[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Proposed Rules]
[Pages 50708-50721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25477]



[[Page 50707]]

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Part IV





Federal Election Commission





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11 CFR Parts 102, 104, and 108



Recordkeeping and Reporting; Proposed Rule

  Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / 
Proposed Rules  

[[Page 50708]]



FEDERAL ELECTION COMMISSION

11 CFR Parts 102, 104 and 108

[Notice 1997-14]


Recordkeeping and Reporting

AGENCY: Federal Election Commission.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Federal Election Commission requests comment on proposed 
revisions to regulations that govern recordkeeping, reporting, and 
filing with State officers under the Federal Election Campaign Act of 
1971, as amended (``the Act'' or ``FECA''). The proposed revisions, 
many of which are technical in nature, would clarify and simplify 
requirements for recording, reporting, and filing reports of campaign-
related receipts and disbursements. The revisions are intended to 
address issues that have arisen since the rules were last amended. 
Please note that the draft rules which follow do not represent a final 
decision by the Commission on issues presented in this rulemaking.

DATES: Comments must be received on or before October 27, 1997. If the 
Commission receives requests to testify, it will hold a hearing on 
November 5, 1997 at 10:00 a.m. Persons wishing to testify should so 
indicate in their written comments.

ADDRESSES: Comments should be addressed to Ms. Susan E. Propper, 
Assistant General Counsel, and must be submitted in either written or 
electronic form. Written comments should be sent to the Commission's 
postal service address: Federal Election Commission, 999 E Street, 
N.W., Washington, D.C. 20463. Faxed comments should be sent to (202) 
219-3923. Commenters submitting faxed comments should also submit a 
printed copy to the Commission's postal service address to ensure 
legibility. Comments may also be sent by electronic mail to 
``[email protected]''. Commenters sending comments by electronic mail 
should include their full name, electronic mail address and postal 
service address within the text of their comments. Comments that do not 
contain the full name, electronic mail address and postal service 
address of the commenter will not be considered.

FOR FURTHER INFORMATION CONTACT: Ms. Susan E. Propper, Assistant 
General Counsel, or Ms. Teresa A. Hennessy, Attorney, 999 E Street, 
N.W., Washington, D.C. 20463, (202) 219-3690 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: The FECA's principal requirements for 
recording and reporting contributions and expenditures in connection 
with Federal elections currently appear at 11 CFR 102.9 and 104.3. The 
first rule prescribes procedures for committees that qualify as 
political committees under the Act to follow in recordkeeping. The 
second sets forth procedures for political committees to follow in 
reporting campaign-related receipts and disbursements. The procedures 
apply to authorized committees, i.e. committee(s) designated by a 
candidate to receive contributions and make expenditures on his or her 
behalf, and unauthorized committees, those not so designated by a 
candidate. 11 CFR 100.5(f).
    Although the Commission has made several changes to these sections 
in earlier rulemakings, it is now taking a comprehensive look at the 
recordkeeping and reporting requirements. Disclosure of campaign 
finance in connection with Federal elections is a major goal of the 
FECA, as recognized by the Supreme Court. See Buckley v. Valeo, 424 
U.S. 1, 67-69 (1976). Hence, the Commission is undertaking to clarify--
and where possible, to simplify--the requirements. The Commission is 
aware of the ongoing need to balance the public interest in effective 
and timely disclosure with the concerns of the regulated community 
about reporting burdens. Thus, the draft rules propose several key 
changes: reorganizing the reporting requirements by retaining the 
provisions applicable to unauthorized committees at 11 CFR 104.3 and 
moving the reporting requirements for candidates' authorized committees 
to new 11 CFR 104.17; permitting alternatives for reporting loan 
repayments; simplifying the reporting requirements for draws on a line 
of credit; and clarifying procedures for reporting disbursements paid 
by credit card(s).
    Concurrently, a review is underway of the relevant reporting forms: 
Form 3 for authorized committees and Form 3X for unauthorized 
committees. Under the proposed revisions, the rules and forms would be 
revised in a parallel manner. Draft revised Form 3 and Form 3X are 
available on request from the Commission's Public Records Branch at 999 
E Street, NW, Washington, DC 20463 (202/219-4140 or 800/424-9530).
    Lastly, the Act's requirements for filing reports with State 
officers appear at 11 CFR part 108. The regulations provide that any 
reports required under the Act are also required to be filed with the 
Secretary of State, or other State officer, of the appropriate 
State(s). The regulations identify the ``appropriate'' State(s) and set 
forth duties for State officers regarding the reports. See, e.g., 11 
CFR 108.2 and 108.6. The Commission seeks to comport these rules with 
recent amendments to the FECA, providing that these requirements do not 
apply in certain circumstances. Public Law No. 104-79, 109 Stat. 791 
(1995).
    The Commission seeks comment on the proposed regulations. It 
requests that any comments on the reporting forms be forwarded with 
comments on the proposed reporting rules. The Commission also welcomes 
comments on the recordkeeping and reporting process, in general, 
including any issues not covered by the proposed regulations. A summary 
of the proposed revisions follows.

A. Proposed 11 CFR 102.9--Accounting for Contributions and 
Expenditures

    Proposed Sec. 102.9, governing recordkeeping for contributions and 
expenditures, would redesignate current paragraphs (a)(1)-(3) as 
paragraphs (a)(2)-(4), respectively. The draft rule also would propose 
several substantive changes for procedures set forth at current 
paragraphs (a), (b) and (d).

1. Proposed Recordkeeping for Contributions

    The proposed revisions first would codify recordkeeping 
requirements for contributions of $50 or less. A committee would have 
two options for maintaining this information. It may retain the 
information specified for contributions in excess of $50 at 
redesignated paragraph (a)(2). Or, for many small contributions 
received at a fundraising event, the committee may record the name of 
the event, the date(s) contributions are received at the event, and the 
total amount of contributions received on each day of the event.
    The Act requires that a treasurer of a political committee maintain 
an account of all contributions received by or on behalf of the 
committee but does not specify how records should be kept of receipts 
under $50. 2 U.S.C. 432(c)(1). Currently, the rule elaborates that the 
treasurer may use ``any reasonable accounting procedure'' to maintain 
these records. 11 CFR 102.9(a). The Commission has suggested methods of 
recording receipts under $50 in Advisory Opinions (``AO'') 1981-48 and 
1980-99. This section would codify that guidance at new paragraph 
(a)(1).

2. Proposed Recordkeeping for Disbursements

    The draft rule would continue the current rule's definition of 
``payee''. See proposed paragraph (b)(2)(i)(A). The rule would provide 
that a ``payee'' is a

[[Page 50709]]

person who receives payment directly from the committee, or indirectly 
from an agent of the committee, in return for goods or services 
extended to the committee or its agent. To comply with the proposed 
section, a committee therefore must retain records for all 
disbursements it makes, including those by its agent, or primary payee, 
to other vendors that perform work for the committee, or secondary 
payees. As presented later, a committee similarly would be required to 
report all disbursements: payments to primary payees would be reported 
as disbursements and, under certain circumstances, payments to 
secondary payees would be reported as memo entries. See proposed 
Secs. 104.3(c)(2) and 104.17(c)(2).
    The Commission has addressed recording and reporting disbursements 
to payees in AO 1996-20, AO 1983-25 and in audits. In AO 1996-20, the 
Commission determined that the principal campaign committee (``PCC'')--
the committee designated by the candidate as his main authorized 
committee--for the re-election of a Member of Congress was permitted to 
reimburse the Member's Chief of Staff (``COS'') for his campaign-
related travel expenses. See 11 CFR 100.5(e)(1), 101.1 and 102. The 
Commission stated that the PCC must report as memo entries the COS' 
payments to vendors for the travel expenses ``* * * to achieve full 
disclosure but not inflate disbursement figures.'' See AO 1996-20, note 
3. The Commission reached a different conclusion in AO 1983-25. There, 
the Commission determined that, after a presidential PCC made direct 
payments to certain media consultants, it was not required to itemize 
payments by the consultants to other vendors which performed work for 
the PCC as long as records were maintained for the latter 
disbursements.
    The draft rule would codify the guidance of AO 1996-20 for two 
reasons. First, the reporting method referenced in this opinion would 
indicate how a committee's disbursements are actually used and, thus, 
would serve the disclosure policy underlying the Act. Relying alone on 
the recordkeeping requirements in AO 1983-25 would not as effectively 
result in such disclosure.
    Next, the two committees in the opinions are different legal 
entities under the Act. The Presidential campaign committee was a 
recipient of public funding and, therefore, was required to undergo a 
mandatory audit. 26 U.S.C. 9007 and 9038. It also was required to 
maintain records of disbursements to secondary payees. See 11 CFR 
9003.5, 9033.1(b)(7) and 9033.11. Hence, even if publicly funded 
committees were not required to report disbursements to secondary 
payees, the Commission could rely on audits to examine these 
disbursements. On the other hand, Title 2 committees, such as the PCC 
in AO 1996-20, do not receive public funding and are not required to be 
audited by statute. Compare 2 U.S.C. 438(b). Thus, the mechanism of a 
recordkeeping and reporting requirement is necessary so that the 
Commission may examine how Title 2 committees directly, and indirectly, 
use funds. The Commission welcomes comments on the proposed 
clarification.
    The draft rule would revise the recordkeeping requirements in other 
respects. The draft rule would more clearly state that an individual 
who receives an advance from a committee for his or her own travel or 
subsistence would be a ``payee''. The draft rule would raise the amount 
of the qualifying advance from $500 or less to $1,000 or less, to 
accommodate inflationary increases. See proposed paragraph 
(b)(2)(i)(B).
    The documentation requirements for disbursements also would be 
revised. The draft rule would require that if a committee makes an 
advance for travel or subsistence expenses, it must keep all expense 
account documentation related to the advance. The present rule requires 
only that the committee maintain ``the expense voucher or other expense 
account documentation'' (emphasis added). Thus, committees now may 
satisfy their recordkeeping obligations by retaining only one type of 
documentation, even if more records originally existed for a particular 
expense. The Commission proposes this change because the present rule 
may conflict with the general requirement to maintain records stated at 
11 CFR 104.14. Moreover, the Commission has discovered that an expense 
voucher may have required information that other expense account 
documentation lacks, or vice-versa. The proposed documentation 
requirement would not require committees to create new records. Rather, 
it would clarify that committees must preserve all records related to 
disbursements, consistent with Sec. 104.14.
    The draft rule specifically would address documentation 
requirements for disbursements by bank draft accounts and debit cards. 
These financial instruments are more commonly used today by committees 
and have unique characteristics. Therefore, the Commission is providing 
guidance on how to retain required information for transactions based 
on these. The Commission also would welcome comments on suitable 
documentation for these transactions. Please note that the proposed 
requirements for bank draft accounts are distinct from those for share 
draft accounts at credit unions, addressed at current paragraph 
(b)(2)(iii). The new provisions would address a current concern of 
committees and lead to more complete, useful information for committees 
and the Commission. See proposed paragraph (b)(2) and new paragraphs 
(b)(2)(iv) and (v).
    Further, the draft rule would clarify that a committee treasurer 
must comply with both the ``best efforts'' rule and the requirements of 
11 CFR 104.14. Principally, a treasurer would be required to meet the 
recordkeeping duties set forth at proposed Sec. 102.9 and, at the same 
time, to maintain bank records and other documents related to reports 
required under 11 CFR part 104. See proposed paragraph (d).
    The proposed revisions also would require that, in recording 
contributions to candidates, a committee identify the election(s) for 
which these are made. See proposed paragraph (b)(1)(iii). In addition, 
the proposed revisions would amend paragraph (b)(1)(iv) of the section 
to cross-reference the new citations for the definition of ``purpose'' 
in proposed Secs. 104.3 and 104.17. The final rules will contain 
conforming amendments to other sections of the regulations to reflect 
the revisions proposed for this section.

