·,.....,-····. 

94th Congress, 1st Session House ~ocument No. 9~293 

. . . . . 

• DISCLOSURE OF C.AlIP ..A.IGN .FINANCES 

I 

I'. 

, 

. COIDIUNICATION 

FRO)[ 

THE CHAIR1I...t\.N 

FEDERAL· ELECTION .. CO)I)IISSIOX 

--~ 

".:,* . j 

'l'RANS:M:I'ITING· · 

PROPOSED. REGULATIOXS GOYERXIXG THE DISCLO~rRE 

OF C.AllP.\.IGN ·}"IX!.XCES BY. C.:\XDID.-\TES .-\XD COlDlll,­

TEES INVOLVED IN FEDERAL ELECTIOXS. Pl"R8l".\X1" ~ro 

SECTIOX 316(c) OF ·THE FEUElt..:\:L ELECTIOX C.(lIP.\I~X 

. .ACT OF. 1911, .AS • .\:llEXDED 

··( I# ·1.."' ·.-., -,·. -, ''II . ... . \ J·:.f ~.) j\:. j '.,.~." '."J ':1 ~i · . .i . ; • ' .•. \..• . ,•\ t . ·. ·. ~L :j · t .' , . I : \ 1 .• t; l 1 

. -··· -·~· ... I.,;,~ ~J ;_ . 

Ff !l[:' ~ ! . r' fl'r~,·· ft1"!·1~rl""'' , ., ur.~ ·"L-Lu t r-'.' !,·,, .... , '. ,:n. ... --"·• I. """ Jh . . . . . . . . . . -

DECElrnER 4, 10,5.-Referred. t~· the Committee on Ho~se: .\clmiui~trntion . 

·and ordered to be printed 

u.s; GOVERN:\TENT PRINTING OFFICE . . · . .. . I 

67-011 · WASHINGTON : · 10i5 

I· 

I ... 
2t 

ExPL.\NATIOX AND JusTIFICATIOXS OF THE DISCLOSURE 

. REGULATIONS, PARTS 100-105 AXD 109-111 

§ 100. 1 Scope. 

:' These regulations are for the implementation of Title 2, United States.·

Corle. Contributions and expenditures required t9 be disclosed under 

Title 2 :1nd under these regulntions clo not necessnrily count for limitation purposes under Title 18, U.S.C. .· · · . The regulations of this chnpter. are issued pursiinnt. to the aut.horit.Y · of the Commission codified in 2 U.S.C. §§ 437(d)(8) and 438(a)(IO), 

"to m:,ke, amend, nnd repeal such rules ... as are n~cessnrv- to carrv out · the pr~visions of this :".\ct." · · · · .. ., 

· § 100.2 Oa.ndfrlate. . 

There are three ways for nn mclh·i<lual to become o. cnndidate: 

{1) tnke action under ·sto.te law; (2) receh .. e t·ontributions or mnke 

expenditures or give consent to another person to do so; nnd _(3) foil 

to disa,·ow · the _actiYity of . another person mnking contiibutions or 

expenditures after the 9ommission has gh·en the individunl written .

noiice. · . . The first two .methods follow the st.atuton· latigunge of 2 U.S.C. 

§ 431 (b). The third route to become a candicfiite is necessary to pre­ . Yent persons from taking unauthorized action which woulcl'result in an 

indh·idual meeting the statutory definition of cnnclidnte. Ir the Com-

• mission becomes o.ware of such activitv, it can 2"iYe the individual an 

opportunit.y to disavow the acth·ity. ... . · .. .... · · · · · 

§ 100.3 Com.ird$sion. 

. This section merely notifies the public of the Federal Election Com~. 

mission's address to facilitate full disclosure. . .. , · . · · . 

. § 100.4 Contriblition. . . . . . 

