[Federal Register Volume 64, Number 150 (Thursday, August 5, 1999)]
[Rules and Regulations]
[Pages 42579-42584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20102]



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  Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 / 
Rules and Regulations  

[[Page 42579]]


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FEDERAL ELECTION COMMISSION

11 CFR Parts 110, 9004, and 9034

[Notice 1999-13]


Party Committee Coordinated Expenditures; Costs of Media Travel 
With Publicly Financed Presidential Candidates

AGENCY: Federal Election Commission.

ACTION: Final Rule and Transmittal of Regulations to Congress.

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SUMMARY: The Commission is revising two portions of its regulations 
governing publicly financed Presidential primary and general election 
candidates. These rules address the costs of transportation and ground 
services that federally funded Presidential primary and general 
election campaigns may pass on to the news media covering their 
campaigns, as well as party committee coordinated expenditures that are 
made before the date their candidates receive the nomination. Further 
information is provided in the supplementary information which follows.

DATES: Further action, including the publication of a document in the 
Federal Register announcing an effective date, will be taken after 
these regulations have been before Congress for 30 legislative days 
pursuant to 2 U.S.C. 438(d) and 26 U.S.C. 9009(c) and 9039(c).

FOR FURTHER INFORMATION CONTACT: Ms. Rosemary C. Smith , Acting 
Assistant General Counsel, 999 E Street, NW., Washington, DC 20463, 
(202) 694-1650 or toll free (800) 424-9530.

SUPPLEMENTARY INFORMATION: The Commission is publishing today the final 
text of revisions to its regulations governing certain aspects of the 
public financing of Presidential campaigns. Specifically, the amended 
rules at 11 CFR 9004.6 and 9034.6 govern transportation and services 
provided by federally funded Presidential candidates to the news media 
covering their campaigns. Also included are amendments to 11 CFR 110.7, 
regarding coordinated expenditures by political party committees on 
behalf of their Presidential and Congressional candidates that are made 
before the date these candidates are nominated by their political 
parties. These regulations implement section 441a(d) of the Federal 
election Campaign Act (``FECA''), section 9004 of the Presidential 
Election Campaign Fund Act (``Fund Act'') and section 9034 of the 
Presidential Primary Matching Payment Account Act (``Matching Payment 
Act''). See 2 U.S.C. 441a(d), and 26 U.S.C. 9004 and 9034. The Fund Act 
and the Matching Payment Act establish eligibility requirements for 
Presidential candidates seeking public financing, and indicate how 
funds received under the public financing system may be spent.
    On May 5, 1997, the Commission issued a Notice of Proposed 
Rulemaking (``1997 NPRM'') in which it sought comments on proposed 
revisions to the coordinated expenditure provisions of 11 CFR 110.7. 
See 62 F.R. 24367 (May 5, 1997). Written comments were received from 
the Internal Revenue Service (IRS), the Chamber of Commerce, the 
National Right to Life Committee (NRLC), the Republican National 
Committee (RNC), the National Republican Senatorial Committee (NRSC), 
the National Republican Congressional Committee (NRCC), the Democratic 
National Committee (DNC), a joint comment from the Democratic 
Senatorial Campaign Committee (DSCC) and the Democratic Congressional 
Campaign Committee (DCCC), and Common Cause. A public hearing was held 
on June 18, 1997, at which witnesses testified on behalf of the DNC, 
the RNC, the NRLC, the NRSC, the DSCC and the DCCC, and Common Cause. 
The IRS indicated that it found no conflict with the Internal Revenue 
Code or regulations thereunder. Subsequently, the consideration of 
final rules was postponed pending the outcome of litigation that could 
materially affect the policies at issue.
    On December 16, 1998, the Commission published a new Notice of 
Proposed Rulemaking (``1998 NPRM'') putting forth proposed amendments 
to its rules governing publicly financed Presidential primary and 
general election candidates. See 63 F.R. 69524 (Dec. 16, 1998). Issues 
concerning coordination between party committees and their Presidential 
candidates, which had been raised in the earlier rulemaking, were also 
included in the public funding rulemaking. In response to the 1998 
NPRM, written comments on coordinated expenditures were received from 
Perot for President '96; James Madison Center for Free Speech; Common 
Cause and Democracy 21 (joint comment); Brennan Center for Justice; Lyn 
Utrecht, Eric Kleinfeld, and Patricia Fiori (joint comment); the DNC; 
and the RNC. Subsequently, the Commission reopened the comment period 
and held a public hearing on March 24, 1999, at which the following 
four witnesses presented testimony on the coordination issues: Lyn 
Utrecht (Ryan, Phillips, Utrecht & MacKinnon), Joseph E. Sandler (DNC), 
Thomas J. Josefiak (RNC), and James Bopp, Jr. (James Madison Center for 
Free Speech).
    The 1998 NPRM also sought comments on proposed revisions to the 
regulations at 11 CFR 9004.6 and 9034.6 regarding media travel. Written 
comments on the media travel issues were received from Lyn Utrecht, 
Eric Kleinfeld, and Patricia Fiori (joint comment); the DNC; the RNC; 
and Carl P. Leubsdorf and twenty eight other executives of news 
organizations (joint comment). At the public hearing on March 24, 1999, 
the following witnesses presented testimony on the media travel rules: 
Kim Hume (Fox News), George Condon (Copley News Service), and Thomas J. 
Josefiak (RNC). The Internal Revenue Service stated that it has 
reviewed the NPRM and finds no conflict with the Internal Revenue Code 
or regulations thereunder. The comments and testimony on both topics 
are discussed in more detail below.
    Please note, the Commission published previously final rules 
modifying the candidate agreement provisions so that federally-financed 
Presidential committees must electronically file their reports, as well 
as final rules governing the matchability of contributions made by 
credit and debit cards, including those transmitted over the Internet. 
See Explanation and Justification, 63 FR 45679 (August 27, 1998) 
(electronic filing) and Explanation and Justification, 64 FR 32394 
(June 17, 1999) (matchability). The effective