B. Proposed 11 CFR 104.3--Contents of Reports for Unauthorized 
Committees

1. Proposed Restructuring of Current 11 CFR 104.3

    The Commission proposes to restructure, into two sections, 11 CFR 
104.3 which governs the contents of reports political committees must 
file. Proposed 11 CFR 104.3 would state the requirements applied to all 
unauthorized committees for reporting receipts and disbursements. The 
corresponding requirements for authorized committees would appear at 
new 11 CFR 104.17. (Please note that the Commission recently repealed 
former 11 CFR 104.17 as an obsolete rule. 60 FR 56506 (November 9, 
1995.)) The purpose of the proposed restructuring is to clarify points 
of Commission policy, simplify the preparation of reports pursuant to 2 
U.S.C. 434, and facilitate committees' efforts to locate the rules that 
apply to each. The Commission welcomes comments on the proposed 
restructuring.

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2. Proposed Reporting Requirements for Unauthorized Committees

    As amended, the section would follow the organization of current 11 
CFR 104.3 except for the changes discussed below. Most of the proposed 
changes would appear at draft paragraphs (b), (c), (k) and (l) to 
address procedures for reporting receipts and disbursements, amending 
reports and reporting disbursements paid by credit card(s), 
respectively. New paragraph (a) would state the rule's scope and refer 
authorized committees to the reporting requirements at new Sec. 104.17.
a. Reporting Receipts of Unauthorized Committees
    The proposed amendments would delete the reference to traveler's 
checks in the definition of ``Cash on hand''. Under this amendment, a 
committee may hold traveler's checks only after receiving these as 
contributions, see 11 CFR 104.8, and before depositing these pursuant 
to 11 CFR 103.3(a). The proposed amendment is intended to comport with 
the Act and to address substantial problems raised by the use of 
traveler's checks for disbursements. The Act requires that, except for 
petty cash fund expenditures, a committee issue a check from an account 
at its campaign depository to make a disbursement. 2 U.S.C. 432(h). See 
also 11 CFR 102.10 and 103.3. Traveler's checks are unlike these 
checks: traveler's checks are not forwarded to a committee's campaign 
depository and are unavailable for review. Thus, at times committees 
have been unable to identify payees or the purpose of disbursements by 
traveler's checks, and the Commission's efforts to evaluate a 
committee's compliance with the Act have been frustrated. The 
Commission welcomes comment on the proposal to limit the role of 
traveler's checks in campaign finance. See redesignated paragraph 
(b)(2).
    The categories and itemizations of receipts for unauthorized 
committees would be reorganized and revised in draft paragraphs (b) (3) 
and (4). Concurrently, Form 3X would be revised to conform to the 
proposed rule. Similar provisions for authorized committees would be 
addressed in new Sec. 104.17.
    Paragraph (b)(3) would set forth the revised categories of receipts 
that must be reported on the Detailed Summary Page of Form 3X. The 
revisions would reflect the types of receipts received by unauthorized 
committees in recent years. For example, the draft rule would add two 
new categories: ``loan repayments received'' and ``refunds of 
contributions made by the reporting committee to political 
committees''. See proposed paragraphs (b)(3) (vi) and (viii). In 
addition, the Commission proposes to reduce the burden on committees by 
deleting the itemized and unitemized sub-categories for ``offsets to 
operating expenditures'' and ``other receipts''. See proposed 
paragraphs (b)(3) (vii) and (ix). The draft rule also would clarify 
that the category of ``contributions from persons'' would include 
contributions from committees that do not qualify as political 
committees under the Act, and that ``offsets to operating 
expenditures'' would refer to rebates and refunds from vendors. See 
proposed paragraphs (b)(3) (i), (ii) and (vii). Further, the draft 
paragraph would require year-to-date reporting for itemized and 
unitemized sub-categories.
    The proposed itemizations of receipts for unauthorized committees, 
which must be reported on Schedule A of Form 3X, would follow the 
revisions proposed for reporting categories of receipts, discussed 
above. Thus, the proposed rule would add an itemization for loan 
repayments received, clarify that the current itemization for 
``offsets'' refers to rebates and refunds from vendors, and add an 
itemization for refunds of contributions. See proposed paragraphs 
(b)(4) (v)-(vii).
b. Reporting Disbursements of Unauthorized Committees
    The draft rule would reorganize and revise requirements for 
reporting categories and itemizations of disbursements at proposed 
paragraphs (c) (1) and (2). The proposed revisions would appear on Form 
3X, concurrently under revision. (Similar requirements for authorized 
committees would be moved to new section 104.17.) The draft rule also 
would cross-reference new reporting requirements for disbursements paid 
by credit card found at new paragraph (l).
    The categories of disbursements, which are reported as total 
amounts on the Detailed Summary Page of Form 3X, would be revised to 
reflect contemporary disbursement practices by committees. 
Illustratively, the categories for refunds of contributions to persons 
and to political committees would replace ``offsets''. See proposed 
paragraphs (c)(1) (ix) and (x). These revisions also would correspond 
to amendments proposed for reports of receipts. To ease committees' 
reporting burdens, the draft rule would delete itemized and unitemized 
sub-categories for ``other disbursements''. See proposed paragraph 
(c)(1)(xii). The proposed amendments additionally would clarify which 
disbursements are covered by categories in the current rule for 
operating expenditures, transfers to affiliated or party committees, 
coordinated party expenditures under 11 CFR 110.7, and other 
disbursements. See proposed paragraphs (c)(1) (ii), (iii), (vi), and 
(xii). As for receipts, the proposed rule would require year-to-date 
reporting for itemized and unitemized sub-categories of disbursements.
    The revised itemizations of disbursements for unauthorized 
committees, which must be reported on Schedule B of Form 3X, would 
appear at proposed paragraph (c)(2). The amended rule would clarify 
that a committee may report a loan repayment in two ways: report the 
sum of the principal and interest as a single loan repayment, or report 
the principal as a loan repayment and the interest as an operating 
expenditure. (Committees would continue to report on Schedule C 
repayments of principal and the outstanding principal balance for each 
loan.) In the past, the Commission has instructed that each interest 
payment be reported as a separate operating expenditure. See AO 1991-9 
and AO 1986-45. Although the latter method is consistent with the Act's 
requirements, the former may be easier for reporting committees. The 
Commission seeks to ease the reporting burden on committees and 
requests comment on the proposal to permit alternative reporting 
methods for loan repayments. See proposed paragraph (c)(2)(vi).
    The Commission seeks comments on related points raised by Schedule 
D. For example, should a committee report as a payment toward a debt 
incurred for goods or services only the principal paid and report as an 
operating expenditure the finance charges paid? Or, should a committee 
report the sum of these as a debt payment? The Commission is 
considering permitting both reporting methods, and requiring that 
payments (including accrued interest) on debts owed to a committee be 
reported along similar lines.
    The revisions proposed for itemizations of disbursements generally 
would follow the revisions proposed for categories of disbursements, 
discussed above. Thus, a committee would itemize ``refunds of 
contributions'' to persons and to political committees in place of 
``offsets to contributions''. See proposed paragraphs (c)(2) (viii) and 
(ix). The proposed rule would add a requirement that, for certain 
itemized disbursements, a committee identify the election for which the 
disbursement was made. See proposed paragraphs (c)(2) (iii)-(v) and 
(vii). Where a disbursement is a

