in which the earmarked contribution is 
received.
    (d) Direction or control. (1) A conduit's or intermediary's 
contribution limits are not affected by the forwarding of an earmarked 
contribution except where the conduit or intermediary exercises any 
direction or control over the choice of the recipient candidate.
    (2) If a conduit or intermediary exercises any direction or control 
over the choice of the recipient candidate, the earmarked contribution 
shall be considered a contribution by both the original contributor and 
the conduit or intermediary. If the conduit or intermediary exercises 
any direction or control over the choice of the recipient candidate, the 
report filed by the conduit or intermediary and the report filed by the 
recipient candidate or authorized committee shall indicate that the 
earmarked contribution is made by both the original contributor and the 
conduit or intermediary, and that the entire amount of the contribution 
is attributed to each.

[54 FR 34113, Aug. 17, 1989 and 54 FR 48580, Nov. 24, 1989; 61 FR 3550, 
Feb. 1, 1996]



Sec. 110.7  Party committee expenditure limitations (2 U.S.C. 441a(d)).

    (a)(1) The national committee of a political party may make 
expenditures in connection with the general election campaign of any 
candidate for President of the United States affiliated with the party.
    (2) The expenditures shall not exceed an amount equal to 2 cents 
multiplied by the voting age population of the United States.
    (3) Any expenditure under this paragraph (a) shall be in addition 
to--
    (i) Any expenditure by a national committee of a political party 
serving as the principal campaign committee of a candidate for President 
of the United States; and
    (ii) Any contribution by the national committee to the candidate 
permissible under Sec. 110.1 or Sec. 110.2.
    (4) The national committee of a political party may make 
expenditures authorized by this section through any designated agent, 
including State and subordinate party committees.
    (5) The national committee of a political party may not make 
independent expenditures (see part 109) in connection with the general 
election campaign of a candidate for President of the United States.
    (6) Any expenditures made by the national, state and subordinate 
committees of a political party pursuant to 11 CFR 110.7(a) on behalf of 
that party's Presidential candidate shall not count against the 
candidate's expenditure limitations under 11 CFR 110.8.
    (b)(1) The national committee of a political party, and a State 
committee of a political party, including any subordinate committee of a 
State committee, may each make expenditures in connection with the 
general election campaign of a candidate for Federal office in that 
State who is affiliated with the party.
    (2) The expenditures shall not exceed--
    (i) In the case of a candidate for election to the office of 
Senator, or of Representative from a State which is entitled to only one 
Representative, the greater of--
    (A) Two cents multiplied by the voting age population of the State; 
or
    (B) Twenty thousand dollars; and
    (ii) In the case of a candidate for election to the office of 
Representative, Delegate, or Resident Commissioner in any other State, 
$10,000.
    (3) Any expenditure under paragraph (b) shall be in addition to any 
contribution by a committee to the candidate permissible under 
Sec. 110.1 or Sec. 110.2.
    (c) For limitation purposes, State committee includes subordinate 
State

[[Page 133]]

committees. State committees and subordinate State committees combined 
shall not exceed the limits in paragraph (b)(2) of this section. To 
ensure compliance with the limitations, the State committee shall 
administer the limitation in one of the following ways:
    (1) The State central committee shall be responsible for insuring 
that the expenditures of the entire party organization are within the 
limitations, including receiving reports from any subordinate committee 
making expenditures under paragraph (b) of this section, and filing 
consolidated reports showing all expenditures in the State with the 
Commission; or
    (2) Any other method, submitted in advance and approved by the 
Commission which permits control over expenditures.
    (d) Timing. Party committees may make coordinated expenditures in 
connection with the general election campaign before their candidates 
have been nominated. All pre-nomination coordinated expenditures shall 
be subject to the coordinated expenditure limitations of this section, 
whether or not the candidate with whom they are coordinated receives the 
party's nomination.

(2 U.S.C. 438(a)(8), 441a, 441d, 441e, 441f, 441g, 441h, 441i)

[41 FR 35948, Aug. 25, 1976, as amended at 45 FR 15119, Mar. 7, 1980; 45 
FR 27435, Apr. 23, 1980; 45 FR 43387, June 27, 1980; 61 FR 40961, Aug. 
7, 1996; 64 FR 42582, Aug. 5, 1999]



Sec. 110.8  Presidential candidate expenditure limitations.

    (a) No candidate for the office of President of the United States 
who is eligible under 26 U.S.C. 9003 (relating to conditions for 
eligibility for payments) or under 26 U.S.C. 9033 (relating to 
eligibility for payments) to receive payments from the Secretary of the 
Treasury and has received payments, may make expenditures in excess of--
    (1) $10,000,000 in the case of a campaign for nomination for 
election to the office, except the aggregate of expenditures under this 
paragraph in any one State shall not exceed the greater of 16 cents 
multiplied by the voting age population of the State or $200,000; or
    (2) $20,000,000 in the case of a campaign for election to the 
office.
    (b) The expenditure limitations shall not be considered violated if, 
after the date of the primary or general election, convention or caucus, 
receipt of refunds and rebates causes a candidate's expenditures to be 
within the limitations.
    (c) For the State limitations in paragraph (a)(1) of this section--
    (1) Expenditures made in a State after the date of the primary 
election, convention or caucus relating to the primary election, 
convention or caucus count toward that State's expenditure limitation;
    (2) The candidate may treat an amount that does not exceed 50% of 
the candidate's total expenditures allocable to a particular State under 
11 CFR 106.2 as exempt fundraising expenses, and may exclude this amount 
from the candidate's total expenditures attributable to the expenditure 
limitations for that State. The candidate may treat 100% of the cost of 
mass mailings as exempt fundraising expenses, unless the mass mailings 
were mailed within 28 days before the state's primary election, 
convention or caucus. The total of all amounts excluded for exempt 
fundraising expenses shall not exceed 20% of the overall expenditure 
limitation under 11 CFR 9035.1.
    (d)(1) If an individual is a candidate for more than one Federal 
office, or for a Federal office and a State office, he or she must 
designate separate principal campaign committees and establish 
completely separate campaign organizations.
    (2) No funds, goods, or services, including loans and loan 
guarantees, may be transferred between or used by the separate 
campaigns, except as provided in 11 CFR 110.3(c)(5).
    (3) Except for Presidential candidates receiving Presidential 
Primary Matching Funds, see 26 U.S.C. 9032, or General Election Public 
Financing, see 26 U.S.C. 9002, campaigns may share personnel and 
facilities, as long as expenditures are allocated between the campaigns, 
and the payment made from each campaign account reflects the allocation.

[[Page 134]]

    (e)(1) A political party may make reimbursement for the expenses of 
a candidate who is engaging in party-building activities, without the 
payment being considered a contribution to the candidate, and without 
the unreimbursed expense being considered an expenditure counting 
against the limitations in paragraph (a) (1) or (2) of this section, as 
long as--
    (i) The event is a bona fide party event or appearance; and
    (ii) No aspect of the solicitation for the event, the setting of the 
event, and the remarks or activities of the candidate in connection with 
the event were for the purpose of influencing the candidate's nomination 
or election.
    (2)(i) An event or appearance meeting the requirements of paragraph 
(e)(1) of this section and occurring prior to January 1 of the year of 
the election for which the individual is a candidate is presumptively 
party-related;
    (ii) Notwithstanding the requirements of paragraph (e)(1) of this 
section, an event or appearance occurring on or after January 1 of the 
year of the election for which the individual is a candidate is 
presumptively for the purpose of influencing the candidate's election, 
and any contributions or expenditures are governed by the contribution 
and expenditure limitations of this part 110.
    (iii) The presumptions in paragraphs (e)(2) (i) and (ii) of this 
section may be rebutted by a showing to the Commission that the 
appearance or event was, or was not, party-related, as the case may be.
    (f)(1) Expenditures made by or on behalf of any candidate nominated 
by a political party for election to the office of Vice President of the 
United States shall be considered to be expenditures made by or on 
behalf of the candidate of such party for election to the office of 
President of the United States.
    (2) Expenditures from personal funds made by a candidate for Vice 
President shall be considered to be expenditures by the candidate for 
President, if the candidate is receiving General Election Public 
Financing, see Sec. 9003.2(c).
    (g) An expenditure is made on behalf of a candidate, including a 
Vice-Presidential candidate, if it is made by--
    (1) An authorized committee or any other agent of the candidate for 
purposes of making any expenditure;
    (2) Any person authorized or requested by the candidate, an 
authorized committee of the candidate, or an agent of the candidate to 
make the expenditure; or
    (3) A committee not authorized in writing, so long as it is 
requested by the candidate, an authorized committee of the candidate, or 
an agent of the candidate to make the expenditure.

[41 FR 35948, Aug. 25, 1976, as amended at 45 FR 21210, Apr. 1, 1980; 54 
FR 34114, Aug. 17, 1989; 54 FR 48580, Nov. 24, 1989; 56 FR 35911, July 
29, 1991]



Sec. 110.9  Miscellaneous provisions.

    (a) Violation of limitations. No candidate or political committee 
shall accept any contribution or make any expenditure in violation of 
the provisions of part 110. No officer or employee of a political 
committee shall accept a contribution made for the benefit or use of a 
candidate, or make any expenditure on behalf of a candidate, in 
violation of any limitation imposed on contributions and expenditures 
under this part 110.
    (b) Fraudulent misrepresentation. No person who is a candidate for 
Federal office or an employee or agent of such a candidate shall--
    (1) Fraudulently misrepresent himself or any committee or 
organization under his control as speaking or writing or otherwise 
acting for or on behalf of any other candidate or political party or 
employee or agent thereof on a matter which is damaging to such other 
candidate or political party or employee or agent thereof; or
    (2) Willfully and knowingly participate in or conspire to 
participate in any plan or design to violate paragraph (b)(1) of this 
section.
    (c) Price index increase. (1) Each limitation established by 
Secs. 110.7 and 110.8 shall be increased by the annual percent 
difference of the price index, as certified to the Commission by the 
Secretary of Labor. Each amount so increased shall be the amount in 
effect for that calendar year.
    (2) For purposes of paragraph (c)(1) of this section, the term price 
index means the average over a calendar year of the

[[Page 135]]

Consumer Price Index (all items--United States city average) published 
monthly by the Bureau of Labor Statistics.
    (d) Voting age population. The Commission shall assure that there is 
annually published in the Federal Register an estimate of the voting age 
population based on an estimate of the voting age population of the 
United States, of each State, and of each congressional district. The 
term voting age population means resident population, 18 years of age or 
older.

[41 FR 35948, Aug. 25, 1976]



Sec. 110.10  Expenditures by candidates.

    (a) Except as provided in 11 CFR parts 9001, et seq. and 9031, et 
seq., candidates for Federal office may make unlimited expenditures from 
personal funds.
    (b) For purposes of this section, personal funds means--
    (1) Any assets which, under applicable state law, at the time he or 
she became a candidate, the candidate had legal right of access to or 
control over, and with respect to which the candidate had either:
    (i) Legal and rightful title, or
    (ii) An equitable interest.
    (2) Salary and other earned income from bona fide employment; 
dividends and proceeds from the sale of the candidate's stocks or other 
investments; bequests to the candidate; income from trusts established 
before candidacy; income from trusts established by bequest after 
candidacy of which the candidate is the beneficiary; gifts of a personal 
nature which had been customarily received prior to candidacy; proceeds 
from lotteries and similar legal games of chance.
    (3) A candidate may use a portion of assets jointly owned with his 
or her spouse as personal funds. The portion of the jointly owned assets 
that shall be considered as personal funds of the candidate shall be 
that portion which is the candidate's share under the instrument(s) of 
conveyance or ownership. If no specific share is indicated by an 
instrument of conveyance or ownership, the value of one-half of the 
property used shall be considered as personal funds of the candidate.

[41 FR 35948, Aug. 25, 1976, as amended at 48 FR 19021, Apr. 27, 1983]



Sec. 110.11  Communications; advertising (2 U.S.C. 441d).

    (a)(1) General rules. Except as provided at paragraph (a)(6) of this 
section, whenever any person makes an expenditure for the purpose of 
financing a communication that expressly advocates the election or 
defeat of a clearly identified candidate, or that solicits any 
contribution, through any broadcasting station, newspaper, magazine, 
outdoor advertising facility, poster, yard sign, direct mailing or any 
other form of general public political advertising, a disclaimer meeting 
the requirements of paragraphs (a)(1) (i), (ii), (iii), (iv) or (a)(2) 
of this section shall appear and be presented in a clear and conspicuous 
manner to give the reader, observer or listener adequate notice of the 
identity of persons who paid for and, where required, who authorized the 
communication.
    (i) Such communication, including any solicitation, if paid for and 
authorized by a candidate, an authorized committee of a candidate, or 
its agent, shall clearly state that the communication has been paid for 
by the authorized political committee; or
    (ii) Such communication, including any solicitation, if authorized 
by a candidate, an authorized committee of a candidate or an agent 
thereof, but paid for by any other person, shall clearly state that the 
communication is paid for by such other person and is authorized by such 
candidate, authorized committee or agent; or
    (iii) Such communication, including any solicitation, if made on 
behalf of or in opposition to a candidate, but paid for by any other 
person and not authorized by a candidate, authorized committee of a 
candidate or its agent, shall clearly state that the communication has 
been paid for by such person and is not authorized by any candidate or 
candidate's committee.
    (iv) For solicitations directed to the general public on behalf of a 
political committee which is not an authorized committee of a candidate, 
such solicitation shall clearly state the full name

[[Page 136]]

of the person who paid for the communication.
    (2) Coordinated Party Expenditures. (i) For a communication paid for 
by a party committee pursuant to 2 U.S.C. 441a(d), the disclaimer 
required by paragraph (a)(1) of this section shall identify the 
committee that makes the expenditure as the person who paid for the 
communication, regardless of whether the committee was acting in its own 
capacity or as the designated agent of another committee.
    (ii) A communication made by a party committee pursuant to 2 U.S.C. 
441a(d) prior to the date the party's candidate is nominated shall 
satisfy the requirements of this section if it clearly states who paid 
for the communication.
    (3) Definition of ``direct mailing.'' For purposes of paragraph 
(a)(1) of this section only, direct mailing includes any number of 
substantially similar pieces of mail but does not include a mailing of 
one hundred pieces or less by any person.
    (4) Exempt Activities. For purposes of paragraph (a)(1) of this 
section only, the term expenditure includes a communication by a 
candidate or party committee that qualifies as an exempt activity under 
11 CFR 100.8(b)(10), (16), (17), or (18). Such communications, unless 
excepted under paragraph (a)(6) of this section, shall clearly state who 
paid for the communication but do not have to include an authorization 
statement.
    (5) Placement of Disclaimer. The disclaimers specified in paragraph 
(a)(1) of this section shall be presented in a clear and conspicuous 
manner, to give the reader, observer or listener adequate notice of the 
identity of the person or committee that paid for, and, where required, 
that authorized the communication. A disclaimer is not clear and 
conspicuous if the printing is difficult to read or if the placement is 
easily overlooked.
    (i) The disclaimer need not appear on the front or cover page of the 
communication as long as it appears within the communication, except on 
communications, such as billboards, that contain only a front face.
    (ii) Each communication that would require a disclaimer if 
distributed separately, that is included in a package of materials, must 
contain the required disclaimer.
    (iii) Disclaimers in a televised communication shall be considered 
clear and conspicuous if they appear in letters equal to or greater than 
four (4) percent of the vertical picture height that air for not less 
than four (4) seconds.
    (6) Exceptions. The requirements of paragraph (a)(1) of this section 
do not apply to:
    (i) Bumper stickers, pins, buttons, pens and similar small items 
upon which the disclaimer cannot be conveniently printed;
    (ii) Skywriting, watertowers, wearing apparel or other means of 
displaying an advertisement of such a nature that the inclusion of a 
disclaimer would be impracticable; or
    (iii) Checks, receipts and similar items of minimal value which do 
not contain a political message and which are used for purely 
administrative purposes.
    (7) Activities by separate segregated fund or its connected 
organization. For purposes of paragraph (a)(1) of this section, whenever 
a separate segregated fund or its connected organization solicits 
contributions to the fund from those persons it may solicit under the 
applicable provisions of 11 CFR part 114, or makes a communication to 
those persons, such communication shall not be considered a form of 
general public political advertising and need not contain the disclaimer 
set forth in paragraph (a)(1) of this section.
    (b)(1) No person who sells space in a newspaper or magazine to a 
candidate, an authorized committee of a candidate, or an agent of the 
candidate, for use in connection with the candidate's campaign for 
nomination or for election, shall charge an amount for the space which 
exceeds the comparable rate for the space for non-campaign purposes.
    (2) For purposes of this section, comparable rate means the rate 
charged to a national or general rate advertiser, and shall include 
discount privileges

[[Page 137]]

usually and normally available to a national or general rate advertiser.

(2 U.S.C. 438(a)(8), 441a, 441d, 441e, 441f, 441g, 441h, 441i)

[41 FR 35948, Aug. 25, 1976, as amended at 45 FR 15122, Mar. 7, 1980; 48 
FR 8809, Mar. 2, 1983; 60 FR 52072, Oct. 5, 1995]



Sec. 110.12  Candidate appearances on public educational institution premises.

    (a) Rental of facilities at usual and normal charge. Any 
unincorporated public educational institution exempt from federal 
taxation under 26 U.S.C. 115, such as a school, college or university, 
may make its facilities available to any candidate or political 
committee in the ordinary course of business and at the usual and normal 
charge. In this event, the requirements of paragraph (b) of this section 
are not applicable.
    (b) Use of facilities at no charge or at less than the usual and 
normal charge. An unincorporated public educational institution exempt 
from federal taxation under 26 U.S.C. 115, such as a school, college or 
university, may sponsor appearances by candidates, candidates' 
representatives or representatives of political parties at which such 
individuals address or meet the institution's academic community or the 
general public (whichever is invited) on the educational institution's 
premises at no charge or at less than the usual and normal charge, if:
    (1) The educational institution makes reasonable efforts to ensure 
that the appearances constitute speeches, question and answer sessions, 
or similar communications in an academic setting, and makes reasonable 
efforts to ensure that the appearances are not conducted as campaign 
rallies or events; and
    (2) The educational institution does not, in conjunction with the 
appearance, expressly advocate the election or defeat of any clearly 
identified candidate(s) or candidates of a clearly identified political 
party, and does not favor any one candidate or political party over any 
other in allowing such appearances.

[60 FR 64273, Dec. 14, 1995]



Sec. 110.13  Candidate debates.

    (a) Staging organizations. (1) Nonprofit organizations described in 
26 U.S.C. 501 (c)(3) or (c)(4) and which do not endorse, support, or 
oppose political candidates or political parties may stage candidate 
debates in accordance with this section and 11 CFR 114.4(f).
    (2) Broadcasters (including a cable television operator, programmer 
or producer), bona fide newspapers, magazines and other periodical 
publications may stage candidate debates in accordance with this section 
and 11 CFR 114.4(f), provided that they are not owned or controlled by a 
political party, political committee or candidate. In addition, 
broadcasters (including a cable television operator, programmer or 
producer), bona fide newspapers, magazines and other periodical 
publications, acting as press entities, may also cover or carry 
candidate debates in accordance with 11 CFR 100.7 and 100.8.
    (b) Debate structure. The structure of debates staged in accordance 
with this section and 11 CFR 114.4(f) is left to the discretion of the 
staging organizations(s), provided that:
    (1) Such debates include at least two candidates; and
    (2) The staging organization(s) does not structure the debates to 
promote or advance one candidate over another.
    (c) Criteria for candidate selection. For all debates, staging 
organization(s) must use pre-established objective criteria to determine 
which candidates may participate in a debate. For general election 
debates, staging organizations(s) shall not use nomination by a 
particular political party as the sole objective criterion to determine 
whether to include a candidate in a debate. For debates held prior to a 
primary election, caucus or convention, staging organizations may 
restrict candidate participation to candidates seeking the nomination of 
one party, and need not stage a debate for candidates seeking the 
nomination of any other political party or independent candidates.

[61 FR 18051, Apr. 24, 1996; 61 FR 24533, May 15, 1996]

[[Page 138]]



Sec. 110.14  Contributions to and expenditures by delegates and delegate committees.

    (a) Scope. This section sets forth the prohibitions, limitations and 
reporting requirements under the Act applicable to all levels of a 
delegate selection process.
    (b) Definitions--(1) Delegate. Delegate means an individual who 
becomes or seeks to become a delegate, as defined by State law or party 
rule, to a national nominating convention or to a State, district, or 
local convention, caucus or primary that is held to select delegates to 
a national nominating convention.
    (2) Delegate committee. A delegate committee is a group of persons 
that receives contributions or makes expenditures for the sole purpose 
of influencing the selection of one or more delegates to a national 
nominating convention. The term delegate committee includes a group of 
delegates, a group of individuals seeking selection as delegates and a 
group of individuals supporting delegates. A delegate committee that 
qualifies as a political committee under 11 CFR 100.5 must register with 
the Commission pursuant to 11 CFR part 102 and report its receipts and 
disbursements in accordance with 11 CFR part 104.
    (c) Funds received and expended; Prohibited funds. (1) Funds 
received or disbursements made for the purpose of furthering the 
selection of a delegate to a national nominating convention are 
contributions or expenditures for the purpose of influencing a federal 
election, see 11 CFR 100.2 (c)(3) and (e), except that--
    (i) Payments made by an individual to a State committee or 
subordinate State committee as a condition for ballot access as a 
delegate are not contributions or expenditures. Such payments are 
neither required to be reported under 11 CFR part 104 nor subject to 
limitation under 11 CFR 110.1; and
    (ii) Payments made by a State committee or subordinate State party 
committee for administrative expenses incurred in connection with 
sponsoring conventions or caucuses during which delegates to a national 
nominating convention are selected are not contributions or 
expenditures. Such payments are neither required to be reported under 11 
CFR part 104 nor subject to limitation under 11 CFR 110.1 and 110.2.
    (2) All funds received or disbursements made for the purpose of 
furthering the selection of a delegate to a national nominating 
convention, including payments made under paragraphs (c)(1)(i) and 
(c)(1)(ii) of this section, shall be made from funds permissible under 
the Act. See 11 CFR parts 110, 114 and 115.
    (d) Contributions to a delegate. (1) The limitations on 
contributions to candidates and political committees under 11 CFR 110.1 
and 110.2 do not apply to contributions made to a delegate for the 
purpose of furthering his or her selection; however, such contributions 
do count against the limitation on contributions made by an individual 
in a calendar year under 11 CFR 110.5.
    (2) Contributions to a delegate made by the authorized committee of 
a presidential candidate count against the presidential candidate's 
expenditure limitation under 11 CFR 110.8(a).
    (3) A delegate is not required to report contributions received for 
the purpose of furthering his or her selection.
    (e) Expenditures by delegate to advocate only his or her selection. 
(1) Expenditures by a delegate that advocate only his or her selection 
are neither contributions to a candidate, subject to limitation under 11 
CFR 110.1, nor chargeable to the expenditure limits of any Presidential 
candidate under 11 CFR 110.8(a). Such expenditures may include, but are 
not limited to: Payments for travel and subsistence during the delegate 
selection process, including the national nominating convention, and 
payments for any communications advocating only the delegate's 
selection.
    (2) A delegate is not required to report expenditures made to 
advocate only his or her selection.
    (f) Expenditures by a delegate referring to a candidate for public 
office--(1) Volunteer activities that do not use public political 
advertising. (i) Expenditures by a delegate to defray the costs of 
certain campaign materials (such as pins, bumper stickers, handbills, 
brochures, posters and yard signs) that advocate

[[Page 139]]

his or her selection and also include information on or reference to a 
candidate for the office of President or any other public office are 
neither contributions to the candidate referred to nor subject to 
limitation under 11 CFR 110.1 provided that:
    (A) The materials are used in connection with volunteer activities; 
and
    (B) The expenditures are not for costs incurred in the use of 
broadcasting, newspapers, magazines, billboards, direct mail or similar 
types of general public communication or political advertising.
    (ii) Such expenditures are not chargeable to the expenditure 
limitation of a presidential candidate under 11 CFR 110.8(a).
    (iii) A delegate is not required to report expenditures made 
pursuant to this paragraph.
    (2) Use of public political advertising. A delegate may make 
expenditures to defray costs incurred in the use of broadcasting, 
newspapers, magazines, billboards, direct mail or similar types of 
general public communication or political advertising to advocate his or 
her selection and also include information on or reference to a 
candidate for the office of President or any other public office.
    (i) Such expenditures are in-kind contributions to a Federal 
candidate if they are made in cooperation, consultation or concert with, 
or at the request or suggestion of, the candidate, his or her authorized 
political committee(s), or their agents. See 11 CFR 100.7(a)(iii)(A); 2 
U.S.C. 441a(a)(7)(B).
    (A) The portion of the expenditure allocable to a Federal candidate 
is subject to the contribution limitations of 11 CFR 110.1.
    (B) A Federal candidate's authorized committee must report the 
portion of the expenditure allocable to the candidate as a contribution 
pursuant to 11 CFR part 104.
    (C) The portion of the expenditure allocable to a presidential 
candidate is chargeable to the presidential candidate's expenditure 
limitation under 11 CFR 110.8(a).
    (ii) Such expenditures are independent expenditures under 11 CFR 
part 109 if they are made for a communication expressly advocating the 
election or defeat of a clearly identified Federal candidate that is not 
made with the cooperation or with the prior consent of, or in 
consultation with, or at the request or suggestion of, the candidate or 
any agent or authorized committee of such candidate.
    (A) Such independent expenditures must be made in accordance with 
the requirements of 11 CFR part 109.
    (B) The delegate shall report the portion of the expenditure 
allocable to the Federal candidate as an independent expenditure in 
accordance with 11 CFR 109.2.
    (3) Republication of candidate materials. Expenditures made to 
finance the dissemination, distribution or republication, in whole or in 
part, of any broadcast or materials prepared by a Federal candidate are 
in-kind contributions to the candidate.
    (i) Such expenditures are subject to the contribution limits of 11 
CFR 110.1.
    (ii) The Federal candidate must report the expenditure as a 
contribution pursuant to 11 CFR part 104.
    (iii) Such expenditures are not chargeable to the presidential 
candidate's expenditure limitation under 11 CFR 110.8 unless they were 
made with the cooperation, or with the prior consent of, or in 
consultation with, or at the request or suggestion of, the candidate or 
any agent or authorized committee of such candidate.
    (4) For purposes of this paragraph, direct mail means any mailing(s) 
by commercial vendors or any mailing(s) made from lists that were not 
developed by the delegate.
    (g) Contributions made to and by a delegate committee. (1) The 
limitations on contributions to political committees under 11 CFR 110.1 
and 110.2 apply to contributions made to and by a delegate committee.
    (2) Contributions to a delegate committee count against the 
limitation on contributions made by an individual in a calendar year 
under 11 CFR 110.5.
    (3) A delegate committee shall report contributions it makes and 
receives pursuant to 11 CFR part 104.
    (h) Expenditures by a delegate committee to advocate only the 
selection of one or more delegates. (1) Expenditures by a delegate 
committee that advocate

[[Page 140]]

only the selection of one or more delegates are neither contributions to 
a candidate, subject to limitation under 11 CFR 110.1 nor chargeable to 
the expenditure limits of any Presidential candidate under 11 CFR 
110.8(a). Such expenditures may include but are not limited to: Payments 
for travel and subsistence during the delegate selection process, 
including the national nominating convention, and payments for any 
communications advocating only the selection of one or more delegates.
    (2) A delegate committee shall report expenditures made pursuant to 
this paragraph.
    (i) Expenditures by a delegate committee referring to a candidate 
for public office--(1) Volunteer activities that do not use public 
political advertising. (i) Expenditures by a delegate committee to 
defray the costs of certain campaign materials (such as pins, bumper 
stickers, handbills, brochures, posters and yard signs) that advocate 
the selection of a delegate and also include information on or reference 
to a candidate for the office of President or any other public office 
are neither contributions to the candidate referred to, nor subject to 
limitation under 11 CFR 110.1 provided that:
    (A) The materials are used in connection with volunteer activities; 
and
    (B) The expenditures are not for costs incurred in the use of 
broadcasting, newspapers, magazines, billboards, direct mail or similar 
types of general public communication or political advertising.
    (ii) Such expenditures are not chargeable to the expenditure 
limitation of a presidential candidate under 11 CFR 110.8(a).
    (iii) A delegate committee shall report expenditures made pursuant 
to this paragraph.
    (2) Use of public political advertising. A delegate committee may 
make expenditures to defray costs incurred in the use of broadcasting, 
newspapers, magazines, billboards, direct mail or similar types of 
general public communication or political advertising to advocate the 
selection of one or more delegates and also include information on or 
reference to a candidate for the office of President or any other public 
office. If such expenditures are in-kind contributions or independent 
expenditures under paragraphs (i) or (ii) below, the delegate committee 
shall allocate the portion of the expenditures relating to the 
delegate(s) and candidate(s) referred to in the communications between 
them and report the portion allocable to each.
    (i) Such expenditures are in-kind contributions to a Federal 
candidate if they are made in cooperation, consultation or concert with 
or at the request or suggestion of the candidate, his or her authorized 
political committee(s), or their agents.
    (A) The portion of the expenditure allocable to a Federal candidate 
is subject to the contribution limitations of 11 CFR 110.1. The delegate 
committee shall report the portion allocable to the Federal candidate as 
a contribution in-kind.
    (B) The Federal candidate's authorized committee shall report the 
portion of the expenditure allocable to the candidate as a contribution 
pursuant to 11 CFR part 104.
    (C) The portion of the expenditure allocable to a presidential 
candidate is chargeable to the presidential candidate's expenditure 
limitation under 11 CFR 110.8(a).
    (ii) Such expenditures are independent expenditures under 11 CFR 
part 109 if they are made for a communication expressly advocating the 
election or defeat of a clearly identified Federal candidate that is not 
made with the cooperation or with the prior consent of, or in 
consultation with, or at the request or suggestion of, the candidate or 
any agent or authorized committee of such candidate.
    (A) Such independent expenditures must be made in accordance with 
the requirements of 11 CFR part 109.
    (B) The delegate committee shall report the portion of the 
expenditure allocable to the Federal candidate as an independent 
expenditure in accordance with 11 CFR 109.2.
    (3) Republication of candidate materials. Expenditures made to 
finance the dissemination, distribution or republication, in whole or in 
part, of any broadcast or materials prepared by a Federal candidate are 
in-kind contributions to the candidate.

[[Page 141]]

    (i) Such expenditures are subject to the contribution limitations of 
11 CFR 110.1. The delegate committee shall report the expenditure as a 
contribution in-kind.
    (ii) The Federal candidate's authorized committee shall report the 
expenditure as a contribution pursuant to 11 CFR part 104.
    (iii) Such expenditures are not chargeable to the presidential 
candidate's expenditure limitation under 11 CFR 110.8 unless they were 
made with the cooperation or with the prior consent of, or in 
consultation with, or at the request or suggestion of, the candidate or 
any agent or authorized committee of such candidate.
    (4) For purposes of this paragraph, direct mail means any mailing(s) 
by commercial vendors or any mailing(s) made from lists that were not 
developed by the delegate committee or any participating delegate.
    (j) Affiliation of delegate committees with a Presidential 
candidate's authorized committee. (1) For purposes of the contribution 
limits of 11 CFR 110.1 and 110.2, a delegate committee shall be 
considered to be affiliated with a Presidential candidate's authorized 
committee if both such committees are established, financed, maintained 
or controlled by the same person, such as the Presidential candidate, or 
the same group of persons.
    (2) Factors the Commission may consider in determining whether a 
delegate committee is affiliated under paragraph (j)(1) of this section 
with a Presidential candidate's authorized committee may include, but 
are not limited to:
    (i) Whether the Presidential candidate or any other person 
associated with the Presidential authorized committee played a 
significant role in the formation of the delegate committee;
    (ii) Whether any delegate associated with a delegate committee is or 
has been a staff member of the Presidential authorized committee;
    (iii) Whether the committees have common or overlapping officers or 
employees;
    (iv) Whether the Presidential authorized committee provides funds or 
goods in a significant amount or on an ongoing basis to the delegate 
committee, such as through direct or indirect payments for 
administrative, fundraising, or other costs, but not including the 
transfer to a committee of its allocated share of proceeds jointly 
raised pursuant to 11 CFR 102.17 or 9034.8;
    (v) Whether the Presidential candidate or any other person 
associated with the Presidential authorized committee suggested, 
recommended or arranged for contributions to be made to the delegate 
committee;
    (vi) Similar patterns of contributions received by the committees;
    (vii) Whether one committee provides a mailing list to the other 
committee;
    (viii) Whether the Presidential authorized committee or any person 
associated with that committee provides ongoing administrative support 
to the other committee;
    (ix) Whether the Presidential authorized committee or any person 
associated with that committee directs or organizes the specific 
campaign activities of the delegate committee; and
    (x) Whether the Presidential authorized committee or any person 
associated with that committee files statements or reports on behalf of 
the delegate committee.
    (k) Affiliation between delegate committees. Delegate committees 
will be considered to be affiliated with each other if they meet the 
criteria for affiliation set forth at 11 CFR 100.5(g).

[52 FR 35534, Sept. 22, 1987]



PART 111--COMPLIANCE PROCEDURE (2 U.S.C. 437g, 437d(a))--Table of Contents




Sec.
111.1  Scope (2 U.S.C. 437g).
111.2  Computation of time.
111.3  Initiation of compliance matters (2 U.S.C. 437g(a)(1), (2)).
111.4  Complaints (2 U.S.C. 437g(a)(1)).
111.5  Initial complaint processing; notification (2 U.S.C. 437g(a)(1)).
111.6  Opportunity to demonstrate that no action should be taken on 
          complaint-generated matters (2 U.S.C. 437g(a)(1)).
111.7  General Counsel's recommendation on complaint-generated matters 
          (2 U.S.C. 437g(a)(1)).
111.8  Internally generated matters; referrals (2 U.S.C. 437g(a)(2)).
111.9  The reason to believe finding; notification (2 U.S.C. 
          437g(a)(2)).
111.10  Investigation (2 U.S.C. 437g(a)(2)).

[[Page 142]]

111.11  Written questions under order (2 U.S.C. 437d(a)(1)).
111.12  Subpoenas and subpoenas duces tecum; depositions (2 U.S.C. 
          437d(a) (3), (4)).
111.13  Service of subpoenas, orders and notifications (2 U.S.C. 437d(a) 
          (3), (4)).
111.14  Witness fees and mileage (2 U.S.C. 437d(a)(5)).
111.15  Motions to quash or modify a subpoena (2 U.S.C. 437d(a) (3), 
          (4)).
111.16  The probable cause to believe recommendation; briefing 
          procedures (2 U.S.C. 437g(a)(3)).
111.17  The probable cause to believe finding; notification (2 U.S.C. 
          437g(a)(4)).
111.18  Conciliation (2 U.S.C. 437g(a)(4)).
111.19  Civil proceedings (2 U.S.C. 437g(a)(6)).
111.20  Public disclosure of Commission action (2 U.S.C. 437g(a)(4)).
111.21  Confidentiality (2 U.S.C. 437g(a)(12)).
111.22  Ex parte communications.
111.23  Representation by counsel; notification.
111.24  Civil Penalties (2 U.S.C. 437g(a) (5), (6), (12), 28 U.S.C. 2461 
          nt.).

    Authority: 2 U.S.C. 437g, 437d(a), 438(a)(8); 28 U.S.C. 2461 nt..

    Source: 45 FR 15120, Mar. 7, 1980, unless otherwise noted.



Sec. 111.1  Scope (2 U.S.C. 437g).

    These regulations provide procedures for processing possible 
violations of the Federal Election Campaign Act of 1971, as amended (2 
U.S.C. 431, et seq.) and chapters 95 and 96 of the Internal Revenue Code 
of 1954 (26 U.S.C. 9001, et seq. and 9031 et seq.).



Sec. 111.2  Computation of time.

    (a) General rule. In computing any period of time prescribed or 
allowed by this part, the day of the act, event, or default from which 
the designated period of time begins to run shall not be included. The 
last day of the period so computed shall be included, unless it is a 
Saturday, a Sunday, or a legal holiday. As used in this section, the 
term legal holiday includes New Year's Day, President's Day, Memorial 
Day, Independence Day, Labor Day, Columbus Day, Veterans Day, 
Thanksgiving Day, Christmas Day, and any other day appointed as a 
holiday for employees of the United States by the President or the 
Congress of the United States.
    (b) Special rule for periods less than seven days. When the period 
of time prescribed or allowed is less than seven (7) days, intermediate 
Saturdays, Sundays, and legal holidays shall be excluded in the 
computation.
    (c) Special rule for service by mail. Whenever the Commission or any 
person has the right or is required to do some act within a prescribed 
period after the service of any paper by or upon the Commission or such 
person and the paper is served by or upon the Commission or such person 
by mail, three (3) days shall be added to the prescribed period.



Sec. 111.3  Initiation of compliance matters (2 U.S.C. 437g(a)(1), (2)).

    (a) Compliance matters may be initiated by a complaint or on the 
basis of information ascertained by the Commission in the normal course 
of carrying out its supervisory responsibilities.
    (b) Matters initiated by complaint are subject to the provisions of 
11 CFR 111.4 through 111.7. Matters initiated on the basis of 
information ascertained by the Commission in the normal course of 
carrying out its supervisory responsibilities are subject to the 
provisions of 11 CFR 111.8. All compliance matters are subject to the 
provisions of 11 CFR 111.2 and 111.9 through 111.23.



Sec. 111.4  Complaints (2 U.S.C. 437g(a)(1)).

    (a) Any person who believes that a violation of any statute or 
regulation over which the Commission has jurisdiction has occurred or is 
about to occur may file a complaint in writing to the General Counsel, 
Federal Election Commission, 999 E Street, NW., Washington, DC 20463. If 
possible, three (3) copies should be submitted.
    (b) A complaint shall comply with the following:
    (1) It shall provide the full name and address of the complainant; 
and
    (2) The contents of the complaint shall be sworn to and signed in 
the presence of a notary public and shall be notarized.
    (c) All statements made in a complaint are subject to the statutes 
governing perjury and to 18 U.S.C. 1001. The complaint should 
differentiate between statements based upon personal knowledge and 
statements based upon information and belief.

[[Page 143]]

    (d) The complaint should conform to the following provisions:
    (1) It should clearly identify as a respondent each person or entity 
who is alleged to have committed a violation;
    (2) Statements which are not based upon personal knowledge should be 
accompanied by an identification of the source of information which 
gives rise to the complainants belief in the truth of such statements;
    (3) It should contain a clear and concise recitation of the facts 
which describe a violation of a statute or regulation over which the 
Commission has jurisdiction; and
    (4) It should be accompanied by any documentation supporting the 
facts alleged if such documentation is known of, or available to, the 
complainant.

[45 FR 15120, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 111.5  Initial complaint processing; notification (2 U.S.C. 437g(a)(1)).

    (a) Upon receipt of a complaint, the General Counsel shall review 
the complaint for substantial compliance with the technical requirements 
of 11 CFR 111.4, and, if it complies with those requirements shall 
within five (5) days after receipt notify each respondent that the 
complaint has been filed, advise them of Commission compliance 
procedures, and enclose a copy of the complaint.
    (b) If a complaint does not comply with the requirements of 11 CFR 
111.4, the General Counsel shall so notify the complainant and any 
person(s) or entity(ies) identified therein as respondent(s), within the 
five (5) day period specified in 11 CFR 111.5(a), that no action shall 
be taken on the basis of that complaint. A copy of the complaint shall 
be enclosed with the notification to each respondent.



Sec. 111.6  Opportunity to demonstrate that no action should be taken on complaint-generated matters (2 U.S.C. 437g(a)(1)).

    (a) A respondent shall be afforded an opportunity to demonstrate 
that no action should be taken on the basis of a complaint by 
submitting, within fifteen (15) days from receipt of a copy of the 
complaint, a letter or memorandum setting forth reasons why the 
Commission should take no action.
    (b) The Commission shall not take any action, or make any finding, 
against a respondent other than action dismissing the complaint, unless 
it has considered such response or unless no such response has been 
served upon the Commission within the fifteen (15) day period specified 
in 11 CFR 111.6(a).



Sec. 111.7  General Counsel's recommendation on complaint-generated matters (2 U.S.C. 437g(a)(1)).

    (a) Following either the expiration of the fifteen (15) day period 
specified by 11 CFR 111.6(a) or the receipt of a response as specified 
by 11 CFR 111.6(a), whichever occurs first, the General Counsel may 
recommend to the Commission whether or not it should find reason to 
believe that a respondent has committed or is about to commit a 
violation of statutes or regulations over which the Commission has 
jurisdiction.
    (b) The General Counsel may recommend that the Commission find that 
there is no reason to believe that a violation has been committed or is 
about to be committed, or that the Commission otherwise dismiss a 
complaint without regard to the provisions of 11 CFR 111.6(a).



Sec. 111.8  Internally generated matters; referrals (2 U.S.C. 437g(a)(2)).

    (a) On the basis of information ascertained by the Commission in the 
normal course of carrying out its supervisory responsibilities, or on 
the basis of a referral from an agency of the United States or of any 
state, the General Counsel may recommend in writing that the Commission 
find reason to believe that a person or entity has committed or is about 
to commit a violation of statutes or regulations over which the 
Commission has jurisdiction.
    (b) If the Commission finds reason to believe that a violation has 
occurred or is about to occur the notification to respondent required by 
11 CFR 111.9(a) shall include a copy of a staff report setting forth the 
legal basis and the alleged facts which support the Commission's action.
    (c) Prior to taking any action pursuant to this section against any 
person

[[Page 144]]

who has failed to file a disclosure report required by 11 CFR 
104.5(a)(1)(iii) for the calendar quarter immediately preceding the 
election involved or by Sec. 104.5(a)(1)(i), the Commission shall notify 
such person of failure to file the required reports. If a satisfactory 
response is not received within four (4) business days, the Commission 
shall publish before the election the name of the person and the report 
or reports such person has failed to file.

[45 FR 15120, Mar. 7, 1980, as amended at 45 FR 21210, Apr. 1, 1980]



Sec. 111.9  The reason to believe finding; notification (2 U.S.C. 437g(a)(2)).

    (a) If the Commission, either after reviewing a complaint-generated 
recommendation as described in 11 CFR 111.7 and any response of a 
respondent submitted pursuant to 11 CFR 111.6, or after reviewing an 
internally-generated recommendation as described in 11 CFR 111.8, 
determines by an affirmative vote of four (4) of its members that it has 
reason to believe that a respondent has violated a statute or regulation 
over which the Commission has jurisdiction, its Chairman or Vice 
Chairman shall notify such respondent of the Commission's finding by 
letter, setting forth the sections of the statute or regulations alleged 
to have been violated and the alleged factual basis supporting the 
finding.
    (b) If the Commission finds no reason to believe, or otherwise 
terminates its proceedings, the General Counsel shall so advise both 
complainant and respondent by letter.



Sec. 111.10  Investigation (2 U.S.C. 437g(a)(2)).

    (a) An investigation shall be conducted in any case in which the 
Commission finds reason to believe that a violation of a statute or 
regulation over which the Commission has jurisdiction has occurred or is 
about to occur.
    (b) In its investigation, the Commission may utilize the provisions 
of 11 CFR 111.11 through 111.15. The investigation may include, but is 
not limited to, field investigations, audits, and other methods of 
information-gathering.



Sec. 111.11  Written questions under order (2 U.S.C. 437d(a)(1)).

    The Commission may authorize its Chairman or Vice Chairman to issue 
an order requiring any person to submit sworn written answers to written 
questions and may specify a date by which such answers must be 
submitted.



Sec. 111.12  Subpoenas and subpoenas duces tecum; depositions (2 U.S.C. 437d(a) (3), (4)).

    (a) The Commission may authorize its Chairman or Vice Chairman to 
issue subpoenas requiring the attendance and testimony of any person by 
deposition and to issue subpoenas duces tecum for the production of 
documentary or other tangible evidence in connection with a deposition 
or otherwise.
    (b) If oral testimony is ordered to be taken by deposition or 
documents are ordered to be produced, the subpoena shall so state and 
shall advise the deponent or person subpoenaed that all testimony will 
be under oath. A deposition may be taken before any person having the 
power to administer oaths.
    (c) The Federal Rules of Civil Procedure, Rule 30(e), shall govern 
the opportunity to review and sign depositions taken pursuant to this 
section.



Sec. 111.13  Service of subpoenas, orders and notifications (2 U.S.C. 437d(a) (3), (4)).

    (a) Service of a subpoena, order or notification upon a person named 
therein shall be made by delivering a copy to that person in the manner 
described by 11 CFR 111.13 (b), (c), and (d). In the case of subpoenas, 
fees for one day's attendance and mileage shall be tendered as specified 
in 11 CFR 111.14.
    (b) Whenever service is to be made upon a person who has advised the 
Commission of representation by an attorney pursuant to 11 CFR 111.23, 
the service shall be made upon the attorney by any of the methods 
specified in 11 CFR 111.13(c).
    (c) Delivery of subpoenas, orders and notifications to a natural 
person may be made by handing a copy to the person, or leaving a copy at 
his or her office with the person in charge thereof, by leaving a copy 
at his or her dwelling place or usual place of abode with some person of 
suitable age and discretion

[[Page 145]]

residing therein, or by mailing a copy by registered or certified mail 
to his or her last known address, or by any other method whereby actual 
notice is given.
    (d) When the person to be served is not a natural person delivery of 
subpoenas, orders and notifications may be made by mailing a copy by 
registered or certified mail to the person at its place of business or 
by handing a copy to a registered agent for service, or to any officer, 
director, or agent in charge of any office of such person, or by mailing 
a copy by registered or certified mail to such representative at his or 
her last known address, or by any other method whereby actual notice is 
given.



Sec. 111.14  Witness fees and mileage (2 U.S.C. 437d(a)(5)).

    Witnesses subpoenaed to appear for depositions shall be paid the 
same fees and mileage as witnesses in the courts of the United States. 
Such fees may be tendered at the time the witness appears for such 
deposition, or within a reasonable time thereafter.



Sec. 111.15  Motions to quash or modify a subpoena (2 U.S.C. 437d(a) (3), (4)).

    (a) Any person to whom a subpoena is directed may, prior to the time 
specified therein for compliance, but in no event more than 5 days after 
the date of receipt of such subpoena, apply to the Commission to quash 
or modify such subpoena, accompanying such application with a brief 
statement of the reasons therefor. Motions to quash shall be filed with 
the General Counsel, Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463. If possible, three (3) copies should be submitted.
    (b) The Commission may deny the application or quash the subpoena or 
modify the subpoena.
    (c) The person subpoenaed and the General Counsel may agree to 
change the date, time, or place of a deposition or for the production of 
documents without affecting the force and effect of the subpoena, but 
such agreements shall be confirmed in writing.

[45 FR 15120, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 111.16  The probable cause to believe recommendation; briefing procedures (2 U.S.C. 437g(a)(3)).

    (a) Upon completion of the investigation, the General Counsel shall 
prepare a brief setting forth his or her position on the factual and 
legal issues of the case and containing a recommendation on whether or 
not the Commission should find probable cause to believe that a 
violation has occurred or is about to occur.
    (b) The General Counsel shall notify each respondent of the 
recommendation and enclose a copy of his or her brief.
    (c) Within fifteen (15) days from receipt of the General Counsel's 
brief, respondent may file a brief with the Commission Secretary, 
Federal Election Commission, 999 E Street, NW., Washington, DC 20463, 
setting forth respondent's position on the factual and legal issues of 
the case. If possible, ten (10) copies of such brief should be filed 
with the Commission Secretary and three (3) copies should be submitted 
to the General Counsel, Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463.
    (d) After reviewing the respondent's brief, the General Counsel 
shall advise the Commission in writing whether he or she intends to 
proceed with the recommendation or to withdraw the recommendation from 
Commission consideration.

[45 FR 15120, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 111.17  The probable cause to believe finding; notification (2 U.S.C. 437g(a)(4)).

    (a) If the Commission, after having found reason to believe and 
after following the procedures set forth in 11 CFR 111.16, determines by 
an affirmative vote of four (4) of its members that there is probable 
cause to believe that a respondent has violated a statute or regulation 
over which the Commission has jurisdiction, the Commission shall 
authorize the General Counsel to so notify the respondent by letter.
    (b) If the Commission finds no probable cause to believe or 
otherwise orders a termination of Commission proceedings, it shall 
authorize the General

[[Page 146]]

Counsel to so notify both respondent and complainant by letter.



Sec. 111.18  Conciliation (2 U.S.C. 437g(a)(4)).

    (a) Upon a Commission finding of probable cause to believe, the 
Office of General Counsel shall attempt to correct or prevent the 
violation by informal methods of conference conciliation and persuasion, 
and shall attempt to reach a tentative conciliation agreement with the 
respondent.
    (b) A conciliation agreement is not binding upon either party unless 
and until it is signed by the respondent and by the General Counsel upon 
approval by the affirmative vote of four (4) members of the Commission.
    (c) If the probable cause to believe finding is made within forty-
five days prior to any election, such conciliation attempt shall 
continue for at least fifteen (15) days from the date of such finding. 
In all other cases such attempts by the Commission shall continue for at 
least thirty (30) days, not to exceed ninety (90) days.
    (d) Nothing in these regulations shall be construed to prevent the 
Commission from entering into a conciliation agreement with a respondent 
prior to a Commission finding of probable cause if a respondent 
indicates by letter to the General Counsel a desire to enter into 
negotiations directed towards reaching such a conciliation agreement. 
However, the Commission is not required to enter into any negotiations 
directed towards reaching a conciliation agreement unless and until it 
makes a finding of probable cause to believe. Any conciliation agreement 
reached under this subsection is subject to the provisions of subsection 
(b) of this section and shall have the same force and effect as a 
conciliation agreement reached after a Commission finding of probable 
cause to believe.
    (e) If a conciliation agreement is reached between the Commission 
and the respondent, the General Counsel shall send a copy of the signed 
agreement to both complainant and respondent.



Sec. 111.19  Civil proceedings (2 U.S.C. 437g(a)(6)).

    (a) If no conciliation agreement is finalized within the applicable 
minimum period specified by 11 CFR 111.18(c) the General Counsel may 
recommend to the Commission that the Commission authorize a civil action 
for relief in an appropriate court of the United States.
    (b) Upon recommendation of the General Counsel, the Commission may, 
by an affirmative vote of four (4) of its members, authorize the General 
Counsel to commence a civil action for relief in an appropriate court of 
the United States.
    (c) The provisions of 11 CFR 111.18(c) shall not preclude the 
Commission upon request of a respondent, from entering into a 
conciliation agreement even after a recommendation to file a civil 
action has been made pursuant to this section. Any conciliation 
agreement reached under this subsection is subject to the provisions of 
11 CFR 111.18(b) and shall have the same force and effect as a 
conciliation agreement reached under 11 CFR 111.18(c).