[[Page 42580]]

date for the electronic filing regulations is November 13, 1998. See 
Announcement of Effective Date, 63 FR 63388 (November 13, 1998). An 
effective date for the matching fund rules will be announced once those 
regulations have been before Congress for thirty legislative days.
    Section 438(d) of Title 2 and sections 9009(c) and 9039(c) of Title 
26, United States Code, require that any rules or regulations 
prescribed by the Commission to carry out the provisions of title 2 or 
26 of the United States Code be transmitted to the Speaker of the House 
of Representatives and the President of the Senate 30 legislative days 
before they are finally promulgated. The final rules that follow were 
transmitted to Congress on July 30, 1999.

Explanation and Justification

Section 110.7  Party Committee Coordinated Expenditures and Spending 
Limits (2 U.S.C. 441a(d))

    Section 441a(d) permits national, state, and local committees of 
political parties to make limited general election campaign 
expenditures on behalf of their candidates, which are in addition to 
the amount they may contribute directly to those candidates. 2 U.S.C. 
441a(d). These section 441a(d) expenditures are commonly referred to as 
``coordinated party expenditures'' because such expenditures can be 
made after extensive consultation with the candidates and their 
campaign staffs.\1\ However, party committees have never had to 
demonstrate actual ``coordination'' with their candidates to avail 
themselves of this additional spending limit.
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    \1\ The coordinated spending limits were invalidated on 
Constitutional grounds by one district court in Colorado Republican 
Federal Campaign Committee v. Federal Election Commission, 41 F. 
Supp.2d 1197 (D. Co.o. 1999) on remand from 518 U.S. 604 (1996). 
This case is being appealed.
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    Section 110.7 of the Commission's regulations implements the 
statutory exception to the contribution limits set forth at 2 U.S.C. 
441a. Former paragraph (b)(4) of this section had presumed that party 
committees were incapable of making independent expenditures. This 
regulation was implicated by the Supreme Court's plurality opinion in 
Colorado Republican Federal Campaign Committee v. Federal Election 
Commission, 518 U.S. 604 (1996) (Colorado). In that decision, the Court 
concluded that political parties are capable of making independent 
expenditures on behalf of their candidates for federal office, and that 
it would violate the First Amendment to subject such independent 
expenditures to the expenditure limits found in section 441a(d) of the 
FECA. Id. at 613-14.
    Following the Colorado Supreme Court decision, the Commission 
promulgated a Final Rule on August 7, 1996 that repealed paragraph 
(b)(4) of Sec. 110.7 to the extent that this paragraph prohibited 
national committees of political parties from making independent 
expenditures for congressional candidates. 61 FR 40961 (Aug. 7, 1996). 
On the same date, the Commission also published a Notice of 
Availability seeking comment on other significant issues arising from 
the Colorado decision. 61 FR 41036 (Aug. 7, 1996). These included 
possible amendments to 11 CFR Part 109 and 11 CFR 110.7 to provide 
standards for determining when expenditures qualify as ``independent'' 
or are considered ``coordinated'' with Congressional and Presidential 
candidates. Another issue raised was whether to modify or repeal the 
rule barring national party committees from making independent 
expenditures on behalf of Presidential candidates in the general 
election. See 11 CFR 110.7(a)(5). Given that the Colorado decision 
concerned a Senatorial election, the Supreme Court specifically noted 
in the opinion that it was not addressing issues that might grow out of 
the public funding of Presidential campaigns. Colorado, 518 U.S. at 
612.
    As explained above, the Commission also issued two Notices of 
Proposed Rulemaking and held two public hearings on proposed revisions 
to the coordinated expenditure regulations. See 62 F.R. 24367 (May 5, 