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contribution, a committee would be required to identify the election 
for which it made the contribution and, hence, the particular 
contribution limit against which the contribution must be counted, e.g. 
1998 General Election. See 2 U.S.C. 441a.
c. Additional Revisions to Section 104.3
    Significant changes are proposed at paragraphs (e), ``Reporting 
debts and obligations'', (h), ``Legal and accounting services'', (k), 
``Amending reports'', and (l), ``Credit card payments'', of the draft 
rule. With respect to paragraph (e), the provision governing loans to 
candidates would be moved to new Sec. 104.17. The proposed revisions 
also would simplify the current rule to require that, for a line of 
credit, a committee file Schedule C-1 only when it reports the receipt 
of a line of credit or a restructuring of the line. As revised, the 
rule would require a committee to report each draw on a line of credit 
only as a receipt on Schedule A.
    The Commission proposes to simplify the reporting requirements 
because it appears that committees often make numerous draws on a line 
of credit in a single day. The draws usually are made without 
restructuring the line of credit, i.e. changing the repayment terms 
such as the interest rate. The Commission therefore has questioned the 
present practice of requiring a Schedule C-1 for every routine draw. 
The Commission believes that it would be more informative to require 
that, after the initial Schedule C-1, a committee file a subsequent 
Schedule C-1 only to report a restructuring of the line. This approach 
would ease the burden on committees while protecting the public 
interest in disclosure. The Commission emphasizes that a committee 
would remain obligated to report, as with any debt or obligation, the 
outstanding balance on a line of credit on Schedule C.
    The reporting requirements would be streamlined for a committee 
that receives legal and accounting services pursuant to 11 CFR 100.7(b) 
(13) and (14). Draft paragraph (h) would delete the current requirement 
that a committee report each person providing the services. The 
Commission also is proposing to institute a $200 threshold for 
``itemizing'' receipts of these services: a committee would specify in 
a memo entry, on Schedule A, the regular employers of persons providing 
the services which have spent more than $200 for the services during 
the calendar year. For ``unitemized'' receipts of the services, or 
those from employers which have not met the $200 threshold, a committee 
instead would report as a memo entry, on Schedule A, the total of 
amounts paid by regular employers for the services and maintain all 
records of the services as described in 11 CFR 102.9(c). A memo entry 
is supplemental information about a specific transaction, and the 
dollar amount recorded in the memo entry is not included in the totals 
reported on the Detailed Summary Page for Form 3X (or Form 3). Thus, 
for an employer meeting the $200 threshold, a committee would report a 
memo entry: Employer A/Address, $50, on 11/22/96 (where Employer A had 
spent $250 for the services in 1996). For regular employers not meeting 
the threshold, a committee would report a memo entry: $500 received in 
``unitemized'' exempt legal and accounting services (for example, to 
reflect 5 employers which individually had not spent more than $200 for 
the services in 1996).
    New paragraph (k) would be added to clarify the process for 
amending reports that are filed with the Commission in hard-copy form. 
The new paragraph would present: the deadline for filing an amendment; 
optional methods for filing amendments; and a provision for identifying 
the specific changes in the amended report(s). These provisions would 
apply both to amendments prompted by a Commission notice and to those 
initiated by a committee after discovering an error, omission or change 
in information. The Commission proposes to standardize the amendment 
process to simplify a committee's reporting obligations. The proposed 
revisions also are intended to address an issue that frequently arises 
concerning amendments to longer reports as well as shorter reports, 
such as Schedule H-4 (``Joint Federal and NonFederal Activity 
Schedule''). A mechanism to quickly and clearly identify the changes on 
amended pages, or reports, submitted by a committee is necessary to 
ensure the accuracy of the Commission's database and to assist the 
review of disclosure reports. The draft rule provides one mechanism for 
ensuring that the Commission and the public are able to locate easily 
new or amended information in a report. The Commission welcomes 
suggestions as to other effective methods for achieving this result, 
and seeks comment generally on the proposed amendment process. In 
addition, the Commission notes that a committee which amends an 
electronically filed report must follow a different procedure set forth 
at 11 CFR 104.18.
    New paragraph (l) would clarify and simplify reporting obligations 
for disbursements paid by credit card. These provisions would apply to 
all disbursements subject to the requirements proposed for categories 
of disbursements, and itemized entries for the categories, discussed 
earlier. The new paragraph would define a credit card as representing a 
credit account with a depository institution or other corporation that 
is not a depository institution. See 11 CFR 103.2. For some credit 
cards, the monthly balance must be paid in full; for others, it may be 
paid in part or in full. A committee would be required to itemize on 
Schedule B each payment to a credit card company, the depository 
institution or other corporation receiving the payment, the date and 
the amount of payment. For example, for a payment that covers an entire 
monthly balance, the committee would report: ABC National Bank (VISA), 
Anytown, Any State, 12/05/96, $2,000.00. The committee also would 
include the payment in the total for the appropriate category on the 
Detailed Summary Page of Form 3X (or Form 3).
    Under the new provisions, if the disbursement is a partial payment 
of a monthly credit card balance, the committee first would report the 
information required for a full payment, as noted above, and next 
report a memo entry on Schedule B. The memo entry would report the 
creditor, the outstanding credit balance, and the corresponding date. 
In the example above, the committee would report as a memo entry: ABC 
National Bank (VISA), $1,000 balance, as of 12/05/96. It would not 
include $1,000 in the appropriate totals on the Detailed Summary Page, 
but it would report the unpaid balance as a debt under 11 CFR 
104.11(b).
    Whether paying its bill in full or in part, a committee also would 
be required to report, as a memo entry on Schedule B, each expenditure 
that is separately listed on a monthly credit card statement and that 
would be required to be itemized under proposed paragraph (c)(2). In 
the example above, the committee would report as a memo entry: $600 to 
XYZ Printing Company, Anytown, Any State, 12/01/96, by ABC National 
Bank VISA, for campaign literature. If a committee made multiple 
expenditures to a particular vendor during a single reporting period 
and each was required to be itemized, the committee would report a memo 
entry for each expenditure. Thus, a committee would itemize a 
disbursement to pay all, or part, of a credit card balance and would 
identify the itemizable, underlying expenditures that were paid by 
credit card. See new paragraphs (l) (2) and (3).
    In the Commission's experience, many committees pay for 
disbursements with credit card(s) and subsequently

[[Page 50712]]

make partial payments to the credit card company. Thus, regulations 
tailored to these transactions would disclose more information about a 
committee's disbursements as well as identify a committee's outstanding 
credit balances. The Commission welcomes comment on the proposal to 
include the new paragraph in the reporting requirements.
    Lastly, the proposed amendments would modify section 104.3 in 
several other respects. The draft rule would substitute the term 
``savings association'' for ``savings and loan institutions'' to 
reflect current regulatory practice. See 12 CFR 561.43 (Regulations 
Applicable to All Savings Associations, Office of Thrift Supervision, 
U.S. Department of Treasury). In addition, the draft provision for 
reporting ``cash on hand'' would cross-reference to 11 CFR 104.13 to 
clarify that, when a committee receives a non-liquid asset (such as a 
computer) as an in-kind contribution, it should report the contribution 
in a memo entry rather than as cash. See proposed paragraph (b)(2). 
Current paragraph (c), ``Summary of contributions and operating 
expenditures'', would be adjusted to reflect the amendments proposed 
for reporting categories of receipts and disbursements. See proposed 
paragraph (d). Finally, the proposed amendments would move current 
paragraph (f), ``Consolidated reports'', to new Sec. 104.17 as it 
relates solely to authorized committees, and add guidance for national 
party committees in proposed paragraph (g), ``Building funds''.

C. New 11 CFR 104.17--Contents of Reports for Authorized Committees

    The new rule would contain all the reporting provisions applicable 
to authorized committees of candidates. Also, Form 3 would be revised 
to reflect these provisions. New Sec. 104.17 generally would follow the 
organization of proposed Sec. 104.3, thus simplifying the reporting 
process for authorized committees. The discussion below concentrates on 
the provisions unique to authorized committees and not discussed in the 
preceding discussion of proposed Sec. 104.3.

1. Reporting Receipts of Authorized Committees

    The new rule would address reporting receipts by authorized 
committees at new paragraph (b) and would correspond to current 11 CFR 
104.3(a) (3) and (4). The categories of receipts at new paragraph 
(b)(3) would be reported as total amounts on the Detailed Summary Page 
of Form 3. The new section would specify more clearly which categories 
include the following receipts: contributions from the candidate; loans 
made, guaranteed or endorsed by the candidate; Federal matching funds 
for presidential candidates; and the new factor of contributions 
refunded by authorized committees for other Federal candidates. See new 
paragraphs (b)(3) (iii), (vi), (vii), and (ix). The draft categories 
also would provide for transfers from other committees authorized by 
the candidate, to the extent permitted by Commission regulations. See 
new paragraph (b)(3)(v) and 11 CFR 110.3(c) (4) and (5) and 
110.8(d)(2). In addition, reimbursements by any person for ``personal 
use'' of committee funds would be added to the category of ``other 
receipts''. See new paragraph (b)(3)(x). ``Personal use'' consists of 
the use of campaign funds for an obligation of any person that would 
exist irrespective of the candidate's campaign or duties as a Federal 
officeholder. Certain payments for travel or vehicle expenses may 
include both legitimate officeholder or campaign activities and 
personal business. The portion of these costs associated with personal 
activities must be reimbursed under 11 CFR 113.1(g)(1)(ii) (C) or (D).
    As drafted, the categories would continue to state that coordinated 
party expenditures, made pursuant to 11 CFR 110.7, are not 
contributions and would add that loan repayments received are included 
as ``other receipts''. See new paragraph (b)(3) (ii) and (x). To ease 
reporting burdens, the draft rule would delete the requirements for 
reporting total itemized and unitemized ``offsets to operating 
expenditures'' and ``other receipts''. See new paragraphs (b)(3) (viii) 
and (x).
    The draft rules for itemizing receipts, which must be reported on 
Schedule A of Form 3, would follow the changes proposed for categories 
of receipts. The new section also would add that an authorized 
committee specify the election for which contributions from persons and 
from political committees are made when it itemizes the contributions. 
See draft paragraphs (b)(4) (i) and (ii). In addition to the 
requirements at proposed Sec. 104.3, a committee would be required to 
itemize all loans it has received including those made to the candidate 
as the committee's agent. If any loan itemized under draft paragraph 
(b)(4)(v) represents a contribution by a lender, endorser or guarantor, 
the committee would be required to report the election for which the 
contribution was made. As drafted, the section would add a provision 
governing the itemization of contributions by the candidate, excluding 
any loans by the candidate. See new paragraph (b)(4) (iii) and (v).

2. Reporting Disbursements of Authorized Committees

    The new rule would govern reporting disbursements at new paragraph 
(c). This new paragraph would correspond to current 11 CFR 104.3(b) (2) 
and (4).
    One issue on which the Commission seeks comment concerns the 
requirement that authorized committees report the ``purpose'' of 
committee disbursements. See new paragraphs (c)(2)(i) (A) and (B). In 
particular, the Commission seeks comment on whether to require more 
information on committees' statements of ``purpose'' in the interests 
of monitoring adequately possible instances of personal use of campaign 
funds. 11 CFR 113.1(g)(1) (i) and (ii). It is intended that any new 
requirement would generate meaningful disclosure about committee 
disbursements, as intended by the Act, without significantly increasing 
committees' reporting burdens.
    The Commission's current regulations closely follow the legislative 
guidance on this point:

    It is the opinion of the Committee that the purpose requirement 
will be satisfied by a short statement or description, no more than 
one or two words in most cases, of why the money was spent. The 
particulars, i.e., the details, of the disbursement are not required 
by the statute.

