[Federal Register Volume 61, Number 159 (Thursday, August 15, 1996)]
[Rules and Regulations]
[Pages 42371-42376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20804]


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FEDERAL ELECTION COMMISSION

11 CFR Part 104

[Notice 1996-16]


Electronic Filing of Reports by Political Committees

AGENCY: Federal Election Commission.

ACTION: Final rules; transmittal of regulations to Congress.

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SUMMARY: The Federal Election Commission is implementing an electronic 
filing system for reports of campaign finance activity filed with the 
agency. The Commission is publishing new rules today as part of the 
process of implementing this system. The new rules establish general 
requirements for

[[Page 42372]]

filing reports electronically; specify the format for data to be 
submitted by filers; set up procedures for submitting amendments to 
reports; and explain methods of complying with the signature 
requirements of the law. Further information is provided in the 
supplementary information that follows.

EFFECTIVE DATE: Further action, including the announcement of an 
effective date, will be taken after these regulations have been before 
Congress for 30 legislative days pursuant to 2 U.S.C. 438(d). A 
document announcing the effective date will be published in the Federal 
Register.

FOR FURTHER INFORMATION CONTACT: Ms. Susan E. Propper, Assistant 
General Counsel, or Paul Sanford, Staff Attorney, 999 E Street, NW., 
Washington, DC 20463, (202) 219-3690 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: The Commission is today publishing the final 
text of new regulations to be added to 11 CFR Part 104 regarding the 
electronic filing of reports by political committees. These rules 
implement provisions of Public Law 104-79, which amended the Federal 
Election Campaign Act of 1971, 2 U.S.C. 431 et seq. [``the Act''], to 
require, inter alia, that the Commission create a system to ``permit 
reports required by this Act to be filed and preserved by means of 
computer disk or any other electronic format or method, as determined 
by the Commission.'' Federal Election Campaign Act of 1971, Amendment, 
Pub. L. No. 104-79, section 1(a), 109 Stat. 791 (December 28, 1995). 
The final rules announced today set out the requirements and procedures 
for filing reports electronically.
    The electronic filing system is intended to reduce paper filing and 
manual processing of reports, resulting in more efficient and cost-
effective methods of operation for filers and for the Commission. The 
system will also provide the public with more complete on-line access 
to reports on file with the Commission, thereby furthering the 
disclosure purposes of the Act. Public Law 104-79 requires the 
Commission to make this filing method available for reports covering 
periods after December 31, 1996. Thus, the new system will be in place 
for the first reports filed in the 1998 election cycle.
    Public Law 104-79 requires the Commission to make the electronic 
filing option available for all ``report[s], designation[s], or 
statement[s] required by this Act to be filed with the Commission.'' 
Previously, this would not have included reports filed by the 
authorized committees of candidates for the House of Representatives, 
as these committees filed their reports with the Clerk of the House. 
However, section 3 of Public Law 104-79 amended 2 U.S.C. 432(g) to 
require the authorized committees of House candidates to file their 
reports with the Commission. Consequently, these committees, as well as 
those that have historically filed with the Commission, will have the 
opportunity to file electronically under the new system. Committees 
that are required to file reports with the Secretary of the Senate will 
not be covered by the new rules.
    While the Commission encourages political committees and other 
persons to file their reports electronically, doing so is not required. 
Under Public Law 104-79, participation in the Commission's electronic 
filing program is voluntary. Therefore, filers have the option of 
continuing to submit paper reports as they have in the past.
    Section 438(d) of Title 2, United States Code requires that any 
rules or regulations prescribed by the Commission to carry out the 
provisions of Title 2 of the United States Code be transmitted to the 
Speaker of the House of Representatives and the President of the Senate 
30 legislative days before they are finally promulgated. These 
regulations were transmitted to Congress on August 9, 1996.

