Federal election commission

**11 CFR Parts 100, 104, 105, 108 and 109**

**\[Notice 2002 - 19\]**

**BCRA Reporting**

**AGENCY:** Federal Election Commission.

**ACTION:** Notice of Proposed Rulemaking.

**SUMMARY:** The Federal Election Commission seeks comments on the
proposed regulations relating to new requirements for the reporting of
electioneering communications and independent expenditures, monthly
reporting by national political party committees and quarterly reporting
by the principal campaign committees of candidates for the House of
Representatives and Senate, as well as reporting related to building
funds. These regulations would implement several requirements in the
Bipartisan Campaign Reform Act of 2002 ("BCRA") that significantly amend
the Federal Election Campaign Act of 1971, as amended ("FECA" or "the
Act"). Please note that the Commission has not made a final decision on
any of these proposals. Further information is contained in the
Supplementary Information that follows.

**DATES:** Comments must be received on or before November 8, 2002.

**ADDRESSES:** All comments should be addressed to Mr. John Vergelli,
Acting Assistant General Counsel, and must be submitted in either
electronic or written form. Electronic mail comments should be sent to
[BCRAreport@fec.gov]{.underline} and must include the full name,
electronic mail address, and postal service address of the commenter.
Electronic mail comments that do not contain the full name, electronic
mail address, and postal service address of the commenter will not be
considered. Faxed comments should be sent to (202) 219-3923, with
printed copy follow-up to ensure legibility. Written comments and
printed copies of faxed comments should be sent to the Federal Election
Commission, 999 E Street, N.W., Washington, D.C., 20463. Commenters are
strongly encouraged to submit comments electronically to ensure timely
receipt and consideration. The Commission will make every effort to post
public comments on its web site within ten business days of the close of
the comment period.

**for further**

**information**

**contact**: Mr. John Vergelli, Acting Assistant General Counsel, or Ms.
Cheryl Fowle, Attorney, 999 E Street, N.W., Washington, D.C., 20463,
(202) 694-1650 or (800) 424-9530.

**Supplementary**

**INFORMATION:** The Bipartisan Campaign Reform Act of 2002 ("BCRA"),
Pub. L. 107-155, 116 Stat. 81 (March 27, 2002), contains extensive and
detailed amendments to the Federal Election Campaign Act of 1971, as
amended, 2 U.S.C. 431 [et]{.underline} [seq]{.underline}. This is one in
a series of Notices of Proposed Rulemakings ("NPRM") the Commission has
recently published to meet the rulemaking deadlines set out in BCRA. The
deadline for the promulgation of these rules is 270 days after the date
of enactment, which is December 22, 2002.

## **Introduction**

This NPRM addresses: (1) reporting of electioneering communications; (2)
reporting of independent expenditures; (3) quarterly reporting by the
principal campaign committees of candidates for the House of
Representatives and the Senate; (4) monthly reporting by political party
committees; and (5) the reporting of funds for political party committee
office buildings.

The Commission sought comments on two of these topics previously in
Notices of Proposed Rulemakings on "Electioneering Communications," 67
[Fed. Register]{.underline} 51,131 (August 7, 2002); and "Coordinated
and Independent Expenditures," 67 [Fed. Register]{.underline} 60,042
(September 25, 2002). Another topic, addressing the reporting of funds
for the purchase or construction of party office buildings, is based on
a recently published final rule ("Prohibited and Excessive
Contributions: Non-Federal Funds or Soft Money; Final Rule," 67 [Fed.
Register]{.underline} 49,123 and 49,127 (July 29, 2002)). The last two
topics addressing the schedule of reporting for national political party
committees and the principal campaign committees of House and Senate
candidates have not previously been addressed in a BCRA-related NPRM.

In BCRA, Congress required the Commission to promulgate standards for
reporting software, and also imposed certain other requirements on the
Commission, and on various persons who file reports with the Commission,
that will take effect when that computer software becomes available. 2
U.S.C. 434(a)(12). Although these Congressional mandates are related to
reporting, which is the subject of this NPRM, the Commission does not
propose to address the mandates here. The computer software standards
will depend largely upon the results of this reporting rulemaking, and
on the development of reporting forms following the completion of this
rulemaking. Therefore, the Commission proposes to address the mandates
in 2 U.S.C. 434(a)(12) as soon as feasible, and will solicit public
comments on the mandates at that time.

**INDEPENDENT EXPENDITURES AND ELECTIONEERING COMMUNICATIONS**

**Proposed 11 CFR 100.19 File, filed, or filing (2 U.S.C. 434(a))**

The Commission's regulations at 11 CFR 100.19 define [file]{.underline},
[filed,]{.underline} and [filing]{.underline}. Paragraph (a) of section
100.19 would be unaffected by this rulemaking, except for a new heading.
Proposed paragraph (b) of section 100.19 would retain the pre-BCRA
general rule that a document is considered timely filed if it is: (1)
delivered to the appropriate filing office (either the Commission or the
Secretary of the Senate), or (2) sent by registered or certified mail
and postmarked by 11:59 p.m. Eastern Standard/Daylight Time of the
prescribed filing date -- except for pre-election reports. The proposed
revisions to paragraph (b) of section 100.19 would clarify that
paragraph (b) is the general rule, but does not apply to reports
addressed by paragraph (c) through proposed new paragraph (f).

Those exceptions would be as follows: Paragraph (c) for electronic
filing -- "filed" means received by the Commission at or before 11:59
p.m. Eastern Standard/Daylight Time on the filing date; paragraph (d)
for 24-hour and 48-hour reports of independent expenditures -- "filed"
means received by the Commission no later than 11:59 p.m. Eastern
Standard/Daylight Time of the day following (24-hour reports) or the
second day following (48-hour reports) the date on which the spending
threshold is reached in accordance with 11 CFR 104.4(f); paragraph (e)
for "48-hour notices of last-minute contributions" (48-hour notices
filed by authorized committees of candidates of contributions of \$1,000
or more received after the 20^th^ day but more than 48 hours before
12:01 a.m. of the day of an election) -- "filed" means received by the
Commission or the Secretary of the Senate within 48 hours of the receipt
of a "last-minute" contribution of \$1,000 or more; proposed paragraph
(f) for 24-hour statements of electioneering communications -- "filed"
means received by the Commission by 11:59 p.m. Eastern Standard/Daylight
Time of the day following the disclosure date ([see]{.underline} 11 CFR
104.20).

Paragraphs (c) and (e) of section 100.19 would remain unchanged, except
for new headings.

Proposed revisions to paragraph (d) of section 100.19 would also require
that the new 48-hour reports of independent expenditures, like the
24-hour reports, must be [received]{.underline} rather than
[filed]{.underline} by the filing deadline. The proposed 48-hour
reporting provision would allow filers to submit their reports using
facsimile machines or electronic mail, as long as they are not required
under 11 CFR 104.18 to file electronically. Under pre-BCRA paragraph (d)
of section 100.19, 24-hour reports of independent expenditures are only
considered timely filed if they are [received]{.underline} by the
Commission or Secretary of the Senate within 24 hours of the time the
expenditure is made.[^1] Sending 24-hour reports by mail is not a viable
option because it is unlikely these reports will be received by the
Commission within 24 hours of the making of the expenditure.
[See]{.underline} "Final Rules and Explanation and Justification for 11
CFR 100.19," 67 [Fed. Register]{.underline} 12,834 (March 20, 2002).
Pre-BCRA paragraph (d) also states that 24-hour reports may be filed by
facsimile machine or electronic mail, in addition to other permissible
means of filing (e.g., hand-delivery or overnight courier). Because the
reasons behind the handling of 24-hour reports apply equally to the
essentially similar 48-hour reports, the Commission is proposing this
parallel rule.

Under 2 U.S.C. 434(f)(1), electioneering communications must be reported
within 24 hours of the "disclosure date." [See]{.underline} proposed 11
CFR 104.20. The Commission proposes to add new paragraph (f) to 11 CFR
100.19 to require these 24-hour statements to be [received]{.underline}
by the Commission no later than 11:59 p.m. Eastern Standard/Daylight
Time of the day following the disclosure date, rather than
[filed]{.underline} by that time. In addition, to assist filers with
meeting this deadline, the proposed rule would allow them to file their
24-hour statements by facsimile machine or electronic mail. For the same
reasons that are discussed with regard to proposed paragraph (d) of 11
CFR 100.19, this proposed paragraph would follow the timing and filing
methods of 24-hour reports for independent expenditures.

**11 CFR 104.5(g) and (j) Filing dates (2 U.S.C. 434(a)(2))**

Proposed paragraph (g) of 11 CFR 104.5 would move the pre-BCRA contents
of paragraph (g) to proposed paragraph (g)(2) with revisions, and would
add a new paragraph (g)(1), which would require that 48-hour reports of
independent expenditures must be received by the Commission no later
than 11:59 p.m. Eastern Standard/Daylight Time of the second day
following the date on which a communication is publicly distributed or
otherwise publicly disseminated. Note that the term "publicly
distributed" refers to communications distributed by radio or television
([see]{.underline} 11 CFR 100.29(a)(5)) and the term "publicly
disseminated" refers to communications that are made public via other
media, e.g., newspaper, magazines, handbills. Pre-BCRA paragraph (g) of
11 CFR 104.5 states that 24-hour reports of independent expenditures
must be received by the appropriate officers no later than 24 hours
after such independent expenditure is made.

Proposed paragraph (j) of section 104.5 would address the filing dates
for electioneering communications. Specifically, it would provide that
the 24-hour statements must be received by the Commission by 11:59 p.m.
Eastern Standard/Daylight Time on the day following the date of
disclosure.

