[Federal Register Volume 67, Number 230 (Friday, November 29, 2002)]
[Rules and Regulations]
[Pages 71075-71078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30265]


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FEDERAL ELECTION COMMISSION

11 CFR Parts 104, 106, and 300

[NOTICE 2002-24]


FEC Policy Statement: Interim Reporting Procedures

AGENCY: Federal Election Commission.

ACTION: Statement of policy.

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SUMMARY: During the transition period following the effective date of 
the Bipartisan Campaign Reform Act of 2002 (``BCRA''), the Commission 
intends to exercise its discretion by not pursuing the political 
committees and other persons and entities addressed below for possible 
violations of the reporting statutes and regulations covered by the 
instructions set out in this policy statement if they fully adhere to 
those instructions and timely file the described reports. The 
limitations on the scope and duration of the policy are discussed in 
detail below.

FOR FURTHER INFORMATION CONTACT: Mr. John C. Vergelli, Acting Assistant 
General Counsel, Mr. Jonathan M. Levin, Senior Attorney, Mr. Gregory 
Scott, Assistant Staff Director for Information, and Ms. Debbie 
Chacona, Reports Analysis Division Chief of Party/Non-Party Branch, 999 
E Street, NW., Washington, DC 20463, (202) 694-1650 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: Congress established a 90-day period during 
which the Commission was required to promulgate regulations 
implementing Title I of BCRA regarding certain national, state, and 
local party committee activities, including reporting of Federal 
election activity and certain allocable expenses. This period ended on 
June 25, 2002. Congress also required the Commission to complete the 
remaining BCRA rulemakings, including those regarding other reporting 
requirements, in 270 days, which is December 22, 2002. The Commission 
adopted final rules implementing Title I on June 25, 2002. Prohibited 
and Excessive Contributions: Non-Federal Funds or Soft Money; Final 
Rule, 67 FR 49,064 (July 29, 2002) (``Soft Money Final Rules''). The 
Commission has also completed four other rulemakings to implement BCRA: 
(1) Final Rules on Electioneering Communications, 67 FR 65190 (October 
23, 2002); (2) Interim Final Rules Regarding FCC Database on 
Electioneering Communications, 67 FR 65212 (October 23, 2002); (3) 
Final Rules on Reorganization of Regulations on Contributions and 
Expenditures, 67 FR 50582 (August 5, 2002); and (4) Final Rules on 
Contribution Limitations and Prohibitions, 67 FR 69928 (November 19, 
2002). The Commission notes that other BCRA-related reporting rules 
(e.g., electioneering communications, independent expenditures) are not 
yet finalized, but are expected to be before December 22, 2002, 
including the Consolidated Reporting Rulemaking, which the Commission 
is scheduled to complete on December 12, 2002. Issuance of new and 
revised reporting forms, software and instructions is dependent upon 
the finalization of all the reporting rules. However, BCRA's reporting 
requirements became effective on November 6, 2002. The Commission is in 
the process of updating its reporting forms, software, and instructions 
to incorporate all the new regulations, and will need a period of time 
after December 22, 2002, to complete this process. In the interim, 
filers will continue to use existing disclosure forms and software for 
their December 5th Post General Election Report, January 31st Year End 
Report and, for monthly filers only, the February Monthly Report, which 
covers January 2003.
    BCRA introduced new reporting responsibilities for political party 
committees and other reporting entities and significantly changed 
certain existing requirements. Among the significant changes introduced 
by BCRA are the reporting by State, district, and local party 
committees of Federal election activities (``FEA''), including the 
allocation of some of those activities between Federal funds and 
``Levin'' funds, and revisions in those committees' allocations of 
payments between Federal and non-Federal funds. See 11 CFR 300.2(i), 
300.36, 106.7, and 104.17. In addition, BCRA introduced provisions for 
Federal candidates and their committees with respect to candidate 
funding of his or her own campaign in the form of the ``millionaires 
provision'' and provisions for reporting by individuals and entities 
making electioneering communications. See 2 U.S.C. 434(a)(6)(B), 
434(f), and 441a-1(b).
    As new forms are now being developed to meet the new requirements, 
the Commission concludes that a period of transition and adjustment 
with respect to reporting is needed, including allowance for the 
continued use of the ballot composition formula in the Post-General and 
Year End Reports. To assist filers during this transition period, the 
Commission has developed the interim disclosure