Sec. 111.20  Public disclosure of Commission action (2 U.S.C. 437g(a)(4)).

    (a) If the Commission makes a finding of no reason to believe or no 
probable cause to believe or otherwise terminates its proceedings, it 
shall make public such action and the basis therefor no later than 
thirty (30) days from the date on which the required notifications are 
sent to complainant and respondent.
    (b) If a conciliation agreement is finalized, the Commission shall 
make public such conciliation agreement forthwith.



Sec. 111.21  Confidentiality (2 U.S.C. 437g(a)(12)).

    (a) Except as provided in 11 CFR 111.20, no complaint filed with the 
Commission, nor any notification sent by the Commission, nor any 
investigation conducted by the Commission, nor any findings made by the 
Commission shall be made public by the Commission or by any person or 
entity without the written consent of the respondent with respect to 
whom the complaint

[[Page 147]]

was filed, the notification sent, the investigation conducted, or the 
finding made.
    (b) Except as provided in 11 CFR 111.20(b), no action by the 
Commission or by any person, and no information derived in connection 
with conciliation efforts pursuant to 11 CFR 111.18, may be made public 
by the Commission except upon a written request by respondent and 
approval thereof by the Commission.
    (c) Nothing in these regulations shall be construed to prevent the 
introduction of evidence in the courts of the United States which could 
properly be introduced pursuant to the Federal Rules of Evidence or 
Federal Rules of Civil Procedure.



Sec. 111.22  Ex parte communications.

    (a) In order to avoid the possibility of prejudice, real or 
apparent, to the public interest in enforcement actions pending before 
the Commission pursuant to 11 CFR part 111, except to the extent 
required for the disposition of ex parte matters as required by law (for 
example, during the normal course of an investigation or a conciliation 
effort), no interested person outside the agency shall make or cause to 
be made to any Commissioner or any member of any Commissioner's staff 
any ex parte communication relative to the factual or legal merits of 
any enforcement action, nor shall any Commissioner or member of any 
Commissioner's staff make or entertain any such ex parte communications.
    (b) The prohibition of this regulation shall apply from the time a 
complaint is filed with the Commission pursuant to 11 CFR part 111 or 
from the time that the Commission determines on the basis of information 
ascertained in the normal course of its supervisory responsibilities 
that it has reason to believe that a violation has occurred or may occur 
pursuant to 11 CFR part 111, and remains in force until the Commission 
has finally concluded all action with respect to the enforcement matter 
in question.
    (c) Nothing in this section shall be construed to prohibit contact 
between a respondent or respondent's attorney and any attorney or staff 
member of the Office of General Counsel in the course of representing 
the Commission or the respondent with respect to an enforcement 
proceeding or civil action. No statement made by such a Commission 
attorney or staff member during any such communication shall bind or 
estop the Commission in any way.



Sec. 111.23  Representation by counsel; notification.

    (a) If a respondent wishes to be represented by counsel with regard 
to any matter pending before the Commission, respondent shall so advise 
the Commission by sending a letter of representation signed by the 
respondent, which letter shall state the following:
    (1) The name, address, and telephone number of the counsel;
    (2) A statement authorizing such counsel to receive any and all 
notifications and other communications from the Commission on behalf of 
respondent.
    (b) Upon receipt of a letter of representation, the Commission shall 
have no contact with respondent except through the designated counsel 
unless authorized in writing by respondent.



Sec. 111.24  Civil Penalties (2 U.S.C. 437g(a) (5), (6), (12), 28 U.S.C. 2461 nt.).

    (a) Except as provided in paragraph (b) of this section, a civil 
penalty negotiated by the Commission or imposed by a court for a 
violation of the Act or chapter 95 or 96 of title 26 shall not exceed 
the greater of $5,500 or an amount equal to any contribution or 
expenditure involved in the violation. In the case of a knowing and 
willful violation, the civil penalty shall not exceed the greater of 
$11,000 or an amount equal to 200% of any contribution or expenditure 
involved in the violation.
    (b) Any Commission member or employee, or any other person, who in 
violation of 2 U.S.C. 437g(a)(12)(A) makes public any notification or 
investigation under 2 U.S.C. 437g without receiving the written consent 
of the person receiving such notification, or the person with respect to 
whom such investigation is made, shall be fined not more than $2,200. 
Any such member

[[Page 148]]

employee, or other person who knowingly and willfully violates this 
provision shall be fined not more than $5,500.

[62 FR 11317, Mar. 12, 1997; 62 FR 18167, Apr. 14, 1997]



PART 112--ADVISORY OPINIONS (2 U.S.C. 437f)--Table of Contents




Sec.
112.1  Requests for advisory opinions (2 U.S.C. 437f(a)(1)).
112.2  Public availability of requests (2 U.S.C. 437f(d)).
112.3  Written comments on requests (2 U.S.C. 437f(d)).
112.4  Issuance of advisory opinions (2 U.S.C. 437f (a) and (b)).
112.5  Reliance on advisory opinions (2 U.S.C. 437f(c)).
112.6  Reconsideration of advisory opinions.

    Authority: 2 U.S.C. 437f, 438(a)(8).

    Source: 45 FR 15123, Mar. 7, 1980, unless otherwise noted.



Sec. 112.1  Requests for advisory opinions (2 U.S.C. 437f(a)(1)).

    (a) Any person may request in writing an advisory opinion concerning 
the application of the Act, chapters 95 or 96 of the Internal Revenue 
Code of 1954, or any regulation prescribed by the Commission. An 
authorized agent of the requesting person may submit the advisory 
opinion request, but the agent shall disclose the identity of his or her 
principal.
    (b) The written advisory opinion request shall set forth a specific 
transaction or activity that the requesting person plans to undertake or 
is presently undertaking and intends to undertake in the future. 
Requests presenting a general question of interpretation, or posing a 
hypothetical situation, or regarding the activities of third parties, do 
not qualify as advisory opinion requests.
    (c) Advisory opinion requests shall include a complete description 
of all facts relevant to the specific transaction or activity with 
respect to which the request is made.
    (d) The Office of General Counsel shall review all requests for 
advisory opinions submitted under 11 CFR 112.1. If the Office of General 
Counsel determines that a request for an advisory opinion is incomplete 
or otherwise not qualified under 11 CFR 112.1, it shall, within 10 
calendar days of receipt of such request, notify the requesting person 
and specify the deficiencies in the request.
    (e) Advisory opinion requests should be sent to the Federal Election 
Commission, Office of General Counsel, 999 E Street, NW., Washington, DC 
20463.
    (f) Upon receipt by the Commission, each request which qualifies as 
an advisory opinion request (AOR) under 11 CFR 112.1 shall be assigned 
an AOR number for reference purposes.

[45 FR 15123, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 112.2  Public availability of requests (2 U.S.C. 437f(d)).

    (a) Advisory opinion requests which qualify under 11 CFR 112.1 shall 
be made public at the Commission promptly upon their receipt.
    (b) A copy of the original request and any supplements thereto, 
shall be available for public inspection and purchase at the Public 
Disclosure Division of the Commission.



Sec. 112.3  Written comments on requests (2 U.S.C. 437f(d)).

    (a) Any interested person may submit written comments concerning 
advisory opinion requests made public at the Commission.
    (b) The written comments shall be submitted within 10 calendar days 
following the date the request is made public at the Commission. 
However, if the 10th calendar day falls on a Saturday, Sunday, or 
Federal holiday, the 10 day period ends at the close of the business day 
next following the weekend or holiday. Additional time for submission of 
written comments may be granted upon written request for an extension by 
the person who wishes to submit comments or may be granted by the 
Commission without an extension request.
    (c) Comments on advisory opinion requests should refer to the AOR 
number of the request, and statutory references should be to the United 
States Code citations, rather than to Public Law citations.
    (d) Written comments and requests for additional time to comment 
shall

[[Page 149]]

be sent to the Federal Election Commission, Office of General Counsel, 
999 E Street, NW., Washington, DC 20463.
    (e) Before it issues an advisory opinion the Commission shall accept 
and consider all written comments submitted within the 10 day comment 
period or any extension thereof.

[45 FR 15123, Mar. 7, 1980, as amended at 50 FR 50778, Dec. 12, 1985]



Sec. 112.4  Issuance of advisory opinions (2 U.S.C. 437f (a) and (b)).

    (a) Within 60 calendar days after receiving an advisory opinion 
request that qualifies under 11 CFR 112.1, the Commission shall issue to 
the requesting person a written advisory opinion or shall issue a 
written response stating that the Commission was unable to approve an 
advisory opinion by the required affirmative vote of 4 members.
    (b) The 60 calendar day period of 11 CFR 112.4(a) is reduced to 20 
calendar days for an advisory opinion request qualified under 11 CFR 
112.1 provided the request:
    (1) Is submitted by any candidate, including any authorized 
committee of the candidate (or agent of either), within the 60 calendar 
days preceding the date of any election for Federal office in which the 
candidate is seeking nomination or election; and
    (2) Presents a specific transaction or activity related to the 
election that may invoke the 20 day period if the connection is 
explained in the request.
    (c) The 60 day and 20 day periods referred to in 11 CFR 112.4 (a) 
and (b) only apply when the Commission has received a qualified and 
complete advisory opinion request under 11 CFR 112.1, and when the 60th 
or 20th day occurs on a Saturday, Sunday or Federal holiday, the 
respective period ends at the close of the business day next following 
the weekend or holiday.
    (d) The Commission may issue advisory opinions pertaining only to 
the Federal Election Campaign Act of 1971, as amended, chapters 95 or 96 
of the Internal Revenue Code of 1954, or rules or regulations duly 
prescribed under those statutes.
    (e) Any rule of law which is not stated in the Act or in chapters 95 
or 96 of the Internal Revenue Code of 1954, or in a regulation duly 
prescribed by the Commission, may be initially proposed only as a rule 
or regulation pursuant to procedures established in 2 USC 438(d) or 26 
USC 9009(c) and 9039(c) as applicable.
    (f) No opinion of an advisory nature may be issued by the Commission 
or any of its employees except in accordance with 11 CFR part 112; 
however, this limitation does not preclude distribution by the 
Commission of information consistent with the Act and chapters 95 or 96 
of the Internal Revenue Code of 1954.
    (g) When issued by the Commission, each advisory opinion or other 
response under 11 CFR 112.4(a) shall be made public and sent by mail, or 
personally delivered to the person who requested the opinion.



Sec. 112.5  Reliance on advisory opinions (2 U.S.C. 437f(c)).

    (a) An advisory opinion rendered by the Commission under 11 CFR part 
112 may be relied upon by:
    (1) Any person involved in the specific transaction or activity with 
respect to which such advisory opinion is rendered, and
    (2) Any person involved in any specific transaction or activity 
which is indistinguishable in all its material aspects from the 
transaction or activity with respect to which such advisory opinion is 
rendered.
    (b) Notwithstanding any other provision of law, any person who 
relies upon an advisory opinion in accordance with 11 CFR 112.5(a) and 
who acts in good faith in accordance with that advisory opinion shall 
not, as a result of any such act, be subject to any sanction provided by 
the Federal Election Campaign Act of 1971, as amended, or by chapters 95 
or 96 of the Internal Revenue Code of 1954.



Sec. 112.6  Reconsideration of advisory opinions.

    (a) The Commission may reconsider an advisory opinion previously 
issued if the person to whom the opinion was issued submits a written 
request for reconsideration within 30 calendar days of receipt of the 
opinion and if, upon the motion of a Commissioner who voted with the 
majority that originally approved the opinion, the Commission

[[Page 150]]

adopts the motion to reconsider by the affirmative vote of 4 members.
    (b) The Commission may reconsider an advisory opinion previously 
issued if, upon the motion of a Commissioner who voted with the majority 
that originally approved the opinion and within 30 calendar days after 
the date the Commission approved the opinion, the Commission adopts the 
motion to reconsider by the affirmative vote of 4 members.
    (c) In the event an advisory opinion is reconsidered pursuant to 11 
CFR 112.6(b), the action taken in good faith reliance on that advisory 
opinion by the person to whom the opinion was issued shall not result in 
any sanction provided by the Act or chapters 95 or 96 of the Internal 
Revenue Code of 1954. 11 CFR 112.6(c) shall not be effective after the 
date when the person to whom the advisory opinion was issued has 
received actual notice of the Commission's decision to reconsider that 
advisory opinion.
    (d) Adoption of a motion to reconsider vacates the advisory opinion 
to which it relates.



PART 113--EXCESS CAMPAIGN FUNDS AND FUNDS DONATED TO SUPPORT FEDERAL OFFICEHOLDER ACTIVITIES (2 U.S.C. 439a)--Table of Contents




Sec.
113.1  Definitions (2 U.S.C. 439a).
113.2  Use of funds (2 U.S.C. 439a).
113.3  Deposits of funds donated to a Federal or State officeholder (2 
          U.S.C. 432(h)).
113.4  Contribution and expenditure limitations (2 U.S.C. 441a).

    Authority: 2 U.S.C. 432(h), 438(a)(8), 439a, 441a.

    Source: 45 FR 15124, Mar. 7, 1980, unless otherwise noted.



Sec. 113.1  Definitions (2 U.S.C. 439a).

    When used in this part--
    (a) Funds donated. Funds donated means all funds, including, but not 
limited to, gifts, loans, advances, credits or deposits of money which 
are donated for the purpose of supporting the activities of a Federal or 
State officeholder; but does not mean funds appropriated by Congress, a 
State legislature, or another similar public appropriating body, or 
personal funds of the officeholder donated to an account containing only 
those personal funds.
    (b) Office account. Office account means an account established for 
the purposes of supporting the activities of a Federal or State 
officeholder which contains excess campaign funds and funds donated, but 
does not include an account used exclusively for funds appropriated by 
Congress, a State legislature, or another similar public appropriating 
body, or an account of the officeholder which contains only the personal 
funds of the officeholder, or an account containing only appropriated 
funds and only personal funds of the officeholder.
    (c) Federal officeholder. Federal officeholder means an individual 
elected to or serving in the office of President or Vice President of 
the United States; or a Senator or a Representative in, or Delegate or 
Resident Commissioner to, the Congress of the United States.
    (d) State officeholder. State officeholder means an individual 
elected to or serving in any elected public office within a State of the 
United States, the District of Columbia, the Commonwealth of Puerto Rico 
or any subdivision thereof.
    (e) Excess campaign funds. Excess campaign funds means amounts 
received by a candidate as contributions which he or she determines are 
in excess of any amount necessary to defray his or her campaign 
expenditures.
    (f) Qualified Member. Qualified Member means an individual who was 
serving as a Senator or Representative in, or Delegate or Resident 
Commissioner to, Congress, on January 8, 1980.
    (g) Personal use. Personal use means any use of funds in a campaign 
account of a present or former candidate to fulfill a commitment, 
obligation or expense of any person that would exist irrespective of the 
candidate's campaign or duties as a Federal officeholder.
    (1)(i) Personal use includes but is not limited to the use of funds 
in a campaign account for:
    (A) Household food items or supplies;
    (B) Funeral, cremation or burial expenses;

[[Page 151]]

    (C) Clothing, other than items of de minimis value that are used in 
the campaign, such as campaign ``T-shirts'' or caps with campaign 
slogans;
    (D) Tuition payments, other than those associated with training 
campaign staff;
    (E) Mortgage, rent or utility payments--
    (1) For any part of any personal residence of the candidate or a 
member of the candidate's family; or
    (2) For real or personal property that is owned by the candidate or 
a member of the candidate's family and used for campaign purposes, to 
the extent the payments exceed the fair market value of the property 
usage;
    (F) Admission to a sporting event, concert, theater or other form of 
entertainment, unless part of a specific campaign or officeholder 
activity;
    (G) Dues, fees or gratuities at a country club, health club, 
recreational facility or other nonpolitical organization, unless they 
are part of the costs of a specific fundraising event that takes place 
on the organization's premises; and
    (H) Salary payments to a member of the candidate's family, unless 
the family member is providing bona fide services to the campaign. If a 
family member provides bona fide services to the campaign, any salary 
payment in excess of the fair market value of the services provided is 
personal use.
    (ii) The Commission will determine, on a case by case basis, whether 
other uses of funds in a campaign account fulfill a commitment, 
obligation or expense that would exist irrespective of the candidate's 
campaign or duties as a Federal officeholder, and therefore are personal 
use. Examples of such other uses include:
    (A) Legal expenses;
    (B) Meal expenses;
    (C) Travel expenses, including subsistence expenses incurred during 
travel. If a committee uses campaign funds to pay expenses associated 
with travel that involves both personal activities and campaign or 
officeholder related activities, the incremental expenses that result 
from the personal activities are personal use, unless the person(s) 
benefiting from this use reimburse(s) the campaign account within thirty 
days for the amount of the incremental expenses; and
    (D) Vehicle expenses, unless they are a de minimis amount. If a 
committee uses campaign funds to pay expenses associated with a vehicle 
that is used for both personal activities beyond a de minimus amount and 
campaign or officerholder related activities, the portion of the vehicle 
expenses associated with the personal activities is personal use, unless 
the person(s) using the vehicle for personal activities reimburse(s) the 
campaign account within thirty days for the expenses associated with the 
personal activities.
    (2) Charitable donations. Donations of campaign funds or assets to 
an organization described in section 170(c) of Title 26 of the United 
States Code are not personal use, unless the candidate receives 
compensation from the organization before the organization has expended 
the entire amount donated for purposes unrelated to his or her personal 
benefit.
    (3) Transfers of campaign assets. The transfer of a campaign 
committee asset is not personal use so long as the transfer is for fair 
market value. Any depreciation that takes place before the transfer must 
be allocated between the committee and the purchaser based on the useful 
life of the asset.
    (4) Gifts. Gifts of nominal value and donations of a nominal amount 
made on a special occasion such as a holiday, graduation, marriage, 
retirement, or death are not personal use, unless made to a member of 
the candidate's family.
    (5) Political or officially connected expenses. The use of campaign 
funds for an expense that would be a political expense under the rules 
of the United States House of Representatives or an officially connected 
expense under the rules of the United States Senate is not personal use 
to the extent that the expense is an expenditure under 11 CFR 100.8 or 
an ordinary and necessary expense incurred in connection with the duties 
of a holder of Federal office. Any use of funds that would be personal 
use under 11 CFR 113.1(g)(1) will not be considered an expenditure under 
11 CFR 100.8 or an ordinary and necessary expense incurred in connection 
with the duties of a holder of Federal office.

[[Page 152]]

    (6) Third party payments. Notwithstanding that the use of funds for 
a particular expense would be a personal use under this section, payment 
of that expense by any person other than the candidate or the campaign 
committee shall be a contribution under 11 CFR 100.7 to the candidate 
unless the payment would have been made irrespective of the candidacy. 
Examples of payments considered to be irrespective of the candidacy 
include, but are not limited to, situations where--
    (i) The payment is a donation to a legal expense trust fund 
established in accordance with the rules of the United States Senate or 
the United State House of Representatives;
    (ii) The payment is made from funds that are the candidate's 
personal funds as defined in 11 CFR 110.10(b), including an account 
jointly held by the candidate and a member of the candidate's family;
    (iii) Payments for that expense were made by the person making the 
payment before the candidate became a candidate. Payments that are 
compensation shall be considered contributions unless--
    (A) The compensation results from bona fide employment that is 
genuinely independent of the candidacy;
    (B) The compensation is exclusively in consideration of services 
provided by the employee as part of this employment; and
    (C) The compensation does not exceed the amount of compensation 
which would be paid to any other similarly qualified person for the same 
work over the same period of time.
    (7) Members of the candidate's family. For the purposes of section 
113.1(g), the candidate's family includes:
    (i) The spouse of the candidate;
    (ii) Any child, step-child, parent, grandparent, sibling, half-
sibling or step-sibling of the candidate or the candidate's spouse;
    (iii) The spouse of any child, step-child, parent, grandparent, 
sibling, half-sibling or step-sibling of the candidate; and
    (iv) A person who has a committed relationship with the candidate, 
such as sharing a household and having mutual responsibility for each 
other's personal welfare or living expenses.

[45 FR 15124, Mar. 7, 1980, as amended at 56 FR 34126, July 25, 1991; 60 
FR 7874, Feb. 9, 1995]



Sec. 113.2  Use of funds (2 U.S.C. 439a).

    Excess campaign funds and funds donated:
    (a) May be used to defray any ordinary and necessary expenses 
incurred in connection with the recipient's duties as a holder of 
Federal office, if applicable, including:
    (1) The costs of travel by the recipient Federal officeholder and an 
accompanying spouse to participate in a function directly connected to 
bona fide official responsibilities, such as a fact-finding meeting or 
an event at which the officeholder's services are provided through a 
speech or appearance in an official capacity; and
    (2) The costs of winding down the office of a former Federal 
officeholder for a period of 6 months after he or she leaves office; or
    (b) May be contributed to any organization described in section 
170(c) of Title 26, of the United States Code; or
    (c) May be transferred without limitation to any national, State, or 
local committee of any political party; or
    (d) May be used for any other lawful purpose, except that, other 
than as set forth in paragraph (e) of this section, no such amounts may 
be converted by any person to any personal use, other than: To defray 
any ordinary and necessary expenses incurred in connection with his or 
her duties as a holder of Federal office, or to repay to a candidate any 
loan the proceeds of which were used in connection with his or her 
campaign.
    (e)(1) Except as limited by paragraph (e)(5) of this section, a 
qualified Member who serves in the 102d or an earlier Congress may 
convert to personal use no more than the unobligated balance of excess 
funds as of November 30, 1989. This unobligated balance shall be 
calculated under either paragraph (e)(1) (i) or (ii) of this section.
    (i) Cash assets. The Member may convert any excess campaign or 
donated funds in an amount up to the Member's authorized committee(s)' 
cash on hand, determined under 11 CFR 104.3(a)(1), as

[[Page 153]]

of November 30, 1989, less the committee(s)' total outstanding debts as 
of that date.
    (ii) Cash Plus Nonliquid Assets. (A) The Member may convert 
unliquidated committee assets held by his or her authorized committee(s) 
on November 30, 1989; or the value of such assets may be added to the 
value of the committee(s)' cash assets under paragraph (e)(1)(i) of this 
section to determine the amount which is eligible for conversion. In 
either case, prior to conversion, the committee shall amend its 1989 
year end reports to indicate, as memo entries to Schedule A, the assets 
to be converted. These amendments shall list each asset, give its date 
of acquisition, its fair market value as of November 30, 1989, and a 
brief narrative description of how this value was ascertained. The 
committee shall also disclose the disposition made of each such asset, 
including its fair market value on the date of sale or other 
disposition, in its termination report, unless the asset was sold or 
otherwise disposed of during an earlier period and included in the 
report covering that period.
    (B) The Member may add the value of debts and loans reported as owed 
to the Member's authorized committee(s) as of November 30, 1989, and 
itemized on the committee(s)' year end reports for 1989, to the 
unobligated balance, provided that such receivables are actually 
collected by the committee(s) prior to their termination.
    (C) The Member may add to the unobligated balance the value of 
vendor credits and deposit refunds to which authorized campaign 
committee(s) are entitled, if these receivables are itemized on Schedule 
C or D of the committee(s)' 1989 year end reports or in amendment(s) 
thereto.
    (2) If the unobligated balance subsequently falls below its November 
30, 1989, level, a qualified Member may use contributions lawfully 
received or other lawful committee income received after that date to 
restore the account up to that level.
    (3) A qualified Member may convert committee assets which were not 
held on November 30, 1989, to personal use; however, the fair market 
value of such assets at the time of conversion shall be counted against 
the unobligated balance.
    (4) Under no circumstances may an amount greater than the 
unobligated balance on November 30, 1989, be converted to personal use. 
Should money from subsequent contributions, other committee income, and/
or the sale of campaign assets exceed the amount needed to restore the 
unobligated balance to its November 30, 1989, level, such additional 
funds shall not be converted to personal use but may be used for the 
purposes set forth in paragraphs (a), (b), and (c) of this section.
    (5) 103d Congress or later Congress: A qualified Member who serves 
in the 103d Congress or a later Congress may not convert to personal use 
any excess campaign or donated funds, as of the first day of such 
service.
    (f) Nothing in this section modifies or supersedes other Federal 
statutory restrictions or relevant State laws which may apply to the use 
of excess campaign or donated funds by candidates or Federal 
officeholders.

[45 FR 15124, Mar. 7, 1980, as amended at 56 FR 34126, July 25, 1991; 60 
FR 7875, Feb. 9, 1995]



Sec. 113.3  Deposits of funds donated to a Federal or State officeholder (2 U.S.C. 432(h)).

    All funds donated to a federal officeholder, or State officeholder 
who is a candidate for federal office, shall be deposited into one of 
the following accounts:
    (a) An account of the officeholder's principal campaign committee or 
other authorized committee pursuant to 11 CFR part 103;
    (b) An account to which only funds donated to an individual to 
support his or her activities as a holder of federal office are 
deposited (including an office account).



Sec. 113.4  Contribution and expenditure limitations (2 U.S.C. 441a).

    (a) Any contributions to, or expenditures from an office account 
which are made for the purpose of influencing a federal election shall 
be subject to 2 U.S.C. 441a and 11 CFR part 110 of these regulations.
    (b) If any treasury funds of a corporation or labor organization are 
donated

[[Page 154]]

to an office account, no funds from that office account may be 
transferred to a political committee account or otherwise used in 
connection with a federal election.



PART 114--CORPORATE AND LABOR ORGANIZATION ACTIVITY--Table of Contents




Sec.
114.1  Definitions.
114.2  Prohibitions on contributions and expenditures.
114.3  Disbursements for communications to the restricted class in 
          connection with a Federal election.
114.4  Disbursements for communications beyond the restricted class in 
          connection with a Federal election.
114.5  Separate segregated funds.
114.6  Twice yearly solicitations.
114.7  Membership organizations, cooperatives, or corporations without 
          capital stock.
114.8  Trade associations.
114.9  Use of corporate or labor organization facilities and means of 
          transportation.
114.10  Nonprofit corporations exempt from the prohibition on 
          independent expenditures.
114.11  Employee participation plans.
114.12  Incorporation of political committees; payment of fringe 
          benefits.
114.13  Use of meeting rooms.

    Authority: 2 U.S.C. 431(8)(B), 431(9)(B), 432, 437d(a)(8), 
438(a)(8), and 441b.



Sec. 114.1  Definitions.

    (a) For purposes of part 114 and section 12(h) of the Public Utility 
Holding Company Act (15 U.S.C. 79l(h))--
    (1) The terms contribution and expenditure shall include any direct 
or indirect payment, distribution, loan, advance, deposit, or gift of 
money, or any services, or anything of value (except a loan of money by 
a State bank, a federally chartered depository institution (including a 
national bank) or a depository institution whose deposits and accounts 
are insured by the Federal Deposit Insurance Corporation or the National 
Credit Union Administration, if such loan is made in accordance with 11 
CFR 100.7(b)(11)) to any candidate, political party or committee, 
organization, or any other person in connection with any election to any 
of the offices referred to in 11 CFR 114.2 (a) or (b) as applicable.
    (2) The terms contribution and expenditure shall not include--
    (i) Communications by a corporation to its stockholders and 
executive or administrative personnel and their families or by a labor 
organization to its members and executive or administrative personnel, 
and their families, on any subject;
    (ii) Registration and get-out-the-vote campaigns by a corporation 
aimed at its stockholders and executive or administrative personnel, and 
their families, or by a labor organization aimed at its members and 
executive or administrative personnel, and their families, as described 
in 11 CFR 114.3;
    (iii) The establishment, administration, and solicitation of 
contributions to a separate segregated fund to be utilized for political 
purposes by a corporation, labor organization, membership organization, 
cooperative, or corporation without capital stock;
    (iv) [Reserved]
    (v) The sale of any food or beverage by a corporate vendor for use 
in a candidate's campaign or for use by a political committee of a 
political party at a charge less than the normal of comparable 
commercial rate, if the charge is at least equal to the costs of such 
food or beverage to the vendor, to the extent that: The aggregate value 
of such discount by the vendor on behalf of a single candidate does not 
exceed $1,000 with respect to any single election; and on behalf of all 
political committees of each political party does not exceed $2,000 in a 
calendar year.
    (vi) The payment for legal or accounting services rendered to or on 
behalf of any political committee of a political party other than 
services attributable to activities which directly further the election 
of a designated candidate or candidates for Federal office if the 
corporation or labor organization paying for the services is the regular 
employer of the individual rendering the services. This exclusion shall 
not be applicable if additional employees are hired for the purpose of 
rendering services or if additional employees are hired in order to make 
regular employees available;
    (vii) The payment for legal or accounting services rendered to or on 
behalf of an authorized committee of a

[[Page 155]]

candidate or any other political committee solely for the purpose of 
ensuring compliance with this Act or chapter 95 or 96 of the Internal 
Revenue Code of 1954 if the corporation or labor organization paying for 
the services is the regular employer of the individual rendering the 
services, but amounts paid or incurred for these services shall be 
reported in accordance with part 104. This exclusion shall not be 
applicable if additional employees are hired for the purpose of 
rendering services or if additional employees are hired in order to make 
regular employees available;
    (viii) Activity permitted under 11 CFR 9008.9, 9008.52 and 9008.53 
with respect to a presidential nominating convention;
    (ix) A gift, subscription, loan, advance, or deposit of money or 
anything of value to a national committee of a political party or a 
State committee of a political party which is specifically designated 
for the purpose of defraying any cost incurred with respect to the 
construction or purchase of any office facility which is not acquired 
for the purpose of influencing the election of any candidate in any 
particular election for Federal office, except that any gift, 
subscription, loan, advace, or deposit of money or anything of value, 
and any such cost, shall be reported in accordance with 11 CFR 104.3(g); 
or
    (x) Any activity which is specifically permitted by part 114.
    (b) Establishment, administration, and solicitation costs means the 
cost of office space, phones, salaries, utilities, supplies, legal and 
accounting fees, fund-raising and other expenses incurred in setting up 
and running a separate segregated fund established by a corporation, 
labor organization, membership organization, cooperative, or corporation 
without capital stock.
    (c) Executive or administrative personnel means individuals employed 
by a corporation or labor organization who are paid on a salary rather 
than hourly basis and who have policymaking, managerial, professional, 
or supervisory responsibilities.
    (1) This definition includes--
    (i) The individuals who run the corporation's business such as 
officers, other executives, and plant, division, and section managers; 
and
    (ii) Individuals following the recognized professions, such as 
lawyers and engineers.
    (2) This definition does not include--
    (i) Professionals who are represented by a labor organization;
    (ii) Salaried foremen and other salaried lower level supervisors 
having direct supervision over hourly employees;
    (iii) Former or retired personnel who are not stockholders; or
    (iv) Individuals who may be paid by the corporation or labor 
organization, such as consultants, but who are not employees, within the 
meaning of 26 CFR 31.3401(c)-1, of the corporation or labor organization 
for the purpose of income withholding tax on employee wages under 
Internal Revenue Code of 1954, section 3402.
    (3) Individuals on commission may be considered executive or 
administrative personnel if they have policymaking, managerial, 
professional, or supervisory responsibility and if the individuals are 
employees, within the meaning of 26 CFR 31.3401(c)-1 of the corporation 
for the purpose of income withholding tax on employee wages under the 
Internal Revenue Code of 1954, section 3402.
    (4) The Fair Labor Standards Act, 29 U.S.C. 201, et seq. and the 
regulations issued pursuant to that Act, 29 CFR part 541, may serve as a 
guideline in determining whether individuals have policymaking, 
managerial, professional, or supervisory responsibilities.
    (d) Labor organization means any organization of any kind, or any 
agency or employee representative committee or plan, in which employees 
participate and which exists for the purpose, in whole or in part, of 
dealing with employers concerning grievances, labor disputes, wages, 
rates of pay, hours of employment, or conditions of work.
    (e)(1) For purposes of this part membership organization means a 
trade association, cooperative, corporation without capital stock, or a 
local, national, or international labor organization that:
    (i) Is composed of members, some or all of whom are vested with the 
power and authority to operate or administer

[[Page 156]]

the organization, pursuant to the organization's articles, bylaws, 
constitution or other formal organizational documents;
    (ii) Expressly states the qualifications and requirements for 
membership in its articles, bylaws, constitution or other formal 
organizational documents;
    (iii) Makes its articles, bylaws, constitution, or other formal 
organizational documents available to its members upon request;
    (iv) Expressly solicits persons to become members;
    (v) Expressly acknowledges the acceptance of membership, such as by 
sending a membership card or including the member's name on a membership 
newsletter list; and
    (vi) Is not organized primarily for the purpose of influencing the 
nomination for election, or election, of any individual to Federal 
office.
    (2) For purposes of this part, the term members includes all persons 
who are currently satisfying the requirements for membership in a 
membership organization, affirmatively accept the membership 
organization's invitation to become a member, and either:
    (i) Have some significant financial attachment to the membership 
organization, such as a significant investment or ownership stake; or
    (ii) Pay membership dues at least annually, of a specific amount 
predetermined by the organization; or
    (iii) Have a significant organizational attachment to the membership 
organization which includes: affirmation of membership on at least an 
annual basis; and direct participatory rights in the governance of the 
organization. For example, such rights could include the right to vote 
directly or indirectly for at least one individual on the membership 
organization's highest governing board; the right to vote directly for 
organization officers; the right to vote on policy questions where the 
highest governing body of the membership organization is obligated to 
abide by the results; the right to approve the organization's annual 
budget; or the right to participate directly in similar aspects of the 
organization's governance.
    (3) Notwithstanding the requirements of paragraph (e)(2) of this 
section, the Commission may determine, on a case-by-case basis, that 
persons who do not precisely meet the requirements on the general rule, 
but have a relatively enduring and independently significant financial 
or organizational attachment to the organization, may be considered 
members for purposes of this section. For example, student members who 
pay a lower amount of dues while in school, long term dues paying 
members who qualify for lifetime membership status with little or no 
dues obligation, and retired members of the organization may be 
considered members for purposes of these rules.
    (4) Notwithstanding the requirements of paragraphs (e)(2)(i) through 
(iii) of this section, members of a local union are considered to be 
members of any national or international union of which the local union 
is a part and of any federation with which the local, national, or 
international union is affiliated.
    (5) In the case of a membership organization which has a national 
federation structure or has several levels, including, for example, 
national, state, regional and/or local affiliates, a person who 
qualifies as a member of any entity within the federation or of any 
affiliate by meeting the requirements of paragraphs (e)(2)(i), (ii), or 
(iii) of this section shall also qualify as a member of all affiliates 
for purposes of this part. The factors set forth at 11 CFR 100.5 (g)(2), 
(3) and (4) shall be used to determine whether entities are affiliated 
for purposes of this paragraph.
    (6) The status of a membership organization, and of members, for 
purposes of this part, shall be determined pursuant to paragraph (e)(1) 
of this section and not by provisions of state law governing trade 
associations, cooperatives, corporations without capital stock, or labor 
organizations.
    (f) Method of facilitating the making of contributions means the 
manner in which the contributions are received or collected such as, but 
not limited to, payroll deduction or checkoff systems, other periodic 
payment plans, or return envelopes enclosed in a solicitation request.

[[Page 157]]

    (g) Method of soliciting voluntary contributions means the manner in 
which the solicitation is undertaken including, but not limited to, 
mailings, oral requests for contributions, and hand distribution of 
pamphlets.
    (h) Stockholder means a person who has a vested beneficial interest 
in stock, has the power to direct how that stock shall be voted, if it 
is voting stock, and has the right to receive dividends.
    (i) Voluntary contributions are contributions which have been 
obtained by the separate segregated fund of a corporation or labor 
organization in a manner which is in compliance with Sec. 114.5(a) and 
which is in accordance with other provisions of the Act.
    (j) Restricted class. A corporation's restricted class is its 
stockholders and executive or administrative personnel, and their 
families, and the executive and administrative personnel of its 
subsidiaries, branches, divisions, and departments and their families. A 
labor organization's restricted class is its members and executive or 
administrative personnel, and their families. For communications under 
11 CFR 114.3, the restricted class of an incorporated membership 
organization, incorporated trade association, incorporated cooperative 
or corporation without capital stock is its members and executive or 
administrative personnel, and their families. (The solicitable class of 
a membership organization, cooperative, corporation without capital 
stock or trade association, as described in 11 CFR 114.7 and 114.8, may 
include some persons who are not considered part of the organization's 
restricted class, and may exclude some persons who are in the restricted 
class.)

(2 U.S.C. 431(8)(B)(iii), 432(c)(3). 438(a)(8), 441b; 2 U.S.C. 441b, 
437d(a)(8)

[41 FR 35955, Aug. 25, 1976, as amended at 44 FR 63045, Nov. 1. 1979; 45 
FR 15125, Mar. 7, 1980; 45 FR 21210, Apr. 1, 1980; 48 FR 50508, Nov. 2, 
1983; 57 FR 1640, Jan. 15, 1992; 58 FR 45775, Aug. 30, 1993; 59 FR 
33615, June 29, 1994; 60 FR 64273, Dec. 14, 1995; 64 FR 41273, July 30, 
1999]



Sec. 114.2  Prohibitions on contributions and expenditures.

    (a) National banks and corporations organized by authority of any 
law of Congress are prohibited from making a contribution, as defined in 
11 CFR 114.1(a), in connection with any election to any political 
office, including local, State and Federal offices, or in connection 
with any primary election or political convention or caucus held to 
select candidates for any political office, including any local, State 
or Federal office. National banks and corporations organized by 
authority of any law of Congress are prohibited form making expenditures 
as defined in 11 FR 114.1(a) for communications to those outside the 
restricted class expressly advocating the election or defeat of one or 
more clearly identified candidate(s) or the candidates of a clearly 
identified political party, with respect to an election to any political 
office, including any local, State or Federal office.
    (1) Such national banks and corporations may engage in the 
activities permitted by 11 CFR part 114, except to the extent that such 
activity is foreclosed by provisions of law other than the Act.
    (2) The provisions of 11 CFR part 114 apply to the activities of a 
national bank, or a corporation organized by any law of Congress, in 
connection with local, State and Federal elections.
    (b) Any corporation whatever or any labor organization is prohibited 
from making a contribution as defined in 11 CFR 114.1(a) in connection 
with any Federal election. Except as provided at 11 CFR 114.10, 
corporations and labor organizations are prohibited from making 
expenditures with respect to a Federal election (as defined in 11 CFR 
114.1(a)) for communications to those outside the restricted class 
expressly advocating the election or defeat of one or more clearly 
identified candidate(s) or the candidates of a clearly identified 
political party.
    (c) Disbursements by corporations and labor organizations for the 
election-related activities described in 11 CFR 114.3 and 114.4 will not 
cause those activities to be contributions or expenditures, even when 
coordinated with any candidate, candidate's agent, candidate's 
authorized committee(s) or any party committee to the extent permitted 
in those sections. Coordination beyond that described in 11 CFR 114.3

[[Page 158]]

and 114.4 shall not cause subsequent activities directed at the 
restricted class to be considered contributions or expenditures. 
However, such coordination may be considered evidence that could negate 
the independence of subsequent communications to those outside the 
restricted class by the corporation, labor organization or its separate 
segregated fund, and could result in an in-kind contribution. See 11 CFR 
109.1 regarding independent expenditures and coordination with 
candidates.
    (d) A candidate, political committee, or other person is prohibited 
from knowingly accepting or receiving any contribution prohibited by 
this section.
    (e) No officer or director of any corporation or any national bank, 
and no officer of any labor organization shall consent to any 
contribution or expenditure by the corporation, national bank, or labor 
organization prohibited by this section.
    (f) Facilitating the making of contributions. (1) Corporations and 
labor organizations (including officers, directors or other 
representatives acting as agents of corporations and labor 
organizations) are prohibited from facilitating the making of 
contributions to candidates or political committees, other than to the 
separate segregated funds of the corporations and labor organizations. 
Facilitation means using corporate or labor organization resources or 
facilities to engage in fundraising activities in connection with any 
federal election, such as activities which go beyond the limited 
exemptions set forth in 11 CFR 100.7, 100.8, 114.9(a) through (c) and 
114.13. A corporation does not facilitate the making of a contribution 
to a candidate or political committee if it provides goods or services 
in the ordinary course of its business as a commercial vendor in 
accordance with 11 CFR part 116 at the usual and normal charge.
    (2) Examples of facilitating the making of contributions include but 
are not limited to--
    (i) Fundraising activities by corporations (except commercial 
vendors) or labor organizations that involve--
    (A) Officials or employees of the corporation or labor organization 
ordering or directing subordinates or support staff (who therefore are 
not acting as volunteers) to plan, organize or carry out the fundraising 
project as a part of their work responsibilities using corporate or 
labor organization resources, unless the corporation or labor 
organization receives advance payment for the fair market value of such 
services;
    (B) Failure to reimburse a corporation or labor organization within 
a commercially reasonable time for the use of corporate facilities 
described in 11 CFR 114.9(d) in connection with such fundraising 
activities;
    (C) Using a corporate or labor organization list of customers, 
clients, vendors or others who are not in the restricted class to 
solicit contributions or distribute invitations to the fundraiser, 
unless the corporation or labor organization receives advance payment 
for the fair market value of the list;
    (D) Using meeting rooms that are not customarily made available to 
clubs, civic or community organizations or other groups; or
    (E) Providing catering or other food services operated or obtained 
by the corporation or labor organization, unless the corporation or 
labor organization receives advance payment for the fair market value of 
the services;
    (ii) Providing materials for the purpose of transmitting or 
delivering contributions, such as stamps, envelopes addressed to a 
candidate or political committee other than the corporation's or labor 
organization's separate segregated fund, or other similar items which 
would assist in transmitting or delivering contributions, but not 
including providing the address of the candidate or political committee;
    (iii) Soliciting contributions earmarked for a candidate that are to 
be collected and forwarded by the corporation's or labor organizations's 
separate segregated fund, except to the extent such contributions also 
are treated as contributions to and by the separate segregated fund; or
    (iv) Using coercion, such as the threat of a detrimental job action, 
the threat of any other financial reprisal, or the threat of force, to 
urge any individual to make a contribution or engage in fundraising 
activities on behalf of a candidate or political committee.

[[Page 159]]

    (3) Facilitating the making of contributions does not include the 
following activities if conducted by a separate segregated fund--
    (i) Any activity specifically permitted under 11 CFR 110.1, 110.2, 
or 114.5 through 114.8, including soliciting contributions to a 
candidate or political committee, and making in kind contributions to a 
candidate or political committee; and
    (ii) Collecting and forwarding contributions earmarked to a 
candidate in accordance with 11 CFR 110.6.
    (4) Facilitating the making of contributions also does not include 
the following activities if conducted by a corporation or labor 
organization--
    (i) Enrolling members of a corporation's or labor organization's 
restricted class in a payroll deduction plan or check-off system which 
deducts contributions from dividend or payroll checks to make 
contributions to the corporation's or labor organization's separate 
segregated fund or an employee participation plan pursuant to 11 CFR 
114.11;
    (ii) Soliciting contributions to be sent directly to candidates if 
the solicitation is directed to the restricted class, see 11 CFR 
114.1(a)(2)(i); and
    (iii) Soliciting contributions earmarked for a candidate that are to 
be collected and forwarded by the corporation's or labor organization's 
separate segregated fund, to the extent such contributions also are 
treated as contributions to and by the separate segregated fund.

[60 FR 64274, Dec. 14, 1995]



Sec. 114.3  Disbursements for communications to the restricted class in connection with a Federal election.

    (a) General. (1) Corporations and labor organizations may make 
communications on any subject, including communications containing 
express advocacy, to their restricted class or any part of that class. 
Corporations and labor organizations may also make the communications 
permitted under 11 CFR 114.4 to their restricted class or any part of 
that class. The activities permitted under this section may involve 
election-related coordination with candidates and political committees. 
See 11 CFR 109.1 and 114.2(c) regarding independent expenditures and 
coordination with candidates.
    (2) Incorporated membership organizations, incorporated trade 
associations, incorporated cooperatives and corporations without capital 
stock may make communications to their restricted class, or any part of 
that class as permitted in paragraphs (a)(1) and (c) of this section.
    (b) Reporting communications containing express advocacy. 
Disbursements for communications expressly advocating the election or 
defeat of one or more clearly identified candidate(s) made by a 
corporation, including a corporation described in paragraph (a)(2) of 
this section, or labor organization to its restricted class shall be 
reported in accordance with 11 CFR 100.8(b)(4) and 104.6.
    (c) Communications containing express advocacy. Communications 
containing express advocacy which may be made to the restricted class 
include, but are not limited to, the examples set forth in paragraphs 
(c)(1) through (c)(4) of this section.
    (1) Publications. Printed material expressly advocating the election 
or defeat of one or more clearly identified candidate(s) or candidates 
of a clearly identified political party may be distributed by a 
corporation or by a labor organization to its restricted class, provided 
that:
    (i) The material is produced at the expense of the corporation or 
labor organization; and
    (ii) The material constitutes a communications of the views of the 
corporation or the labor organization, and is not the republication or 
reproduction, in whole or in part, of any broadcast, transcript or tape 
or any written, graphic, or other form of campaign materials prepared by 
the candidate, his or her campaign committees, or their authorized 
agents. A corporation or labor organization may, under this section, use 
brief quotations from speeches or other materials of a candidate that 
demonstrate the candidate's position as part of the corporation's or 
labor organization's expression of its own views.
    (2) Candidate and party appearances. (i) A corporation may allow a 
candidate, candidate's representative or

[[Page 160]]

party representative to address its restricted class at a meeting, 
convention or other function of the corporation, but is not required to 
do so. A labor organization may allow a candidate or party 
representative to address its restricted class at a meeting, convention, 
or other function of the labor organization, but is not required to do 
so. A corporation or labor organization may bar other candidates for the 
same office or a different office and their representatives, and 
representatives of other parties addressing the restricted class. A 
corporation or labor organization may allow the presence of employees 
outside the restricted class of the corporation or labor organization 
who are necessary to administer the meeting, other guests of the 
corporation or labor organization who are being honored or speaking or 
participating in the event, and representatives of the news media.
    (ii) The candidate, candidate's representative or party 
representative may ask for contributions to his or her campaign or 
party, or ask that contributions to the separate segregated fund of the 
corporation or labor organization be designated for his or her campaign 
or party. The incidental solicitation of persons outside the 
corporation's or labor organization's restricted class who may be 
present at the meeting as permitted by this section will not be a 
violation of 11 CFR part 114. The candidate's representative or party 
representative (other than an officer, director or other representative 
of a corporation or official, member or employee of a labor 
organization) or the candidate, may accept contributions before, during 
or after the appearance at the meeting, convention or other function of 
the corporation or labor organization.
    (iii) The corporation or labor organization may suggest that members 
of its restricted class contribute to the candidate or party committee, 
but the collection of contributions by any officer, director or other 
representative of the corporation or labor organization before, during, 
or after the appearance while at the meeting, is an example of a 
prohibited facilitation of contributions under 11 CFR 114.2(f).
    (iv) If the corporation or labor organization permits more than one 
candidate for the same office, or more than one candidate's 
representative or party representative, to address its restricted class, 
and permits the news media to cover or carry an appearance by one 
candidate or candidate's representative or party representative, the 
corporation or labor organization shall also permit the news media to 
cover or carry the appearances by the other candidate(s) for that 
office, or the other candidates' representatives or party 
representatives. If the corporation or labor organization permits a 
representative of the news media to cover or carry a candidate or 
candidate's representative or party representative appearance, the 
corporation or labor organization shall provide all other 
representatives of the news media with equal access for covering or 
carrying that appearance. Equal access is provided by--
    (A) Providing advance information regarding the appearance to the 
representatives of the news media whom the corporation or labor 
organization customarily contacts and other representatives of the news 
media upon request; and
    (B) Allowing all representatives of the news media to cover or carry 
the appearance, through the use of pooling arrangements if necessary.
    (3) Phone banks. A corporation or a labor organization may establish 
and operate phone banks to communicate with its restricted class, urging 
them to register and/or vote for a particular candidate or candidates, 
or to register with a particular political party.
    (4) Registration and get-out-the-vote drives. A corporation or a 
labor organization may conduct registration and get-out-the-vote drives 
aimed at its restricted class. Registration and get-out-the-vote drives 
include providing transportation to the place of registration and to the 
polls. Such drives may include communications containing express 
advocacy, such as urging individuals to register with a particular party 
or to vote for a particular candidate or candidates. Information and 
other assistance regarding registering or voting, including 
transportation and other services offered, shall not be withheld

[[Page 161]]

or refused on the basis of support for or opposition to particular 
candidates, or a particular political party.

[60 FR 64275, Dec. 14, 1995]



Sec. 114.4  Disbursements for communications beyond the restricted class in connection with a Federal election.