1997) and 63 F.R. 69524 (Dec. 16, 1998). For example, the 1998 NPRM put 
forward narrative proposals regarding a content-based standard for 
coordinated communications made to the general public. It also sought 
comment on coordination between the national committees of political 
parties and their Presidential candidates with respect to poll results, 
media production, consultants, and employees whose services are 
intended to benefit the parties' eventual Presidential nominees.
    At this point, the Commission is continuing to evaluate possible 
amendments to 11 CFR 110.7 and 109.1 regarding the definitions of 
``coordinated'' and ``independent'' expenditures, the standards 
applicable to party committee advertisements directed to the general 
public, and the possible repeal or modification of 11 CFR 110.7(a)(5), 
which currently bars national party committees from making independent 
expenditures in connection with Presidential general election 
campaigns. Consequently, revised proposals on these topics may be put 
out for additional public comment in the future.
    However, with respect to pre-nomination coordinated expenditures, 
the Commission is promulgating new paragraph (d) of section 110.7, 
which is consistent with its previous policy permitting coordinated 
expenditures to be made before the date of the primary election. See, 
e.g., Advisory Opinion 1984-15 (``[N]othing in the Act, its legislative 
history, Commission regulations, or court decisions indicates that 
coordinated party expenditures must be restricted to the time period 
between nomination and the general election.''); see also AO 1985-14. 
Please note, however, that other aspects of these advisory opinions may 
be modified or superseded by subsequent Commission decisions regarding 
the remaining coordination issues.
    With regard to prenomination coordinated expenditures, one of the 
commenters on the 1998 NPRM indicated that the current state of the law 
is clear, based on AOs 1984-15 and 1985-14, and there is no need to 
revise the rules. This party committee also noted that its own rules 
preclude it from supporting a Presidential candidate until that 
candidate has sufficient delegates to be nominated. In contrast, other 
commenters urged the Commission to state explicitly in the regulations 
that political party committees may make 441a(d) expenditures before 
the general election campaign period. However, one of these commenters 
opposed a requirement that all pre-nomination expenditures count 
against the party's 441a(d) limit. The commenter did not think it would 
be fair to count party expenditures against the coordinated spending 
limits if they were for positive communications supporting an 
anticipated nominee who was later forced to withdraw, for example, due 
to illness.
    The Commission has concluded that it is advisable to include 
language in 11 CFR 110.7 that specifically sets forth the Commission's 
past policy of permitting pre-nomination coordinated expenditures for 
the general election. Accordingly, new language at paragraph (d) of 
section 110.7 covers all Presidential candidates, whether or not they 
receive federal funding, as well as Congressional candidates. To issue 
new rules that only apply to Presidential candidates would create the 
implication that coordinated expenditures for House and Senate 
candidates are subject to different standards, thereby generating 
needless confusion. The Commission

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does not agree with the commenters who opposed counting ``positive'' 
pre-nomination expenditures against the 441a(d) limits if another 
candidate receives the party's nomination. For one thing, this approach 
would create a distinction between positive ads supporting the party's 
candidate and negative ads opposing other candidates. There is no 
apparent basis in the FECA or its legislative history for this type of 
distinction. In addition, there may be some situations where a party 
committee ad contains both positive messages about the party and its 
candidate as well as negative messages about the opposition.