[[Page 71076]]

procedures set forth below.\1\ These procedures address BCRA-related 
transactions not contemplated by the existing reporting forms and 
filing software. Questions concerning these procedures may be directed 
to the FEC's Information Division, Reports Analysis Division or 
Electronic Filing Office, as appropriate.
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    \1\ These procedures also apply to filers involved in special 
elections held during this period, including the November 30 and 
January 4 special elections in Hawaii. Those filers should pay 
special attention to the instructions for disclosing ``Federal 
Election Activity'' (defined in 11 CFR 100.24) and ``Electioneering 
Communications'' (defined in 11 CFR 100.29), since both are 
triggered by proximity to an election. See 11 CFR 300.33, 300.36, 
and proposed 104.20.
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    Hence, the Commission intends to exercise its discretion by not 
pursuing the committees and other persons and entities addressed below 
for possible violations of the reporting statutes and regulations 
covered by the instructions set out in this policy statement if the 
filers fully adhere to those instructions and timely file the reports.

Interim Reporting Procedures

Interim Disclosure Procedures for State, District and Local Party 
Committees

1. Reporting Allocable Administrative and Generic Voter Drive Expenses 
(that are not Federal Election Activity (FEA)) for November and 
December 2002
    For the December 5th Post General Election report and the January 
31st Year End report only, state, district and local party committees 
may continue to allocate administrative and generic voter drive 
expenses according to the ballot composition ratio for the 2001-2002 
election cycle. Committees should report this activity just as they 
always have: payments should be disclosed on Schedule H4, and transfers 
from the nonfederal account should appear on Schedule H3. Committees 
need not submit a new Schedule H1.
2. Reporting Allocable Exempt Activities (that are not FEA) for 
November and December 2002
    For the December 5th Post General Election report and the January 
31st Year End report only, state, district and local party committees 
may continue to allocate payments for exempt activities based on the 
time or space devoted to federal candidates, as compared to the time or 
space of the entire communication. Committees should report this 
activity just as they always have: payments should be disclosed on 
Schedule H4, and transfers from the nonfederal account should appear on 
Schedule H3.
3. Reporting Receipts of ``Levin Funds''
[sbull] Paper Filers:

--Using a separate Schedule A, itemize each receipt (regardless of 
amount) as a memo entry. Do not include these receipts in totals or on 
the Detailed Summary Page.
--IMPORTANT: Label the Schedule A ``Levin funds.''
--Disclose total ``Levin fund'' receipts as a lump sum in a cover memo 
attached to the report.

[sbull] E-Filers:

--On a Schedule A, itemize each receipt (regardless of amount) as a 
memo entry. These receipts will not be included in totals or on the 
Detailed Summary Page.
--IMPORTANT: Use the text entry description field to label the receipt 
as ``Levin funds''
--Disclose total ``Levin fund'' receipts as a lump sum using a text 
record.

    Note: During the transition period, the Commission will allow 
committees to amend reports to disclose as Levin funds receipts that 
were not initially disclosed as such. The Commission plans to 
address this issue more broadly when it finalizes the reporting and 
filing procedures for BCRA in 2003.

4. Reporting Disbursements for Non-Allocable (100% federal) ``Federal 
Election Activities'' (i.e., Public Communications and Certain Salary 
Payments)
[sbull] Paper Filers:

--Use a separate Schedule B labeled ``FEA--100% Federal'' to disclose 
each disbursement, regardless of amount.
--Adjust the totals on the completed Detailed Summary Page by adding 
the total ``FEA--100% Federal'' to line 31 ``Total Federal 
Disbursements.''

[sbull] E-Filers:

--Using Schedule B as a model, submit a Form 99 (miscellaneous text 
submission) labeled ``FEA--100% Federal'' disclosing for each 
disbursement, regardless of amount:

    [sbull] The name of the committee;
    [sbull] The name, mailing address, city, state and zip code for 
each payee;
    [sbull] The date and amount; and
    [sbull] The purpose of the disbursement.

--To account for these disbursements on your regular report (e.g., 2002 
Year End Report), adjust the cash on hand figure on line 8 of the 
Summary Page.
--Examples of these transactions in FECFile are available on the 
Commission's BCRA web page at http://www.fec.gov/pages/bcra/bcra_update.htm.
5. Reporting the Allocation Formula for Paying Allocable ``Federal 
Election Activities,'' if any, Conducted in 2002
    Use the table below to determine the appropriate formula for 
allocating ``Federal Election Activities,'' if any, conducted between 
November 6, 2002, and December 31, 2002.