H.R. Rep. No. 422, 96th Cong., 1st Sess. 18 (1979). Despite suggestions 
in comments received in the Commission's rulemaking on ``personal 
use'', 60 FR 7862 (February 9, 1995), the Commission has been reluctant 
to conclude that the purpose statement serves only to regulate personal 
use of campaign funds. These statements provide required information 
about other committee disbursements, such as a committee's 
contributions to a committee authorized by another candidate. Over the 
years, however, purpose statements often have lacked sufficient detail 
to enable the Commission to determine whether a certain disbursement 
represents a candidate's personal use of campaign funds. See Matter 
Under Review 3107. In addition, a more informative purpose statement 
may be necessary to determine whether a disbursement by an authorized 
committee for an office-holder not seeking re-election is impermissible 
personal use.
    The Commission is obligated to enforce the Act's prohibition on 
personal use of campaign funds. 2 U.S.C. 439a. Currently, the only

[[Page 50713]]

reporting provisions addressing this ban are the requirement for 
statements of purpose and the requirement to describe certain 
disbursements for travel and vehicle expenses for which the committee 
expects reimbursement. See 11 CFR 104.17(c)(2)(i) (A) and (B); 11 CFR 
113.1(g)(1)(ii) (C) and (D). Hence, the Commission requests comment on 
possible mechanisms for generating more disclosure of the purpose of 
committee disbursements without heavily burdening reporting committees.
    As drafted, the new rule would cross-reference to draft paragraph 
(l) governing disbursements paid by credit card. The categories of 
disbursements, at new paragraph (c)(1), would be reported as total 
amounts on the Detailed Summary Page of Form 3. The draft rule would 
specify which categories include the following receipts: transfers to 
other committees authorized by the candidate; repayments of loans made 
or guaranteed by the candidate; and disbursements by authorized 
committees for presidential candidates not subject to the limitations 
at 11 CFR 110.8. See new paragraphs (c)(1) (ii)-(iv). Also, the new 
rule would add a category for contributions to committees authorized by 
other candidates for Federal office. See new paragraph (c)(1)(viii). 
The new categories of refunds of contributions to persons and to 
political committees would replace the current category of ``offsets to 
contributions''. See new paragraphs (c)(1) (v) and (vi). To ease 
committees' reporting burdens, the new rule would eliminate reporting 
itemized and unitemized subcategories for ``other disbursements''. See 
draft paragraph (c)(1)(ix).
    Paragraph (c)(2) would contain the reporting requirements for 
itemizing disbursements on Schedule B of Form 3. The draft rule would 
add a requirement that a committee identify the election for which 
contributions and loans to authorized committees for other candidates 
are made. See new paragraphs (c)(2) (iii) and (v). A committee would be 
required to itemize repayments for all loans used in the campaign, 
whether these were made to the committee or to the candidate. See draft 
paragraph (c)(2)(iv).

3. Additional Revisions to New Section 104.17

    Generally, new paragraphs (d)-(l) would correspond to proposed 
paragraphs (d)-(l) of Sec. 104.3 with certain exceptions. The draft 
rule would provide for reporting loans to candidates and would move 
``Consolidated reports'' from current 11 CFR 104.3(f). See new 
paragraphs (e)(2), (3) and (g).
    The final rules will contain conforming amendments to other 
sections of the regulations to reflect changes in cross-reference 
citations, resulting from the reorganization of 11 CFR 104.3 into two 
sections and the proposed revisions included therein.

D. 11 CFR Part 108--Filing Copies of Reports and Statements With State 
Officers

    The FECA governs, inter alia, the filing of campaign finance 
reports and statements by political committees with Secretaries of 
State or equivalent State officers. Similarly, the Act specifies the 
duties of State officers to maintain the duplicate reports. 2 U.S.C. 
439. On December 28, 1995, Public Law No. 104-79, 109 Stat. 791 (1995), 
amended the FECA to provide that the filing and maintenance 
requirements no longer apply where the Commission determines that a 
State maintains a system that permits electronic access to, and 
duplication of, reports and statements filed with the Commission. 
Public Law No. 104-79, section 2 (codified at 2 U.S.C. 439(c)).
    The proposed rule would revise 11 CFR part 108 to conform to the 
statutory amendments. It also would ease reporting burdens for 
political committees and other persons as well as filing 
responsibilities for State offices. For example, an unauthorized 
committee or other person, making independent expenditures under 11 CFR 
part 109, would not be required to file a copy of campaign finance 
reports with the relevant State officer where the Commission has 
determined that the State office maintains a system that can receive 
and duplicate optically imaged reports from the Commission. Optically 
imaged reports are stored on special optical disks. See proposed 
Secs. 108.1(b)(1) and 108.3(b). These are unlike microfilm and 
microfiche. This method also is distinct from electronic filing of 
reports, which was the subject of a separate rulemaking by the 
Commission. See 61 FR 42371 (August 15, 1996). Current technology 
requires that the images be stored and maintained on specialized 
equipment at the Commission. To access and retrieve these images, 
states must have the equipment necessary to connect to the Commission's 
imaging system. Although currently no state office has the necessary 
capability, the Commission expects that states will begin to gain the 
capability in the near future.
    The proposed revisions would apply to reports filed in connection 
with primaries for presidential and vice-presidential candidates as 
well as reports by unauthorized committees in connection with a 
presidential election. See proposed Secs. 108.2 and 108.4. The 
revisions also would apply to reports filed in connection with a 
candidate's campaign for the office of Representative in, Delegate or 
Resident Commissioner to the Congress. The 1995 amendments and a 
subsequent rulemaking on the point of entry for campaign finance 
reports provide that these reports now are filed with the Commission 
rather than the Clerk of the House of Representatives. Public Law 104-
79, section 3; 61 FR 3549 and 6095 (February 1 and 16, 1996). Hence, 
the Commission includes the reports in the optical imaging process and 
is able to make the reports available to State offices.
    However, reports filed by a candidate, or authorized committee(s) 
of a candidate, to the office of Senator would not be covered. Since 
these reports are filed with the Secretary of the Senate, the 
Commission does not receive the original reports and cannot optically 
image the copies it receives. Consequently, it is unable to make the 
reports available to State offices by this method. See proposed 
Sec. 108.3.
    Lastly, the provisions governing the duties of state officers to 
maintain the duplicate reports would be modified to correspond to the 
1995 amendments. See proposed Sec. 108.6.
    The Commission seeks comment on all proposed revisions to the 
regulations concerning recordkeeping, reporting, and filing with State 
offices and on the proposed conforming amendments. The Commission also 
welcomes comment on these requirements generally, including any issues 
not covered by the proposed regulations. Please note that a subsequent 
rulemaking may cover other issues addressed by parts 102 and 104.

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

(Regulatory Flexibility Act)

    The attached proposed rules would not, if promulgated, have a 
significant economic impact on a substantial number of small entities. 
The majority of the attached proposed rules would clarify recordkeeping 
and reporting requirements under the Federal Election Campaign Act, and 
any affected entities already are required to comply with the 
Commission's requirements in this area. The remaining attached proposed 
rules for filing copies of reports with State officers would conform to 
statutory amendments and reduce any reporting burden of affected 
entities. Therefore, these rules would not have a significant

[[Page 50714]]

economic effect on a substantial number of small entities.

List of Subjects

11 CFR Part 102

    Political candidates, Reporting and recordkeeping requirements.

11 CFR Part 104

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

11 CFR Part 108

    Elections, Reporting and recordkeeping requirements.

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

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

    1. The authority citation for part 102 would continue to read as 
follows:

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

    2. Section 102.9 would be amended by redesignating paragraphs 
(a)(1) through (3) as paragraphs (a)(2) through (4), respectively, by 
adding new paragraph (a)(1), by revising newly designated paragraphs 
(a)(2) through (4), the last sentence of (b)(1) introductory text, 
(b)(1) (iii) and (iv), (b)(2) introductory text and (b)(2)(i) (A) and 
(B), by adding new (b)(2) (iv) and (v), and by revising paragraph (d) 
to read as follows:


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

* * * * *
    (a) * * *
    (1) For contributions of $50 or less, a committee may satisfy the 
requirements of this section by keeping either: the name and address of 
each contributor, the date of receipt and the amount of each 
contribution; or, if the committee received many small contributions 
under $50 each through a fundraising event, the name of the event, the 
date(s) contributions were received at the event, and the total amount 
of contributions received on each day of the event.
    (2) For contributions in excess of $50 each, the account shall 
include the name and address of the contributor, the date of receipt 
and amount of each contribution.
    (3) For contributions from any person whose contributions aggregate 
more than $200 during a calendar year, the account shall include the 
identification of the person, the date of receipt and amount of each 
contribution.
    (4) For contributions from a political committee, the account shall 
include the identification of the political committee, the date of 
receipt and amount of each contribution.
    (b)(1) * * * The account shall consist of a record of:
* * * * *
    (iii) if the disbursement is made for a candidate, the name, the 
election (e.g. primary or general) and office (including State and 
Congressional district, if any) sought by the candidate.
    (iv) For purposes of 11 CFR 102.9(b)(1), purpose has the same 
meaning given the term at 11 CFR 104.3(c)(2)(i)(A) and (B) and 
104.17(c)(2)(i)(A) and (B).
    (2) In addition to the account to be kept under paragraph (b)(1) of 
this section, the receipt(s) or invoice(s) from the payee or the 
canceled check(s) to the payee shall be obtained and kept for each 
disbursement in excess of $200, by or on behalf of, the committee, 
except that credit card transactions shall be documented in accordance 
with paragraph (b)(2)(ii) of this section, disbursements by share draft 
or check drawn on a credit union account shall be documented in 
accordance with paragraph (b)(2)(iii) of this section, bank draft 
account disbursements shall be documented in accordance with paragraph 
(b)(2)(iv) of this section, and debit card transactions shall be 
documented in accordance with paragraph (b)(2)(v) of this section.
    (i)(A) For purposes of paragraph (b)(2) of this section, payee 
means the person who provides the goods or services to the committee or 
its agent in return for payment, except that an employee of a political 
committee, or other individual, who receives an advance from the 
committee of $1,000 or less for his or her own travel and subsistence 
shall be considered the payee for that advance.
    (B) For any advance to an employee of a political committee, or 
other individual, of $1,000 or less for travel and subsistence, the 
committee shall obtain and keep all expense account documentation 
including the expense voucher and the canceled check(s) to the 
recipient of the advance.
* * * * *
    (iv) For purposes of paragraph (b)(2) of this section, a copy of 
the draft drawn on a bank draft account may be used as a duplicate 
record of the draft provided that the monthly account statement showing 
that the draft was paid by the bank also is retained.
    (v) For purposes of paragraph (b)(2) of this section, the point of 
sale receipt for a debit card transaction may be used as a duplicate 
record of the transaction provided that the monthly account statement 
reflecting the debit charge also is retained.
* * * * *
    (d) * * * The treasurer, or his or her authorized agent, also shall 
meet the requirements of 11 CFR 104.14.
* * * * *

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

    3. The authority citation for part 104 would continue to read as 
follows:

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

    4. Section 104.3 would be revised to read as follows:


Sec. 104.3  Contents of reports for political committees other than 
authorized committees (2 U.S.C. 434(b), 439a).

