[Federal Register Volume 66, Number 90 (Wednesday, May 9, 2001)]
[Proposed Rules]
[Pages 23628-23632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11587]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 66, No. 90 / Wednesday, May 9, 2001 / 
Proposed Rules  

[[Page 23628]]



FEDERAL ELECTION COMMISSION

11 CFR Parts 100, 104, and 109

[Notice 2001-6]


Independent Expenditure Reporting

AGENCY: Federal Election Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Election Commission is seeking comment on proposed 
rules to implement statutory changes to the procedures for filing 
certain reports of independent expenditures. The proposed rules would 
require that reports of last minute independent expenditures (``24-hour 
reports'') be received by the Commission or the Secretary of the 
Senate's office within 24 hours of the time the expenditure was made. 
To assist filers in meeting this new filing deadline, the proposed 
rules would allow reports of last minute independent expenditures to be 
filed by facsimile machine or electronic mail, unless the filer 
participates in the Commission's electronic filing program. In addition 
to faxing or e-mailing 24-hour reports, persons other than political 
committees (who are not part of the electronic filing program) would be 
allowed to fax or e-mail any reports of independent expenditures filed 
under the regular reporting schedules. However, electronic filers must 
continue to file all reports of independent expenditures (24-hour 
reports as well as regularly scheduled reports) using the Commission's 
electronic filing system. Please note that the draft rules that follow 
do not represent a final decision by the Commission on the issues 
presented by this rulemaking. Further information is provided in the 
supplementary information that follows.

DATES: Comments must be received on or before June 8, 2001.

ADDRESSES: All comments should be addressed to Ms. Rosemary C. Smith, 
Assistant General Counsel, and must be submitted in either written or 
electronic form. Written comments should be sent to the Federal 
Election Commission, 999 E Street, NW., Washington, DC 20463. Faxed 
comments should be sent to (202) 219-3923, with printed copy follow-up 
to insure legibility. Electronic mail comments should be sent to 
[email protected] Commenters sending comments by electronic mail must 
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. The Commission will make every 
effort to have public comments posted on its Web site within ten 
business days of the close of the comment period.

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

SUPPLEMENTARY INFORMATION:  On October 23, 2000, Public Law 106-346 
(Department of Transportation and Related Agencies Appropriations Act, 
2001,114 Stat. 1356 (2000)) amended the Federal Election Campaign Act 
of 1971, 2 U.S.C. 431 et seq., (``the Act'' or ``FECA'') regarding the 
filing of independent expenditure reports under 2 U.S.C. 434(b) and 
(c). Paragraphs (b) and (c) of 2 U.S.C. 434 require political 
committees and other persons making independent expenditures to file 
reports or statements if their independent expenditures exceed a 
certain amount of money. In addition, if independent expenditures of 
$1,000 or more are made less than twenty (20) days but more than 
twenty-four (24) hours before the day of an election, an additional 
statement must be filed within 24 hours. Public Law 106-346 requires, 
inter alia, that the Commission issue rules requiring that reports of 
independent expenditures made less than twenty (20) days but more than 
twenty-four (24) hours before an election (``24-hour reports'') must be 
received by the Commission or the Secretary of the Senate, as 
appropriate,\1\ within 24 hours of the time the independent expenditure 
was made. The statutory change permits all 24-hour reports to be filed 
using facsimile machines or electronic mail, unless the filer is part 
of the Commission's electronic filing program (see 11 CFR 104.18). In 
addition to their 24-hour reports, persons other than political 
committees may file by fax or e-mail other reports of independent 
expenditures in accordance with the regular filing schedule (see 11 CFR 
104.5). The statutory amendment also requires the Commission to provide 
methods of verification of documents (other than requiring a signature 
on the document) for all purposes, including penalties of perjury. The 
new law requires this system to be in place for elections occurring 
after January 1, 2001, subject to regulations to be promulgated by the 
Commission.
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    \1\ The Secretary of the United States Senate Office of Public 
Records is the proper recipient of reports of independent 
expenditures that either support or oppose only candidates for the 
Unites States Senate. 11 CFR 104.4(c)(2).
---------------------------------------------------------------------------

    These new filing methods are intended to speed up disclosure and to 
provide political committees and other filers with more flexibility in 
choosing methods of compliance.
    In addition to the amendments regarding independent expenditures, 
the new law also requires the Commission to amend its regulations to 
exclude from the definition of ``contribution'' loans that candidates 
receive from brokerage accounts, lines of credit, or other credit 
instruments as long as the loans were made under commercially 
reasonable terms and were from a source that provides such loans in the 
normal course of business. That topic is being addressed in a separate 
rulemaking.