------------------------------------------------------------------------
  2002 Races on general election ballot          Federal percentage
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A Senate candidate was on the ballot in    21% Federal
 my state in the 2002 General election.
A Senate candidate was not on the ballot   15% Federal
 in my state in the 2002 General election.
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[sbull] Paper Filers

--Attach a cover letter, labeled ``H1-FEA,'' to disclose the applicable 
federal percentage for allocable ``federal election activity.''

[sbull] E-Filers

--Add a text record, labeled ``H1-FEA,'' to disclose the applicable 
federal percentage for allocable ``federal election activity.''
6. Reporting the Allocation Formula Used for Paying Allocable ``Federal 
Election Activities'' and for Administrative Expenses and the Cost of 
Generic Voter Drives, as of January 1, 2003
    Use the table below to determine the appropriate allocation formula 
to use on or after January 1, 2003.

------------------------------------------------------------------------
  2004 Races on general election ballot          Federal percentage
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Presidential and Senate candidates will    36% Federal
 both be on the ballot in my state in the
 next regular federal general election.
Presidential candidate, but not a Senate   28% Federal
 candidate, will be on the ballot in my
 state in the next regular federal
 general election.
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    On the first report disclosing 2003 activity (e.g., February 20th 
Monthly Report):

[sbull] Paper Filers

--Attach a cover letter, labeled ``H1-FEA,'' to disclose the applicable 
federal percentage for allocable ``federal election activity.''
--Do not use the current version of Schedule H-1.

[sbull] E-Filers

--Add a text record, labeled ``H1-FEA,'' to disclose the applicable 
federal percentage for allocable ``federal election activity.''

[[Page 71077]]

7. Reporting Disbursements for ``Federal Election Activities'' 
Allocated Between Federal Funds and ``Levin Funds''
[sbull] Paper Filers

--Using Schedule H4 as a model, submit a cover letter labeled ``H6-
Shared FEA,'' disclosing:
     [sbull] The name of the committee;
     [sbull] The name, mailing address, city, state and zip code for 
each payee;
     [sbull] The date of each transaction;
     [sbull] The category of federal election activity (e.g., voter 
registration);
     [sbull] The year-to-date total for the activity;
     [sbull] The purpose of disbursement;
     [sbull] The federal share of each expense;
     [sbull] The ``Levin fund'' share of each expense; and
     [sbull] The combined federal/Levin total for each entry.
--As on Schedule H4, multiple entries may appear on each page, and 
should be subtotaled by page and totaled on the last page.
--Adjust the totals on the completed Detailed Summary Page by:
     [sbull] Adding the combined federal and Levin fund total from the 
last page to the total for line 30 ``Total Disbursements;'' and
     [sbull] Adding the total federal share from the last page to the 
total for line 31 ``Total Federal Disbursements.''

[sbull] E-Filers

--Using Schedule H4 as a model, submit a Form 99 (miscellaneous text 
submission) labeled ``H6-Shared FEA,'' disclosing:
     [sbull] The name of the committee;
     [sbull] The report to which the activity relates (e.g., 2002 Year 
End Report);
     [sbull] The name, mailing address, city, state and zip code for 
each payee;
     [sbull] The date of each transaction;
     [sbull] The category of federal election activity (e.g., voter 
registration);
     [sbull] The year-to-date total for the activity;
     [sbull] The purpose of disbursement;
     [sbull] The federal share of each expense;
     [sbull] The ``Levin fund'' share of each expense; and
     [sbull] The combined federal/Levin total for each entry.
--As on Schedule H4, multiple entries may appear on each page of the 
H6, and should be subtotaled by page and totaled on the last page.
--To account for these disbursements on your regular report (e.g., 2002 
Year End Report), adjust the cash on hand figure on line 8 of the 
Summary Page.
--Examples of these transactions in FECFile are available on the 
Commission's BCRA Web page at http://www.fec.gov/pages/bcra/bcra_update.htm.
8. Reporting Transfers of ``Levin Funds'' Into the Federal Account for 
Shared ``Federal Election Activity''
[sbull] Paper Filers:

--Using Schedule H3 as a model, submit a cover letter labeled ``H5-
Transfers of Levin Funds for Shared FEA,'' disclosing:
     [sbull] The name of the committee;
     [sbull] The name of the account (i.e., ``Levin'');
     [sbull] The date of the transfer; and
     [sbull] The categorical breakdown of the transfer received on that 
date (e.g., total voter registration, total GOTV, etc.).
--As on Schedule H3, transfers must be segregated by date on the H5. It 
is permissible, however, to include transfers occurring on multiple 
dates on each page, as long as they are segregated by date.
--Aggregate transfers by category should appear at the bottom of the 
last page of H5.
--Adjust the totals on the completed Detailed Summary Page by adding 
the combined Levin fund transfers to the total for line 19 ``Total 
Receipts.''
--Do not adjust the total for line 20 ``Total Federal Receipts.''

