[Federal Register Volume 68, Number 51 (Monday, March 17, 2003)]
[Rules and Regulations]
[Pages 12572-12580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5957]


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FEDERAL ELECTION COMMISSION

11 CFR Part 111

[NOTICE 2003--6]


Administrative Fines

AGENCY: Federal Election Commission.

ACTION: Final rules and transmittal of regulations to Congress.

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SUMMARY: The Commission is amending its administrative fines 
regulations to reduce the civil money penalties for political 
committees with less than $50,000 in financial activity in a reporting 
period that file reports late or that do not file them at all. The 
revised rules create two additional levels-of-activity brackets for 
such committees to make further distinctions in the amount of the civil 
money penalty assessed. The amendments also change the method for 
calculating the ``level of activity'' on which civil money penalties 
are based for unauthorized committees by excluding certain non-Federal 
activity from the calculation. Additionally, these amended rules: 
clarify how late filers and non-filers will be notified of reason-to-
believe findings, final determinations and other actions; and clarify 
the factors that will not be considered ``extraordinary circumstances'' 
when findings or penalties are challenged. Further information is 
provided in the SUPPLEMENTARY INFORMATION that follows.

EFFECTIVE DATE: April 16, 2003.

FOR FURTHER INFORMATION CONTACT: Ms. Mai T. Dinh, Acting Assistant 
General Counsel, or Ms. Dawn M. Odrowski, Attorney, at 999 E Street, 
NW., Washington, DC., 20463, (202) 694-1650 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: The Commission is issuing final rules to 
make certain revisions to its administrative fines program. The program 
enables the Commission to adjudicate reporting violations of section 
434(a) of the Federal Election Campaign Act of 1971, as amended 
(``FECA'' or ``Act''), 2 U.S.C. 431 et seq., by political committees 
and their treasurers who fail to file, or untimely file, required 
campaign finance disclosure reports. The adjudication employs a 
streamlined procedure that affords respondents due process rights and 
assesses a civil money penalty for violations based on published 
penalty schedules. The Commission established the administrative fines 
program in July 2000 pursuant to 2 U.S.C. 437g(a)(4). See Treasury and 
Government Appropriations Act, 2000, Pub. L. 106-58, 106th Cong. Sec.  
640, 113 Stat. 430, 476-77 (1999), as amended by the Treasury and 
General Government Appropriations Act, 2002, Pub. L. 107-67, 107th 
Cong. Sec.  642, 115 Stat. 514, 555 (2001) and Explanation and 
Justification for Administrative Fines, 65 FR 31787 (May 19, 2000) and 
66 FR 59680 (November 30, 2001). The sunset date of the program is 
December 31, 2003. See 11 CFR 111.30.
    Under the Administrative Procedures Act, 5 U.S.C. 553(d), and the 
Congressional Review of Agency Rulemaking Act, 5 U.S.C. 801(a)(1), 
agencies must submit final rules to the Speaker of the House of 
Representatives and the President of the Senate and publish them in the 
Federal Register at least 30 calendar days before they take effect. The 
final rules on administrative fines were transmitted to Congress on 
March 7, 2003.

Explanation and Justification

    The Commission initiated this rulemaking by publishing a Notice of 
Proposed Rulemaking (``NPRM'') on April 25, 2002 in which it sought 
comment on proposed rules amending the current administrative fines 
regulations based on its experience with the program. 67 FR 20461 
(April 25, 2002). The NPRM sought comment on proposed amendments to 
lower the civil money penalties for all late- and non-filers, and to 
clarify how it notifies respondents in the administrative fines program 
of reason-to-believe findings and final determinations. The NPRM also 
sought comment generally on: (1) Whether to limit the scope of the 
civil money penalty reduction to those committees with less than 
$50,000 in financial activity in a reporting period, or alternatively, 
to limit reduction to the fine schedule applicable to late-or non-filed 
non-election sensitive reports; (2) Whether to clarify that certain 
circumstances do not constitute ``extraordinary circumstances'' for 
purposes of challenging a reason-to-believe finding; and (3) Whether to 
revise the method of calculating the ``level of activity'' on which 
civil money penalties are based to exclude certain non-Federal 
activity.
    The comment period closed on May 28, 2002. Comments were received 
from FEC Watch and from the law firm of Sandler, Reiff and Young.

11 CFR 111.35 If the Respondent Decides to Challenge the Alleged 
Violation Or the Proposed Civil Money Penalty, What Should the 
Respondent Do?

    11 CFR 111.35(b) sets forth the requirements for written responses 
that a respondent may choose to make to challenge a reason-to-believe 
finding or a proposed civil money penalty. It contains specific 
circumstances that the Commission will consider in determining whether 
to levy a civil money penalty, including the existence of 
``extraordinary circumstances'' that were beyond the respondents' 
control, that continued for at least 48 hours, and that prevented the 
timely filing of a report. Paragraph (b)(4) provides four broad 
examples of circumstances that the Commission will not consider to be 
``extraordinary.'' Respondents have raised a number of other defenses 
that the Commission has determined are not ``extraordinary 
circumstances.''
    The NPRM sought comment as to whether 11 CFR 111.35 should be 
revised to state more specifically the kinds of circumstances that the 
Commission will not accept as an

[[Page 12573]]

``extraordinary circumstances'' defense. Neither of the commenters 
addressed this issue.
    In the final rules that follow, the Commission adds to section 
111.35(b)(4) two more examples of circumstances that are not considered 
extraordinary. Specifically, paragraph (b)(4)(iii) of 11 CFR 111.35 is 
being amended to include, in addition to staff illness, staff 
``inexperience'' and ``unavailability.'' The revision also clarifies 
that the term ``staff'' includes the treasurer. The Commission strongly 
encourages political committees to name an assistant treasurer so that 
their financial activities will not be disrupted, thus avoiding 
violating the reporting requirements when their treasurer is 
unavailable.