This definition pnrnllels tl1e stnti1te, 2· t:.S.C. § 431 (e). Subsiclinn· 

terms ' SUCh ns "loan ' " "moneyll . and· "an,·thina of \"'Blue" hnYe ., ::, been 

defim>d to implement the statute. · · 

. .A contmct. · or agreement hns been limited in the regufotion to 

written contracts so that promises, like an oral pledge, nre not inchuled as contributions. If an inclh·iclunl recluc~s a pledge to writin~, . it, is reportable. The distinction was dr1nn1 between written nncl oml . :u:rcem~nts b~cnuse of the principal problem of keepin~ ,records of 

oral n~reements. Further, whiJe an indivi<hrnl mnY not be,~,t nll serious 

nbout"nn oral pfod~e h~ or she is more lik(lly .to h<lnor n written pledge. 

_..\.n oml contrnct. which results in a contribution is reported nt the time 

the c~ontribution is, nctunlly mnde; a written contr:1ct to mnke- n contribution is r('ported nt the time the contrnct fa nrnde~ ns nn obligntion ·· owt'd to the cnn<li<lnte .. or committee, ntlll is reported fl.t- the lime tlrn 

cont.ribution is mntle. · · · 

.A t.mnsf <'r of funds from n po1itir.nl. c·on,mittcc or other 5:imilar. 

sourc<' to nnother committee or cnnclidnte i~ reportable 35 n ront1ibu.;. 

t ion. Th~ ~t ntutc s:iys '·tommittee or other ~our<:('." Rend litemlJy, 

this would mP:m every tontribution to n politicnl commiUe<' or canclidnt c woulcl b(' n trnnsfcr. The definitfon hus therefore.been irnnow(\d 

to :-:o·m·(·es ~imilnr to po1iiic:n) c:onnuittc,e~ or or~nni;mtions. A ennclidate 

is U-C'~tcd ns n politicnJ commit.tee for reportit:g purpo~es. 

.. ,., '"') 

"-- . . 
28 

· '.'Personal s~n·ices 1:e~dered without charge" i~ de.fined .in the regulations as services provided when the vol~nteer 1s not bemg compensated by an employer for the time used for campai~ activitv. 

The rental value of the use of an individual's residence need not be I 

calculated for the $500 exclusion from contribution. This exception I 

· · was made because requiting disclosure is truly a de min·imis matter. · Computation of the Yttlne of a residence would also be exceedinO'ly 

burdensome to the candidate and contributor alike. . 0 

. ~ . 

§ 100.5 Earmarking. . . 

The term "enrmnrking" is not used in the statt1te but is used in the· 

regulations and therefore a definition is needed. It is used to ~1ean 

design·ated contributions nnd expenditures, passed through a conduit. 

The use of a commit tee · as a ''conduit'' is reported by all persons 

involYed in the transaction. This definition follows that of tlie prior. 

supervisory officers. · · . . . 

§ 100.6 Election. . . . . 

General election is define~l to include not only the· normal November 

election but also an election where the result "'ill cause an individual 

to !lSSU!Jle ·an offi~e va.cnnt ·P.rior to· the election f~r whatever reason. · · This will cover situations hke the New Hampshire Senate race, nn · elect:ion which is the result of the death or resignation of the incumbent, · -t·.1 

and even the unusual cnse where an election t.o fill a two and one-half .J..., .. 

month term occurs on the same day as the _normnl November election. · The. definitions uncler "election" are desirned to be neutral as 

between part.x nffilinted nnd independent crindidntes. Generally, each 

candidnte will participnte in two. elections: The primary (for·indepenclents, a comparable. pe1iod during which he or she may ·secure a 

.. position on the genernl election ballot) and the general election. .· _ · · ,vhen o. stn.te pa.rty holds a. convention or caucus for the peuosrp 

.of .. choosing candidt1.tes for the primary ballot, such cnndidntes, in 

, · · __ cn.mpri.igning ptior to the cnucus or convention, . would use funds .. · ~llocatcd for the p1inrn.ry election. These candidates would be responsible for determining what proportion of their expenditures woul<l be 

nccessn.rv to secure conYention delegates and what proportion would 

be needed to cnmpn.ign in the primary itself. A party could; bY its · . o"·n b~·ln.ws or by ngi·eement .of the cnndidn.tcs, _ voluntarily limit 

expenditures for a conYent.ion -or caucus to a fi .. \:ecl n.mount so th:\t n. 