    (a) General. A corporation or labor organization may communicate 
beyond the restricted class in accordance with this section. Any 
communications which a corporation or labor organization may make to the 
general public under paragraph (c) of this section may also be made to 
the corporation's or labor organization's restricted class and to other 
employees and their families. Communications which a corporation or 
labor organization may make only to its employees (including its 
restricted class) and their families, but not to the general public, are 
found in paragraph (b) of this section. Communications which a 
corporation or labor organization may make only to its restricted class 
are found at 11 CFR 114.3. The activities permitted under paragraphs (b) 
and (c) of this section may involve election-related coordination with 
candidates and political committees only to the extent permitted by this 
section. See 11 CFR 109.1 and 114.2(c) regarding independent 
expenditures and coordination with candidates. Incorporated membership 
organizations, incorporated trade associations, incorporated 
cooperatives and corporations without capital stock will be treated as 
corporations for the purpose of making communications beyond the 
restricted class under this section.
    (b) Communications by a corporation or labor organization to 
employees beyond its restricted class--(1) Candidate and party 
appearances on corporate premises or at a meeting, convention or other 
function. Corporations may permit candidates, candidates' 
representatives or representatives of political parties on corporate 
premises or at a meeting, convention, or other function of the 
corporation to address or meet its restricted class and other employees 
of the corporation and their families, in accordance with the conditions 
set forth in paragraphs (b)(1)(i) through (b)(1)(viii) of this section. 
Other guests of the corporation who are being honored or speaking or 
participating in the event and representatives of the news media may be 
present. A corporation may bar all candidates, candidates' 
representatives and representatives of political parties from addressing 
or meeting its restricted class and other employees of the corporation 
and their families on corporate premises or at any meeting, convention 
or other function of the corporation.
    (i) If a candidate for the House or Senate or a candidate's 
representative is permitted to address or meet employees, all candidates 
for that seat who request to appear must be given a similar opportunity 
to appear;
    (ii) If a Presidential or Vice Presidential candidate or candidate's 
representative is permitted to address or meet employees, all candidates 
for that office who are seeking the nomination or election, and who meet 
pre-established objective criteria under 11 CFR 110.13(c), and who 
request to appear must be given a similar opportunity to appear;
    (iii) If representatives of a political party are permitted to 
address or meet employees, representatives of all political parties 
which had a candidate or candidates on the ballot in the last general 
election or which are actively engaged in placing or will have a 
candidate or candidates on the ballot in the next general election and 
who request to appear must be given a similar opportunity to appear;
    (iv) The candidate's representative or party representative (other 
than an officer, director or other representative of a corporation) or 
the candidate, may ask for contributions to his or her campaign or 
party, or ask that contributions to the separate segregated fund of the 
corporation be designated for his or her campaign or party. The 
candidate, candidate's representative or party representative shall not 
accept contributions before, during or after the appearance while at the 
meeting, convention or other function of the corporation, but may leave 
campaign materials or envelopes for members of the audience. A 
corporation, its restricted class, or other employees of the corporation 
or its separate segregated

[[Page 162]]

fund shall not, either orally or in writing, solicit or direct or 
control contributions by members of the audience to any candidate or 
party in conjunction with any appearance by any candidate or party 
representative under this section, and shall not facilitate the making 
of contributions to any such candidate or party (see 11 CFR 114.2(f));
    (v) A corporation or its separate segregated fund shall not, in 
conjunction with any candidate, candidate representative or party 
representative appearance under this section, expressly advocate the 
election or defeat of any clearly identified candidate(s) or candidates 
of a clearly identified political party and shall not promote or 
encourage express advocacy by employees;
    (vi) No candidate, candidate's representative or party 
representative shall be provided with more time or a substantially 
better location than other candidates, candidates' representatives or 
party representatives who appear, unless the corporation is able to 
demonstrate that it is clearly impractical to provide all candidates, 
candidates' representatives and party representatives with similar times 
or locations;
    (vii) Coordination with each candidate, candidate's agent, and 
candidate's authorized committee(s) may include discussions of the 
structure, format and timing of the candidate appearance and the 
candidate's positions on issues, but shall not include discussions of 
the candidate's plans, projects, or needs relating to the campaign; and
    (viii) Representatives of the news media may be allowed to be 
present during a candidate, candidate representative or party 
representative appearance under this section, in accordance with the 
procedures set forth at 11 CFR 114.3(c)(2)(iv).
    (2) Candidate and party appearances on labor organization premises 
or at a meeting, convention or other function. A labor organization may 
permit candidates, candidates' representatives or representatives of 
political parties on the labor organization's premises or at a meeting, 
convention, or other function of the labor organization to address or 
meet its restricted class and other employees of the labor organization, 
and their families, in accordance with the conditions set forth in 
paragraphs (b)(1) (i) through (iii), (vi) through (viii), and paragraphs 
(b)(2) (i) and (ii) of this section. Other guests of the labor 
organization who are being honored or speaking or participating in the 
event and representatives of the news media may be present. A labor 
organization may bar all candidates, candidates' representatives and 
representatives of political parties from addressing or meeting its 
restricted class and other employees of the labor organization and their 
families on the labor organization's premises or at any meeting, 
convention or other function of the labor organization.
    (i) The candidate's representative or party representative (other 
than an official, member or employee of a labor organization) or the 
candidate, may ask for contributions to his or her campaign or party, or 
ask that contributions to the separate segregated fund of the labor 
organization be designated for his or her campaign or party. The 
candidate, candidate's representative or party representative shall not 
accept contributions before, during or after the appearance while at the 
meeting, convention or other function of the labor organization, but may 
leave campaign materials or envelopes for members of the audience. No 
official, member, or employee of a labor organization or its separate 
segregated fund shall, either orally or in writing, solicit or direct or 
control contributions by members of the audience to any candidate or 
party representative under this section, and shall not facilitate the 
making of contributions to any such candidate or party. See 11 CFR 
114.2(f).
    (ii) A labor organization or its separate segregated fund shall not, 
in conjunction with any candidate or party representative appearance 
under this section, expressly advocate the election or defeat of any 
clearly identified candidate(s), and shall not promote or encourage 
express advocacy by its members or employees.
    (c) Communications by a corporation or labor organization to the 
general public--(1) General. A corporation or labor organization may 
make the communications described in paragraphs (c)(2)

[[Page 163]]

through (c)(5) of this section to the general public. The general public 
includes anyone who is not in the corporation's or labor organization's 
restricted class. The provisions of paragraph (c) of this section shall 
not prevent a qualified nonprofit corporation under 11 CFR 114.10(c) 
from including express advocacy in any communication made to the general 
public under paragraphs (c)(2) through (c)(5)(i) of this section.
    (2) Registration and voting communications. A corporation or labor 
organization may make registration and get-out-the vote communications 
to the general public, provided that the communications do not expressly 
advocate the election or defeat of any clearly identified candidate(s) 
or candidates of a clearly identified political party. The preparation 
and distribution or registration and get-out-the-vote communications 
shall not be coordinated with any candidate(s) or political party. A 
corporation or labor organization may make communications permitted 
under this section through posters, billboards, broadcasting media, 
newspapers, newsletter, brochures, or similar means of communication 
with the general public.
    (3) Official registration and voting information. (i) A corporation 
or labor organization may distribute to the general public, or reprint 
in whole and distribute to the general public, any registration or 
voting information, such as instructional materials, which has been 
produced by the official election administrators.
    (ii) A corporation or labor organization may distribute official 
registration-by-mail forms to the general public. A corporation or labor 
organization may distribute absentee ballots to the general public if 
permitted by the applicable State law.
    (iii) A corporation or labor organization may donate funds to State 
or local government agencies responsible for the administration of 
elections to help defray the costs of printing or distributing 
registration or voting information and forms.
    (iv) The corporation or labor organization shall not, in connection 
with any such distribution, expressly advocate the election or defeat of 
any clearly identified candidate(s) or candidates of a clearly 
identified political party and shall not encourage registration with any 
particular political party.
    (v) The reproduction and distribution of registration or voting 
information and forms shall not be coordinated with any candidate(s) or 
political party.
    (4) Voting records. A corporation or labor organization may prepare 
and distribute to the general public the voting records of Members of 
Congress, provided that the voting record and all communications 
distributed with it do not expressly advocate the election or defeat of 
any clearly identified candidate, clearly identified group of candidates 
or candidates of a clearly identified political party. The decision on 
content and the distribution of voting records shall not be coordinated 
with any candidate, group of candidates or political party.
    (5) Voter guides. A corporation or labor organization may prepare 
and distribute to the general public voter guides consisting of two or 
more candidates' positions on campaign issues, including voter guides 
obtained from a nonprofit organization which is described in 26 U.S.C. 
501 (c)(3) or (c)(4), provided that the voter guides comply with either 
paragraph (c)(5)(i) or (c)(5)(ii) (A) through (E) of this section. The 
sponsor may include in the voter guide biographical information on each 
candidate, such as education, employment positions, offices held, and 
community involvement.
    (i) The corporation or labor organization shall not contact or in 
any other way act in cooperation, coordination, or consultation with or 
at the request or suggestion of the candidates, the candidates' 
committees or agents regarding the preparation, contents and 
distribution of the voter guide, and no portion of the voter guide may 
expressly advocate the election or defeat of one or more clearly 
identified candidate(s) or candidates of any clearly identified 
political party.
    (ii) (A) The corporation or labor organization shall not contact or 
in any other way act in cooperation, coordination, or consultation with 
or at the request or suggestion of the candidates, the candidates' 
committees or agents

[[Page 164]]

regarding the preparation, contents and distribution of the voter guide, 
except that questions may be directed in writing to the candidates 
included in the voter guide and the candidates may respond in writing;
    (B) All of the candidates for a particular seat or office shall be 
provided an equal opportunity to respond, except that in the case of 
Presidential and Vice Presidential candidates the corporation or labor 
organization may choose to direct the questions only to those candidates 
who--
    (1) Are seeking the nomination of a particular political party in a 
contested primary election; or
    (2) Appear on the general election ballot in the state(s) where the 
voter guide is distributed or appear on the general election ballot in 
enough states to win a majority of the electoral votes;
    (C) No candidate may receive greater prominence in the voter guide 
than other participating candidates, or substantially more space for 
responses;
    (D) The voter guide and its accompanying materials shall not contain 
an electioneering message; and
    (E) The voter guide and its accompanying materials shall not score 
or rate the candidates' responses in such a way as to convey an 
electioneering message.
    (6) Endorsements. A corporation or labor organization may endorse a 
candidate and may communicate the endorsement to its restricted class 
through the publications described in 11 CFR 114.3(c)(1) or during a 
candidate appearance under 11 CFR 114.3(c)(2), provided that no more 
than a de minimis number of copies of the publication which includes the 
endorsement are circulated beyond the restricted class. The corporation 
or labor organization may publicly announce the endorsement and state 
the reasons therefor, in accordance with the conditions set forth in 
paragraphs (c)(6) (i) and (ii) of this section. The Internal Revenue 
Code and regulations promulgated thereunder should be consulted 
regarding restrictions or prohibitions on endorsements by nonprofit 
corporations described in 26 U.S.C. 501(c)(3).
    (i) The public announcement of the endorsement may be made through a 
press release and press conference. Disbursements for the press release 
and press conference shall be de minimis. The disbursements shall be 
considered de minimis if the press release and notice of the press 
conference is distributed only to the representatives of the news media 
that the corporation or labor organization customarily contacts when 
issuing non-political press releases or holding press conferences for 
other purposes.
    (ii) The public announcement of the endorsement may not be 
coordinated with the candidate, the candidate's agents or the 
candidate's authorized committee(s).
    (7) Candidate appearances on educational institution premises--(i) 
Rental of facilities at usual and normal charge. Any incorporated 
nonprofit educational institution exempt from federal taxation under 26 
U.S.C. 501(c)(3), such as a school, college or university, may make its 
facilities available to any candidate or political committee in the 
ordinary course of business and at the usual and normal charge. In this 
event, the requirements of paragraph (c)(7)(ii) of this section are not 
applicable.
    (ii) Use of facilities at no charge or at less than the usual and 
normal charge. An incorporated nonprofit educational institution exempt 
from federal taxation under 26 U.S.C. 501(c)(3), such as a school, 
college or university, may sponsor appearances by candidates, 
candidates' representatives or representatives of political parties at 
which such individuals address or meet the institution's academic 
community or the general public (whichever is invited) on the 
educational institution's premises at no charge or at less than the 
usual and normal charge, if:
    (A) The educational institution makes reasonable efforts to ensure 
that the appearances constitute speeches, question and answer sessions, 
or similar communications in an academic setting, and makes reasonable 
efforts to ensure that the appearances are not conducted as campaign 
rallies or events; and
    (B) The educational institution does not, in conjunction with the 
appearance, expressly advocate the election

[[Page 165]]

or defeat of any clearly identified candidate(s) or candidates of a 
clearly identified political party, and does not favor any one candidate 
or political party over any other in allowing such appearances.
    (d) Registration and get-out-the-vote drives. A corporation or labor 
organization may support or conduct voter registration and get-out-the-
vote drives which are aimed at employees outside its restricted class 
and the general public in accordance with the conditions set forth in 
paragraphs (d)(1) through (d)(6) of this section. Registration and get-
out-the-vote drives include providing transportation to the polls or to 
the place of registration.
    (1) The corporation or labor organization shall not make any 
communication expressly advocating the election or defeat of any clearly 
identified candidate(s) or candidates of a clearly identified political 
party as part of the voter registration or get-out-the-vote drive.
    (2) The registration or get-out-the-vote drive shall not be 
coordinated with any candidate(s) or political party.
    (3) The registration drive shall not be directed primarily to 
individuals previously registered with, or intending to register with, 
the political party favored by the corporation or labor organization. 
The get-out-the-vote drive shall not be directed primarily to 
individuals currently registered with the political party favored by the 
corporation or labor organization.
    (4) These services shall be made available without regard to the 
voter's political preference. Information and other assistance regarding 
registering or voting, including transportation and other services 
offered, shall not be withheld or refused on the basis of support for or 
opposition to particular candidates or a particular political party.
    (5) Individuals conducting the registration or get-out-the-vote 
drive shall not be paid on the basis of the number of individuals 
registered or transported who support one or more particular candidates 
or political party.
    (6) The corporation or labor organization shall notify those 
receiving information or assistance of the requirements of paragraph 
(d)(4) of this section. The notification shall be made in writing at the 
time of the registration or get-out-the-vote drive.
    (e) Incorporated membership organizations, incorporated trade 
associations, incorporated cooperatives and corporations without capital 
stock. An incorporated membership organization, incorporated trade 
association, incorporated cooperative or corporation without capital 
stock may permit candidates, candidates' representatives or 
representatives of political parties to address or meet members and 
employees of the organization, and their families, on the organization's 
premises or at a meeting, convention or other function of the 
organization, in accordance with the conditions set forth in paragraphs 
(b)(1) (i) through (viii) of this section.
    (f) Candidate debates. (1) A nonprofit organization described in 11 
CFR 110.13(a)(1) may use its own funds and may accept funds donated by 
corporations or labor organizations under paragraph (f)(3) of this 
section to defray costs incurred in staging candidate debates held in 
accordance with 11 CFR 110.13.
    (2) A broadcaster (including a cable television operator, programmer 
or producer), bona fide newspaper, magazine or other periodical 
publication may use its own funds to defray costs incurred in staging 
public candidate debates held in accordance with 11 CFR 110.13.
    (3) A corporation or labor organization may donate funds to 
nonprofit organizations qualified under 11 CFR 110.13(a)(1) to stage 
candidate debates held in accordance with 11 CFR 110.13 and 114.4(f).

[60 FR 64276, Dec. 14, 1995, as amended at 61 FR 18051, Apr. 24, 1996]



Sec. 114.5  Separate segregated funds.

    (a) Voluntary contributions to a separate segregated fund. (1) A 
separate segregated fund is prohibited from making a contribution or 
expenditure by utilizing money or anything of value secured by physical 
force, job discrimination, financial reprisals, or the threat of force, 
job discrimination, or financial reprisal; or by dues, fees, or other

[[Page 166]]

monies required as a condition of membership in a labor organization or 
as a condition of employment or by monies obtained in any commercial 
transaction. For purposes of this section, fees or monies paid as a 
condition of acquiring or retaining membership or employment are monies 
required as a condition of membership or employment even though they are 
refundable upon request of the payor.
    (2) A guideline for contributions may be suggested by a corporation 
or a labor organization, or the separate segregated fund of either, 
provided that the person soliciting or the solicitation informs the 
persons being solicited--
    (i) That the guidelines are merely suggestions; and
    (ii) That an individual is free to contribute more or less than the 
guidelines suggest and the corporation or labor organization will not 
favor or disadvantage anyone by reason of the amount of their 
contribution or their decision not to contribute.

A corporation or labor organization or the separate segregated fund of 
either may not enforce any guideline for contributions.
    (3) Any person soliciting an employee or member for a contribution 
to a separate segregated fund must inform such employee or member of the 
political purposes of the fund at the time of the solicitation.
    (4) Any persons soliciting an employee or member for a contribution 
to a separate segregated fund must inform the employee or member at the 
time of such solicitation of his or her right to refuse to so contribute 
without any reprisal.
    (5) Any written solicitation for a contribution to a separate 
segregated fund which is addressed to an employee or member must contain 
statements which comply with the requirements of paragraphs (a) (3) and 
(4) of this section, and if a guideline is suggested, statements which 
comply with the requirements of paragraph (a)(2) of this section.
    (b) Use of treasury monies. Corporations, labor organizations, 
membership organizations, cooperatives, or corporations without capital 
stock may use general treasury monies, including monies obtained in 
commercial transactions and dues monies or membership fees, for the 
establishment, administration, and solicitation of contributions to its 
separate segregated fund. A corporation, labor organization, membership 
organization, cooperative, or corporation without capital stock may not 
use the establishment, administration, and solicitation process as a 
means of exchanging treasury monies for voluntary contributions.
    (1) A contributor may not be paid for his or her contribution 
through a bonus, expense account, or other form of direct or indirect 
compensation.
    (2) A corporation, labor organization, membership organization, 
cooperative, or corporation without capital stock may, subject to the 
provisions of 39 U.S.C. 3005 and chapter 61, title 18, United States 
Code, utilize a raffle or other fundraising device which involves a 
prize, so long as State law permits and the prize is not 
disproportionately valuable. Dances, parties, and other types of 
entertainment may also be used as fundraising devices. When using 
raffles or entertainment to raise funds, a reasonable practice to follow 
is for the separate segregated fund to reimburse the corporation or 
labor organization for costs which exceed one-third of the money 
contributed.
    (3) If the separate segregated fund pays any solicitation or other 
administrative expense from its own account, which expense could be paid 
for as an administrative expense by the collecting agent, the collecting 
agent may reimburse the separate segregated fund no later than 30 
calendar days after the expense was paid by the separate segregated 
fund.
    (c) Membership in separate segregated funds. (1) A separate 
segregated fund established by a corporation, labor organization, 
membership organization, cooperative, or corporation without capital 
stock may provide that persons who contribute a certain amount to its 
separate segregated fund will become members of its separate segregated 
fund, so long as--
    (i) The fund accepts contributions of all amounts, subject to the 
limitations of part 110;
    (ii) Subject to paragraph (c)(1)(iii) of this section, nothing of 
value may be

[[Page 167]]

given in return for or in the course of membership;
    (iii) The fund may use membership status for intangible privileges 
such as allowing members only to choose the candidates to whom the fund 
will contribute.
    (2) The fact that the separate segregated fund of a corporation, 
labor organization, membership organization, cooperative, or corporation 
without capital stock is a membership group does not provide the 
corporation, labor organization, membership organization, cooperative, 
or corporation without capital stock with any greater right of 
communication or solicitation than the corporation, labor organization, 
membership organization, cooperative, or corporation without capital 
stock is otherwise granted under this part.
    (d) Control of funds. A corporation, membership organization, 
cooperative, corporation without capital stock, or labor organization 
may exercise control over its separate segregated fund.
    (e) Disclosure. Separate segregated funds are subject to the 
following disclosure requirements:
    (1) A corporation or labor organization is not required to report 
any payment made or obligation incurred which is not a contribution or 
expenditure, as defined in Sec. 114.1(a), except those reporting 
requirements specifically set forth in this section.
    (2) A membership organization or corporation is not required to 
report the cost of any communication to its members or stockholders or 
executive or administrative personnel, if such membership organization 
or corporation is not organized primarily for the purpose of influencing 
the nomination for election, or election, of any person to Federal 
office, except that--
    (i) The costs incurred by a membership organization, including a 
labor organization, or by a corporation, directly attributable to a 
communication expressly advocating the election or defeat of a clearly 
identified candidate (other than a communication primarily devoted to 
subjects other than the express advocacy of the election or defeat of a 
clearly identified candidate) shall, if those costs exceed $2,000 per 
election, be reported in accordance with 11 CFR 100.8(b)(4); and
    (ii) The amounts paid or incurred for legal or accounting services 
rendered to or on behalf of a candidate or political committee solely 
for the purpose of ensuring compliance with the provisions of the Act or 
chapter 95 or 96 of the Internal Revenue Code of 1954 paid by a 
corporation or labor organization which is the regular employer of the 
individual rendering such services, shall be reported in accordance with 
the provisions of part 104.
    (3) A separate segregated fund is subject to all other disclosure 
requirements of political committees as set forth in part 104.
    (f) Contribution limits. Separate segregated funds are subject to 
the contribution limitations for political committees set forth in part 
110. (See particularly Sec. 110.3).
    (g) Solicitations. Except as specifically provided in Secs. 114.6, 
114.7, and 114.8, a corporation and/or its separate segregated fund or a 
labor organization and/or its separate segregated fund is subject to the 
following limitations on solicitations:
    (1) A corporation or a separate segregated fund established by a 
corporation is prohibited from soliciting contributions to such fund 
from any person other than its stockholders and their families and its 
executive or administrative personnel and their families. A corporation 
may solicit the executive or administrative personnel of its 
subsidiaries, branches, divisions, and affiliates and their families. 
For purposes of this section, the factors set forth at 11 CFR 
100.5(g)(4) shall be used to determine whether an organization is an 
affiliate of a corporation.
    (2) A labor organization, or a separate segregated fund established 
by a labor organization is prohibited from soliciting contributions to 
such a fund from any person other than its members and executive or 
administrative personnel, and their families.
    (h) Accidental or inadvertent solicitation. Accidental or 
inadvertent solicitation by a corporation or labor organization, or the 
separate segregated fund of either, of persons apart from and beyond 
those whom it is permitted to solicit will not be deemed a violation, 
provided that such corporation or

[[Page 168]]

labor organization or separate segregated fund has used its best efforts 
to comply with the limitations regarding the persons it may solicit and 
that the method of solicitation is corrected forthwith after the 
discovery of such erroneous solicitation.
    (i) Communications paid for with voluntary contributions. A separate 
segregated fund may, using voluntary contributions, communicate with the 
general public, except that such communications may not solicit 
contributions to a separate segregated fund established by a 
corporation, labor organization, membership organization, cooperative, 
or corporation without capital stock, unless such solicitation is 
permitted under paragraph (g) of this section.
    (j) Acceptance of contributions. A separate segregated fund may 
accept contributions from persons otherwise permitted by law to make 
contributions.
    (k) Availability of methods. Any corporation, including its 
subsidiaries, branches, divisions, and affiliates, that uses a method of 
soliciting voluntary contributions or facilitating the making of 
voluntary contributions from its stockholders or executive or 
administrative personnel and their families, shall make that method 
available to a labor organization representing any members working for 
the corporation, its subsidiaries, branches, divisions, and affiliates 
for soliciting voluntary contributions or facilitating the making of 
voluntary contributions from its members and their families. Such method 
shall be made available on the written request of the labor organization 
and at a cost sufficient only to reimburse the corporation for the 
expenses incurred thereby. For example--
    (1) If a corporation, including its subsidiaries, branches, 
divisions, or affiliates utilizes a payroll deduction plan, check-off 
system, or other plan which deducts contributions from the dividend or 
payroll checks of stockholders or executive or administrative personnel, 
the corporation shall, upon written request of the labor organization, 
make that method available to members of the labor organization working 
for the corporation, its subsidiaries, branches, divisions, or 
affiliates, who wish to contribute to the separate segregated fund of 
the labor organization representing any members working for the 
corporation, or any of its subsidiaries, branches, divisions, or 
affiliates. The corporation shall make the payroll deduction plan 
available to the labor organization at a cost sufficient only to 
reimburse the corporation for the actual expenses incurred thereby.
    (2) If a corporation uses a computer for addressing envelopes or 
labels for a solicitation to its stockholders or executive or 
administrative personnel, the corporation shall, upon written request, 
program the computer to enable the labor organization to solicit its 
members. The corporation shall charge the labor organization a cost 
sufficient only to reimburse the corporation for the actual expenses 
incurred in programming the computers and the allocated cost of employee 
time relating to the work, and the materials used.
    (3) If a corporation uses corporate facilities, such as a company 
dining room or cafeteria, for meetings of stockholders or executive or 
administrative personnel at which solicitations are made, the 
corporation shall upon written request of the labor organization allow 
that labor organization to use existing corporate facilities for 
meetings to solicit its members. The labor organization shall be 
required to reimburse the corporation for any actual expenses incurred 
thereby, such as any increase in the overhead to the corporation and any 
cost involved in setting up the facilities.
    (4) If a corporation uses no method to solicit voluntary 
contributions or to facilitate the making of voluntary contributions 
from stockholders or executive or administrative personnel, it is not 
required by law to make any method available to the labor organization 
for its members. The corporation and the labor organization may agree 
upon making any lawful method available even though such agreement is 
not required by the Act.
    (5) The availability of methods of twice yearly solicitations is 
subject to the provisions of Sec. 114.6(e).
    (l) Methods permitted by law to labor organizations. Notwithstanding 
any other law, any method of soliciting voluntary contributions or of 
facilitating

[[Page 169]]

the making of voluntary contributions to a separate segregated fund 
established by a corporation, permitted by law to corporations with 
regard to stockholders and executive or administrative personnel, shall 
also be permitted to labor organizations with regard to their members 
and executive or administrative personnel.

(2 U.S.C. 441b, 437d(a)(8))

[41 FR 35955, Aug. 25, 1976, as amended at 45 FR 21210, Apr. 1, 1980; 48 
FR 26303, June 7, 1983; 48 FR 50508, Nov. 2, 1983; 54 FR 34114, Aug. 17, 
1989; 54 FR 48580, Nov. 24, 1989]



Sec. 114.6  Twice yearly solicitations.

    (a) A corporation and/or its separate segregated fund may make a 
total of two written solicitations for contributions to its separate 
segregated fund per calendar year of its employees other than 
stockholders, executive or administrative personnel, and their families. 
Employees as used in this section does not include former or retired 
employees who are not stockholders. Nothing in this paragraph shall 
limit the number of solicitations a corporation may make of its 
stockholders and executive or administrative personnel under 
Sec. 114.5(g).
    (b) A labor organization and/or its separate segregated fund may 
make a total of two written solicitations per calendar year of employees 
who are not members of the labor organization, executive or 
administrative personnel, or stockholders (and their families) of a 
corporation in which the labor organization represents members working 
for the corporation. Nothing in this paragraph shall limit the number of 
solicitations a labor organization may make of its members under 
Sec. 114.5(g).
    (c) Written solicitation. A solicitation under this section may be 
made only by mail addressed to stockholders, executive or administrative 
personnel, or employees at their residences. All written solicitations 
must inform the recipient--
    (1) Of the existence of the custodial arrangement described 
hereinafter;
    (2) That the corporation, labor organization, or the separate 
segregated fund of either cannot be informed of persons who do not make 
contributions; and
    (3) That persons who, in a calendar year make a single contribution 
of $50 or less, or multiple contributions aggregating $200 or less may 
maintain their anonymity by returning their contributions to the 
custodian.
    (d) The custodial arrangement. In order to maintain the anonymity of 
persons who do not wish to contribute and of persons who wish to respond 
with a single contribution of $50 or less, or multiple contributions 
aggregating $200 or less in a calendar year, and to satisfy the 
recordkeeping provisions, the corporation, labor organization, or 
separate segregated fund of either shall establish a custodial 
arrangement for collecting the contributions under this section.
    (1) The custodian for a separate segregated fund established by a 
corporation shall not be a stockholder, officer, executive or 
administrative personnel, or employee of the corporation, or an officer, 
or employee of its separate segregated fund. The custodian for a 
separate segregated fund established by a labor organization shall not 
be a member, officer or employee of the labor organization or its 
separate segregated fund.
    (2) The custodian shall keep the records of contributions received 
in accordance with the requirements of part 102 and shall also--
    (i) Establish a separate account and deposit contributions in 
accordance with the provisions of part 103;
    (ii) Provide the fund with the identification of any person who 
makes a single contribution of more than $50 and the identification of 
any person who makes multiple contributions aggregating more than $200. 
The custodian must provide this information within a reasonable time 
prior to the reporting date of the fund under part 104;
    (iii) Periodically forward all funds in the separate account, by 
check drawn on that account, to the separate segregated fund; and
    (iv) Treat all funds which appear to be illegal in accordance with 
the provisions of Sec. 103.3(b).
    (3) The custodian shall not--
    (i) Make the records of persons making a single contribution of $50 
or less, or multiple contributions aggregating

[[Page 170]]

$200 or less, in a calendar year, available to any person other than 
representatives of the Federal Election Commission or the Secretary of 
the Senate, as appropriate, and law enforcement officials or judicial 
bodies.
    (ii) Provide the corporation or labor organization or the separate 
segregated fund of either with any information pertaining to persons 
who, in a calendar year, make a single contribution of $50 or less or 
multiple contributions aggregating $200 or less except that the 
custodian may forward to the corporation, labor organization or separate 
segregated fund of either the total number of contributions received; or
    (iii) Provide the corporation, labor organization, or the separate 
segregated fund of either with any information pertaining to persons who 
have not contributed.
    (4) The corporation, labor organization, or the separate segregated 
fund of either shall provide the custodian with a list of all 
contributions, indicating the contributor's identification and amount 
contributed, which have been made directly to the separate segregated 
fund by any person within the group of persons solicited under this 
section.
    (5) Notwithstanding the prohibitions of paragraph (d)(1) of this 
section, the custodian may be employed by the separate segregated fund 
as its treasurer and may handle all of its contributions, provided that 
the custodian preserves the anonymity of the contributors as required by 
this section. The custodian shall file the required reports with the 
Federal Election Commission or the Secretary of the Senate, as 
appropriate. A custodian who serves as treasurer is subject to all of 
the duties, responsibilities, and liabilities of a treasurer under the 
Act, and may not participate in the decision making process whereby the 
separate segregated fund makes contributions and expenditures.
    (e) Availability of methods. (1) A corporation or labor organization 
or the separate segregated fund of either may not use a payroll 
deduction plan, a check-off system, or other plan which deducts 
contributions from an employee's paycheck as a method of facilitating 
the making of contributions under this section.
    (2) The twice yearly solicitation may only be used by a corporation 
or labor organization to solicit contributions to its separate 
segregated fund and may not be used for any other purpose.
    (3) A corporation is required to make available to a labor 
organization representing any members working for the corporation or its 
subsidiaries, branches, divisions, or affiliates the method which the 
corporation uses to solicit employees under this section during any 
calendar year.
    (i) If the corporation uses a method to solicit any employees under 
this section, the corporation is required to make that method available 
to the labor organization to solicit the employees of the corporation 
who are not represented by that labor organization, and the executive or 
administrative personnel and the stockholders of the corporation and 
their families.
    (ii) If the corporation does not wish to disclose the names and 
addresses of stockholders or employees, the corporation shall make the 
names and addresses of stockholders and employees available to an 
independent mailing service which shall be retained to make the mailing 
for both the corporation and the labor organization for any mailings 
under this section.
    (iii) If the corporation makes no solicitation of employees under 
this section during the calendar year, the corporation is not required 
to make any method or any names and addresses available to any labor 
organization.
    (4) The corporation shall notify the labor organization of its 
intention to make a solicitation under this section during a calendar 
year and of the method it will use, within a reasonable time prior to 
the solicitation, in order to allow the labor organization opportunity 
to make a similar solicitation.
    (5) If there are several labor organizations representing members 
employed at a single corporation, its subsidiaries, branches, divisions, 
or affiliates, the labor organizations, either singularly or jointly, 
may not make a combined total of more than two written solicitations per 
calendar year. A

[[Page 171]]

written solicitation may contain a request for contributions to each 
separate fund established by the various labor organizations making the 
combined mailing.

(2 U.S.C. 431(8)(B)(iii), 432(c)(3), 438(8)(a))

[41 FR 35955, Aug. 25, 1976, as amended at 45 FR 15125, Mar. 7, 1980; 61 
FR 3550, Feb. 1, 1996]



Sec. 114.7  Membership organizations, cooperatives, or corporations without capital stock.

    (a) Membership organizations, cooperatives, or corporations without 
capital stock, or separate segregated funds established by such persons 
may solicit contributions to the fund from members and executive or 
administrative personnel, and their families, of the organization, 
cooperative, or corporation without capital stock.
    (b) Nothing in this section waives the prohibition on contributions 
to the separate segregated fund by corporations, national banks, or 
labor organizations which are members of a membership organization, 
cooperative, or corporation without capital stock.
    (c) A trade association whose membership is made up in whole or in 
part of corporations is subject to the provisions of Sec. 114.8 when 
soliciting any stockholders or executive or administrative personnel of 
member corporations. A trade association which is a membership 
organization may solicit its noncorporate members under the provisions 
of this section.
    (d) The question of whether a professional organization is a 
corporation is determined by the law of the State in which the 
professional organization exists.
    (e) There is no limitation upon the number of times an organization 
under this section may solicit its members and executive or 
administrative personnel, and their families.
    (f) There is no limitation under this section on the method of 
solicitation or the method of facilitating the making of voluntary 
contributions which may be used.
    (g) A membership organization, cooperative, or corporation without 
capital stock and the separate segregated funds of the organizations are 
subject to the provisions in Sec. 114.5(a).
    (h) A membership organization, cooperative, or corporation without 
capital stock may communicate with its members and executive or 
administrative personnel, and their families, under the provisions of 
Sec. 114.3.
    (i) A mutual life insurance company may solicit its policyholders if 
the policyholders are members within the organizational structure.
    (j) A membership organization, including a trade association, 
cooperative, or corporation without capital stock or a separate 
segregated fund established by such organization may not solicit 
contributions from the separate segregated funds established by its 
members. The separate segregated fund established by a membership 
organization, including a trade association, cooperative, or corporation 
without capital stock may, however, accept unsolicited contributions 
from the separate segregated funds established by its members.
    (k)(1) A federated cooperative as defined in the Agricultural 
Marketing Act of 1929, 12 U.S.C. 1141j, or a rural cooperative eligible 
for assistance under chapter 31 or title 7 of the United States Code, 
may solicit the members of the cooperative's regional, state or local 
affiliates, provided that all of the political committees established, 
financed, maintained or controlled by the cooperative and its regional, 
State or local affiliates are considered one political committee for the 
purposes of the limitations in 11 CFR 110.1 and 110.2.
    (2) A cooperative as described in paragraph (k)(1) of this section 
may make communications to its members under the provisions of 11 CFR 
114.3.

(2 U.S.C. 441b, 437d(a)(8))

[41 FR 35955, Aug. 25, 1976, as amended at 48 FR 50508, Nov. 2, 1983; 58 
FR 45775, Aug. 30, 1993]



Sec. 114.8  Trade associations.

    (a) Definition. A trade association is generally a membership 
organization of persons engaging in a similar or related line of 
commerce, organized to promote and improve business conditions in that 
line of commerce and not to engage in a regular business of a kind 
ordinarily carried on for profit, and no part of the net earnings of

[[Page 172]]

which inures to the benefit of any member.
    (b) Prohibition. Nothing in this section waives the prohibition on 
contributions by corporations which are members of a trade association.
    (c) Limitations. A trade association or a separate segregated fund 
established by a trade association may solicit contributions from the 
stockholders and executive or administrative personnel of the member 
corporations of such trade association and the families of such 
stockholders and personnel if--
    (1) The member corporation involved has separately and specifically 
approved the solicitations; and
    (2) The member corporation has not approved a solicitation by any 
other trade association for the same calendar year.
    (d) Separate and specific approval. (1) The member corporation must 
knowingly and specifically approve any solicitation for a trade 
association, whether the solicitation is done by the trade association, 
its separate segregated fund, or the corporation or any of its 
personnel, for contributions to the trade association's separate 
segregated fund.
    (2) A copy of each approved request received by a trade association 
or its separate segregated fund shall be maintained by the trade 
association or its fund for three years from the year for which the 
approval is given.
    (3) The request for approval may contain a copy of solicitation 
materials which will be used if approval is granted. Such a mailing must 
specifically indicate the requirement of approval and the limitation of 
paragraph (c)(2) of this section, and approval must be granted to the 
trade association or its separate segregated fund prior to the time any 
solicitation is made of the stockholders or executive or administrative 
personnel by the trade association, its separate segregated fund, or by 
the corporation for contributions to the separate segregated fund of the 
trade association. (The request for approval may be sent to the 
representatives of the corporation with whom the trade association 
normally conducts the association's activities.)
    (4) A separate authorization specifically allowing a trade 
association to solicit its corporate member's stockholders, and 
executive or administrative personnel applies through the calendar year 
for which it is designated. A separate authorization by the corporate 
member must be designated for each year during which the solicitation is 
to occur. This authorization may be requested and may also be received 
prior to the calendar year in which the solicitation is to occur.
    (5) In its request to a member corporation, a trade association may 
indicate that it intends to solicit, for example, a limited class of the 
executive or administrative personnel of the member corporation, or only 
the executive or administrative personnel but not the stockholders of 
the member corporation. Moreover, in its approval, a member corporation 
may similarly limit any solicitation by the trade association or its 
separate segregated fund. In any event, a member corporation, once it 
has approved any solicitation--even to a limited extent--of its 
personnel or stockholders by a trade association or its separate 
segregated fund, is precluded from approving any such solicitation by 
another trade association or its separate segregated fund and the 
corporation and its personnel are precluded from soliciting the 
corporation's executive or administrative personnel or stockholders on 
behalf of another trade association or its separate segregated fund.
    (e) Solicitation. (1) After a trade association has obtained the 
approval required in paragraph (c) of this section, there is no limit on 
the number of times the trade association or its separate segregated 
fund may solicit the persons approved by the member corporation during 
the calendar year to which the approval applies. The member corporation 
may, however, in its approval limit the number of times solicitations 
may be made.
    (2) A member corporation which grants permission to a trade 
association to solicit is in no way restricted in its rights under 
Sec. 114.5(g) to solicit its stockholders or executive or administrative 
personnel and their families for contributions to the corporation's own 
separate segregated fund.

[[Page 173]]

    (3) There is no limitation on the method of soliciting voluntary 
contributions or the method of facilitating the making of voluntary 
contributions which a trade association may use. The member corporation 
may not use a payroll deduction or checkoff system for executive or 
administrative personnel contributing to the separate segregated fund of 
the trade association.
    (4) A trade association and/or its separate segregated fund is 
subject to the provisions of Sec. 114.5(a).
    (f) Solicitation of a subsidiary corporation. If a parent 
corporation is a member of the trade association but its subsidiary is 
not, the trade association or its separate segregated fund may only 
solicit the parent's executive or administrative personnel and their 
families and the parent's stockholders and their families; it may not 
solicit the subsidiary's executive or administrative personnel or 
stockholders or their families. If a subsidiary is a member of the trade 
association but the parent corporation is not, the trade association or 
its separate segregated fund may only solicit the subsidiary's executive 
or administrative personnel and their families and the subsidiary's 
stockholders and their families; it may not solicit the parent's 
executive or administrative personnel or stockholders or their families. 
If both parent and subsidiary are members of the trade association, the 
executive or administrative personnel and their families and the 
stockholders and their families of each may be solicited.
    (g) Federations of trade associations. (1) A federation of trade 
associations is an organization representing trade associations involved 
in the same or allied line of commerce. Such a federation may, subject 
to the following limitations, solicit the members of the federation's 
regional, State or local affiliates or members, provided that all of the 
political committees established, financed, maintained or controlled by 
the federation and its regional, State, or local affiliates or members 
are considered one political committee for the purposes of the 
limitations in Secs. 110.1 and 110.2. The factors set forth at 
Sec. 100.5(g)(4) shall be used to determine whether an entity is a 
regional, State or local affiliate of a federation of trade 
associations.
    (i) The federation and its member associations may engage in a joint 
solicitation; or
    (ii) The member association may delegate its solicitation rights to 
the federation.
    (2) A federation is subject to the provisions of this section when 
soliciting the stockholders and executive or administrative personnel of 
the corporate members of its member associations.
    (h) Communications other than solicitations. A trade association may 
make communications, other than solicitations, to its members and their 
families under the provisions of Sec. 114.3. When making communications 
to a member which is a corporation, the trade association may 
communicate with the representatives of the corporation with whom the 
trade association normally conducts the association's activities.
    (i) Trade association employees. (1) A trade association may 
communicate with its executive or administrative personnel and their 
families under the provisions of Sec. 114.3; a trade association may 
communicate with its other employees under the provisions of Sec. 114.4.
    (2) A trade association may solicit its executive or administrative 
personnel and their families under the provisions of Sec. 114.5(g); a 
trade association may solicit its other employees under the provisions 
of Sec. 114.6.

(2 U.S.C. 441b, 437d(a)(8))

[41 FR 35955, Aug. 25, 1976, as amended at 48 FR 48650, Oct. 20, 1983; 
48 FR 50508, Nov. 2, 1983; 54 FR 10622, Mar. 15, 1989; 54 FR 27154, June 
28, 1989, 54 FR 34114, Aug. 17, 1989; 54 FR 48580, Nov. 24, 1989; 55 FR 
2281, Jan. 23, 1990]



Sec. 114.9  Use of corporate or labor organization facilities and means of transportation.

    (a) Use of corporate facilities for individual volunteer activity by 
stockholders and employees. (1) Stockholders and employees of the 
corporation may, subject to the rules and practices of the corporation, 
make occasional, isolated, or incidental use of the facilities of a 
corporation for individual volunteer activity in connection with a 
Federal election and will be required to reimburse the corporation only 
to the extent that

[[Page 174]]

the overhead or operating costs of the corporation are increased. As 
used in this paragraph, occasional, isolated, or incidental use 
generally means--
    (i) When used by employees during working hours, an amount of 
activity during any particular work period which does not prevent the 
employee from completing the normal amount of work which that employee 
usually carries out during such work period; or
    (ii) When used by stockholders other than employees during the 
working period, such use does not interfere with the corporation in 
carrying out its normal activities; but
    (iii) Any such activity which does not exceed one hour per week or 
four hours per month, regardless of whether the activity is undertaken 
during or after normal working hours, shall be considered as occasional, 
isolated, or incidental use of the corporate facilities.
    (2) A stockholder or employee who makes more than occasional, 
isolated, or incidental use of a corporation's facilities for individual 
volunteer activities in connection with a Federal election is required 
to reimburse the corporation within a commercially reasonable time for 
the normal and usual rental charge, as defined in 11 CFR 
100.7(a)(1)(iii)(B), for the use of such facilities.
    (b) Use of labor organization facilities for individual volunteer 
activity by officials, members and employees. (1) The officials, 
members, and employees of a labor organization may, subject to the rules 
and practices of the labor organization, make occasional, isolated, or 
incidental use of the facilities of a labor organization for individual 
volunteer activity in connection with a Federal election and will be 
required to reimburse the labor organization only to the extent that the 
overhead or operating costs of the labor organization are increased. As 
used in this paragraph, occasional, isolated, or incidental use 
generally means--
    (i) When used by employees during working hours, an amount of 
activity during any particular work period which does not prevent the 
employee from completing the normal amount of work which that employee 
usually carries out during such work period; or
    (ii) When used by members other than employees during the working 
period, such use does not interfere with the labor organization in 
carrying out its normal activities; but
    (iii) Any such activity which does not exceed one hour per week or 
four hours per month, regardless of whether the activity is undertaken 
during or after normal working hours, shall be considered as occasional, 
isolated, or incidental use of the labor organization facilities.
    (2) The officials, members, and employees who make more than 
occasional, isolated, or incidental use of a labor organization's 
facilities for individual volunteer activities in connection with a 
Federal election are required to reimburse the labor organization within 
a commercially reasonable time for the normal and usual rental charge, 
as defined in 11 CFR 100.7(a)(1)(iii)(B), for the use of such 
facilities.
    (c) Use of corporate or labor organization facilities to produce 
materials. Any person who uses the facilities of a corporation or labor 
organization to produce materials in connection with a Federal election 
is required to reimburse the corporation or labor organization within a 
commercially reasonable time for the normal and usual charge for 
producing such materials in the commercial market.
    (d) Use or rental of corporate or labor organization facilities by 
other persons. Persons, other than those specifically mentioned in 
paragraphs (a) and (b) of this section, who make any use of corporate or 
labor organization facilities, such as by using telephones or 
typewriters or borrowing office furniture, for activity in connection 
with a Federal election are required to reimburse the corporation or 
labor organization within a commercially reasonable time in the amount 
of the normal and usual rental charge, as defined in 11 CFR 
100.7(a)(1)(iii)(B), for the use of the facilities.
    (e) Use of airplanes and other means of transportation. (1) A 
candidate, candidate's agent, or person traveling on behalf of a 
candidate who uses an airplane which is owned or leased by a corporation 
or labor organization other

[[Page 175]]

than a corporation or labor organization licensed to offer commercial 
services for travel in connection with a Federal election must, in 
advance, reimburse the corporation or labor organization--
    (i) In the case of travel to a city served by regularly scheduled 
commercial service, the first class air fare;
    (ii) In the case of travel to a city not served by a regularly 
scheduled commercial service, the usual charter rate.
    (2) A candidate, candidate's agent, or person traveling on behalf of 
a candidate who uses other means of transportation owned or leased by a 
corporation or labor organization must reimburse, within a commercially 
reasonable time, the corporation or labor organization at the normal and 
usual rental charge.

[41 FR 35955, Aug. 25, 1976, as amended at 45 FR 21210, Apr. 1, 1980]



Sec. 114.10  Nonprofit corporations exempt from the prohibition on independent expenditures.

    (a) Scope. This section describes those nonprofit corporations that 
qualify for an exemption from the prohibition on independent 
expenditures contained in 11 CFR 114.2. It sets out the procedures for 
demonstrating qualified nonprofit corporation status, for reporting 
independent expenditures, and for disclosing the potential use of 
donations for political purposes.
    (b) Definitions. For the purposes of this section--
    (1) The promotion of political ideas includes issue advocacy, 
election influencing activity, and research, training or educational 
activity that is expressly tied to the organization's political goals.
    (2) A corporation's express purpose includes:
    (i) The corporation's purpose as stated in its charter, articles of 
incorporation, or bylaws, except that a statement such as ``any lawful 
purpose,'' ``any lawful activity,'' or other comparable statement will 
not preclude a finding under paragraph (c) of this section that the 
corporation's only express purpose is the promotion of political ideas;
    (ii) The corporation's purpose as publicly stated by the corporation 
or its agents; and
    (iii) Purposes evidenced by activities in which the corporation 
actually engages.
    (3)(i) The term business activities includes but is not limited to:
    (A) Any provision of goods or services that results in income to the 
corporation; and
    (B) Advertising or promotional activity which results in income to 
the corporation, other than in the form of membership dues or donations.
    (ii) The term business activities does not include fundraising 
activities that are expressly described as requests for donations that 
may be used for political purposes, such as supporting or opposing 
candidates.
    (4) The term shareholder has the same meaning as the term 
stockholder, as defined in 11 CFR 114.1(h).
    (c) Qualified nonprofit corporations. For the purposes of this 
section, a qualified nonprofit corporation is a corporation that has all 
the characteristics set forth in paragraphs (c)(1) through (c)(5) of 
this section:
    (1) Its only express purpose is the promotion of political ideas, as 
defined in paragraph (b)(1) of this section;
    (2) It cannot engage in business activities;
    (3) It has:
    (i) No shareholders or other persons, other than employees and 
creditors with no ownership interest, affiliated in any way that could 
allow them to make a claim on the organization's assets or earnings; and
    (ii) No persons who are offered or who receive any benefit that is a 
disincentive for them to disassociate themselves with the corporation on 
the basis of the corporation's position on a political issue. Such 
benefits include but are not limited to:
    (A) Credit cards, insurance policies or savings plans; and
    (B) Training, education, or business information, other than that 
which is necessary to enable recipients to engage in the promotion of 
the group's political ideas.
    (4) It:
    (i) Was not established by a business corporation or labor 
organization;

[[Page 176]]

    (ii) Does not directly or indirectly accept donations of anything of 
value from business corporations, or labor organizations; and
    (iii) If unable, for good cause, to demonstrate through accounting 
records that paragraph (c)(4)(ii) of this section is satisfied, has a 
written policy against accepting donations from business corporations or 
labor organizations; and
    (5) It is described in 26 U.S.C. 501(c)(4).
    (d) Permitted corporate independent expenditures. (1) A qualified 
nonprofit corporation may make independent expenditures, as defined in 
11 CFR part 109, without violating the prohibitions against corporate 
expenditures contained in 11 CFR part 114.
    (2) Except as provided in paragraph (d)(1) of this section, 
qualified nonprofit corporations remain subject to the requirements and 
limitations of 11 CFR part 114, including those provisions prohibiting 
corporate contributions, whether monetary or in-kind.
    (e) Qualified nonprofit corporations; reporting requirements--(1) 
Procedures for demonstrating qualified nonprofit corporation status. If 
a corporation makes independent expenditures under paragraph (d)(1) of 
this section that aggregate in excess of $250 in a calendar year, the 
corporation shall certify, in accordance with paragraph (e)(1)(ii) of 
this section, that it is eligible for an exemption from the prohibitions 
against corporate expenditures contained in 11 CFR part 114.
    (i) This certification is due no later than the due date of the 
first independent expenditure report required under paragraph (e)(2). 
However, the corporation is not required to submit this certification 
prior to making independent expenditures.
    (ii) This certification may be made either as part of filing FEC 
Form 5 (independent expenditure form) or by submitting a letter in lieu 
of the form. The letter shall contain the name and address of the 
corporation and the signature and printed name of the individual filing 
the qualifying statement. The letter shall also certify that the 
corporation has the characteristics set forth in paragraphs (c)(1) 
through (c)(5) of this section.
    (2) Reporting independent expenditures. Qualified nonprofit 
corporations that make independent expenditures aggregating in excess of 
$250 in a calendar year shall file reports as required by 11 CFR 109.2.
    (f) Solicitation; disclosure of use of contributions for political 
purposes. Whenever a qualified nonprofit corporation solicits donations, 
the solicitation shall inform potential donors that their donations may 
be used for political purposes, such as supporting or opposing 
candidates.
    (g) Non-authorization notice. Qualified nonprofit corporations 
making independent expenditures under this section shall comply with the 
requirements of 11 CFR 110.11.

[60 FR 35305, July 6, 1995]



Sec. 114.11  Employee participation plans.

    (a) A corporation may establish and administer an employee 
participation plan (i.e. a trustee plan) which is a political giving 
program in which a corporation pays the cost of establishing and 
administering separate bank accounts for any employee who wishes to 
participate. The cost of administering and establishing includes the 
payment of costs for a payroll deduction or check-off plan and the cost 
of maintaining the separate bank accounts.
    (1) The employees must exercise complete control and discretion over 
the disbursement of the monies in their accounts.
    (2) The trustee, bank, or other administrator shall not provide the 
corporation or its separate segregated fund any report of the source or 
recipient of any contribution(s) or donation(s) into or out of any 
account or of the amount any employee has in an account.
    (3) The trustee, bank, or other administrator may provide the 
corporation or its separate segregated fund with a periodic report 
limited to information about the total number of employees in the 
program, the total number of funds in all the accounts combined, and the 
total amount of contributions made to all candidates and committees 
combined.