A. Reports of Independent Expenditures Filed by Facsimile Machine 
or Electronic Mail 
(11 CFR 104.4 and 109.2)

    Currently, 24-hour reports are filed by political committees using 
Schedule E and by persons other than political committees using either 
FEC Form 5, or a signed statement containing the information specified 
in 11 CFR 109.2(a)(1). Currently, most reports of independent 
expenditures are filed on paper. Note that those participating in the 
Commission's electronic filing program are required to send a paper 
copy or to submit a digitized file in addition to their electronic 
filing because the reports must be notarized. Under the new law and the 
proposed revisions to the regulations at 11 CFR 100.19(d), 104.4(b) and 
109.2(a), all

[[Page 23629]]

filers who are not part of the Commission's electronic filing program 
would be able to fax or electronically mail their 24-hour reports. Note 
that the new law and proposed revisions to section 109.2(a) also allow 
persons other than political committees (unless they submit reports 
under the Commission's electronic filing program--see infra) to file 
any other reports of independent expenditures (in accordance with the 
reporting schedule in 11 CFR 104.5) using a fax machine or e-mail.
    Under current sections 104.4(b) and 109.2(a)(1)(v), Schedule E, 
Form 5, and the signed statement must contain a notarized certification 
under penalty of perjury as to whether the expenditures were 
``coordinated'' with any candidate, authorized committee or agent 
thereof, and, if the independent expenditures were made by a 
corporation, that the maker is a qualified nonprofit corporation (see 
11 CFR 114.10). The Commission is considering adding new paragraph 
(a)(1)(vi) to section 109.2 to require those who file a statement 
instead of FEC Form 5 to certify that the expenditure was not made to 
finance, disseminate, distribute or republish campaign materials 
prepared by a candidate or a candidate's agent or authorized committee. 
Current paragraph (a)(1)(vi) would be renumbered (a)(1)(vii). New 
paragraph (a)(1)(vi) is consistent with the certification signed by 
those who file FEC Form 5 or Schedule E. The certification stems from 
the legislative history of the 1976 FECA. The Conference Report to the 
1976 FECA explained that ``any expenditure to finance publication of 
any campaign broadcast or any other campaign materials prepared by a 
candidate shall be considered to be a contribution to that candidate.'' 
H.R. Rep. No. 94-1057 at 55 (1976). Thus, the Commission's forms have 
required makers of independent expenditures to affirmatively state that 
the expenditure was not made to disseminate the campaign's own 
materials. On the other hand, however, the statutory certifications 
required by 2 U.S.C. 434(b)(6)(B)(iii) and (c)(2)(A) do not address 
distribution of candidate-prepared materials. Consequently, the 
Commission requests comments on not adding the certification statement 
to paragraph (a)(1)(vi) and removing that part of the certification 
from FEC Form 5 and Schedule E.
    The Department of Transportation and Related Agencies 
Appropriations Act, 2001 requires the Commission to create methods of 
verifying the independent expenditure statement filed, other than by 
requiring a signature on the document, for all purposes (including 
penalties of perjury). The Commission is proposing to allow self-
certification by the filer to verify the filed report. This means that 
notarization would no longer be required for Schedule E, Form 5, or 
signed statements. Instead, the filer would be required to simply self-
certify the document using either a handwritten signature on a paper 
document or by typing his or her name on electronic documents. Note 
that no other campaign finance reports filed with the Commission or the 
Secretary of the Senate need to be notarized.
    To implement the self-certification verification, the proposed 
amendments to 11 CFR 109.2(a)(1)(v) would require that a prescribed 
statement of certification as to the independence of the expenditure 
continue to be included in any statement filed by persons other than 
political committees. Conforming amendments to FEC Form 5 and Schedule 
E would be made at a later point, which would include self-
certification and would remove notarization.
    Proposed new paragraph (c) of 11 CFR 109.2 and proposed paragraphs 
(b)(1) and (2) of 11 CFR 104.4 set forth two methods for verifying 
reports of independent expenditures. Reports filed in paper form (e.g., 
by hand delivery or fax machine), would be verified by the filer's 
signature under the certification language. For reports filed by 
electronic mail, the Commission proposes certification by requiring the 
filer to type his or her name under the certification language.
    As an alternative to self-certification, the Commission seeks 
comments on retaining the current notarization requirement for faxed 
reports and requiring electronic notarizations for e-mailed reports. 
Given that only a handful of states have electronic notary statutes, is 
this feasible for filers from other states and territories? The 
Commission is concerned that differing standards for electronic 
notarizations among the many states may require the Commission to 
accept dozens of different electronic notaries, a process which could 
be cumbersome and expensive.
    The Commission is also considering whether to require standard 
paper notarization for faxed reports and digital signatures that are 
verified by a ``Trusted Third Party'' for e-mailed reports. Such 
digital signatures are the basis for transactions in electronic 
commerce. Digital signatures utilize a Public Key Infrastructure. That 
structure uses Public and Private Keys to encode a message and to 
provide a method of positively identifying the sender.
    The Commission requests comments on the proposed self-certification 
method of verification of the filed documents and also on any other 
methods of verification, whether mentioned above or not.