11 CFR 111.43 What are the Schedules of Penalties?

1. Revised Civil Money Penalty Schedules
    The NPRM proposed amendments to the civil money penalty schedule 
for election sensitive and non-election sensitive reports that would 
have lowered civil money penalties for all late- and non-filed reports. 
The Commission was concerned that, based on its experience with the 
administrative fines program, the published fines schedules for 
political committees with lower levels of financial activity, generally 
below $50,000 in a reporting period, may have been too high. Committees 
in this category are often those of candidates who have lost an 
election or who have withdrawn from the race and fail to continue 
filing the required disclosure reports until they are eligible to 
terminate. Fines for these committees can be relatively high due to 
their failure to file because the civil money penalties are calculated 
using the estimated level of activity from previously filed reports. 
Therefore, the fines may create a hardship for some authorized 
committees and their treasurers since many unsuccessful campaigns lack 
fundraising ability and their treasurers, who are sometimes volunteers, 
are legally liable for the fines.
    The Commission was also concerned that the civil money penalty 
schedules at all levels of activity may result in fines that are 
substantial compared with civil penalties for other types of FECA 
violations that the Commission approves in conciliation agreements 
reached through the traditional enforcement process. See 2 U.S.C. 
437g(a). The concern was exacerbated by the fact that the 25% 
recidivist factor was beginning to take effect for repeat violations.
    The Commission sought comment in the NPRM on the impact of lowering 
civil money penalties across the board, specifically: Whether the 
proposed reductions would still provide an incentive for committees to 
file timely their reports and not become merely a cost of doing 
business, and whether reductions would affect committees' decisions to 
challenge reason-to-believe findings and proposed civil money 
penalties. The Commission specifically sought comment on two 
alternatives to lowering the civil money penalties across the board: 
Lowering the penalties only for committees with levels of financial 
activity below $50,000 per report, or lowering the penalties only for 
non-election sensitive reports.
    One of the commenters generally agreed with more lenient treatment 
for committees with minimal financial activity during a reporting 
period because such committees are often ``defunct, moribund or winding 
down and are often staffed by volunteer treasurers who are not able to 
deal with complex federal election laws and regulations.'' This 
commenter did not specifically address reducing fines overall but 
rather urged a change in calculating the ``level of activity'' on which 
the administrative fines are based. (See below).
    The other commenter generally disagreed with lowering the civil 
money penalties ``until an adequate administrative record can be 
established.'' The commenter rejected as a justification for lowering 
fines across the board the concern that civil penalties in the 
administrative fines program were high relative to civil penalties 
approved in conciliation agreements for other types of FECA violations. 
The commenter argued that this disparity could also be interpreted as 
evidence that civil penalties in conciliation agreements are too low. 
The commenter also suggested that the recidivist factor could be 
lowered if the Commission was concerned it might contribute to 
disproportionately high civil penalties. This commenter further urged 
that the standard applied in adjusting the fines should be whether the 
fines are higher than necessary to serve as incentive to file reports 
timely. The commenter referred to an April 25, 2002, Commission press 
release that credited the administrative fines program with reducing 
the percentage of late filers from 24% to 11% between 1998 and 2000. 
The commenter noted that, although 11% non-compliance is still too 
high, these gains in disclosure should not be undermined without 
substantial justification. Finally, the commenter urged that if the 
Commission reduced the fines, it should selectively target the 
reduction at committees with lower levels of financial activity where, 
according to the NPRM, the most undesirable results have occurred.
    Neither commenter opined on whether lowering the fines would affect 
committees' decisions to challenge reason-to-believe findings or 
proposed civil money penalties.
    Based on its continued experience with the administrative fines 
program, the Commission has decided to target the reductions in the 
civil money penalty schedules to committees with levels of financial 
activity below $50,000 per report. As of January 31, 2003, 60% of the 
political committees against whom the Commission made reason-to-believe 
findings and proposed a civil money penalty had under $50,000 of 
financial activity on the late-or non-filed report. As noted in the 
NPRM, many committees in this category are winding down, or are 
established by candidates who have lost, or have withdrawn from, an 
election. The concern that a reduction in fines will serve as a 
disincentive to file timely future reports is not as relevant for such 
committees. Moreover, the fact that these committees still face a fine 
continues to provide an incentive for them to file a final report.
    Although the Commission has decided not to reduce civil money 
penalties ``across the board,'' it notes that it has revised its method 
of calculating the ``level of activity'' to exclude receipts and 
disbursements for unauthorized committees that report a non-Federal 
share of allocated Federal/non-Federal activity. This change, discussed 
below, will effectively lower ``across the board'' penalties faced by 
certain unauthorized committees that allocate expenses between Federal 
and non-Federal accounts. This will result in penalties that are more 
reflective of a committee's level of participation in Federal 
elections.
    Accordingly, the final rules at amended 11 CFR 111.43 include two 
sets of civil money penalty schedules. Paragraphs (a)(1) and (b)(1) 
maintain the previous penalty schedules for non-election sensitive and 
election sensitive reports, respectively, with due dates before the 
effective date of these rules. Paragraphs (a)(2) and (b)(2) include new 
schedules that reduce civil money penalties for non-election sensitive 
and election sensitive reports of committees with less than $50,000 in 
activity. These new schedules will apply to reports that