Explanation and Justification for 11 CFR 104.18

    The Commission initiated this rulemaking with a Notice of Proposed 
Rulemaking [``NPRM''] published in the Federal Register on March 27, 
1996. 61 FR 13465 (March 27, 1996). The NPRM contained proposed rules 
covering general filing requirements, the format for electronic 
reports, report validation procedures, amendments to electronically 
filed reports, signature requirements, and the preservation of reports 
filed electronically. The NPRM sought comments on the proposed rules 
and on other issues from various segments of the regulated community, 
including (1) committees that will be affected by the new rules; (2) 
vendors with knowledge of the software issues involved in implementing 
such a system; and (3) state and local jurisdictions that have 
experience with electronic filing. The Commission received ten comments 
in response to the NPRM. Several commenters offered general 
observations about the features that an electronic filing system should 
include. Other commenters offered specific comments on the proposed 
rules set out in the notice. The Internal Revenue Service submitted a 
comment in which it said that the proposed rules are not inconsistent 
with IRS regulations or the Internal Revenue Code. The comments 
received provided valuable information that serves as the basis for the 
final rules published today.

General Comments About System Features

    Some commenters offered general comments about the features that 
should be incorporated into the electronic filing system. One commenter 
urged the Commission to make the software for the system as user 
friendly as possible, in order to make filing FEC reports easier, and 
also urged the Commission to make the software available free of charge 
through its World Wide Web site. This commenter said that filers should 
be required to include the FEC identification number of the candidates 
and PACs listed on their reports in order to ensure accurate 
incorporation of the reports into the Commission's data base, and 
suggested that pop-up menus could be incorporated into the software 
that would allow filers to select this and other information from a 
master list.
    Similarly, this commenter along with one other commenter, urged the 
Commission to establish a standardized list of codes for reported 
disbursements. This proposal was set out in the narrative portion of 
the NPRM. However, the commenter said filers should be able to include 
a written elaboration. This commenter also said that any software made 
available by the Commission should not include any campaign management 
features, since these features would suggest assistance to candidates 
and would present practical problems.
    Another commenter said that encryption capabilities should be 
incorporated into the electronic filing software, since this would 
serve the dual purposes of compressing files and providing security in 
the reporting.
    The Commission shares the commenter's view that the electronic 
filing system must be as easy to use as possible, and intends to make 
any software that it creates available free of charge through the 
Internet and other electronic means. Initially, this will be limited to 
the validation software that filers will use to validate their reports 
before submitting them to the Commission on diskette. Additional 
software, such as encryption software, will be made available after 
initial implementation, as the Commission moves towards filing by 
telecommunications. The Commission will also make a list of the 
identification numbers of all registered candidates and committees 
available on the Internet for committees to download and

[[Page 42373]]

incorporate into their reports. Committees can access this list through 
the Commission's home page at www.fec.gov.

General Rule

    Paragraph (a) of the proposed rules set out the general rule that 
political committees who file reports with the Commission may choose to 
file their reports in an electronic format that meets the requirements 
of the section. Paragraph (a) also states that committees that choose 
to file electronically and whose reports satisfy the validation program 
described in paragraph (c), below, must continue to file electronically 
all reports covering financial activity for that calendar year. The 
Commission sought comment on whether the rules should distinguish 
between committees that begin filing electronically but later encounter 
problems and are unable to do so from those who simply decide to 
discontinue filing electronic reports.
    The Commission received no comments on the general rule or on the 
one year continuation requirement. Generally, the final rule tracks the 
proposed rule. Requiring committees that begin to file reports 
electronically to continue to do so for the rest of the year will 
enable the Commission to more efficiently process the committee's 
reports and place them on the public record. However, the rule now 
contains an exception that waives this requirement if the Commission 
determines that extraordinary and unforeseeable circumstances have made 
it impracticable for the committee to continue filing electronically. 
In order to obtain a waiver, a committee must submit a written request 
to the Commission's Data Systems Development Division explaining the 
circumstances that make continued electronic filing impracticable. The 
Data Division will review these requests and make a determination as to 
whether the committee may revert to paper filing. Generally, waivers 
will only be granted if circumstances such as destruction of the 
committee's computer equipment make continued electronic filing 
technologically impossible. Committees that revert to paper filing will 
be required to report on paper for the remainder of the calendar year.