Section 9004.6  Expenditures for Transportation and Services Made 
Available to Media Personnel; Reimbursements

    Section 9004.6 of the Commission's regulations contains provisions 
governing expenditures by federally financed committees for 
transportation and other services provided to representatives of the 
news media covering the Presidential general election campaigns. These 
rules indicate that expenditures for these purposes will, in most 
cases, be treated as qualified campaign expenses subject to the overall 
spending limitations of section 9003.2. Parallel provisions regarding 
Presidential primary campaigns are located at 11 CFR 9034.6.
    However, section 9004.6 also allows committees to accept limited 
reimbursement for these expenses from the media, and to deduct any 
reimbursements received from the amount of expenditures subject to the 
overall expenditure limitation. These rules set limits on the amount of 
reimbursement that a committee can accept, and require committees to 
pay a portion of any reimbursement that exceeds those limits to the 
U.S. Treasury. Section 9004.6(b) limits the reimbursements to 110% of a 
media representative's pro rata share of the actual cost of the 
transportation and services made available. Please note that the 
additional 10% generally corresponds to the amount the White House 
Travel Office bills the press for expenses associated with government 
employees directly supporting the press. The regulations specify that 
the pro rata share is calculated by dividing the total actual cost of 
the transportation and services provided by the total number of 
individuals to whom such transportation and services are made 
available. Under the revisions to this provision, the total number of 
individuals has not been changed, and thus continues to include 
committee staff, media personnel, Secret Service and others.
    During the last Presidential election cycle, a number of disputes 
arose between the media and certain campaigns regarding charges billed 
to the press. The disputes concerned the types of expenses that relate 
to media coverage of campaign events as distinguished from the costs of 
staging those campaign events. Another issue centered on the ability of 
the campaigns to charge all press representatives for the use of ground 
facilities, not just those who travel with the candidate. The third 
issue concerned the perceived lateness and lack of specificity in the 
bills received for media costs.
1. Types of Costs That May Be Charged to the Media
    The 1998 NPRM sought comments on whether the rules should be 
revised to include lists of allowable and nonallowable expenses that 
may be charged to the media for ground costs. Disputed items have 
included security services for the press, sound and lighting equipment, 
press risers and camera platforms, carpeting, bunting, skirts, 
railings, flags, and electrical service for the press platforms.
    Two witnesses who have represented Presidential campaign committees 
or a party committee argued that presidential campaigns should be 
permitted to bill the media for legitimate costs incurred for the 
benefit of, or at the request of, the media, since these costs would 
not have been incurred otherwise. These comments stated that all the 
items listed in the NPRM are reasonable, legitimate costs that should 
be paid by the media. One of these witnesses specifically opposed an 
attempt to allocate costs between the press and the campaigns. In 
contrast, the representatives of 29 major news organizations stated 
that the informal system they had worked out with presidential campaign 
committees had broken down in the past two Presidential election 
campaigns and should be replaced with explicit guidelines. While the 
news organizations remain willing to pay legitimate travel expenses, 
they were opposed to being forced to pay what they considered to be the 
costs the campaign committees incurred in staging campaign events, 
which includes the sound and lighting systems, bunting and flags. They 
referred the Commission to the guidelines negotiated by the White House 
Correspondents' Association and the White House Travel Office for 
examples of the types of legitimate costs of covering campaign events 
that the news media believed it could fairly be asked to pay as well as 
items that should not be billed to the press unless a particular item 
is ordered by a news organization and that specific organization is 
billed. They urged the Commission to incorporate into its regulations 
similar restrictions on reimbursements from the media.
    In light of the increasing numbers of disputes in this area, the 
Commission has concluded that more regulatory guidance is needed. 
Accordingly, 11 CFR 9004.6 is being amended by adding new paragraph 
(a)(3) to specify that publicly funded Presidential campaigns may seek 
reimbursement from the media only for the items listed in the White 
House Press Corps Travel Policies and Procedures issued by the White 
House Travel Office. The Commission has concluded that these 
guidelines, which were established by an arms length negotiation 
process, are suitable for incumbent Presidents seeking re-election, 
incumbent Vice Presidents running for President, as well as non-
incumbent challengers in Presidential primary and general elections. 
Incorporating the White House Travel Office's guidelines into the 
regulations will also ensure that any future changes that are 
negotiated by the White House Correspondents' Association and the White 
House Travel Office will automatically be reflected in the Commission's 
rules without the need for additional rulemaking.
    The Commission notes that the White House Travel Office guidelines 
currently include, in addition to a list of billable items, a provision 
providing for billing for any item specifically requested by a media 
representative. The Commission assumes that this or a similar provision 
will be retained in any revisions to the White House guidelines. 
Therefore, the limitation on press billings to items specified in the 
White House guidelines would not preclude media personnel from 
requesting items or services not specifically enumerated in those 
guidelines, and campaigns could bill the requesting media personnel for 
the requested items.
2. Ground Services Made Available to Traveling and Non-Traveling Media 
Representatives
    The 1998 NPRM sought input as to whether further clarifications are 
needed to convey that Presidential campaign committees may only charge 
a media representative for his or her own pro rata share for meals, 
chairs on the press platform, seats on buses and vans, and telephone 
lines in filing centers, and that media representatives must not be 
expected to pay for services