[[Page 177]]

    (4) No stockholder, director, or employee of the corporation or its 
separate segregated fund may exert pressure of any kind to induce 
participation in the program.
    (5) No stockholder, director, or employee of the corporation or its 
separate segregated fund may exercise any direction or control, either 
oral or written, over contributions by participants in the program to 
any candidate, group of candidates, political party, or other person.
    (b) An employee participation plan must be made available to all 
employees including members of a labor organization who are employees of 
the corporation. Communications about participation in the plan may be 
conducted by either the corporation or the labor organization or both.
    (c) A labor organization may establish and administer an employee 
participation plan subject to the above provisions, except that the cost 
shall be borne by the labor organization.
    (d) The method used to transmit employee or member contributions to 
the candidate or political committee may not in any manner identify the 
corporation or labor organization which established the employee 
particiption plan.

[41 FR 35955, Aug. 25, 1976]



Sec. 114.12  Incorporation of political committees; payment of fringe benefits.

    (a) An organization may incorporate and not be subject to the 
provisions of this part if the organization incorporates for liability 
purposes only, and if the organization is a political committee as 
defined in 11 CFR 100.5. Notwithstanding the corporate status of the 
political committee, the treasurer of an incorporated political 
committee remains personally responsible for carrying out their 
respective duties under the Act.
    (b) [Reserved]
    (c)(1) A corporation of labor organization may not pay the 
employer's share of the cost of fringe benefits, such as health and life 
insurance and retirement, for employees or members on leave-without-pay 
to participate in political campaigns of Federal candidates. The 
separate segregated fund of a corporation or a labor organization may 
pay the employer's share of fringe benefits, and such payment would be a 
contribution in-kind to the candidate. An employee or member may, out of 
unreimbursed personal funds, assure the continuity of his or her fringe 
benefits during absence from work for political campaigning, and such 
payment would not be a contribution in-kind.
    (2) Service credit for periods of leave-without-pay is not 
considered compensation for purposes of this section if the employer 
normally gives identical treatment to employees placed on leave-without-
pay for nonpolitical purposes.

[41 FR 35955, Aug. 25, 1976, as amended at 45 FR 21210, Apr. 1, 1980; 60 
FR 31382, June 15, 1995; 60 FR 64279, Dec. 14, 1995]



Sec. 114.13  Use of meeting rooms.

    Notwithstanding any other provisions of part 114, a corporation or 
labor organization which customarily makes its meeting rooms available 
to clubs, civic or community organizations, or other groups may make 
such facilities available to a political committee or candidate if the 
meeting rooms are made available to any candidate or political committee 
upon request and on the same terms given to other groups using the 
meeting rooms.

[60 FR 64279, Dec. 14, 1995]



PART 115--FEDERAL CONTRACTORS--Table of Contents




Sec.
115.1  Definitions.
115.2  Prohibition.
115.3  Corporations, labor organizations, membership organizations, 
          cooperatives, and corporations without capital stock.
115.4  Partnerships.
115.5  Individuals and sole proprietors.
115.6  Employee contributions or expenditures.

    Authority: Sec. 310(8), Pub. L. 92-225, added by sec. 208, Pub. L. 
93-443, 88 Stat. 1279, and amended by secs. 105 and 107(a)(1), Pub. L. 
94-283, 90 Stat. 481 (2) U.S.C. 437d(a)(8)), and sec. 315(a)(10), Pub. 
L. 92-225, 86 Stat. 16, amended by secs. 208 (a) and (c)(10), and 209 
(a)(1) and (b)(1), Pub. L. 93-443, 88 Stat. 1279, 1287, and sec. 105, 
Pub. L. 94-283, 90 Stat. 481 (2 U.S.C. 438(a)(10)).

    Source: 41 FR 35963, Aug. 25, 1976, unless otherwise noted.

[[Page 178]]



Sec. 115.1  Definitions.

    (a) A Federal contractor means a person, as defined in 11 CFR 100.10 
who--
    (1) Enters into any contract with the United States or any 
department or agency thereof either for--
    (i) The rendition of personal services; or
    (ii) Furnishing any material, supplies, or equipment; or
    (iii) Selling any land or buildings;
    (2) If the payment for the performance of the contract or payment 
for the material, supplies, equipment, land, or building is to be made 
in whole or in part from funds appropriated by the Congress.
    (b) The period during which a person is prohibited from making a 
contribution or expenditure is the time between the earlier of the 
commencement of negotiations or when the requests for proposals are sent 
out, and the later of--
    (1) The completion of performance under; or
    (2) The termination of negotiations for, the contract or furnishing 
of material, supplies, equipment, land, or buildings, or the rendition 
of personal services.
    (c) For purposes of this part, a contract includes
    (1) A sole source, negotiated, or advertised procurement conducted 
by the United States or any of its agencies;
    (2) A written (except as otherwise authorized) contract, between any 
person and the United States or any of its departments or agencies, for 
the furnishing of personal property, real property, or personal 
services; and
    (3) Any modification of a contract.
    (d) The basic contractual relationship must be with the United 
States or any department or agency thereof. A person who contracts with 
a State or local jurisdiction or entity other than the United States or 
any department or agency thereof is not subject to this part, even if 
the State or local jurisdiction or entity is funded in whole or in part 
from funds appropriated by the Congress. The third party beneficiary of 
a Federal contract is not subject to the prohibitions of this part.
    (e) The term labor organization has the meaning given it by 
Sec. 114.1(a).

[41 FR 35963, Aug. 25, 1976, as amended at 45 FR 21210, Apr. 1, 1980]



Sec. 115.2  Prohibition.

    (a) It shall be unlawful for a Federal contractor, as defined in 
Sec. 115.1(a), to make, either directly or indirectly, any contribution 
or expenditure of money or other thing of value, or to promise expressly 
or impliedly to make any such contribution or expenditure to any 
political party, committee, or candidate for Federal office or to any 
person for any political purpose or use. This prohibition does not apply 
to contributions or expenditures in connection with State or local 
elections.
    (b) This prohibition runs for the time period set forth in 
Sec. 115.1(b).
    (c) It shall be unlawful for any person knowingly to solicit any 
such contribution from a Federal contractor.



Sec. 115.3  Corporations, labor organizations, membership organizations, cooperatives, and corporations without capital stock.

    (a) Corporations, labor organizations, membership organizations, 
cooperatives, and corporations without capital stock to which this part 
applies may expend treasury monies to establish, administer, and solicit 
contributions to any separate segregated fund subject to the provisions 
of part 114. Each specific prohibition, allowance, and duty applicable 
to a corporation, labor organization, or separate segregated fund under 
part 114 applies to a corporation, labor organization, or separate 
segregated fund to which this part applies.
    (b) The question of whether a professional organization is a 
corporation is determined by the law of the State in which the 
professional organization exists.



Sec. 115.4  Partnerships.

    (a) The assets of a partnership which is a Federal contractor may 
not be used to make contributions or expenditures in connection with 
Federal elections.
    (b) Individual partners may make contributions or expenditures in 
their own names from their personal assets.

[[Page 179]]

    (c) Nothing in this part prohibits an employee of a partnership 
which is a Federal contractor from making contributions or expenditures 
from his or her personal assets.



Sec. 115.5  Individuals and sole proprietors.

    Individuals or sole proprietors who are Federal contractors are 
prohibited from making contributions or expenditures from their 
business, personal, or other funds under their dominion or control. The 
spouse of an individual or sole proprietor who is a Federal contractor 
is not prohibited from making a personal contribution or expenditure in 
his or her name.



Sec. 115.6  Employee contributions or expenditures.

    Nothing in this part shall prohibit the stockholders, officers, or 
employees of a corporation, the employees, officers, or members of an 
unincorporated association, cooperative, membership organization, labor 
organization, or other group or organization which is a Federal 
contractor from making contributions or expenditures from their personal 
assets.



PART 116--DEBTS OWED BY CANDIDATES AND POLITICAL COMMITTEES--Table of Contents




Sec.
116.1  Definitions.
116.2  Debts owed by terminating committees, ongoing committees, and 
          authorized committees.
116.3  Extensions of credit by commercial vendors.
116.4  Forgiveness or settlement of debts owed to commercial vendors.
116.5  Advances by committee staff and other individuals.
116.6  Salary payments owed to employees.
116.7  Debt settlement plans filed by terminating committees; Commission 
          review.
116.8  Creditor forgiveness of debts owed by ongoing committees; 
          Commission review.
116.9  Creditors that cannot be found or that are out of business.
116.10  Disputed debts.

    Authority: 2 U.S.C. 433(d), 434(b)(8), 438(a)(8), 441a, 441b, and 
451.

    Source: 55 FR 26386, June 27, 1990, unless otherwise noted.



Sec. 116.1  Definitions.

    (a) Terminating committee. For purposes of this part, terminating 
committee means any political committee that is winding down its 
political activities in preparation for filing a termination report, and 
that would be able to terminate under 11 CFR 102.3 except that it has 
outstanding debts or obligations. A political committee will be 
considered to be winding down its political activities if it has ceased 
to make or accept contributions and expenditures, other than 
contributions accepted for debt retirement purposes and expenditures 
representing payments of debts or obligations previously incurred or 
payments for the costs associated with the termination of political 
activity, such as the costs of complying with the post election 
requirements of the Act, if applicable, and other necessary 
administrative costs associated with winding down a campaign or winding 
down committee activities, including office space rental, staff salaries 
and office supplies.
    (b) Ongoing committee. For purposes of this part, ongoing committee 
means any political committee that has not terminated and does not 
qualify as a terminating committee.
    (c) Commercial vendor. For purposes of this part, commercial vendor 
means any persons providing goods or services to a candidate or 
political committee whose usual and normal business involves the sale, 
rental, lease or provision of those goods or services.
    (d) Disputed debt. For purposes of this part, disputed debt means an 
actual or potential debt or obligation owed by a political committee, 
including an obligation arising from a written contract, promise or 
agreement to make an expenditure, where there is a bona fide 
disagreement between the creditor and the political committee as to the 
existence or amount of the obligation owed by the political committee.
    (e) Extension of credit. For purposes of this part, extension of 
credit includes but is not limited to:
    (1) Any agreement between the creditor and political committee that 
full payment is not due until after the creditor provides goods or 
services to the political committee;

[[Page 180]]

    (2) Any agreement between the creditor and the political committee 
that the political committee will have additional time to pay the 
creditor beyond the previously agreed to due date; and
    (3) The failure of the political committee to make full payment to 
the creditor by a previously agreed to due date.
    (f) Creditor. For purposes of this part, creditor means any person 
or entity to whom a debt is owed.

[55 FR 26386, June 27, 1990; 55 FR 34007, Aug. 20, 1990]



Sec. 116.2  Debts owed by terminating committees, ongoing committees, and authorized committees.

    (a) Terminating committees. A terminating committee may settle 
outstanding debts provided that the terminating committee files a debt 
settlement plan and the requirements of 11 CFR 116.7 are satisfied. The 
Commission will review each debt settlement plan filed to determine 
whether or not the terminating committee appears to have complied with 
the requirements set forth in this part, and whether or not the proposed 
debt settlement plan would result in an apparent violation of the Act or 
the Commission's regulations.
    (b) Ongoing committees. Ongoing committees shall not settle any 
outstanding debts for less than the entire amount owed, but may request 
a Commission determination that such debts are not payable under 11 CFR 
116.9, and may resolve disputed debts under 11 CFR 116.10. Creditors may 
forgive debts owed by ongoing committees under the limited circumstances 
provided in 11 CFR 116.8.
    (c) Authorized committees. (1) An authorized committee shall not 
settle any outstanding debts for less than the entire amount owed if any 
other authorized committee of the same candidate has permissible funds 
available to pay part or all of the amount outstanding. Except as 
provided in paragraph (c)(3), of this section, an authorized committee 
shall not terminate under 11 CFR 102.3 if--
    (i) It has any outstanding debts or obligations; or
    (ii) It has any funds or assets available to pay part or all of the 
outstanding debts or obligations owed by another authorized committee of 
the same candidate and that other authorized committee is unable to pay 
such debts or obligations.
    (2) No transfers of funds may be made from a candidate's authorized 
committee to another authorized committee of the same candidate if the 
transferor committee has net debts outstanding at the time of the 
transfer under the formula described in 11 CFR 110.1(b)(3)(ii).
    (3) An authorized committee that qualifies as a terminating 
committee may assign debts to another authorized committee of the same 
candidate to the extent permitted under applicable state law provided 
that the authorized committee assigning the debts has no cash on hand or 
assets available to pay any part of the outstanding debts, and provided 
that the authorized committee assigning the debts was not organized to 
further the candidate's campaign in an election not yet held. If a 
Presidential candidate elects to receive federal funds pursuant to 11 
CFR part 9001 et seq. or 11 CFR part 9031 et seq., the authorized 
committee(s) of the Presidential candidate shall not assign debts or 
receive assigned debts until after the authorized committee(s) or the 
Presidential candidate has made all required repayments pursuant to 11 
CFR parts 9007 and 9038 and has paid all civil penalties pursuant to 2 
U.S.C. 437g. An authorized committee that has assigned all its 
outstanding debts may terminate if--
    (i) The authorized committee that has assigned the debts otherwise 
qualifies for termination under 11 CFR 102.3; and
    (ii) The authorized committee that received the assigned debts 
notifies the Commission in writing that it has assumed the obligation to 
pay the entire amount owed and that it has assumed the obligation to 
report the debts, and any contributions received for retirement of the 
assigned debts, in accordance with 11 CFR part 104. The assigned debts 
shall be disclosed on a separate schedule of debts and obligations 
attached to the authorized committee's reports. Contributions received 
for retirement of the assigned debts shall be

[[Page 181]]

disclosed on a separate schedule of receipts attached to the authorized 
committee's reports. See 11 CFR 110.1 (b)(3) and (b)(4) and 110.2 (b)(3) 
and (b)(4). The authorized committee that has assigned the debts shall 
notify each creditor in writing of the assignment no later than thirty 
days before the assignment takes effect and shall include the name and 
address of the authorized committee that will receive the assigned 
debts.



Sec. 116.3  Extensions of credit by commercial vendors.

    (a) Unincorporated vendor. A commercial vendor that is not a 
corporation may extend credit to a candidate, a political committee or 
another person on behalf of a candidate or political committee. An 
extension of credit will not be considered a contribution to the 
candidate or political committee provided that the credit is extended in 
the ordinary course of the commercial vendor's business and the terms 
are substantially similar to extensions of credit to nonpolitical 
debtors that are of similar risk and size of obligation.
    (b) Incorporated vendor. A corporation in its capacity as a 
commercial vendor may extend credit to a candidate, a political 
committee or another person on behalf of a candidate or political 
committee provided that the credit is extended in the ordinary course of 
the corporation's business and the terms are substantially similar to 
extensions of credit to nonpolitical debtors that are of similar risk 
and size of obligation.
    (c) Ordinary course of business. In determining whether credit was 
extended in the ordinary course of business, the Commission will 
consider--
    (1) Whether the commercial vendor followed its established 
procedures and its past practice in approving the extension of credit;
    (2) Whether the commercial vendor received prompt payment in full if 
it previously extended credit to the same candidate or political 
committee; and
    (3) Whether the extension of credit conformed to the usual and 
normal practice in the commercial vendor's trade or industry.
    (d) Extension of credit by regulated industries. The Commission may 
rely on the regulations prescribed by the Federal Communications 
Commission, the Interstate Commerce Commission, and the Department of 
Transportation on behalf of the Civil Aeronautics Board, issued pursuant 
to 2 U.S.C. 451 and any other regulations prescribed by other Federal 
agencies to determine whether extensions of credit by the entities 
regulated by those Federal agencies were made in the ordinary course of 
business.



Sec. 116.4  Forgiveness or settlement of debts owed to commercial vendors.

    (a) Unincorporated vendor. A commercial vendor that is not a 
corporation may forgive or settle a debt incurred by a candidate, a 
political committee or another person on behalf of a candidate or 
political committee for less than the entire amount owed on the debt. 
The amount forgiven will not be considered a contribution by the 
commercial vendor to the candidate or political committee if--
    (1) The amount forgiven is exempted from the definition of 
contribution in 11 CFR 100.7(b); or
    (2) The commercial vendor has treated the debt in a commercially 
reasonable manner and the requirements of 11 CFR 116.7 or 116.8, as 
appropriate, are satisfied.
    (b) Incorporated vendor. A corporation may not forgive or settle a 
debt incurred by a candidate, a political committee or another person on 
behalf of a candidate or political committee for less than the entire 
amount owed on the debt unless--
    (1) The amount forgiven is exempted from the definition of 
contribution in 11 CFR 100.7(b); or
    (2) The corporation has treated the debt in a commercially 
reasonable manner and the requirements of 11 CFR 116.7 or 116.8, as 
appropriate, are satisfied.
    (c) Reasonable efforts by a political committee. A debt or 
obligation owed by a candidate or a political committee may be totally 
forgiven (see 11 CFR 116.8), or settled (see 11 CFR 116.7), provided 
that--
    (1) The amount forgiven is exempted from the definition of 
contribution in 11 CFR 100.7(b); or

[[Page 182]]

    (2) The candidate and the political committee have undertaken all 
reasonable efforts to satisfy the outstanding debt and the requirements 
of 11 CFR 116.7 or 116.8, as appropriate, including the submission of 
the information specified in those sections and Commission review, are 
satisfied.
    (d) Commercially reasonable. The Commission will determine that a 
debt settlement between a political committee and a commercial vendor is 
commercially reasonable if--
    (1) The initial extension of credit was made in accordance with 11 
CFR 116.3;
    (2) The candidate or political committee has undertaken all 
reasonable efforts to satisfy the outstanding debt. Such efforts may 
include, but are not limited to, the following--
    (i) Engaging in fundraising efforts;
    (ii) Reducing overhead and administrative costs; and
    (iii) Liquidating assets; and
    (3) The commercial vendor has pursued its remedies as vigorously as 
it would pursue its remedies against a nonpolitical debtor in similar 
circumstances. Such remedies may include, but are not limited to, the 
following--
    (i) Oral and written requests for payment;
    (ii) Withholding delivery of additional goods or services until 
overdue debts are satisfied;
    (iii) Imposition of additional charges or penalties for late 
payment;
    (iv) Referral of overdue debts to a commercial debt collection 
service; and
    (v) Litigation.
    (e) Settlement or forgiveness not required. The provisions of this 
part shall not be construed to require a commercial vendor to forgive or 
settle the debt for less than the entire amount owed.
    (f) Reporting. The political committee shall continue to report the 
debt in accordance with 11 CFR 104.3(d) and 104.11 until the Commission 
has completed a review of the debt settlement plan pursuant to 11 CFR 
116.7(f) or until the Commission has completed a review of the request 
to forgive the debt pursuant to 11 CFR 116.8, or until the political 
committee pays the debt, whichever occurs first.



Sec. 116.5  Advances by committee staff and other individuals.

    (a) Scope. This section applies to individuals who are not acting as 
commercial vendors. Individuals who are acting as commercial vendors 
shall follow the requirements of 11 CFR 116.3 and 116.4.
    (b) Treatment as contributions. The payment by an individual from 
his or her personal funds, including a personal credit card, for the 
costs incurred in providing goods or services to, or obtaining goods or 
services that are used by or on behalf of, a candidate or a political 
committee is a contribution unless the payment is exempted from the 
definition of contribution under 11 CFR 100.7(b)(8). If the payment is 
not exempted under 11 CFR 100.7(b)(8), it shall be considered a 
contribution by the individual unless--
    (1) The payment is for the individual's transportation expenses 
incurred while traveling on behalf of a candidate or political committee 
of a political party or for usual and normal subsistence expenses 
incurred by an individual, other than a volunteer, while traveling on 
behalf of a candidate or political committee of a political party; and
    (2) The individual is reimbursed within sixty days after the closing 
date of the billing statement on which the charges first appear if the 
payment was made using a personal credit card, or within thirty days 
after the date on which the expenses were incurred if a personal credit 
card was not used. For purposes of this section, the closing date shall 
be the date indicated on the billing statement which serves as the 
cutoff date for determining which charges are included on that billing 
statement. In addition, ``subsistence expenses'' include only 
expenditures for personal living expenses related to a particular 
individual traveling on committee business, such as food or lodging.
    (c) Treatment as debts. A political committee shall treat the 
obligation arising from a payment described in paragraph (b) of this 
section as an outstanding debt until reimbursed.

[[Page 183]]

    (d) Settlement or forgiveness of the debt. The individual and the 
political committee may agree to the total forgiveness of the debt (See 
11 CFR 116.8) or a settlement of the debt for less than the entire 
amount owed (See 11 CFR 116.7), provided that the requirements of 11 CFR 
116.7 or 116.8, as appropriate, including the submission of the 
information specified in these sections and Commission review, are 
satisfied. The provisions of this part shall not be construed to require 
the individual to forgive or settle the debt for less than the entire 
amount owed.
    (e) Reporting. The political committee shall continue to report the 
obligation arising from the payment as a debt in accordance with 11 CFR 
104.3(d) and 104.11 until the Commission has completed a review of the 
debt settlement plan pursuant to 11 CFR 116.7(f) or until the Commission 
has completed a review of the request to forgive the debt pursuant to 11 
CFR 116.8, or until the political committee pays the debt, whichever 
occurs first.

[55 FR 26386, June 27, 1990, as amended at 56 FR 35911, July 29, 1991]



Sec. 116.6  Salary payments owed to employees.

    (a) Treatment as debts or volunteer services. If a political 
committee does not pay an employee for services rendered to the 
political committee in accordance with an employment contract or a 
formal or informal agreement to do so, the unpaid amount either may be 
treated as a debt owed by the political committee to the employee or, 
provided that the employee signs a written statement agreeing to be 
considered a volunteer, converted to a volunteer services arrangement 
under 11 CFR 100.7(b)(3). The unpaid amount shall not be treated as a 
contribution under 11 CFR 100.7.
    (b) Settlement or forgiveness of the debt. If the unpaid amount is 
treated as a debt, the employee and the political committee may agree to 
a settlement of the debt for less than the entire amount owed pursuant 
to 11 CFR 116.7. The provisions of this part shall not be construed to 
require the employee to settle the debt for less than the entire amount 
owed.
    (c) Reporting. If the unpaid amount is treated as a debt, the 
political committee shall continue to report the debt in accordance with 
11 CFR 104.3(d) and 104.11 until the Commission has completed a review 
of the debt settlement plan pursuant to 11 CFR 116.7(f) or until the 
employee agrees to be considered a volunteer, or until the political 
committee pays the debt, whichever occurs first.



Sec. 116.7  Debt settlement plans filed by terminating committees; Commission review.

    (a) Procedures for filing debt settlement plans. Every terminating 
committee as defined in 11 CFR 116.1(a) shall file at least one debt 
settlement plan with the Commission prior to filing its termination 
report under 11 CFR 102.3. The terminating committee shall file a debt 
settlement plan after the creditors included in the debt settlement plan 
have agreed to the settlement or forgiveness of the particular debt(s) 
owed to each of them. The terminating committee shall not make any 
payments to the creditors included in the debt settlement plan until 
completion of Commission review. The Commission encourages terminating 
committees to include as many debt settlement agreements as possible in 
a debt settlement plan. The terminating committee shall not file its 
termination report under 11 CFR 102.3 and shall not terminate until each 
debt or obligation owed either:
    (1) Has been paid in full;
    (2) Has been settled and the requirements of this section, including 
Commission review, have been satisfied;
    (3) Has been forgiven by the creditor and the requirements of 11 CFR 
116.8, including Commission review, have been satisfied;
    (4) Has been determined not to be payable pursuant to 11 CFR 116.9; 
or
    (5) Has been otherwise extinguished or discharged.
    (b) Debts subject to settlement. Debts and obligations subject to 
the debt settlement and Commission review requirements and procedures 
set forth in this section include:
    (1) Amounts owed to commercial vendors (See 11 CFR 116.3 and 116.4);

[[Page 184]]

    (2) Debts arising from advances by committee staff and other 
individuals (See 11 CFR 116.5);
    (3) Salary owed to committee employees (See 11 CFR 116.6); and
    (4) Debts arising from loans from political committees or 
individuals, including candidates, to the extent permitted under 11 CFR 
part 110.
    (c) Debts that shall not be settled; Disputed debts.
    (1) Debts and obligations that shall not be forgiven or settled for 
less than the entire amount owed include repayment obligations pursuant 
to 11 CFR 9007.2, 9008.10, 9008.11, 9038.2 or 9038.3 of funds received 
from the Presidential Election Campaign Fund or the Presidential Primary 
Matching Payment Account.
    (2) Disputed debts are not subject to the debt settlement and 
Commission review requirements and procedures. (See CFR 116.10).
    (d) Reporting. The terminating committee shall continue to report 
each outstanding debt or obligation included in a debt settlement plan 
in accordance with 11 CFR 104.3(d) and 104.11 until the Commission has 
completed a review of the debt settlement plan pursuant to paragraph (f) 
of this section. The terminating committee shall continue to report all 
remaining debts and obligations not included in the debt settlement plan 
in accordance with 11 CFR 104.3 and 104.11.
    (e) Contents of debt settlement plans. (1) The debt settlement plan 
shall provide the following information on each debt covered by the 
plan--
    (i) The terms of the initial extension of credit and a description 
of the terms under which the creditor has extended credit to 
nonpolitical debtors of similar risk and size of obligation;
    (ii) A description of the efforts made by the candidate or the 
terminating committee to satisfy the debt;
    (iii) A description of the remedies pursued by the creditor to 
obtain payment of the debt and a comparison to the remedies customarily 
pursued by the creditor in similar circumstances involving nonpolitical 
debtors; and
    (iv) The terms of the debt settlement and a comparison to the terms 
of the creditor's other debt settlements involving nonpolitical debtors 
in similar circumstances, if any.
    (2) Each debt settlement plan filed under this section shall include 
a signed statement from each creditor covered indicating agreement to 
the terms of the settlement of the debt owed to that creditor.
    (3) The debt settlement plan shall include a statement as to whether 
the terminating committee has sufficient cash on hand to pay the total 
amount indicated in the debt settlement plan, and if not, a statement as 
to what steps the terminating committee will take to obtain the funds 
needed to make the payments.
    (4) If a debt settlement plan does not include settlements for all 
of the terminating committee's outstanding debts and obligations, the 
debt settlement plan shall include a separate list of all of the 
terminating committee's remaining debts and obligations, including debts 
that are not subject to debt settlement as set forth in paragraph (c) of 
this section. The debt settlement plan shall indicate--
    (i) Whether the terminating committee intends to pay the entire 
amount still owed on each remaining debt or obligation or to settle such 
debts and obligations, and if settlement is contemplated, the terms that 
were or will be offered to the creditor(s); and
    (ii) Whether the terminating committee has sufficient cash on hand 
to pay such remaining debts and obligations, or to pay a lesser portion 
of such amounts, and if not, what steps the terminating committee will 
take to obtain the funds needed to make such payments.
    (5) If the terminating committee expects to have residual funds or 
assets after disposing of all its outstanding debts and obligations, the 
debt settlement plan shall include a statement as to the purpose for 
which such residual funds or assets will be used. See 11 CFR 
110.1(b)(3)(iii) regarding contributions received to pay net debts 
outstanding owed by authorized committees.
    (6) The political committee filing the debt settlement plan shall 
demonstrate in the debt settlement plan that such political committee 
qualifies as a terminating committee under 11 CFR

[[Page 185]]

116.1(a) and shall state when the political committee expects to file a 
termination report under 11 CFR 102.3.
    (7) Upon the Commission's request, the candidate, the terminating 
committee or the creditor shall provide such additional information as 
the Commission may require to review the debt settlement plan. The 
Commission may also require the submission of additional debt settlement 
agreements prior to Commission review of the debt settlement plan.
    (f) Commission review of debt settlement plans. In reviewing the 
debt settlement plan, the Commission will consider--
    (1) The information provided by the terminating committee and the 
creditors under this section;
    (2) The amount of each debt that remains unpaid and the length of 
time each debt has been overdue;
    (3) The amount and percentage of each debt that would be forgiven 
under the plan;
    (4) The total amount of debts and obligations owed by the 
terminating committee to all creditors, compared to the total amount of 
cash on hand and other amounts available to pay those debts and 
obligations;
    (5) The year to date expenditures and receipts of the terminating 
committee; and
    (6) Whether the total percentage that was or will be repaid on any 
loans made by the candidate to the terminating committee is comparable 
to the total percentage that was or will be paid to other creditors.
    (g) Debts dischargeable in bankruptcy. If a terminating committee is 
released from debts or obligations pursuant to a discharge under 11 
U.S.C. chapter 7, the terminating committee's debt settlement plan shall 
include a copy of the order issued by the Bankruptcy Court of the United 
States so indicating, and a list of all debts and obligations from which 
the terminating committee is released, in lieu of the information 
specified in paragraphs (e)(1), (e)(2), and (e)(3) of this section.



Sec. 116.8  Creditor forgiveness of debts owed by ongoing committees; Commission review.

    (a) General requirements. A creditor may forgive the outstanding 
balance of a debt owed by an ongoing committee if the creditor and the 
ongoing committee have satisfied the requirements of 11 CFR 116.3 or 
116.5, as appropriate, regarding extensions of credit by commercial 
vendors and advances by committee staff and other individuals, and the 
debt has been outstanding for at least twenty-four months, and--
    (1) The creditor has exercised reasonable diligence in attempting to 
locate the ongoing committee and has been unable to do so; or
    (2) The ongoing committee--
    (i) Does not have sufficient cash on hand to pay the creditor;
    (ii) Has receipts of less than $1000 during the previous twenty-four 
months;
    (iii) Has disbursements of less than $1000 during the previous 
twenty-four months; and
    (iv) Owes debts to other creditors of such magnitude that the 
creditor could reasonably conclude that the ongoing committee will not 
pay this particular debt.
    (b) Procedures for forgiving debts. A creditor that intends to 
forgive a debt owed by an ongoing committee shall notify the Commission 
by letter of its intent. The letter shall demonstrate that the 
requirements set forth in paragraph (a) of this section are satisfied. 
The letter shall provide the following information--
    (1) The terms of the initial extension of credit and a description 
of the terms under which the creditor has extended credit to 
nonpolitical debtors of similar risk and size of obligation;
    (2) A description of the efforts made by the candidate or the 
ongoing committee to satisfy the debt;
    (3) A description of the remedies pursued by the creditor to obtain 
payment of the debt and a comparison to the remedies customarily pursued 
by the creditor in similar circumstances involving nonpolitical debtors; 
and
    (4) An indication that the creditor has forgiven other debts 
involving nonpolitical debtors in similar circumstances, if any.
    (c) Commission review. Upon the Commission's request, the ongoing 
committee or the creditor shall provide such additional information as 
the Commission may require to review the

[[Page 186]]

creditor's request. The Commission will review each request to forgive a 
debt to determine whether the candidate, the ongoing committee, and the 
creditor have complied with the requirements of 11 CFR part 116, and 
whether or not the forgiveness of the debt would result in an apparent 
violation of the Act or the Commission's regulations.



Sec. 116.9  Creditors that cannot be found or that are out of business.

    (a) General requirements. A political committee may request that the 
Commission determine that a debt owed to a creditor is not payable for 
purposes of the Act if the debt has been outstanding for at least 
twenty-four months, and the requirements of paragraph (b) or (c) of this 
section, as appropriate, have been satisfied, and--
    (1) The creditor has gone out of business and no other entity has a 
right to be paid the amount owed; or
    (2) The political committee has exercised reasonable diligence in 
attempting to locate the creditor and has been unable to do so. 
Reasonable diligence in attempting to locate the creditor means the 
political committee has attempted to ascertain the current address and 
telephone number, and has attempted to contact the creditor by 
registered or certified mail, and either in person or by telephone.
    (b) Terminating committees. If the political committee making the 
request is a terminating committee, the terminating committee shall 
include the request in a debt settlement plan filed with the Commission, 
and shall demonstrate that the requirements of 11 CFR 116.3, 116.5 or 
116.6, as appropriate, and 116.9(a) are satisfied. The terminating 
committee shall continue to disclose the debt on its schedules of 
outstanding debts and obligations until the Commission has completed its 
review of the debt settlement plan pursuant to 11 CFR 116.7(f) and has 
determined that the debt is not payable for purposes of the Act.
    (c) Ongoing committees. If the political committee making the 
request is an ongoing committee, the ongoing committee shall make the 
request in writing and shall demonstrate that the requirements of 11 CFR 
116.3, 116.5 or 116.6, as appropriate, and 116.9(a) are satisfied. The 
Commission will review the request to determine whether the ongoing 
committee and the creditor have complied with the requirements of 11 CFR 
part 116, and to determine whether reporting the debt as not payable 
would result in an apparent violation of the Act or the Commission's 
regulations. The ongoing committee shall continue to disclose the debt 
on its schedules of outstanding debts and obligations until the 
Commission has completed its review of the request and has determined 
that the debt is not payable for purposes of the Act.
    (d) Reporting. Upon notification that the Commission has determined 
that the debt is not payable for purposes of the Act, the political 
committee may list the debt as not payable on the next due report. 
Notwithstanding 11 CFR 104.11, the debt does not have to be included in 
subsequent reports unless the status of the debt changes. The presence 
of a debt that the Commission has determined is not payable shall not 
bar the political committee from terminating its registration pursuant 
to 11 CFR 102.3.



Sec. 116.10  Disputed debts.

    (a) Reporting disputed debts. A political committee shall report a 
disputed debt in accordance with 11 CFR 104.3(d) and 104.11 if the 
creditor has provided something of value to the political committee. 
Until the dispute is resolved, the political committee shall disclose on 
the appropriate reports any amounts paid to the creditor, any amount the 
political committee admits it owes and the amount the creditor claims is 
owed. The political committee may also note on the appropriate reports 
that the disclosure of the disputed debt does not constitute an 
admission of liability or a waiver of any claims the political committee 
may have against the creditor. (See also 11 CFR 9035.1(a)(2) regarding 
the effect of disputed debts on a candidate's expenditure limitations 
under 11 CFR part 9035.)
    (b) Disputed debts owed by terminating committees. If a terminating 
committee

[[Page 187]]

and a creditor have been unable to resolve a disputed debt, and the 
terminating committee files a debt settlement plan covering other debts 
or other creditors, the terminating committee shall include in the debt 
settlement plan a brief description as to the nature of the dispute and 
the status of the terminating committee's efforts to resolve the 
dispute. The debt settlement plan need not include a signed affidavit 
from the creditor involved in the dispute pursuant to 11 CFR 
116.7(e)(2).

[[Page 188]]





                SUBCHAPTER B--ADMINISTRATIVE REGULATIONS





PART 200--PETITIONS FOR RULEMAKING--Table of Contents




Sec.
200.1  Purpose of scope.
200.2  Procedural requirements.
200.3  Processing of petitions.
200.4  Disposition of petitions.
200.5  Agency considerations.
200.6  Administrative record.

    Authority: 2 U.S.C. 437d(a)(8), 2 U.S.C. 438(a)(8), 5 U.S.C. 553(e).

    Source: 57 FR 34510, Aug. 5, 1992, unless otherwise noted.



Sec. 200.1  Purpose and scope.

    This part prescribes the procedures for the submission, 
consideration, and disposition of petitions filed with the Federal 
Election Commission. It establishes the conditions under which the 
Commission may identify and respond to petitions for rulemaking, and 
informs the public of the procedures the agency follows in response to 
such petitions.

[57 FR 34510, Aug. 5, 1992; 57 FR 39743, Sept. 1, 1992]



Sec. 200.2  Procedural requirements.

    (a) Any interested person may file with the Commission a written 
petition for the issuance, amendment, or repeal of a rule implementing 
any of the following statutes:
    (1) The Federal Election Campaign Act of 1971, as amended, 2 U.S.C. 
431 et seq.;
    (2) The Presidential Election Campaign Fund Act, as amended, 26 
U.S.C. 9001 et seq.;
    (3) The Presidential Primary Matching Payment Account Act, as 
amended, 26 U.S.C. 9031 et seq.;
    (4) The Freedom of Information Act, 5 U.S.C. 552; or
    (5) Any other law that the Commission is required to implement and 
administer.
    (b) The petition shall--
    (1) Include the name and address of the petitioner or agent. An 
authorized agent of the petitioner may submit the petition, but the 
agent shall disclose the identity of his or her principal;
    (2) Identify itself as a petition for the issuance, amendment, or 
repeal of a rule;
    (3) Identify the specific section(s) of the regulations to be 
affected;
    (4) Set forth the factual and legal grounds on which the petitioner 
relies, in support of the proposed action; and
    (5) Be addressed and submitted to the Federal Election Commission, 
Office of General Counsel, 999 E Street, NW., Washington, DC 20463.
    (c) The petition may include draft regulatory language that would 
effectuate the petitioner's proposal.
    (d) The Commission may, in its discretion, treat a document that 
fails to conform to the format requirements of paragraph (b) of this 
section as a basis for a sua sponte rulemaking. For example, the 
Commission may consider whether to initiate a rulemaking project 
addressing issues raised in an advisory opinion request submitted under 
11 CFR 112.1 or in a complaint filed under 11 CFR 111.4. However, the 
Commission need not follow the procedures of 11 CFR 200.3 in these 
instances.



Sec. 200.3  Processing of petitions.

    (a) If a document qualifies as a petition under 11 CFR 200.2, the 
Commission, upon the recommendation of the Office of General Counsel, 
will--
    (1) Publish a Notice of Availability in the Federal Register, 
stating that the petition is available for public inspection in the 
Commission's Public Records Office and that statements in support of or 
in opposition to the petition may be filed within a stated period after 
publication of the notice;
    (2) Send a letter to the Commissioner of Internal Revenue, pursuant 
to 2 U.S.C. 438(f), seeking the IRS's comments on the petition; and
    (3) Send a letter to the petitioner, acknowledging receipt of the 
petition and informing the petitioner of the above actions.
    (b) If the petition does not comply with the requirements of 11 CFR 
200.2(b), the Office of General Counsel may notify the petitioner of the 
nature of any discrepancies.

[[Page 189]]

    (c) If the Commission decides that a Notice of Inquiry, Advance 
Notice of Proposed Rulemaking, or a public hearing on the petition would 
contribute to its determination whether to commence a rulemaking 
proceeding, it will publish an appropriate notice in the Federal 
Register, to advise interested persons and to invite their 
participation.
    (d) The Commission will not consider the merits of the petition 
before the expiration of the comment period on the Notice of 
Availability.
    (e) The Commission will consider all comments filed within the 
comment period prescribed in the relevant Federal Register notice. The 
Commission may, at its discretion, consider comments received after the 
close of the comment period.



Sec. 200.4  Disposition of petitions.

    (a) After considering the comments that have been filed within the 
comment period(s) and any other information relevant to the subject 
matter of the petition, the Commission will decide whether to initiate a 
rulemaking based on the filed petition.
    (b) If the Commission decides not to initiate a rulemaking, it will 
give notice of this action by publishing a Notice of Disposition in the 
Federal Register and sending a letter to the petitioner. The Notice of 
Disposition will include a brief statement of the grounds for the 
Commission's decision, except in an action affirming a prior denial.
    (c) The Commission may reconsider a petition for rulemaking 
previously denied if the petitioner submits a written request for 
reconsideration within 30 calendar days after the date of the denial and 
if, upon the motion of a Commissioner who voted with the majority that 
originally denied the petition, the Commission adopts the motion to 
reconsider by the affirmative vote of four members.



Sec. 200.5  Agency considerations.

    The Commission's decision on the petition for rulemaking may 
include, but will not be limited to, the following considerations--
    (a) The Commission's statutory authority;
    (b) Policy considerations;
    (c) The desirability of proceeding on a case-by-case-basis;
    (d) The necessity or desirability of statutory revision;
    (e) Available agency resources.



Sec. 200.6  Administrative record.

    (a) The agency record for the petition process consists of the 
following:
    (1) The petition, including all attachments on which it relies, 
filed by the petitioner.
    (2) Written comments on the petition which have been circulated to 
and considered by the Commission, including attachments submitted as a 
part of the comments.
    (3) Agenda documents, in the form they are circulated to and 
considered by the Commission in the course of the petition process.
    (4) All notices published in the Federal Register, including the 
Notice of Availability and Notice of Disposition. If a Notice of Inquiry 
or Advance Notice of Proposed Rulemaking was published it will also be 
included.
    (5) The transcripts or audio tapes of any public hearing(s) on the 
petition.
    (6) All correspondence between the Commission and the petitioner, 
other commentators and state or federal agencies pertaining to 
Commission consideration of the petition.
    (7) The Commission's decision on the petition, including all 
documents identified or filed by the Commission as part of the record 
relied on in reaching its final decision.
    (b) The administrative record specified in paragraph (a) of this 
section is the exclusive record for the Commission's decision.



PART 201--EX PARTE COMMUNICATIONS--Table of Contents




Sec.
201.1  Purpose and scope.
201.2  Definitions.
201.3  Public funding, audits and litigation: Ex parte contacts 
          prohibited.
201.4  Rulemaking proceedings and advisory opinions: Ex parte contacts 
          reported.
201.5  Sanctions.

    Authority: 2 U.S.C. 437d(a)(8), 437f, 438(a)(8), 438(b); 26 U.S.C. 
9007, 9008, 9009(b), 9038, 9039(b).

[[Page 190]]


    Source: 58 FR 59645, Nov. 10, 1993, unless otherwise noted.



Sec. 201.1  Purpose and scope.

    This part prescribes procedures for handling ex parte communications 
made in connection with public funding, Commission audits, litigation, 
rulemaking proceedings and the advisory opinion process. Rules governing 
such communications made in connection with Commission enforcement 
actions are found at 11 CFR 111.22, while provisions setting forth 
employee responsibilities under the Commission's Standards of Conduct 
rules are found at 11 CFR 7.15.



Sec. 201.2  Definitions.

    As used in this part:
    (a) Ex parte communication means any written or oral communication 
by any person outside the agency to any Commissioner or any member of a 
Commissioner's staff which imparts information or argument regarding 
prospective Commission action or potential action concerning:
    (1) Any candidate or committee applying for or participating in the 
public funding process, or
    (2) Any ongoing audit, or
    (3) Any pending litigation matter, or
    (4) Any pending rulemaking, or
    (5) Any pending advisory opinion request.
    (b) Ex parte communications does not include the following 
communications.
    (1) Statements by any person publicly made in a public forum; or
    (2) Statements or inquiries by any person limited to the procedural 
status of an open proceeding involving an application for public 
funding, a rulemaking, an advisory opinion request, an audit being 
conducted pursuant to 26 U.S.C. 9007 (a) and (b), 9008 (g) and (h), or 
9038 (a) and (b), or a litigation matter.
    (c) Commissioner means an individual appointed by the President to 
the Federal Election Commission pursuant to 2 U.S.C. 437c(a).
    (d) Commissioner's staff means all individuals working under the 
personal supervision of a Commissioner including executive assistants 
and executive secretaries.



Sec. 201.3  Public funding, audits and litigation: Ex parte contacts prohibited.

    (a) In order to avoid the possibility of prejudice, real or 
apparent, to the public interest in Commission decisionmaking during the 
public funding process, in audits undertaken by the Commission, and in 
any litigation to which the Commission is a party, no person outside the 
agency shall make or cause to be made to any Commissioner or any member 
of any Commissioner's staff any ex parte communication regarding any 
candidate or committee's eligibility for or entitlement to public 
funding; any audit; or any pending or prospective Commission decision 
regarding litigation, including whether to initiate, settle, appeal, or 
seek certiorari, or any other decision concerning a litigation matter; 
nor shall any Commissioner or member of any Commissioner's staff 
entertain any such ex parte communications.
    (b) The requirements of this section apply:
    (1) In the case of public funding, from the time a primary election 
candidate submits to the Commission the letter required by 11 CFR 
9033.1(a), Presidential and Vice Presidential candidates submit to the 
Commission the letter required by 11 CFR 9003.1, or a committee seeking 
convention funding registers with the Commission as required by 11 CFR 
9008.12(a)(1) or 9008.12(b)(1), until the start of the audit process.
    (2)(i) In the case of an audit undertaken pursuant to 26 U.S.C. 9007 
(a) and (b), 9008 (g) and (h), or 9038 (a) and (b), from the date of the 
Commission's letter to a presidential campaign committee, a convention 
committee, or a host committee asking that it make a pre-inventory check 
of its records, prior to the commencement of audit fieldwork by the 
Commission, through the end of the audit process; and
    (ii) In the case of an audit undertaken pursuant to 2 U.S.C. 438(b), 
from the date the Commission's staff circulates a document for 
Commission approval containing a proposed referral to undertake an 
audit, until the Commission publicly issues the final audit report.

[[Page 191]]

    (c)(1) A Commissioner or member of a Commissioner's staff who 
receives an oral ex parte communication concerning any matters addressed 
in paragraph (a) or (b) of this section shall attempt to prevent the 
communication. If unsuccessful in preventing the communication, the 
Commissioner or staff member shall advise the person making the 
communication that he or she will not consider the communication and 
shall, as soon after the communication as is reasonably possible but no 
later than three business days after the communication, unless special 
circumstances make this impracticable; or prior to the next Commission 
discussion of the matter, whichever is earlier, prepare a statement 
setting forth the substance and circumstances of the communication, and 
deliver the statement to the Designated Agency Ethics Official for 
placement in the file of the matching fund request, audit or litigation 
case.
    (2) A Commissioner or member of a Commissioner's staff who receives 
a written ex parte communication concerning any Commission action or 
potential action concerning any candidate or committee's eligibility for 
or entitlement to public funding, or any audit, or any prospective 
Commission decision or action concerning any pending litigation case, 
during the period described in paragraph (b) of this section shall, as 
soon after the communication as is reasonably possible but no later than 
three business days after the communication, unless special 
circumstances make this impracticable; or prior to the next Commission 
discussion of the matter, whichever is earlier, deliver a copy of the 
communication to the Designated Agency Ethics Official for placement in 
the file of the audit or litigation case.



Sec. 201.4  Rulemaking proceedings and advisory opinions: Ex parte contacts reported.

    (a) A Commissioner or member of a Commissioner's staff who receives 
an ex parte communication concerning any rulemaking or advisory opinion 
during the period described in paragraph (b) of this section shall, as 
soon after the communication as is reasonably possible but no later than 
three business days after the communication unless special circumstances 
make this impracticable, or prior to the next Commission discussion of 
the matter, whichever is earlier, provide a copy of a written 
communication or a written summary of an oral communication to the 
Commission Secretary for placement in the public file of the rulemaking 
or advisory opinion. The Commissioner or staff member shall advise any 
person making an oral communication that a written summary of the 
conversation will be made part of the public record.
    (b) The requirements of paragraph (a) of this section apply:
    (1) In the case of a rulemaking proceeding, from the date a petition 
for rulemaking is circulated to Commissioners' offices, or the date on 
which a proposed rulemaking document is first circulated to the 
Commission or placed on an agenda of a Commission public meeting, 
through final Commission action on that rulemaking.
    (2) In the case of an advisory opinion, from the date a request for 
an advisory opinion is circulated to Commissioner's offices through the 
date on which the advisory opinion is issued, and during any period of 
reconsideration pursuant to 11 CFR 112.6.



Sec. 201.5  Sanctions.

    Any person who becomes aware of a possible violation of this part 
shall notify the Designated Agency Ethics Official in writing of the 
facts and circumstances of the alleged violation. The Designated Agency 
Ethics Official shall recommend to the Commission the appropriate action 
to be taken. The Commission shall determine the appropriate action by at 
least four votes.

[[Page 192]]





                       SUBCHAPTERS C-D [RESERVED]





  SUBCHAPTER E--PRESIDENTIAL ELECTION CAMPAIGN FUND: GENERAL ELECTION 
                                FINANCING





PART 9001--SCOPE--Table of Contents




    Authority: 26 U.S.C. 9009(b).



Sec. 9001.1  Scope.

    This subchapter governs entitlement to and use of funds certified 
from the Presidential Election Campaign Fund under 26 U.S.C. 9001 et 
seq. The definitions, restrictions, liabilities and obligations imposed 
by this subchapter are in addition to those imposed by sections 431-455 
of title 2, United States Code, and regulations prescribed thereunder 
(11 CFR parts 100 through 116). Unless expressly stated to the contrary, 
this subchapter does not alter the effect of any definitions, 
restrictions, obligations and liabilities imposed by sections 431-455 of 
title 2, United States Code, or regulations prescribed thereunder (11 
CFR parts 100 through 116).

[56 FR 35911, July 29, 1991]



PART 9002--DEFINITIONS--Table of Contents




Sec.
9002.1  Authorized committee.
9002.2  Candidate.
9002.3  Commission.
9002.4  Eligible candidates.
9002.5  Fund.
9002.6  Major party.
9002.7  Minor party.
9002.8  New party.
9002.9  Political committee.
9002.10  Presidential election.
9002.11  Qualified campaign expense.
9002.12  Expenditure report period.
9002.13  Contribution.
9002.14  Secretary.
9002.15  Political party.

    Authority: 26 U.S.C. 9002 and 9009(b).

    Source: 56 FR 35911, July 29, 1991, unless otherwise noted.



Sec. 9002.1  Authorized committee.

    (a) Notwithstanding the definition at 11 CFR 100.5, authorized 
committee means with respect to a candidate (as defined at 11 CFR 
9002.2) of a political party for President and Vice President, any 
political committee that is authorized by a candidate to incur expenses 
on behalf of such candidate. The term ``authorized committee'' includes 
the candidate's principal campaign committee designated in accordance 
with 11 CFR 102.12, any political committee authorized in writing by the 
candidate in accordance with 11 CFR 102.13, and any political committee 
not disavowed by the candidate pursuant to 11 CFR 100.3(a)(3). If a 
party has nominated a Presidential and a Vice Presidential candidate, 
all political committees authorized by that party's Presidential 
candidate shall also be authorized committees of the Vice Presidential 
candidate and all political committees authorized by the Vice 
Presidential candidate shall also be authorized committees of the 
Presidential candidate.
    (b) Any withdrawal of an authorization shall be in writing and shall 
be addressed and filed in the same manner provided for at 11 CFR 102.12 
or 102.13.
    (c) Any candidate nominated by a political party may designate the 
national committee of that political party as that candidate's 
authorized committee in accordance with 11 CFR 102.12(c).
    (d) For purposes of this subchapter, references to the ``candidate'' 
and his or her responsibilities under this subchapter shall also be 
deemed to refer to the candidate's authorized committee(s).



Sec. 9002.2  Candidate.