**11 CFR 105.2 Place of filing; Senate candidates, their principal
campaign committees, and committees supporting only Senate candidates (2
U.S.C. 434(g)(3))**

The Commission's pre-BCRA regulations require that 24-hour reports of
independent expenditures supporting or opposing Senate candidates be
filed with the Secretary of the Senate. [See]{.underline} pre-BCRA 11
CFR 104.4(c), 109.2(b). In BCRA, Congress establishes the Commission as
the place of filing for both 24- and 48-hour reports of independent
expenditures, regardless of the office being sought by the clearly
identified candidate. 2 U.S.C. 434(g)(3)(A). The proposed revisions to
section 105.2 would place the text of pre-BCRA 11 CFR 105.2 in proposed
paragraph (a), adding the heading, "General Rule." New proposed
paragraph (b) of 11 CFR 105.2 would be headed, "Exception," and would
state that 24- and 48-hour reports of independent expenditures, must be
filed with the Commission even if the communication refers to a
candidate for the Senate. 2 U.S.C. 434(f).

**11 CFR 104.4 Independent expenditures by political committees (2
U.S.C. 434(b), (g))**

The Commission has established reporting requirements for political
committees making independent expenditures in accordance with 2 U.S.C.
434(b) and (g). [See]{.underline} pre-BCRA 11 CFR 104.4. Paragraph (a)
of section 104.4 would be unaffected, other than the addition of a new
heading, a grammatical correction, and an updated cross-reference.

Proposed new paragraph (b) would address reports of independent
expenditures made by a political committee at any point in the campaign
up to and including the 20^th^ day before an election. Proposed
paragraph (b)(1) would address independent expenditures aggregating
[less than \$10,000]{.underline} with respect to a given election during
the calendar year, up to and including the 20th day before an election.
This calendar year aggregation would be based on 2 U.S.C. 434(b)(4),
which requires calendar year aggregation for reports of independent
expenditures by political committees. Under this calendar year approach,
political committees would report the independent expenditures on
Schedule E of FEC Form 3X, filed no later than the regular reporting
date under 11 CFR 104.5. The Commission would interpret 2 U.S.C. 434(g),
added to the Act by BCRA, to require aggregation toward the various
thresholds for independent expenditure reporting to be done on a per
election basis within the calendar year. For example, if a political
committee made \$5,000 in independent expenditures with respect to a
Senate race, and \$5,000 in independent expenditures with respect to a
House race, and both of these events occurred before the 20th day before
the election, that political committee would not be required to file
48-hour reports, but would be required to disclose the independent
expenditures in its regularly scheduled reports. If the political
committee makes \$5,000 in independent expenditures with respect to a
clearly identified candidate in the primary, and an additional \$5,000
in independent expenditures with respect to the same candidate in the
general election, no 48-hour reports would be required; but again the
committee would be required to disclose the independent expenditures in
its regularly scheduled reports. The Commission requests comments on
whether a different time period, such as an election cycle, should be
employed instead of the calendar year period.

Paragraph (b)(2) would address independent expenditures aggregating
[\$10,000 or more]{.underline} during the calendar year up to and
including the 20th day before an election. These reports would also be
filed on Schedule E of FEC Form 3X. However, these reports would be
required to be received by the Commission no later than 11:59 p.m.
Eastern Standard/Daylight Time of the second day following the date on
which a communication that constitutes an independent expenditure is
publicly distributed or otherwise publicly disseminated. Further,
political committees would have to file an additional 48-hour report
each time subsequent independent expenditures reach the \$10,000
threshold with respect to the same election to which the first report
related.

The Commission proposes revisions to renumbered paragraph (c) (i.e.,
pre-BCRA 11 CFR 104.4(b)) stating that 24-hour reports must be
[received]{.underline} by the Commission no later than 11:59 p.m.
Eastern Standard/Daylight Time of the day following the date on which
the \$1,000 threshold is reached during the final 20 days before the
election. Further, proposed revisions to this paragraph would
specifically state that additional 24-hour reports must be filed each
time during the 24-hour reporting period in which subsequent independent
expenditures reach or exceed the \$1,000 threshold with respect to the
same election to which the previous report related.

Proposed paragraph (d) would contain the report verification information
currently found in pre-BCRA paragraph (b) of section 104.4. There would
be non-substantive grammatical changes to conform this paragraph to
other changes in the overall section.

Proposed paragraph (e) would largely restate pre-BCRA paragraph (c) of
section 104.4. The most significant proposed change to this paragraph
would be to make the Commission and not the Secretary of the Senate the
place of filing for 24- and 48-hour reports of independent expenditures
relating to Senate candidates. 2 U.S.C. 434(g)(3). [See]{.underline} the
discussion of 11 CFR 105.2, above.

Proposed paragraph (f) of 11 CFR 104.4 would address aggregation of
independent expenditures for reporting purposes. The provisions of
pre-BCRA 11 CFR 109.1(f) would be redesignated and revised to explain
when and how political committees and other persons making independent
expenditures must aggregate independent expenditures for purposes of
determining whether 48-hour and 24-hour reports must be filed. Note that
this proposed aggregation rule would apply to independent expenditures
by political committees, as well as other persons; proposed 11 CFR
109.10(c) and (d) would cross-refer to this paragraph. Proposed
paragraph (f) would establish that every date on which a communication
that constitutes an independent expenditure is "publicly distributed" or
otherwise publicly disseminated serves as the date that every person
must use to determine whether the total amount of independent
expenditures has, in the aggregate, reached or exceeded the threshold
reporting amounts (\$1,000 for 24-hour reports or \$10,000 for 48-hour
reports). The term "publicly distributed" would have the same meaning as
in new 11 CFR 100.29(b)(6), which the Commission is promulgating as part
of a separate rulemaking. Thus, proposed paragraph (f) would set the
same date as the starting date from which a person would have one or two
days, where applicable, to file a 24-hour or 48-hour report on
independent expenditures.

In addition, Congress changed the reporting requirements by adding the
phrase "or contracts to make" to the statute. 2 U.S.C. 434(g)(1), (2).
BCRA ties 24-hour and 48-hour reporting of independent expenditures to
the time when a person "makes or contracts to make independent
expenditures . . . " aggregating at or above the \$1,000 and \$10,000
thresholds, respectively. 2 U.S.C. 434(g)(4). Therefore, under proposed
11 CFR 104.4(f), each person would be required to include as of the
proposed trigger date, in the calculation of the aggregate amount of
independent expenditures, both disbursements for independent
expenditures [and]{.underline} all contracts obligating funds for
disbursement for independent expenditures. Under this approach and the
proposed timing requirements described above, once a communication that
constitutes an independent expenditure is publicly distributed or
disseminated as explained above, the person who paid for, or who
contracted to pay for, the communication would be able to determine
whether the communication satisfied the "express advocacy" requirement
of the definition of an independent expenditure ([see]{.underline} 11
CFR 100.16) and would therefore be able to determine whether the
disbursement for that communication constituted an independent
expenditure. A person reaching or exceeding the applicable reporting
threshold would be responsible for submitting a report by 11:59 p.m.
Eastern Standard/Daylight Time of the day after, for 24-hour reporting,
or two days after, for 48-hour reporting, the date of the public
distribution or dissemination of that communication. Please note that
under the proposed rules, independent expenditures would be reported by
political committees after a disbursement is made, or a debt reportable
under 11 CFR 104.11(b) is incurred, for an independent expenditure, but
no later than 11:59 p.m. of the day following the day on which the
independent expenditure is first publicly distributed or otherwise
publicly disseminated.

In some situations, a political committee will not make payment or incur
a reportable debt before the communication underlying the independent
expenditure is publicly distributed or otherwise publicly disseminated.
If the communication is both publicly distributed or otherwise publicly
disseminated and paid for in the same reporting period, then the
committee would report the independent expenditure on Schedule E for
that reporting period. If the communication is aired in one reporting
period (e.g., during the 24-hour reporting period) and payment is made
in a later reporting period (e.g., during the post-general election
period), then the committee would report the independent expenditure as
a memo entry on Schedule E in the reporting period in which payment is
made.

In other situations, however, a political committee may pay the
production and distribution costs associated with an independent
expenditure in one reporting period, but not publicly distribute or
otherwise publicly disseminate it until a later reporting period. In
this case, the committee would report the payment as a disbursement on
Schedule B for operating expenditures. When, in a subsequent reporting
period, the communication is publicly distributed or otherwise publicly
disseminated, the committee would file a Schedule E for the independent
expenditure referencing the earlier Schedule B transaction. The
committee would also report the disbursement for the independent
expenditure as a negative entry on Schedule B so the total disbursements
are not inflated. Alternatively, if the committee wishes to disclose the
independent expenditure before the communication is publicly
disseminated, it could report the independent expenditure on Schedule E
for the reporting period in which the disbursement is made, with no
further reporting obligation except for the 48-hour report if the total
disbursements for independent expenditures equal or exceed \$10,000 at
the time the communication is publicly distributed or otherwise publicly
disseminated.

Obligations incurred but not yet paid (that are reportable debts), must
be reported on Schedule D. When, in a subsequent reporting period, the
communication is publicly distributed or otherwise publicly
disseminated, the committee must file a Schedule E referencing the debt
on Schedule D. The committee must continue to report the debt on
Schedule D (and any payment on it on Schedule E), until the debt is
extinguished.

The Commission seeks comment on its proposed interpretation of BCRA's
"makes or contracts to make" language and the triggering mechanism for
24-hour and 48-hour reports. Specifically, the Commission seeks comment
on an alternative interpretation that would make the actual disbursement
or the execution of the contract to make the disbursement for an
independent expenditure, rather than the public distribution or
dissemination of the resulting communication, the triggering mechanism
for the reporting requirements once the disbursements and obligations
equal or exceed the respective thresholds. This change would require
earlier reporting than is currently required or proposed (i.e., when the
communication is publicly disseminated). The policy reasons for adopting
this alternative interpretation would be similar to those described in
the NPRM on the reporting of electioneering communications.
[See]{.underline} "Electioneering Communications" NPRM, 67 [Fed.
Register]{.underline} 51,131 (Aug. 7, 2002).