Standard format

    Under paragraph (b) of the proposed rules, reports filed 
electronically must conform to the technical specifications, including 
file requirements, described in the Commission's Electronic Filing 
Specification Requirements [``EFSR''], and must be organized in the 
order specified in those requirements. The narrative portion of the 
NPRM indicated that the Commission would develop these requirements in 
a parallel process to the Electronic Filing rulemaking, and would make 
the requirements available to the public during the development 
process. The notice invited interested persons to comment on the 
requirements as they were being developed.
    The draft electronic filing specification requirements were made 
available for comment on May 31, 1996. Several comments were submitted 
on the draft requirements. The Commission expects to issue a final 
version of the EFSR during mid-August, 1996.
    A few commenters addressed the issue of standardized format 
specifications in their comments on the NPRM. Two commenters expressed 
support for the Commission's plans to develop a standard format. One of 
these commenters suggested that the Commission use the same field 
structures and lengths as those in the Computerized Magnetic Media 
Requirements [``CMMR''] currently used by publicly financed 
presidential campaigns. The other commenter said the need to develop a 
standard format for electronically filed reports was obvious, but said 
that the format should not be so technical that users are unable to 
generate properly formatted reports themselves.
    The format required for electronically filed reports will be 
relatively simple, and users should be able to easily generate properly 
formatted reports using the EFSR documentation. The Commission has used 
the CMMR as a model for the EFSR, and incorporated similar field 
structures and lengths where appropriate. However, the EFSR will differ 
in many significant respects, because the CMMR was designed to 
facilitate the matching fund submission process for presidential 
primary candidates, whereas the EFSR must serve the broader purposes of 
reporting under Part 104 of the regulations. Thus, while the EFSR will 
share some of the characteristics of the CMMR, the EFSR will include 
specifications for the full range of activities that are reportable 
under section 434 of the Act and Part 104 of the regulations.
    In contrast to the two comments described above, a third commenter 
suggested an entirely different approach for filing reports 
electronically. This commenter said that filers should simply scan the 
Commission's forms into their databases, complete the forms, and submit 
them to the Commission by electronic mail. Or, as an alternative to 
scanning, the Commission should make the forms available on a diskette 
for $25.
    Accepting scanned forms as electronically filed reports would 
complicate the electronic filing process, because scanned forms would 
be more difficult to directly integrate into the Commission's 
disclosure data base. Direct integration will be achieved most 
efficiently if reports are made up of a series of fields of ASCII 
characters. Scanned forms are digitized images, rather than fields of 
ASCII characters. Since direct integration is one of the main goals of 
electronic filing, the Commission has decided not to accept scanned 
images as electronically filed reports.

Acceptance of Reports Filed Electronically

    1. Validation checks. Under paragraph (c) of the proposed rules, 
committees submitting reports electronically would be required to check 
each report against the Commission's validation software before it is 
submitted, to ensure that it meets the standard format specification 
requirements. Paragraph (c)(1) also indicated that electronically filed 
reports would be checked again when they are received by the 
Commission. The Commission would not accept reports that do not pass 
the validation program, and would notify a committee if its reports are 
rejected.
    One commenter suggested that, instead of supplying validation 
software, the Commission certify a commercial disclosure software 
package. This, the commenter said, would allow filers to bypass the 
process of validating each submission.
    The Commission is unable to adopt this commenter's suggestion. The 
validation software will ensure that electronic reports submitted to 
the Commission conform to the electronic filing specification 
requirements and can be integrated into the Commission's disclosure 
data base. The Commission is making the validation software available 
to committees so that reports can be checked before they are submitted. 
This will allow filers to remedy filing problems before sending their 
reports to the Commission. Although commercial software packages may 
become available that will perform this function, the Commission is 
reluctant to treat any of these packages as a substitute for the 
validation software, because doing so would require ongoing oversight 
of these software packages to ensure continued compliance with the 
EFSR. The Commission is unwilling and unable to perform this oversight. 
Therefore, the Commission will not