[[Page 12574]]

are due on or after the effective date of these rules.
    The previous and current civil money penalty schedules for late 
filers have two components: A base amount that increases with the level 
of activity reflected in a report and an additional charge for each day 
a report is late. The previous and current schedules for nonfilers 
consist of a base amount that increases with the level of activity. 
Both late and nonfilers are subject to a recidivist escalator that 
increases the penalty by 25% for each previous violation.
    The reduction in civil money penalties for committees with levels 
of activity below $50,000 is being accomplished in two ways. First, the 
bracket previously covering levels of activity of under $25,000 is now 
divided into three brackets covering levels of activity of $1-
$4,999.99, $5,000-$9,999.99 and $10,000-$24,999.99, respectively. This 
subdivision makes more refined distinctions in penalties for committees 
at the lowest levels of financial activity. Second, the base amount 
and/or the per day charge is being reduced in each level of activity 
bracket below $50,000. The civil money penalty reductions at these 
levels are identical to the reductions proposed in the NPRM. The civil 
money penalty schedules for committees with levels of activity of 
$50,000 and above are unchanged from former 11 CFR 111.43(a) and (b).
    For late-filed non-election sensitive reports with levels of 
activity of $1-$4,999.99, the per day charge is being reduced from $25 
to $5 and the base penalty is being reduced from $100 to $25; for 
reports with levels of activity of $5,000-$9,999.99, the per day charge 
is being reduced from $25 to $5 and the base penalty is being reduced 
from $100 to $50; for reports with levels of activity of $10,000-
$24,999.99, the per day charge is being reduced from $25 to $5 and the 
base penalty remains at $100; and for reports with levels of activity 
of $25,000-$49,999.99, the per day charge is being reduced from $50 to 
$20 and the base penalty remains at $200. Reductions in the civil money 
penalties for late-filed non-election sensitive reports with less than 
$50,000 of activity range between 12% and 79.4%. A chart illustrating 
the penalty reductions for late-filed non-election sensitive reports 
follows:

------------------------------------------------------------------------
                                                     Civil money penalty
                               Civil money penalty   for late filed non-
                               for late-filed non-   election sensitive
 Level of activity in report   election sensitive     reports due on or
                               reports due before      after April 16,
                                 April 16, 2003.            2003.
------------------------------------------------------------------------
$1-4,999.99 a...............  [$100 + ($25 x        [$25 + ($5 x Number
                               Number of days        of days late)] x [1
                               late)] x [1 + (.25    + (.25 x Number of
                               x Number of           previous
                               previous              violations)].
                               violations)].
$5,000-$9,999.99............  [$100 + ($25 x        [$50 + ($5 x Number
                               Number of days        of days late)] x [1
                               late)] x (.25 x       + (.25 x Number of
                               Number of previous    previous
                               violations)].         violations)].
$10,000-$24,999.99..........  [$100 + ($25 x        [$100 + ($5 x Number
                               Number of days        of days late)] x [1
                               late)] x [1 + (.25    + (.25 x Number of
                               x Number of           previous
                               previous              violations)].
                               violations)].
$25,000-49,999.99...........  [$200 + ($50 x        [$200 + ($20 x
                               Number of days        Number of days
                               late)] x [1 + (.25    late)] x [1 + (.25
                               x Number of           x Number of
                               previous              previous
                               vilations)].          violations)].
------------------------------------------------------------------------

    Non-election sensitive reports are deemed not filed if they are 
filed more than 30 days late or not filed at all. The final rule at 11 
CFR 111.43(a)(2)(iii) reduces the base penalty for reports with levels 
of activity of $1-$4,999.99 from $900 to $250; for reports with levels 
of activity of $5,000-$9,999.99 from $900 to $300; for reports with 
levels of activity of $10,000-$24,999.99 from $900 to $500; and for 
reports with levels of activity of $25,000 $49,999.99 from $1800 to 
$900. Reductions in the civil money penalties for non-filed non-
election sensitive reports with less than $50,000 in activity range 
between 50% and 72%. A chart illustrating the penalty reductions for 
non-filed non-election sensitive reports follows:

------------------------------------------------------------------------
                                                     Civil money penalty
                               Civil money penalty    for non-election
                                for non-election     sensitive non-filed
 Level of activity in report   sensitive non-filed    reports due on or
                               reports due before      after April 16,
                                 April 16, 2003.            2003.
------------------------------------------------------------------------
$1-4,999.99.................  $900 x [1 + (.25 x    $250 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
$5,000-9,999.99.............  $900 x [1 +(.25 x     $300 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
$10,000-24,999.99...........  $900 x [1 + (.25 x    $500 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
$25,000-49,999.99...........  $1800 x [1 + (.25 x   $900 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
------------------------------------------------------------------------

    For late-filed election sensitive reports with levels of activity 
of $1-$4,999.99, the per day charge is being reduced from $25 to $10 
and the base penalty is being reduced from $150 to $50; for reports 
with levels of activity of $5,000-$9,999.99, the per day charge is 
being reduced from $25 to $10 and the base penalty is being reduced 
from $150 to $100; for reports with levels of activity of $10,000-
$24,999.99, the per day charge is being reduced from $25 to $10 and the 
base penalty remains at $150; and for reports with levels of activity 
of $25,000-$49,999.99, the per day charge is being reduced from $50 to 
$25 and the base charge remains at $300. Reductions in the civil money 
penalties for late-filed election sensitive reports with less than 
$50,000 of activity range between 7.1% and 65.7%. A chart illustrating 
the penalty reductions for late-filed election sensitive reports 
follows:

[[Page 12575]]



------------------------------------------------------------------------
                                                     Civil money penalty
                               Civil money penalty     for late-filed
                                 for late-filed      election sensitive
 Level of activity in report   election sensitive     reports due on or
                               reports due before      after April 16,
                                 April 16, 2003.            2003.
------------------------------------------------------------------------
$1-$4,999.99................  [$150 + ($25 x        [$50 + ($10 x Number
                               Number of days        of days late)] x [1
                               late)] [1 + (.25 x    + (.25 x Number of
                               Number of previous    previous
                               violations)].         violations)]
$5,000-$9,999.99............  [$150 + ($25 x        [$100 + ($10 x
                               Number of days        Number of days
                               late)] x [1 + (.25    late)] x [1 + (.25
                               x Number of           x Number of
                               previous              previous
                               violations)].         violations)]
$10,000-$24,999.99..........  [$150 + ($25 x        [$150 + ($10 x
                               Number of days        Number of days
                               late)] x [1 + (.25    late)] x [1 + (.25
                               x Number of           x Number of
                               previous              previous
                               violations)].         violations)]
$25,000-$49,999.99..........  [$300 + ($50 x        [$300 + ($25 x
                               Number of days        Number of days
                               late)] x [1 + (.25    late)] x [1 + (.25
                               x Number of           x Number of
                               previous              previous
                               violations)].         violations)]
------------------------------------------------------------------------