Proposed 11 CFR 109.10 Independent expenditure by persons other than
political committees

Proposed new section 109.10 would set forth the revised reporting
requirements of pre-BCRA section 109.2. Under proposed new section
109.10, persons other than political committees would have to report
their independent expenditures on either FEC Form 5 or in a signed
statement containing certain information regarding the person who made
the independent expenditure and the nature of the expenditure itself.

Proposed paragraph (a) of 11 CFR 109.10 would provide a cross-reference
to 11 CFR 104.4 for political committees, under which they must report
independent expenditures. Paragraph (a) of pre-BCRA 11 CFR 109.2 would
be moved to proposed paragraphs (b) and (c) of section 109.10.

Proposed paragraph (c) would address reports of independent expenditures
aggregating \$10,000 or more with respect to a given election from the
beginning of the calendar year up to and including the 20^th^ day before
an election. This proposed paragraph would require that 48-hour reports
of independent expenditures be [received]{.underline} rather than
[filed]{.underline} by 11:59 pm of the second day after the date on
which the \$10,000 threshold is reached. [See]{.underline} discussion of
[received]{.underline} versus [filed]{.underline} in section 100.19,
above. Pre-BCRA paragraph (b) of section 109.2 indicates that 24-hour
reports must be received after a disbursement is made for an independent
expenditure, but no later than 24 hours after an independent expenditure
is "made" under pre-BCRA paragraph 109.1(f). [See]{.underline} the
discussion of proposed 11 CFR 104.4(f), above. Under the proposed rules,
paragraph (b) of pre-BCRA section 109.2 would be moved to new paragraph
(d) of 11 CFR 109.10 and revised to reflect the modification to the
aggregation and filing requirements in proposed 11 CFR 100.19(d) and
104.4 that are discussed above.

Proposed revisions to paragraph (d) of 11 CFR 109.10 (pre-BCRA 11 CFR
109.2(b)) would also mirror the changes in 11 CFR 104.4(c) as to when
24-hour reports of independent expenditures aggregating \$1,000 or more
after the 20^th^ day before the election.

Proposed paragraph (e) of 11 CFR 109.10 (i.e., pre-BCRA 11 CFR
109.2(a)(1) and (c)) would address the contents and verification of
statements filed in lieu of FEC Form 5. Proposed paragraph (e) would
include one significant change from pre-BCRA 109.2(a)(1) and (c): a
person making an independent expenditure would now be required to
certify that the expenditure was made independently from a political
party committee and its agents, in addition to the pre-BCRA requirement
of certification that the expenditure was not coordinated with a
candidate, the candidate's authorized committee, or an agent of either
of the foregoing. This change reflects the addition of political party
committees to the definition of "independent expenditure" in 2 U.S.C.
431(17) and the description of coordination in 2 U.S.C.
441a(a)(7)(B)(ii) under BCRA. For the same reasons explained with
reference to the definition of "independent expenditure" in proposed 11
CFR 100.16, the Commission would continue to include "consultation" in
the description of activity that would cause an expenditure to lose its
independence (i.e., "in cooperation, [consultation]{.underline}, or
concert with" a candidate or political party committee) even though the
statutory definition in 2 U.S.C. 431(17) does not retain the term.

**Proposed 11 CFR 104.20 -- Reporting electioneering communications**

## 1. Introduction

In the Electioneering Communications Final Rules, the Commission stated
it would revise the proposed rules on reporting electioneering
communications and re-propose the rules as part of this rulemaking.[^2]
Consequently, these proposed rules include the reporting requirements
for electioneering communications. Although, the Electioneering
Communications NPRM originally would have designated the reporting of
electioneering communications as section 104.19, the proposed rules
would designate reporting of electioneering communications as section
proposed 104.20. Please note that in the narrative that follows,
citations to 104.19 refer to the original proposed rules in the
Electioneering Communications NPRM, and citations to 104.20 refer to the
proposed rules in this BCRA reporting NPRM.

## 2. Disclosure date

BCRA requires persons who make electioneering communications costing
more than \$10,000 to file disclosure statements with the FEC within 24
hours of the disclosure date. 2 U.S.C. 434(f)(1). In the Electioneering
Communications NPRM, proposed section 104.19(b) would have defined
"disclosure date" as "the first date by which a person has made one or
more disbursements, or has executed one or more contracts to make
disbursements, for the direct costs of producing or airing
electioneering communications aggregating in excess of \$10,000; . . . "
67 [Fed. Register]{.underline} at 51,145 (August 7, 2002). The
Electioneering Communications NPRM, however, sought comment on whether
the disclosure date should be the date on which the electioneering
communication aired. Thus, under this proposal, an organization could
make disbursements or enter into a contract to make disbursements that
exceed \$10,000, but would not be required to disclose the disbursements
or contract until the electioneering communication is aired. Although
BCRA uses the term "airing," the Commission has determined that
"publicly distributed" more accurately encompasses how electioneering
communications are disseminated to the public, including the airing of
these communications. In the Electioneering Communications Final Rules,
the Commission defines "publicly distributed" to mean "aired, broadcast,
cablecast, or otherwise disseminated through the facilities of a
television station, radio station, cable television system, or satellite
system." 11 CFR 100.29(b)(6). Therefore, the proposed section
104.20(a)(5) would adopt the definition of "publicly distributed" in 11
CFR 100.29(b)(6) and the term "publicly distributed" would be used
throughout the proposed rules instead of "airing."

All of the commenters who addressed this issue disagreed with the
proposed rule and advocated adopting a final rule that would define
"disclosure date" as the date of the public distribution of the
electioneering communication.[^3] They argued that there is no
electioneering communication, and therefore no reporting requirement,
until the communication is actually publicly distributed. One witness at
the August 28, 2002 public hearing on electioneering communications did
acknowledge that in some cases it may be difficult to ascertain when an
electioneering communication is publicly distributed for purposes of
triggering the 24 hour reporting period because the contract may not
specify a precise time that the communication will be publicly
distributed or because in some instances the broadcaster does not air
the communication during the block of time specified in the contract. In
addition, the Commission believes that there could be legal and
practical concerns with compelling disclosure of potential
electioneering communications before they are finalized and publicly
distributed, particularly when such disclosure could force reporting
entities to divulge confidential strategic and political information
about their possible future activities.

Taking into consideration the comments described above, the Commission
proposes to make the date that an electioneering communication is
publicly distributed as the disclosure date under proposed section
104.20(a)(1). The Commission's proposal reflects its concerns that there
are legal and practical issues associated with compelling disclosure of
potential electioneering communications before they are finalized and
publicly distributed. To address the concern that a person may not know
the exact time an electioneering communication will be publicly
distributed during the day that it is scheduled to air, the Commission
is proposing to interpret the 24-hour period in which to report the
electioneering communication as starting at the end of the day in which
the communication is publicly distributed. Therefore, proposed section
104.20(b) would require reporting of an electioneering communication by
the end of the following day. The Commission seeks comment on this
interpretation.

[3. Aggregation of direct costs of producing or airing electioneering
communications]{.underline}

In the Electioneering Communications NPRM, proposed section 104.19(a)
would have required every person who makes a disbursement, or executes a
contract, for the direct costs of producing or airing electioneering
communications that aggregate in excess of \$10,000 during a calendar
year to file a statement with the Commission. Furthermore, proposed
section 104.19(a)(2) would have included a non-exhaustive list of what
constitutes direct costs of electioneering communications. The
Commission sought comment on two issues relating to this proposed
requirement. The first was whether the list in proposed section
104.19(a)(2) was adequate and whether the list should be exhaustive. The
second issue was whether the direct costs of producing an electioneering
communication and the direct costs of airing it should be aggregated
separately or together to determine whether the \$10,000 threshold has
been reached.

The commenters to the Electioneering Communications NPRM were split on
the issue of whether the list of direct costs in proposed section
104.19(a)(2) should be exhaustive or non-exhaustive. One commenter who
supported an exhaustive list argued that it is clear what is involved in
producing a communication, and the proposed rule adequately addresses
that. Another commenter recommended a non-exhaustive list so that the
Commission could retain flexibility to identify other costs associated
with producing and airing communications not listed in the proposed
rules.

In order to provide clear guidance on this issue, proposed 11 CFR
104.20(a)(2) would include an exhaustive list of direct costs associated
with producing or airing electioneering communications within the
proposed definition of "direct costs of producing or airing
electioneering communications." The Commission seeks comments on whether
there are other direct costs associated with producing or airing
electioneering communications that should be included in the proposed
definition. In particular, the Commission seeks comment on what, if any,
other in-house production costs should be considered direct costs. The
Commission also welcomes additional comments on whether the list in
proposed section 104.20(a)(2) should be exhaustive.

The commenters also disagreed on the question of the aggregation of
direct costs of producing or airing electioneering communications. Some
commenters argued that BCRA should be read to require that these costs
should be aggregated separately. Under this interpretation, if it costs
a person \$7,000 to produce the electioneering communication and \$7,000
to air it, the threshold has not been met because neither the direct
costs of producing or airing the electioneering communication reached
\$10,000. In contrast, other commenters argued that BCRA mandates that
the direct costs of producing and airing the electioneering
communication be aggregated. Under this approach, the example above
would result in the \$10,000 threshold being met because the direct
costs of producing and airing would be \$14,000.

The language in proposed section 104.20(b) would be identical to the
language originally proposed in section 104.19(a). Thus, when the direct
costs of producing or airing an electioneering communication exceed
\$10,000 when aggregated together, the person who is making the
electioneering communication would be required to file a statement with
the Commission when the electioneering communication is publicly
distributed.