[sbull] E-Filers

--Using Schedule H3 as a model, submit a Form 99 (miscellaneous text 
submission) labeled ``H5-Transfers of Levin Funds for Shared FEA,'' 
disclosing:
    [sbull] The name of the committee;
    [sbull] The name of the account (i.e., ``Levin'');
    [sbull] The report to which the activity relates (e.g., 2002 Year 
End Report);
    [sbull] The date of the transfer; and
    [sbull] The categorical breakdown of the transfer received on that 
date (e.g., total voter registration, total GOTV, etc.).

--As on Schedule H3, transfers must be grouped by date on the H5. 
However, unlike H3, it is permissible to include transfers occurring on 
multiple dates on a single page, so long as the transfers remain 
grouped by date.
--Total Levin fund transfers by category should appear at the bottom of 
the last page of H5.
--To account for these receipts on your regular report (e.g., 2002 Year 
End Report), adjust the cash on hand figure on line 8 of the Summary 
Page.
--Examples of these transactions in FECFile are available on the 
Commission's BCRA web page at http://www.fec.gov/pages/bcra/bcra_update.htm.

Interim Disclosure Procedures for Federal Candidates and Campaign 
Committees

1. Additional Registration Information Pursuant to the ``Millionaires 
Provision''
    All candidates seeking election to federal office on/after January 
1, 2003, must provide an e-mail address, a fax number and a declaration 
of intent to expend personal funds.

    [sbull] Paper Filers:

--Attach a cover memo to FEC Form 2, Statement of Candidacy, disclosing 
an e-mail address, a fax number and a declaration of intent to expend 
personal funds.

    [sbull] The declaration should read: ``With respect to this 
election, I intend to expend personal funds totaling [fill in 
amount].''

    [sbull] E-Filers:

--Include with Form 2, Statement of Candidacy, a text record disclosing 
an e-mail address, a fax number and a declaration of intent to expend 
personal funds.

    [sbull] The declaration should read: ``With respect to this 
election, I intend to expend personal funds totaling [fill in 
amount].''

Interim Disclosure Procedures for Other Types of Filers

1. 24-Hour Notice of ``Electioneering Communications''
    E-mail or fax a report to the FEC disclosing:
    [sbull] Name, address, occupation and name of employer or principal 
place of business of the individual or person making the communication;
    [sbull] Name, address, occupation and name of employer or principal 
place of business of any person sharing or exercising control over the 
person making the communication;
    [sbull] Name, address, occupation and name of employer or principal 
place of business of the custodian of the books and accounts from which 
the disbursements for the communication was made;
    [sbull] If the person making the communication pays for it 
exclusively from a segregated bank account, the name and address of 
persons who donate $1,000 or more to that account, including the date 
and amount of those donations;
    [sbull] If the person making the communication does not pay for it 
exclusively from a segregated bank account, the name and address of 
persons who donate $1,000 or more to the person making the 
communication (regardless of whether those funds are

[[Page 71078]]

used to finance the communication), including the date and amount of 
those donations;
    [sbull] Disbursements of more than $200, including the name and 
address of the payee, date, amount and purpose of the disbursement, the 
name of the federal candidate, and the election identified in the 
communication;
    [sbull] Total donations received and disbursements made in this 
report;
    [sbull] Aggregate disbursements year-to-date;
    [sbull] The disclosure date (i.e., the date when the communication 
was first publicly distributed); and
    [sbull] The following statement: ``Under penalty of perjury, I 
certify that this report is true, correct and complete.'' followed by 
the name/signature of the person making that statement and the date.\2\
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    \2\ Submission of false, erroneous or incomplete information may 
subject the person signing this report to the penalties of 2 U.S.C. 
437g.

    Dated: November 22, 2002.
David M. Mason,
Chairman, Federal Election Commission.
[FR Doc. 02-30265 Filed 11-27-02; 8:45 am]
BILLING CODE 6715-01-P