[Federal Register Volume 63, Number 116 (Wednesday, June 17, 1998)]
[Proposed Rules]
[Pages 33012-33014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16006]


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FEDERAL ELECTION COMMISSION

11 CFR Parts 9003 and 9033

[Notice 1998-11]


Electronic Filing of Reports by Publicly Financed Presidential 
Primary and General Election Candidates

AGENCY:Federal Election Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY:The Federal Election Commission requests comments on proposed 
changes to its regulations to address the electronic filing of reports 
by publicly financed Presidential primary and general election 
candidates. The proposed rules would specify that if Presidential 
candidates and their authorized committees have computerized their 
campaign finance records, they must agree to participate in the 
Commission's recently established electronic filing program as a 
condition of voluntarily accepting federal funding. These regulations 
would implement the provisions of the Presidential Election Campaign 
Fund Act (``Fund Act'') and the Presidential Primary Matching Payment 
Account Act (``Matching Payment Act''), which establish eligibility 
requirements for Presidential candidates seeking public financing, as 
well as Public Law 104-97, which amended the reporting provisions of 
the Federal Election Campaign Act of 1971 (``FECA''). No final 
decisions have been made by the Commission on the proposed revisions in 
this Notice. Further information is provided in the supplementary 
information which follows.

DATES: Comments must be received on or before July 17, 1998.

ADDRESSES: All 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

[[Page 33013]]

to the Federal Election Commission, 999 E Street, N.W., Washington, 
D.C. 20463. Faxed comments should be sent to (202) 219-3923, with 
printed copy follow up. Electronic mail comments should be sent to 
[email protected]. Commenters sending comments by electronic mail 
should include their full name and postal service address within the 
text of their comments. Electronic 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. Rosemary C. Smith, Senior Attorney, at (202) 
694-1650 or toll free (800) 424-9530.

SUPPLEMENTARY INFORMATION: Recently, the Federal Election Commission 
implemented a system permitting political committees and other persons 
to file reports of campaign finance activity via computer diskettes and 
direct transmission of electronic data. See Explanation and 
Justification of 11 CFR 104.18, 61 FR 42371 (Aug. 15, 1996). The 
Commission was required to make the electronic filing option available 
for all ``report[s], designation[s], or statement[s] required by this 
Act to be filed with the Commission.'' Public Law 104-79, 109 Stat. 791 
(1995), (adding 2 U.S.C. 434(a)(11)). While the Commission encourages 
all political committees and other persons to file their reports 
electronically, no committee or person is required to do so. Under 
Public Law 104-79, participation in the Commission's electronic filing 
program is voluntary. The goals of the new system include enhancement 
of on-line access to reports on file with the Commission, reduction of 
paper filing and manual processing, and increased efficiency and cost-
effective methods of operation for the filers and for the Commission.
    With the advent of the first Presidential election cycle since the 
implementation of the new electronic filing system, the question has 
arisen as to whether it would be advisable to modify the Commission's 
regulations at 11 CFR 9003.1 and 9033.1 to provide that certain 
Presidential committees must agree to file their campaign finance 
reports electronically as a condition of receiving public funding. 
Currently, the authorized committees of presidential candidates, like 
other political committees, have the option of submitting electronic 
reports should they wish to do so. See 11 CFR 104.18. The proposed 
changes to the candidate agreement regulations which follow would 
establish electronic filing as an additional prerequisite for the 
receipt of public funding. Please, note, however, this new language 
would only apply to those primary and general election candidate 
committees that decide to rely upon a computer system to maintain and 
use their campaign finance data. Thus, the draft rules would not burden 
campaign committees with new requirements if they are not computerized.
    Electronic filing of Presidential committees' reports is intended 
to save a substantial amount of time and Commission resources that 
would otherwise be devoted to inputting these reports into the FEC's 
database. Although the number of political committees affected by the 
requirement would be relatively small, their reports can be voluminous 
given the substantial number of contributions and expenditures listed 
in each report. Thus, these proposed changes to the candidate agreement 
rules are expected to speed the reporting of campaign finance 
information and enhance public disclosure.
    Previously, the Commission issued technical specifications for 
reports filed electronically in its Electronic Filing Specification 
Requirements (EFSR), which is available free of charge. The EFSR 
contains technical specifications, including file requirements, for 
reports filed by Presidential campaign committees. However, the 
electronic filing software available from the FEC at no charge will not 
generate the forms used by Presidential committees. The Commission's 
Data System Development Division would work with committees to assist 
them in generating the proper output. Any additional costs entailed may 
be treated and paid for like any other compliance cost pursuant to 11 
CFR 9003.3(a)(2)(i)(B) and (F) and 9035.1(c)(1) if incurred after 
January 1, 1999. The Commission notes that there are a number of 
differences between the specifications contained in the EFSR and those 
found in the Computerized Magnetic Media Requirements (CMMR) used by 
publicly financed committees to submit financial data for the 
Commission's audit. These differences are necessitated, in part, by the 
different purposes for which each of these databases are used. 
Nevertheless, comments are requested as to ways in which these two 
standards could be better synchronized.
    The proposed revisions to the candidate agreement regulations do 
not require electronic filing for statements of candidacy or statements 
of organization. While Presidential candidates and their authorized 
committees may file these statements electronically, if they wish, 
these forms have not been included in the free software available from 
the FEC. Also please note that the candidate agreements, themselves, 
would not be submitted in electronic form under the changes to 11 CFR 
9003.1 and 9033.1 which follow.
    Congress intended the new system of electronic filing to be 
voluntary. 141 Cong. Rec. H 12140-41 (daily ed. Nov. 13, 1995) 
(statements of Reps. Thomas, Hoyer, Fazio and Livingston). The 
Commission believes that a candidate's agreement to file campaign 
finance reports electronically in exchange for public funding is a 
voluntary decision materially indistinguishable from the candidate's 
voluntary decision to abide by the spending limits in exchange for 
federal funds. For this reason, it appears that the Commission has the 
authority to promulgate the regulation set forth below. Nevertheless, 
commenters are encouraged to express their views on whether the rules 
set out in this notice are within the scope of the Commission's 
authority under the Fund Act, the Matching Payment Act, the FECA, and 
Public Law 104-79.
    The Commission welcomes comments on the foregoing proposed 
amendments to the candidate agreement regulations. Other aspects of the 
public financing process will be addressed separately in a forthcoming 
Notice of Proposed Rulemaking. No final decision has been made by the 
Commission concerning the proposals contained in this notice.