## 4. Direction or control

The Electioneering Communication NPRM included two proposed
alternatives, identified as Alternative 4-A and Alternative 4-B, to
implement the BCRA requirement to disclose "any person sharing or
exercising direction or control over the activities" of the person
making the disbursement for electioneering communications.
[See]{.underline} 2 U.S.C. 434(f)(2)(A). Many of the commenters
expressed concern that both alternatives are vague and could encompass a
large number of people, especially for electioneering communications
made by membership organizations. Some of the commenters were also
concerned that disclosing this information may reveal sensitive or
confidential information and the decision-making processes of
organizations, especially non-profit organizations, thereby placing them
at a competitive disadvantage. For these reasons, these commenters
argued that the Commission should require limited, if any, disclosure of
persons who share or exercise direction or control over the person who
makes disbursements for electioneering communications or the activities
involved in making electioneering communications.

In contrast, several commenters, including the Congressional sponsors of
BCRA, disagreed with both alternatives because in their view neither
would disclose sufficiently the information required by BCRA.
[See]{.underline} [id.]{.underline} They argued that the purpose of this
disclosure requirement is to reveal not only those who have direction or
control over the electioneering communications, but also those who have
direction or control over the organization that makes the electioneering
communications.

While the Commission appreciates the concerns of those who objected to
disclosure of the decision-making process of their organizations, BCRA
requires persons who make electioneering communications to disclose
those who share or exercise direction or control over the person making
the disbursement for electioneering communications. 2 U.S.C.
434(f)(2)(A). Because neither Alternative 4-A nor Alternative 4-B in the
Electioneering Communications NPRM appear to encompass the disclosure
required by BCRA, proposed section 104.20(c)(2) would not incorporate
either of the two alternatives. Instead, proposed paragraph (c)(2) would
adopt the language of 2 U.S.C. 434(f)(2)(A).

The Electioneering Communications NPRM sought comment on whether the
proposed rules should define "direction or control over the activities"
and whether such definition should draw upon the existing earmarking
regulations at 11 CFR 110.6(d) or the definition of "to direct" at 11
CFR 300.2(n). A commenter suggested that the definition should be
broadly defined and should include those persons with the ability to
influence the decision-making process concerning electioneering
communications. While this same commenter agreed that the definition of
"to direct" could be modified for inclusion into the definition of
"direction or control over the activities," another commenter stated
that it is unsuitable to use the definition of "to direct" or the
earmarking regulations in this context.

To provide further guidance on proposed section 104.20(c)(2), the
proposed rules would include a definition of "sharing or exercising
direction or control." Because it appears that "direction or control" in
the context of 2 U.S.C. 434(f)(2)(A) refers to the management or
decision-making process of an organization or a qualified nonprofit
corporation ("QNC"), proposed section 104.20(a)(3) would define "sharing
or exercising direction or control" to mean exercising authority or
responsibility for policy formulation, day-to-day management, obligation
of funds, or hiring or firing employees. The Commission believes that
these functions would provide sufficient scope to capture responsible
persons and entities without sweeping too broadly.

In the alternative, the Commission could define "sharing or exercising
direction or control" to mean the officers, directors, partners, or any
other individuals who have the authority to bind the organization,
entity, or person making the disbursement for electioneering
communication. This alternative, which is not reflected in the proposed
rules, seeks a more objective, bright-line definition of "direction or
control" and would focus the definition on those persons who have the
authority to act on behalf of the organization. The Commission seeks
comments on these approaches to implementing 2 U.S.C. 434(f)(2)(A). The
Commission also seeks comments on how these proposals would apply to
individuals making electioneering communications.

## 5. Identification of candidates and elections

Under 2 U.S.C. 434(f)(2)(D), the elections to which the electioneering
communications pertain, as well as the names of all clearly identified
candidates referred to in the communications, must be disclosed. The
Electioneering Communications NPRM provided two alternatives to proposed
11 CFR 104.19(b)(5), identified as Alternative 5-A and Alternative 5-B,
which would implement this statutory provision. 67 [Fed.
Register]{.underline} 51,146. Both alternatives would require disclosure
of the election and all clearly identified candidates who are referred
to in the electioneering communication, but contain different language.
Commenters preferred the language of Alternative 5-B because it would be
easier to read and would be more consistent with 2 U.S.C. 434(f)(2)(D).
Alternative 5-B arguably also is more consistent with what the
Commission is proposing as the disclosure date, [see]{.underline} above,
as there is no doubt as to the names of clearly identified candidates
appearing in a communication once a communication is publicly
distributed. Accordingly, proposed section 104.20(c)(5) would
incorporate the language of Alternative 5-B of the Electioneering
Communications NPRM.

## 6. Disclosure of donors

BCRA requires persons who make electioneering communications and create
segregated bank accounts for electioneering communications to disclose
the names and addresses of contributors who contribute an aggregate of
\$1,000 or more to that segregated account. 2 U.S.C. 434(f)(2)(E). If
the organization that makes electioneering communications does not use a
segregated bank account, then it would be required to disclose the names
and addresses of contributors who contribute an aggregate of \$1,000 or
more to that organization from the beginning of the preceding year
through the disclosure date. 2 U.S.C. 434(f)(2)(F).

[A. Contributions/contributors v. donations/donors]{.underline}

In the Electioneering Communications NPRM, the Commission sought comment
on whether amounts given to persons who make disbursements for
electioneering communications are contributions subject to the
limitations, prohibitions, and reporting requirements of the Act. The
Commission proposed to treat amounts given to political committees as
contributions because BCRA refers to "funds contributed" and
"contributors." [See]{.underline} 2 U.S.C. 434(f)(2)(E) and (F).
Conversely, amounts given to persons who are not political committees
would not be considered contributions. Comments on this issue were
generally favorable to the Commission's approach.[^4]

Upon further analysis of this issue, the Commission proposes a different
approach as to the question of whether amounts given for electioneering
communications are contributions or donations. As stated in the
Electioneering Communications Final Rules, the definition of
"electioneering communications" does not include expenditures or
independent expenditures that are subject to the limitations,
prohibitions, and reporting requirements of the Act and the Commission's
regulations. 11 CFR 100.29(c)(3). Communications made by political
committees that would otherwise qualify as electioneering communications
would be reported as expenditures or independent expenditures because
they are made in connection with Federal elections. By operation of the
exemption of expenditures and independent expenditures from the
definition of "electioneering communications," these communications
would not be considered electioneering communications. Therefore,
political committees, by definition, do not make electioneering
communications. Consequently, only persons who are not political
committees would make disbursements for electioneering communications.

As stated above and in the Electioneering Communications NPRM, the
Commission proposed to designate amounts given for electioneering
communications purposes to persons who are not political committees as
"donations." The Commission believes that amounts given to entities that
are not political committees for electioneering communications should
not be treated as contributions and should not count towards political
committee status, unless these amounts would otherwise constitute a
contribution under subparts B and C of part 100. Although the statutory
language of BCRA uses the terms "contributor" and "contributed," it does
not use the term "contribution" nor does it amend the definition of
"contribution" in 2 U.S.C. 431(8). Thus, it appears that Congress did
not intend these amounts to be contributions automatically to persons
who are not political committees, especially in light of the statutory
exemption for expenditures and independent expenditures from the
definition of "electioneering communications." Accordingly, proposed
section 104.20(c) refers to amounts given for electioneering
communications as "donations" and the givers of the amounts as "donors."
Additionally, all comments on the Electioneering Communications NPRM on
this issue favored this approach. The Commission again seeks comment on
this approach.

[B. Disclosure requirements]{.underline}

In reading 2 U.S.C. 434(f)(2)(E) and (F) together with 2 U.S.C.
441b(c)(3)(B), the Commission stated in the Electioneering
Communications NPRM that these disclosure requirements for segregated
bank accounts appear to apply only to qualified nonprofit corporations
organized under 26 U.S.C. 501(c)(4). [See]{.underline} 67 [Fed.
Register]{.underline} 51,143. Therefore, proposed 11 CFR 104.19(b)(6)
would have required only QNCs to disclose their contributors for
purposes of electioneering communications. [See]{.underline} 11 CFR
114.10 for QNC status.

The Electioneering Communications NPRM narrative that explained proposed
section 104.19(b)(7) clearly states that all persons who make
electioneering communications, including QNCs that do not use segregated
bank accounts, would be required to disclose their contributors who
contribute an aggregate of over \$1,000 during the prescribed time
period. 67 [Fed. Register]{.underline} 51,143. Nevertheless, some
commenters interpreted proposed section 104.19(b)(7) to apply only to
QNCs and objected to limiting the disclosure requirements to only QNCs.
They argued that BCRA does not limit the requirements of 2 U.S.C.
434(f)(2)(E) and (F) to just QNCs. Consequently, they recommended that
all persons who make electioneering communications should be required to
disclose their contributors under proposed section 104.19(b)(7) and the
option for segregated bank accounts in proposed section 104.19(b)(6)
should be extended to all persons who make electioneering
communications. Additionally, some commenters expressed concern as to
the requirement that organizations would be required to disclose their
donors because donors may become inhibited from making donations
aggregating over \$1,000.

Because the Commission sees merit in these arguments, the revised
proposed rules reflect the commenters' suggestions and would make clear
that the application of proposed sections 104.20(c)(7) and (8) would
include all persons who make electioneering communications, not just
QNCs. Proposed paragraphs (c)(7) and (8) would incorporate the language
in proposed sections 104.19(b)(6) and (7) with modifications as
discussed below.

(1) [Disclosure of donors when exclusively using segregated bank
    accounts to make disbursements for electioneering
    communications]{.underline}

Under proposed section 104.19(b)(6) in the Electioneering Communications
NPRM, QNCs that use segregated bank accounts to make disbursements for
electioneering communications would be required to disclose only
contributors who contributed an aggregate in excess of \$1,000 to that
segregated bank account. As stated above, the Commission agrees with the
suggestion that this option should be made available to all persons who
may make electioneering communications. Accordingly, proposed section
104.20(c)(7) would allow all such persons to establish a separate bank
account to limit their reporting of the identities of their donors of
\$1,000 or more to those who have donated directly to that bank account,
as long as only funds from the separate bank account are used to pay for
electioneering communications. Additionally, the Commission notes that
the final rules at 11 CFR 114.14(d) provide such persons that are not
QNCs with the option of establishing a segregated bank account similar
to that allowed to QNCs.