ren.sonnble amount r<'nrn.in('d to be used in t.he actuo.l primary. If 

a.dclitionu.l funding W:t:5 o.Ho, .. tecl for pre-primary caucuses or con- ·. ventions, it would bl' sufficient to establish parity between the cimcli- . dntes who were nomin.:ttl1<1 by the cn.ucus and independent candida.tes, 

and . the cn.ndicfo.tes who foil to obtn.in nomina.t.ion in the caucus. "\Ye 

adopt this nppro:\ch eognizn.nt of the fact. thnt in some stntes, a 

candid:\tc mn.y hn.ve to run in ii primnry if he or she doesnot receiYe 

a. certain· p£'rcentn.ge of. the, Yotes in a con,·ent.ion. The candillMe 

must. judge Jiow much to spend on the conn~ntion nnd how much to 

]1old h:1.ek for n. possible primary; .the two events still constitute but 

one PlPction. · )Ii nor p:-trt~-. §-1.nclit hit(':,;·. are tren.tcd, · the . sn.mc . ns· independent 

c:1ndid:ttc 1S. Thi::; W:l~ dotll' hec::rn~e minor p:l.rtics ustrnlly <lo not Jrn.ve 

:wtl!d 1>rimft.1T (\lc(·t ion~ :1nd ·s1>t1 n<l. n. gre.1.t clcn.1 of effort. to secure a 

hullot po:;itioi1. 'l'hcrefort', tht:ir p1im~1ry is co1L';i~lerc<l to occur on · f 
29· 

the ·1ast day to qualify for a ballot position in the e:enernl election or · -on the date of the last major po.rty primary in that ·state, whichever 

comes later. 

§ 100.7 ·· Expenditure. . 

The definition of expenditure parallels the stntu te, 2 U.S.C. § 431 (f) • 

.As for the definition of contribution (§ 100.4), :the subdefinitions of 

"payment," "moneylland "anything of value" hn.Ye been clo.rified. . . Many comments suggested that only the pn.~-:rnent of interest on . the loan be treated as an expenditure and not the repa:rment of the 

loan itself. For purposes of the limitations under 18 U.S.C. § 608, we 

agree ... Nevertheless, for purposes of the disclosure regulat.ions, the 

cren.tion of an obligo.tion to repay should constitute an expenditure 

and must be reported. The reporting forms proYide for the reporting -of Joan repayments in a way to eliminate double-counting. 

§ l 00.8 Federal office. 

FoJlows 2 U.S.C. §431(c) • 

. . · ·§ 100.9 File,filed or filing. 

Follows 2 U.S.C. § 431 (d). 

·§ 100.10 Identification. 

(Ji.. . ·. Follows 2 U.S.C. § 431 (j). 

·§ 100.11 Occ·upation. 

This term is used in the stn.tut~, but is not defined in it. 

·§ 100.12 Principal place of business. . . . 

·. This. term is used in the statute, but is not defined in it. 

§ ,00.13 Person . . This definition follows 2 U.S.C. §43l(h) •. Subsection (b) adds an 

-exception to the statut.e fo·r groups actin~ together for a single trans-_ 

·action. This exception allows, for examp1e, a· group of inclividuo.ls to 

place a single. ad in a major newspaper, so_ long. ns each individ},lnl 

member of the group does not spend more than 51,000 concemmg _. one candidate. This pro,ision was drafted to minimize infiingement .. . of freedom of association nnd speech. The· indhiclnnls report under 

the independent expenditure or contribution provision. 2 . U.S.C. 

§ 434{e); § 105.10. , · · 

§ ·100.14 Political committee~. . . 

· :· The general definition. of political fcoinmittee follows 2 U.S.C. 