    Election sensitive reports are deemed not filed if they are not 
filed prior to four days before an election. The final rule at 11 CFR 
111.43(b)(2)(iii) reduces the base penalty for these reports with 
levels of activity of $1-$4,999.99 from $1,000 to $500; for levels of 
activity of $5,000-$9,999.99 from $1,000 to $600; for levels of 
activity of $10,000-$24,999.99 from $1,000 to $900; and for levels of 
activity of $25,000-$49,999.99 from $2,000 to $1,400. Reductions in the 
civil money penalties for non-filed election sensitive reports with 
less than $50,000 of activity range between 10% and 50%. A chart 
illustrating the penalty reductions for non-filed election sensitive 
reports follows:

------------------------------------------------------------------------
                                                     Civil money penalty
                               Civil money penalty      for election
                                  for election       sensitive non-filed
 Level of activity in report   sensitive non-filed    reports due on or
                               reports due before      after April 16,
                                 April 16, 2003.            2003.
------------------------------------------------------------------------
$1-$4,999.99................  1,000 x [1 + (.25 x   500 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
$5,000-$9,999.99............  1,000 x [1 + (.25 x   600 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
$10,000-$24,999.99..........  1,000 x [1 + (.25 x   900 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
$25,000-$49,999.99..........  2,000 x [1 + (.25 x   1,400 x [1 + (.25 x
                               Number of previous    Number of previous
                               violations)].         violations)]
------------------------------------------------------------------------

2. Revised Calculation of the ``Level of Activity'' and ``Estimated 
Level of Activity''
    The Commission calculates civil money penalties by applying the 
civil money penalty schedules at 11 CFR 111.43 to a political 
committee's ``level of activity.'' Under the previous rule at 11 CFR 
111.43(d), the ``level of activity'' is defined as the ``total amount 
of receipts and disbursements for the period covered by the late-filed 
report.'' If the report is not filed, the ``level of activity'' is 
based on the ``estimated level of activity,'' which is an estimate of 
total receipts and disbursements based on previously reported amounts.
    The NPRM reflected the Commission's concern, based on its 
experience with the administrative fines program, that using total 
receipts and disbursements as the basis for the penalty calculation may 
have unfairly resulted in higher fines for political committees that 
finance non-Federal activity through their Federal accounts. For 
example, unauthorized committees that finance activities in connection 
with both Federal and non-Federal elections must allocate disbursements 
for those activities between their Federal and non-Federal accounts and 
must pay for those expenses from their Federal account or from a 
separate Federal allocation account. See generally 11 CFR 106.6 and 
106.7. Non-Federal funds must be transferred into the Federal accounts 
to pay for the non-Federal share of the activity, thereby resulting in 
higher total receipts and disbursements for those committees than for 
political committees that do not have allocable activity.
    The NPRM sought comment on whether the Commission should alter the 
way it calculates the level of activity. 67 FR 20463. The Commission 
sought comment generally on whether the level of activity should 
exclude all receipts or disbursements that are not for the purpose of 
influencing a Federal election. In addition to the receipt of non-
Federal transfers to pay for the non-Federal share of allocable 
activity, the Commission asked whether other types of disbursements 
should be excluded and gave several examples, such as disbursements by 
an authorized committee made to influence the election of candidates to 
State or local office.
    One of the commenters urged the Commission to exclude from the 
``level of activity'' definition those disbursements for the non-
Federal portion of allocated Federal/non-Federal activity, such as 
certain generic get-out-the-vote drives, as well as the receipt of non-
Federal fund transfers to pay for those disbursements. The commenter 
maintained that including these receipts and disbursements ``unfairly 
punished'' State and local political party committees, whose activities 
are focused more on State and local elections. The commenter 
illustrated this point by using an example of a local party committee. 
Using a similar example under the current allocation regime for State 
and local party committees, depending on the election cycle, only 15% 
to 36% of allocable activity under 11 CFR 106.7 is considered Federal. 
Under the Commission's allocation regulations, such a committee must 
make disbursements from its Federal account to cover the 64% to 85% of 
the activity that is attributable to non-Federal elections and then 
reimburse the Federal account via transfers from its non-Federal 
account. Under the prior rules, the civil money penalty was based on 
the total of Federal and non-Federal activity since both are reported. 
As an alternative to changing the way ``level of activity'' is 
calculated, the commenter argued that the Commission should create a 
separate, more lenient schedule for committees that allocate expenses.
    The other commenter disagreed with that approach. It noted that the 
Explanation and Justification (``E&J'') for the administrative fines 
rules issued in May 2000 rejected a suggestion that the ``level of 
activity'' be based on contributions and expenditures rather than total 
receipts and disbursements. The E&J noted that 2 U.S.C. 437g(a)(4), 
which permits the Commission to