(2) [Disclosure of donors when not exclusively using segregated bank
    accounts to make disbursements for electioneering
    communications]{.underline}

Because there was some confusion as to the scope of the reporting
requirement in proposed 11 CFR 104.19(b)(7), proposed 11 CFR
104.20(c)(8) would differ from proposed section 104.19(b)(7) in that it
would remove the reference to QNCs. Thus, proposed section 104.20(c)(8)
would make clear that all persons who make electioneering communications
would be required to disclose their donors who donate over \$1,000 in
the aggregate, if they do not use segregated bank accounts.

One commenter to the Electioneering Communications NPRM argued that the
members of the organizations it represented could be subject to negative
consequences if their names are disclosed in connection with an
electioneering communication. The FECA provides for an advisory opinion
process concerning the application of any of the statutes within the
Commission's jurisdiction or any regulations promulgated by the
Commission, and such a group could also seek an advisory opinion from
the Commission to determine if the group would be entitled to an
exemption from disclosure that would be analogous to the exemption
provided to the Socialist Workers Party in Advisory Opinions 1990-13 and
1996-46 (both of which allowed the Socialist Workers Party to withhold
the identities of its contributors and persons to whom it had disbursed
funds because of a reasonable probability that the compelled disclosure
of the party\'s contributors\' names would subject them to threats,
harassment, or reprisals from either Government officials or private
parties.). BCRA's legislative history recognizes the need for limited
exceptions in these circumstances. [See]{.underline} 148 Cong. Rec.
S2136 (daily ed. Mar. 20, 2002) (remarks of Sen. Snowe).

## 7. Other content requirements

Proposed section 104.20(c) would require disclosure of additional
information, not described above, in connection with the reporting of
electioneering communications as mandated by BCRA. [See]{.underline} 2
U.S.C. 434(f)(2)(A) and (C). Proposed paragraph (c)(1) would require
identification of the person making the disbursement or the person's
principal place of business. Proposed paragraph (c)(3) would require
identification of the custodian of the books and accounts. Proposed
paragraph (c)(4) would require disclosure of information about
disbursements that exceed \$200. Proposed paragraph (c)(6) would require
identifying the disclosure date.

[8. Recordkeeping requirement]{.underline}

Proposed 11 CFR 104.20(d) would require all persons who make
electioneering communications or accept donations for the purpose of
making electioneering communications to maintain records in accordance
with 11 CFR 104.14. In the Electioneering Communications NPRM, proposed
section 104.19(c) would have exempted QNCs from the recordkeeping
requirements. The commenters who addressed this issue were split on
whether QNCs should be exempted from the recordkeeping requirements. A
commenter who did not support the exemption argued that because these
entities are required to report their electioneering communications,
they should also be required to maintain records that relate to the
electioneering communications in order to support their reports.

In determining that all of the reporting and recordkeeping requirements
for political committees were too burdensome for QNCs making independent
expenditures, the Supreme Court in [FEC v. Massachusetts Citizens For
Life, Inc.]{.underline} ("MCFL") noted that MCFL, Inc. was subject to
more "extensive requirements and more stringent restrictions" than
unincorporated nonprofit organizations. 479 U.S. 238, 254-255 (1986). In
contrast, proposed section 104.20(d) would require QNCs to maintain only
those records that pertain to their electioneering communications which
should not be burdensome for them. Additionally, this recordkeeping
requirement is no different than what is required of any other person,
including unincorporated nonprofit organizations, that make
disbursements for electioneering communications. Furthermore, the
availability of these records would be necessary to assess the accuracy
of the electioneering communications reports filed by QNCs. Therefore,
proposed paragraph (d) would not include an exemption for QNCs. The
Commission welcomes further comments on this issue.

[9. Proposed amendment to 11 CFR 105.2]{.underline}

The Electioneering Communications NPRM proposed amending current 11 CFR
105.2 to require principal campaign committees of Senatorial candidates
and other political committees that support only Senatorial candidates
to file their statements of electioneering with the Commission. The
Commission, however, has determined that political committees do not
make electioneering communications by operation of the definition of
"electioneering communications" in 11 CFR 100.29. Therefore, proposed
section 105.2(b) would not incorporate the language from the
electioneering communications NPRM or include mention of statements of
electioneering communications.

[10. Filing with the Secretary of State]{.underline}

Unlike the proposed provisions for independent expenditures, the
proposed rules for electioneering communications do not include
provisions that remove the requirement to file reports of electioneering
communications with the Secretary of State if that state has obtained a
waiver under 11 CFR 108.1(b). [See]{.underline} proposed 11 CFR
104.4(e), below. The Commission seeks comments on whether proposed 11
CFR 104.20 should include such a provision. (At the current time, only 1
state, Montana, and two territories, Guam and Puerto Rico, have not
obtained waivers.)

# PRINCIPAL CAMPAIGN COMMITTEE AND NATIONAL POLITICAL PARTY COMMITTEE REPORTING SCHEDULES 

Proposed 11 CFR 104.5(a)---Principal campaign committees of House and
Senate candidates

Proposed 11 CFR 104.5(a) would set forth the new reporting schedule for
the principal campaign committees of House of Representatives and Senate
candidates. Prior to BCRA, the principal campaign committees of House
and Senate candidates were allowed, in the non-election years, to file
semi-annually. After November 6, 2002, excluding reports for runoff
elections, principal campaign committees of House and Senate candidates
must file quarterly in non-election years, as well as in the election
year. 2 U.S.C. 434(a)(2)(B). Proposed revised section 104.5(a)(1) would
state that these committees must file quarterly. Like other quarterly
reports, these must be complete as of March 31, June 30, September 30,
and December 31, and must filed by April 15, July 15, October 15, and
January 31 of the following year, respectively. Proposed paragraph
(a)(2) of 11 CFR 104.5 would set forth the requirements for pre-election
and post-general election reports in the election year, which would be
identical to paragraphs (a)(1)(i) and (ii) of the pre-BCRA section. The
rules regarding semi-annual reporting (in pre-BCRA section 104.5(a))
would be deleted. Please note that these new reporting dates do not
affect the principal campaign committees or other authorized committees
of Presidential candidates.

**Proposed 11 CFR 104.5(c) -- Committees other than authorized
committees of candidates**

Proposed revisions to the introductory language for paragraph (c) would
clarify that while non-authorized political committees may choose to
file quarterly or monthly, a national committee of a political party
must report monthly under proposed 11 CFR 104.5(c)(4).

Proposed 11 CFR 104.5(c)(4) would be a new provision implementing the
BCRA requirement that national political party committees must report on
a monthly basis. 2 U.S.C. 434(a)(4)(B). Previously, national party
committees were allowed to file quarterly in the election year and
semi-annually in the non-election years. The changes to the Act by BCRA
specifically state that national political party committees must file
monthly, including pre-general election and post-general election
reports. These changes may have been intended to remove any doubt as to
whether national political party committees that filed quarterly had to
file these reports if they did not make any contributions or
expenditures on behalf of candidates in these elections during pre-BCRA
election reporting periods. These rules would implement BCRA's
amendment.

The proposed rules would apply to the Congressional campaign committees
of the political parties as national political party committees. The
Commission seeks comments on whether Congressional campaign committees
should so specifically be included in the regulations.

# 11 CFR 104.3(g) -- Funds for party office buildings 

Before BCRA, the Act and Commission regulations provide an exception to
the definition of contribution and expenditure for donations to a
national or State party committee that are specifically designated to
defray any cost incurred for the construction or purchase of its office
facility. Pre-BCRA 2 U.S.C 431(8)(B)(vii); pre-BCRA 11 CFR 100.7(b)(12).
This exception is reflected in current 11 CFR 104.3(g), which provides
that funds or anything of value that were designated for party office
building funds and received by a party committee must be reported as
memo entries.

To implement BCRA, the Commission adopted new regulations at 11 CFR
300.12 and 300.35, which eliminate this exception for national party
committees and provide that the source and reporting of donations used
for the costs incurred by a State, district, or local party committee
for the purchase or construction of its office building are subject to
State law if donated to a non-Federal account of the committee.
"Prohibited and Excessive Contributions: Non-Federal Funds or Soft
Money; Final Rule," 67 [Fed. Register]{.underline}, 49,123 and 49,127.
However, if funds or things of value are contributed to (or for use by)
the Federal account of a State, district, or local party committee for
the purchase or construction of its office building, then the amounts
donated are contributions under the Act. Consequently, proposed
paragraph (g) of 11 CFR 104.3 would make it clear that any funds or
things of value received by a Federal account and used for the purchase
or construction of an office building, regardless of a specific
contributor designation, are contributions and are not treated
differently from other funds or things of value donated to a Federal
account.

**Certification of no effect pursuant to 5 U.S.C. 605(b) (Regulatory
Flexibility Act)**

The Commission certifies that the attached proposed rules, if
promulgated, would not have a significant economic impact on a
substantial number of small entities. The bases of this certification
are several. There are four areas in which new rules are being proposed.
The economic impact on small entities of each subject of new proposed
rules is addressed below.

[Independent expenditure reporting]{.underline} First, with regard to
the proposed new rules addressing independent expenditures that the
national, State, and local party committees of the two major political
parties, and other political committees are not small entities under 5
U.S.C. 601 because they are not small businesses, small organizations,
or small governmental jurisdictions. Further, individual citizens
operating under these rules are not small entities.

The small entities to which the rules would apply would not be unduly
burdened by the proposed rules because there is no significant extra
cost involved, as independent expenditures must already be reported.
Collectively, the differential costs will not exceed 100 million dollars
per year. In addition, new reporting requirements would not
significantly increase costs, as they only apply to those spending
\$10,000 or more on independent expenditures, and the actual reporting
requirements are the minimum necessary to comply with the new statute
enacted by Congress.