· § 431 (d). The four types of political committees are: ·. · · · · : · · (I) principal cnmpnign com~ittee; . ·. . . · 

- (2) single cnnclicfo.te committee; · . (3) multicaridid3.te committee; and· . . . · (4) pnrty committee. . - . . . · · -

· The definition of principal campaign committee fo1lows 2 U.S.C. 

§ 431(n). . · 

A single cnndid:1te committee is a political committee other than a 

principal committee wllich supports only· one candidate. . : . · 

· A multicandidnte committee is a politico.I committee whiclrsupports 

two or more cn.ndidntes .. A. qualified multicandidn.te committee. is a 

multicnndidate committee which meets the requirements of 18 U.S.C. 
30 

§ 60S(b)\2) nnd therefore can contribute $5,000 t~ a cnnclidate~ This 

definition is in tbe_regulntions becnuse the comments received showed 

a need for it to eliminate confusion. · · 

The definition of party committee is needed so tlrnt it can be 

distinguished from other multicanclidate committees.. . · . 

The terni "authorized" is used in the Act but is not defined in it. · The term "affiliated"·is use<l in the Act but. not defined init. This 

definition will cause the listing of affiliated committ~es in a com-· 

mittee's Statement of Organization. . : · 

A group of persons makin~ a single transaction have been exempted . · · 

from the definition of polihcal committee for the same reason that . ·. 

this exception is made from the definition of person. See _§ 100.13. 

§ 100.15 Political pa.rty. 

This definition follows 2 U.S.C. § 431 (in). 

§ 100.16 National committee. · 

. This definition follo,l"S 2. u.~.c. § 431 (k). 

§ 100.17 ·. State. 

Th~s definition follows 2 U.$.C. § 431 (i). 

§ 100.18 State ·committee, s11bordinat~ committee. . 

· This definition identifies those party organizo;tions ·responsible for 

party activity below the statewide level.. · ._ 

· .. Pa1·t 101-0andiclate status ~-nd designations 

§ 101.1 Du.ration ofcandidate status.; · ·. 

Candidates, unless .. their personal reporting requirement is w:1ived~· .· 

cont~nue to -rep~rt l!,ntil all of·their per:;01i:ildebts concerning their · election are extmgm:;hed. They may- terminate cnndidate stntus by letter. · · 

§ 101.2 Can<lirlate designations. 

After becomin~ ~-· condidtite an individual is required to de:-i~ate 

a principal campaign committee, and campaign depositoiies. This is 

accomplished on ·one form, which also contains the waiver request. 

These designations nre necesst1ry to implement 2 U.S.C. § 4:32(e) and 

(f), and § 437b(a)(l). . · · · - . . 

. If a cn.ndidat.e receiYes conhibutions or_ mnkes expenditures re~s.rd-

!ng the. general election prior to the ~rimary election, the candidate 

.·ls reqmrecl to use ncceptable nccountmg methods. to separate thege 

· contributions and expenditures. Candidates have t.he option, :1mong ·· others, of mnintaining sepnrnte checking accounts or keeping $epurs.te 

records nncl ledger~. . . · . This section n.110,,·s . the receipt of contributions for the p.~neral · · election prior to the prinrnry election ·but create,:,, snf egnnrd:,; which 

minimize the po:--sibi1ity of gencrnl election receipts nncl cli~bursements being commingled "ith primnry election receipts nnd db:bun;t'­

ments. 

·§ 101.a ll"'aiver of ca.111lidate reporting.: · 

· Thi~ . section J>ro";de.s for the · waiver of. n. cnndid a t.e per~onally . · 

reporting if the cnndidntcdoe~ not n:uikeexpenditures orrccciYe con- . tribntion~. 'I'Iiis seetion is b:1~t>tl on ·2 U.S.C. § 4:rn(b) (1). The w:1h·m·. 

becomes_effcctivc :it the time the npplicntion i~ filed~ . · · · . · 
31 

Part 102-. Registration. of political, committees 

§ 102.1 Registration of political, committees. . 