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recognize commercial software as a substitute for the validation 
process.
    Another commenter suggested that the Commission develop what the 
commenter described as ``pre-auditing'' software that would 
automatically review reports before they are submitted in order to 
ensure that the reports are complete and correct to the greatest extent 
possible. The commenter said that this software should check for math 
errors, look for inconsistencies between the summary page and the 
detailed reporting pages, and notify the filer if mandatory fields have 
been left blank, contributions have been listed that exceed the 
applicable limits, or data has been included that is outside the 
reporting period range.
    The validation software filers will be required to use in 1997 will 
perform some of these functions. Specifically, this software will 
ensure that all required information is included in the report, and 
will also examine the report for inconsistencies between the summary 
pages and detailed reporting pages. The Commission's current plans are 
to incorporate other pre-auditing functions, such as checking for math 
errors, etc., into the more sophisticated validation software that will 
be made available for the next phase of the program in 1998. This may 
further increase the accuracy of electronically filed reports as the 
Commission moves towards submission by telecommunications and direct 
integration into the disclosure data base.
    2. Methods of transmission. The narrative portion of the NPRM 
explained that the Commission initially intends to accept reports only 
on floppy disk. However, the Commission will begin accepting reports 
submitted through telecommunications as soon as practicable. One 
commenter urged the Commission to begin accepting reports submitted by 
electronic mail right away. However, another commenter said that there 
are space limitations on electronic mail that preclude it from serving 
this purpose, and that it is not reliable enough to serve as a filing 
medium.
    The Commission continues to believe that a gradual implementation 
of the electronic filing program will minimize the transitional 
difficulties and will be more likely to lead to a viable electronic 
filing system. Accepting reports by electronic mail would raise 
security issues that the Commission would rather address during the 
second phase of the electronic filing program. Therefore, the 
Commission has decided to adhere to its plan to initially accept 
electronic reports only on floppy disk. The Commission will move toward 
accepting reports through telecommunications as soon as possible.

Amended Reports

    Paragraph (d) of the proposed rules would require that amendments 
to electronically filed reports be filed electronically. This provision 
would also require that amendments consist of a complete version of the 
report as amended, rather than just those portions of the report that 
have been revised. In the narrative portion of the NPRM, the Commission 
recognized that requiring submission of a complete version of the 
amended report has one drawback in that the complete version will not 
immediately indicate which aspects of the earlier report had changed. 
Thus, persons reviewing the report will have difficulty identifying new 
information. The Commission specifically sought comment on whether 
another approach would be preferable.
    All three commenters that addressed this issue supported the 
approach set out in the proposed rule. One commenter suggested that the 
Commission require filers to flag revised information in the amended 
report so that persons reviewing the report will be able to readily 
determine which portions have been changed. Another commenter said that 
information that has been amended should be highlighted in the 
Commission's data base. This would be achieved by replacing the amended 
field in the original report with the identification number of the 
amended report containing the superseding information. This commenter 
also suggested that the Commission produce a cumulative electronic list 
of amended items.
    The final rule tracks the proposed rule in that it requires filers 
to submit a complete version of the report as amended, rather than just 
those portions of the report that are being amended. However, the final 
rule also adopts the commenter's suggestion in that it requires filers 
to include electronic flags or markings in their amended reports that 
point to the portions of the report that are being amended. These flags 
will be incorporated into the Commission's disclosure process so that 
persons reviewing the committee's reports will know which portions have 
been revised.