[Electioneering communications]{.underline} Second, with regard to the
proposed rules addressing electioneering communications, the only burden
the proposed rules impose is on persons who make electioneering
communications, and that burden is a minimal one, requiring persons who
make such communications to provide the names and addresses of those who
made donations to that person when the costs of the electioneering
communication exceed \$10,000. If that person is a corporation that
qualifies as a QNC, then it must also certify that it meets that status.
The number of small entities affected by the proposed rules is not
substantial.

The Commission would adopt several rules that seek to reduce any burden
that might accrue to persons who must file reports. First, the
Commission would interpret the reporting requirement such that no
reporting is required until after an electioneering communication is
publicly distributed. More than likely, this would only require that
person to file one report with the Commission. Also, the Commission
would allow all persons paying for electioneering communications to
establish segregated accounts, and to report the names and addresses of
only those persons who contributed to those accounts. Further, the
Commission would interpret the statute to not require that a
certification of QNC status be filed until the person is also required
to file a disclosure report. These are significant steps the Commission
would take to reduce the burden on those who would make electioneering
communications. The overall burden on the small entities affected by
these proposed rules for reporting electioneering communications would
not amount to \$100 million on an annual basis. Moreover, these proposed
rules would be no more than what is strictly necessary to comply with
the new statute enacted by Congress.

[Reporting schedules for house and senate candidates]{.underline} Third,
regarding the new rules requiring a different non-election year
reporting schedule for the authorized committees of House and Senate
candidates, the reporting frequencies have increased, however, the
burden would not amount to \$100 million on an annual basis. Moreover,
these proposed rules would be no more than what is strictly necessary to
comply with the new statute enacted by Congress.

[Reporting schedules for national committees of political
parties]{.underline} Fourth, regarding the new rules requiring a
different reporting schedule for national committees of political
parties, as noted above, the two major national party committees are not
small entities under 5 U.S.C. 601.

List of Subjects

[11 CFR Part 100]{.underline}

Elections

[11 CFR Part104]{.underline}

> Campaign funds, political committees and parties, reporting and
> recordkeeping requirements.

# [11 CFR Part 105]{.underline}

Document filing.

## 11 CFR Part 108

Elections, reporting and recordkeeping requirements.

[11 CFR Part109]{.underline}

Elections, reporting and recordkeeping requirements.

for the reasons set out in the preamble, the Federal Election Commission
proposes to amend subchapter A of chapter I of title 11 of the [Code of
Federal Regulations]{.underline} as follows:

part 100 -- scope and definitions

1\. The authority citation for part 100 would continue to read as
follows:

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

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

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

With respect to documents required to be filed under 11 CFR parts 101,
102, 104, 105, 107, 108, and 109, and any modifications or amendments
thereto, the terms [file]{.underline}, [filed]{.underline}, and
[filing]{.underline} mean one of the actions set forth in paragraphs (a)
through (f) of this section. For purposes of this section, document
means any report, statement, notice, or designation required by the Act
to be filed with the Commission or the Secretary of the Senate.

\(a\) [Where to deliver reports.]{.underline} \* \* \*

\(b\) [Timely filed. General rule.]{.underline} A document other than a
those addressed in paragraphs (c) through (f) of this section, is timely
filed upon deposit as registered or certified mail in an established
U.S. Post Office and postmarked no later than 11:59 p.m. Eastern
Standard/Daylight Time of the day of the filing date, except that
pre-election reports so mailed must be postmarked no later than 11:59
p.m. Eastern Standard/Daylight Time of the fifteenth day before the date
of the election. Documents sent by first class mail must be received by
the close of business on the prescribed filing date to be timely filed.

\(c\) [Electronically filed reports.]{.underline} For electronic filing
purposes, a document is timely filed when it is received and validated
by the Federal Election Commission at or before 11:59 p.m. Eastern
Standard/Daylight Time on the filing date.

\(d\) [48-hour and 24-hour reports of independent
expenditures.]{.underline}

\(1\) [48-hour reports of independent expenditures.]{.underline} A
48-hour report of independent expenditures under 11 CFR 104.4(b) or
109.10(c) is timely filed when it is received by the Commission no later
than 11:59 p.m. Eastern Standard/Daylight Time of the second day
following the date on which independent expenditures aggregate \$10,000
or more in accordance with 11 CFR 104.4(f), any time during the calendar
year up to and including the 20^th^ day before an election.

\(2\) [24-hour reports of independent expenditures]{.underline}. A
24-hour report of independent

expenditures under 11 CFR 104.4(c) or 109.10(d) is timely filed when it
is received by the Commission no later than 11:59 p.m. Eastern
Standard/Daylight Time of the day following the date on which
independent expenditures aggregate at least \$1,000, in accordance with
11 CFR 104.4(f), during the period less than 20 days but more than 24
hours before an election.

\(3\) [Permissible means of filing]{.underline}. In addition to other
permissible means of filing, a 24-hour report or 48-hour report of
independent expenditures may be filed using a

> facsimile machine or by electronic mail if the filer is not required
> to file electronically in accordance with 11 CFR 104.18.

\(e\) [48-hour statements of last-minute contributions.]{.underline} In
addition to other permissible means of filing, authorized committees
that are not required to file electronically may file 48-hour
notifications of contributions using facsimile machines. All authorized
committees that file with the Commission, including electronic filers,
may use the Commission's web site's on-line program to file 48-hour
notifications of contributions. [See]{.underline} 11 CFR 104.5(f).

\(f\) [24-hour statements of electioneering communications.]{.underline}
A 24-hour statement of electioneering communications under 11 CFR 104.20
is timely filed when it is received by the Commission within 24 hours of
the disclosure date (see 11 CFR 104.20(a)(1)). In addition to other
permissible means of filing, a 24-hour statement of electioneering
communications may be filed using a facsimile machine or by electronic
mail if the filer is not required to file electronically in accordance
with 11 CFR 104.18.

**PART 104 ‑‑ REPORTS BY POLITICAL COMMITTEES (2 U.S.C. 434)**

3\. The authority citation for part 104 would continue to read as
follows:

Authority: 2 U.S.C. 431(1), 431(8), 431(9), 432(i), 434, 438(a)(8) and
(b), and 439a.

4\. In §104.3, paragraph (g) would be revised as follows:

**§ 104.3 Contents of reports (2 U.S.C. 434(b), 439a).**

\* \* \* \* \*

\(g\) Building funds.

\(1\) A political party committee must report gifts, subscriptions,
loans, advances, deposits of money, or anything of value that are used
by the political party committee's Federal accounts to defray the costs
of construction or purchase of the committee's office building. See 11
CFR 300.35. Such a receipt is a contribution subject to the limitations
and prohibitions of the Act and reportable as a contribution, regardless
of whether the contributor has designated the funds or things of value
for such purpose and regardless of whether such funds are deposited in a
separate Federal account dedicated to that purpose.

\(2\) Gifts, subscriptions, loans, advances, deposits of money, or
anything of value that are donated to a non-Federal account of a State,
district, or local party committee and are used by that account for the
purchase or construction of its office building are not contributions
subject to the reporting requirements of the Act. The reporting of such
funds or things of value is subject to State law.

\(3\) Gifts, subscriptions, loans, advances, deposits of money, or
anything of value that are used by a national committee of a political
party to defray the costs of construction or purchase of the national
committee's office building are contributions subject to the
requirements of paragraph (g)(1) of this section.

\* \* \* \* \*

5\. Section 104.4 would be revised to read as follows:

**§ 104.4 Independent expenditures by political committees (2 U.S.C.
434(b), (d), and (g)).**

\(a\) [Regularly scheduled reporting]{.underline}. Every political
committee that makes independent expenditures must report all such
independent expenditures on Schedule E in accordance with 11 CFR
104.3(b)(3)(vii). Every person other than a political committee must
report independent expenditures in accordance with 11 CFR 109.10.

\(b\) [Reports of independent expenditures made at any time up to and
including the 20^th^ day before an election.]{.underline}

(1) Independent expenditures aggregating less than \$10,000 in a
    calendar year. Political committees must report on Schedule E of FEC
    Form 3X at the time of their regular reports in accordance with 11
    CFR 104.3, 104.5 and 104.9, all independent expenditures aggregating
    less than \$10,000 with respect to a given election any time during
    the calendar year up to and including the 20^th^ day before an
    election.

(2) Independent expenditures aggregating \$10,000 or more in a calendar
    year.

> Political committees must report on Schedule E of FEC Form 3X all
> independent expenditures aggregating \$10,000 or more with respect to
> a given election any time during the calendar year up to and including
> the 20^th^ day before an election. Political committees must ensure
> that the Commission receives these reports no later than 11:59 p.m.
> Eastern Standard/Daylight Time of the second day following the date on
> which a communication that constitutes an independent expenditure is
> publicly distributed or otherwise publicly disseminated. Each time
> subsequent independent expenditures relating to the same election
> aggregate an additional \$10,000 or more, the political committee must
> ensure that the Commission receives a new 48-hour report of the
> subsequent independent expenditures. See 11 CFR 104.4(f) for
> aggregation. Each 48-hour report must contain the information required
> by 11 CFR 104.3(b)(3)(vii) indicating whether the independent
> expenditure is made in support of, or in opposition to, the candidate
> involved. In addition to other permissible means of filing, a
> political committee may file the 48-hour reports under this section by
> any of the means permissible under 11 CFR 100.19(d)(3).