    (a) Scope. The requirements of this section apply to all political 
committees other than authorized committees. Authorized committees 
shall meet the requirements for reporting receipts and disbursements 
set forth at 11 CFR 104.17.
    (b) Reporting of Receipts. (1) General. Each report filed under 
this section shall disclose the total amount of receipts for the 
reporting period and for the calendar year and shall disclose the 
information set forth at paragraphs (b)(2) through (4) of this section. 
The first report filed by a committee shall also include all amounts 
received prior to becoming a political committee under 11 CFR 100.5, 
even if these amounts were not received during the current reporting 
period.
    (2) Cash on hand. The amount of cash on hand at the beginning of 
the reporting period, including: currency; balance on deposit in banks, 
savings associations and other depository institutions; certificates of 
deposit, treasury bills and any other committee investments valued at 
cost. Non-liquid assets on hand, if received as in-kind contributions, 
should be reported in accordance with 11 CFR 104.13.
    (3) Categories of receipts. Each report shall disclose the total 
amount of receipts received during the reporting period and during the 
calendar year for each of the following categories:
    (i) Contributions from persons other than political committees, 
including individuals and committees that do not qualify as political 
committees under the Act;
    (A) Itemized contributions;
    (B) Unitemized contributions;
    (ii) Contributions from political committees;

[[Page 50715]]

    (A) Party committees;
    (B) Authorized committees;
    (C) Unauthorized committees other than party committees;
    (iii) Total contributions (add contributions from persons to 
contributions from political committees);
    (iv) Transfers from affiliated committees and, where the reporting 
committee is a political party committee, transfers from other party 
committees of the same party, regardless of whether the committees are 
affiliated;
    (v) Loans received;
    (vi) Loan repayments received;
    (vii) Offsets to operating expenditures, such as vendor refunds and 
rebates; (viii) Refunds of contributions made by the reporting 
committee to political committees;
    (ix) Other receipts (such as dividends and interest);
    (x) The total sum of all receipts.
    (4) Itemization of receipts. The identification (as defined at 11 
CFR 100.12) of each contributor and the aggregate year-to-date total 
for the contributor in each of the following categories shall be 
reported.
    (i) Each person other than a political committee, including 
individuals and committees which do not qualify as political committees 
under the Act, who makes a contribution to the reporting committee 
during the reporting period, whose contribution(s) aggregate in excess 
of $200 per calendar year, together with the date of receipt and amount 
of the contribution(s), except that the reporting committee may elect 
to report this information for contributors of lesser amount(s) on a 
separate schedule;
    (ii) All political committees which make contributions to the 
reporting committee during the reporting period, together with the date 
of receipt and amount of the contribution(s);
    (iii) Each affiliated political committee which transfers funds to 
the reporting committee during the reporting period and, where the 
reporting committee is a political party committee, each transfer of 
funds to the reporting committee from another party committee of the 
same party regardless of whether the committees are affiliated, 
together with the date and amount of the transfer;
    (iv) Each person who makes a loan to the reporting committee during 
the reporting period, together with the identification of any endorser 
or guarantor of the loan, the date the loan was made, and the amount or 
value of the loan;
    (v) Each person who makes a loan repayment to the reporting 
committee during the reporting period, together with the date and 
amount of the repayment;
    (vi) Each person who provides an offset to operating expenditures, 
such as vendor rebates and refunds, to the reporting committee in an 
aggregate amount in excess of $200 within the calendar year, together 
with the date and amount of the offset;
    (vii) Each political committee, including authorized committees, 
which refunds during the reporting period a contribution made by the 
reporting committee, together with the date of receipt and amount of 
the refund; and
    (viii) Each person who provides any dividend, interest, or other 
receipt to the reporting committee, in an aggregate amount in excess of 
$200 within the calendar year, together with the date and amount of the 
receipt.
    (c) Reporting of Disbursements. Each report filed under this 
section shall disclose the total amount of all disbursements for the 
reporting period and for the calendar year and shall disclose the 
information set forth at paragraphs (c)(1) and (2) of this section. If 
a committee has paid any disbursements by credit card, the committee 
shall report the disbursements in accordance with paragraph (l) of this 
section. The first report filed by a committee shall also include all 
amounts disbursed prior to becoming a political committee under 11 CFR 
100.5, even if these amounts were not disbursed during the current 
reporting period.
    (1) Categories of disbursements. Each report shall disclose the 
total amount of disbursements made during the reporting period and 
during the calendar year in each of the following categories:
    (i) Shared Federal and nonfederal operating expenditures;
    (A) Federal share;
    (B) Nonfederal share;
    (ii) Other Federal operating expenditures;
    (A) Itemized expenditures;
    (B) Unitemized expenditures;
    (C) Total Federal operating expenditures;
    (iii) Transfers to affiliated political committees and, where the 
reporting committee is a political party committee, transfers to other 
party committees of the same party, regardless of whether the 
committees are affiliated;
    (iv) Contributions to political committees including authorized 
committees and unauthorized committees, such as party committees;
    (v) Independent expenditures made (2 U.S.C. 434(b)(4)(H)(iii));
    (vi) Coordinated party expenditures made (2 U.S.C. 441a(d));
    (vii) Loan repayments made;
    (viii) Loans made by the reporting committee;
    (ix) Refunds of contributions to persons, including individuals, 
other than political committees;
    (A) Itemized refunds;
    (B) Unitemized refunds;
    (x) Refunds of contributions to political committees;
    (A) Party committees;
    (B) Authorized committees;
    (C) Unauthorized committees other than party committees;
    (xi) Total contribution refunds (add contribution refunds to 
persons and contribution refunds to political committees);
    (xii) Other disbursements, including any disbursements to 
nonfederal candidate committees;
    (xiii) Total disbursements;
    (xiv) Total Federal disbursements.
    (2) Itemization of disbursements. Each report shall disclose the 
full name and address of each person in each of the following 
categories, as well as the information required by each category. For 
each disbursement governed by paragraphs (c)(2)(i) or (x) of this 
section, the report shall disclose this information for each vendor or 
other person to whom a disbursement is made directly by the committee, 
and shall contain a memo entry for each vendor or other person to whom 
a disbursement is made by an agent of the committee.
    (i) Each person to whom an expenditure in an aggregate amount or 
value in excess of $200 within the calendar year is made by the 
reporting committee to meet the committee's operating expenses, 
together with the date, amount, and purpose of the operating 
expenditure;
    (A) As used in paragraph (c)(2) of this section, purpose means a 
brief statement or description of why the disbursement was made.
    (B) Examples of statements or descriptions which adequately 
describe the purpose of a disbursement include the following: dinner 
expenses, media, salary, polling, travel, party fees, phone banks, 
travel expenses, travel expense reimbursement, and catering costs. 
However, statements or descriptions such as advance, election day 
expenses, other expenses, expenses, expense reimbursement, 
miscellaneous, outside services, get-out-the-vote and voter 
registration would not meet the requirements of paragraph (c)(2) of 
this section for reporting the purpose of an expenditure.
    (ii) Each affiliated political committee to which a transfer is 
made by the reporting committee during the reporting period and, where 
the

[[Page 50716]]