Signature Requirements

    1. Committee signatures. Paragraph (e) of the proposed rules would 
require the committee treasurer or other person responsible for filing 
the committee's report to verify the report either by submitting a 
signed paper certification with the computerized magnetic media, or by 
submitting a digitized copy of the signed certification as a separate 
file in the electronic submission. This provision would also require 
the person signing the report to certify that, to the best of the 
signatory's knowledge, the report is true, correct and complete. These 
verifications would be treated the same as verification by signature on 
a paper report. When the Commission begins to accept reports by 
telecommunications, it may provide other methods for verification, such 
as providing an encryption key to the committee treasurer or allowing 
simultaneous mailing of the signature page. The Commission sought 
comment on these proposals, and invited commenters to suggest other 
ways for complying with the signature requirement.
    One commenter said the Commission should be responsible for 
comparing electronically submitted signatures with signatures already 
on file. If the signatures look correct, they should be treated as 
valid, with the burden of proving otherwise on the person alleging the 
signature is not genuine.
    Comments submitted by the New York City Campaign Finance Board 
indicate that the Board requires candidates who file on disk to submit 
a paper control page that lists the schedule totals, file creation 
dates, and contains the committee treasurer's original signature. Under 
the system used by New York City, these pages cannot be created until 
all report data has been entered and submission disks have been 
created.
    As explained above, the Commission's validation program will ensure 
that electronically filed reports contain all of the necessary 
information. However, Congress has specifically directed the Commission 
to ``provide for one or more methods (other than requiring a signature 
on the report being filed) for verifying reports filed by means of 
computer disk or other electronic format or method.'' 2 U.S.C. 
434(a)(11)(B), as added by Pub. L. No. 104-79, section 1(a), 109 Stat. 
791 (1995). Thus, the Commission is unable to require submission of a 
signature page. For these reasons, the Commission has structured this 
program so that filers will include all of the required information 
within the electronic data submitted. With a few exceptions, no paper 
submissions will be required. The exceptions will be explained further 
below.
    With regard to encryption, another commenter expressed the view 
that implementing a program such as ``PGP'' or ``Pretty Good Privacy'' 
to provide a digital signature would be nearly impossible because of 
the

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administrative difficulties of issuing and receiving the necessary 
keys. This commenter suggested that it would be better to achieve 
security by issuing a PIN-like password to each filer by regular mail. 
This commenter also recommended implementation of a cross-checking 
program under which each filer would submit a signed paper summary page 
for each report. The amounts listed on the summary page could then be 
compared to the more detailed portions of the electronically submitted 
reports to provide an additional level of security and assurance.
    The Commission's validation software will compare a report's 
summary page with its detailed summary page to ensure that they are 
consistent, thereby providing an additional level of security. However, 
the Commission has not addressed the encryption issue in this set of 
final rules. The Commission expects to incorporate a more sophisticated 
security system into the electronic filing program when it moves closer 
to accepting reports through telecommunications.
    2. Signatures of third parties. The NPRM also noted that certain 
forms and schedules required by the Act and regulations must be 
submitted with the signatures of third parties. For example, Schedule E 
and Form 5, which are used to report independent expenditures, must be 
notarized. Paragraph (f) of the proposed rules contains a list of the 
schedules, materials and forms that have special signature 
requirements. Under this provision, electronic filers that are required 
to submit these items could do so by submitting a paper copy of the 
item with their electronic report, or by including a digitized version 
of the item as a separate file in the electronic submission. This would 
be in addition to the general requirement that the data contained on 
the form or schedule be included in the electronic report. The 
Commission received no comments on this requirement.
    The final rule tracks the proposed rule. Filers have the option of 
submitting paper copies or a digitized image as part of their 
electronic report.