B. Reports of Independent Expenditures Filed by Registered or 
Certified Mail (11 CFR 100.19)

    Current Commission regulations at 11 CFR 100.19(b) state that a 
document is timely filed when it is received by the close of the 
prescribed filing date or, in the case of documents filed by certified 
or registered mail, when it is deposited in an established U.S. Post 
Office and is postmarked no later than the prescribed filing date (with 
the exception of pre-election reports). Hence, 24-hour reports are 
currently considered timely filed if they are deposited at a Post 
Office and are postmarked for certified or registered mail within 24 
hours of the time the independent expenditure was made.
    Under Pub. L. 106-346 and proposed regulations at paragraph (b) and 
new paragraph (d) of 11 CFR 100.19, 24-hour reports would be considered 
timely filed only upon their receipt by the Commission or Secretary of 
the Senate within 24 hours of making the independent expenditure. Thus, 
while a filer could use registered or certified mail for their 24-hour 
report, the report would no longer be timely filed when postmarked. 
Moreover, it is unlikely that reports filed by certified or registered 
mail would be received by the Commission within 24 hours of the making 
of the expenditure. Since it appears that some of the current filing 
methods will not satisfy the new filing deadlines, proposed revisions 
to paragraph (b) of section 100.19 would make it clear that 24-hour 
reports are not included in those reports that are considered timely 
filed when postmarked for registered or certified mail. Proposed 
paragraph (d) of 11 CFR 100.19 would state that 24-hour reports of 
independent expenditures are considered timely filed upon receipt by 
the Commission or the Secretary, as appropriate, in accordance with 11 
CFR 104.4(c).
    A conforming amendment would be added to 11 CFR 100.19(a) to note 
that documents filed using the Commission's electronic filing program 
would be timely filed in accordance with paragraph (c) of that section. 
Additionally, the Commission proposes revising paragraph (a) to say 
``close of business on the prescribed filing date'' to conform with 
paragraph (b) as to

[[Page 23630]]

when, on the filing date, the documents are due. Currently, paragraph 
(a) states that documents are timely filed by the ``close of the 
prescribed filing date,'' while paragraph (b) states that documents 
mailed by first class mail shall be timely filed at the ``close of 
business of the prescribed filing date.''
    In addition, conforming amendments to 11 CFR 104.4(b), 104.5(g) and 
109.2(b) would also clarify that 24-hour reports must be received by 
the appropriate filing authority within 24 hours after the independent 
expenditure is made. Further, the Commission is proposing conforming 
amendments to 11 CFR 104.14(a) regarding the new verification 
requirements for faxed or e-mailed reports of independent expenditures 
and to reference the signature requirements for the electronic filing 
program in 11 CFR 114.18(g).