., Poli~ical committe~s -~nre required to file a Statement of Organiza-. 

hon with the Comm1ss1on, the Secretary of the Senate or the Clerk· 

of the House of Representatives, as appropriate, pursuant to 2 U.S.C. 

§ 433 (a). Existing commi ttces which Jin ve registered with the super­

'riso~y officers do not hnYc to re;..register. 

§ l 02.2 Forms and filing. · 

This secti~nfollows 2 U.S.C. § 433(b). 

§ 102.3 Ohanges or correction in information.. 

· This s.ection follows 2 U.S.C. § 433 (c). · 

· § 102.4 . Di~continuance of regi~tration. 

This section follows 2 U.S.C. § 433(d). 

§ 102.5 Identification nttmber. 

· Each political committee is assigned an identification number_ to 

implement the full disclosure p1inciples of the· Act, and for ease in 

clearly identifying committees ,~th similar names. 

§ 102.6 Registration of state ·committees; establishment of · Federal . · · · .. · campa·ign commillees by poU.ti.cal comm·ittees. ·. . 

This section provides two options for £oliticnl committees which . pa.rticipnte in state political campaigns. fhey cnn either report all · receipts and expenditures or establish· a separate Federal comm~tte.e_ . · and report only Federal activity. This ·should be especially beneficial 

for state politicnl pnrty committees, the _bulk of whose activity is · typically on behalf of non-Federal candidates. The_segrega.tion of funds 

prevents the commingling of cont.iibutioru, which may be lawful for 

state candidates but unla,vf ul for Federal c~ndidates. · · 

Part 109-0rganizat-ion of political committees 

· § 103.1 · Organi2at:ion. 

· "This section follows 2 u.s~c. § 432(a), and" proYides for continuity . ·'in tl~e offices of chairman and tren~mer. · . - . 

§ 103.2 Rece·ipts of contribiitions. 

· This section follows 2 U.S.C. § 432{b). 

·•. § 103.3 Accounting for contrib1ltions arul expenditures. 

. This section follows 2 U.S.C. § 432(c) and (tl). ·. Subsection (e) . 1·e~ognizes thnt,;·even "'ith at1·easurer's best effons, so1ne information . . 

. = 

.cnnnot be ~btained. In that case, the tre11,-5m·cr is to keep a. record of . t.he efforts toobto.in it. · 

§ 103.4 Petty ca.sh fund. _ 

· A politicnl committ~e mny mnint.ain a petty cn~h fmut · for making 

expenditures of less than $100. This sect.ion implements 2 U.S.C. 

§ 437(b). . 

§ 108.5 Designation of principal campa.-ign com1nittee. ·· . 

This section ·follows 2 U.S.C. § 432({). Some comments received 

.requested that the definition of '.'support". in § 103.5(c) be such thnt· a · 

candidate coulc.l contribute to another cnndi<lute through the cont.rib-

\ ,. ... 
uting cnndiclate's ·principal· campaign c·ommittee. The Commission 

believes thut -the stntute explicitly prohibits a principal· campaign 

·committee from making a contribution to, or expenditure on behalf, of 

:any other candidate in any amount. The tvpe of contribution described · -cnn be made by establislung an nuthorizea committee, by using excess 

·campaign fund~, or by making a contiibution from personal funds. 

§ 103.6 Authorization of political committee. 

· Thi~ section follows 2 U.S.C. § 432{e). · 

·§ 103.7 Unauthorized activity; notice. 

'l"his section follows 2 U.S.C. § 432{e) •. 

. § 103.8 ·Not-ice; solicitation of contributions. 

This section follows 2 U.S.C. § 435. · 

·§ 103.9 Records,· retention. . . 

·This section follows 2 U.S.C. § 432{d). ·. · · 

·§ 103.10 Segregated funds. 

This section follows 2 U.S.C. § 432{b). 

Part 104-0ainpaign depositories 

§ 104.1 Not·ification of the 0<J'!11,mission. 