Preservation of Reports

    Section 104.14(b)(2) of the Commission's current regulations 
requires committee treasurers to retain copies of all reports or 
statements submitted for a period of three years after they are filed. 
Paragraph (g) of the proposed rules would require committee treasurers 
to retain machine readable copies of all reports filed electronically 
as the copy preserved under this section. Paragraph (g) would also 
require a treasurer to retain the original signed version of any 
documents submitted in a digitized format under paragraphs (e) or (f), 
as explained above.
    One commenter argued that PACs should be permitted to retain files 
exclusively on diskette, and said that keeping a hard copy is redundant 
and self-defeating.
    A file of a report retained on a diskette would be considered a 
machine readable copy of that report under the final rules. Thus, a 
committee could retain its reports almost exclusively on diskette. 
However, if a committee submits a digitized image of the signature page 
of a report, schedule or other document to the Commission, in lieu of 
submitting the signed paper original, the committee must retain the 
signed original signature page for three years after the report is 
filed. Thus, in certain situations, committees will be required to 
maintain paper copies of portions of some reports.

Additional Issues

    The Notice of Proposed Rulemaking sought additional information and 
comment from the regulated community on other subjects related to the 
electronic filing program. Specifically, the NPRM invited commenters to 
describe their current computer capabilities and indicate what kind of 
records they are currently maintaining electronically. The NPRM also 
asked commenters to indicate whether they intend to file their reports 
electronically, and to describe how they expect to benefit from the 
electronic filing program. Commenters were also asked to describe the 
technical and procedural problems they perceive with the system, and 
provide suggestions on how these problems might be averted.
    Several commenters addressed these issues. Two commenters indicated 
they have PC-based systems and use software such as Microsoft Office, 
Microsoft Excel, WordPerfect, and Lotus 123. These commenters intend to 
file their reports electronically once the program has been 
implemented. In contrast, one software vendor said that the program 
would not save its clients any time or money. Thus, they would not 
benefit from participating in the program.
    The two commenters who intend to participate in the program said 
they expect it to make the filing process more efficient by reducing 
the duplication of efforts in keeping records and submitting reports to 
the Commission. They hope the program will save staff time and reduce 
the anxiety of timely filing.
    With regard to potential problems, one of these commenters 
expressed concern that the continued requirement that forms be 
submitted to state offices would dilute the benefits of the electronic 
filing system. See 2 U.S.C. 439, 11 CFR Part 108. This commenter also 
cited the delay in the availability of electronic filing as a source of 
frustration. Another commenter expressed concern about whether its 
current equipment would be compatible with the system, and whether the 
committee would incur significant setup costs in preparing for 
electronic filing. This commenter also asked whether technical support 
will be readily available.
    Section 2 of Public Law 104-79 waives the duplicate filing 
requirements in states that have a system for electronically accessing 
and duplicating reports filed with the Commission. The Commission 
expects that, in the future, states will make such a system available. 
Over time, this will reduce the need for filers to generate paper 
reports to send to their state filing offices. However, as with the 
requirement for the preservation of reports, section 439 is 
nondiscretionary for states that do not have an electronic access and 
duplication system. Therefore, filers in those states will be required 
to continue generating paper reports and submitting them to their state 
filing offices.
    The electronic filing system that the Commission will implement at 
the beginning of 1997 should cause very few compatibility problems. 
Files that have been created or are readable by an operating system 
compatible with Microsoft DOS 2.1 or higher, including Microsoft 
Windows, may be submitted under the new system. The Commission does not 
expect those who wish to file electronically to incur significant setup 
expenses. Validation software will be available, and the Commission 
will provide this software free of charge.
    As with any computer implementation effort, technical glitches may 
occur. However, the Commission is committed to establishing a viable 
electronic filing system, and will provide whatever technical support 
filing committees need to make the program a success.

Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory 
Flexibility Act)

    I certify that the attached final rules, if promulgated, will not 
have a significant economic impact on a substantial number of small 
entities. The basis of this certification is that no small entities are 
required to submit

[[Page 42376]]

reports electronically under the final rules.

List of Subjects in 11 CFR Part 104

    Campaign funds, Political committees and parties, Reporting and 
recordkeeping requirements.