[[Page 12576]]

implement the administrative fines program, requires the Commission to 
``take[s] into account, the amount of the violation involved,'' and 
concluded that, since 2 U.S.C 434 required committees to report all 
receipts and disbursements, the ``amount of the violation involved'' 
was equal to the total receipts and disbursements. See Explanation and 
Justification for Final Rules on Administrative Fines, 65 FR 31792 (May 
19, 2000). The commenter observed that the Commission's regulations 
required committees to report non-Federal disbursements that are part 
of an allocable Federal/non-Federal activity and are paid for via non-
Federal transfers to the Federal account. By excluding these amounts in 
the civil penalty calculation, the commenter argued that the Commission 
would effectively treat the disclosure of some types of receipts and 
disbursements as less important than others.
    The Commission continues to believe that, in most cases, ``total 
receipts and disbursements'' is a fair basis on which to calculate a 
civil money penalty for violations of 2 U.S.C. 434(a). However, based 
on its experience with the administrative fines program, the Commission 
concludes that basing a civil money penalty on ``total receipts and 
disbursements'' may unfairly inflate the level of activity for 
unauthorized committees that allocate expenses between Federal and non-
Federal accounts because a large portion of their receipts and 
disbursements may be attributable to non-Federal activity that must be 
reported through a Federal account. The Commission concludes that it is 
a permissible construction of 2 U.S.C. 437g(a)(4) to exclude from the 
definition of ``level of activity'' receipts and disbursements 
attributable to the payment of allocable non-Federal activity. Section 
437g(a)(4) of FECA permits the Commission to establish and publish a 
schedule of penalties ``which takes into account the amount of the 
violation involved . . . and other factors as the Commission deems 
appropriate.'' (Emphasis added). It is both appropriate and fair to 
exclude from the civil money penalty calculation those receipts and 
disbursements solely attributable to payment of the non-Federal portion 
of allocated Federal/non-Federal activity. This approach ensures that 
the civil money penalty is proportionate to a committee's level of 
participation in Federal elections.
    Other disbursements that may be characterized as non-Federal but 
that are paid for with Federal funds, such as a disbursement by an 
authorized committee to a State or local candidate, will not be 
excluded from the ``level of activity'' calculation. In these cases, a 
political committee chooses to use Federally-permissible receipts 
deposited in a Federal account for a non-Federal purpose. In contrast, 
where non-Federal funds are used to pay the non-Federal share of 
allocable activities, these funds flow through, and are reported by, 
the Federal account because Commission regulations so require.
    Because only unauthorized committees are affected by the allocation 
rules, the definitions of ``level of activity'' and ``estimated level 
of activity'' have been amended only as applied to them. The 
definitions of these terms remain the same for late-filed or non-filed 
reports of all political committees before the effective date of these 
rules and for late-or non-filed reports of authorized committees due on 
or after the effective date of these rules. To make these distinctions 
clear, the definitions of ``level of activity'' and ``estimated level 
of activity'' have been moved in the final rules from 11 CFR 111.43(d) 
into revised section 111.43(a) and (b).
    Specifically, the definitions of ``level of activity'' and 
``estimated level of activity'' remain the same for late- and non-filed 
reports of all political committees that are due before the effective 
date of these rules as set forth in 11 CFR 111.43(a)(1)(i), 
111.43(a)(1)(ii), 111.43(b)(1)(i) and 111.43(b)(1)(ii) and correspond 
to the schedule of penalties for reports due before the effective date 
of these final rules. The definitions of these terms also remain 
unchanged when applied to late- and non-filed reports of authorized 
committees that are due on or after the effective date of these rules 
as set forth in 11 CFR 111.43(a)(2)(i)(A), 111.43(a)(2)(ii)(A), 
111.43(b)(2)(i) and 111.43(b)(2)(ii).
    However, the final rules include revised definitions of ``level of 
activity'' and ``estimated level of activity'' as applied to late-filed 
and non-filed reports of unauthorized committees due on or after the 
effective date of these rules. Specifically, the final rule applicable 
to late-or non-filed non-election sensitive reports in 11 CFR 
111.43(a)(2)(i)(B) provides that the definition of ``level of 
activity'' for these unauthorized committees means ``total amount of 
receipts and disbursements'' for the period covered by the late report 
minus the total of: (1) transfers received from non-Federal account(s) 
(from Schedule H3) as reported on Line 18(a) of FEC Form 3X, and (2) 
disbursements for the non-Federal share of operating expenditures 
attributable to allocated Federal/non-Federal activity (from Schedule 
H4) as reported on Line 21(a)(ii) covered by the late report. The final 
rule applicable to late-filed or non-filed election-sensitive reports 
at new 11 CFR 111.43(b)(2)(i) refers back to that definition.
    Similarly, the final rule applicable to late- and non-filed non-
election sensitive reports of unauthorized committees due on or after 
the effective date contains a new definition of ``estimated level of 
activity'' expressed in a formula. New 11 CFR 111.43(a)(2)(ii)(B)(1) 
provides that ``estimated level of activity'' is calculated as follows: 
[(total receipts and disbursements reported in the current two-year 
election cycle) - (transfers received from non-Federal account(s) as 
reported on either Line 18(a) of FEC Form 3X or Line 18 of FEC Form 3X 
if before March 1, 2003 + disbursements for the non-Federal Share of 
operating expenditures attributable to allocated Federal/non-Federal 
activity as reported on Line 21(a)(ii) of Form 3X)] / number of reports 
filed covering the activity in the current two-year election cycle. The 
final rule applicable to late-filed or non-filed election-sensitive 
reports of unauthorized committees at new 11 CFR 111.43(b)(2)(ii) 
refers back to that definition. Please note that the line number for 
transfers is different when referring to pre-BCRA reports.
    Finally, new 11 CFR 111.43(a)(2)(ii)(B)(2) addresses the 
calculation of ``estimated level of activity'' when an unauthorized 
committee has not filed a non-election sensitive report covering 
activity in the current two-year election cycle. In that case, 
``estimated level of activity'' is calculated as: [(total receipts and 
disbursements reported in the prior two-year election cycle) - 
(transfers received from non-Federal account(s) as reported on either 
Line 18(a) of FEC Form 3X or Line 18 of FEC Form 3X if before March 1, 
2003 + disbursements for the non-Federal Share of operating 
expenditures attributable to allocated Federal/non-Federal activity as 
reported on Line 21(a)(ii) of Form 3X)] / number of reports filed 
covering the activity in the prior two-year election cycle. New 11 CFR 
111.43(b)(2)(ii) refers back to that definition for election-sensitive 
reports.
    The Commission emphasizes that the exclusion of non-Federal 
receipts and disbursements attributable to allocable activity from the 
calculation of ``level of activity'' does not change an unauthorized 
committee's obligation to fully disclose these amounts. Failure to do 
so is a violation of the Act and

[[Page 12577]]

Commission regulations and may be pursued by the Commission in an 
enforcement action under subpart A of 11 CFR part 111.