\(c\) [Reports of independent expenditures made less than 20 days, but
more than 24 hours before the day of an election.]{.underline} Political
committees must ensure that the Commission receives reports of
independent expenditures aggregating \$1,000 or more with respect to a
given election, after the 20th day, but more than 24 hours~~,~~ before
12:01 a.m. of the day of the election, no later than 11:59 p.m. Eastern
Standard/Daylight Time of the day following the date on which a
communication is publicly distributed or otherwise publicly
disseminated. Each time subsequent independent expenditures relating to
the same election aggregate \$1,000 or more, the political committee
must ensure that the Commission receives a new 24-hour report of the
subsequent independent expenditures. Each 24-hour report shall contain
the information required by 11 CFR 104.3(b)(3)(vii) indicating whether
the independent expenditure is made in support of, or in opposition to,
the candidate involved. Political committees may file reports under this
section by any of the means permissible under 11 CFR 100.19(d)(3).

\(d\) [Verification.]{.underline} Political committees must verify
reports of independent expenditures filed under paragraph (b) or (c) of
this section by one of the methods stated in paragraph (d)(1) or (2) of
this section. Any report verified under either of these methods shall be
treated for all purposes (including penalties for perjury) in the same
manner as a document verified by signature.

\(1\) For reports filed on paper (e.g., by hand-delivery, U.S. Mail or
facsimile machine), the treasurer of the political committee that made
the independent expenditure must certify, under penalty of perjury, the
independence of the expenditure by handwritten signature immediately
following the certification required by 11 CFR 104.3(b)(3)(vii).

\(2\) For reports filed by electronic mail, the treasurer of the
political committee that made the independent expenditure shall certify,
under penalty of perjury, the independence of the expenditure by typing
the treasurer's name immediately following the certification required by
11 CFR 104.3(b)(3)(vii).

\(e\) [Where to file]{.underline}. Reports of independent expenditures
under this section and part 109 shall be filed as follows.

\(1\) For independent expenditures in support of or in opposition to, a
candidate for President or Vice President: with the Commission and the
Secretary of State for the State in which the expenditure is made.

\(2\) For independent expenditures in support of, or in opposition to, a
candidate for the Senate or the House of Representatives: with the
Commission and the Secretary of State for the State in which the
candidate is seeking election.

\(3\) Notwithstanding the requirements of paragraphs (e)(1) and (2) of
this section, political committees and other persons shall not be
required to file reports of independent expenditures with the Secretary
of State if that State has obtained a waiver under 11 CFR 108.1(b).

\(f\) [Aggregating independent expenditures for reporting
purposes.]{.underline} For purposes of determining whether 24-hour and
48-hour reports must be filed in accordance with paragraphs (b) and (c)
of this section and 11 CFR 109.10(c) and (d), aggregations of
independent expenditures must be calculated as of the first date during
the calendar year on which a communication that constitutes an
independent expenditure is publicly distributed or otherwise publicly
disseminated, and as of the date that any such communication with
respect to the same election is subsequently publicly distributed or
otherwise publicly disseminated. Every person must include in the
aggregate total all disbursements for independent expenditures, and all
enforceable contracts, either oral or written, obligating funds for
disbursements for independent expenditures, made with respect to any
communication that has been publicly distributed or otherwise publicly
disseminated, during the calendar year, with respect to a given election
for Federal office.

6\. In § 104.5, paragraphs (a) and (g) would be revised to read as
follows, and introductory language to paragraph (c), and paragraphs
(c)(4) and (j) would be added to read as follows:

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

\(a\) [Principal campaign committee of House or Senate
candidate.]{.underline} Each treasurer of a principal campaign committee
supporting a candidate for the House of Representatives or for the
Senate must file reports on the dates specified at paragraph (a)(1) of
this section in election years and non-election years, and paragraph (2)
of this section in election years.

\(1\) [Quarterly reports.]{.underline}

\(i\) Quarterly reports must be filed no later than the 15th day
following the close of the immediately preceding calendar quarter (on
April 15, July 15, and October 15), except that the report for the final
calendar quarter of the year must be filed no later than January 31 of
the following calendar year.

\(ii\) The report must be complete as of the last day of each calendar
quarter.

\(iii\) The requirement for a quarterly report shall be waived if, under
paragraph (a)(2) of this section, a pre-election report is required to
be filed during the period beginning on the 5th day after the close of
the calendar quarter and ending on the 15th day after the close of the
calendar quarter.

\(2\) [Additional reports in the election year.]{.underline}

\(i\) [Pre-election reports.]{.underline}

\(A\) Pre-election reports for the primary and general election must be
filed no later than 12 days before any primary or general election in
which the candidate seeks election. If sent by registered or certified
mail, the report must be mailed no later than the 15th day before any
election.

\(B\) The pre-election report must disclose all receipts and
disbursements as of the 20th day before a primary or general election.

\(ii\) [Post-general election report.]{.underline}

\(A\) The post-general election report must be filed no later than 30
days after any general election in which the candidate seeks election.

\(B\) The post-general election report must be complete as of the 20th
day after the general election.

\* \* \* \* \*

\(c\) [Committees other than authorized committees of
candidates.]{.underline} Each political committee that is not the
authorized committee of a candidate, except for a national committee of
a political party (including the national Congressional campaign
committees of a political party), which must comply with paragraph
(c)(4) of this section, must file either: election year and non-election
year reports as prescribed at paragraphs (c)(1) and (2) of this section;
or monthly reports as prescribed at paragraph (c)(3) of this section. A
political committee reporting under 11 CFR 104.5(c), except for a
national committee of a political party (including the national
Congressional campaign committees of a political party), may elect to
change the frequency of its reporting from monthly to quarterly and
semi-annually or vice versa. A committee, except for national committee
of a political party (including the national Congressional campaign
committees of a political party), may change its filing frequency only
after notifying the Commission in writing of its intention at the time
it files a required report under its current filing frequency. Such
committee will then be required to file the next required report under
its new filing frequency. A committee may change its filing frequency no
more than once per calendar year.

\* \* \* \* \*

\(4\) A national committee of a political party, including a national
Congressional campaign committee, must report monthly in accordance with
paragraph (c)(3) of this section.

\* \* \* \* \*

\(g\) [Reports of independent expenditures.]{.underline}

\(1\) [48-hour reports of independent expenditures.]{.underline} Every
person who or which must file a 48-hour report under 11 CFR 104.4(b)
must ensure the Commission receives the report no later than 11:59 p.m.
Eastern Standard/Daylight Time of the second day following the date on
which a communication that constitutes an independent expenditure is
publicly distributed or otherwise publicly disseminated. Each time
subsequent independent expenditures by that person relating to the same
election as that to which the previous report relates aggregate \$10,000
or more, that person must ensure that the Commission receives a new
48-hour report of the subsequent independent expenditures no later than
11:59 p.m. Eastern Standard/Daylight Time of the second day following
the date on which the \$10,000 threshold is reached or exceeded. See 11
CFR 104.4(f) for aggregation.

\(2\) [24-hour report of independent expenditures.]{.underline} Every
person who or which must file a 24-hour report under 11 CFR 104.4(c)
must ensure that the Commission receives the report no later than 11:59
p.m. Eastern Standard/Daylight Time of the day following the date on
which a communication that constitutes an independent expenditure is
publicly distributed or otherwise publicly disseminated. Each time
subsequent independent expenditures by that person relating to the same
election as that to which the previous report relates aggregate \$1,000
or more, that person must ensure that the Commission receives a 24-hour
report of the subsequent independent expenditures no later than 11:59
p.m. Eastern Standard/Daylight Time of the day following the date on
which the \$1,000 threshold is reached or exceeded. See 11 CFR 104.4(f)
for aggregation.

\(3\) Each 24-hour or 48-hour report of independent expenditures filed
under this section shall contain the information required by 11 CFR
104.3(b)(3)(vii) indicating whether the independent expenditure is made
in support of, or in opposition to, the candidate involved.

\(4\) For purposes of this part, a communication that is mailed to its
intended audience is publicly disseminated when it is relinquished to
the U.S. Postal Service.

\* \* \* \* \*

\(j\) 24-hour statements of electioneering communications. Every person
who has made a disbursement or who has executed a contract to make a
disbursement for the direct costs of producing or airing electioneering
communications as defined in 11 CFR 100.29 aggregating in excess of
\$10,000 during any calendar year shall file a statement with the
Commission by 11:59 p.m. Eastern Standard/Daylight Time of the day
following the disclosure date. The statement shall be filed under
penalty of perjury and in accordance with 11 CFR 104.20.

7\. Section 104.19 would be added and reserved.

**§ 104.19 Reserved.**

8\. Section 104.20 would be added to read as follows:

**§ 104.20 Reporting electioneering communications (2 U.S.C. 434(f)).**

\(a\) [Definitions:]{.underline}

\(1\) Disclosure date means:

\(i\) The first date during the calendar year on which an electioneering
communication is publicly distributed provided that the person making
the electioneering communication has made one or more disbursements, or
has executed one or more contracts to make disbursements, for the direct
costs of producing or airing electioneering communications aggregating
in excess of \$10,000; or

\(ii\) Any other date during the same calendar year on which an
electioneering communication is publicly distributed provided that the
person making the electioneering communication has made one or more
disbursements, or has executed one or more contracts to make
disbursements, for the direct costs of producing or airing
electioneering communications aggregating in excess of \$10,000 since
the most recent disclosure date during such calendar year.

\(2\) Direct costs of producing or airing electioneering communications
means the following:

\(i\) Costs charged by a production company, such as studio rental time,
staff salaries, costs of video or audio recording media, and talent; or

\(ii\) The cost of airtime on broadcast, cable or satellite radio and
television stations, and the charges for a broker to purchase the
airtime.

\(3\) Sharing or exercising direction or control means exercising
authority or responsibility for:

(i) Development, establishment, or change of policy for the organization
    or corporation;

(ii) Day-to-day management of the organization or corporation;

(iii) Obligation of funds or signing contracts; or

(iv) Hiring or firing employees.

\(4\) Identification has the same meaning as in 11 CFR 100.12.

\(5\) Publicly distributed has the same meaning as in 11 CFR
100.29(a)(5).