C. When Is an Independent Expenditure ``Made''? (11 CFR 109.1)

    The statutory amendment and the proposed regulations require 24-
hour reports to be received by the Commission or the Secretary of the 
Senate within 24 hours of the time the independent expenditure is made. 
The Commission is proposing that new paragraph (f) be added to 11 CFR 
109.1 to clarify when an independent expenditure is ``made''. This new 
definition would state that an independent expenditure is made at the 
earliest of three possible events: The first would be when a written 
contract, promise or agreement to make an independent expenditure is 
executed; for example, when a contract to run a newspaper ad is signed. 
The second possible occurrence would be the first date on which the 
communication is disseminated to the public; for example, the first 
time a radio ad is broadcast. The third event triggering the making of 
an independent expenditure would be when the person making the 
expenditure pays for it; for example, when a check is delivered to a 
media firm for production costs or to a television station for an ad to 
be run later. The Commission seeks comments on this new definition. Is 
it necessary? Does it accurately reflect the possible times when an 
independent expenditure would be deemed ``made''? Should the Commission 
attempt to further explain which types of written contracts, promises, 
or agreements would or would not constitute the making of the 
independent expenditure? For example, should only those covering the 
dissemination of a communication be included (e.g., airtime TV buys or 
newspaper space purchases)?

D. Proposed Changes to the Commission's Electronic Filing Program 
(11 CFR 104.18)

    Under current regulations at 11 CFR 104.18(h), those participating 
in the Commission's electronic filing program (either mandatory or 
voluntary) must file FEC Form 5 or Schedule E electronically 
accompanied by a paper copy in order to file a notarized document. The 
new law exempts such electronic filers from filing their reports of 
independent expenditures by fax or electronic mail. In order to afford 
all electronic filers the ability to comply with the new requirement 
that 24-hour reports be received by the Commission within 24 hours, the 
Commission proposes revising 11 CFR 104.18(h) to drop Schedule E and 
FEC Form 5 from the list of reports for which a paper copy follow-up is 
required. The Commission proposes requiring those in the electronic 
filing program to verify all reports of independent expenditures using 
the same process as they would in filing any other report.
    The Commission's electronic filing software, FECFile, currently 
creates Schedule E for electronic filing by political committees. The 
Commission's electronic filing system accepts FEC Form 5 if created by 
another entity using the Commission's specifications (available on the 
FEC Web site, www.fec.gov), but FECFile does not currently create Form 
5. The Commission intends to make FEC Form 5 available in the FECFile 
software package. Note that this software is available for free from 
the Commission.
    The Commission is proposing to reorganize paragraph (h) of section 
104.18 to clarify what paper documents must accompany electronically 
filed reports, and when those paper copies must be filed. The 
Commission also proposes removing FEC Form 5 and Schedule E from the 
list of documents with special signature requirements. Additionally, 
the Commission proposes adding FEC Schedule C-P-1 to the list of 
documents requiring special signatures. Schedule C-P-1 is used by 
Presidential candidates to report loans and lines of credit from 
lending institutions, and, like Schedule C-1 (used by non-Presidential 
committees) requires the lending institution agent's signature.