11 CFR 111.45 What Actions Will Be Taken to Collect Unpaid Civil 
Penalties?

    11 CFR 111.45 is being revised to correct citations to regulations 
establishing the Federal Claims Collection Standards. After the 
Commission's administrative fines rules were promulgated on May 19, 
2000, the Department of Justice and the Department of Treasury, in 
place of the General Accounting Office, revised and recodified the 
Federal Claims Collection Standards at 31 CFR parts 900 through 904. 
See 65 FR 70390 (November 22, 2000). No comments were received on this 
revision.

11 CFR 111.46 How Will the Respondent Be Notified of Actions Taken by 
the Commission and the Reviewing Officer?

    Respondents who have challenged reason-to-believe findings in the 
administrative fines program have sometimes maintained that they did 
not receive notification because it was sent to an old address even 
though the Commission sent the notification to the political 
committee's address of record in the Statement of Organization on file 
with the Commission.
    In the NPRM, the Commission proposed revisions to four regulations 
to clarify how notifications and other communications called for in 
subpart B of 11 CFR part 111 would be delivered to respondents. 67 FR 
20464. Neither of the commenters addressed this issue.
    The Commission has since concluded that this issue may be addressed 
more efficiently by adding a new regulation rather than by amending 
several current regulations. New 11 CFR 111.46 addresses how 
respondents will be notified of reason-to-believe findings, final 
determinations and all other communications authorized in subpart B of 
part 111 governing the administrative fines program. The final rule 
clarifies that unless a respondent has filed a statement designating 
counsel in accordance with 11 CFR 111.23, all notifications or other 
communications from the Commission or the administrative fines 
reviewing officer will be sent to a respondent political committee and 
its treasurer at the committee address listed in the most recent 
Statement of Organization or amendment thereto, filed with the 
Commission. If counsel has been designated, all contact will be with 
counsel unless the respondent authorizes direct contact in writing. See 
11 CFR 111.23. The substantive effect of new section 111.46 is 
identical to the revisions proposed in the NPRM.
    This new rule is supported by the statute and case law. 2 U.S.C. 
433(c) requires a political committee to file any changes in a 
previously filed Statement of Organization, including an address, 
within ten days after the change. Moreover, in a recent case in which a 
respondent in the administrative fines program challenged the 
Commission's final determination, the district court held that mailing 
a notification to the committee's last known address constitutes 
constitutionally significant notice. See Cunningham v. FEC, 2002 WL 
31431557, at *4 (S.D. Ind.)(2002).

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

    The Commission certifies that the attached final rules will not 
have a significant economic impact on a substantial number of small 
entities. The basis for this certification for any small entities 
subject to the amended rules is that the civil money penalties are 
lower than those previously assessed and are scaled to better take into 
account the amount of financial activity on reports filed by political 
committees. Thus, committees with lower levels of financial activity 
are subject to lower fines than political committees with higher 
amounts. Moreover, the calculation of the civil money penalty has been 
revised so that it better takes into account the level of Federal 
activity for committees that finance allocable Federal and non-Federal 
activity. These committees would also be subject to lower civil 
penalties since they are now based only on the portion of their 
finances attributable to Federal activity. Finally, some entities 
affected by the rules, such as political committee treasurers and 
committees of the two major political parties, are not small entities 
under 5 U.S.C. 601 because they are not small businesses, organizations 
or small governmental jurisdictions.

List of Subjects in 11 CFR Part 111

    Administrative practice and procedures, Elections, Law enforcement.

    For the reasons set forth in the preamble, the Federal Election 
Commission amends subchapter A of Chapter I of Title 11 of the Code of 
Federal Regulations as follows:

PART 111--COMPLIANCE PROCEDURES (2 U.S.C. 437g, 437d(a))

    1. The authority citation for part 111 continues to read as 
follows:

    Authority: 2 U.S.C. 437g, 437d(a), 438(a)(8).

    2. Section 111.35 is amended by revising paragraph (b)(4)(iii) to 
read as follows:


Sec.  111.35  If the respondent decides to challenge the alleged 
violation or proposed civil money penalty, what should the respondent 
do?

* * * * *
    (b) * * *
    (4) * * *
    (iii) Illness, inexperience, or unavailability of staff, including 
the treasurer;
* * * * *

    3. Section 111.43 is amended by:
    a. Revising paragraph (a);
    b. Revising paragraph (b); and
    c. Amending paragraph (d) by removing the definitions of estimated 
level of activity and level of activity.
    The revised text reads as follows:


Sec.  111.43  What are the schedules of penalties?