    For the reasons set out in the preamble, subchapter A, chapter I of 
title 11 of the Code of Federal Regulations is amended as follows:

PART 104--REPORTS BY POLITICAL COMMITTEES

    1. The authority citation for part 104 continues to read as 
follows:

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


Sec. 104.17  [Reserved]

    2. Section 104.17 is added and reserved.
    3. Section 104.18 is added, to read as follows:


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

    (a) General. A political committee that files reports with the 
Commission, as provided in 11 CFR part 105, may choose to file its 
reports in an electronic format that meets the requirements of this 
section. If a committee chooses to file its reports electronically, and 
its first electronic report passes the Commission's validation program 
in accordance with paragraph (c) of this section, it must continue to 
file in an electronic format all reports covering financial activity 
for that calendar year, unless the Commission determines that 
extraordinary and unforeseeable circumstances have made it 
impracticable for the committee to continue filing electronically.
    (b) Format specifications. Reports filed electronically shall 
conform to the technical specifications described in the Federal 
Election Commission's Electronic Filing Specifications Requirements. 
The data contained in the computerized magnetic media provided to the 
Commission shall be organized in the order specified by the Electronic 
Filing Specifications Requirements.
    (c) Acceptance of reports filed in electronic format. (1) Each 
committee that submits an electronic report shall check the report 
against the Commission's validation program before it is submitted, to 
ensure that the files submitted meet the Commission's format 
specifications and can be read by the Commission's computer system. 
Each report submitted in an electronic format under this section shall 
also be checked upon receipt against the Commission's validation 
program. The Commission's validation program is available on request 
and at no charge.
    (2) A report that does not pass the validation program will not be 
accepted by the Commission and will not be considered filed. If a 
committee submits a report that does not pass the validation program, 
the Commission will notify the committee that the report has not been 
accepted.
    (d) Amended reports. If a committee files an amendment to a report 
that was filed electronically, it shall also submit the amendment in an 
electronic format. The committee shall submit a complete version of the 
report as amended, rather than just those portions of the report that 
are being amended. In addition, the amended report shall contain 
electronic flags or markings that point to the portions of the report 
that are being amended.
    (e) Signature requirements. The committee's treasurer, or any other 
person having the responsibility to file a designation, report or 
statement under this subchapter, shall verify the report in one of the 
following ways: by submitting a signed certification on paper that is 
submitted with the computerized media; or by submitting a digitized 
copy of the signed certification as a separate file in the electronic 
submission. Each verification submitted under this section shall 
certify that the person has examined the report or statement and, to 
the best of the signatory's knowledge and belief, it is true, correct 
and complete. Any verification under this section shall be treated for 
all purposes (including penalties for perjury) in the same manner as a 
verification by signature on a report submitted in a paper format.
    (f) Schedules and forms with special requirements. The following 
list of schedules, materials, and forms have special signature and 
other requirements and reports containing these documents shall 
include, in addition to providing the required data within the 
electronic report, either a paper copy submitted with the committee's 
electronic report or a digitized version submitted as a separate file 
in the electronic submission: Schedule C-1 (Loans and Lines of Credit 
From Lending Institutions), including copies of loan agreements 
required to be filed with that Schedule, Schedule E (Itemized 
Independent Expenditures), Form 5 (Report of Independent Expenditures 
Made and Contributions Received), and Form 8 (Debt Settlement Plan). 
The committee shall submit any paper materials together with the 
electronic media containing the committee's report.
    (g) Preservation of reports. For any report filed in electronic 
format under this section, the treasurer shall retain a machine-
readable copy of the report as the copy preserved under 11 CFR 
104.14(b)(2). In addition, the treasurer shall retain the original 
signed version of any documents submitted in a digitized format under 
paragraphs (e) and (f) of this section.

    Dated: August 9, 1996.
John Warren McGarry,
Vice Chairman, Federal Election Commission.
[FR Doc. 96-20804 Filed 8-14-96; 8:45 am]
BILLING CODE 6715-01-P