    (a) For the purposes of this subchapter, candidate means with 
respect to any presidential election, an individual who--
    (1) Has been nominated by a major party for election to the office 
of President of the United States or the office of Vice President of the 
United States; or
    (2) Has qualified or consented to have his or her name appear on the 
general election ballot (or to have the names of electors pledged to him 
or her on such ballot) as the candidate of a political

[[Page 193]]

party for election to either such office in 10 or more States. For the 
purposes of this section, political party shall be defined in accordance 
with 11 CFR 9002.15.
    (b) An individual who is no longer actively conducting campaigns in 
more than one State pursuant to 11 CFR 9004.8 shall cease to be a 
candidate for the purpose of this subchapter.



Sec. 9002.3  Commission.

    Commission means the Federal Election Commission, 999 E Street, NW., 
Washington, DC 20463.



Sec. 9002.4  Eligible candidates.

    Eligible candidates means those Presidential and Vice Presidential 
candidates who have met all applicable conditions for eligibility to 
receive payments from the Fund under 11 CFR part 9003.



Sec. 9002.5  Fund.

    Fund means the Presidential Election Campaign Fund established by 26 
U.S.C. 9006(a).



Sec. 9002.6  Major party.

    Major party means a political party whose candidate for the office 
of President in the preceding Presidential election received, as a 
candidate of such party, 25 percent or more of the total number of 
popular votes received by all candidates for such office. For the 
purposes of 11 CFR 9002.6, candidate means, with respect to any 
preceding Presidential election, an individual who received popular 
votes for the office of President in such election.



Sec. 9002.7  Minor party.

    Minor party means a political party whose candidate for the office 
of President in the preceding Presidential election received, as a 
candidate of such party, 5 percent or more, but less than 25 percent, of 
the total number of popular votes received by all candidates for such 
office. For the purposes of 11 CFR 9002.7, candidate means with respect 
to any preceding Presidential election, an individual who received 
popular votes for the office of President in such election.



Sec. 9002.8  New party.

    New party means a political party which is neither a major party nor 
a minor party.



Sec. 9002.9  Political committee.

    For purposes of this subchapter, political committee means any 
committee, club, association, organization or other group of persons 
(whether or not incorporated) which accepts contributions or makes 
expenditures for the purpose of influencing, or attempting to influence, 
the election of any candidate to the office of President or Vice 
President of the United States.



Sec. 9002.10  Presidential election.

    Presidential election means the election of Presidential and Vice 
Presidential electors.



Sec. 9002.11  Qualified campaign expense.

    (a) Qualified campaign expense means any expenditure, including a 
purchase, payment, distribution, loan, advance, deposit, or gift of 
money or anything of value--
    (1) Incurred to further a candidate's campaign for election to the 
office of President or Vice President of the United States;
    (2) Incurred within the expenditure report period, as defined under 
11 CFR 9002.12, or incurred before the beginning of such period in 
accordance with 11 CFR 9003.4 to the extent such expenditure is for 
property, services or facilities to be used during such period; and
    (3) Neither the incurrence nor the payment of such expenditure 
constitutes a violation of any law of the United States, any law of the 
State in which such expense is incurred or paid, or any regulation 
prescribed under such Federal or State law, except that any State law 
which has been pre-empted by the Federal Election Campaign Act of 1971, 
as amended, shall not be considered a State law for purposes of this 
subchapter. An expenditure which constitutes such a violation shall 
nevertheless count against the candidate's expenditure limitation if the 
expenditure meets the conditions set forth at 11 CFR 9002.11(a) (1) and 
(2).

[[Page 194]]

    (b)(1) An expenditure is made to further a Presidential or Vice 
Presidential candidate's campaign if it is incurred by or on behalf of 
such candidate or his or her authorized committee. For purposes of 11 
CFR 9002.11(b)(1), any expenditure incurred by or on behalf of a 
Presidential candidate of a political party will also be considered an 
expenditure to further the campaign of the Vice Presidential candidate 
of that party. Any expenditure incurred by or on behalf of the Vice 
Presidential candidate will also be considered an expenditure to further 
the campaign of the Presidential candidate of that party.
    (2) An expenditure is made on behalf of a candidate if it is made 
by--
    (i) Any authorized committee or any other agent of the candidate for 
the purpose of making an expenditure; or
    (ii) Any person authorized or requested by the candidate, by the 
candidate's authorized committee(s), or by an agent of the candidate or 
his or her authorized committee(s) to make an expenditure; or
    (iii) A committee which has been requested by the candidate, the 
candidate's authorized committee(s), or an agent thereof to make the 
expenditure, even though such committee is not authorized in writing.
    (3) Expenditures that further the election of other candidates for 
any public office shall be allocated in accordance with 11 CFR 106.1(a) 
and will be considered qualified campaign expenses only to the extent 
that they specifically further the election of the candidate for 
President or Vice President. A candidate may make expenditures under 
this section in conjunction with other candidates for any public office, 
but each candidate shall pay his or her proportionate share of the cost 
in accordance with 11 CFR 106.1(a).
    (4) Expenditures by a candidate's authorized committee(s) pursuant 
to 11 CFR 9004.6 for the travel and related ground service costs of 
media shall be qualified campaign expenses. Any reimbursement for travel 
and related services costs received by a candidate's authorized 
committee shall be subject to the provisions of 11 CFR 9004.6.
    (5) Legal and accounting services which are provided solely to 
ensure compliance with 2 U.S.C. 431 et seq. or 26 U.S.C. 9001, et seq. 
shall be qualified campaign expenses which may be paid from payments 
received from the Fund. If federal funds are used to pay for such 
services, the payments will count against the candidate's expenditure 
limitation. Payments for such services may also be made from an account 
established in accordance with 11 CFR 9003.3 or may be provided to the 
committee in accordance with 11 CFR 100.7(b)(14) and 100.8(b)(15). If 
payments for such services are made from an account established in 
accordance with 11 CFR 9003.3, the payments do not count against the 
candidate's expenditure limitation. If payments for such services are 
made by a minor or new party candidate from an account containing 
private contributions, the payments do not count against that 
candidate's expenditure limitation. The amount paid by the committee 
shall be reported in accordance with 11 CFR part 9006. Amounts paid by 
the regular employer of the person providing such services pursuant to 
11 CFR 100.7(b)(14) and 100.8(b)(15) shall be reported by the recipient 
committee in accordance with 11 CFR 104.3(h).
    (c) Except as provided in 11 CFR 9034.4(e), expenditures incurred 
either before the beginning of the expenditure report period or after 
the last day of a candidate's eligibility will be considered qualified 
campaign expenses if they meet the provisions of 11 CFR 9004.4(a). 
Expenditures described under 11 CFR 9004.4(b) will not be considered 
qualified campaign expenses.

[56 FR 35911, July 29, 1991, as amended at 60 FR 31872, June 16, 1995]



Sec. 9002.12  Expenditure report period.

    Expenditure report period means, with respect to any Presidential 
election, the period of time described in either paragraph (a) or (b) of 
this section, as appropriate.
    (a) In the case of a major party, the expenditure report period 
begins on September 1 before the election or on the date on which the 
major party's presidential nominee is chosen, whichever is earlier; and 
the period ends 30 days after the Presidential election.
    (b) In the case of a minor or new party, the period will be the same 
as

[[Page 195]]

that of the major party with the shortest expenditure report period for 
that Presidential election as determined under paragraph (a) of this 
section.



Sec. 9002.13  Contribution.

    Contribution has the same meaning given the term under 2 U.S.C. 
431(8), 441b and 441c, and under 11 CFR 100.7, and 11 CFR parts 114 and 
115.



Sec. 9002.14  Secretary.

    Secretary means the Secretary of the Treasury.



Sec. 9002.15  Political party.

    Political party means an association, committee, or organization 
which nominates or selects an individual for election to any Federal 
office, including the office of President or Vice President of the 
United States, whose name appears on the general election ballot as the 
candidate of such association, committee, or organization.



PART 9003--ELIGIBILITY FOR PAYMENTS--Table of Contents




Sec.
9003.1  Candidate and committee agreements.
9003.2  Candidate certifications.
9003.3  Allowable contributions; General election legal and accounting 
          compliance fund.
9003.4  Expenses incurred prior to the beginning of the expenditure 
          report period or prior to receipt of Federal funds.
9003.5  Documentation of disbursements.
9003.6  Production of computer information.

    Authority: 26 U.S.C. 9003 and 9009(b).

    Source: 56 FR 35913, July 29, 1991, unless otherwise noted.



Sec. 9003.1  Candidate and committee agreements.

    (a) General. (1) To become eligible to receive payments under 11 CFR 
part 9005, the Presidential and Vice Presidential candidates of a 
political party shall agree in a letter signed by the candidates to the 
Commission that they and their authorized committee(s) shall comply with 
the conditions set forth in 11 CFR 9003.1(b).
    (2) Major party candidates shall sign and submit such letter to the 
Commission within 14 days after receiving the party's nomination for 
election. Minor and new party candidates shall sign and submit such 
letter within 14 days after such candidates have qualified to appear on 
the general election ballot in 10 or more states pursuant to 11 CFR 
9002.2(a)(2). The Commission, on written request by a minor or new party 
candidate, at any time prior to the date of the general election, may 
extend the deadline for filing such letter except that the deadline 
shall be a date prior to the date of the general election.
    (b) Conditions. The candidates shall:
    (1) Agree that they have the burden of proving that disbursements 
made by them or any authorized committee(s) or agent(s) thereof are 
qualified campaign expenses as defined in 11 CFR 9002.11.
    (2) Agree that they and their authorized committee(s) shall comply 
with the documentation requirements set forth at 11 CFR 9003.5.
    (3) Agree that they and their authorized committee(s) shall provide 
an explanation, in addition to complying with the documentation 
requirements, of the connection between any disbursements made by the 
candidates or the authorized committee(s) of the candidates and the 
campaign if requested by the Commission.
    (4) Agree that they and their authorized committee(s) will keep and 
furnish to the Commission all documentation relating to receipts and 
disbursements including any books, records (including bank records for 
all accounts), all documentation required by this subchapter (including 
those required to be maintained under 11 CFR 9003.5), and other 
information that the Commission may request. If the candidate or the 
candidate's authorized committee maintains or uses computerized 
information containing any of the categories of data listed in 11 CFR 
9003.6(a), the committee will provide computerized magnetic media, such 
as magnetic tapes or magnetic diskettes, containing the computerized 
information that meets the requirements of 11 CFR 9003.6(b) at the times 
specified in 11 CFR 9007.1(b)(1). Upon request, documentation explaining 
the computer system's software capabilities shall be provided, and such 
personnel as are

[[Page 196]]

necessary to explain the operation of the computer system's software and 
the computerized information prepared or maintained by the committee 
shall also be made available.
    (5) Agree that they and their authorized committee(s) shall obtain 
and furnish to the Commission upon request all documentation relating to 
funds received and disbursements made on the candidate's behalf by other 
political committees and organizations associated with the candidate.
    (6) Agree that they and their authorized committee(s) shall permit 
an audit and examination pursuant to 11 CFR part 9007 of all receipts 
and disbursements including those made by the candidate, all authorized 
committees and any agent or person authorized to make expenditures on 
behalf of the candidate or committee(s). The candidate and authorized 
committee(s) shall facilitate the audit by making available in one 
central location, office space, records and such personnel as are 
necessary to conduct the audit and examination, and shall pay any 
amounts required to be repaid under 11 CFR part 9007.
    (7) Submit the name and mailing address of the person who is 
entitled to receive payments from the Fund on behalf of the candidates; 
the name and address of the depository designated by the candidates as 
required by 11 CFR part 103 and 11 CFR 9005.2; and the name under which 
each account is held at the depository at which the payments from the 
Fund are to be deposited.
    (8) Agree that they and their authorized committee(s) shall comply 
with the applicable requirements of 2 U.S.C. 431 et seq., 26 U.S.C. 9001 
et seq., and the Commission's regulations at 11 CFR parts 100-116, and 
9001-9012.
    (9) Agree that they and their authorized committee(s) shall pay any 
civil penalties included in a conciliation agreement or otherwise 
imposed under 2 U.S.C. 437g against the candidates, any authorized 
committees of the candidates or any agent thereof.
    (10) Agree that any television commercial prepared or distributed by 
the candidate or the candidate's authorized committee(s) will be 
prepared in a manner which ensures that the commercial contains or is 
accompanied by closed captioning of the oral content of the commercial 
to be broadcast in line 21 of the vertical blanking interval, or is 
capable of being viewed by deaf and hearing impaired individuals via any 
comparable successor technology to line 21 of the vertical blanking 
interval.
    (11) Agree that they and their authorized committee(s) shall file 
all reports with the Commission in an electronic format that meets the 
requirements of 11 CFR 104.18 if the candidate or the candidate's 
authorized committee(s) mainatin or use computerized information 
containing any of the information described in 11 CFR 104.3.

[56 FR 35913, July 29, 1991, as amended at 60 FR 31872, June 16, 1995; 
63 FR 45680, Aug. 27, 1998]



Sec. 9003.2  Candidate certifications.

    (a) Major party candidates. To be eligible to receive payments under 
11 CFR part 9005, each Presidential and Vice Presidential candidate of a 
major party shall, under penalty of perjury, certify to the Commission:
    (1) That the candidate and his or her authorized committee(s) have 
not incurred and will not incur qualified campaign expenses in excess of 
the aggregate payments to which they will be entitled under 11 CFR part 
9004.
    (2) That no contributions have been or will be accepted by the 
candidate or his or her authorized committee(s); except as contributions 
specifically solicited for, and deposited to, the candidate's legal and 
accounting compliance fund established under 11 CFR 9003.3(a); or except 
to the extent necessary to make up any deficiency in payments received 
from the Fund due to the application of 11 CFR 9005.2(b).
    (b) Minor and new party candidates. To be eligible to receive any 
payments under 11 CFR part 9005, each Presidential and Vice Presidential 
candidate of a minor or new party shall, under penalty of perjury, 
certify to the Commission:
    (1) That the candidate and his or her authorized committee(s) have 
not incurred and will not incur qualified campaign expenses in excess of 
the aggregate payments to which the eligible

[[Page 197]]

candidates of a major party are entitled under 11 CFR 9004.1.
    (2) That no contributions to defray qualified campaign expenses have 
been or will be accepted by the candidate or his or her authorized 
committee(s) except to the extent that the qualified campaign expenses 
incurred exceed the aggregate payments received by such candidate from 
the Fund under 11 CFR 9004.2.
    (c) All candidates. To be eligible to receive any payment under 11 
CFR 9004.2, the Presidential candidate of each major, minor or new party 
shall certify to the Commission, under penalty of perjury, that such 
candidate will not knowingly make expenditures from his or her personal 
funds, or the personal funds of his or her immediate family, in 
connection with his or her campaign for the office of President in 
excess of $50,000 in the aggregate.
    (1) For purposes of this section, the term immediate family means a 
candidate's spouse, and any child, parent, grandparent, brother, half-
brother, sister, or half-sister of the candidate, and the spouses of 
such persons.
    (2) Expenditures from personal funds made under this paragraph shall 
not apply against the expenditure limitations.
    (3) For purposes of this section, the terms personal funds and 
personal funds of his or her immediate family mean:
    (i) Any assets which, under applicable state law, at the time he or 
she became a candidate, the candidate had legal right of access to or 
control over, and with respect to which the candidate had either:
    (A) Legal and rightful title, or
    (B) An equitable interest.
    (ii) Salary and other earned income from bona fide employment; 
dividends and proceeds from the sale of the candidate's stocks or other 
investments; bequests to the candidate; income from trusts established 
before candidacy; income from trusts established by bequest after 
candidacy of which the candidate is a beneficiary; gifts of a personal 
nature which had been customarily received prior to candidacy; proceeds 
from lotteries and similar legal games of chance.
    (iii) A candidate may use a portion of assets jointly owned with his 
or her spouse as personal funds. The portion of the jointly owned assets 
that shall be considered as personal funds of the candidate shall be 
that portion which is the candidate's share under the instrument(s) of 
conveyance or ownership. If no specific share is indicated by any 
instrument of conveyance or ownership, the value of one-half of the 
property used shall be considered as personal funds of the candidate.
    (4) For purposes of this section, expenditures from personal funds 
made by a candidate of a political party for the office of Vice 
President shall be considered to be expenditures made by the candidate 
of such party for the office of President.
    (5) Contributions made by members of a candidate's family from funds 
which do not meet the definition of personal funds under 11 CFR 
9003.2(c)(3) shall not count against such candidate's $50,000 
expenditure limitation under 11 CFR 9003.2(c).
    (6) Personal funds expended pursuant to this section shall be first 
deposited in an account established in accordance with 11 CFR 9003.3 (b) 
or (c).
    (7) The provisions of this section shall not operate to limit the 
candidate's liability for, nor the candidate's ability to pay, any 
repayments required under 11 CFR part 9007. If the candidate or his or 
her committee knowingly incurs expenditures in excess of the limitations 
of 11 CFR 110.8(a), the Commission may seek civil penalties under 11 CFR 
part 111 in addition to any repayment determinations made on the basis 
of such excessive expenditures.
    (8) Expenditures made using a credit card for which the candidate is 
jointly or solely liable will count against the limits of this section 
to the extent that the full amount due, including any finance charge, is 
not paid by the committee within 60 days after the closing date of the 
billing statement on which the charges first appear. For purposes of 
this section, the ``closing date'' shall be the date indicated on the 
billing statement which serves as the cutoff date for determining which 
charges are included on that billing statement.
    (d) Form. Major party candidates shall submit the certifications 
required under 11 CFR 9003.2 in a letter which

[[Page 198]]

shall be signed and submitted within 14 days after receiving the party's 
nomination for election. Minor and new party candidates shall sign and 
submit such letter within 14 days after such candidates have qualified 
to appear on the general election ballot in 10 or more States pursuant 
to 11 CFR 9002.2(a)(2). The Commission, upon written request by a minor 
or new party candidate made at any time prior to the date of the general 
election, may extend the deadline for filing such letter, except that 
the deadline shall be a date prior to the day of the general election.



Sec. 9003.3  Allowable contributions; General election legal and accounting compliance fund.

    (a) Legal and accounting compliance fund--major party candidates. 
(1) Sources. (i) A major party candidate, or an individual who is 
seeking the nomination of a major party, may accept contributions to a 
legal and accounting compliance fund if such contributions are received 
and disbursed in accordance with this section. A general election legal 
and accounting compliance fund (``GELAC'') may be established by such 
individual prior to being nominated or selected as the candidate of a 
political party for the office of President or Vice President of the 
United States. Before June 1 of the calendar year in which a 
Presidential general election is held, contributions may only be 
deposited in the GELAC if they are made for the primary and exceed the 
contributor's contribution limits for the primary and are lawfully 
redesignated by the contributor for the GELAC pursuant to 11 CFR 110.1.
    (A) All solicitations for contributions to the GELAC shall clearly 
state that Federal law prohibits private contributions from being used 
for the candidate's election and that contributions will be used solely 
for legal and accounting services to ensure compliance with Federal law, 
and shall clearly state how contribution checks should be made payable. 
Contributions shall not be solicited for the GELAC before June 1 of the 
calendar year in which a Presidential general election is held. If the 
candidate does not become the nominee, all contributions accepted for 
the GELAC, including redesignated contributions, shall be refunded 
within sixty (60) days after the candidate's date of ineligibility.
    (B) Contributions to the GELAC shall be subject to the limitations 
and prohibitions of 11 CFR parts 110, 114, and 115.
    (C) Contributions shall be deposited in the GELAC only if they are 
designated in writing for the GELAC, or transferred pursuant to 
paragraph (a)(1) (ii), (iii), (iv) or (v) of this section. Any 
contribution which otherwise could be matched pursuant to 11 CFR 9034.2 
shall not be considered designated in writing for the GELAC unless the 
contributor specifically redesignates it for the GELAC or unless it is 
accompanied by a proper designation for the GELAC. Any contribution that 
is designated in writing or redesignated for the GELAC shall not be 
matched pursuant to 11 CFR 9034.2.
    (ii)(A) Contributions made during the matching payment period that 
do not exceed the contributor's limit for the primary election may be 
redesignated for the GELAC and subsequently transferred to the GELAC 
before the nomination only if--
    (1) The contributions represent funds in excess of any amount needed 
to pay remaining primary expenses;
    (2) The contributions have not been submitted for matching;
    (3) The redesignations are received within 60 days of the 
Treasurer's receipt of the contributions; and
    (4) The requirements of 11 CFR 110.1(b) (5) and (l) regarding 
redesignation are satisfied.
    (B) All contributions redesignated and deposited pursuant to 
paragraph (a)(1)(ii)(A) of this section shall be subject to the 
contribution limitations applicable for the general election pursuant to 
11 CFR 110.1(b)(2)(i).
    (iii) Funds received during the matching payment period that are 
remaining in a candidate's primary election account after the nomination 
may be transferred to the GELAC without regard to the contribution 
limitations of 11 CFR part 110 and used for any purpose permitted under 
this section, only if the funds are in excess of any amount needed to 
pay remaining net outstanding campaign obligations under 11 CFR 
9034.1(b) and any amount

[[Page 199]]

required to be reimbursed to the Presidential Primary Matching Payment 
Account under 11 CFR 9038.2. The excess funds so transferred may include 
contributions made before the beginning of the expenditure report 
period, which contributions do not exceed the contributor's limit for 
the primary election. Such contributions need not be redesignated by the 
contributors for the GELAC.
    (iv) Contributions that are made after the beginning of the 
expenditure report period but which are not designated in writing for 
the GELAC may be redesignated for the GELAC and transferred to the GELAC 
only if--
    (A) The funds are in excess of any amount needed to pay remaining 
net outstanding campaign obligations under 11 CFR 9034.1(b) and any 
amount required to be reimbursed to the Presidential Primary Matching 
Payment Account under 11 CFR 9038.2;
    (B) The contributions have not been submitted for matching; and
    (C) The candidate obtains the contributor's redesignation in 
accordance with 11 CFR 110.1.
    (v) Contributions made with respect to the primary election that 
exceed the contributor's limit for the primary election may be 
redesignated for the GELAC and transferred to the GELAC if the candidate 
obtains the contributor's redesignation for the GELAC in accordance with 
11 CFR 110.1.
    (vi) For purposes of this section, a contribution shall be 
considered to be designated in writing for the GELAC if--
    (A) The contribution is made by check, money order, or other 
negotiable instrument which clearly indicates that it is made with 
respect to the GELAC; or
    (B) The contribution is accompanied by a writing, signed by the 
contributor, which clearly indicates that it is made with respect to the 
GELAC.
    (2) Uses. (i) Contributions to the GELAC shall be used only for the 
following purposes:
    (A) To defray the cost of legal and accounting services provided 
solely to ensure compliance with 2 U.S.C. 431 et seq. and 26 U.S.C. 9001 
et seq. in accordance with paragraph (a)(2)(ii) of this section;
    (B) To defray in accordance with paragraph (a)(2)(ii)(A) of this 
section, that portion of expenditures for payroll, overhead, and 
computer services related to ensuring compliance with 2 U.S.C. 431 et 
seq. and 26 U.S.C. 9001 et seq.;
    (C) To defray any civil or criminal penalties imposed pursuant to 2 
U.S.C. 437g or 26 U.S.C. 9012;
    (D) To make repayments under 11 CFR 9007.2;
    (E) To defray the cost of soliciting contributions to the GELAC;
    (F) To defray the cost of producing, delivering and explaining the 
computerized information and materials provided pursuant to 11 CFR 
9003.6 and explaining the operation of the computer system's software;
    (G) To make a loan to an account established pursuant to 11 CFR 
9003.4 to defray qualified campaign expenses incurred prior to the 
expenditure report period or prior to receipt of Federal funds, provided 
that the amounts so loaned are restored to the GELAC; and
    (H) To defray unreimbursed costs incurred in providing 
transportation and services for the Secret Service and national security 
staff pursuant to 11 CFR 9004.6.
    (ii)(A) Expenditures for payroll (including payroll taxes), overhead 
and computer services, a portion of which are related to ensuring 
compliance with Title 2 of the United States Code and Chapter 95 of 
Title 26 of the United States Code, shall be initially paid from the 
candidate's Federal fund account under 11 CFR 9005.2 and may be later 
reimbursed by the compliance fund. For purposes of paragraph 
(a)(2)(i)(B) of this section, a candidate may use contributions to the 
GELAC to reimburse his or her Federal fund account an amount equal to 
10% of the payroll and overhead expenditures of his or her national 
campaign headquarters and state offices.
    (B) Overhead expenditures include, but are not limited to rent, 
utilities, office equipment, furniture, supplies and all telephone 
charges except for telephone charges related to a special use such as 
voter registration and get out the vote efforts.

[[Page 200]]

    (C) If the candidate wishes to claim a larger compliance exemption 
for payroll or overhead expenditures, the candidate shall establish 
allocation percentages for each individual who spends all or a portion 
of his or her time to perform duties which are considered necessary to 
ensure compliance with title 2 of the United States Code or chapter 95 
of title 26 of the United States Code. The candidate shall keep detailed 
records to support the derivation of each percentage. Such records shall 
indicate which duties are considered compliance and the percentage of 
time each person spends on such activity.
    (D) In addition, a candidate may use contributions to the GELAC to 
reimburse his or her Federal fund account an amount equal to 50% of the 
costs (other than payroll) associated with computer services. Such costs 
include but are not limited to rental and maintenance of computer 
equipment, data entry services not performed by committee personnel, and 
related supplies.
    (E) If the candidate wishes to claim a larger compliance exemption 
for costs associated with computer services, the candidate shall 
establish allocation percentages for each computer function that is 
considered necessary, in whole or in part, to ensure compliance with 2 
U.S.C. 431 et seq., and 26 U.S.C. 9001 et seq. The allocation shall be 
based on a reasonable estimate of the costs associated with each 
computer function, such as the costs for data entry services performed 
by persons other than committee personnel and processing time. The 
candidate shall keep detailed records to support such calculations. The 
records shall indicate which computer functions are considered 
compliance-related and shall reflect which costs are associated with 
each computer function.
    (F) The Commission's Financial Control and Compliance Manual for 
General Election Candidates Receiving Public Funding contains some 
accepted alternative allocation methods for determining the amount of 
salaries and overhead expenditures that may be considered exempt 
compliance costs.
    (G) Reimbursement from the GELAC may be made to the separate account 
maintained for federal funds under 11 CFR 9005.2 for legal and 
accounting compliance services disbursements that are initially paid 
from the separate federal funds account. Such reimbursement must be made 
prior to any repayment determination by the Commission pursuant to 11 
CFR 9007.2. Any amounts so reimbursed to the Federal funds account may 
not subsequently be transferred back to the GELAC.
    (iii) Amounts paid from the GELAC for the purposes permitted by 
paragraphs (a)(2)(i) (A) through (F) and (H) of this section shall not 
be subject to the expenditure limits of 2 U.S.C. 441a(b) and 11 CFR 
110.8. (See also 11 CFR 100.8(b)(15).) When the proceeds of loans made 
in accordance with paragraph (a)(2)(i)(G) of this section are expended 
on qualified campaign expenses, such expenditures shall count against 
the candidate's expenditure limit.
    (iv) Contributions to or funds deposited in the GELAC may not be 
used to retire debts remaining from the presidential primaries, except 
that, if after payment of all expenses set out in paragraph (a)(2)(i) of 
this section, there are excess campaign funds, such funds may be used 
for any purpose permitted under 2 U.S.C. 439a and 11 CFR part 113, 
including payment of primary election debts.
    (3) Deposit and disclosure. (i) Amounts received pursuant to 
paragraph (a)(1) of this section shall be deposited and maintained in a 
GELAC account separate from the account described in 11 CFR 9005.2 and 
shall not be commingled with any money paid to the candidate by the 
Secretary pursuant to 11 CFR 9005.2.
    (ii) The receipts to and disbursements from the GELAC account shall 
be reported in a separate report in accordance with 11 CFR 9006.1(b)(2). 
All contributions made to the GELAC account shall be recorded in 
accordance with 11 CFR 102.9. Disbursements made from the GELAC account 
shall be documented in the same manner provided in 11 CFR 9003.5.
    (b) Contributions to defray qualified campaign expenses--major party 
candidates. (1) A major party candidate or his or her authorized 
committee(s) may solicit contributions to defray qualified campaign 
expenses to the extent necessary to make up any deficiency in

[[Page 201]]

payments received from the Fund due to the application of 11 CFR 
9005.2(b).
    (2) Such contributions may be deposited in a separate account or may 
be deposited with federal funds received under 11 CFR 9005.2. 
Disbursements from this account shall be made only to defray qualified 
campaign expenses and to defray the cost of soliciting contributions to 
such account. All disbursements from this account shall be documented in 
accordance with 11 CFR 9003.5 and shall be reported in accordance with 
11 CFR 9006.1.
    (3) A candidate may make transfers to this account from his or her 
GELAC, or from the candidate's primary election account in accordance 
with paragraph (a)(1)(iii) of this section.
    (4) The contributions received under this section shall be subject 
to the limitations and prohibitions of 11 CFR parts 110, 114 and 115 and 
shall be aggregated with all contributions made by the same persons to 
the candidate's GELAC under paragraph (a) of this section for the 
purposes of such limitations.
    (5) Any costs incurred for soliciting contributions to this account 
shall not be considered expenditures to the extent that the aggregate of 
such costs does not exceed 20 percent of the expenditure limitation 
under 11 CFR 9003.2(a)(1). These costs shall, however, be reported as 
disbursements in accordance with 11 CFR part 104 and 11 CFR 9006.1. For 
purposes of this section, a candidate may exclude from the expenditure 
limitation an amount equal to 10% of the payroll (including payroll 
taxes) and overhead expenditures of his or her national campaign 
headquarters and state offices as exempt fundraising costs. The 
candidate may claim a larger fundraising exemption by establishing 
allocation percentages for employees using the method described in 
paragraph (a)(2)(ii)(C) of this section.
    (6) Any costs incurred for legal and accounting services which are 
provided solely to ensure compliance with 2 U.S.C. 431 et seq. and 26 
U.S.C. 9001 et seq. shall not count against the candidate's expenditure 
limitation. A candidate may exclude from the expenditure limitation the 
amounts described in paragraphs (a)(2)(ii) (A) and (D) of this section 
for payroll, overhead or computer costs or a larger amount under 
paragraphs (a)(2)(ii) (C) and (E) of this section.
    (7) The Commission's Financial Control and Compliance Manual for 
General Election Candidates Receiving Public Funding contains some 
accepted alternative allocation methods for determining the amount of 
salaries and overhead expenditures that may be considered exempt 
compliance costs or exempt fundraising costs.
    (c) Contributions to defray qualified campaign expenses--minor and 
new party candidates. (1) A minor or new party candidate may solicit 
contributions to defray qualified campaign expenses which exceed the 
amount received by such candidate from the Fund, subject to the limits 
of 11 CFR 9003.2(b).
    (2) The contributions received under this section shall be subject 
to the limitations and prohibitions of 11 CFR parts 110, 114 and 115.
    (3) Such contributions may be deposited in a separate account or may 
be deposited with federal funds received under 11 CFR 9005.2. 
Disbursements from this account shall be made only for the following 
purposes:
    (i) To defray qualified campaign expenses;
    (ii) To make repayments under 11 CFR 9007.2;
    (iii) To defray the cost of soliciting contributions to such 
account;
    (iv) To defray the cost of legal and accounting services provided 
solely to ensure compliance with 2 U.S.C. 431 et seq. and 26 U.S.C. 9001 
et seq.;
    (v) To defray the cost of producing, delivering and explaining the 
computerized information and materials provided pursuant to 11 CFR 
9003.6 and explaining the operation of the computer system's software.
    (4) All disbursements from this account shall be documented in 
accordance with 11 CFR 9003.5 and shall be reported in accordance with 
11 CFR part 104 and Sec. 9006.1. The candidate shall keep and maintain a 
separate record of disbursements made to defray exempt legal and 
accounting costs under paragraphs (c) (6) and (7) of this section and 
shall report such disbursements in accordance with 11 CFR part 104 and 
11 CFR 9006.1.

[[Page 202]]

    (5) Any costs incurred for soliciting contributions to this account 
shall not be considered expenditures to the extent that the aggregate of 
such costs does not exceed 20 percent of the expenditure limitation 
under 11 CFR 9003.2(a)(1). These costs shall, however, be reported as 
disbursements in accordance with 11 CFR part 104 and 9006.1. For 
purposes of this section, a candidate may exclude from the expenditure 
limitation the amount of payroll costs described in paragraph (b)(5) of 
this section.
    (6) Any costs incurred for legal and accounting services which are 
provided solely to ensure compliance with 2 U.S.C. 431 et seq. and 26 
U.S.C. 9001 et seq. shall not count against the candidate's expenditure 
limitation. A candidate may exclude from the expenditure limitation the 
amounts described in paragraphs (a)(2)(ii) (A) and (D) of this section 
for payroll, overhead or computer costs or a larger amount under 
paragraphs (a)(2)(ii) (C) and (E) of this section.
    (7) The Commission's Financial Control and Compliance Manual for 
General Election Candidates Receiving Public Funding contains some 
accepted alternative allocation methods for determining the amount of 
salaries and overhead expenditures that may be considered exempt 
compliance costs or exempt fundraising costs.

[60 FR 31872, June 16, 1995, as amended at 60 FR 57537, Nov. 16, 1995; 
64 FR 49362, Sept. 13, 1999]

    Effective Date Note: At 64 FR 49362, Sept. 13, 1999, Sec. 9003.3 was 
amended by revising the section heading, the introductory text of 
paragraph (a)(1)(i), and paragraph (a)(1)(i)(A), effective after these 
regulations have been before Congress for 30 legislative days pursuant 
to 26 U.S.C. 9009(c) and 9039(c). At 64 FR 61475, Nov. 12, 1999, the 
effective date is annouced as June 1, 2000. For the convenience of the 
user, the superseded text is set forth as follows:

Sec. 9003.3  Allowable contributions.

    (a) Legal and accounting compliance fund--major party candidates--
(1) Sources. (i) A major party candidate may accept contributions to a 
legal and accounting compliance fund if such contributions are received 
and disbursed in accordance with this section. A general election legal 
and accounting compliance fund (``GELAC'') may be established by such 
candidate prior to being nominated or selected as the candidate of a 
political party for the office of President or Vice President of the 
United States.
    (A) All solicitations for contributions to the GELAC shall clearly 
state that Federal law prohibits private contributions from being used 
for the candidate's election and that contributions will be used solely 
for legal and accounting services to ensure compliance with Federal law, 
and shall clearly state how contribution checks should be made payable.

                                * * * * *



Sec. 9003.4  Expenses incurred prior to the beginning of the expenditure report period or prior to receipt of Federal funds.

    (a) Permissible expenditures. (1) A candidate may incur expenditures 
before the beginning of the expenditure report period, as defined at 11 
CFR 9002.12, if such expenditures are for property, services or 
facilities which are to be used in connection with his or her general 
election campaign and which are for use during the expenditure report 
period. Such expenditures will be considered qualified campaign 
expenses. Examples of such expenditures include but are not limited to: 
Expenditures for establishing financial accounting systems and 
expenditures for organizational planning. Expenditures for polling that 
are incurred before the start of the expenditure report period are 
attributed as provided in 11 CFR 9034.4(e)(2).
    (2) A candidate may incur qualified campaign expenses prior to 
receiving payments under 11 CFR part 9005.
    (b) Sources. (1) A candidate may obtain a loan which meets the 
requirements of 11 CFR 100.7(b)(11) for loans in the ordinary course of 
business to defray permissible expenditures described in 11 CFR 
9003.4(a). A candidate receiving payments equal to the expenditure 
limitation in 11 CFR 110.8 shall make full repayment of principal and 
interest on such loans from payments received by the candidate under 11 
CFR part 9005 within 15 days of receiving such payments.
    (2) A major party candidate may borrow from his or her legal and 
accounting compliance fund for the purposes of defraying permissible 
expenditures described in 11 CFR 9003.4(a). All amounts borrowed from 
the legal and accounting compliance fund must be restored to such fund 
after the beginning of the

[[Page 203]]

expenditure report period either from federal funds received under 11 
CFR part 9005 or private contributions received under 11 CFR 9003.3(b). 
For candidates receiving federal funds, restoration shall be made within 
15 days after receipt of such funds.
    (3) A minor or new party candidate may defray such expenditures from 
contributions received in accordance with 11 CFR 9003.3(c).
    (4)(i) A candidate who has received federal funding under 11 CFR 
part 9031 et seq., may borrow from his or her primary election 
committee(s) an amount not to exceed the residual balance projected to 
remain in the candidate's primary account(s) on the basis of the formula 
set forth at 11 CFR 9038.3(c). A major party candidate receiving 
payments equal to the expenditure limitation shall reimburse amounts 
borrowed from his or her primary committee(s) from payments received by 
the candidate under 11 CFR part 9005 within 15 days of such receipt.
    (ii) A candidate who has not received federal funding during the 
primary campaign may borrow at any time from his or her primary 
account(s) to defray such expenditures, provided that a major party 
candidate receiving payments equal to the expenditure limitation shall 
reimburse all amounts borrowed from his or her primary committee(s) from 
payments received by the candidate under 11 CFR part 9005 within 15 days 
of such receipt.
    (5) A candidate may use personal funds in accordance with 11 CFR 
9003.2(c), up to his or her $50,000 limit, to defray such expenditures.
    (c) Deposit and disclosure. Amounts received or borrowed by a 
candidate under 11 CFR 9003.4(b) to defray expenditures permitted under 
11 CFR 9003.4(a) shall be deposited in a separate account to be used 
only for such expenditures. All receipts and disbursements from such 
account shall be reported pursuant to 11 CFR 9006.1(a) and documented in 
accordance with 11 CFR 9003.5

[56 FR 35913, July 29, 1991, as amended at 60 FR 31874, June 16, 1995]



Sec. 9003.5  Documentation of disbursements.

    (a) Burden of proof. Each candidate shall have the burden of proving 
that disbursements made by the candidate or his or her authorized 
committee(s) or persons authorized to make expenditures on behalf of the 
candidate or authorized committee(s) are qualified campaign expenses as 
defined in 11 CFR 9002.11. The candidate and his or her authorized 
committee(s) shall obtain and furnish to the Commission on request any 
evidence regarding qualified campaign expenses made by the candidate, 
his or her authorized committees and agents or persons authorized to 
make expenditures on behalf of the candidate or committee(s) as provided 
in paragraph (b) of this section.
    (b) Documentation required. (1) For disbursements in excess of $200 
to a payee, the candidate shall present a canceled check negotiated by 
the payee and either:
    (i) A receipted bill from the payee that states that purpose of the 
disbursement; or
    (ii) If such a receipt is not available,
    (A) One of the following documents generated by the payee: a bill, 
invoice, or voucher that states the purpose of the disbursement; or
    (B) Where the documents specified in paragraph (b)(1)(ii)(A) of this 
section are not available, a voucher or contemporaneous memorandum from 
the candidate or the committee that states the purpose of the 
disbursement; or
    (iii) Where the supporting documentation required in paragraphs 
(b)(1) (i) or (ii) of this section is not available, the candidate or 
committee may present collateral evidence to document the qualified 
campaign expense. Such collateral evidence may include, but is not 
limited to:
    (A) Evidence demonstrating that the expenditure is part of an 
identifiable program or project which is otherwise sufficiently 
documented such as a disbursement which is one of a number of documented 
disbursements relating to a campaign mailing or to the operation of a 
campaign office; or
    (B) Evidence that the disbursement is covered by a pre-established 
written campaign committee policy, such as a dairy travel expense 
policy.

[[Page 204]]

    (iv) If the purpose of the disbursement is not stated in the 
accompanying documentation, it must be indicated on the canceled check 
negotiated by the payee.
    (2) For all other disbursements, the candidate shall present:
    (i) A record disclosing the full name and mailing address of the 
payee, the amount, date and purpose of the disbursement, if made from a 
petty cash fund; or
    (ii) A canceled check negotiated by the payee that states the full 
name and mailing address of the payee, and the amount, date and purpose 
of the disbursement.
    (3) For purposes of this section:
    (i) Payee means the person who provides the goods or services to the 
candidate or committee in return for the disbursement; except that an 
individual will be considered a payee under this section if he or she 
receives $1000 or less advanced for travel and/or subsistence and if the 
individual is the recipient of the goods or services purchased.
    (ii) Purpose means the full name and mailing address of the payee, 
the date and amount of the disbursement, and a brief description of the 
goods or services purchased. Examples of acceptable and unacceptable 
descriptions of goods and services purchased are listed at 11 CFR 
104.3(b)(3)(i)(B).
    (c) Retention of records. The candidate shall retain records with 
respect to each disbursement and receipt, including bank records, 
vouchers, worksheets, receipts, bills and accounts, journals, ledgers, 
fundraising solicitation material, accounting systems documentation, and 
any related materials documenting campaign receipts and disbursements, 
for a period of three years pursuant to 11 CFR 102.9(c), and shall 
present these records to the Commission on request.
    (d) List of capital and other assets. (1) Capital assets The 
candidate or committee shall maintain a list of all capital assets whose 
purchase price exceeded $2000 when acquired by the campaign. The list 
shall include a brief description of each capital asset, the purchase 
price, the date it was acquired, the method of disposition and the 
amount received in disposition. For purposes of this section, ``capital 
asset'' shall be defined in accordance with 11 CFR 9004.9(d)(1).
    (2) Other assets. The candidate or committee shall maintain a list 
of other assets acquired for use in fundraising or as collateral for 
campaign loans, if the aggregate value of such assets exceeds $5000. The 
list shall include a brief description of each such asset, the fair 
market value of each asset, the method of disposition and the amount 
received in disposition. The fair market value of other assets shall be 
determined in accordance with 11 CFR 9004.9(d)(2).

[60 FR 31874, June 16, 1995, as amended at 64 FR 49362, Sept. 13, 1999]



Sec. 9003.6  Production of computer information.

    (a) Categories of computerized information to be provided. If the 
candidate or the candidate's authorized committee maintains or uses 
computerized information containing any of the categories of data listed 
in paragraphs (a)(1) through (a)(9) of this section, the committee shall 
provide computerized magnetic media, such as magnetic tapes or magnetic 
diskettes, containing the computerized information at the times 
specified in 11 CFR 9007.1(b)(1):
    (1) Information required by law to be maintained regarding the 
committee's receipts or disbursements;
    (2) Receipts by and disbursements from a legal and accounting 
compliance fund under 11 CFR 9003.3(a), including the allocation of 
payroll and overhead expenditures;
    (3) Receipts and disbursements under 11 CFR 9003.3 (b) or (c) to 
defray the costs of soliciting contributions or to defray the costs of 
legal and accounting services, including the allocation of payroll and 
overhead expenditures;
    (4) Records relating to the costs of producing broadcast 
communications and purchasing airtime;
    (5) Records used to prepare statements of net outstanding qualified 
campaign expenses;
    (6) Records used to reconcile bank statements;
    (7) Disbursements made and reimbursements received for the cost of

[[Page 205]]

transportation, ground services and facilities made available to media 
personnel, including records relating to how costs charged to media 
personnel were determined;
    (8) Records relating to the acquisition, use and disposition of 
capital assets or other assets; and
    (9) Any other information that may be used during the Commission's 
audit to review the committee's receipts, disbursements, loans, debts, 
obligations, bank reconciliations or statements of net outstanding 
qualified campaign expenses.
    (b) Organization of computerized information and technical 
specifications. The computerized magnetic media shall be prepared and 
delivered at the committee's expense and shall conform to the technical 
specifications, including file requirements, described in the Federal 
Election Commission's Computerized Magnetic Media Requirements for title 
26 Candidates/Committees Receiving Federal Funding. The data contained 
in the computerized magnetic media provided to the Commission shall be 
organized in the order specified by the Computerized Magnetic Media 
Requirements.
    (c) Additional materials and assistance. Upon request, the committee 
shall produce documentation explaining the computer system's software 
capabilities, such as user guides, technical manuals, formats, layouts 
and other materials for processing and analyzing the information 
requested. Upon request, the committee shall also make available such 
personnel as are necessary to explain the operation of the computer 
system's software and the computerized information prepared or 
maintained by the committee.



PART 9004--ENTITLEMENT OF ELIGIBLE CANDIDATES TO PAYMENTS; USE OF PAYMENTS--Table of Contents




Sec.
9004.1  Major parties.
9004.2  Pre-election payments for minor and new party candidates.
9004.3  Post-election payments.
9004.4  Use of payments.
9004.5  Investment of public funds; other uses resulting in income.
9004.6  Expenditures for transportation and services made available to 
          media personnel; reimbursements.
9004.7  Allocation of travel expenditures.
9004.8  Withdrawal by candidate.
9004.9  Net outstanding qualified campaign expenses.
9004.10  Sale of assets acquired for fundraising purposes.

    Authority: 26 U.S.C. 9004 and 9009(b).

    Source: 56 FR 35919, July 29, 1991, unless otherwise noted.



Sec. 9004.1  Major parties.

    The eligible candidates of each major party in a Presidential 
election shall be entitled to equal payments under 11 CFR part 9005 in 
an amount which, in the aggregate, shall not exceed $20,000,000 as 
adjusted by the Consumer Price Index in the manner described in 11 CFR 
110.9(c).



Sec. 9004.2  Pre-election payments for minor and new party candidates.

    (a) Candidate of a minor party in the preceding election. An 
eligible candidate of a minor party is entitled to pre-election 
payments:
    (1) If he or she received at least 5% of the total popular vote as 
the candidate of a minor party in the preceding election whether or not 
he or she is the same minor party's candidate in this election.
    (2) In an amount which is equal, in the aggregate, to a 
proportionate share of the amount to which major party candidates are 
entitled under 11 CFR 9004.1.

The aggregate amount received by a minor party candidate shall bear the 
same ratio to the amount received by the major party candidates as the 
number of popular votes received by the minor party Presidential 
candidate in the preceding Presidential election bears to the average 
number of popular votes received by all major party candidates in that 
election.
    (b) Candidate of a minor party in the current election. The eligible 
candidate of a minor party whose candidate for the office of President 
in the preceding election received at least 5% but less than 25% of the 
total popular vote is eligible to receive pre-election payments. The 
amount which a minor party candidate is entitled to receive

[[Page 206]]

under this section shall be computed pursuant to 11 CFR 9004.2(a) based 
on the number of popular votes received by the minor party's candidate 
in the preceding Presidential election; however, the amount to which the 
minor party candidate is entitled under this section shall be reduced by 
the amount to which the minor party's Presidential candidate in this 
election is entitled under 11 CFR 9004.2(a), if any.
    (c) New party candidate. A candidate of a new party who was a 
candidate for the office of President in at least 10 States in the 
preceding election may be eligible to receive pre-election payments if 
he or she received at least 5% but less than 25% of the total popular 
vote in the preceding election. The amount which a new party candidate 
is entitled to receive under this section shall be computed pursuant to 
11 CFR 9004.2(a) based on the number of popular votes received by the 
new party candidate in the preceding election. If a new party candidate 
is entitled to payments under this section, the amount of the 
entitlement shall be reduced by the amount to which the candidate is 
entitled under 11 CFR 9004.2(a), if any.



Sec. 9004.3  Post-election payments.

    (a) Minor and new party candidates. Eligible candidates of a minor 
party or of a new party who, as candidates, receive 5 percent or more of 
the total number of popular votes cast for the office of President in 
the election shall be entitled to payments under 11 CFR part 9005 equal, 
in the aggregate, to a proportionate share of the amount allowed for 
major party candidates under 11 CFR 9004.1. The amount to which a minor 
or new party candidate is entitled shall bear the same ratio to the 
amount received by the major party candidates as the number of popular 
votes received by the minor or new party candidate in the Presidential 
election bears to the average number of popular votes received by the 
major party candidates for President in that election.
    (b) Amount of entitlement. The aggregate payments to which an 
eligible candidate shall be entitled shall not exceed an amount equal to 
the lower of:
    (1) The amount of qualified campaign expenses incurred by such 
eligible candidate and his or her authorized committee(s), reduced by 
the amount of contributions which are received to defray qualified 
campaign expenses by such eligible candidate and such committee(s); or
    (2) The aggregate payments to which the eligible candidates of a 
major party are entitled under 11 CFR 9004.1, reduced by the amount of 
contributions received by such eligible candidates and their authorized 
committees to defray qualified campaign expenses in the case of a 
deficiency in the Fund.
    (c) Amount of entitlement limited by pre-election payment. If an 
eligible candidate is entitled to payment under 11 CFR 9004.2, the 
amount allowable to that candidate under this section shall also be 
limited to the amount, if any, by which the entitlement under 11 CFR 
9004.3(a) exceeds the amount of the entitlement under 11 CFR 9004.2.



Sec. 9004.4  Use of payments.

    (a) Qualified campaign expenses. An eligible candidate shall use 
payments received under 11 CFR part 9005 only for the following 
purposes:
    (1) To defray qualified campaign expenses;
    (2) To repay loans that meet the requirements of 11 CFR 100.7 (a)(1) 
or (b)(11) or to otherwise restore funds (other than contributions 
received pursuant to 11 CFR 9003.3 (b) or (c) and expended to defray 
qualified campaign expenses) used to defray qualified campaign expenses;
    (3) To restore funds expended in accordance with 11 CFR 9003.4 for 
qualified campaign expenses incurred by the candidate prior to the 
beginning of the expenditure report period.
    (4) Winding down costs. The following costs shall be considered 
qualified campaign expenses:
    (i) Costs associated with the termination of the candidate's general 
election campaign such as complying with the post-election requirements 
of the Act and other necessary administrative costs associated with 
winding down the campaign, including office space rental, staff 
salaries, and office supplies; and

[[Page 207]]

    (ii) Costs associated with the candidate's general election campaign 
and incurred by the candidate prior to the end of the expenditure report 
period for which written arrangement or commitment was made on or before 
the close of the expenditure report period.
    (5) Gifts and monetary bonuses. Gifts and monetary bonuses shall be 
considered qualified campaign expenses, provided that:
    (i) Gifts for committee employees, consultants and volunteers in 
recognition for campaign-related activities or services do not exceed 
$150 total per individual and the total of all gifts does not exceed 
$20,000; and
    (ii) All monetary bonuses for committee employees and consultants in 
recognition for campaign-related activities or services;
    (A) Are provided for pursuant to a written contract made prior to 
the date of the election; and
    (B) Are paid during the expenditure report period.
    (b) Non-qualified campaign expenses--(1) General. The following are 
examples of disbursements that are not qualified campaign expenses.
    (2) Excessive expenditures. An expenditure which is in excess of any 
of the limitations under 11 CFR 9003.2 shall not be considered a 
qualified campaign expense. The Commission will calculate the amount of 
expenditures attributable to these limitations using the full amounts 
originally charged for goods and services rendered to the committee and 
not the amounts for which such obligations were later settled and paid, 
unless the committee can demonstrate that the lower amount paid reflects 
a reasonable settlement of a bona fide dispute with the creditor.
    (3) Expenditures incurred after the close of the expenditure report 
period. Any expenditures incurred after the close of the expenditure 
report period, as defined in 11 CFR 9002.12, are not qualified campaign 
expenses except to the extent permitted under 11 CFR 9004.4(a)(4).
    (4) Civil or criminal penalties. Civil or criminal penalties paid 
pursuant to the Federal Election Campaign Act are not qualified campaign 
expenses and cannot be defrayed from payments received under 11 CFR part 
9005. Penalties may be paid from contributions in the candidate's legal 
and accounting compliance fund, in accordance with 11 CFR 
9003.3(a)(2)(i)(C). Additional amounts may be received and expended to 
pay such penalties, if necessary. These funds shall not be considered 
contributions or expenditures but all amounts so received shall be 
subject to the prohibitions of the Act. Amounts received and expended 
under this section shall be reported in accordance with 11 CFR part 104.
    (5) Solicitation expenses. Any expenses incurred by a major party 
candidate to solicit contributions to a legal and accounting compliance 
fund established pursuant to 11 CFR 9003.3(a) are not qualified campaign 
expenses and cannot be defrayed from payments received under 11 CFR part 
9005.
    (6) Payments to candidate. Payments made to the candidate by his or 
her committee, other than to reimburse funds advanced by the candidate 
for qualified campaign expenses, are not qualified campaign expenses.
    (7) Payments to other authorized committees. Payments, including 
transfers, contributions and loans, to other committees authorized by 
the same candidate for a different election are not qualified campaign 
expenses.
    (8) Lost, misplaced, or stolen items. The cost of lost, misplaced, 
or stolen items may be considered a nonqualified campaign expense. 
Factors considered by the Commission in making this determination shall 
include, but not be limited to, whether the committee demonstrates that 
it made conscientious efforts to safeguard the missing equipment; 
whether the committee sought or obtained insurance on the items; whether 
the committee filed a police report; the type of equipment involved; and 
the number and value of items that were lost.