    (a) The civil money penalty for all reports that are filed late or 
not filed, except election sensitive reports and pre-election reports 
under 11 CFR 104.5, shall be calculated as follows:
    (1) For reports due before April 16, 2003:
    (i) Level of activity means the total amount of receipts and 
disbursements for the period covered by the late report. If the report 
is not filed, the level of activity is the estimated level of activity 
as set forth in paragraph (a)(1)(ii) of this section.
    (ii) Estimated level of activity means total receipts and 
disbursements reported in the current two-year election cycle divided 
by the number of reports filed to date covering the activity in the 
current two-year election cycle. If the respondent has not filed a 
report covering activity in the current two-year election cycle, 
estimated level of activity means total receipts and disbursements 
reported in the prior two-year election cycle divided by the number of 
reports filed covering the activity in the prior two-year election 
cycle.
    (iii) The civil money penalty shall be calculated in accordance 
with the following schedule:

[[Page 12578]]



------------------------------------------------------------------------
                               And the report was
 If the level of activity in     filed late, the      Or the report was
       the report was:         civil money penalty  not filed, the civil
                                       is:            money penalty is:
------------------------------------------------------------------------
$1-24,999.99 \a\............  [$100 + ($25 x        +$900 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 (.25 x    violations)]
                               Number of previous
                               violations)].
$25,000-49,999.99...........  [$200 + ($50 x        $1800 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$50,000-74,999.99...........  [$300 + ($75 x        $2700 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$75,000-99,999.99...........  [$400 + ($100 x       $3500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$100,000-149,999.99.........  [$600 + ($125 x       $4500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$150,000-199,999.99.........  [$800 + ($150 x       $5500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$200,000-249,999.99.........  [$1,000 + ($175 x     $6500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$250,000-349,999.99.........  [$1500 + ($200 x      $8000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$350,000-449,999.99.........  [$2000 + ($200 x      $9000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$450,000-549,999.99.........  [$2500 + ($200 x      $9500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$550,000-649,999.99.........  [$3000 + ($200 x      $10,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$650,000-749,999.99.........  [$3500 + ($200 x      $10,500 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$750,000-849,999.99.........  [$4000 + ($200 x      $11,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$850,000-949,999.99.........  [$4500 + ($200 x      $11,500 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$950,000 or over............  [$5000 + ($200 x      $12,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any
  previous violations will not exceed the level of activity in the
  report.

    (2) For reports due on or after April 16, 2003:
    (i) Level of activity means:
    (A) For an authorized committee, the total amount of receipts and 
disbursements for the period covered by the late report. If the report 
is not filed, the level of activity is the estimated level of activity 
as set forth in paragraph (a)(2)(ii)(A) of this section.
    (B) For an unauthorized committee, the total amount of receipts and 
disbursements for the period covered by the late report minus the total 
of: transfers received from non-Federal account(s) as reported on Line 
18(a) of FEC Form 3X and disbursements for the non-Federal share of 
operating expenditures attributable to allocated Federal/non-Federal 
activity as reported on Line 21(a)(ii) of FEC Form 3X for the period 
covered by the late report. If the report is not filed, the level of 
activity is the estimated level of activity as set forth in paragraph 
(a)(2)(ii)(B) of this section.
    (ii) Estimated level of activity means:
    (A) For an authorized committee, total receipts and disbursements 
reported in the current two-year election cycle divided by the number 
of reports filed to date covering the activity in the current two-year 
election cycle. If the respondent has not filed a report covering 
activity in the current two-year election cycle, estimated level of 
activity for an authorized committee means total receipts and 
disbursements reported in the prior two-year election cycle divided by 
the number of reports filed covering the activity in the prior two-year 
election cycle.
    (B)(1) For an unauthorized committee, estimated level of activity 
is calculated as follows: [(Total receipts and disbursements reported 
in the current two-year cycle)--(Transfers received from non-Federal 
account(s) as reported on either Line 18(a) of FEC Form 3X or Line 18 
of FEC Form 3X if before March 1, 2003 + Disbursements for the non-
Federal share of operating expenditures attributable to allocated 
Federal/non-Federal activity as Reported on Line 21(a)(ii) of FEC Form 
3X)] / Number of reports filed to date covering the activity in the 
current two-year election cycle.
    (2) If the unauthorized committee has not filed a report covering 
activity in the current two-year election cycle, the estimated level of 
activity is calculated as follows: [(Total receipts and disbursements 
reported in the prior two-year election cycle)--(Transfers received 
from non-Federal account(s) as reported on either Line 18(a) of FEC 
Form 3X or Line 18 of FEC Form 3X if before March 1, 2003 + 
Disbursements for the non-Federal Share of operating expenditures 
attributable to allocated Federal/non-Federal activity as reported on 
Line 21(a)(ii) of FEC Form 3X)] / Number of reports filed covering the 
activity in the prior two-year election cycle.
    (iii) The civil money penalty shall be calculated in accordance 
with the following schedule:

------------------------------------------------------------------------
                               And the report was
 If the level of activity in     filed late, the      Or the report was
       the report was:         civil money penalty  not filed, the civil
                                       is:            money penalty is:
------------------------------------------------------------------------
$1-4,999.99 \a\.............  [$25 + ($5 x Number   $250 x [1 + (.25 x
                               of days late)] x [1   Number of previous
                               + (.25 x Number of    violations)]
                               previous
                               violations)].
$5,000-9,999.99.............  [$50 + ($5 x Number   $300 x [1 + (.25 x
                               of days late)] x [1   Number of previous
                               + (.25 x Number of    violations)]
                               previous
                               violations)].
$10,000-24,999.99...........  [$100 + ($5 x Number  $500 x [1 + (.25 x
                               of days late)] x [1   Number of previous
                               + (.25 x Number of    violations)]
                               previous
                               violations)].

[[Page 12579]]

 
$25,000-49,999.99...........  [$200 + ($20 x        $900 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$50,000-74,999.99...........  [$300 + ($75 x        $2700 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$75,000-99,999.99...........  [$400 + ($100 x       $3500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$100,000-149,999.99.........  [$600 + ($125 x       $4500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$150,000-199,999.99.........  [$800 + ($150 x       $5500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$200,000-249,999.99.........  [$1,000 + ($175 x     $6500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$250,000-349,999.99.........  [$1500 + ($200 x      $8000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$350,000-449,999.99.........  [$2000 + ($200 x      $9000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$50,000-549,999.99..........  [$2500 + ($200 x      $9500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$550,000-649,999.99.........  [$3000 + ($200 x      $10,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$650,000-749,999.99.........  [$3500 + ($200 x      $10,500 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$750,000-849,999.99.........  [$4000 + ($200 x      $11,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$850,000-949,999.00.........  [$4500 + ($200 x      $11,500 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$950,000 or over............  [$5000 + ($200 x      $12,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any
  previous violations will not exceed the level of activity in the
  report.