reporting committee is a political party committee, each transfer of 
funds by the reporting committee to another party committee of the same 
party regardless of whether the committees are affiliated, together 
with the date and amount of the transfer;
    (iii) Each political committee, which has received a contribution 
from the reporting committee during the reporting period, together with 
the date and amount of the contribution and, for contributions to 
authorized committees, the candidate's name, the election (e.g. primary 
or general) and office sought (including State or Congressional 
district, where applicable);
    (iv) (A) Each person who receives any disbursement during the 
reporting period in an aggregate amount or value in excess of $200 
within the calendar year in connection with an independent expenditure 
by the reporting committee, together with the date, amount, and purpose 
of the independent expenditure(s);
    (B) For each independent expenditure reported, the committee must 
also provide a statement which indicates whether the independent 
expenditure is in support of, or in opposition to, a particular 
candidate, as well as the name of the candidate, the election and 
office sought by the candidate (including State and Congressional 
district, where applicable), and a certification, under penalty of 
perjury, as to whether the independent expenditure is made in 
cooperation, consultation or concert with, or at the request or 
suggestion of, any candidate or any authorized committee or its agent;
    (C) The information required by paragraph (c)(2)(iv)(A) and (B) of 
this section shall be reported on Schedule E as part of a report 
covering the reporting period in which the aggregate disbursements for 
any independent expenditure to any person exceed $200 per calendar 
year. Schedule E shall also include the total of all such expenditures 
of $200 or less made during the reporting period.
    (v) Each person who receives any expenditure from the reporting 
committee during the reporting period in connection with an expenditure 
under 11 CFR 110.7 (2 U.S.C. 441a(d)), together with the date, amount, 
and purpose of the expenditure as well as the name of, and the election 
and office sought by (including State and Congressional district, where 
applicable), the candidate on whose behalf the expenditure is made;
    (vi) Each person who receives a loan repayment from the reporting 
committee during the reporting period, together with the date and 
amount of repayment;
    (A) For each loan repayment, the committee shall either report the 
principal and the interest as separate disbursements, or, it shall 
report the sum of these as a single disbursement. If the committee 
applies the former method, the principal shall be reported on Schedules 
B and C as a loan repayment and the interest shall be reported on 
Schedule B as an operating expenditure. If the committee applies the 
latter method, the sum of the principal and the interest shall be 
reported on Schedule B as a loan repayment and only the principal shall 
be reported on Schedule C;
    (B) The committee shall use one reporting method for the duration 
of a loan;
    (vii) Each person who has received a loan from the reporting 
committee during the reporting period, together with the date and 
amount or value of the loan, and for any authorized committee that has 
received a loan, the candidate's name, the election and office sought 
(including State or Congressional district, where applicable);
    (viii) Each person, other than a political committee, who receives 
a contribution refund from the reporting committee during the reporting 
period where the receipt of the contribution was reported under 
paragraph (b)(4)(i) of this section, together with the date and amount 
of the refund;
    (ix) Each political committee which receives a contribution refund 
from the reporting committee during the reporting period where the 
receipt of the contribution was reported under paragraph (b)(4)(ii) of 
this section, together with the date and amount of the refund; and
    (x) Each person, including nonfederal candidate committees, who has 
received any disbursement during the reporting period not otherwise 
disclosed under paragraph (c)(2) of this section, to whom the aggregate 
amount or value of disbursements made by the reporting committee 
exceeds $200 within the calendar year, together with the date, amount, 
and purpose of the disbursement(s).
    (d) Summary of contributions and operating expenditures. Each 
report filed under this section shall disclose for both the reporting 
period and the calendar year:
    (1)(i) The total contributions to the reporting committee;
    (ii) The total of contribution refunds;
    (iii) The net contributions (subtract total of contribution refunds 
from total contributions);
    (2)(i) The reporting committee's total Federal operating 
expenditures;
    (ii) The total offsets to operating expenditures; and
    (iii) The net Federal operating expenditures (subtract total 
offsets from total Federal operating expenditures).
    (e) Reporting debts and obligations. Each report filed under this 
section shall, on Schedule C or D, as appropriate, disclose the amount 
and nature of outstanding debts and obligations owed by or to the 
reporting committee. Where these debts and obligations are settled for 
less than their reported amount or value, each report filed under this 
section shall contain a statement as to the circumstances and 
conditions under which the debts or obligations were extinguished and 
the amount paid. See 11 CFR 116.7.
    (1) In addition, when a committee obtains a loan or a line of 
credit from a lending institution as described in 11 CFR 100.7(b)(11) 
and 100.8(b)(12), it shall disclose in the next due report the 
following information on Schedule C-1:
    (i) The date and amount of the loan or line of credit;
    (ii) The interest rate and repayment schedule of the loan or line 
of credit;
    (iii) The types and value of traditional collateral or other 
sources of repayment that secure the loan or the line of credit, and 
whether that security interest is perfected;
    (iv) An explanation of the basis upon which the loan was made or 
the line of credit established, if not made on the basis of either 
traditional collateral or other sources of repayment described in 11 
CFR 100.7(b)(11)(i) (A) and (B) and 100.8(b)(12)(i) (A) and (B); and
    (v) A certification from the lending institution that the 
borrower's responses to paragraphs (e)(1) (i) through (iv) of this 
section are accurate, to the best of the lending institution's 
knowledge; that the loan was made or the line of credit established on 
terms and conditions (including interest rate) no more favorable at the 
time than those imposed for similar extensions of credit to other 
borrowers of comparable credit worthiness; and that the lending 
institution is aware of the requirement that a loan or line of credit 
must be made on a basis which assures repayment and that the lending 
institution has complied with Commission regulations at 11 CFR 
100.7(b)(11) and 100.8(b)(12).
    (2) The committee shall submit a copy of the loan or line of credit 
agreement which describes the terms and conditions of the loan or line 
of credit when it files Schedule C-1.
    (3) The committee shall file with the next due report a Schedule C-
1 each

[[Page 50717]]

time a loan or a line of credit is restructured to change the terms of 
the repayment.
    (4) The committee shall report a receipt of funds in the next due 
report, on Schedule A, each time it makes a draw on a line of credit.
    (f) Use of pseudonyms. (1) To determine whether the names and 
addresses of its contributors are being used in violation of 11 CFR 
104.15 to solicit contributions or for commercial purposes, a committee 
may submit up to ten (10) pseudonyms on each report filed under this 
section.
    (2) For purposes of this section, a pseudonym is a wholly 
fictitious name which does not represent the name of an actual 
contributor to a committee.
    (3) If a committee uses pseudonyms it shall subtract the total 
dollar amount of the fictitious contributions from the total amount 
listed on line 11(a)(ii) of the Detailed Summary page, ``Contributions 
from Individuals/Persons, Unitemized''. Thus the committee will, for 
this purpose only, be overstating the amount of itemized contributions 
received and understating the amount of unitemized contributions 
received.
    (4) No committee which files reports under this section shall 
attribute more than $5,000 in contributions to the same pseudonym in 
any calendar year.
    (5) A committee using pseudonyms shall send a list of the 
pseudonyms under separate cover directly to the Reports Analysis 
Division, Federal Election Commission, 999 E Street, N.W., Washington, 
DC 20463, on or before the date on which any report containing such 
pseudonyms is filed with the Secretary of the Senate or the Commission. 
The Commission shall maintain the list, but shall exclude it from the 
public record. A committee shall not send any list of pseudonyms to the 
Secretary of the Senate or to any Secretary of State or equivalent 
State officer.
    (6) A committee shall not use pseudonyms for the purpose of 
circumventing the reporting requirements or the limitations and 
prohibitions of the Act.
    (g) Building funds. Gifts, subscriptions, loans, advances, deposits 
of money or anything of value made to defray costs of construction or 
purchase of office facilities received by a political committee in 
accordance with 11 CFR 100.7(b)(12) shall be reported as a memo entry 
on Schedule A. National party committees shall report building fund 
receipts and disbursements in accordance with 11 CFR 104.8(f) and 
104.9(d).
    (h) Legal and accounting services. A committee which receives legal 
or accounting services pursuant to 11 CFR 100.7(b) (13) and (14) during 
the reporting period shall report the services in accordance with 
paragraphs (i) (1) or (2) of this section.
    (1) If the regular employer of person(s) who provide the services 
has paid in excess of $200 for the services during the calendar year, 
the committee shall report as a memo entry, on Schedule A, the amounts 
paid for the services by the regular employer together with the date(s) 
the services were performed.
    (2) For each regular employer who has paid no more than $200 for 
the services during the calendar year, the committee shall report as a 
memo entry, on Schedule A, the sum of the amount(s) paid by each 
regular employer of person(s) who provide the services. The committee 
shall preserve all records of these services, for the period required 
by 11 CFR 102.9(c), to reflect the name of each regular employer, the 
amounts paid by each, and the date(s) the services were performed.
    (i) Cumulative reports. The reports required to be filed under 11 
CFR 104.5 shall be cumulative for the calendar year to which they 
relate, but if there has been no change in a category reported in a 
previous report during that year, only the amount thereof need be 
carried forward.
    (j) Earmarked contributions. Earmarked contributions shall be 
reported in accordance with 11 CFR 110.6. See also 11 CFR 102.8(c).
    (k) Amending reports. A committee shall change or correct a report 
previously filed under this section, no later than the next due report, 
after the committee discovers an error, omission or change in the 
information submitted in the report. A committee may submit only those 
pages that have been changed or corrected, or it may refile the entire, 
amended report. The committee shall identify the changes, either in a 
cover letter or on the amended pages or report, by specifying the lines 
on the Schedule(s) or Form(s) that have been amended.
    (l) Credit card payments. (1) Where a committee has paid, by credit 
card, any disbursement(s) subject to paragraphs (c) (1) and (2) of this 
section, the committee shall report these disbursements in accordance 
with this paragraph. For the purposes of this section, a credit card 
represents a credit account with a depository institution (see 11 CFR 
103.2) or other corporation that is not a depository institution. A 
credit account may permit the committee to make a partial payment of 
each monthly balance or may require the committee to pay each monthly 
balance in full.
    (2) The reporting committee shall itemize on Schedule B each 
payment to a credit card issuer by specifying the depository 
institution or other corporation to which payment was made, the date 
and amount of payment. Where the committee has made a partial payment 
of a monthly balance, the committee shall report a memo entry for the 
outstanding credit balance on Schedule B and report the outstanding 
balance as a debt to the extent required by 11 CFR 104.11(b).
    (3) Any disbursement reflected on a monthly account statement for a 
credit card, that otherwise is required to be itemized by paragraph 
(c)(2) of this section, shall be reported as a memo entry on Schedule B 
in addition to the information required under paragraph (l)(2) of this 
section.
    5. New Sec. 104.17 would be added to read as follows:


Sec. 104.17  Contents of reports for authorized committees (2 U.S.C. 
434(b), 439a).

    (a) Scope. The requirements of this section apply to all authorized 
committees of candidates for Federal office. All other political 
committees shall meet the requirements for reporting receipts and 
disbursements set forth at 11 CFR 104.3.
    (b) Reporting of Receipts. (1) General. Each report filed under 
this section shall disclose the total amount of receipts for the 
reporting period and for the calendar year and shall disclose the 
information set forth at paragraphs (b)(2) through (4) of this section. 
The first report filed by a committee shall also include all amounts 
received prior to becoming a political committee under 11 CFR 100.5, 
even if these amounts were not received during the current reporting 
period.
    (2) Cash on hand. The amount of cash on hand at the beginning of 
the reporting period, including: currency; balance on deposit in banks, 
savings associations and other depository institutions; certificates of 
deposit, treasury bills and any other committee investments valued at 
cost. Non-liquid assets on hand, if received as in-kind contributions, 
should be reported in accordance with 11 CFR 104.13.
    (3) Categories of receipts. Each report shall disclose the total 
amount of receipts received during the reporting period and during the 
calendar year for each of the following categories:
    (i) Contributions from persons other than political committees, 
including individuals and committees that do not qualify as political 
committees under the Act, but excluding the candidate