[[Page 42582]]

made available to other members of the press or to campaign staff, 
volunteers, local elected officials or others. The Notice recognized 
that at times campaign committees have not sought payment from members 
of the press who do not travel on the press plane. One witness who has 
represented federally financed campaigns confirmed that the committees 
never obtain billing information on many media people. This may be due, 
sometimes, to the fact that local reporters and other media 
representatives not traveling with the campaign do not need to provide 
campaign staff with a credit card number for billing flights. 
Representatives of the news organizations who filed comments and 
testified at the hearing suggested that at the time campaigns provide 
press credentials to media representatives, whether on the plane or on 
the ground, it would not be a hardship for the campaign staff to obtain 
billing information. However, these witnesses found it objectionable 
that the press was sometimes charged for the entire cost of ground 
services made available to everyone attending the campaign event, or 
were charged for services that they were not allowed to use.
    The current regulations at 11 CFR 9004.6(a)(2) permit, but do not 
require, campaign committees to obtain reimbursement from media 
representatives who use ground facilities, such as filing centers, but 
who do not travel on the press plane. The Commission notes that in 
practice one straightforward way for campaigns to obtain reimbursement 
from local media and other members of the press who do not travel with 
the candidate may be to collect billing information as part of the 
process of issuing press credentials. However, the Commission has 
decided that its regulations need not require the collection of billing 
information because campaign committees may elect to treat media costs 
as qualified campaign expenses and are not obligated to seek 
reimbursement.
    Under the current regulations at 11 CFR 9004.6(b)(2), campaigns 
should already be well aware that each media representative may only be 
charged his or her own pro rata share of costs. These rules explain 
that everyone, which includes campaign staff and media personnel from 
other news organizations, must be included in this calculation. Thus, 
Presidential campaign committees may not force the traveling press to 
absorb the costs of ground services used or consumed by local media, 
campaign staff, or others. Consequently no additional changes to the 
regulations are necessary in this regard.
3. Billing and Payment Guidelines
    Representatives of the major news organizations presented evidence 
in their written comments and testimony to the effect that it sometimes 
took months or even years after a campaign trip for them to receive 
bills from Presidential campaign committees for travel costs. They also 
explained that in some cases, they were presented with a bill for a 
single lump sum, which made it very difficult, if not impossible, to 
determine what charges were included and whether these amounts were 
correct. These commenters and witnesses also urged the Commission to 
place restrictions on what items could be charged to a media 
representative's credit card. Specifically, they urged the Commission 
to limit the use of credit cards to advance charter payments and hotel 
room reservations.
    After evaluating the written comments and oral testimony, the 
Commission has decided that it is necessary to establish guidelines 
covering the billing and payment of media travel and ground costs. 
Consequently, new paragraph (b)(3) of section 9004.6 specifies that 
Presidential campaign committees have sixty (60) days to provide each 
media representative traveling or attending a campaign event with an 
itemized bill for each segment of the trip. The bill should specify the 
amounts charged for each of the following categories: air 
transportation, ground transportation, housing, meals, telephone 
services, and other billable items specified in the White House Travel 
Office's Travel Policies and Procedures. Sixty days is a reasonable, 
commercial length of time. The White House Travel Office's Travel 
Policies and Procedures contemplate billing within twenty (20) business 
days of the return of a trip. Prompt, detailed billing is needed so 
that the committees may obtain payment or settle disputes 
expeditiously. The Commission believes that it is reasonable and 
consistent with commercial business practices to require media 
representatives to pay for these costs within sixty (60) days from the 
date of the bill in the absence of a dispute over the charges. It 
should be noted that while the individual reporters' credit cards may 
be billed, their news organizations provide reimbursement. Under the 
new rules, prompt billing and payment may ensure that these payments 
are made and these billing disputes are resolved by the parties before 
the Commission begins to audit the committee.