    (b) The civil money penalty for election sensitive reports that are 
filed late or not filed shall be calculated as follows:
    (1) For reports due before April 16, 2003:
    (i) Level of activity has the same meaning as paragraph (a)(1)(i) 
of this section.
    (ii) Estimated level of activity has the same meaning as paragraph 
(a)(1)(ii) of this section.
    (iii) The civil money penalty shall be calculated in accordance 
with the following schedule:

------------------------------------------------------------------------
                               And the report was
 If the level of activity in     filed late, the      Or the report was
       the report was:         civil money penalty  not filed, the civil
                                       is:            money penalty is:
------------------------------------------------------------------------
$1-24,999.99 \a\............  [$150 + ($25 x        $1000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$25,000-49,999.99...........  [$300 + ($50 x        $2000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$50,000-74,999.99...........  [$450 + ($75 x        $3000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$75,000-99,999.99...........  [$600 + ($100 x       $4000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$100,000-149,999.99.........  [$900 + ($125 x       $5000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$150,000-199,999.99.........  [$1200 + ($150 x      $6000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$200,000-249,999.99.........  [$1500 + ($175 x      $7500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$250,000-349,999.99.........  [$2250 + ($200 x      $9000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)]
                               x Number of
                               previous
                               violations)].
$350,000-449,999.99.........  [$3000 + ($200 x      $10,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$450,000-549,999.99.........  [$3750 + ($200 x      $11,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$550,000-649,999.99.........  [$4500 + ($200 x      $12,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$650,000-749,999.99.........  [$5250 + ($200 x      $13,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$750,000-849,999.99.........  [$6000 + ($200 x      $14,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
$850,000-949,999.99.........  [$6750 + ($200 x      $15,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].

[[Page 12580]]

 
$950,000 or over............  [$7500 + ($200 x      $16,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)]
                               previous
                               violations)].
------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any
  previous violations will not exceed the level of activity in the
  report.

    (2) For reports due on or after April 16, 2003:
    (i) Level of activity has the same meaning as paragraph (a)(2)(i) 
of this section.
    (ii) Estimated level of activity has the same meaning as paragraph 
(a)(2)(ii) of this section.
    (iii) The civil money penalty shall be calculated in accordance 
with the following schedule:

------------------------------------------------------------------------
                               And the report was
 If the level of activity in     filed late, the      Or the report was
       the report was:         civil money penalty  not filed, the civil
                                       is:            money penalty is:
------------------------------------------------------------------------
$1-$4,999.99 a..............  [$50 + ($10 x Number  $500 x [1 + (.25 x
                               of days late)] x [1   Number of previous
                               + (.25 x Number of    violations)].
                               previous
                               violations)].
$5,000-$9,999.99............  [$100 + ($10 x        $600 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$10,000-24,999.99...........  [$150 + ($10 x        $900 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$25,000-49,999.99...........  [$300 + ($25 x        $1,400 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$50,000-74,999.99...........  [$450 + ($75 x        $3000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$75,000-99,999.99...........  [$600 + ($100 x       $4000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$100,000-149,999.99.........  [$900 + ($125 x       $5000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$150,000-199,999.99.........  [$1200 + ($150 x      $6000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$200,000-249,999.99.........  [$1500 + ($175 x      $7500 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$250,000-349,999.99.........  [$2250 + ($200 x      $9000 x [1 + (.25 x
                               Number of days        Number of previous
                               late)] x [1 + (.25    violations)].
                               x Number of
                               previous
                               violations)].
$350,000-449,999.99.........  [$3000 + ($200 x      $10,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)].
                               previous
                               violations)].
$450,000-549,999.99.........  [$3750 + ($200 x      $11,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)].
                               previous
                               violations)].
$550,000-649,999.99.........  [$4500 + ($200 x      $12,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)].
                               previous
                               violations)].
$650,000-749,999.99.........  [$5250 + ($200 x      $13,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)].
                               previous
                               violations)].
$750,000-849,999.99.........  [$6000 + ($200 x      $14,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)].
                               previous
                               violations)].
$850,000-949,999.99.........  [$6750 + ($200 x      $15,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)].
                               previous
                               violations)].
$950,000 or over............  [$7500 + ($200 x      $16,000 x [1 + (.25
                               Number of days        x Number of
                               late)] x [1 + (.25    previous
                               x Number of           violations)].
                               previous
                               violations)].
------------------------------------------------------------------------
a The civil money penalty for a respondent who does not have any
  previous violations will not exceed the level of activity in the
  report.

* * * * *

    4. Section 111.45 is amended by removing in the second sentence the 
phrase, ``4 CFR parts 101 through 105'' and by adding in its place, 
``31 CFR parts 900 through 904,'' and by removing in the second 
sentence the phrase, ``General Accounting Office'' and adding in its 
place, ``U.S. Department of the Treasury.''

    5. Section 111.46 is added to read as follows:


Sec.  111.46  How will the respondent be notified of actions taken by 
the Commission and the reviewing officer?

    If a statement designating counsel has been filed in accordance 
with 11 CFR 111.23, all notifications and other communications to a 
respondent provided for in subpart B of this part will be sent to 
designated counsel. If a statement designating counsel has not been 
filed, all notifications and other communications to a respondent 
provided for in subpart B of this part will be sent to respondent 
political committee and its treasurer at the political committee's 
address as listed in the most recent Statement of Organization, or 
amendment thereto, filed with the Commission in accordance with 11 CFR 
102.2.

    Dated: March 7, 2003.
Ellen L. Weintraub,
Chair, Federal Election Commission.
[FR Doc. 03-5957 Filed 3-14-03; 8:45 am]
BILLING CODE 6715-01-P