[56 FR 35919, July 29, 1991, as amended at 60 FR 31875, June 16, 1995; 
64 FR 49362, Sept. 13, 1999]



Sec. 9004.5  Investment of public funds; other uses resulting in income.

    Investment of public funds or any other use of public funds that 
results in income is permissible, provided that an amount equal to all 
net income derived

[[Page 208]]

from such a use, less Federal, State and local taxes paid on such 
income, shall be paid to the Secretary. Any net loss from an investment 
or other use of public funds will be considered a non-qualified campaign 
expense and an amount equal to the amount of such loss shall be repaid 
to the United States Treasury as provided under 11 CFR 9007.2(b)(2)(i).

[60 FR 31876, June 16, 1995]



Sec. 9004.6  Expenditures for transportation and services made available to media personnel; reimbursements.

    (a) General. (1) Expenditures by an authorized committee for 
transportation, ground services or facilities (including air travel, 
ground transportation, housing, meals, telephone service, typewriters, 
and computers) provided to media personnel, Secret Service personnel or 
national security staff will be considered qualified campaign expenses, 
and, except for costs relating to Secret Service personnel or national 
security staff, will be subject to the overall expenditure limitations 
of 11 CFR 9003.2(a)(1) and (b)(1).
    (2) Subject to the limitations in paragraphs (b) and (c) of this 
section, committees may seek reimbursement from the media for the 
expenses described in paragraph (a)(3) of this section, and may deduct 
reimbursements received from media representatives from the amount of 
expenditures subject to the overall expenditure limitation of 11 CFR 
Sec. 9003.2(a)(1) and (b)(1). Expenses for which the committee receives 
no reimbursement will be considered qualified campaign expenses, and, 
with the exception of those expenses relating to Secret Service 
personnel and national security staff, will be subject to the overall 
expenditure limitation.
    (3) Committees may seek reimbursement from the media only for the 
billable items specified in the White House Press Corps Travel Policies 
and Procedures issued by the White House Travel Office.
    (b) Reimbursement limits; billing. (1) The amount of reimbursement 
sought from a media representative under paragraph (a)(2) of this 
section shall not exceed 110% of the media representative's pro rata 
share (or a reasonable estimate of the media representative's pro rata 
share) of the actual cost of the transportation and services made 
available. Any reimbursement received in excess of this amount shall be 
disposed of in accordance with paragraph (d)(1) of this section.
    (2) For the purposes of this section, a media representative's pro 
rata share shall be calculated by dividing the total actual cost of the 
transportation and services provided by the total number of individuals 
to whom such transportation and services are made available. For 
purposes of this calculation, the total number of individuals shall 
include committee staff, media personnel, Secret Service personnel, 
national security staff and any other individuals to whom such 
transportation and services are made available, except that, when 
seeking reimbursement for transportation costs paid by the committee 
under 11 CFR Sec. 9004.7(b)(5)(i)(C), the total number of individuals 
shall not include national security staff.
    (3) No later than sixty (60) days of the campaign trip or event, the 
committee shall provide each media representative attending the event 
with an itemized bill that specifies the amounts charged for air and 
ground transportation for each segment of the trip, housing, meals, 
telephone service, and other billable items specified in the White House 
Press Corps Travel Policies and Procedures issued by the White House 
Travel Office. Payments shall be due sixty (60) days from the date of 
the bill, unless the media representative disputes the charges.
    (c) Deducation of reimbursements from expenditures subject to the 
overall expenditure limitation. (1) The committee may deduct from the 
amount of expenditures subject to the overall expenditure limitation:
    (i) The amount of reimbursements received from media representatives 
in payment for the transportation and services described in paragraph 
(a) of this section, up to the actual cost of the transportation and 
services provided to media representatives; and

[[Page 209]]

    (ii) An additional amount of the reimbursements received from media 
representatives, representing the administrative costs incurred by the 
committee in providing these services to the media representative and 
seeking reimbursement for them, equal to:
    (A) Three percent of the actual cost of transportation and services 
provided to the media representatives under this section; or
    (B) An amount in excess of 3% representing the administrative costs 
actually incurred by the committee in providing services to the media 
representatives, provided that the committee is able to document the 
total amount of administrative costs actually incurred.
    (2) For the purpose of this paragraph, ``administrative costs'' 
includes all costs incurred by the committee in making travel 
arrangements and seeking reimbursement, whether these services are 
performed by committee staff or by independent contractors.
    (d) Disposal of excess reimbursements. If the committee receives 
reimbursements in excess of the amount deductible under paragraph (c) of 
this section, it shall dispose of the excess amount in the following 
manner:
    (1) Any reimbursement received in excess of 110% of the actual pro 
rata cost of the transportation and services made available to a media 
representative shall be returned to the media representative.
    (2) Any amount in excess of the amount deductible under paragraph 
(c) of this section that is not required to be returned to the media 
representative under paragraph (d)(1) of this section shall be paid to 
the Treasury.
    (e) Reporting. The total amount paid by an authorized committee for 
the services and facilities described in paragraph (a)(1) of this 
section, plus the administrative costs incurred by the committee in 
providing these services and facilities and seeking reimbursement for 
them, shall be reported as an expenditure in accordance with 11 CFR 
104.3(b)(2)(i). Any reimbursement received by such committee under 
paragraph (b)(1) of this section shall be reported in accordance with 11 
CFR 104.3(a)(3)(ix).

[60 FR 31876, June 16, 1995, as amended at 64 FR 42583, Aug. 5, 1999]



Sec. 9004.7  Allocation of travel expenditures.

    (a) Notwithstanding the provisions of 11 CFR 106.3, expenditures for 
travel relating to a Presidential or Vice Presidential candidate's 
campaign by any individual, including a candidate, shall, pursuant to 
the provisions of paragraph (b) of this section, be qualified campaign 
expenses and be reported by the candidate's authorized committee(s) as 
expenditures.
    (b)(1) For a trip which is entirely campaign-related, the total cost 
of the trip shall be a qualified campaign expense and a reportable 
expenditure.
    (2) For a trip which includes campaign-related and non-campaign 
related stops, that portion of the cost of the trip allocable to 
campaign activity shall be a qualified campaign expense and a reportable 
expenditure. Such portion shall be determined by calculating what the 
trip would have cost from the point of origin of the trip to the first 
campaign-related stop and from the stop through each subsequent 
campaign-related stop to the point of origin. If any campaign activity, 
other than incidental contacts, is conducted at a stop, that stop shall 
be considered campaign-related. Campaign activity includes soliciting, 
making, or accepting contributions, and expressly advocating the 
election or defeat of the candidate. Other factors, including the 
setting, timing and statements or expressions of the purpose of an 
event, and the substance of the remarks or speech made, will also be 
considered in determining whether a stop is campaign-related.
    (3) For each trip, an itinerary shall be prepared and such itinerary 
shall be made available by the committee for Commission inspection. The 
itinerary shall show the time of arrival and departure and the type of 
events held.
    (4) For trips by government conveyance or by charter, a list of all 
passengers on such trip, along with a designation of which passengers 
are and which are not campaign-related, shall

[[Page 210]]

be made available for Commission inspection. When required to be 
created, a copy of the government's or charter company's official 
manifest shall also be maintained and made available by the committee.
    (5)(i) If any individual, including a candidate, uses a government 
airplane for campaign-related travel, the candidate's authorized 
committee shall pay the appropriate government entity an amount equal 
to:
    (A) The lowest unrestricted and non-discounted first class 
commercial air fare available for the time traveled, in the case of 
travel to a city served by a regularly scheduled commercial airline 
service; or
    (B) The lowest unrestricted and non-discounted coach commercial air 
fare available for the time traveled, in the case of travel to a city 
served by regularly scheduled coach airline service, but not regularly 
scheduled first class airline service; or
    (C) In the case of travel to a city not served by a regularly 
scheduled commercial airline service, the commercial charter rate for an 
airplane sufficient in size to accommodate the campaign-related 
travelers, including the candidate, plus the news media and the Secret 
Service.
    (ii) If a government airplane is flown to a campaign-related stop 
where it will pick up passengers, or from a campaign-related stop where 
it left off passengers, the candidate's authorized committee shall pay 
the appropriate government entity an amount equal to the greater of the 
amount billed or the amount required under paragraph (b)(5)(i) of this 
section for one passenger.
    (iii) If any individual, including a candidate, uses a government 
conveyance, other than an airplane, for campaign-related travel, the 
candidate's authorized committee shall pay the appropriate government 
entity an amount equal to the commercial rental rate for a conveyance 
sufficient in size to accommodate the campaign-related travelers, 
including the candidate, plus the news media and the Secret Service.
    (iv) If any individual, including a candidate, uses accommodations, 
including lodging and meeting rooms, during campaign-related travel, and 
the accommodations are paid for by a government entity, the candidate's 
authorized committee shall pay the appropriate government entity an 
amount equal to the usual and normal charge for the accommodations, and 
shall maintain documentation supporting the amount paid.
    (v) For travel by airplane, the committee shall maintain 
documentation of the lowest unrestricted nondiscounted air fare 
available for the time traveled, including the airline, flight number 
and travel service providing that fare or the charter rate, as 
appropriate. For travel by other conveyances, the committee shall 
maintain documentation of the commercial rental rate for a conveyance of 
sufficient size, including the provider of the conveyance and the size, 
model and make of the conveyance.
    (6) Travel expenses of a candidate's spouse and family when 
accompanying the candidate on campaign-related travel may be treated as 
qualified campaign expenses and reportable expenditures. If the spouse 
or family members conduct campaign-related activities, their travel 
expenses shall be qualified campaign expenses and reportable 
expenditures.
    (7) If any individual, including a candidate, incurs expenses for 
campaign-related travel, other than by use of government conveyance or 
accommodations, an amount equal to that portion of the actual cost of 
the conveyance or accommodations which is allocable to all passengers, 
including the candidate, who are traveling for campaign purposes shall 
be a qualified campaign expense and shall be reported by the committee 
as an expenditure.
    (i) If the trip is by charter, the actual cost for each passenger 
shall be determined by dividing the total operating cost for the charter 
by the total number of passengers transported. The amount which is a 
qualified campaign expense and a reportable expenditure shall be 
calculated in accordance with the formula set forth at 11 CFR 
9004.7(b)(2) on the basis of the actual cost per passenger multiplied by 
the number of passengers traveling for campaign purposes.
    (ii) If the trip is by non-charter commercial transportation, the 
actual cost

[[Page 211]]

shall be calculated in accordance with the formula set forth at 11 CFR 
9004.7(b)(2) on the basis of the commercial fare. Such actual cost shall 
be a qualified campaign expense and a reportable expenditure.
    (8) Travel on corporate airplanes and other corporate conveyances is 
governed by 11 CFR 114.9(e).

[60 FR 31876, June 16, 1995]



Sec. 9004.8  Withdrawal by candidate.

    (a) Any individual who is not actively conducting campaigns in more 
than one State for the office of President or Vice President shall cease 
to be a candidate under 11 CFR 9002.2.
    (b) An individual who ceases to be a candidate under this section 
shall:
    (1) No longer be eligible to receive any payments under 11 CFR 
9005.2 except to defray qualified campaign expenses as provided in 11 
CFR 9004.4.
    (2) Submit a statement, within 30 calendar days after he or she 
ceases to be a candidate, setting forth the information required under 
11 CFR 9004.9(c).



Sec. 9004.9  Net outstanding qualified campaign expenses.

    (a) Candidates receiving post-election funding. A candidate who is 
eligible to receive post-election payments under 11 CFR 9004.3 shall 
file, no later than 20 calendar days after the date of the election, a 
preliminary statement of that candidate's net outstanding qualified 
campaign expenses. The candidate's net outstanding qualified campaign 
expenses under this section equal the difference between 11 CFR 
9004.9(a) (1) and (2).
    (1) The total of:
    (i) All outstanding obligations for qualified campaign expenses as 
of the date of the election; plus
    (ii) An estimate of the amount of qualified campaign expenses that 
will be incurred by the end of the expenditure report period; plus
    (iii) An estimate of the necessary winding down costs, as defined 
under 11 CFR 9004.4(a)(4), submitted in the format required by paragraph 
(a)(4) of this section; less
    (2) The total of:
    (i) Cash on hand as of the close of business on the day of the 
election, including: All contributions dated on or before that date; 
currency; balances on deposit in banks, savings and loan institutions, 
and other depository institutions; traveler's checks; certificates of 
deposit; treasury bills; and any other committee investments valued at 
fair market value;
    (ii) The fair market value of capital assets and other assets on 
hand; and
    (iii) Amounts owed to the candidate's authorized committee(s) in the 
form of credits, refunds of deposits, returns, receivables, or rebates 
of qualified campaign expenses; or a commercially reasonable amount 
based on the collectibility of those credits, returns, receivables or 
rebates.
    (3) The amount submitted as the total of outstanding campaign 
obligations under paragraph (a)(1) of this section shall not include any 
accounts payable for non-qualified campaign expenses nor any amounts 
determined or anticipated to be required as a repayment under 11 CFR 
part 9007 or any amounts paid to secure a surety bond under 11 CFR 
9007.5(c).
    (4) The amount submitted as an estimate of necessary winding down 
costs under paragraph (a)(1)(iii) of this section shall be broken down 
by expense category and quarterly or monthly time period. This breakdown 
shall include estimated costs for office space rental, staff salaries, 
legal expenses, accounting expenses, office supplies, equipment rental, 
telephone expenses, postage and other mailing costs, printing and 
storage. The breakdown shall estimate the costs that will be incurred in 
each category from the time the statement is submitted until the 
expected termination of the committee's political activity.
    (b) All candidates. Each candidate, except for individuals who have 
withdrawn pursuant to 11 CFR 9004.8, shall submit a statement of net 
outstanding qualified campaign expenses no later than 30 calendar days 
after the end of the expenditure report period. The statement shall 
contain the information required by 11 CFR 9004.9(a) (1) and (2), except 
that the amount of outstanding obligations under 11 CFR 9004.9(a)(1)(i) 
and the amount of cash on hand, assets and receivables under 11 CFR 
9004.9(a)(2) shall be complete as

[[Page 212]]

of the last day of the expenditure report period.
    (c) Candidates who withdraw. An individual who ceases to be a 
candidate pursuant to 11 CFR 9004.8 shall file a statement of net 
outstanding qualified campaign expenses no later than 30 calendar days 
after he or she ceases to be a candidate. The statement shall contain 
the information required under 11 CFR 9004.9(a) (1) and (2), except that 
the amount of outstanding obligations under 11 CFR 9004.9(a)(1)(i) and 
the amount of cash on hand, assets and receivables under 11 CFR 
9004.9(a)(2) shall be complete as of the day on which the individual 
ceased to be a candidate.
    (d) (1) Capital assets and assets purchased from the primary 
election committee.
    (i) For purposes of this section, the term capital asset means any 
property used in the operation of the campaign whose purchase price 
exceeded $2000 when acquired by the committee. Property that must be 
valued as capital assets under this section includes, but is not limited 
to, office equipment, furniture, vehicles and fixtures acquired for use 
in the operation of the candidate's campaign, but does not include 
property defined as ``other assets'' under paragraph (d)(2) of this 
section. Capital assets include items such as computer systems and 
telecommunications systems, if the equipment is used together and if the 
total cost of all components that are used together exceeds $2000. A 
list of all capital assets shall be maintained by the committee in 
accordance with 11 CFR 9003.5(d)(1). The fair market value of capital 
assets shall be considered to be 60% of the total original cost of such 
items when acquired, except that items received after the end of the 
expenditure report period must be valued at their fair market value on 
the date acquired. A candidate may claim a lower fair market value for a 
capital asset by listing that capital asset on the statement separately 
and demonstrating, through documentation, the lower fair market value.
    (ii) If capital assets are obtained from the candidate's primary 
election committee, the purchase price shall be considered to be 60% of 
the original cost of such assets to the candidate's primary election 
committee. For purposes of the statement of net outstanding qualified 
campaign expenses filed after the end of the expenditure report period, 
the fair market value of capital assets obtained from the candidate's 
primary election committee shall be considered to be 20% of the original 
cost of such assets to the candidate's primary election committee.
    (iii) Items purchased from the primary election committee that are 
not capital assets, and also are not other assets under paragraph (d)(2) 
of this section, shall be listed on an inventory that states their 
valuation.
    (2) Other assets. The term other assets means any property acquired 
by the committee for use in raising funds or as collateral for campaign 
loans. ``Other assets'' must be included on the candidate's statement of 
net outstanding qualified campaign expenses if the aggregate value of 
such assets exceeds $5000. The value of ``other assets'' shall be 
determined by the fair market value of each item on the last day of the 
expenditure report period or the day on which the individual ceased to 
be a candidate, whichever is earlier, unless the item is acquired after 
these dates, in which case the item shall be valued on the date it is 
acquired. A list of other assets shall be maintained by the committee in 
accordance with 11 CFR 9003.5(d)(2).
    (e) Collectibility of accounts receivable. If the committee 
determines that an account receivable of $500 or more, including any 
credit, refund, return or rebate, is not collectible in whole or in 
part, the committee shall demonstrate through documentation that the 
determination was commercially reasonable. The documentation shall 
include records showing the original amount of the account receivable, 
copies of correspondence and memoranda of communications with the debtor 
showing attempts to collect the amount due, and an explanation of how 
the lesser amount or full write-off was determined.
    (f) Review of candidate statement--(1) General. The Commission will 
review the statement filed by each candidate under this section. The 
Commission may request further information with respect to statements 
filed pursuant to

[[Page 213]]

11 CFR 9004.9(b) during the audit of that candidate's authorized 
committee(s) under 11 CFR part 9007.
    (2) Candidate eligible for post-election funding. (i) If, in 
reviewing the preliminary statement of a candidate eligible to receive 
post-election funding, the Commission receives information indicating 
that substantial assets of that candidate's authorized committee(s) have 
been undervalued or not included in the statement or that the amount of 
outstanding qualified campaign expenses has been otherwise overstated in 
relation to committee assets, the Commission may decide to temporarily 
postpone its certification of funds to that candidate pending a final 
determination of whether the candidate is entitled to all or a portion 
of the funds for which he or she is eligible based on the percentage of 
votes the candidate received in the general election.
    (ii) Initial determination. In making a determination under 11 CFR 
9004.9(f)(2)(i), the Commission will notify the candidate within 10 
business days after its receipt of the statement of its initial 
determination that the candidate is not entitled to receive the full 
amount for which the candidate may be eligible. The notice will give the 
legal and factual reasons for the initial determination and advise the 
candidate of the evidence on which the Commission's initial 
determination is based. The candidate will be given the opportunity to 
revise the statement or to submit, within 10 business days, written 
legal or factual materials to demonstrate that the candidate has net 
outstanding qualified campaign expenses that entitle the candidate to 
post-election funds. Such materials may be submitted by counsel if the 
candidate so desires.
    (iii) Final determination. The Commission will consider any written 
legal or factual materials submitted by the candidate before making its 
final determination. A final determination that the candidate is 
entitled to receive only a portion or no post-election funding will be 
accompanied by a written statement of reasons for the Commission's 
action. This statement will explain the legal and factual reasons 
underlying the Commission's determination and will summarize the results 
of any investigation on which the determination is based.
    (iv) If the candidate demonstrates that the amount of outstanding 
qualified campaign expenses still exceeds committee assets, the 
Commission will certify the payment of post-election funds to which the 
candidate is entitled.
    (v) Petitions for rehearing. The candidate may file a petition for 
rehearing of a final determination under this section in accordance with 
11 CFR 9007.5(a).

[56 FR 35919, July 29, 1991, as amended at 60 FR 31877, June 16, 1995; 
64 FR 49363, Sept. 13, 1999]



Sec. 9004.10  Sale of assets acquired for fundraising purposes.

    (a) General. A minor or new party candidate may sell assets donated 
to the candidate's authorized committee(s) or otherwise acquired for 
fundraising purposes subject to the limitations and prohibitions of 11 
CFR 9003.2, title 2, United States Code, and 11 CFR parts 110 and 114. 
This section will only apply to major party candidates to the extent 
that they sell assets acquired either for fundraising purposes in 
connection with his or her legal and accounting compliance fund or when 
it is necessary to make up any deficiency in payments received from the 
Fund due to the application of 11 CFR 9005.2(b).
    (b) Sale after end of expenditure report period. A minor or new 
party candidate, or a major party candidate in the event of a deficiency 
in the payments received from the Fund due to the application of 11 CFR 
9005.2(b), whose outstanding debts exceed the cash on hand after the end 
of the expenditure report period as determined under 11 CFR 9002.12, may 
dispose of assets acquired for fundraising purposes in a sale to a 
wholesaler or other intermediary who will in turn sell such assets to 
the public provided that the sale to the wholesaler or intermediary is 
an arms-length transaction. Sales made under this subsection will not be 
subject to the limitations and prohibitions of title 2, United States 
Code and 11 CFR parts 110 and 114.

[[Page 214]]



PART 9005--CERTIFICATION BY COMMlSSION--Table of Contents




Sec.
9005.1  Certification of payments for candidates.
9005.2  Payments to eligible candidates from the Fund.

    Authority: 26 U.S.C. 9005, 9006 and 9009(b).

    Source: 56 FR 35923, July 29, 1991, unless otherwise noted.



Sec. 9005.1  Certification of payments for candidates.

    (a) Certification of payments for major party candidates. Not later 
than 10 days after the Commission determines that the Presidential and 
Vice Presidential candidates of a major party have met all applicable 
conditions for eligibility to receive payments under 11 CFR 9003.1 and 
9003.2, the Commission shall certify to the Secretary that payment in 
full of the amounts to which such candidates are entitled under 11 CFR 
part 9004 should be made pursuant to 11 CFR 9005.2.
    (b) Certification of pre-election payments for minor and new party 
candidates. (1) Not later than 10 days after a minor or new party 
candidate has met all applicable conditions for eligibility to receive 
payments under 11 CFR 9003.1, 9003.2 and 9004.2, the Commission will 
make an initial determination of the amount, if any, to which the 
candidate is entitled. The Commission will base its determination on the 
percentage of votes received in the official vote count certified in 
each State. In notifying the candidate, the Commission will give the 
legal and factual reasons for its determination and advise the candidate 
of the evidence on which the determination is based.
    (2) The candidate may submit, within 15 days after the Commission's 
initial determination, written legal or factual materials to demonstrate 
that a redetermination is appropriate. Such materials may be submitted 
by counsel if the candidate so desires.
    (3) The Commission will consider any written legal or factual 
materials timely submitted by the candidate in making its final 
determination. A final determination of certification by the Commission 
will be accompanied by a written statement of reasons for the 
Commission's action. This statement will explain the reasons underlying 
the Commission's determination and will summarize the results of any 
investigation on which the determination is based.
    (c) Certification of minor and new party candidates for post-
election payments. (1) Not later than 30 days after the general 
election, the Commission will determine whether a minor or new party 
candidate is eligible for post-election payments.
    (2) The Commission's determination of eligibility will be based on 
the following factors:
    (i) The candidate has received at least 5% or more of the total 
popular vote based on unofficial vote results in each State;
    (ii) The candidate has filed a preliminary statement of his or her 
net outstanding qualified campaign expenses pursuant to 11 CFR 
9004.9(a); and
    (iii) The candidate has met all applicable conditions for 
eligibility under 11 CFR 9003.1 and 9003.2.
    (3) The Commission will notify the candidate of its initial 
determination of the amount, if any, to which the candidate is entitled, 
give the legal and factual reasons for its determination and advise the 
candidate of the evidence on which the determination is based. The 
Commission will also notify the candidate that it will deduct a 
percentage of the amount to which the candidate is entitled based on the 
unofficial vote results when the Commission certifies an amount for 
payment to the Secretary. This deduction will be based on the average 
percentage differential between the unofficial and official vote results 
for all candidates who received public funds in the preceding 
Presidential general election.
    (4) The candidate may submit within 15 days after the Commission's 
initial determination written legal or factual materials to demonstrate 
that a redetermination is appropriate. Such materials may be submitted 
by counsel if the candidate so desires.
    (5) The Commission will consider any written legal or factual 
materials timely submitted by the candidate in making its final 
determination. A final determination of certification by the

[[Page 215]]

Commission will be accompanied by a written statement of reasons for the 
Commission's action. This statement will explain the reasons underlying 
the Commission's determination and will summarize the results of any 
investigation on which the determination is based.
    (d) All certifications made by the Commission pursuant to this 
section shall be final and conclusive, except to the extent that they 
are subject to examination and audit by the Commission under 11 CFR part 
9007 and judicial review under 26 U.S.C. 9011.

[56 FR 35923, July 29, 1991; 56 FR 55972, Oct. 30, 1991]



Sec. 9005.2  Payments to eligible candidates from the Fund.

    (a) Upon receipt of a certification from the Commission under 11 CFR 
9005.1 for payment to the eligible Presidential and Vice Presidential 
candidates of a political party, the Secretary shall pay to such 
candidates out of the Fund the amount certified by the Commission. 
Amounts paid to a candidate shall be under the control of that 
candidate.
    (b)(1) If at the time of a certification from the Commission under 
11 CFR 9005.1, the Secretary determines that the monies in the Fund are 
not, or may not be, sufficient to satisfy the full entitlements of the 
eligible candidates of all political parties, he or she shall withhold 
an amount which is determined to be necessary to assure that the 
eligible candidates of each political party will receive their pro rata 
share.
    (2) Amounts withheld under 11 CFR 9005.2(b)(1) shall be paid when 
the Secretary determines that there are sufficient monies in the Fund to 
pay such amounts, or pro rata portions thereof, to all eligible 
candidates from whom amounts have been withheld.
    (c) Payments received from the Fund by a major party candidate shall 
be deposited in a separate account maintained by his or her authorized 
committee, unless there is a deficiency in the Fund as provided under 11 
CFR 9005.2(b)(1). In the case of a deficiency, the candidate may 
establish a separate account for payments from the Fund or may deposit 
such payments with contributions received pursuant to 11 CFR 9003.3(b). 
The account(s) shall be maintained at a State bank, federally chartered 
depository institution or other depository institution, the deposits or 
accounts of which are insured by the Federal Deposit Insurance 
Corporation.
    (d) No funds other than the payments received from the Treasury, 
reimbursements, or income generated through use of public funds in 
accordance with 11 CFR 9004.5, shall be deposited in the account 
described in 11 CFR 9005.2(c). ``Reimbursements'' shall include, but are 
not limited to, refunds of deposits, vendor refunds, reimbursements for 
travel expenses under 11 CFR 9004.6 and 9004.7 and reimbursements for 
legal and accounting costs under 11 CFR 9003.3(a)(2)(ii)(B).



PART 9006--REPORTS AND RECORDKEEPING--Table of Contents




Sec.
9006.1  Separate reports.
9006.2  Filing dates.
9006.3  Alphabetized schedules.

    Authority: 2 U.S.C. 434 and 26 U.S.C. 9009(b).

    Source: 56 FR 35924, July 29, 1991, unless otherwise noted.



Sec. 9006.1  Separate reports.

    (a) The authorized committee(s) of a candidate shall report all 
expenditures to further the candidate's general election campaign in 
reports separate from reports of any other expenditures made by such 
committee(s) with respect to other elections. Such reports shall be 
filed pursuant to the requirements of 11 CFR part 104.
    (b) The authorized committee(s) of a candidate shall file separate 
reports as follows:
    (1) One report shall be filed which lists all receipts and 
disbursements of:
    (i) Contributions and loans received by a major party candidate 
pursuant to 11 CFR part 9003 to make up deficiencies in Fund payments 
due to the application of 11 CFR part 9005;
    (ii) Contributions and loans received pursuant to 11 CFR 
9003.2(b)(2) by a minor, or new party for use in the general election;
    (iii) Receipts for expenses incurred before the beginning of the 
expenditure report period pursuant to 11 CFR 9003.4;

[[Page 216]]

    (iv) Personal funds expended in accordance with 11 CFR 9003.2(c); 
and
    (v) Payments received from the Fund.
    (2) A second report shall be filed which lists all receipts of and 
disbursements from, contributions received for the candidate's legal and 
accounting compliance fund in accordance with 11 CFR 9003.3(a).



Sec. 9006.2  Filing dates.

    The reports required to be filed under 11 CFR 9006.1 shall be filed 
during an election year on a monthly or quarterly basis as prescribed at 
11 CFR 104.5(b)(1). During a non-election year, the candidate's 
principal campaign committee may elect to file reports either on a 
monthly or quarterly basis in accordance with 11 CFR 104.5(b)(2).



Sec. 9006.3  Alphabetized schedules.

    If the authorized committee(s) of a candidate file a schedule of 
itemized receipts, disbursements, or debts and obligations pursuant to 
11 CFR 104.3 that was generated directly or indirectly from computerized 
files or records, the schedule shall list in alphabetical order the 
sources of the receipts, the payees or the creditors, as appropriate. In 
the case of individuals, such schedule shall list all contributors, 
payees, and creditors in alphabetical order by surname.

[60 FR 31877, June 16, 1995]



PART 9007--EXAMINATIONS AND AUDITS; REPAYMENTS--Table of Contents




Sec.
9007.1  Audits.
9007.2  Repayments.
9007.3  Extensions of time.
9007.4  Additional audits.
9007.5  Petitions for rehearing; stays of repayment determinations.
9007.6  Stale-dated committee checks.
9007.7  Administrative record.

    Authority: 26 U.S.C. 9007 and 9009(b).

    Source: 56 FR 35924, July 29, 1991, unless otherwise noted.



Sec. 9007.1  Audits.

    (a) General. (1) After each Presidential election, the Commission 
will conduct a thorough examination and audit of the receipts, 
disbursements, debts and obligations of each candidate, his or her 
authorized committee(s), and agents of such candidates or committees. 
Such examination and audit will include, but will not be limited to, 
expenditures pursuant to 11 CFR 9003.4 prior to the beginning of the 
expenditure report period, contributions to and expenditures made from 
the legal and accounting compliance fund established under 11 CFR 
9003.3(a), contributions received to supplement any payments received 
from the Fund, and qualified campaign expenses.
    (2) In addition, the Commission may conduct other examinations and 
audits from time to time as it deems necessary to carry out the 
provisions of this subchapter.
    (3) Information obtained pursuant to any audit and examination 
conducted under 11 CFR 9007.1(a) (1) and (2) may be used by the 
Commission as the basis, or partial basis, for its repayment 
determinations under 11 CFR 9007.2.
    (b) Conduct of fieldwork. (1) If the candidate or the candidate's 
authorized committee does not maintain or use any computerized 
information containing the data listed in 11 CFR 9003.6, the Commission 
will give the candidate's authorized committee at least two weeks' 
notice of the Commission's intention to commence fieldwork on the audit 
and examination. The fieldwork shall be conducted at a site provided by 
the committee. If the candidate or the candidate's authorized committee 
maintains or uses computerized information containing any of the data 
listed in 11 CFR 9003.6, the Commission generally will request such 
information prior to commencement of audit fieldwork. Such request will 
be made in writing. The committee shall produce the computerized 
information no later than 15 calendar days after service of such 
request. Upon receipt of the computerized information requested and 
compliance with the technical specifications of 11 CFR 9003.6(b), the 
Commission will give the candidate's authorized committee at least two 
weeks' notice of the Commission's intention to commence fieldwork on the 
audit and examination. The fieldwork shall be conducted

[[Page 217]]

at a site provided by the committee. During or after audit fieldwork, 
the Commission may request additional or updated computerized 
information which expands the coverage dates of computerized information 
previously provided, and which may be used for purposes including, but 
not limited to, updating a statement of net outstanding qualified 
campaign expenses. During or after audit fieldwork, the Commission may 
also request additional computerized information which was created by or 
becomes available to the committee that is of assistance in the 
Commission's audit. The committee shall produce the additional or 
updated computerized information no later than 15 calendar days after 
service of the Commission's request.
    (i) Office space and records. On the date scheduled for the 
commencement of fieldwork, the candidate or his or her authorized 
committee(s) shall provide Commission staff with office space and 
committee records in accordance with the candidate and committee 
agreement under 11 CFR 9003.1(b)(6).
    (ii) Availability of committee personnel. On the date scheduled for 
the commencement of fieldwork, the candidate or his or her authorized 
committee(s) shall have committee personnel present at the site of the 
fieldwork. Such personnel shall be familiar with the committee's records 
and operation and shall be available to Commission staff to answer 
questions and to aid in locating records.
    (iii) Failure to provide staff, records or office space. If the 
candidate or his or her authorized committee(s) fail to provide adequate 
office space, personnel or committee records, the Commission may seek 
judicial intervention under 2 U.S.C. 437d or 26 U.S.C. 9010(c) to 
enforce the candidate and committee agreement made under 11 CFR 
9003.1(b). Before seeking judicial intervention, the Commission will 
notify the candidate of his or her failure to comply with the agreement 
and will recommend corrective action to bring the candidate into 
compliance. Upon receipt of the Commission's notification, the candidate 
will have ten (10) calendar days in which to take the corrective action 
indicated or to otherwise demonstrate to the Commission in writing that 
he or she is complying with the candidate and committee agreements.
    (iv) If, in the course of the audit process, a dispute arises over 
the documentation sought or other requirements of the candidate 
agreement, the candidate may seek review by the Commission of the issues 
raised. To seek review, the candidate shall submit a written statement 
within 10 days after the disputed Commission staff request is made, 
describing the dispute and indicating the candidate's proposed 
alternative(s).
    (v) If the candidate or his or her authorized committee fails to 
produce particular records, materials, evidence or other information 
requested by the Commission, the Commission may issue an order pursuant 
to 2 U.S.C. 437d(a)(1) or a subpoena or subpoena duces tecum pursuant to 
2 U.S.C. 437d(a)(3). The procedures set forth in 11 CFR 111.11 through 
111.15, as appropriate, shall apply to the production of such records, 
materials, evidence or other information as specified in the order, 
subpoena or subpoena duces tecum.
    (2) Fieldwork will include the following steps designed to keep the 
candidate and committee informed as to the progress of the audit and to 
expedite the process:
    (i) Entrance conference. At the outset of the fieldwork, Commission 
staff will hold an entrance conference, at which the candidate's 
representatives will be advised of the purpose of the audit and the 
general procedures to be followed. Future requirements of the candidate 
and his or her authorized committee, such as possible repayments to the 
United States Treasury, will also be discussed. Committee 
representatives shall provide information and records necessary to 
conduct the audit, and Commission staff will be available to answer 
committee questions.
    (ii) Review of records. During the fieldwork, Commission staff will 
review committee records and may conduct interviews of committee 
personnel. Commission staff will be available to explain aspects of the 
audit and examination as it progresses. Additional meetings between 
Commission staff and committee personnel may be

[[Page 218]]

held from time to time during the fieldwork to discuss possible audit 
findings and to resolve issues arising during the course of the audit.
    (iii) Exit conference. At the conclusion of the fieldwork, 
Commission staff will hold an exit conference to discuss with committee 
representatives the staff's preliminary findings and recommendations 
that the staff anticipates it will present to the Commission for 
approval. Commission staff will advise committee representatives at this 
conference of the committee's opportunity to respond to these 
preliminary findings; the projected timetables regarding the issuance of 
the Preliminary Audit Report, the Audit Report, and any repayment 
determination; the committee's opportunity for an administrative review 
of any repayment determination; and the procedures involved in 
Commission repayment determinations under 11 CFR 9007.2.
    (3) Commission staff may conduct additional fieldwork after the 
completion of the fieldwork conducted pursuant to 11 CFR 9007.1(b) (1) 
and (2). Factors that may necessitate such follow-up fieldwork include, 
but are not limited to, the following:
    (i) Committee response to audit findings;
    (ii) Financial activity of the committee subsequent to the fieldwork 
conducted pursuant to 11 CFR 9007.1(b)(1);
    (iii) Committee responses to Commission repayment determinations 
made under 11 CFR 9007.2.
    (4) The Commission will notify the candidate and his or her 
authorized committee if follow-up fieldwork is necessary. The provisions 
of 11 CFR 9007.1(b) (1) and (2) will apply to any additional fieldwork 
conducted.
    (c) Preliminary Audit Report: Issuance by Commission and committee 
response.
    (1) Commission staff will prepare a written Preliminary Audit 
Report, which will be provided to the committee after it is approved by 
an affirmative vote of four (4) members of the Commission. The 
Preliminary Audit Report may include--
    (i) An evaluation of procedures and systems employed by the 
candidate and committee to comply with applicable provisions of the 
Federal Election Campaign Act, the Presidential Election Campaign Fund 
Act and Commission regulations;
    (ii) The accuracy of statements and reports filed with the 
Commission by the candidate and committee; and
    (iii) Preliminary calculations regarding future repayments to the 
United States Treasury.
    (2) The candidate and his or her authorized committee may submit in 
writing within 60 calendar days after receipt of the Preliminary Audit 
Report, legal and factual materials disputing or commenting on the 
proposed findings contained in the Preliminary Audit Report. In 
addition, the committee shall submit any additional documentation 
requested by the Commission. Such materials may be submitted by counsel 
if the candidate so desires.
    (d) Approval and issuance of the audit report. (1) Before voting on 
whether to approve and issue an audit report, the Commission will 
consider any written legal and factual materials timely submitted by the 
candidate or his or her authorized committee in accordance with 
paragraph (c) of this section. The Commission-approved audit report may 
address issues other than those contained in the Preliminary Audit 
Report. In addition, this report will contain a repayment determination 
made by the Commission pursuant to 11 CFR 9007.2(c)(1).
    (2) The audit report may contain issues that warrant referral to the 
Office of General Counsel for possible enforcement proceedings under 2 
U.S.C. 437g and 11 CFR part 111.
    (3) Addenda to the audit report may be approved and issued by the 
Commission from time to time as circumstances warrant and as additional 
information becomes available. Such addenda may be based on follow-up 
fieldwork conducted under paragraph (b)(3) of this section, and/or 
information ascertained by the Commission in the normal course of 
carrying out its supervisory responsibilities. The procedures set forth 
in paragraphs (c) and (d) (1) and (2) of this section will be followed 
in preparing such addenda. The addenda will be placed on the public 
record as set forth in paragraph (e) of

[[Page 219]]

this section. Such addenda may also include additional repayment 
determination(s).
    (e) Public release of audit report. (1) The Commission will consider 
the audit report in an open session agenda document. The Commission will 
provide the candidate and the committee with copies of any agenda 
document to be considered in an open session 24 hours prior to releasing 
the agenda document to the public.
    (2) Following Commission approval of the audit report, the report 
will be forwarded to the committee and released to the public. The 
Commission will provide the candidate and committee with copies of the 
audit report approved by the Commission 24 hours before releasing the 
report to the public.
    (f)(1) Sampling. In conducting an audit of contributions pursuant to 
this section, the Commission may utilize generally accepted statistical 
sampling techniques to quantify, in whole or in part, the dollar value 
of related audit findings. A projection of the total amount of 
violations based on apparent violations identified in such a sample may 
become the basis, in whole or in part, of any audit finding.
    (2) A committee in responding to a sample-based finding shall 
respond only to the specific sample items used to make the projection. 
If the committee demonstrates that any apparent errors found among the 
sample items were not errors, the Commission shall make a new projection 
based on the reduced number of errors in the sample.
    (3) Within 30 days of service of the Final Audit Report, the 
committee shall submit a check to the United States Treasury for the 
total amount of any excessive or prohibited contributions not refunded, 
reattributed or redesignated in a timely manner in accordance with 11 
CFR 103.3(b) (1), (2) or (3); or take any other action required by the 
Commission with respect to sample-based findings.

[56 FR 35924, July 29, 1991; 56 FR 42380, Aug. 27, 1991; 60 FR 31878, 
June 16, 1995; 64 FR 61780, Nov. 15, 1999]

    Effective Date Note: At 64 FR 61780, Nov. 15, 1999, Sec. 9007.1, 
paragraphs (b)(2)(iii) and (c) and the second sentence of paragraph 
(d)(1) were revised, effective after this regulation has been before 
Congress for thirty legislative days pursuant to 26 U.S.C. 9009(c) and 
9039(c). The text remaining in effect until further notice appears 
below:

Sec. 9007.1  Audits.

                                * * * * *

    (b) * * *
    (2) * * *
    (iii) Exit conference. At the conclusion of the fieldwork, 
Commission staff will hold an exit conference to discuss with committee 
representatives the staff's preliminary findings and recommendations 
which the staff anticipates it will present to the Commission for 
approval. Commission staff will prepare a written Exit Conference 
Memorandum that discusses these findings and recommendations. A copy of 
the Exit Conference Memorandum will be given to committee 
representatives at the exit conference. These preliminary staff findings 
may include an evaluation of procedures and systems employed by the 
candidate and committee to comply with applicable provisions of the 
Federal Election Campaign Act, the Presidential Election Campaign Fund 
Act and Commission regulations; the accuracy of statements and reports 
filed with the Commission by the candidate and committee; and 
preliminary calculations regarding future repayments to the United 
States Treasury. Commission staff will advise committee representatives 
at this conference of the committee's opportunity to respond to these 
proposed findings, the projected timetable regarding the issuance of the 
audit report and any repayment determination, the committee's 
opportunity for an administrative review of any repayment determination, 
and the procedures involved in Commission repayment determinations under 
11 CFR 9007.2.

                                * * * * *

    (c) Committee response to the Exit Conference Memorandum. The 
candidate and his or her authorized committee may submit in writing 
within 60 calendar days after the exit conference, legal and factual 
materials disputing or commenting on the proposed findings contained in 
the Exit Conference Memorandum. In addition, the committee shall submit 
any additional documentation requested by Commission staff. Such 
materials may be submitted by counsel if the candidate so desires.
    (d) * * *
    (1) * * *The Commission-approved audit report may address issues 
other than those

[[Page 220]]

contained in the Exit Conference Memorandum. * * *

                                * * * * *



Sec. 9007.2  Repayments.

    (a) General. (1) A candidate who has received payments from the Fund 
under 11 CFR part 9005 shall pay the United States Treasury any amounts 
which the Commission determines to be repayable under this section. In 
making repayment determinations under this section, the Commission may 
utilize information obtained from audits and examinations conducted 
pursuant to 11 CFR 9007.1 or otherwise obtained by the Commission in 
carrying out its responsibilities under this subchapter.
    (2) The Commission will notify the candidate of any repayment 
determinations made under this section as soon as possible, but not 
later than 3 years after the day of the presidential election. The 
Commission's issuance of the audit report to the candidate under 11 CFR 
9007.1(d) will constitute notification for purposes of this section.
    (3) Once the candidate receives notice of the Commission's repayment 
determination under this section, the candidate should give preference 
to the repayment over all other outstanding obligations of his or her 
committee, except for any federal taxes owed by the committee.
    (4) Repayments may be made only from the following sources: personal 
funds of the candidate (without regard to the limitations of 11 CFR 
9003.2(c)), contributions and federal funds in the committee's 
account(s), and any additional funds raised subject to the limitations 
and prohibitions of the Federal Election Campaign Act of 1971, as 
amended.
    (b) Bases for repayment. The Commission may determine that an 
eligible candidate of a political party who has received payments from 
the Fund must repay the United States Treasury under any of the 
circumstances described below.
    (1) Payments in excess of candidate's entitlement. If the Commission 
determines that any portion of the payments made to the candidate was in 
excess of the aggregate payments to which such candidate was entitled, 
it will so notify the candidate, and such candidate shall pay to the 
United States Treasury an amount equal to such portion.
    (2) Use of funds for non-qualified campaign expenses. (i) If the 
Commission determines that any amount of any payment to an eligible 
candidate from the Fund was used for purposes other than those described 
in paragraphs (b)(2)(i) (A) through (C) of this section, it will notify 
the candidate of the amount so used, and such candidate shall pay to the 
United States Treasury an amount equal to such amount.
    (A) To defray qualified campaign expenses;
    (B) To repay loans, the proceeds of which were used to defray 
qualified campaign expenses; and
    (C) To restore funds (other than contributions which were received 
and expended by minor or new party candidates to defray qualified 
campaign expenses) which were used to defray qualified campaign 
expenses.
    (ii) Examples of Commission repayment determinations under 11 CFR 
9007.2(b)(2) include, but are not limited to the following:
    (A) Determinations that a candidate, a candidate's authorized 
committee(s) or agent(s) have incurred expenses in excess of the 
aggregate payments to which an eligible major party candidate is 
entitled;
    (B) Determinations that amounts spent by a candidate, a candidate's 
authorized committee(s) or agent(s) from the Fund were not documented in 
accordance with 11 CFR 9003.5;
    (C) Determinations that any portion of the payments made to a 
candidate from the Fund was expended in violation of State or Federal 
law; and
    (D) Determinations that any portion of the payments made to a 
candidate from the Fund was used to defray expenses resulting from a 
violation of State or Federal law, such as the payment of fines or 
penalties.
    (iii) In the case of a candidate who has received contributions 
pursuant to 11 CFR 9003.3 (b) or (c), the amount of any repayment sought 
under this section shall bear the same ratio to the total amount 
determined to have been

[[Page 221]]

used for non-qualified campaign expenses as the amount of payments 
certified to the candidate from the Fund bears to the total deposits, as 
of December 31 of the Presidential election year. For purposes of this 
section, total deposits means all deposits to all candidate accounts 
minus transfers between accounts, refunds, rebates, reimbursements, 
checks returned for insufficient funds, proceeds of loans and other 
similar amounts.
    (3) Surplus. If the Commission determines that a portion of payments 
from the Fund remains unspent after all qualified campaign expenses have 
been paid, it shall so notify the candidate, and such candidate shall 
pay the United States Treasury that portion of surplus funds.
    (4) Income on investment or other use of payments from the Fund. If 
the Commission determines that a candidate received any income as a 
result of an investment or other use of payments from the fund pursuant 
to 11 CFR 9004.5, it shall so notify the candidate, and such candidate 
shall pay to the United States Treasury an amount equal to the amount 
determined to be income, less any Federal, State or local taxes on such 
income.
    (5) Unlawful acceptance of contributions by an eligible candidate of 
a major party. If the Commission determines that an eligible candidate 
of a major party, the candidate's authorized committee(s) or agent(s) 
accepted contributions to defray qualified campaign expenses (other than 
contributions to make up deficiencies in payments from the Fund, or to 
defray expenses incurred for legal and accounting services in accordance 
with 11 CFR 9003.3(a)), it shall notify the candidate of the amount of 
contributions so accepted, and the candidate shall pay to the United 
States Treasury an amount equal to such amount.
    (c) Repayment determination procedures. The Commission's repayment 
determination will be made in accordance with the procedures set forth 
at paragraphs (c)(1) through (c)(4) of this section.
    (1) Repayment determination. The Commission will provide the 
candidate with a written notice of its repayment determination(s). This 
notice will be included in the Commission's audit report prepared 
pursuant to 11 CFR 9007.1(d) and will set forth the legal and factual 
reasons for such determination(s), as well as the evidence upon which 
any such determination is based. The candidate shall repay to the United 
States Treasury in accordance with paragraph (d) of this section, the 
amount which the Commission has determined to be repayable.
    (2) Administrative review of repayment determination. If a candidate 
disputes the Commission's repayment determination(s), he or she may 
request an administrative review of the determination(s) as set forth in 
paragraph (c)(2)(i) of this section.
    (i) Submission of written materials. A candidate who disputes the 
Commission's repayment determination(s) shall submit in writing, within 
60 calendar days after service of the Commission's notice, legal and 
factual materials demonstrating that no repayment, or a lesser 
repayment, is required. Such materials may be submitted by counsel if 
the candidate so desires. The candidate's failure to timely raise an 
issue in written materials presented pursuant to this paragraph will be 
deemed a waiver of the candidate's right to raise the issue at any 
future stage of proceedings including any petition for review filed 
under 26 U.S.C. 9011(a).
    (ii) Oral hearing. A candidate who submits written materials 
pursuant to paragraph (c)(2)(i) of this section may at the same time 
request in writing that the Commission provide such candidate with an 
opportunity to address the Commission in open session to demonstrate 
that no repayment, or a lesser repayment, is required. The candidate 
should identify in this request the repayment issues he or she wants to 
address at the oral hearing. If the Commission decides by an affirmative 
vote of four (4) of its members to grant the candidate's request, it 
will inform the candidate of the date and time set for the oral hearing. 
At the date and time set by the Commission, the candidate or candidate's 
designated representative will be allotted an amount of time in which to 
make an oral presentation to the Commission based upon

[[Page 222]]

the legal and factual materials submitted under paragraph (c)(2)(ii) of 
this section. The candidate or representative will also have the 
opportunity to answer any questions from individual members of the 
Commission.
    (3) Repayment determination upon review. In deciding whether to 
revise any repayment determination(s) following an administrative review 
pursuant to paragraph (c)(2) of this section, the Commission will 
consider any submission made under paragraph (c)(2)(i) of this section 
and any oral hearing conducted under paragraph (c)(2)(ii) of this 
section, and may also consider any new or additional information from 
other sources. A determination following an administrative review that a 
candidate must repay a certain amount will be accompanied by a written 
statement of reasons supporting the Commission's determination(s). This 
statement will explain the legal and factual reasons underlying the 
Commission's determination(s) and will summarize the results of any 
investigation(s) upon which the determination(s) are based.
    (d) Repayment period. (1) Within 90 calendar days of service of the 
notice of the Commission's repayment determination(s), the candidate 
shall repay to the United States Treasury the amounts which the 
Commission has determined to be repayable. Upon application by the 
candidate, the Commission may grant an extension of up to 90 calendar 
days in which to make repayment.
    (2) If the candidate requests an administrative review of the 
Commission's repayment determination(s) under paragraph (c)(2) of this 
section, the time for repayment will be suspended until the Commission 
has concluded its administrative review of the repayment 
determination(s). Within 30 calendar days after service of the notice of 
the Commission's post-administrative review repayment determination(s), 
the candidate shall repay to the United States Treasury the amounts 
which the Commission has determined to be repayable. Upon application by 
the candidate, the Commission may grant an extension of up to 90 
calendar days in which to make repayment.
    (3) Interest shall be assessed on all repayments made after the 
initial 90-day repayment period established at paragraph (d)(1) of this 
section or the 30-day repayment period established at paragraph (d)(2) 
of this section. The amount of interest due shall be the greater of:
    (i) An amount calculated in accordance with 28 U.S.C. 1961 (a) and 
(b); or
    (ii) The amount actually earned on the funds set aside or to be 
repaid under this section.
    (e) Computation of time. The time periods established by this 
section shall be computed in accordance with 11 CFR 111.2.
    (f) Additional repayments. Nothing in this section will prevent the 
Commission from making additional repayment determinations on one or 
more of the bases set forth at 11 CFR 9007.2(b) after it has made a 
repayment determination on any such basis. The Commission may make 
additional repayment determinations where there exist facts not used as 
the basis for any previous determination. Any such additional repayment 
determination will be made in accordance with the provisions of this 
section.
    (g) Newly-discovered assets. If, after any repayment determination 
made under this section, a candidate or his or her authorized 
committee(s) receives or becomes aware of assets not previously included 
in any statement of net outstanding qualified campaign expenses 
submitted pursuant to 11 CFR 9004.9, the candidate or his or her 
authorized committee(s) shall promptly notify the Commission of such 
newly-discovered assets. Newly-discovered assets may include refunds, 
rebates, late-arriving receivables, and actual receipts for capital 
assets in excess of the value specified in any previously-submitted 
statement of net outstanding qualified campaign expenses. Newly-
discovered assets may serve as a basis for additional repayment 
determinations under 11 CFR 9007.2(f).
    (h) Limit on repayment. No repayment shall be required from the 
eligible candidates of a political party under 11 CFR 9007.2 to the 
extent that such repayment, when added to other repayments required from 
such candidates under 11 CFR 9007.2, exceeds the

[[Page 223]]

amount of payments received by such candidates under 11 CFR 9005.2.
    (i) Petitions for rehearing; stays pending appeal. The candidate may 
file a petition for rehearing of a repayment determination in accordance 
with 11 CFR 9007.5(a). The candidate may request a stay of a repayment 
determination in accordance with 11 CFR 9007.5(c) pending the 
candidate's appeal of that repayment determination.