Section 9034.6  Expenditures for Transportation and Services Made 
Available to Media Personnel; Reimbursements

    The amendments contained in this section follow those made to 
section 9004.6, as discussed above.

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

    The attached final 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 in these areas.

List of Subjects

11 CFR Part 110

    Campaign funds, Political committees and parties.

11 CFR Part 9004

    Campaign funds.

11 CFR Part 9034

    Campaign funds, Reporting and recordkeeping requirements.

    For the reasons set out in the preamble, Subchapters A, E and F of 
Chapter I of Title 11 of the Code of Federal Regulations are amended as 
follows:

PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS

    1. The authority citation for Part 110 continues to read as 
follows:

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

    2. Section 110.7 is amended by adding paragraph (d) to read as 
follows:


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

* * * * *
    (d) Timing. Party committees may make coordinated expenditures in 
connection with the general election campaign before their candidates 
have been nominated. All pre-nomination coordinated expenditures shall 
be subject to the coordinated expenditure limitations of this section, 
whether or not the candidate with whom they are

[[Page 42583]]

coordinated receives the party's nomination.

PART 9004--ENTITLEMENT OF ELIGIBLE CANDIDATES TO PAYMENTS; USE OF 
PAYMENTS

    3. The authority citation for Part 9004 continues to read as 
follows:

    Authority: 26 U.S.C. 9004 and 9009(b).

    4. Section 9004.6 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec. 9004.6  Expenditures for transportation and services made 
available to media personnel; reimbursements.

    (a) General. (1) Expenditures by an authorized committee for 
transportation, ground services or facilities (including air travel, 
ground transportation, housing, meals, telephone service, typewriters, 
and computers) provided to media personnel, Secret Service personnel or 
national security staff will be considered qualified campaign expenses, 
and, except for costs relating to Secret Service personnel or national 
security staff, will be subject to the overall expenditure limitations 
of 11 CFR 9003.2(a)(1) and (b)(1).
    (2) Subject to the limitations in paragraphs (b) and (c) of this 
section, committees may seek reimbursement from the media for the 
expenses described in paragraph (a)(3) of this section, and may deduct 
reimbursements received from media representatives from the amount of 
expenditures subject to the overall expenditure limitation of 11 CFR 
9003.2(a)(1) and (b)(1). Expenses for which the committee receives no 
reimbursement will be considered qualified campaign expenses, and, with 
the exception of those expenses relating to Secret Service personnel 
and national security staff, will be subject to the overall expenditure 
limitation.
    (3) Committees may seek reimbursement from the media only for the 
billable items specified in the White House Press Corps Travel Policies 
and Procedures issued by the White House Travel Office.
    (b) Reimbursement limits; billing. (1) The amount of reimbursement 
sought from a media representative under paragraph (a)(2) of this 
section shall not exceed 110% of the media representative's pro rata 
share (or a reasonable estimate of the media representative's pro rata 
share) of the actual cost of the transportation and services made 
available. Any reimbursement received in excess of this amount shall be 
disposed of in accordance with paragraph (d)(1) of this section.
    (2) For the purposes of this section, a media representative's pro 
rata share shall be calculated by dividing the total actual cost of the 
transportation and services provided by the total number of individuals 
to whom such transportation and services are made available. For 
purposes of this calculation, the total number of individuals shall 
include committee staff, media personnel, Secret Service personnel, 
national security staff and any other individuals to whom such 
transportation and services are made available, except that, when 
seeking reimbursement for transportation costs paid by the committee 
under 11 CFR 9004.7(b)(5)(i)(C), the total number of individuals shall 
not include national security staff.
    (3) No later than sixty (60) days of the campaign trip or event, 
the committee shall provide each media representative attending the 
event with an itemized bill that specifies the amounts charged for air 
and ground transportation for each segment of the trip, housing, meals, 
telephone service, and other billable items specified in the White 
House Press Corps Travel Policies and Procedures issued by the White 
House Travel Office. Payments shall be due sixty (60) days from the 
date of the bill, unless the media representative disputes the charges.
* * * * *