E. Reports Available on the Internet Within 24 Hours

    Section 502(a) of Public Law 106-346 requires that ``the Commission 
shall make a document which is filed electronically with the Commission 
pursuant to this paragraph accessible to the public on the Internet not 
later than 24 hours after the document is received by the Commission.''
    While the Commission believes that ``electronically'' means filed 
by electronic mail only, the Commission nevertheless proposes making 
available on the Commission's Web site (www.fec.gov) within 24 hours of 
receipt all reports of independent expenditures filed with the FEC 
using facsimile machine, electronic mail, or the FEC's electronic 
filing system. Note that reports of independent expenditures that 
support or oppose only Senate candidates must be filed with the 
Secretary of the Senate. Therefore, because they are not filed with the 
Commission, reports faxed or e-mailed to the Secretary may not be 
available on the Commission's Web site within 24 hours of receipt by 
the Secretary of the Senate. The Commission will, however, make every 
effort to get reports of independent expenditures filed with the 
Secretary on the FEC's Web site as soon as possible after the 
Commission receives the report from the Secretary.

F. Reports of Last Minute Contributions (11 CFR 100.19 and 104.5)

    The Commission also proposes revising its regulations at 11 CFR 
104.5(f) and adding paragraph (e) to 11 CFR 100.19 regarding reports by 
authorized committees receiving contributions of $1,000 or more made 
less than 20 days but more than 48 hours before the day of an election. 
These proposed changes do not stem from P.L. 106-346. The Commission 
has for some time allowed authorized committees to file these reports 
by facsimile machine in addition to other permissible filing methods. 
See Advisory Opinion 1988-32. In the fall of 2000, the Commission began 
allowing 48-hour reports filed with the Commission to be filed on-line 
through its Web site as an additional means of filing those reports. 
Note that 48-hour reports filed with the Secretary of the Senate cannot 
be filed using the on-line program at the Commission's Web site. They 
can, however, be filed by fax to the Secretary of the Senate. The 
proposed revisions to 11 CFR 100.19 and 104.5(f) would recognize those 
filing methods in the regulations.
    Finally, the Commission welcomes comments on any other issues 
raised by the new statutory requirements regarding independent 
expenditure reporting.

[[Page 23631]]

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

    These proposed rules if promulgated, would not have a significant 
economic impact on a substantial number of small entities. The basis of 
this certification is that the Commission is providing most filers with 
less than $50,000 of activity with additional means of complying with 
the law, thereby increasing the filers' flexibility by allowing them to 
choose the most convenient and cost effective filing method. These 
additional filing methods will likely result in a decrease in costs 
from present.

List of Subjects

11 CFR Part 100

    Elections.

11 CFR Part 104

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

11 CFR Part 109

    Elections, Reporting and recordkeeping requirements.

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

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

    1. The authority citation for part 100 would be revised to read as 
follows:

    Authority: 2 U.S.C. 431, 434(a)(11), 434(c) and 438(a)(8).

    2. Section 100.19 would be revised to read as follows:


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

    (a) Except for documents electronically filed under paragraph (c) 
of this section, a document is timely filed upon delivery to the 
Federal Election Commission, 999 E Street, NW., Washington, DC 20463; 
or the Secretary of the United States Senate, Office of Public Records, 
119 D Street NE., Washington, DC 20510 as required by 11 CFR part 105, 
by the close of business of the prescribed filing date.
    (b) A document other than a 24-hour report of an independent 
expenditure under 11 CFR 104.4(b) or 109.2(c) is timely filed upon 
deposit as registered or certified mail in an established U.S. Post 
Office and postmarked no later than midnight of the day of the filing 
date, except that pre-election reports so mailed must be postmarked no 
later than midnight of the fifteenth day before the date of the 
election. Documents sent by first class mail must be received by the 
close of business of the prescribed filing date to be timely filed.
    (c) For electronic filing purposes, a document is timely filed when 
it is received and validated by the Federal Election Commission at or 
before 11:59 p.m., Eastern Standard/Daylight Time, on the filing date.
    (d) A 24-hour report of independent expenditures under 11 CFR 
104.4(b) or 109.2(c) is timely filed when it is received by the 
appropriate filing officer as listed in 11 CFR 104.4(c) within 24 hours 
of the time the independent expenditure was made. In addition to other 
permissible means of filing, a 24-hour report may be filed using a 
facsimile machine or by electronic mail if the filer is not required to 
file electronically in accordance with 11 CFR 104.18.
    (e) In addition to other permissible means of filing, authorized 
committees may file 48-hour notifications of contributions using 
facsimile machines or, if the notifications are being filed with the 
Commission, using the Commission Web site's on line program.