\(b\) [Who must report.]{.underline} Every person who has made a
disbursement or who has executed a contract to make a disbursement for
the direct costs of producing or airing electioneering communications,
as defined in 11 CFR 100.29, aggregating in excess of \$10,000 during
any calendar year shall file a statement with the Commission by 11:59
p.m. Eastern Standard/Daylight Time of the day following the disclosure
date. The statement shall be filed under penalty of perjury and contain
the information set forth in paragraph (c) of this section. Persons
other than political committees must file these 24-hour statements on
FEC Form 9.

\(c\) [Contents of statement.]{.underline} Every person described in
paragraph (b) of this section shall disclose the following information:

\(1\) The identification of the person who made the disbursement, or who
executed a contract to make a disbursement, and, if the person is not an
individual, the person's principal place of business;

\(2\) The identification of any person sharing or exercising direction
or control over the activities of the person who made the disbursement,
or who executed a contract to make a disbursement, for electioneering
communications;

\(3\) The identification of the custodian of the books and accounts from
which the disbursements for electioneering communications were made;

\(4\) The amount of each disbursement, or amount obligated, of more than
\$200 during the period covered by the statement, the date the
disbursement was made, or the contract was executed, and the
identification of the person to whom that disbursement was made;

\(5\) All clearly identified candidates referred to in the communication
and the elections in which they are candidates;

\(6\) The disclosure date as defined in this section.

\(7\) If the disbursements were paid exclusively out of a segregated
bank account consisting of funds provided solely by individuals who are
United States citizens, United States nationals, or who are lawfully
admitted for permanent residence under 8 U.S.C. 1101(a)(20), the name
and address of each donor who donated an amount aggregating \$1,000 or
more to the segregated bank account, aggregating since the first day of
the preceding calendar year; and

\(8\) If the disbursements were not paid exclusively from the segregated
bank account, the name and address of each donor who donated an amount
aggregating \$1,000 or more to the person making the disbursement,
aggregating since the first day of the preceding calendar year.

\(d\) [Recordkeeping.]{.underline} All persons who make electioneering
communications or who accept donations for the purpose of making
electioneering communications, must maintain records in accordance with
11 CFR 104.14.

**PART 105 -- DOCUMENT FILING (2 U.S.C. 432(g))**

9\. The authority citation for part 105 would be revised to read as
follows:

Authority: 2 U.S.C. 432(g), 434, 438(a)(8).

10\. Section 105.2 is revised to read as follows:

> **§ 105.2 Place of filing; Senate candidates, their principal campaign
> committees, and committees supporting only Senate candidates (2 U.S.C.
> 432(g)(2), 434(g)(3)).**

\(a\) [General Rule.]{.underline} Except as provided in paragraph (b) of
this section, all designations, statements, reports, and notices as well
as any modification(s) or amendment(s) thereto, required to be filed
under 11 CFR parts 101, 102, and 104 by a candidate for nomination or
election to the office of United States Senator, by his or her principal
campaign committee or by any other political committee(s) that supports
only candidates for nomination for election or election to the Senate of
the United States shall be filed in original form with, and received by,
the Secretary of the Senate, as custodian for the Federal Election
Commission.

\(b\) [Exception.]{.underline} 24-hour and 48-hour reports of
independent expenditures must be filed with the Commission and not with
the Secretary of the Senate, even if the communication refers to a
Senate candidate:

PART 108 -- FILING COPIES OF REPORTS AND STATEMENTS WITH STATE OFFICERS
(2 U.S.C. 439)

11\. The authority citation for part 108 would continue to read as
follows:

Authority: 2 U.S.C. 434(a)(2), 438(a)(8), 439, 453.

12\. Paragraph (b) of § 108.1 would be amended to read as follows:

\(b\) The filing requirements and duties of State officers under this
part 108 shall not apply to a State if the Commission has determined
that the State maintains a system that can electronically receive and
duplicate reports and statements filed with the Commission. Once a State
has obtained a waiver pursuant to this paragraph, the waiver shall apply
to all reports that can be electronically accessed and duplicated from
the Commission, regardless of whether the report or statement was
originally filed with the Commission. The list of states that have
obtained waivers under this section is available on the Commission's web
site.

**PART 109 -- COORDINATED AND INDEPENDENT EXPENDITURES (2 U.S.C.
431(17), 441a, Pub. L. 107-155 sec. 214(c) (March 27, 2002)).**

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

Authority: 2 U.S.C. 431(17), 434(c), 441a; Pub. L. 155-107 sec. 214(c).

14\. Section 109.2 would be removed and reserved.

**§ 109.2 \[Removed and reserved\]**

13\. Section 109.10 would be added to read as follows:

> **§ 109.10 How do political committees and other persons report
> independent expenditures?**
>
> \(a\) Political committees, including political party committees, must
> report independent expenditures under 11 CFR 104.4.
>
> \(b\) Every person, other than a political committee, who makes
> independent expenditures aggregating in excess of \$250 with respect
> to a given election in a calendar year shall file a verified
> statement, or report on FEC Form 5 in accordance with 11 CFR 104.4(e)
> containing the information required by paragraph (e) of this section.
> Every person filing a report or statement under this section shall do
> so at the end of the reporting period during which any such
> independent expenditures that aggregate in excess of \$250 are made
> and in any reporting period thereafter in which additional independent
> expenditures are made.

\(c\) Every person, other than a political committee, who makes
independent expenditures aggregating \$10,000 or more with respect to a
given election any time during the calendar year up to and including the
20th day before an election, must report the independent expenditures on
FEC Form 5, or by signed statement if the person is not otherwise
required to file electronically under 11 CFR 104.18. (See 11 CFR
104.4(f) for aggregation). The person making the independent
expenditures aggregating \$10,000 or more must ensure that the
Commission receives the report or statement no later than 11:59 p.m.
Eastern Standard/Daylight Time of the second day following the date on
which a communication is publicly distributed or otherwise publicly
disseminated. Each time subsequent independent expenditures relating to
the same election aggregate an additional \$10,000 or more, the person
making the independent expenditures must ensure that the Commission
receives a new 48-hour report of the subsequent independent
expenditures. Each 48-hour report must contain the information required
by paragraph (e)(1) of this section.

\(d\) Every person making, after the 20th day, but more than 24 hours
before 12:01 a.m. of the day of an election, independent expenditures
aggregating \$1,000 or more with respect to a given election must report
those independent expenditures and ensure that the Commission receives
the report or signed statement no later than 11:59 p.m. Eastern
Standard/Daylight Time of the day following the date on which a
communication is publicly distributed or otherwise publicly
disseminated. Each time subsequent independent expenditures relating to
the same election aggregate \$1,000 or more, the person making the
independent expenditures must ensure that the Commission receives a new
24-hour report of the subsequent independent expenditures. See 11 CFR
104.4(f) for aggregation. Such report or statement shall contain the
information required by paragraph (e) of this section.

\(e\) Content of verified statements and verification of reports and
statements.

\(1\) Contents of verified statement. If a signed statement is
submitted, the statement shall include:

\(i\) The reporting person\'s name, mailing address, occupation, and the
name of his or her employer, if any;

\(ii\) The identification (name and mailing address) of the person to
whom the expenditure was made;

\(iii\) The amount, date, and purpose of each expenditure;

\(iv\) A statement that indicates whether such expenditure was in
support of, or in opposition to a candidate, together with the
candidate\'s name and office sought;

\(v\) A verified certification under penalty of perjury as to whether
such expenditure was made in cooperation, consultation, or concert with,
or at the request or suggestion of a candidate, a candidate's authorized
committee, or their agents, or a political party committee or its
agents; and

\(vi\) The identification of each person who made a contribution in
excess of \$200 to the person filing such report, which contribution was
made for the purpose of furthering the reported independent expenditure.

\(2\) Verification of independent expenditure statements and reports.
Every person shall verify reports and statements of independent
expenditures filed pursuant to the requirements of this section by one
of the methods stated in paragraph (2)(i) or (ii) of this section. Any
report or statement verified under either of these methods shall be
treated for all purposes (including penalties for perjury) in the same
manner as a document verified by signature.

\(i\) For reports or statements filed on paper (e.g., by hand-delivery,
U.S. Mail, or facsimile machine), the person who made the independent
expenditure shall certify, under penalty of perjury, the independence of
the expenditure by handwritten signature immediately following the
certification required by paragraph (e)(1)(v) of this section.

\(ii\) For reports or statements filed by electronic mail, the person
who made the independent expenditure shall certify, under penalty of
perjury, the independence of the expenditure by typing the treasurer's
name immediately following the certification required by paragraph
(e)(1)(v) of this section.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

David. M. Mason

#####  Chairman

Federal Election Commission

DATED: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> BILLING CODE: 6715-01-P

[^1]: Note that BCRA, as passed on February 14, 2002, in the House of
    Representatives and on March 20, 2002, in the Senate, would have
    required 24-hour reports to be [filed]{.underline} rather than
    [received]{.underline} within 24 hours of the time the independent
    expenditure was made. In technical corrections to BCRA, Congress
    amended section 212 of BCRA by reinstating the
    [received]{.underline} requirement. H.R. Con. Res. 361, March 22,
    2002.

[^2]: The original proposed rules were part of the Electioneering
    Communications NPRM. [See]{.underline} 67 [Fed.
    Register]{.underline} 51,131, 51,145 (Aug. 7, 2002).

[^3]: Two commenters, submitting joint written comments, originally
    supported a two-step reporting process -- a general report when
    there is a disbursement or a contract followed later by a specific
    report when the electioneering communication is aired. While
    testifying at the Commission's public hearing, these commenters
    agreed that defining "disclosure date" as the date of airing is an
    acceptable alternative.

[^4]: Further, one commenter, in response to the Commission's question
    concerning treatment of amounts given to non-Federal accounts of a
    separate segregated fund or to non-connected committees, argued that
    amounts given to non-Federal accounts should not be treated as
    contributions subject to the prohibitions against corporations and
    labor organization funding electioneering communications.