PART 9034--ENTITLEMENTS

    5. The authority citation for Part 9034 continues to read as 
follows:

    Authority: 26 U.S.C. 9034 and 9039(b).

    6. Section 9034.6 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec. 9034.6  Expenditures for transportation and services made 
available to media personnel; reimbursements.

    (a) General. (1) Expenditures by an authorized committee for 
transportation, ground services or facilities (including air travel, 
ground transportation, housing, meals, telephone service, typewriters, 
and computers) provided to media personnel, Secret Service personnel or 
national security staff will be considered qualified campaign expenses, 
and, except for costs relating to Secret Service personnel or national 
security staff, will be subject to the overall expenditure limitations 
of 11 CFR 9035.1(a).
    (2) Subject to the limitations in paragraphs (b) and (c) of this 
section, committees may seek reimbursement from the media for the 
expenses described in paragraph (a)(3) of this section, and may deduct 
reimbursements received from media representatives from the amount of 
expenditures subject to the overall expenditure limitation of 11 CFR 
9035.1(a). Expenses for which the committee receives no reimbursement 
will be considered qualified campaign expenses, and, with the exception 
of those expenses relating to Secret Service personnel and national 
security staff, will be subject to the overall expenditure limitation.
    (3) Committees may seek reimbursement from the media only for the 
billable items specified in the White House Press Corps Travel Policies 
and Procedures issued by the White House Travel Office.
    (b) Reimbursement limits; billing.
    (1) The amount of reimbursement sought from a media representative 
under paragraph (a)(2) of this section shall not exceed 110% of the 
media representative's pro rata share (or a reasonable estimate of the 
media representative's pro rata share) of the actual cost of the 
transportation and services made available. Any reimbursement received 
in excess of this amount shall be disposed of in accordance with 
paragraph (d)(1) of this section.
    (2) For the purposes of this section, a media representative's pro 
rata share shall be calculated by dividing the total actual cost of the 
transportation and services provided by the total number of individuals 
to whom such transportation and services are made available. For 
purposes of this calculation, the total number of individuals shall 
include committee staff, media personnel, Secret Service personnel, 
national security staff and any other individuals to whom such 
transportation and services are made available, except that, when 
seeking reimbursement for transportation costs paid by the committee 
under 11 CFR 9034.7(b)(5)(i)(C), the total number of individuals shall 
not include national security staff.
    (3) No later than sixty (60) days of the campaign trip or event, 
the committee shall provide each media representative attending the 
event with an itemized bill that specifies the amounts charged for air 
and ground transportation for each segment of the trip, housing, meals, 
telephone service, and other billable items specified in the White 
House Press Corps Travel Policies and Procedures issued by the White 
House Travel Office. Payments shall be due sixty (60) days from the 
date of the bill, unless the media representative disputes the charges.
* * * * *

[[Page 42584]]

    Dated: July 30, 1999.
Scott E. Thomas,
Chairman, Federal Election Commission.
[FR Doc. 99-20102 Filed 8-4-99; 8:45 am]
BILLING CODE 6715-01-P