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(i), 434, 
438(a)(8) and (b) and 439a.
    4. Section 104.4 would be amended by revising paragraph (b) to read 
as follows:


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

* * * * *
    (b) 24-hour reports. Reports of any independent expenditures 
aggregating $1,000 or more made after the 20th day, but more than 24 
hours, before 12:01 a.m. of the day of the election, must be received 
by the appropriate officers listed in paragraph (c) of this section 
within 24 hours after such independent expenditure is made. Such report 
shall contain the information required by 11 CFR 104.3(b)(3)(vii) 
indicating whether the independent expenditure is made in support of, 
or in opposition to, the candidate involved. In addition to other 
permissible means of filing, a 24 hour report may be filed using a 
facsimile machine or electronic mail if the filer is not required to 
file electronically in accordance with 11 CFR 104.18. Such report must 
be verified by one of the methods stated in paragraph (b)(1) or (b)(2) 
of this section. Any report verified under either of these methods 
shall be treated for all purposes (including penalties for perjury) in 
the same manner as a document verified by signature.
    (1) For reports filed on paper (e.g., by hand delivery, U.S. Mail 
or facsimile machine), the certification required by 11 CFR 
104.3(b)(3)(vii) must be immediately followed by the handwritten 
signature of the treasurer of the political committee that made the 
independent expenditure and who certifies, under penalty of perjury, 
its independence.
    (2) For reports filed by electronic mail, the certification 
required by 11 CFR 104.3(b)(3)(vii) must be immediately followed by the 
typewritten name of the treasurer of the political committee that made 
the independent expenditure and who certifies, under penalty of 
perjury, its independence.
* * * * *
    5. Section 104.5 would be amended by revising paragraphs (f) and 
(g) to read as follows:


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

* * * * *
    (f) 48 hour notification of contributions. If any contribution of 
$1,000 or more is received by any authorized committee of a candidate 
after the 20th day, but more than 48 hours, before 12:01 a.m. of the 
day of the election, the principal campaign committee of that candidate 
shall notify the Commission, the Secretary of the Senate and the 
Secretary of State, as appropriate, within 48 hours of receipt of the 
contribution. The notification shall be in writing and shall include 
the name of the candidate and office sought by the candidate, the 
identification of the contributor, and the date of receipt and amount 
of the contribution. The notification shall be filed in accordance with 
11 CFR 100.19. The notification shall be in addition to the reporting 
of these contributions on the post-election report.
    (g) 24-hour report of independent expenditures. Statements 
disclosing any independent expenditures aggregating $1,000 or more made 
after the 20th day, but more than 24 hours, before 12:01 a.m. of the 
day of the election, must be received by the appropriate officers 
listed in 11 CFR 104.4(c) within 24 hours after such independent 
expenditure is made. Such statement shall contain the information 
required by 11 CFR 104.3(b)(3)(vii) indicating whether the independent 
expenditure is made in support of, or in opposition to, the candidate 
involved.
* * * * *

[[Page 23632]]

    6. Section 104.14 would be amended by revising paragraph (a) to 
read as follows:


Sec. 104.14  Formal requirements regarding reports and statements.

    (a) Each individual having the responsibility to file a 
designation, report or statement required under this subchapter shall 
sign the original designation, report or statement except that:
    (1) Reports or statements of independent expenditures filed by 
facsimile machine or electronic mail under 11 CFR 104.4(b) or 11 CFR 
109.2 must be verified in accordance with those sections; and
    (2) Reports, designations, or statements filed electronically under 
11 CFR 104.18 must follow the signature requirements of 11 CFR 
104.18(g).
* * * * *
    7. Section 104.18 would be amended by revising paragraph (h) to 
read as follows:


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

* * * * *
    (h) Schedules and forms with special requirements. (1) The 
following are schedules and forms that require the filing of additional 
documents and that have special signature requirements:
    (i) Schedules C-1 and C-P-1, Loans and Lines of Credit From Lending 
Institutions (see 11 CFR 104.3(d)); and
    (ii) Form 8, Debt Settlement Plan (see 11 CFR 116.7(e)).
    (2) If a person files a report electronically by submitting a 
diskette to the Commission and is required to file any of the schedules 
or forms listed in paragraph (h)(1) of this section, the person shall 
file a paper copy of the required schedule or form with the electronic 
submission, or a digitized version as a separate file in the electronic 
submission, by the close of business on the prescribed filing date.
    (3) If a person files a report electronically by uploading the data 
to the Commission's electronic filing system and is required to file 
any schedules or forms listed in paragraph (h)(1) of this section, the 
person shall file a paper copy or a digitized version of the required 
schedule or form by the close of business on the prescribed filing 
date.
* * * * *

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

    8. The authority citation for part 109 would continue to read as 
follows:

    Authority: 2 U.S.C. 431(17), 434(a)(11) and (c), 438(a)(8), and 
441d.

    9. Section 109.1 would be amended by adding new paragraph (f) to 
read as follows:


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

* * * * *
    (f) An independent expenditure is made on the earliest of--
    (1) The date on which a written contract, including a media 
contract, promise or agreement to make an independent expenditure is 
executed;
    (2) The first date on which the communication is printed, broadcast 
or otherwise publicly disseminated; or
    (3) The date on which the person making the independent expenditure 
pays for it.
    10. Section 109.2 would be amended by revising the introductory 
text in paragraphs (a) and (a)(1) by revising paragraphs (a)(1)(v), 
(a)(2), and (b) by redesignating paragraph (a)(1)(vi) as paragraph 
(a)(1)(vii) and adding new paragraphs (a)(1)(vi) and (c) to read as 
follows:


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

    (a) Every person other than a political committee, who makes 
independent expenditures aggregating in excess of $250 in a calendar 
year shall file a verified statement or report on FEC Form 5 with the 
Commission or Secretary of the Senate in accordance with 11 CFR 
104.4(c).
    (1) If a verified statement is submitted, the statement shall 
include:
* * * * *
    (v) A verified certification under penalty of perjury as to whether 
such expenditure was made in cooperation, consultation or concert with, 
or at the request or suggestion of any candidate or any authorized 
committee or agent thereof;
    (vi) A verified certification under penalty of perjury as to 
whether the expenditure involved the financing, dissemination, 
distribution or republication of any campaign materials prepared by a 
candidate or a candidate's agent or authorized committee; and
* * * * *
    (2) Reports or statements filed under this section shall be filed 
at the end of the reporting period (quarterly, pre-election, post-
election, semi-annual or annual) (See 11 CFR 104.5)) during which any 
independent expenditure which aggregates in excess of $250 is made and 
in any reporting period thereafter in which additional independent 
expenditures are made.
    (b) Reports of independent expenditures aggregating $1,000 or more 
made by any person after the twentieth day, but more than 24 hours 
before 12:01 a.m of the day of an election must be received by the 
appropriate officers as listed in paragraph (c) of this section within 
24 hours after such independent expenditure is made. Such report or 
statement shall contain the information required by paragraph (a) of 
this section indicating whether the independent expenditure is made in 
support of, or in opposition to, a particular candidate.
    (c) Verification of independent expenditure statements and reports: 
For reports filed on paper (e.g., by hand delivery, U.S. Mail or 
facsimile machine), the certification required by paragraphs (a)(1)(v) 
and (a)(1)(vi) of this section must be immediately followed by the 
handwritten signature of the person who made the independent 
expenditure and who certifies, under penalty of perjury, its 
independence. For reports filed by electronic mail, the certification 
required by paragraphs (a)(1)(v) and (a)(1)(vi) of this section must be 
immediately followed by the typewritten name of the person who made the 
independent expenditure and who certifies, under penalty of perjury, 
its independence.

    Dated: May 3, 2001.
Danny L. McDonald,
Chairman, Federal Election Commission.
[FR Doc. 01-11587 Filed 5-8-01; 8:45 am]
BILLING CODE 6715-01-P