[56 FR 35924, July 29, 1991, as amended at 60 FR 31878, June 16, 1995]



Sec. 9007.3  Extensions of time.

    (a) It is the policy of the Commission that extensions of time under 
11 CFR part 9007 will not be routinely granted.
    (b) Whenever a candidate has a right or is required to take action 
within a period of time prescribed by 11 CFR part 9007 or by notice 
given thereunder, the candidate may apply in writing to the Commission 
for an extension of time in which to exercise such right or take such 
action. The candidate shall demonstrate in the application for extension 
that good cause exists for his or her request.
    (c) An application for extension of time shall be made at least 7 
calendar days prior to the expiration of the time period for which the 
extension is sought. The Commission may, upon a showing of good cause, 
grant an extension of time to a candidate who has applied for such 
extension in a timely manner. The length of time of any extension 
granted hereunder shall be decided by the Commission and may be less 
than the amount of time sought by the candidate in his or her 
application. If a candidate seeks an extension of any 60-day response 
period under 11 CFR part 9007, the Commission may grant no more than one 
extension to that candidate, which extension shall not exceed 15 days.
    (d) If a candidate fails to seek an extension of time, exercise a 
right or take a required action prior to the expiration of a time period 
prescribed by 11 CFR part 9007, the Commission may, on the candidate's 
showing of excusable neglect:
    (1) Permit such candidate to exercise his or her right(s), or take 
such required action(s) after the expiration of the prescribed time 
period; and
    (2) Take into consideration any information obtained in connection 
with the exercise of any such right or taking of any such action before 
making decisions or determinations under 11 CFR part 9007.

[56 FR 35924, July 29, 1991, as amended at 60 FR 31880, June 16, 1995]



Sec. 9007.4  Additional audits.

    In accordance with 11 CFR 104.16(c), the Commission, pursuant to 11 
CFR 111.10, may upon affirmative vote of four members conduct an audit 
and field investigation of any committee in any case in which the 
Commission finds reason to believe that a violation of a statute or 
regulation over which the Commission has jurisdiction has occurred or is 
about to occur.



Sec. 9007.5  Petitions for rehearing; stays of repayment determinations.

    (a) Petitions for rehearing. (1) Following the Commission's 
repayment determination or a final determination that a candidate is not 
entitled to all or a portion of post-election funding under 11 CFR 
9004.9(f), the candidate may file a petition for rehearing setting forth 
the relief desired and the legal and factual basis in support. To be 
considered by the Commission, petitions for rehearing must:
    (i) Be filed within 20 calendar days following service of the 
Commission's repayment determination or final determination;
    (ii) Raise new questions of law or fact that would materially alter 
the Commission's repayment determination or final determination; and
    (iii) Set forth clear and convincing grounds why such questions were 
not and could not have been presented during the original determination 
process.
    (2) If a candidate files a timely petition under this section 
challenging a Commission repayment determination, the time for repayment 
will be suspended until the Commission serves notice on the candidate of 
its determination on the petition. The time periods for making repayment 
under 11 CFR 9007.2(d) shall apply to any amounts determined to be 
repayable following the Commission's consideration of a petition for 
rehearing under this section.

[[Page 224]]

    (b) Effect of failure to raise issues. The candidate's failure to 
raise an argument in a timely fashion during the original determination 
process or in a petition for rehearing under this section, as 
appropriate, shall be deemed a waiver of the candidate's right to 
present such arguments in any future stage of proceedings including any 
petition for review filed under 26 U.S.C. 9011(a). An issue is not 
timely raised in a petition for rehearing if it could have been raised 
earlier in response to the Commission's original determination.
    (c) Stay of repayment determination pending appeal. (1)(i) The 
candidate may apply to the Commission for a stay of all or a portion of 
the amount determined to be repayable under this section or under 11 CFR 
9007.2 pending the candidate's appeal of that repayment determination 
pursuant to 26 U.S.C. 9011(a). The repayment amount requested to be 
stayed shall not exceed the amount at issue on appeal.
    (ii) A request for a stay shall be made in writing and shall be 
filed within 30 calendar days after service of the Commission's decision 
on a petition for rehearing under paragraph (a) of this section or, if 
no petition for rehearing is filed, within 30 calendar days after 
service of the Commission's repayment determination under 11 CFR 
9007.2(c).
    (2) The Commission's approval of a stay request will be conditioned 
upon the candidate's presentation of evidence in the stay request that 
he or she:
    (i) Has placed the entire amount at issue in a separate interest-
bearing account pending the outcome of the appeal and that withdrawals 
from the account may only be made with the joint signatures of the 
candidate or his or her agent and a Commission representative; or
    (ii) Has posted a surety bond guaranteeing payment of the entire 
amount at issue plus interest; or
    (iii) Has met the following criteria:
    (A) He or she will suffer irreparable injury in the absence of a 
stay; and, if so, that
    (B) He or she has made a strong showing of the likelihood of success 
on the merits of the judicial action.
    (C) Such relief is consistent with the public interest; and
    (D) No other party interested in the proceedings would be 
substantially harmed by the stay.
    (3) In determining whether the candidate has made a strong showing 
of the likelihood of success on the merits under paragraph 
(c)(2)(iii)(B) of this section, the Commission may consider whether the 
issue on appeal presents a novel or admittedly difficult legal question 
and whether the equities of the case suggest that the status quo should 
be maintained.
    (4) All stays shall require the payment of interest on the amount at 
issue. The amount of interest due shall be calculated from the date 30 
days after service of the Commission's repayment determination under 11 
CFR 9007.2(c)(4) and shall be the greater of:
    (i) An amount calculated in accordance with 28 U.S.C. 1961 (a) and 
(b); or
    (ii) The amount actually earned on the funds set aside under this 
section.

[56 FR 35924, July 29, 1991, as amended at 60 FR 31880, June 16, 1995]



Sec. 9007.6  Stale-dated committee checks.

    If the committee has checks outstanding to creditors or contributors 
that have not been cashed, the committee shall notify the Commission. 
The committee shall inform the Commission of its efforts to locate the 
payees, if such efforts have been necessary, and its efforts to 
encourage the payees to cash the outstanding checks. The committee shall 
also submit a check for the total amount of such outstanding checks, 
payable to the United States Treasury.



Sec. 9007.7  Administrative record.

    (a) The Commission's administrative record for final determinations 
under 11 CFR 9004.9 and 9005.1, and for repayment determinations under 
11 CFR 9007.2, consists of all documents and materials submitted to the 
Commission for its consideration in making those determinations. The 
administrative record will include the certification of the Commission's 
vote(s), the audit report that is sent to the committee (for repayment 
determinations), the statement(s) of reasons, and the candidate 
agreement. The committee may include documents or materials in

[[Page 225]]

the administrative record by submitting them within the time periods set 
forth at 11 CFR 9004.9(f)(2)(ii), 9005.1(b)(2), 9005.1(c)(4), 9007.1(c) 
and 9007.2(c)(2), as appropriate.
    (b) The Commission's administrative record for determinations under 
11 CFR 9004.9, 9005.1 and 9007.2 does not include:
    (1) Documents and materials in the files of individual Commissioners 
or employees of the Commission that do not constitute a basis for the 
Commission's decisions because they were not circulated to the 
Commission and were not referenced in documents that were circulated to 
the Commission;
    (2) Transcripts or audio tapes of Commission discussions other than 
transcripts or audio tapes of oral hearings pursuant to 11 CFR 
9007.2(c)(2), although such transcripts or tapes may be made available 
under 11 CFR parts 4 or 5; or
    (3) Documents properly subject to privileges such as an attorney-
client privilege, or items constituting attorney work product.
    (c) The administrative record identified in paragraph (a) of this 
section is the exclusive record for the Commission's determinations 
under 11 CFR 9004.9, 9005.1 and 9007.2

[60 FR 31880, June 16, 1995]



PART 9008--FEDERAL FINANCING OF PRESIDENTIAL NOMINATING CONVENTIONS--Table of Contents




Subpart A--Expenditures by National Committees and Convention Committees

Sec.
9008.1  Scope.
9008.2  Definitions.
9008.3  Eligibility for payments; registration and reporting.
9008.4  Entitlement to payments from the fund.
9008.5  Adjustment of entitlement.
9008.6  Payment and certification procedures.
9008.7  Use of funds.
9008.8  Limitation of expenditures.
9008.9  Receipt of goods and services from commercial vendors.
9008.10  Documentation of disbursements; net outstanding convention 
          expenses.
9008.11  Examinations and audits.
9008.12  Repayments.
9008.13  Additional audits.
9008.14  Petitions for rehearing: stays of repayment determinations.
9008.15  Extensions of time.
9008.16  Stale-dated committee checks.

 Subpart B--Host Committees Representing a Convention City; Convention 
     Expenditures by Government Agencies and Municipal Corporations

9008.50  Scope.
9008.51  Registration and reports.
9008.52  Receipts and disbursements of host committees.
9008.53  Receipts and disbursements of government agencies and municipal 
          corporations.
9008.54  Examinations and audits.

    Authority: 2 U.S.C. 437, 438(a)(8); 26 U.S.C. 9008, 9009(b).

    Source: 59 FR 33616, June 29, 1994, unless otherwise noted.



Subpart A--Expenditures by National Committees and Convention Committees



Sec. 9008.1  Scope.

    (a) This part interprets 2 U.S.C. 437 and 26 U.S.C. 9008. Under 26 
U.S.C. 9008(b), the national committees of both major and minor parties 
are entitled to public funds to defray expenses incurred with respect to 
a Presidential Nominating convention. Under 26 U.S.C. 9008(d), 
expenditures with regard to such a convention by a national committee 
receiving public funds are limited to $4,000,000, as adjusted by the 
Consumer Price Index. New parties are not entitled to receive any public 
funds to defray convention expenses.
    (b) Under 2 U.S.C. 437, each committee or organization which 
represents a national party in making arrangements for that party's 
presidential nominating convention is required to file disclosure 
reports. This reporting obligation extends to all such committees or 
organizations, regardless of whether or not public funds are used or 
available to defray convention expenses.



Sec. 9008.2  Definitions.

    (a) Commission means the Federal Election Commission, 999 E Street, 
NW., Washington, DC 20463.

[[Page 226]]

    (b) Fund means the Presidential Election Campaign Fund established 
by 26 U.S.C. 9006(a).
    (c) Major party means, with respect to any presidential election, a 
political party whose candidate for the office of President in the 
preceding presidential election received, as the candidate of such 
party, 25 percent or more of the total number of popular votes received 
by all candidates for such office.
    (d) Minor party means, with respect to any presidential election, a 
political party whose candidate for the office of President in the 
preceding presidential election received, as the candidate of such 
party, 5 percent or more, but less than 25 percent, of the total number 
of popular votes received by all candidates for such office.
    (e) National committee means the organization which, by virtue of 
the by-laws of the political party, is responsible for the day to day 
operation of that party at the national level.
    (f) New party means, with respect to any presidential election, a 
political party which is neither a major party nor a minor party.
    (g) Nominating convention means a convention, caucus or other 
meeting which is held by a political party at the national level and 
which chooses the presidential nominee of the party through selection by 
delegates to that convention or through other similar means.
    (h) Secretary means the Secretary of the Treasury of the United 
States.



Sec. 9008.3  Eligibility for payments; registration and reporting.

    (a) Eligibility requirements. (1) To qualify for entitlement under 
11 CFR 9008.4 and 9008.5, the national committee of a major or minor 
political party shall establish a convention committee pursuant to 
paragraph (a)(2) of this section and shall file an application statement 
pursuant to paragraph (a)(3) of this section. The convention committee, 
in conjunction with the national committee, shall file an agreement to 
comply with the conditions set forth at paragraph (a)(4) of this 
section.
    (2) The national committee shall establish a convention committee 
which shall be responsible for conducting the day to day arrangements 
and operations of that party's presidential nominating convention. The 
convention committee shall register with the Commission as a political 
committee pursuant to 11 CFR part 102. The convention committee shall 
receive all public funds to which the national committee is entitled 
under 11 CFR 9008.4 and 9008.5 and all private contributions made for 
the purpose of defraying convention expenses. All expenditures on behalf 
of the national committee for convention expenses shall be made by the 
convention committee.
    (3) The national committee shall file with the Commission an 
application statement. Any changes in the information provided in the 
application statement must be reported to the Commission within 10 days 
following the change. The application statement shall include:
    (i) The name and address of the national committee;
    (ii) The name and address of the convention committee and of the 
officers of that committee;
    (iii) The name of the city where the convention is to be held and 
the approximate dates;
    (iv) The name, address, and position of the convention committee 
officers designated by the national committee to sign requests for 
payments; and
    (v) The name and address of the depository of the convention 
committee.
    (4) The convention committee shall, by letter to the Commission, 
agree to the conditions set forth in paragraph (a)(4) (i) through (viii) 
of this section. This agreement shall also be binding upon the national 
committee.
    (i) The convention committee shall agree to comply with the 
applicable expenditure limitation set forth at 11 CFR 9008.8.
    (ii) The convention committee shall agree to file convention reports 
as required under 2 U.S.C. 437 and 11 CFR 9008.3(b).
    (iii) The convention committee shall agree to establish one or more 
accounts into which all public funds received under 11 CFR 9008.4 and 
9008.5 must be deposited and from which all expenditures for convention 
expenses must be made. Such account(s) shall

[[Page 227]]

contain only public funds except as provided in 11 CFR 9008.6(a)(3).
    (iv) The convention committee shall agree to keep and furnish to the 
Commission all documentation of convention disbursements made by the 
committee as required under 11 CFR 9008.10. The convention committee has 
the burden of proving that disbursements by the convention committee 
were for purposes of defraying convention expenses as set forth at 11 
CFR 9008.7(a)(4).
    (v) The convention committee shall agree to furnish to the 
Commission any books, records (including bank records for all accounts), 
a copy of any contract which the national committee enters into with a 
host committee or convention city or vendor, a copy of documentation 
provided by commercial vendors in accordance with 11 CFR 9008.9(b), and 
any other information that the Commission may request. If the convention 
committee maintains or uses computerized information containing any of 
the categories of data listed in 11 CFR 9008.10(h)(1) (i) through (iv), 
the convention committee will provide computerized magnetic media, such 
as magnetic tapes or magnetic diskettes, containing the computerized 
information at the times specified in 11 CFR 9008.10(h)(2) that meet the 
requirements of 11 CFR 102.9 and 9008.10 (a) and (b). Upon request, 
documentation explaining the computer system's software capabilities 
shall be provided, and such personnel as are necessary to explain the 
operation of the computer system's software and the computerized 
information prepared or maintained by the convention committee shall 
also be made available.
    (vi) The convention committee shall agree to permit an audit and 
examination pursuant to 26 U.S.C. 9008(g) and 11 CFR 9008.11 of all 
convention expenses; to facilitate such audit by making available office 
space, records, and such personnel as is necessary to the conduct of the 
audit and examination; and to pay any amounts required to be paid under 
26 U.S.C. 9008(h) and 11 CFR 9008.12.
    (vii) The convention committee shall agree to comply with the 
applicable requirements of 2 U.S.C. 431 et seq., 26 U.S.C. 9008, and the 
Commission's regulations at 11 CFR parts 100-116 and 9008.
    (viii) The convention committee shall pay any civil penalties 
included in a conciliation agreement or imposed under 2 U.S.C. 437g.
    (5) The application statement and agreement may be filed at any time 
after June 1 of the calendar year preceding the year in which a 
Presidential nominating convention of the political party is held, but 
no later than the first day of the convention.
    (b) Registration and reports by political parties. (1) Registration. 
(i) Each convention committee established by a national committee under 
paragraph (a)(2) of this section shall register with the Commission on 
FEC Form 1 as a political committee pursuant to 11 CFR part 102 and 
shall file reports with the Commission as required at paragraph (b)(2) 
of this section. Each report filed by the committee shall contain the 
information required by 11 CFR part 104.
    (ii) A State party committee or a subordinate committee of a State 
party committee which only assists delegates and alternates to the 
convention from that State with travel expenses and arrangements, or 
which sponsors caucuses, receptions, and similar activities at the 
convention site, need not register or report under this section.
    (2) Quarterly and post convention reports; content and time of 
filing. Each committee required to register under paragraph (b)(1) of 
this section shall file reports as follows:
    (i) The first quarterly report shall be filed on FEC Form 4 no later 
than 15 days following the end of the calendar quarter in which the 
committee either receives payment under 11 CFR 9008.6, or for parties 
which do not accept public funds, no later than 15 days after the 
calendar quarter in which the committee receives contributions or makes 
expenditures to defray convention expenses. The committee shall continue 
to file reports on a quarterly basis no later than the 15th day 
following the close of each calendar quarter, except that the report for 
the final calendar quarter of the year shall be filed on January 31 of 
the following calendar

[[Page 228]]

year. Quarterly reports shall be completed as of the close of the 
quarter and shall continue to be filed until the committee ceases 
activity in connection with that party's presidential nominating 
convention.
    (ii) Any quarterly report due within 20 days before or after the 
convention shall be suspended and the committee shall in lieu of such 
quarterly report file a post convention report. The post convention 
report shall be filed on the earlier of: 60 days following the last day 
the convention is officially in session; or 20 days prior to the 
presidential general election. The post convention report shall be 
complete as of 15 days prior to the date on which the report must be 
filed.
    (c) Cessation of activity. A convention committee which has received 
payments under 11 CFR 9008.6 shall cease activity no later than 24 
months after the convention, unless the committee has been granted an 
extension of time. The Commission may grant any extension of time it 
deems appropriate upon request of the committee at least 30 days prior 
to the close of the 24 month period.



Sec. 9008.4  Entitlement to payments from the fund.

    (a) Major parties. Subject to the provisions of this part, the 
national committee of a major party shall be entitled to receive 
payments under 11 CFR 9008.6 with respect to any presidential nominating 
convention, in amounts which, in the aggregate, shall not exceed $4 
million, as adjusted by the Consumer Price Index under 11 CFR 9008.5(a).
    (b) Minor parties. Subject to the provisions of this part, the 
national committee of a minor party shall be entitled to payments under 
11 CFR 9008.6 with respect to any presidential nominating convention in 
amounts which, in the aggregate, shall not exceed an amount which bears 
the same ratio to the amount which the national committee of a major 
party is entitled to receive under 11 CFR 9008.5 as the number of 
popular votes received in the preceding presidential election by that 
minor party's presidential candidate bears to the average number of 
popular votes received in the preceding presidential election by all of 
the major party presidential candidates.
    (c) Limitation on payments. Payments to the national committee of a 
major party or a minor party under 11 CFR 9008.6 from the account 
designated for such committee shall be limited to the amounts in such 
account at the time of payment.



Sec. 9008.5  Adjustment of entitlement.

    (a) The entitlements established by 11 CFR 9008.4 shall be adjusted 
on the basis of the Consumer Price Index pursuant to the provisions of 2 
U.S.C. 441a(c).
    (b) The entitlements established by 11 CFR 9008.4 shall be adjusted 
so as not to exceed the difference between the expenditure limitations 
of 11 CFR 9008.8(a) and the amount of private contributions received 
under 11 CFR 9008.6(a) by the national committee of a political party. 
Except as provided in 11 CFR 9008.12(b)(7), in calculating these 
adjustments, amounts expended by Government agencies and municipal 
corporations in accordance with 11 CFR 9008.53; in-kind donations by 
businesses to the national committee or convention committee in 
accordance with 11 CFR 9008.9; expenditures by host committees in 
accordance with 11 CFR 9008.52; expenditures to participate in or attend 
the convention under 11 CFR 9008.8(b)(2); and legal and accounting 
services rendered in accordance with 11 CFR 9008.8(b)(4) will not be 
considered private contributions or expenditures counting against the 
limitation.



Sec. 9008.6  Payment and certification procedures.

    (a) Optional payments; private contributions. (1) The national 
committee of a major or minor party may elect to receive all, part, or 
none of the amounts to which it is entitled under 11 CFR 9008.4 and 
9008.5.
    (2) If a national committee of a major or minor party elects to 
receive part of the amounts to which it is entitled under 11 CFR 9008.4 
and 9008.5, or if the Secretary determines there is a deficiency in the 
Fund under 26 U.S.C. 9008(b)(4), the national committee may receive and 
use private contributions, so long as the sum of the contributions

[[Page 229]]

which are used to defray convention expenses and the amount of 
entitlements elected to be received does not exceed the total 
expenditure limitation under 11 CFR 9008.8.
    (3) All private contributions received by the national committee to 
defray convention expenses shall be subject to all reporting 
requirements, limitations and prohibitions of Title 2, United States 
Code. The convention committee may establish a separate account for 
private contributions or may deposit such contributions with payments 
received from the Fund pursuant to paragraph (d) of this section. The 
account(s) shall be maintained at a State bank, federally chartered 
depository institution or other depository institution, the deposits or 
accounts of which are insured by the Federal Deposit Insurance 
Corporation.
    (b) Increase in certified amount. If the application statement is 
filed before it is possible to determine the cost of living increase for 
the year preceding the convention, that amount determined by the 
increase shall be paid to the national committee promptly after the 
increase has been determined.
    (c) Availability of payments. The national committee of a major or 
minor party may receive payments under this section beginning on July 1 
of the calendar year immediately preceding the calendar year in which a 
Presidential nominating convention of the political party involved is 
held.
    (d) Certification of payment. After a national committee has 
properly submitted its application statement and agreement as required 
under 11 CFR 9008.3(a) (3) and (4), and upon receipt of a written 
request, payment of the committee's entitlement will be certified by the 
Commission to the Secretary of the Treasury.



Sec. 9008.7  Use of funds.

    (a) Permissible uses. Any payment made under 11 CFR 9008.6 shall be 
used only for the following purposes:
    (1) Such payment may be used to defray convention expenses 
(including the payment of deposits) incurred by or on behalf of the 
national committee receiving such payments; or
    (2) Such payment may be used to repay the principal and interest, at 
a commercially reasonable rate, on loans the proceeds of which were used 
to defray convention expenses; or
    (3) Such payment may be used to restore funds (including advances 
from the national committee to the convention committee), other than 
contributions to the committee for the purpose of defraying convention 
expenses, where such funds were used to defray convention expenses.
    (4) ``Convention expenses'' include all expenses incurred by or on 
behalf of a political party's national committee or convention committee 
with respect to and for the purpose of conducting a presidential 
nominating convention or convention-related activities. Such expenses 
include, but are not limited to:
    (i) Expenses for preparing, maintaining, and dismantling the 
physical site of the convention, including rental of the hall, platforms 
and seating, decorations, telephones, security, convention hall 
utilities, and other related costs;
    (ii) Salaries and expenses of convention committee employees, 
volunteers and similar personnel, whose responsibilities involve 
planning, management or otherwise conducting the convention;
    (iii) Salary or portion of the salary of any national committee 
employee for any period of time during which, as a major responsibility, 
that employee performs services related to the convention;
    (iv) Expenses of national committee employees, volunteers or other 
similar personnel if those expenses were incurred in the performance of 
services for the convention in addition to the services normally 
rendered to the national committee by such personnel;
    (v) Expenses for conducting meetings of or related to committees 
dealing with the conduct and operation of the convention, such as rules, 
credentials, platform, site, contests, call, arrangements and permanent 
organization committees, including printing materials and rental costs 
for meeting space.
    (vi) Expenses incurred in securing a convention city and facility;
    (vii) Expenses incurred in providing a transportation system in the 
convention city for use by delegates and other

[[Page 230]]

persons attending or otherwise connected with the convention;
    (viii) Expenses for entertainment activities which are part of the 
official convention activity sponsored by the national committee, 
including but not limited to dinners, concerts, and receptions; except 
that expenses for the following activities are excluded:
    (A) Entertainment activities sponsored by or on behalf of candidates 
for nomination to the office of President or Vice President, or State 
delegations;
    (B) Entertainment activities sponsored by the national committee if 
the purpose of the activity is primarily for national committee 
business, such as fund-raising events, or selection of new national 
committee officers;
    (C) Entertainment activities sponsored by persons other than the 
national committee; and
    (D) Entertainment activities prohibited by law;
    (ix) Expenses for printing convention programs, a journal of 
proceedings, agendas, tickets, badges, passes, and other similar 
publications;
    (x) Administrative and office expenses for conducting the 
convention, including stationery, office supplies, office machines, and 
telephone charges; but excluded from these expenses are the cost of any 
services supplied by the national committee at its headquarters or 
principal office if such services are incidental to the convention and 
not utilized primarily for the convention;
    (xi) Payment of the principal and interest, at a commercially 
reasonable rate, on loans the proceeds of which were used to defray 
convention expenses;
    (xii) Expenses for gifts or monetary bonuses for national committee 
or convention committee employees, volunteers and convention officials 
in recognition for convention-related activities or services, provided 
that the gifts and bonuses do not exceed $150 total per individual, and 
the total for all gifts and bonuses does not exceed $20,000; and
    (xiii) Expenses for producing biographical films, or similar 
materials, for use at the convention, about candidates for nomination or 
election to the office of President or Vice President, but any other 
political committee(s) that use part or all of the biographical films or 
materials shall pay the convention committee for the reasonably 
allocated cost of the biographical films or materials used.
    (5) Any investment of public funds or any other use of public funds 
to generate income is permissible only if the income so generated is 
used to defray convention expenses. Such income, less any tax paid on 
it, shall be repaid to the United States Treasury as provided under 11 
CFR 9008.12(b)(6).
    (b) Prohibited uses. (1) No part of any payment made under 11 CFR 
9008.6 shall be used to defray the expenses of any candidate, delegate, 
or alternate delegate who is participating in any presidential 
nominating convention except that the expenses of a person participating 
in the convention as official personnel of the national party may be 
defrayed with public funds even though that person is simultaneously 
participating as a delegate or candidate to the convention. This part 
shall not prohibit candidates, delegates or alternate delegates who are 
participating in a presidential nominating convention from attending 
official party convention activities including but not limited to 
dinners, concerts and receptions, where such activities are paid for 
with public funds.
    (2) Public funds shall not be used to defray any expense the 
incurring or payment of which violates any law of the United States or 
any law of the State in which such expense is incurred or paid, or any 
regulation prescribed under federal or State laws.
    (3) Public funds shall not be used to pay civil or criminal 
penalties required or agreed to be paid pursuant to 2 U.S.C. 437g. Any 
amounts received or expended by the national committee or convention 
committee of a political party to pay such penalties shall not be 
considered contributions or expenditures, except that such amounts shall 
be reported in accordance with 11 CFR part 104 and shall be subject to 
the prohibitions of 11 CFR 110.4 and parts 114 and 115.
    (c) Lost, misplaced, or stolen items. The cost of lost, misplaced, 
or stolen items may not be defrayed with public funds under certain 
circumstances. Factors

[[Page 231]]

considered by the Commission in making this determination shall include, 
but not be limited to, whether the committee demonstrates that it made 
conscientious efforts to safeguard the missing equipment; whether the 
committee sought or obtained insurance on the items; whether the 
committee filed a police report; the type of equipment involved; and the 
number and value of items that were lost.

[59 FR 33616, June 29, 1994 as amended at 64 FR 49363, Sept. 13, 1999]



Sec. 9008.8  Limitation of expenditures.

    (a) National party limitations. (1) Major parties. Except as 
provided by paragraph (a)(3) of this section, the national committee of 
a major party may not incur convention expenses with respect to a 
Presidential nominating convention which, in the aggregate, exceed the 
amount to which such committee is entitled under 11 CFR 9008.4 and 
9008.5.
    (2) Minor parties. Except as provided by paragraph (a)(3) of this 
section, the national committee of a minor party may not incur 
convention expenses with respect to a Presidential nominating convention 
which, in the aggregate, exceed the amount to which the national 
committee of a major party is entitled under 11 CFR 9008.4 and 9008.5.
    (3) Authorization to exceed limitation. The Commission may authorize 
the national committee of a major party or minor party to make 
expenditures for convention expenses, which expenditures exceed the 
limitation established by paragraph (a) (1) or (2) of this section. This 
authorization shall be based upon a determination by the Commission 
that, due to extraordinary and unforeseen circumstances, the 
expenditures are necessary to assure the effective operation of the 
Presidential nominating convention by the committee. Examples of 
``extraordinary and unforeseen circumstances'' include, but are not 
limited to, a natural disaster or a catastrophic occurrence at the 
convention site. In no case, however, will such authorization entitle a 
national committee to receive public funds greater than the entitlement 
specified under 11 CFR 9008.4 and 9008.5. All private contributions 
received to defray expenditures under this paragraph shall be subject to 
all reporting requirements, limitations (except for limitations imposed 
by paragraphs (a) (1) and (2) of this section) and prohibitions of the 
Federal Election Campaign Act (2 U.S.C. 431 et seq.).
    (b) Payments not subject to limit. (1) Host committee expenditures. 
Expenditures made by the host committee shall not be considered 
expenditures by the national committee and shall not count against the 
expenditure limitations of this section provided the funds are spent in 
accordance with 11 CFR 9008.52.
    (2) Expenditures by government agencies and municipal corporations. 
Expenditures made by government agencies and municipal corporations 
shall not be considered expenditures by the national committee and shall 
not count against the expenditure limitations of this section if the 
funds are spent in accordance with the requirements of 11 CFR 9008.53.
    (3) Expenditures to participate in or attend convention. 
Expenditures made by presidential candidates from campaign accounts, by 
delegates, or by any other individual from his or her personal funds for 
the purpose of attending or participating in the convention or 
convention related activities, including, but not limited to the costs 
of transportation, lodging and meals, or by State or local committees of 
a political party on behalf of such delegates or individuals shall not 
be considered expenditures made by or on behalf of the national party, 
and shall therefore not be subject to the overall expenditure 
limitations of this section.
    (4) Legal and accounting services. (i) The payment of compensation 
to an individual by his or her regular employer for legal and accounting 
services rendered to or on behalf of the national committee shall not be 
considered an expenditure and shall not count against the expenditure 
limitations of this section.
    (ii) The payment by the national committee of compensation to any 
individual for legal and accounting services rendered to or on behalf of 
the national committee in connection with the presidential nominating 
convention or convention-related activities shall not be considered an 
expenditure

[[Page 232]]

and shall not count against the expenditure limitations of this section 
provided that:
    (A) The legal and accounting services relate solely to compliance 
with the Federal Election Campaign Act (2 U.S.C. 431, et seq.) and the 
Presidential Election Campaign Fund Act (26 U.S.C. Chapter 95); and
    (B) The contributions raised to pay for the legal and accounting 
services comply with the limitations and prohibitions of 11 CFR parts 
110, 114 and 115. These contributions, when aggregated with other 
contributions from the same contributor to the political committees 
established and maintained by the national political party, shall not 
exceed $20,000 per person, and $15,000 per multicandidate political 
committee in any calendar year.
    (iii) The convention committee shall report contributions received 
to pay for legal and accounting services on a separate Schedule A, and 
shall report payments for legal and accounting services on a separate 
Schedule B, attached to its reports.
    (5) Computerized information. Payments to defray the costs of 
producing, delivering and explaining the computerized information and 
materials provided pursuant to 11 CFR 9008.10(h), and explaining the 
operation of the computer system's software, shall not be considered 
expenditures and shall not count against the expenditure limitations of 
this section, provided that the contributions raised to pay these 
expenses comply with the limitations and prohibitions of 11 CFR parts 
110, 114 and 115.



Sec. 9008.9  Receipt of goods and services from commercial vendors.

    Commercial vendors may sell, lease, rent or provide their goods or 
services to the national committee with respect to a presidential 
nominating convention at reduced or discounted rates, or at no charge, 
provided that the requirements of either paragraph (a), paragraph (b), 
or paragraph (c) of this section are met. For purposes of this section, 
commercial vendor shall have the same meaning as provided in 11 CFR 
116.1(c).
    (a) Standard reductions or discounts. A commercial vendor may 
provide reductions or discounts in the ordinary course of business. A 
reduction or discount shall be considered in the ordinary course of 
business if the commercial vendor has an established practice of 
providing the same reductions or discounts for the same amount of its 
goods or services to non-political clients, or if the reduction or 
discount is consistent with established practice in the commercial 
vendor's trade or industry. Examples of reductions or discounts made in 
the ordinary course of business include standard volume discounts and 
reduced rates for corporate, governmental or preferred customers. 
Reductions or discounts provided under paragraph (a) of this section 
need not be reported.
    (b) Items provided for promotional consideration.
    (1) A commercial vendor may provide goods or services in exchange 
for promotional consideration provided that doing so is in the ordinary 
course of business.
    (2) The provision of goods or services shall be considered in the 
ordinary course of business under this paragraph:
    (i) If the commercial vendor has an established practice of 
providing goods or services on a similar scale and on similar terms to 
non-political clients, or
    (ii) If the terms and conditions under which the goods or services 
are provided are consistent with established practice in the commercial 
vendor's trade or industry in similar circumstances.
    (3) In all cases, the value of the goods or services provided shall 
not exceed the commercial benefit reasonably expected to be derived from 
the unique promotional opportunity presented by the national nominating 
convention.
    (4) The convention committee shall maintain documentation showing: 
the goods or services provided; the date(s) on which the goods or 
services were provided, the terms and conditions of the arrangement; and 
what promotional consideration was provided. In addition, the convention 
committee shall disclose in its report covering the period the goods or 
services are received, in a memo entry, a description of the goods or 
services provided for

[[Page 233]]

promotional consideration, the name and address of the commercial 
vendor, and the dates on which the goods or services were provided 
(e.g., ``Generic Motor Co., Detroit, Michigan--ten automobiles for use 
7/15-7/20, received on 7/14'', or ``Workers Inc., New York, New York--
five temporary secretarial assistants for use 8/1-8/30, received on 8/
1'').
    (c) Items of de minimis value. Commercial vendors (including banks) 
may sell at nominal cost, or provide at no charge, items of de minimis 
value, such as samples, discount coupons, maps, pens, pencils, or other 
items included in tote bags for those attending the convention. The 
items of de minimis value may be distributed by or with the help of 
persons employed by the commercial vendor, or employed by or 
volunteering for the national party or a host committee. The value of 
the items of de minimis value provided under this paragraph need not be 
reported.
    (d) Expenditure Limits. The value of goods or services provided 
pursuant to this section will not count toward the national party's 
expenditure limitation under 11 CFR 9008.8(a).



Sec. 9008.10  Documentation of disbursements; net outstanding convention expenses.

    The convention committee must include as part of the evidence of 
convention expenses the following documentation:
    (a) For disbursements in excess of $200 to a payee, either:
    (1) A receipted bill from the payee that states the purpose of the 
disbursement; or
    (2) If such a receipted bill is not available, the following 
documents;
    (i) A canceled check negotiated by the payee; plus
    (ii) One of the following documents generated by the payee--a bill, 
invoice, voucher or contemporaneous memorandum that states the purpose 
of the disbursement;
    (iii) Where the documents specified at paragraph (a)(2)(ii) of this 
section are not available, a voucher or contemporaneous memorandum from 
the committee that states the purpose of the disbursement;
    (3) If neither a receipted bill nor the supporting documentation 
specified in paragraph (a)(2) (ii) or (iii) of this section is 
available, a canceled check negotiated by the payee that states the 
purpose of the disbursement.
    (4) Where the supporting documentation required above is not 
available, the committee may present a canceled check and collateral 
evidence to document the convention expense. Such collateral evidence 
may include but is not limited to:
    (i) Evidence demonstrating that the disbursement is part of an 
identifiable program or project which is otherwise sufficiently 
documented, such as a disbursement which is one of a number of 
documented disbursements relating to the operation of a committee 
office;
    (ii) Evidence that the disbursement is covered by a preestablished 
written committee policy, such as a daily travel expense policy.
    (b) For all other disbursements:
    (1) If from the petty cash fund, a record that states the full name 
and mailing address of the payee and the amount, date and purpose of the 
disbursement; or
    (2) A canceled check which has been negotiated by the payee and 
states the identification of the payee, and the amount and date of the 
disbursement.
    (c) For purposes of this section, payee means the person who 
provides the goods or services to the committee in return for the 
disbursement, except that an individual will be considered a payee under 
this section if he or she receives $2,000 or less advanced for travel 
and/or subsistence and if he or she is the recipient of the goods or 
services purchased.
    (d) For purposes of this section, the term purpose means the full 
name and mailing address of the payee, the date and amount of the 
disbursement, and a brief description of the goods or services 
purchased.
    (e) Upon the request of the Commission the convention committee 
shall supply an explanation of the connection between the disbursement 
and the convention.
    (f) The committee shall retain records with respect to each 
disbursement and receipt, including bank

[[Page 234]]

records, vouchers, worksheets, receipts, bills and accounts, journals, 
ledgers, fundraising solicitation material, accounting systems 
documentation, and any related material documenting campaign receipts 
and disbursements, for a period of three years pursuant to 11 CFR 
102.9(c), and shall present these records to the Commission on request.
    (g) Net outstanding convention expenses. A convention committee that 
is eligible to receive payments under 11 CFR 9008.3 shall file, no later 
than sixty days after the last day of the convention, a statement of 
that committee's net outstanding convention expenses. The convention 
committee shall file a revised statement of net outstanding convention 
expenses which shall reflect the financial position of the convention 
committee as of the end of the ninth month following the last day of the 
convention. The revised statement shall be filed no later than 30 
calendar days after the end of the ninth month following the last day of 
the convention, and shall be accompanied by the interim repayment, if 
required under 11 CFR 9008.12(b)(5)(ii). The committee's net outstanding 
convention expenses under this section equal the difference between 
paragraphs (g) (1) and (2) of this section:
    (1) The total of:
    (i) All outstanding obligations for convention expenses as of 45 
days after the last day of the convention; plus
    (ii) An estimate of the amount of convention expenses that will be 
incurred after the 45th day and before the end of the ninth month 
following the last day of the convention; plus
    (iii) An estimate of necessary winding down costs; less
    (2) The total of:
    (i) Cash on hand as of 45 days after the last day of the convention, 
including: all receipts dated on or before that date; currency; balances 
on deposit in banks, savings and loan institutions, and other depository 
institutions; traveler's checks; certificates of deposit; treasury 
bills; and any other committee investments valued at fair market value;
    (ii) The fair market value of capital assets and other assets on 
hand; and
    (iii) Amounts owed to the committee in the form of credits, refunds 
of deposits, returns, receivables, or rebates of convention expenses; or 
a commercially reasonable amount based on the collectibility of those 
credits, returns, receivables or rebates.
    (3) The amount submitted as the total of outstanding convention 
obligations under paragraph (g)(1) of this section shall not include any 
accounts payable for non-convention expenses nor any amounts determined 
or anticipated to be required as a repayment under 11 CFR 9008.12 or any 
amounts paid to secure a surety bond under 11 CFR 9008.14(c).
    (4) Capital assets. For purposes of this section, the term capital 
asset means any property used in the operation of the convention whose 
purchase price exceeded $2000 when acquired by the committee. Property 
that must be valued as capital assets under this section includes, but 
is not limited to, office equipment, furniture, vehicles and fixtures 
acquired for use in the operation of the convention, but does not 
include property defined as ``other assets'' under 11 CFR 9008.10(g)(5). 
A list of all capital assets shall be maintained by the committee, which 
shall include a brief description of each capital asset, the purchase 
price, the date it was acquired, the method of disposition and the 
amount received in disposition. The fair market value of capital assets 
may be considered to be the total original cost of such items when 
acquired less 40%, to account for depreciation. If the committee wishes 
to claim a higher depreciation percentage for an item, it must list that 
capital asset on the statement separately and demonstrate, through 
documentation, the fair market value of each such asset.
    (5) Other assets. The term other assets means any property acquired 
by the committee for use in raising funds or as collateral for loans. 
``Other assets'' must be included on the committee's statement of net 
outstanding convention expenses if the aggregate value of such assets 
exceeds $5000. The value of ``other assets'' shall be determined by the 
fair market value of each item as of 45 days after the last day of the 
convention, unless the item is acquired after this date, in which case 
the item

[[Page 235]]

shall be valued on the date it is acquired. A list of other assets shall 
be maintained by the committee, which shall include a brief description 
of each such asset, the fair market value of each asset, the method of 
disposition and the amount received in disposition.
    (6) Collectibility of accounts receivable. If the committee 
determines that an account receivable of $500 or more, including any 
credit, refund, return or rebate, is not collectible in whole or in 
part, the committee shall demonstrate through documentation that the 
determination was commercially reasonable. The documentation shall 
include records showing the original amount of the account receivable, 
copies of correspondence and memoranda of communications with the debtor 
showing attempts to collect the amount due, and an explanation of how 
the lesser amount or full write-off was determined.
    (7) Winding down costs. The term winding down costs means:
    (i) Costs associated with the termination of the convention such as 
complying with the post-convention requirements of the Act and other 
necessary administrative costs associated with winding down the 
convention, including office space rental, staff salaries and office 
supplies; and
    (ii) Costs incurred by the convention committee prior to 45 days 
after the last day of the convention for which written arrangements or 
commitment was made on or before that date.
    (8) Review of convention committee statement. The Commission will 
review the statement filed by each convention committee under this 
section. The Commission may request further information with respect to 
statements filed pursuant to 11 CFR 9008.10 during the audit of that 
committee under 11 CFR 9008.11.
    (h) Production of computer information--(1) Categories of 
computerized information to be provided. If the convention committee 
maintains or uses computerized information containing any of the 
categories of data listed in paragraphs (h)(1)(i) through (h)(1)(iv) of 
this section, the committee shall provide computerized magnetic media, 
such as magnetic tapes or magnetic diskettes, containing the 
computerized information at the times specified in paragraph (h)(2) of 
this section:
    (i) Information required by law to be maintained regarding the 
committee's receipts or disbursements;
    (ii) Records used to reconcile bank statements;
    (iii) Records relating to the acquisition, use and disposition of 
capital assets; and
    (iv) Any other information that may be used during the Commission's 
audit to review the committee's receipts, disbursements, loans, debts, 
obligations, or bank reconciliations.
    (2) Time for Production. If the committee maintains or uses 
computerized information containing any of the data listed in paragraph 
(h)(1) of this section, the Commission generally will request such 
information prior to commencement of audit fieldwork. Such request will 
be made in writing. The committee shall produce the computerized 
information no later than 15 calendar days after service of such 
request. During or after audit fieldwork, the Commission may request 
additional or updated computerized information which expands the 
coverage dates of computerized information previously provided. During 
or after audit fieldwork, the Commission may also request additional 
computerized information which was created by or becomes available to 
the committee that is of assistance in the Commission's audit. The 
committee shall produce the additional or updated computerized 
information no later than 15 calendar days after service of the 
Commission's request.
    (3) Organization of computerized information and technical 
specifications. The computerized magnetic media shall be prepared and 
delivered at the committee's expense and shall conform to the technical 
specifications, including file requirements, described in the Federal 
Election Commission's Computerized Magnetic Media Requirements for Title 
26 Candidates/Committees Receiving Federal Funding. The data contained 
in the computerized magnetic media provided to the Commission shall be 
organized in the order specified by the Computerized Magnetic Media 
Requirements.

[[Page 236]]

    (4) Additional materials and assistance. Upon request, the committee 
shall produce documentation explaining the computer system's software 
capabilities, such as user guides, technical manuals, formats, layouts 
and other materials for processing and analyzing the information 
request. Upon request, the committee shall also make available such 
personnel as are necessary to explain the operation of the computer 
system's software and the computerized information prepared or 
maintained by the committee.



Sec. 9008.11  Examinations and audits.

    The Commission shall conduct an examination and audit of the 
convention committee no later than December 31 of the calendar year of 
the convention and may at any time conduct other examinations and audits 
as it deems necessary. The Commission will follow the same procedures 
during the audit, and will afford the committee the same right to 
respond, as are provided for audits of publicly funded candidates under 
11 CFR 9007.1 and 9038.1.



Sec. 9008.12  Repayments.

    (a) General. (1) A national committee that has received payments 
from the Fund under 11 CFR part 9008 shall pay the United States 
Treasury any amounts which the Commission determines to be repayable 
under this section. In making repayment determinations under this 
section, the Commission may utilize information obtained from audits and 
examinations conducted pursuant to 11 CFR 9008.11 or otherwise obtained 
by the Commission in carrying out its responsibilities under this 
subchapter.
    (2) The Commission will notify the committee of any repayment 
determinations made under this section as soon as possible, but not 
later than 3 years after the last day of the Presidential nominating 
convention. The Commission's issuance of an audit report to the 
committee will constitute notification for purposes of the three year 
period.
    (3) Once the committee receives notice of the Commission's final 
repayment determination under this section, the committee should give 
preference to the repayment over all other outstanding obligations of 
the committee, except for any federal taxes owed by the committee.
    (b) Bases for repayment. The Commission may determine that the 
national committee of a political party that has received payments from 
the Fund must repay the United States Treasury under any of the 
circumstances described below.
    (1) Excess payments. If the Commission determines that any portion 
of the payments to the national committee or convention committee under 
11 CFR 9008.6(b) was in excess of the aggregate payments to which the 
national committee was entitled under 11 CFR 9008.4 and 9008.5, it shall 
so notify the national committee, and the national committee shall pay 
to the Secretary an amount equal to such portion.
    (2) Excessive expenditures. If the Commission determines that the 
national committee or convention committee incurred convention expenses 
in excess of the limitations under 11 CFR 9008.8(a), it shall notify the 
national committee of the amount of such excessive expenditures, and the 
national committee shall pay to the Secretary an amount equal to the 
amount specified.
    (3) Excessive contributions. If the Commission determines that the 
national committee accepted contributions to defray convention expenses 
which, when added to the amount of payments received, exceeds the 
expenditure limitation of such party, it shall notify the national 
committee of the amount of the contributions so accepted, and the 
national committee shall pay to the Secretary an amount equal to the 
amount specified.
    (4) Improper usage or documentation. If the Commission determines 
that any amount of any payment to the national committee or convention 
committee under 11 CFR 9008.6(b) was used for any purposes other than 
the purposes authorized at 11 CFR 9008.7 or was not documented in 
accordance with 11 CFR 9008.10, it shall notify the national committee 
of the amount improperly used or documented and the national committee 
shall pay to the Secretary an amount equal to the amount specified.

[[Page 237]]

    (5) Unspent funds. (i) If any portion of the payment under 11 CFR 
9008.4 remains unspent after all convention expenses have been paid, 
that portion shall be returned to the Secretary of the Treasury.
    (ii) The national committee or convention committee shall make an 
interim repayment of unspent funds based on the financial position of 
the committee as of the end of the ninth month following the last day of 
the convention, allowing for a reasonable amount as determined by the 
Commission to be withheld for unanticipated contingencies. The interim 
repayment shall be made no later than 30 calendar days after the end of 
the ninth month following the last day of the convention. If, after 
written request by the national committee or convention committee, the 
Commission determines, upon review of evidence presented by either 
committee, that amounts previously refunded are needed to defray 
convention expenses, the Commission shall certify such amount for 
payment.
    (iii) All unspent funds shall be repaid to the U.S. Treasury no 
later than 24 months after the last day of the convention, unless the 
national committee has been granted an extension of time. The Commission 
may grant any extension of time it deems appropriate upon request of the 
national committee.
    (6) Income on investments of payments from the Fund. If the 
Commission determines that the national committee or the convention 
committee received any income as a result of investment or other use of 
payments from the Fund pursuant to 11 CFR 9008.7(a)(5), it shall so 
notify the committee and the committee shall pay to the United States 
Treasury an amount equal to the amount determined to be income, less any 
Federal, State or local taxes on such income.
    (7) The Commission may seek repayment, or may initiate an 
enforcement action, if the convention committee knowingly helps, assists 
or participates in the making of a convention expenditure by the host 
committee, government agency or municipal corporation which is not in 
accordance with 11 CFR 9008.52 or 9008.53, or the acceptance of a 
contribution by the host committee or government agency or municipal 
corporation from an impermissible source, such as a nonlocal business.
    (c) Repayment determination procedures. The Commission will follow 
the same repayment determination procedures, and the committee has the 
same rights and obligations as are provided for repayment determinations 
involving publicly funded candidates under 11 CFR 9007.2 (c) through 
(h).