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

    These proposed rules will not, if promulgated, have a significant 
economic impact on a substantial number of small entities. The basis 
for this certification is that very few small entities will be affected 
by these proposed rules, and the cost is not expected to be 
significant. Further, any small entities affected have voluntarily 
chosen to receive public funding and to comply with the requirements of 
the Presidential Election Campaign Fund Act or the Presidential Primary 
Matching Payment Account Act.

List of Subjects in 11 CFR Parts 9003 and 9033

    Campaign funds, Elections, Political candidates.

    For the reasons set out in the preamble, it is proposed to amend 
Subchapters E and F of Chapter I of Title 11 of the Code of Federal 
Regulations as follows:

[[Page 33014]]

PART 9003--ELIGIBILITY FOR PAYMENTS

    1. The authority citation for part 9003 would continue to read as 
follows:

    Authority: 26 U.S.C. 9003 and 9009(b).

    2. In Sec. 9003.1, paragraph (b) introductory text is republished 
and new paragraph (b)(11) would be added to read as follows:


Sec. 9003.1  Candidate and committee agreements.

* * * * *
    (b) Conditions. The candidates shall:
* * * * *
    (11) Agree that they and their authorized committee(s) shall file 
all reports with the Commission in an electronic format that meets the 
requirements of 11 CFR 104.18 if the candidate or the candidate's 
authorized committee(s) maintain or use computerized information 
containing any of the information described in 11 CFR 104.3.

PART 9033--ELIGIBILITY FOR PAYMENTS

    3. The authority citation for Part 9033 would continue to read as 
follows:

    Authority: 26 U.S.C. 9003(e), 9033 and 9039(b).

    4. In section 9033.1, paragraph (b) introductory text is 
republished and new paragraph (b)(13) would be added to read as 
follows:


Sec. 9033.1  Candidate and committee agreements.

* * * * *
    (b) Conditions. The candidate shall agree that:
* * * * *
    (13) The candidate and the candidate's authorized committee(s) will 
file all reports with the Commission in an electronic format that meets 
the requirements of 11 CFR 104.18 if the candidate or the candidate's 
authorized committee(s) maintain or use computerized information 
containing any of the information described in 11 CFR 104.3.

    Dated: June 11, 1998.
Joan D. Aikens,
Chairman, Federal Election Commission.
[FR Doc. 98-16006 Filed 6-16-98; 8:45 am]
BILLING CODE 6715-01-P