[[Page 50718]]

who authorized the reporting committee;
    (A) Itemized contributions;
    (B) Unitemized contributions;
    (ii) Contributions from political committees;
    (A) Party committees, except that expenditures made under 11 CFR 
110.7 (2 U.S.C. 441a(d)) by a party committee shall not be reported as 
contributions by the authorized committee on whose behalf they are 
made;
    (B) Authorized committees of other candidates;
    (C) Unauthorized committees other than party committees;
    (iii) Contributions from the candidate, excluding loans which are 
reported under paragraph (b)(3)(vi)(A) of this section;
    (iv) Total contributions (add contributions from persons, political 
committees and the candidate);
    (v) Transfers from other committee(s) authorized by the candidate, 
regardless of amount;
    (vi) Loans received;
    (A) Loans made, guaranteed, or endorsed by the candidate to his or 
her authorized committee;
    (B) All other loans to the committee;
    (C) Total loans;
    (vii) For authorized committee(s) of Presidential candidates, 
Federal funds received under chapters 95 and 96 of the Internal Revenue 
Code of 1954 (Title 26, United States Code);
    (viii) Offsets to operating expenditures, such as vendor refunds 
and rebates;
    (ix) Refunds of contributions made by the reporting committee to 
committees authorized by other candidates for Federal office and to 
other political committees;
    (x) Other receipts (such as dividends, interest, loan repayments 
and reimbursements received pursuant to 11 CFR 113.1(g));
    (xi) The total sum of all receipts.
    (4) Itemization of receipts. The identification (as defined at 11 
CFR 100.12) of each contributor and the aggregate year-to-date total 
for the contributor in each of the following categories shall be 
reported.
    (i) Each person other than a political committee, including 
individuals and committees that do not qualify as political committees 
under the Act but excluding the candidate who authorized the reporting 
committee, who makes a contribution to the committee during the 
reporting period, whose contribution(s) aggregate in excess of $200 per 
calendar year, together with the date of receipt, the amount of the 
contribution(s) and the election(s) (e.g. primary or general) for which 
each contribution is made, except that the committee may elect to 
report this information for contributors of lesser amount(s) on a 
separate schedule;
    (ii) All political committees which make contributions to the 
reporting committee during the reporting period, together with the date 
of receipt, amount of the contribution and the election(s) for which 
each contribution is made;
    (iii) Each contribution by the candidate to the reporting committee 
during the reporting period, together with the date of receipt and 
amount of the contribution;
    (iv) Each committee authorized by the candidate which transfers 
funds to the reporting committee during the reporting period, together 
with the date and amount of the transfer;
    (v) Each person who makes a loan during the reporting period to the 
reporting committee or to the candidate acting as an agent of the 
committee, together with the identification of any endorser or 
guarantor of the loan, the date the loan was made, the amount or value 
of the loan, and, where applicable, the election(s) for which the loan 
was made;
    (vi) Each person who makes a loan repayment to the reporting 
committee during the reporting period, together with the date and 
amount of the repayment;
    (vii) Each person who provides an offset to operating expenditures, 
such as vendor rebates and refunds, to the reporting committee, in an 
aggregate amount in excess of $200 within the calendar year, together 
with the date and amount of the offset;
    (viii) Each authorized committee for other candidates for Federal 
office and any other political committee which, during the reporting 
period, refunds a contribution made by the reporting committee, 
together with the date of receipt and amount of the refund; and
    (ix) Each person who provides any dividend, interest, reimbursement 
received pursuant to 11 CFR 113.1(g) or other receipt to the reporting 
committee, in an aggregate amount in excess of $200 within the calendar 
year, together with the date and amount of the receipt.
    (c) Reporting of Disbursements. Each report filed under this 
section shall disclose the total amount of disbursements for the 
reporting period and for the calendar year and shall disclose the 
information set forth at paragraph (c)(1) and (2) of this section. If a 
committee has paid any disbursements by credit card, the committee 
shall report these in accordance with paragraph (l) of this section. 
The first report filed by a committee shall also include all amounts 
disbursed prior to becoming a political committee under 11 CFR 100.5, 
even if these amounts were not disbursed during the current reporting 
period.
    (1) Categories of disbursements. Each report shall disclose the 
total amount of disbursements made during the reporting period and 
during the calendar year in each of the following categories:
    (i) Operating expenditures;
    (A) Itemized expenditures;
    (B) Unitemized expenditures;
    (C) Total operating expenditures;
    (ii) Transfers to other committees authorized by the candidate;
    (iii) Loan repayments made;
    (A) Repayment of loans made by or guaranteed by the candidate;
    (B) Repayment of all other loans;
    (C) Total loan repayments;
    (iv) For an authorized committee of a candidate for the office of 
President, disbursements not subject to the limitations of 11 CFR 110.8 
(2 U.S.C. 441a(b));
    (v) Refunds of contributions to persons, including individuals but 
excluding the candidate and political committees;
    (A) Itemized refunds;
    (B) Unitemized refunds;
    (vi) Refunds of contributions to political committees;
    (A) Party committees;
    (B) Authorized committees for other candidates for Federal office;
    (C) Unauthorized committees other than party committees;
    (vii) Total contribution refunds (add contribution refunds to 
persons and contribution refunds to political committees);
    (viii) Contributions to committees authorized by other candidates 
for Federal office and to other political committees;
    (ix) Other disbursements, including any disbursements to nonfederal 
candidate committees;
    (x) Total disbursements.
    (2) Itemization of disbursements. Each report shall disclose the 
full name and address of each person in each of the following 
categories, as well as the information required by each category, 
whether the disbursement was made by the reporting committee or the 
candidate acting as its agent. For each disbursement governed by 
paragraphs (c)(2)(i) or (viii) of this section, the report shall 
disclose this information for each vendor or other person to whom a 
disbursement is made directly by the committee, and shall contain a 
memo entry for each vendor or other person to whom a disbursement is 
made by an agent of the committee.

[[Page 50719]]

    (i) Each person to whom an expenditure in an aggregate amount or 
value in excess of $200 within the calendar year is made by the 
reporting committee to meet the committee's operating expenses, 
together with the date, amount, and purpose of the operating 
expenditure;
    (A) As used in paragraph (c)(2) of this section, purpose means a 
brief statement or description of why the disbursement was made.
    (B) Examples of statements or descriptions which adequately 
describe the purpose of a disbursement include the following: dinner 
expenses, media, salary, polling, travel, party fees, phone banks, 
travel expenses, travel expense reimbursement, and catering costs. 
However, statements or descriptions such as advance, election day 
expenses, other expenses, expenses, expense reimbursement, 
miscellaneous, outside services, get-out-the-vote and voter 
registration would not meet the requirements of paragraph (c)(2) of 
this section for reporting the purpose of an expenditure.
    (C) In addition to reporting the purpose described in paragraph 
(c)(2)(i) (A) and (B) of this section, whenever the reporting committee 
itemizes a disbursement that is partially or entirely a personal use 
for which reimbursement is required under 11 CFR 113.1(g)(1)(ii) (C) or 
(D), it shall provide a brief explanation of the activity for which 
reimbursement is required.
    (ii) Each committee authorized by the same candidate to which a 
transfer is made by the reporting committee during the reporting 
period, together with the date and amount of the transfer;
    (iii) Each authorized committee for other candidates for Federal 
office and any other political committee which has received a 
contribution from the reporting committee during the reporting period, 
together with the date and amount of the contribution and, for any 
authorized committee that has received a contribution, the candidate's 
name, the election (e.g. primary or general) and office sought 
(including State or Congressional district, where applicable);
    (iv) Each person who receives a loan repayment from the reporting 
committee during the reporting period, together with the date and 
amount of the loan repayment;
    (A) All loan repayments from the reporting committee;
    (B) All loan repayments from the candidate, if the proceeds of the 
loan were used in connection with the candidate's campaign;
    (C) For each loan repayment, the committee shall either report the 
principal and the interest as separate disbursements, or, it shall 
report the sum of these as a single disbursement. If the committee 
applies the former method, the principal shall be reported on Schedules 
B and C as a loan repayment and the interest shall be reported on 
Schedule B as an operating expenditure. If the committee applies the 
latter method, the sum of the principal and the interest shall be 
reported on Schedule B as a loan repayment and only the principal shall 
be reported on Schedule C;
    (D) The committee shall use one reporting method for the duration 
of a loan;
    (v) Each person who has received a loan from the reporting 
committee during the reporting period, together with the date and 
amount or value of the loan, and for any authorized committee that has 
received a loan, the candidate's name, the election and office sought 
(including State or Congressional district, where applicable);
    (vi) Each person who receives a contribution refund from the 
reporting committee during the reporting period where the receipt of 
the contribution was reported under paragraph (b)(4)(i) of this 
section, together with the date and amount of the refund;
    (vii) Each political committee which receives a contribution refund 
from the reporting committee during the reporting period where the 
receipt of the contribution was reported under paragraph (b)(4)(ii) of 
this section, together with the date and amount of the refund; and
    (viii) Each person, including nonfederal candidate committees, who 
has received any disbursement during the reporting period not otherwise 
disclosed under paragraph (c)(2) of this section, to whom the aggregate 
amount or value of disbursements made by the reporting committee 
exceeds $200 within the calendar year, together with the date, amount, 
and purpose of the disbursement(s).
    (d) Summary of contributions and operating expenditures. Each 
report filed under this section shall disclose for both the reporting 
period and the calendar year:
    (1)(i) The total contributions to the reporting committee;
    (ii) The total of contribution refunds;
    (iii) The net contributions (subtract total of contribution refunds 
from total contributions);
    (2) (i) The reporting committee's total Federal operating 
expenditures;
    (ii) The total offsets to operating expenditures; and
    (iii) The net Federal operating expenditures (subtract total 
offsets from total Federal operating expenditures).
    (e) Reporting debts and obligations. (1) Each report filed under 
this section shall, on Schedule C or D, as appropriate, disclose the 
amount and nature of outstanding debts and obligations owed by or to 
the reporting committee. Where these debts and obligations are settled 
for less than their reported amount or value, each report filed under 
this section shall contain a statement as to the circumstances and 
conditions under which the debts or obligations were extinguished and 
the amount paid. See 11 CFR 116.7.
    (2) A loan obtained by an individual prior to becoming a candidate 
for use in connection with that individual's campaign shall be reported 
as an outstanding loan owed to the lender by the candidate's principal 
campaign committee, if the loan is outstanding at the time the 
individual becomes a candidate.
    (3) When a candidate or a committee obtains a loan or a line of 
credit from a lending institution as described in 11 CFR 100.7(b)(11) 
and 100.8(b)(12), it shall disclose in the next due report the 
following information on Schedule C-1 or C-P-1:
    (i) The date and amount of the loan or line of credit;
    (ii) The interest rate and repayment schedule of the loan or line 
of credit;
    (iii) The types and value of traditional collateral or other 
sources of repayment that secure the loan or the line of credit, and 
whether that security interest is perfected;
    (iv) An explanation of the basis upon which the loan was made or 
the line of credit established, if not made on the basis of either 
traditional collateral or other sources of repayment described in 11 
CFR 100.7(b)(11)(i) (A) and (B) and 100.8(b)(12)(i) (A) and (B); and
    (v) A certification from the lending institution that the 
borrower's responses to paragraphs (e)(1)(i) through (iv) of this 
section are accurate, to the best of the lending institution's 
knowledge; that the loan was made or the line of credit established on 
terms and conditions (including interest rate) no more favorable at the 
time than those imposed for similar extensions of credit to other 
borrowers of comparable credit worthiness; and that the lending 
institution is aware of the requirement that a loan or line of credit 
must be made on a basis which assures repayment and that the lending 
institution has complied with Commission regulations at 11 CFR 
100.7(b)(11) and 100.8(b)(12).