[59 FR 33616, June 29, 1994, as amended at 60 FR 31880, June 16, 1995]



Sec. 9008.13  Additional audits.

    In accordance with 11 CFR 104.16(c), the Commission, pursuant to 11 
CFR 111.10, may upon affirmative vote of four members conduct an audit 
and field investigation of any committee in any case in which the 
Commission finds reason to believe that a violation of a statute or 
regulation over which the Commission has jurisdiction has occurred or is 
about to occur.



Sec. 9008.14  Petitions for rehearing; stays of repayment determinations.

    Petitions for rehearing following the Commission's repayment 
determination and requests for stays of repayment determinations will be 
governed by the procedures set forth at 11 CFR 9007.5 and 9038.5. The 
Commission will afford convention committees the same rights as are 
provided to publicly funded candidates under 11 CFR 9007.5 and 9038.5.

[64 FR 49363, Sept. 13, 1999]



Sec. 9008.15  Extensions of time.

    (a) It is the policy of the Commission that extensions of time under 
11 CFR part 9008 will not be routinely granted.
    (b) Whenever a committee has a right or is required to take action 
within a period of time prescribed by 11 CFR part 9008 or by notice 
given thereunder, the committee may apply in writing to the Commission 
for an extension of time in which to exercise such right or take such 
action. The committee shall demonstrate in the application for extension 
that good cause exists for its request.
    (c) An application for extension of time shall be made at least 7 
calendar days prior to the expiration of the time

[[Page 238]]

period for which the extension is sought. The Commission may, upon a 
showing of good cause, grant an extension of time to a committee that 
has applied for such extension in a timely manner. The length of time of 
any extension granted hereunder shall be decided by the Commission and 
may be less than the amount of time sought by the committee in its 
application.
    (d) If a committee fails to seek an extension of time, exercise a 
right or take a required action prior to the expiration of a time period 
prescribed by 11 CFR part 9008, the Commission may, on the committee's 
showing of excusable neglect:
    (1) Permit such committee to exercise its right(s), or take such 
required action(s) after the expiration of the prescribed time period; 
and
    (2) Take into consideration any information obtained in connection 
with the exercise of any such right or taking of any such action before 
making decisions or determinations under 11 CFR part 9008.



Sec. 9008.16  Stale-dated committee checks.

    If the committee has checks outstanding that have not been cashed, 
the committee shall notify the Commission. The committee shall inform 
the Commission of its efforts to locate the payees, if such efforts have 
been necessary, and its efforts to encourage the payees to cash the 
outstanding checks. The committee shall also submit a check for the 
total amount of such outstanding checks, payable to the United States 
Treasury.



 Subpart B--Host Committees Representing a Convention City; Convention 
     Expenditures by Government Agencies and Municipal Corporations



Sec. 9008.50  Scope.

    Subpart B governs registration and reporting by host committees 
representing convention cities and by government agencies and 
municipalities. Unsuccessful efforts to attract a convention need not be 
reported by any city, committee or other organization. Subpart B also 
describes permissible sources of funds and other permissible donations 
to host committees, government agencies and municipal corporations. In 
addition, subpart B describes permissible expenditures by government 
agencies, municipal corporations and host committees to defray 
convention expenses and to promote the convention city and its commerce.



Sec. 9008.51  Registration and reports.

    (a) Registration by host committees. (1) Each committee, including a 
host committee, other organization or group of persons which represents 
a State, municipality, local government agency or other political 
subdivision in dealing with officials of a national political party with 
respect to matters involving a presidential nominating convention shall 
register with the Commission on the Convention Registration Form within 
10 days of the date on which such party chooses the convention city. The 
following information shall be required of the registrant: the name and 
address; the name and address of its officers; and a list of the 
activities which the registering entity plans to undertake in connection 
with the convention.
    (2) Any such committee, organization or group which is unsuccessful 
in its efforts to attract the convention to a city need not register 
under this section.
    (b) Post-convention and quarterly reports by host committees; 
content and time of filing. (1) Each committee, organization or group 
required to register under this section shall file a post convention 
report with the Commission on FEC Form 4. The report shall be filed on 
the earlier of: 60 days following the last day the convention is 
officially in session; or 20 days prior to the presidential general 
election. This report shall disclose all receipts and disbursements, 
including in-kind contributions, made with respect to a presidential 
nominating convention.
    (2) If such committee, organization or group has receipts or makes 
disbursements after the completion date of the post convention report, 
it shall begin to file quarterly reports no later than 15 days after the 
end of the following calendar quarter. This report

[[Page 239]]

shall disclose all transactions completed as of the close of that 
calendar quarter. Quarterly reports shall be filed thereafter until the 
committee, organization or group ceases all activity which must be 
reported under this section.
    (3) Such committee, organization or group shall file a final report 
with the Commission not later than 10 days after it ceases activity 
which must be reported under this section, unless such status is 
reflected in either the post convention report or a quarterly report.
    (c) Registration and post-convention statements by municipalities 
and local government agencies. Each organization or group of persons 
which represents a State, municipality, local government agency or other 
political subdivision in dealing with officials of a national political 
party with respect to matters involving a presidential nominating 
convention shall file, by letter, a statement with the Commission 
reporting the total amount spent to provide facilities and services for 
the convention under 11 CFR 9008.53(c), a list of the categories of 
facilities and services the municipality or government agency provided 
for the convention, the total amount spent for each category of 
facilities and services provided, the total amount defrayed from general 
revenues, and the total amount of all private donations received to 
defray these expenses. This statement shall be filed on the earlier of: 
60 days following the last day the convention is officially in session; 
or 20 days prior to the presidential general election. Categories of 
facilities and services may include construction, security, 
communications, transportation, utilities, clean up, meeting rooms and 
accommodations.



Sec. 9008.52  Receipts and disbursements of host committees.

    (a) Definition of host committee. A host committee includes any 
local organization, such as a local civic association, business league, 
chamber of commerce, real estate board, board of trade, or convention 
bureau: Which is not organized for profit; whose net earnings do not 
inure to the benefit of any private shareholder or individual; and whose 
principal objective is the encouragement of commerce in the convention 
city, as well as the projection of a favorable image of the city to 
convention attendees. A host committee must register in accordance with 
11 CFR 9008.51.
    (b) Receipt of goods or services from commercial vendors. Host 
committees may accept goods or services from commercial vendors under 
the same terms and conditions (including reporting requirements) set 
forth at 11 CFR 9008.9 for convention committees.
    (c) Receipt of donations from local businesses and organizations. 
(1) Local businesses (including banks), local labor organizations, and 
other local organizations or individuals who maintain a local residence 
or who work for a local business, local labor organization, or local 
organization may donate funds or make in-kind donations to a host 
committee to be used for the following purposes:
    (i) To defray those expenses incurred for the purpose of promoting 
the suitability of the city as a convention site;
    (ii) To defray those expenses incurred for welcoming the convention 
attendees to the city, such as expenses for information booths, 
receptions, and tours;
    (iii) To defray those expenses incurred in facilitating commerce, 
such as providing the convention and attendees with shopping and 
entertainment guides and distributing the samples and promotional 
material specified in 11 CFR 9008.9(c);
    (iv) To defray the administrative expenses incurred by the host 
committee, such as salaries, rent, travel, and liability insurance;
    (v) To provide the national committee use of an auditorium or 
convention center and to provide construction and convention related 
services for that location such as: construction of podiums; press 
tables; false floors, camera platforms; additional seating; lighting, 
electrical, air conditioning and loudspeaker systems; offices; office 
equipment; and decorations;
    (vi) To defray the costs of various local transportation services, 
including the provision of buses and automobiles;
    (vii) To defray the costs of law enforcement services necessary to 
assure orderly conventions;

[[Page 240]]

    (viii) To defray the cost of using convention bureau personnel to 
provide central housing and reservation services;
    (ix) To provide hotel rooms at no charge or a reduced rate on the 
basis of the number of rooms actually booked for the convention;
    (x) To provide accommodations and hospitality for committees of the 
parties responsible for choosing the sites of the conventions; and
    (xi) To provide other similar convention-related facilities and 
services.
    (2) For purposes of this section, any business (including a branch 
of a national or regional chain, a franchise, or a licensed dealer) or 
labor organization or other organization with offices or facilities 
located within the Metropolitan Area (MA) of the convention city shall 
be considered local. There shall be a rebuttable presumption that any 
such entity located outside the MA is not local. This presumption may be 
rebutted by a showing that the volume of business or activity in an area 
lying outside the MA would be directly affected by the presence of the 
convention.

[59 FR 33616, June 29, 1994, as amended at 64 FR 49363, Sept. 13, 1999]



Sec. 9008.53  Receipts and disbursements of government agencies and municipal corporations.

    (a) Receipt of goods and services provided by commercial vendors. 
Government agencies and municipal corporations may accept goods or 
services from commercial vendors for convention uses under the same 
terms and conditions (except reporting requirements) set forth at 11 CFR 
9008.9 for convention committees.
    (b) Receipt of donations to a separate fund or account. (1) Local 
businesses (including banks), local labor organizations, and other local 
organizations or individuals who maintain a local residence or who work 
for a local business, local labor organization, or local organization 
may donate funds or make in-kind donations to a separate fund or account 
of a government agency or municipality to pay for expenses listed in 11 
CFR 9008.52(c), provided that:
    (i) The fund or account is not restricted to use in connection with 
any particular convention; and
    (ii) Donations to the fund or account are unrestricted and are not 
solicited or designated for use in connection with any particular 
convention, event or activity.
    (2) For purposes of this section, any business (including a branch 
of a national or regional chain, a franchise, or a licensed dealer) or 
labor organization or other organization with offices or facilities 
located within the Metropolitan Area (MA) of the convention city shall 
be considered local. There shall be a rebuttable presumption that any 
such entity located outside the MA is not local. This presumption may be 
rebutted by a showing that the volume of business of activity in an area 
lying outside the MA would be directly affected by the presence of the 
convention.

[59 FR 33616, June 29, 1994, as amended at 64 FR 49363, Sept. 13, 1999]



Sec. 9008.54  Examinations and audits.

    The Commission shall conduct an examination and audit of each host 
committee registered under 11 CFR 9008.51. The Commission will follow 
the same procedures during the audit, and will afford the committee the 
same right to respond, as are provided for audits of publicly funded 
candidates under 11 CFR 9007.1 and 9038.1, except that the Commission 
will not make any repayment calculations under this section.

                       PARTS 9009-9011 [RESERVED]



PART 9012--UNAUTHORIZED EXPENDITURES AND CONTRIBUTIONS--Table of Contents




Sec.
9012.1  Excessive expenses.
9012.2  Unauthorized acceptance of contributions.
9012.3  Unlawful use of payments received from the Fund.
9012.4  Unlawful misrepresentations and falsification of statements, 
          records or other evidence to the Commission; refusal to 
          furnish books and records.
9012.5  Kickbacks and illegal payments.

    Authority: 26 U.S.C. 9012.

[[Page 241]]


    Source: 56 FR 35928, July 29, 1991, unless otherwise noted.



Sec. 9012.1  Excessive expenses.

    (a) It shall be unlawful for an eligible candidate of a political 
party for President and Vice President in a Presidential election or the 
candidate's authorized committee(s) knowingly and willfully to incur 
qualified campaign expenses in excess of the aggregate payments to which 
the eligible candidates of a major party are entitled under 11 CFR part 
9004 with respect to such election.
    (b) It shall be unlawful for the national committee of a major or 
minor party knowingly and willfully to incur expenses with respect to a 
presidential nominating convention in excess of the expenditure 
limitation applicable with respect to such committee under 11 CFR part 
9008, unless the incurring of such expenses is authorized by the 
Commission under 11 CFR 9008.7(a)(3).



Sec. 9012.2  Unauthorized acceptance of contributions.

    (a) It shall be unlawful for an eligible candidate of a major party 
in a Presidential election or any of his or her authorized committees 
knowingly and willfully to accept any contribution to defray qualified 
campaign expenses, except to the extent necessary to make up any 
deficiency in payments received from the Fund due to the application of 
11 CFR 9005.2(b), or to defray expenses which would be qualified 
campaign expenses but for 11 CFR 9002.11(a)(3).
    (b) It shall be unlawful for an eligible candidate of a political 
party (other than a major party) in a Presidential election or any of 
his or her authorized committees knowingly and willfully to accept and 
expend or retain contributions to defray qualified campaign expenses in 
an amount which exceeds the qualified campaign expenses incurred in that 
election by that eligible candidate or his or her authorized 
committee(s).



Sec. 9012.3  Unlawful use of payments received from the Fund.

    (a) It shall be unlawful for any person who receives any payment 
under 11 CFR part 9005, or to whom any portion of any payment so 
received is transferred, knowingly and willfully to use, or authorize 
the use of, such payment or any portion thereof for any purpose other 
than--
    (1) To defray the qualified campaign expenses with respect to which 
such payment was made; or
    (2) To repay loans the proceeds of which were used, or otherwise to 
restore funds (other than contributions to defray qualified campaign 
expenses which were received and expended) which were used, to defray 
such qualified campaign expenses.
    (b) It shall be unlawful for the national committee of a major or 
minor party which receives any payment under 11 CFR part 9008 to use, or 
authorize the use of, such payment for any purpose other than a purpose 
authorized by 11 CFR 9008.6.



Sec. 9012.4  Unlawful misrepresentations and falsification of statements, records or other evidence to the Commission; refusal to furnish books and records.

    It shall be unlawful for any person knowingly and willfully--
    (a) To furnish any false, fictitious, or fraudulent evidence, books 
or information to the Commission under 11 CFR parts 9001-9008, or to 
include in any evidence, books or information so furnished any 
misrepresentation of a material fact, or to falsify or conceal any 
evidence, books or information relevant to a certification by the 
Commission or any examination and audit by the Commission under 11 CFR 
parts 9001 et seq.; or
    (b) To fail to furnish to the Commission any records, books or 
information requested by the Commission for purposes of 11 CFR parts 
9001 et seq.



Sec. 9012.5  Kickbacks and illegal payments.

    (a) It shall be unlawful for any person knowingly and willfully to 
give or accept any kickback or any illegal payment in connection with 
any qualified campaign expenses of any eligible candidate or his or her 
authorized committee(s).
    (b) It shall be unlawful for the national committee of a major or 
minor party knowingly and willfully to give or accept any kickback or 
any illegal

[[Page 242]]

payment in connection with any expense incurred by such committee with 
respect to a Presidential nominating convention.

[[Page 243]]





SUBCHAPTER F--PRESIDENTIAL ELECTION CAMPAIGN FUND: PRESIDENTIAL PRIMARY 
                              MATCHING FUND





PART 9031--SCOPE--Table of Contents




    Authority: 26 U.S.C. 9031 and 9039(b).



Sec. 9031.1  Scope.

    This subchapter governs entitlement to and use of funds certified 
from the Presidential Primary Matching Payment Account under 26 U.S.C. 
9031 et seq. The definitions, restrictions, liabilities and obligations 
imposed by this subchapter are in addition to those imposed by sections 
431-455 of title 2, United States Code, and regulations prescribed 
thereunder (11 CFR part 100 through 116). Unless expressly stated to the 
contrary, this subchapter does not alter the effect of any definitions, 
restrictions, obligations and liabilities imposed by sections 431-455 of 
title 2, United States Code, or regulations prescribed thereunder (11 
CFR parts 100 through 116).

[56 FR 35929, July 29, 1991]



PART 9032--DEFINITIONS--Table of Contents




Sec.
9032.1  Authorized committee.
9032.2  Candidate.
9032.3  Commission.
9032.4  Contribution.
9032.5  Matching payment account.
9032.6  Matching payment period.
9032.7  Primary election.
9032.8  Political committee.
9032.9  Qualified campaign expense.
9032.10  Secretary.
9032.11  State.

    Authority: 26 U.S.C. 9032 and 9039(b).

    Source: 56 FR 35929, July 29, 1991, unless otherwise noted.



Sec. 9032.1  Authorized committee.

    (a) Notwithstanding the definition at 11 CFR 100.5, authorized 
committee means with respect to candidates (as defined at 11 CFR 9032.2) 
seeking the nomination of a political party for the office of President, 
any political committee that is authorized by a candidate to solicit or 
receive contributions or to incur expenditures on behalf of the 
candidate. The term authorized committee includes the candidate's 
principal campaign committee designated in accordance with 11 CFR 
102.12, any political committee authorized in writing by the candidate 
in accordance with 11 CFR 102.13, and any political committee not 
disavowed by the candidate in writing pursuant to 11 CFR 100.3(a)(3).
    (b) Any withdrawal of an authorization shall be in writing and shall 
be addressed and filed in the same manner provided for at 11 CFR 102.12 
or 102.13.
    (c) For the purposes of this subchapter, references to the 
``candidate'' and his or her responsibilities under this subchapter 
shall also be deemed to refer to the candidate's authorized 
committee(s).
    (d) An expenditure by an authorized committee on behalf of the 
candidate who authorized the committee cannot qualify as an independent 
expenditure.
    (e) A delegate committee, as defined in 11 CFR 100.5(e)(5), is not 
an authorized committee of a candidate unless it also meets the 
requirements of 11 CFR 9032.1(a). Expenditures by delegate committees on 
behalf of a candidate may count against that candidate's expenditure 
limitation under the circumstances set forth in 11 CFR 110.14.



Sec. 9032.2  Candidate.

    Candidate means an individual who seeks nomination for election to 
the office of President of the United States. An individual is 
considered to seek nomination for election if he or she--
    (a) Takes the action necessary under the law of a State to qualify 
for a caucus, convention, primary election or run-off election;
    (b) Receives contributions or incurs qualified campaign expenses;
    (c) Gives consent to any other person to receive contributions or to 
incur qualified campaign expenses on his or her behalf; or
    (d) Receives written notification from the Commission that any other 
person is receiving contributions or

[[Page 244]]

making expenditures on the individual's behalf and fails to disavow that 
activity by letter to the Commission within 30 calendar days after 
receipt of notification.



Sec. 9032.3  Commission.

    Commission means the Federal Election Commission, 999 E Street NW., 
Washington, DC 20463.



Sec. 9032.4  Contribution.

    For purposes of this subchapter, contribution has the same meaning 
given the term under 2 U.S.C. 431(8)(A) and 11 CFR 100.7, except as 
provided at 11 CFR 9034.4(b)(4).



Sec. 9032.5  Matching payment account.

    Matching payment account means the Presidential Primary Matching 
Payment Account established by the Secretary of the Treasury under 26 
U.S.C. 9037(a).



Sec. 9032.6  Matching payment period.

    Matching payment period means the period beginning January 1 of the 
calendar year in which a Presidential general election is held and may 
not exceed one of the following dates:
    (a) For a candidate seeking the nomination of a party which 
nominates its Presidential candidate at a national convention, the date 
on which the party nominates its candidate.
    (b) For a candidate seeking the nomination of a party which does not 
make its nomination at a national convention, the earlier of--
    (1) The date the party nominates its Presidential candidate, or
    (2) The last day of the last national convention held by a major 
party in the calendar year.



Sec. 9032.7  Primary election.

    (a) Primary election means an election held by a State or a 
political party, including a run-off election, or a nominating 
convention or a caucus--
    (1) For the selection of delegates to a national nominating 
convention of a political party;
    (2) For the expression of a preference for the nomination of 
Presidential candidates;
    (3) For the purposes stated in both paragraphs (a) (1) and (2) of 
this section; or
    (4) To nominate a Presidential candidate.
    (b) If separate primary elections are held in a State by the State 
and a political party, the primary election for the purposes of this 
subchapter will be the election held by the political party.



Sec. 9032.8  Political committee.

    Political committee means any committee, club, association, 
organization or other group of persons (whether or not incorporated) 
which accepts contributions or incurs qualified campaign expenses for 
the purpose of influencing, or attempting to influence, the nomination 
of any individual for election to the office of President of the United 
States.



Sec. 9032.9  Qualified campaign expense.

    (a) Qualified campaign expense means a purchase, payment, 
distribution, loan, advance, deposit, or gift of money or anything of 
value--
    (1) Incurred by or on behalf of a candidate or his or her authorized 
committees from the date the individual becomes a candidate through the 
last day of the candidate's eligibility as determined under 11 CFR 
9033.5;
    (2) Made in connection with his or her campaign for nomination; and
    (3) Neither the incurrence nor payment of which constitutes a 
violation of any law of the United States or of any law of any State in 
which the expense is incurred or paid, or of any regulation prescribed 
under such law of the United States or of any State, except that any 
State law which has been preempted by the Federal Election Campaign Act 
of 1971, as amended, will not be considered a State law for purposes of 
this subchapter.
    (b) An expenditure is made on behalf of a candidate, including a 
Vice Presidential candidate, if it is made by--
    (1) An authorized committee or any other agent of the candidate for 
purposes of making an expenditure;
    (2) Any person authorized or requested by the candidate, an 
authorized committee of the candidate, or an agent of the candidate to 
make the expenditure; or

[[Page 245]]

    (3) A committee which has been requested by the candidate, by an 
authorized committee of the candidate, or by an agent of the candidate 
to make the expenditure, even though such committee is not authorized in 
writing.
    (c) Except as provided in 11 CFR 9034.4(e), expenditures incurred 
either before the beginning of the expenditure report period or after 
the last day of a candidate's eligibility will be considered qualified 
campaign expenses if they meet the provisions of 11 CFR 9034.4(a). 
Expenditures described under 11 CFR 9034.4(b) will not be considered 
qualified campaign expenses.

[56 FR 35929, July 29, 1991, as amended at 60 FR 31880, June 16, 1995]



Sec. 9032.10  Secretary.

    For purposes of this subchapter, Secretary means the Secretary of 
the Treasury.



Sec. 9032.11  State.

    State means each State of the United States, Puerto Rico, American 
Samoa, the Virgin Islands, the District of Columbia, and Guam.

[64 FR 49363, Sept. 13, 1999]



PART 9033--ELIGIBILITY FOR PAYMENTS--Table of Contents




Sec.
9033.1  Candidate and committee agreements.
9033.2  Candidate and committee certifications; threshold submission.
9033.3  Expenditure limitation certification.
9033.4  Matching payment eligibility threshold requirements.
9033.5  Determination of ineligibility date.
9033.6  Determination of inactive candidacy.
9033.7  Determination of active candidacy.
9033.8  Reestablishment of eligibility.
9033.9  Failure to comply with disclosure requirements or expenditure 
          limitations.
9033.10  Procedures for initial and final determinations.
9033.11  Documentation of disbursements.
9033.12  Production of computerized information.

    Authority: 26 U.S.C. 9003(e), 9033 and 9039(b).

    Source: 56 FR 35930, July 29, 1991, unless otherwise noted.



Sec. 9033.1  Candidate and committee agreements.

    (a) General. (1) A candidate seeking to become eligible to receive 
Presidential primary matching fund payments shall agree in a letter 
signed by the candidate to the Commission that the candidate and the 
candidate's authorized committee(s) will comply with the conditions set 
forth in 11 CFR 9033.1(b). The candidate may submit the letter 
containing the agreements required by this section at any time after 
January 1 of the year immediately preceding the Presidential election 
year.
    (2) The Commission will not consider a candidate's threshold 
submission until the candidate has submitted a candidate agreement that 
meets the requirements of this section.
    (b) Conditions. The candidate shall agree that:
    (1) The candidate has the burden of proving that disbursements by 
the candidate or any authorized committee(s) or agents thereof are 
qualified campaign expenses as defined at 11 CFR 9032.9.
    (2) The candidate and the candidate's authorized committee(s) will 
comply with the documentation requirements set forth in 11 CFR 9033.11.
    (3) The candidate and the candidate's authorized committee(s) will 
provide an explanation, in addition to complying with the documentation 
requirements, of the connection between any disbursements made by the 
candidate or authorized committee(s) of the candidate and the campaign 
if requested by the Commission.
    (4) The candidate and the candidate's authorized committee(s) will 
keep and furnish to the Commission all documentation for matching fund 
submissions, any books, records (including bank records for all 
accounts), and supporting documentation and other information that the 
Commission may request.
    (5) The candidate and the candidate's authorized committee(s) will 
keep and furnish to the Commission all documentation relating to 
disbursements and receipts including any books, records (including bank 
records for all accounts), all documentation required by this section 
(including those required to be maintained under 11 CFR

[[Page 246]]

9033.11), and other information that the Commission may request. If the 
candidate or the candidate's authorized committee maintains or uses 
computerized information containing any of the categories of data listed 
in 11 CFR 9033.12(a), the committee will provide computerized magnetic 
media, such as magnetic tapes or magnetic diskettes, containing the 
computerized information at the times specified in 11 CFR 9038.1(b)(1) 
that meet the requirements of 11 CFR 9033.12(b). Upon request, 
documentation explaining the computer system's software capabilities 
shall be provided, and such personnel as are necessary to explain the 
operation of the computer system's software and the computerized 
information prepared or maintained by the committee shall be made 
available.
    (6) The candidate and the candidate's authorized committee(s) will 
obtain and furnish to the Commission upon request all documentation 
relating to funds received and disbursements made on the candidate's 
behalf by other political committees and organizations associated with 
the candidate.
    (7) The candidate and the candidate's authorized committee(s) will 
permit an audit and examination pursuant to 11 CFR part 9038 of all 
receipts and disbursements including those made by the candidate, all 
authorized committee(s) and any agent or person authorized to make 
expenditures on behalf of the candidate or committee(s). The candidate 
and the candidate's authorized committee(s) shall also provide any 
material required in connection with an audit, investigation, or 
examination conducted pursuant to 11 CFR part 9039. The candidate and 
authorized committee(s) shall facilitate the audit by making available 
in one central location, office space, records and such personnel as are 
necessary to conduct the audit and examination, and shall pay any 
amounts required to be repaid under 11 CFR parts 9038 and 9039.
    (8) The candidate and the candidate's authorized committee(s) will 
submit the name and mailing address of the person who is entitled to 
receive matching fund payments on behalf of the candidate and the name 
and address of the campaign depository designated by the candidate as 
required by 11 CFR part 103 and 11 CFR 9037.3. Changes in the 
information required by this paragraph shall not be effective until 
submitted to the Commission in a letter signed by the candidate or the 
Committee treasurer.
    (9) The candidate and the candidate's authorized committee(s) will 
prepare matching fund submissions in accordance with the Federal 
Election Commission's Guideline for Presentation in Good Order.
    (10) The candidate and the candidate's authorized committee(s) will 
comply with the applicable requirements of 2 U.S.C. 431 et seq.; 26 
U.S.C. 9031 et seq. and the Commission's regulations at 11 CFR parts 
100-116, and 9031-9039.
    (11) The candidate and the candidate's authorized committee(s) will 
pay an civil penalties included in a conciliation agreement or otherwise 
imposed under 2 U.S.C. 437g against the candidate, any authorized 
committees of the candidate or any agent thereof.
    (12) Any television commercial prepared or distributed by the 
candidate or the candidate's authorized committee(s) will be prepared in 
a manner which ensures that the commercial contains or is accompanied by 
closed captioning of the oral content of the commercial to be broadcast 
in line 21 of the vertical blanking interval, or is capable of being 
viewed by deaf and hearing impaired individuals via any comparable 
successor technology to line 21 of the vertical blanking interval.
    (13) The candidate and the candidate's authorized committee(s) will 
file all reports with the Commission in an electronic format that meets 
the requirements of 11 CFR 104.18 if the candidate or the candidate's 
authorized committee(s) maintain or use computerized information 
containing any of the information described in 11 CFR 104.3.

[56 FR 35930, July 29, 1991, as amended at 60 FR 31880, June 16, 1995; 
63 FR 45680, Aug. 27, 1998]



Sec. 9033.2  Candidate and committee certifications; threshold submission.

    (a) General. (1) A candidate seeking to become eligible to receive 
Presidential

[[Page 247]]

primary matching fund payments shall make the certifications set forth 
in 11 CFR 9033.2(b) to the Commission in a written statement signed by 
the candidate. The candidate may submit the letter containing the 
required certifications at any time after January 1 of the year 
immediately preceding the Presidential election year.
    (2) The Commission will not consider a candidate's threshold 
submission until the candidate has submitted candidate certifications 
that meet the requirements of this section.
    (b) Certifications. (1) The candidate shall certify that he or she 
is seeking nomination by a political party to the Office of President in 
more than one State. For purposes of this section, in order for a 
candidate to be deemed to be seeking nomination by a political party to 
the office of President, the party whose nomination the candidate seeks 
must have a procedure for holding a primary election, as defined in 11 
CFR 9032.7, for nomination to that office. For purposes of this section, 
the term political party means an association, committee or organization 
which nominates an individual for election to the office of President. 
The fact that an association, committee or organization qualifies as a 
political party under this section does not affect the party's status as 
a national political party for purposes of 2 U.S.C. 441a(a)(1)(B) and 
441a(a)(2)(B).
    (2) The candidate and the candidate's authorized committee(s) shall 
certify that they have not incurred and will not incur expenditures in 
connection with the candidate's campaign for nomination, which 
expenditures are in excess of the limitations under 11 CFR part 9035.
    (3) The candidate and the candidate's authorized committee(s) shall 
certify:
    (i) That they have received matchable contributions totaling more 
than $5,000 in each of at least 20 States; and
    (ii) That the matchable contributions are from individuals who are 
residents of the State for which their contributions are submitted.
    (iii) A maximum of $250 of each individual's aggregate contributions 
will be considered as matchable contributions for the purpose of meeting 
the thresholds of this section.
    (iv) For purposes of this section, contributions of an individual 
who maintains residences in more than one State may only be counted 
toward the $5,000 threshold for the State from which the earliest 
contribution was made by that contributor.
    (c) Threshold submission. To become eligible to receive matching 
payments, the candidate shall submit documentation of the contributions 
described in 11 CFR 9033.2(b)(3) to the Commission for review. The 
submission shall follow the format and requirements of 11 CFR 9036.1.



Sec. 9033.3  Expenditure limitation certification.

    (a) If the Commission makes an initial determination that a 
candidate or the candidate's authorized committee(s) have knowingly and 
substantially exceeded the expenditure limitations at 11 CFR part 9035 
prior to that candidate's application for certification, the Commission 
may make an initial determination that the candidate is ineligible to 
receive matching funds.
    (b) The Commission will notify the candidate of its initial 
determination, in accordance with the procedures outlined in 11 CFR 
9033.10(b). The candidate may submit, within 20 calendar days after 
service of the Commission's notice, written legal or factual materials, 
in accordance with 11 CFR 9033.10(b), demonstrating that he or she has 
not knowingly and substantially exceeded the expenditure limitations at 
11 CFR part 9035.
    (c) A final determination of the candidate's ineligibility will be 
made by the Commission in accordance with the procedures outlined in 11 
CFR 9033.10(c).
    (d) A candidate who receives a final determination of ineligibility 
under 11 CFR 9033.3(c) shall be ineligible to receive matching fund 
payments under 11 CFR 9034.1.



Sec. 9033.4  Matching payment eligibility threshold requirements.

    (a) The Commission will examine the submission made under 11 CFR 
9033.1 and 9033.2 and either--
    (1) Make a determination that the candidate has satisfied the 
minimum

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contribution threshold requirements under 11 CFR 9033.2(c); or
    (2) Make an initial determination that the candidate has failed to 
satisfy the matching payment threshold requirements. The Commission will 
notify the candidate of its initial determination in accordance with the 
procedures outlined in 11 CFR 9033.10(b). The candidate may, within 30 
calendar days after service of the Commission's notice, satisfy the 
threshold requirements or submit in accordance with 11 CFR 9033.10(b) 
written legal or factual materials to demonstrate that he or she has 
satisfied those requirements. A final determination by the Commission 
that the candidate has failed to satisfy threshold requirements will be 
made in accordance with the procedures outlined in 11 CFR 9033.10(c).
    (b) The Commission will make its examination and determination under 
this section as soon as practicable. During the Presidential election 
year, the Commission will generally complete its review and make its 
determination within 15 business days.

[56 FR 35930, July 29, 1991, as amended at 60 FR 31881, June 16, 1995]



Sec. 9033.5  Determination of ineligibility date.

    The candidate's date of ineligibility shall be whichever date by 
operation of 11 CFR 9033.5 (a), (b), or (c) occurs first. After the 
candidate's date of ineligibility, he or she may only receive matching 
payments to the extent that he or she has net outstanding campaign 
obligations as defined in 11 CFR 9034.5.
    (a) Inactive candidate. The ineligibility date shall be the day on 
which an individual ceases to be a candidate because he or she is not 
actively conducting campaigns in more than one State in connection with 
seeking the Presidential nomination. This date shall be the earliest 
of--
    (1) The date the candidate publicly announces that he or she will 
not be actively conducting campaigns in more than one State; or
    (2) The date the candidate notifies the Commission by letter that he 
or she is not actively conducting campaigns in more than one State; or
    (3) The date which the Commission determines under 11 CFR 9033.6 to 
be the date that the candidate is not actively seeking election in more 
than one State.
    (b) Insufficient votes. The ineligibility date shall be the 30th day 
following the date of the second consecutive primary election in which 
such individual receives less than 10 percent of the number of popular 
votes cast for all candidates of the same party for the same office in 
that primary election, if the candidate permitted or authorized his or 
her name to appear on the ballot, unless the candidate certifies to the 
Commission at least 25 business days prior to the primary that he or she 
will not be an active candidate in the primary involved.
    (1) The Commission may refuse to accept the candidate's 
certification if it determines under 11 CFR 9033.7 that the candidate is 
an active candidate in the primary involved.
    (2) For purposes of this paragraph, if the candidate is running in 
two primary elections in different States on the same date, the highest 
percentage of votes the candidate receives in any one State will govern. 
Separate primary elections held in more than one State on the same date 
are not deemed to be consecutive primaries. If two primary elections are 
held on the same date in the same State (e.g., a primary to select 
delegates to a national nominating convention and a primary for the 
expression of preference for the nomination of candidates for election 
to the office of President), the highest percentage of votes a candidate 
receives in either election will govern. If two or more primaries are 
held in the same State on different dates, the earliest primary will 
govern.
    (3) If the candidate certifies that he or she will not be an active 
candidate in a particular primary, and the Commission accepts the 
candidate's certification, the primary involved shall not be counted in 
determining the candidate's date of ineligibility under paragraph (b) of 
this section, regardless of the percentage of popular votes cast for the 
candidate in that primary.
    (c) End of matching payment period. The ineligibility date shall be 
the last day of the matching payment period

[[Page 249]]

for the candidate as specified in 11 CFR 9032.6.
    (d) Reestablishment of eligibility. If the Commission has determined 
that a candidate is ineligible under 11 CFR 9033.5 (a) or (b), the 
candidate may reestablish eligibility to receive matching funds under 11 
CFR 9033.8.



Sec. 9033.6  Determination of inactive candidacy.

    (a) General. The Commission may, on the basis of the factors listed 
in 11 CFR 9033.6(b) below, make a determination that a candidate is no 
longer actively seeking nomination for election in more than one State. 
Upon a final determination by the Commission that a candidate is 
inactive, that candidate will become ineligible as provided in 11 CFR 
9033.5.
    (b) Factors considered. In making its determination of inactive 
candidacy, the Commission may consider, but is not limited to 
considering, the following factors:
    (1) The frequency and type of public appearances, speeches, and 
advertisements;
    (2) Campaign activity with respect to soliciting contributions or 
making expenditures for campaign purposes;
    (3) Continued employment of campaign personnel or the use of 
volunteers;
    (4) The release of committed delegates;
    (5) The candidate urges his or her delegates to support another 
candidate while not actually releasing committed delegates;
    (6) The candidate urges supporters to support another candidate.
    (c) Initial determination. The Commission will notify the candidate 
of its initial determination in accordance with the procedures outlined 
in 11 CFR 9033.10(b) and will advise the candidate of the date on which 
active campaigning in more than one State ceased. The candidate may, 
within 15 business days after service of the Commission's notice, submit 
in accordance with 11 CFR 9033.10(b) written legal or factual materials 
to demonstrate that he or she is actively campaigning in more than one 
State.
    (d) Final determination. A final determination of inactive candidacy 
will be made by the Commission in accordance with the procedures 
outlined in 11 CFR 9033.10(c).



Sec. 9033.7  Determination of active candidacy.

    (a) Where a candidate certifies to the Commission under 11 CFR 
9033.5(b) that he or she will not be an active candidate in an upcoming 
primary, the Commission may, nevertheless, on the basis of factors 
listed in 11 CFR 9033.6(b), make an initial determination that the 
candidate is an active candidate in the primary involved.
    (b) The Commission will notify the candidate of its initial 
determination within 10 business days of receiving the candidate's 
certification under 11 CFR 9033.5(b) or, if the timing of the activity 
does not permit notice during the 10 day period, as soon as practicable 
following campaign activity by the candidate in the primary state. The 
Commission's initial determination will be made in accordance with the 
procedures outlined in 11 CFR 9033.10(b). Within 10 business days after 
service of the Commission's notice the candidate may submit, in 
accordance with 11 CFR 9033.10(b), written legal or factual materials to 
demonstrate that he or she is not an active candidate in the primary 
involved.
    (c) A final determination by the Commission that the candidate is 
active will be made in accordance with the procedures outlined in 11 CFR 
9033.10(c).



Sec. 9033.8  Reestablishment of eligibility.

    (a) Candidates found to be inactive. A candidate who has become 
ineligible under 11 CFR 9033.5(a) on the basis that he or she is not 
actively campaigning in more than one State may reestablish eligibility 
for matching payments by submitting to the Commission evidence of active 
campaigning in more than one State. In determining whether the candidate 
has reestablished eligibility, the Commission will consider, but is not 
limited to considering, the factors listed in 11 CFR 9033.6(b). The day 
the Commission determines to be the day the candidate becomes active 
again will be the date on which eligibility is reestablished.

[[Page 250]]

    (b) Candidates receiving insufficient votes. A candidate determined 
to be ineligible under 11 CFR 9033.5(b) by failing to obtain the 
required percentage of votes in two consecutive primaries may have his 
or her eligibility reestablished if the candidate receives at least 20 
percent of the total number of votes cast for candidates of the same 
party for the same office in a primary election held subsequent to the 
date of the election which rendered the candidate ineligible.
    (c) The Commission will make its determination under 11 CFR 9033.8 
(a) or (b) without requiring the individual to reestablish eligibility 
under 11 CFR 9033.1 and 2. A candidate whose eligibility is 
reestablished under this section may submit, for matching payment, 
contributions received during ineligibility. Any expenses incurred 
during the period of ineligibility that would have been considered 
qualified campaign expenses if the candidate had been eligible during 
that time may be defrayed with matching payments.



Sec. 9033.9  Failure to comply with disclosure requirements or expenditure limitations.

    (a) If the Commission receives information indicating that a 
candidate or his or her authorized committee(s) has knowingly and 
substantially failed to comply with the disclosure requirements of 2 
U.S.C. 434 and 11 CFR part 104, or that a candidate has knowingly and 
substantially exceeded the expenditure limitations at 11 CFR part 9035, 
the Commission may make an initial determination to suspend payments to 
that candidate.
    (b) The Commission will notify the candidate of its initial 
determination in accordance with the procedures outlined in 11 CFR 
9033.10(b). The candidate will be given an opportunity, within 20 
calendar days after service of the Commission's notice, to comply with 
the above cited provisions or to submit in accordance with 11 CFR 
9033.10(b) written legal or factual materials to demonstrate that he or 
she is not in violation of those provisions.
    (c) Suspension of payments to a candidate will occur upon a final 
determination by the Commission to suspend payments. Such final 
determination will be made in accordance with the procedures outlined in 
11 CFR 9033.10(c).
    (d)(1) A candidate whose payments have been suspended for failure to 
comply with reporting requirements may become entitled to receive 
payments if he or she subsequently files the required reports and pays 
or agrees to pay any civil or criminal penalties resulting from failure 
to comply.
    (2) A candidate whose payments are suspended for exceeding the 
expenditure limitations shall not be entitled to receive further 
matching payments under 11 CFR 9034.1.



Sec. 9033.10  Procedures for initial and final determinations.

    (a) General. The Commission will follow the procedures set forth in 
this section when making an initial or final determination based on any 
of the following reasons.
    (1) The candidate has knowingly and substantially exceeded the 
expenditure limitations of 11 CFR part 9035 prior to the candidate's 
application for certification, as provided in 11 CFR 9033.3;
    (2) The candidate has failed to satisfy the matching payment 
threshold requirements, as provided in 11 CFR 9033.4;
    (3) The candidate is no longer actively seeking nomination in more 
than one state, as provided in 11 CFR 9033.6;
    (4) The candidate is an active candidate in an upcoming primary 
despite the candidate's assertion to the contrary, as provided in 11 CFR 
9033.7;
    (5) The Commission receives information indicating that the 
candidate has knowingly and substantially failed to comply with the 
disclosure requirements or exceeded the expenditure limits, as provided 
in 11 CFR 9033.9; or
    (6) The Commission receives information indicating that substantial 
assets of the candidate's authorized committee have been undervalued or 
not included in the candidate's statement of net outstanding campaign 
obligations or that the amount of outstanding campaign obligations has 
been otherwise overstated in relation to committee assets, as provided 
in 11 CFR 9034.5(g).

[[Page 251]]

    (b) Initial determination. If the Commission makes an initial 
determination that a candidate may not receive matching funds for one or 
more of the reasons indicated in 11 CFR 9033.10(a), the Commission will 
notify the candidate of its initial determination. The notification will 
give the legal and factual reasons for the determination and advise the 
candidate of the evidence on which the Commission's initial 
determination is based. The candidate will be given an opportunity to 
comply with the requirements at issue or to submit, within the time 
provided by the relevant section as referred to in 11 CFR 9033.10(a), 
written legal or factual materials to demonstrate that the candidate has 
satisfied those requirements. Such materials may be submitted by counsel 
if the candidate so desires.
    (c) Final determination. The Commission will consider any written 
legal or factual materials timely submitted by the candidate before 
making its final determination. A final determination that the candidate 
has failed to satisfy the requirements at issue will be accompanied by a 
written statement of reasons for the Commission's action. This statement 
will explain the legal and factual reasons underlying the Commission's 
determination and will summarize the results of any investigation upon 
which the determination is based.
    (d) Effect on other determinations. If the Commission makes an 
initial determination under this section, but decides to take no further 
action at that time, the Commission may use the legal and factual bases 
on which the initial determination was based in any future repayment 
determination under 11 CFR part 9038 or 9039. A determination by the 
Commission under this section may be independent of any Commission 
decision to institute an enforcement proceeding under 2 U.S.C. 437g.
    (e) Petitions for rehearing. Following a final determination under 
this section, the candidate may file a petition for rehearing in 
accordance with 11 CFR 9038.5(a).



Sec. 9033.11  Documentation of disbursements.

    (a) Burden of proof. Each candidate shall have the burden of proving 
that disbursements made by the candidate or his or her authorized 
committee(s) or persons authorized to make expenditures on behalf of the 
candidate or authorized committee(s) are qualified campaign expenses as 
defined in 11 CFR 9032.9. The candidate and his or her authorized 
committee(s) shall obtain and furnish to the Commission on request any 
evidence regarding qualified campaign expenses made by the candidate, 
his or her authorized committees and agents or persons authorized to 
make expenditures on behalf of the candidate or committee(s) as provided 
in paragraph (b) of this section.
    (b) Documentation required. (1) For disbursements in excess of $200 
to a payee, the candidate shall present a canceled check negotiated by 
the payee and either:
    (i) A receipted bill from the payee that states the purpose of the 
disbursement; or
    (ii) If such a receipt is not available,
    (A) One of the following documents generated by the payee: a bill, 
invoice, or voucher that states the purpose of the disbursement; or
    (B) Where the documents specified in paragraph (b)(1)(ii)(A) of this 
section are not available, a voucher or contemporaneous memorandum from 
the candidate or the committee that states the purpose of the 
disbursement; or
    (iii) Where the supporting documentation required in paragraphs 
(b)(1) (i) or (ii) of this section is not available, the candidate or 
committee may present collateral evidence to document the qualified 
campaign expense. Such collateral evidence may include, but is not 
limited to:
    (A) Evidence demonstrating that the expenditure is part of an 
identifiable program or project which is otherwise sufficiently 
documented such as a disbursement which is one of a number of documented 
disbursements relating to a campaign mailing or to the operation of a 
campaign office; or
    (B) Evidence that the disbursement is covered by a pre-established 
written campaign committee policy, such as a daily travel expense 
policy.

[[Page 252]]

    (iv) If the purpose of the disbursement is not stated in the 
accompanying documentation, it must be indicated on the canceled check 
negotiated by the payee.
    (2) For all other disbursements, the candidate shall present:
    (i) A record disclosing the full name and mailing address of the 
payee, the amount, date and purpose of the disbursement, if made from a 
petty cash fund; or
    (ii) A canceled check negotiated by the payee that states the full 
name and mailing address of the payee, and the amount, date and purpose 
of the disbursement.
    (3) For purposes of this section:
    (i) Payee means the person who provides the goods or services to the 
candidate or committee in return for the disbursement; except that an 
individual will be considered a payee under this section if he or she 
receives $1000 or less advanced for travel and/or subsistence and if the 
individual is the recipient of the goods or services purchased.
    (ii) Purpose means the full name and mailing address of the payee, 
the date and amount of the disbursement, and a brief description of the 
goods or services purchased. Examples of acceptable and unacceptable 
descriptions of goods and services purchased are listed at 11 CFR 
104.3(b)(3)(i)(B).
    (c) Retention of records. The candidate shall retain records with 
respect to each disbursement and receipt, including bank records, 
vouchers, worksheets, receipts, bills and accounts, journals, ledgers, 
fundraising solicitation material, accounting systems documentation, and 
any related materials documenting campaign receipts and disbursements, 
for a period of three years pursuant to 11 CFR 102.9(c), and shall 
present these records to the Commission on request.
    (d) List of capital and other assets--(1) Capital assets. The 
candidate or committee shall maintain a list of all capital assets whose 
purchase price exceeded $2000 when acquired by the campaign. The list 
shall include a brief description of each capital asset, the purchase 
price, the date it was acquired, the method of disposition and the 
amount received in disposition. For purposes of this section, ``capital 
asset'' shall be defined in accordance with 11 CFR 9034.5(c)(1).
    (2) Other assets. The candidate or committee shall maintain a list 
of other assets acquired for use in fundraising or as collateral for 
campaign loans, if the aggregate value of such assets exceeds $5000. The 
list shall include a brief description of each such asset, the fair 
market value of each asset, the method of disposition and the amount 
received in disposition. The fair market value of other assets shall be 
determined in accordance with 11 CFR 9034.5(c)(2).

[60 FR 31881, June 16, 1995, as amended at 64 FR 49363, Sept. 13, 1999]



Sec. 9033.12  Production of computerized information.

    (a) Categories of computerized information to be provided. If the 
candidate or the candidate's authorized committee maintains or uses 
computerized information containing any of the categories of data listed 
in paragraphs (a)(1) through (a)(9) of this section, the committee shall 
provide computerized magnetic media, such as magnetic tapes or magnetic 
diskettes, containing the computerized information at the times 
specified in 11 CFR 9038.1(b)(1):
    (1) Information required by law to be maintained regarding the 
committee's receipts or disbursements;
    (2) Records of allocations of expenditures to particular state 
expenditure limits and to the overall expenditure limit;
    (3) Disbursements for exempt fundraising and exempt compliance 
costs, including the allocation of salaries and overhead expenditures;
    (4) Records of allocations of expenditures for the purchase of 
broadcast media;
    (5) Records used to prepare statements of net outstanding campaign 
obligations;
    (6) Records used to reconcile bank statements;
    (7) Disbursements made and reimbursements received for the cost of 
transportation, ground services and facilities made available to media 
personnel, including records relating to

[[Page 253]]

how costs charged to media personnel were determined;
    (8) Records relating to the acquisition, use and disposition of 
capital assets or other assets; and
    (9) Any other information that may be used during the Commission's 
audit to review the committee's receipts, disbursements, loans, debts, 
obligations, bank reconciliations or statements of net outstanding 
campaign obligations.
    (b) Organization of computerized information and technical 
specifications. The computerized magnetic media shall be prepared and 
delivered at the committee's expense and shall conform to the technical 
specifications, including file requirements, described in the Federal 
Election Commission's Computerized Magnetic Media Requirements for title 
26 Candidates/Committees Receiving Federal Funding. The data contained 
in the computerized magnetic media provided to the Commission shall be 
organized in the order specified by the Computerized Magnetic Media 
Requirements.
    (c) Additional materials and assistance. Upon request, the committee 
shall provide documentation explaining the computer system's software 
capabilities, such as user guides, technical manuals, formats, layouts 
and other materials for processing and analyzing the information 
requested. Upon request, the committee shall also make available such 
personnel as are necessary to explain the operation of the computer 
system's software and the computerized information prepared or 
maintained by the committee.



PART 9034--ENTITLEMENTS--Table of Contents




Sec.
9034.1  Candidate entitlements.
9034.2  Matchable contributions.
9034.3  Non-matchable contributions.
9034.4  Use of contributions and matching payments.
9034.5  Net outstanding campaign obligations.
9034.6  Expenditures for transportation and services made available to 
          media personnel; reimbursements.
9034.7  Allocation of travel expenditures.
9034.8  Joint fundraising.
9034.9  Sale of assets acquired for fundraising purposes.

    Authority: 26 U.S.C. 9034 and 9039(b).

    Source: 56 FR 34132, July 25, 1991 and 56 FR 35934, July 29, 1991, 
unless otherwise noted.



Sec. 9034.1  Candidate entitlements.

    (a) A candidate who has been notified by the Commission under 11 CFR 
9036.1 that he or she has successfully satisfied eligibility and 
certification requirements is entitled to receive payments under 26 
U.S.C. 9037 and 11 CFR part 9037 in an amount equal