[[Page 50720]]

    (4) The committee shall submit a copy of the loan or line of credit 
agreement which describes the terms and conditions of the loan or line 
of credit when it files Schedule C-1 or C-P-1.
    (5) The committee shall file with the next due report a Schedule C-
1 or C-P-1 each time a loan or a line of credit is restructured to 
change the terms of the repayment.
    (6) The committee shall report a receipt of funds in the next due 
report, on Schedule A, each time it makes a draw on a line of credit.
    (f) Use of pseudonyms. (1) To determine whether the names and 
addresses of its contributors are being used in violation of 11 CFR 
104.15 to solicit contributions or for commercial purposes, a committee 
may submit up to ten (10) pseudonyms on each report filed under this 
section.
    (2) For purposes of this section, a pseudonym is a wholly 
fictitious name which does not represent the name of an actual 
contributor to a committee.
    (3) If a committee uses pseudonyms it shall subtract the total 
dollar amount of the fictitious contributions from the total amount 
listed on line 11(a)(ii) of the Detailed Summary page, ``Contributions 
from Individuals/Persons, Unitemized''. Thus the committee will, for 
this purpose only, be overstating the amount received and understating 
the amount of unitemized contributions received.
    (4) No committee which files reports under this section shall 
attribute more than $5,000 in contributions to the same pseudonym in 
any calendar year.
    (5) A committee using pseudonyms shall send a list of the 
pseudonyms under separate cover directly to the Reports Analysis 
Division, Federal Election Commission, 999 E Street, N.W., Washington, 
DC 20463, on or before the date on which any report containing such 
pseudonyms is filed with the Secretary of the Senate or the Commission. 
The Commission shall maintain the list, but shall exclude it from the 
public record. A committee shall not send any list of pseudonyms to the 
Secretary of the Senate or to any Secretary of State or equivalent 
State officer.
    (6) A committee shall not use pseudonyms for the purpose of 
circumventing the reporting requirements or the limitations and 
prohibitions of the Act.
    (g) Consolidated reports. Each principal campaign committee shall 
consolidate in each report those reports required to be filed with it. 
These consolidated reports shall include reports submitted to it by any 
authorized committees and the principal campaign committee's own 
report. The consolidation shall be made on FEC Form 3-Z and shall be 
submitted with the reports of the principal campaign committee and with 
the reports, or applicable portions thereof, of the committees shown on 
the consolidation.
    (h) Legal and accounting services. A committee which receives legal 
or accounting services pursuant to 11 CFR 100.7(b)(14) during the 
reporting period shall report the services in accordance with 
paragraphs (i) (1) or (2) of this section.
    (1) If the regular employer of person(s) who provide the services 
has paid in excess of $200 for the services during the calendar year, 
the committee shall report as a memo entry, on Schedule A, the amounts 
paid for the services by the regular employer together with the date(s) 
the services were performed.
    (2) For each regular employer who has paid no more than $200 for 
the services during the calendar year, the committee shall report as a 
memo entry, on Schedule A, the sum of the amount(s) paid by each 
regular employer of person(s) who provide the services. The committee 
shall preserve all records of these services, for the period required 
by 11 CFR 102.9(c), to reflect the name of each regular employer, the 
amounts paid by each, and the date(s) the services were performed.
    (i) Cumulative reports. The reports required to be filed under 11 
CFR 104.5 shall be cumulative for the calendar year to which they 
relate, but if there has been no change in a category reported in a 
previous report during that year, only the amount thereof need be 
carried forward.
    (j) Earmarked contributions. Earmarked contributions shall be 
reported in accordance with 11 CFR 110.6. See also 11 CFR 102.8(c).
    (k) Amending reports. A committee shall change or correct a report 
previously filed under this section, no later than the next due report, 
after it discovers an error, omission or change in the information 
submitted in the report. A committee may submit only those pages that 
have been changed or corrected, or it may refile the entire, amended 
report. The committee shall identify the changes, either in a cover 
letter or on the amended pages or report, by specifying the lines on 
the Schedule(s) or Form(s) that have been amended.
    (l) Credit card payments. (1) Where a committee has paid, by credit 
card, any disbursement(s) subject to paragraphs (c) (1) and (2) of this 
section, the committee shall report these disbursements in accordance 
with this paragraph. For the purposes of this section, a credit card 
represents a credit account with a depository institution (see 11 CFR 
103.2) or other corporation that is not a depository institution. A 
credit account may permit the committee to make a partial payment of 
each monthly balance or may require the committee to pay each monthly 
balance in full.
    (2) The reporting committee shall itemize on Schedule B each 
payment to a credit card issuer by specifying the depository 
institution or other corporation to which payment was made, the date 
and amount of payment. Where the committee has made a partial payment 
of a monthly balance, the committee shall report a memo entry for the 
outstanding credit balance on Schedule B and report the outstanding 
balance as a debt to the extent required by 11 CFR 104.11(b).
    (3) Any disbursement reflected on a monthly account statement for a 
credit card, that otherwise is required to be itemized by paragraph 
(c)(2) of this section, shall be reported section, shall be reported as 
a memo entry on Schedule B in addition to the information required 
under paragraph (l)(2) of this section.

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

    6. The authority citation for part 108 would continue to read as 
follows:

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

    7. Section 108.1 would be amended by redesignating the text as 
paragraph (a), revising the first sentence of newly designated 
paragraph (a), and adding new paragraph (b) to read as follows:


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

    (a) Except as provided in paragraph (b)(1) of this section, a copy 
of each report and statement required to be filed by any person under 
the Act shall be filed either with the Secretary of State of the 
appropriate State or with the State officer who is charged by State law 
with maintaining state election campaign reports. * * *
    (b)(1) The filing requirements and duties of State officers under 
11 CFR part 108 shall not apply to a State if the Commission has 
determined that the State maintains a system that can electronically 
receive and duplicate reports and statements filed with the Commission.
    (2) The provisions of paragraph (b)(1) of this section shall not 
apply to reports filed by candidates, and the authorized

[[Page 50721]]

committees of candidates, for nomination for election, or election, to 
the office of Senator. See 11 CFR 108.3(a)(1).
    8. Section 108.2 would be amended by revising the first sentence to 
read as follows:


Sec. 108.2  Filing copies of reports and statements in connection with 
the campaign of any candidate seeking nomination for election to the 
Office of President or Vice-President (2 U.S.C. 439(a)(2)).

    Except as provided in 11 CFR 108.1(b)(1), a copy of each report and 
statement required to be filed under the Act (including 11 CFR part 
104) by a Presidential or Vice Presidential candidate's principal 
campaign committee, or under 11 CFR 104.4 or part 109 by any other 
person making independent expenditures, in connection with a candidate 
seeking nomination for election to the office of President or Vice-
President, shall be filed with the State officer of each State in which 
an expenditure is made in connection with the campaign of a candidate 
seeking nomination for election to the office of President or Vice-
President. * * *
    9. Section 108.3 would be revised to read as follows:


Sec. 108.3  Filing copies of reports and statements in connection with 
the campaign of any congressional candidate (2 U.S.C. 439(a)(2)).

    (a)(1) A copy of each report and statement required to be filed 
under 11 CFR part 104 by candidates, and the authorized committees of 
candidates, for nomination for election, or election, to the office of 
Senator, shall be filed with the appropriate State officer of that 
State in which an expenditure is made in connection with the campaign.
    (2) Except as provided in 11 CFR 108.1(b)(1), a copy of each report 
and statement required to be filed by any unauthorized committee under 
11 CFR part 104, or by any other person under 11 CFR part 109, in 
connection with a campaign for nomination for election, or election to, 
the office of Senator, shall be filed with the appropriate State 
officer of that State in which an expenditure is made in connection 
with the campaign.
    (b) Except as provided in 11 CFR 108.1(b)(1), a copy of each report 
and statement required to be filed under 11 CFR part 104 by candidates, 
and authorized committees of candidates, for nomination for election, 
or election, to the office of Representative in, Delegate or Resident 
Commissioner to the Congress, or by unauthorized committees, or by any 
other person under 11 CFR part 109, in connection with these campaigns 
shall be filed with the appropriate State officer of that State in 
which an expenditure is made in connection with the campaign.
    (c) Unauthorized committees that file reports pursuant to paragraph 
(b) of this section are required to file, and the Secretary of State is 
required to retain, only that portion of the report applicable to 
candidates seeking election in that State.
    10. Section 108.4 would be revised to read as follows:


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

    Except as provided in 11 CFR 108.1(b)(1), any unauthorized 
committee, which makes contributions in connection with a Presidential 
election and which is required to file a report(s) and statement(s) 
under the Act, shall file a copy of the report(s) and statement(s) with 
the State officer of the State in which both the recipient and 
contributing committees have their headquarters.
    11. Section 108.6 would be amended by revising the introductory 
text to read as follows:


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

    Except as provided in 11 CFR 108.1(b)(1), the Secretary of State, 
or the equivalent State officer, shall carry out the duties set forth 
in 11 CFR 108.6(a) through (d):
* * * * *
    12. Section 108.8 would be revised to read as follows:


Sec. 108.8   Exemption for the District of Columbia.

    Any copy of a report required to be filed with the equivalent 
officer in the District of Columbia under 11 CFR part 108 shall be 
deemed to be filed if the original has been filed with the Secretary or 
the Commission, as appropriate.

    Dated: September 22, 1997.
John Warren McGarry,
Chairman, Federal Election Commission.
[FR Doc. 97-25477 Filed 9-25-97; 8:45 am]
BILLING CODE 6715-01-P