Unnuthorized single candidate committees and . ~:1ulticandidate · -committees designate their own depositories .on their Statement of 

Orsrnnizntion filed with the aJ?prop1iat.e office. Principal cnmpai~ 

-con1mittees and authorized sin~le .carididate committees desiO'nn.te t11e 

deposito1ies which their author1zini candidate has designated on their. 

1·espertiYe Statements. Authorizea single candidate committees file 

their Statement with the respecti~e principal campaign committee. 

·This procedure follows the stntute, ·2 U.S.C. § 437b(a) and § 433{e). 

· § 104.2 Depositories. . . 

The section permits only s·tate ancl nationally chnrtered bnnks to. 

be used ns campaign depositories us required by 2 U.S.C. § 437b(n) (1) . · .and (n) (2). · · 

§ 104.3 Deposits and·expendUures. 

(n.) .All contributions must be deposited in the approp1inte campaign 

clepositorv within 10 clo.y~. ·AU expenditures must be made by cherk 

drn.w1i on the nppropiinte nccount in the depository except expendi- tures for $100 or less may be made from a petty cnsh fund. . . ·. Subsection (n) follows the requirements_ of 2 U.S.C. · § 43ib{2). 

The 10-tlay deposit requirement was designed to encourage the prompt . disposition of contributions rather. thnn permit "stale" checks to be . kept }yin!?· nround or lost .. In addition, so?1e large cn~paigns ha Ye' 

used the elate of deposit ns the date of receipt for rcportmg purposrs. 

'l'he 10-dnv requirement would mean reported receipt elates would be 

close to nc .. tunl rc:'ceipt. . · . · · · . ·· · 

(b) Contributions of. questionnhle legnlity shall eit-her be returned 

to the· contributor or deposited while the treasurer determines ·the · Y:1Iitiiti.- of the c.-ontribution.· · · . . · Subsection (b) wns added by ·the Commission nt the suggestion of 

mnny committees us n guide to_ the proper handling of qucstionnble 

-contributions. 

:f ' 

v{.j I 
·. (.) 

§ 104.4 Vice-Presidential candidate campaign depo-sitor·ies. 

This section follows 2 U.S.C. § 437b(c). 

Part 105-Reports by political committees and candidates. 

§ 105.1 · General. 

. (a) Quarterly reports are required by political ·commit.tees until . all debt.sand obligations are extinguished and a Notice of Terminntion 

is filed. (b) Candidates must also continue to report until all debts. - are extinguished unless a waiver is granted. (c) Quarterly reports are 

·. required only if contributions exceed $1,000 or expenditures exceed 

$1,000. . · . . . 

The reporting of debts and obligations is required by the Commission . under the authont.y of 2 U.S.C. § 434(b).{ll). The quarterly report· 

exemption is required under 2 U.S.C. § 434{a)(l){C). The requirement for notifying the Commission that a committee is exempted from 

filing quarterh~ reports is· to _prevent the committee from being· considered in viofntion for late filing. The Commission otherwise lias no 

way to knmv. the.~ommittee is exempt. . · · . 

§ 105.2 Form and content of reports. 

This section generally follows 2 U.S.C. § 434(b). Subsection (b)(l) 

requires a statement of cash on hand, to provide a starting·point for · each report. Subsection (b)(3){ii). is to prevent a recurrent problem: 

when committees . reported· all contributions-not just those. o~e-~ 

$100-· the inclusion of large numbers· of the small contributions made 

it mor.e difficult to isolate large contributions. Reports may contnin . all contributions, but the over $100 contributions must be on o. separute 

schedule from the under $100. · · 

. ·Subsection (b)(7)(i) makes it explicit that campaign funds may 

be taken out of depositories for investment purposes~ The jnterest 

or other proceeds from an inv~stinent must be reported. · Subsection (e) {1) pro\·ides for consolidated reports by pnncipnl 

· campaign -committ.ees. The consolidation "ill include the candidate's 

report (unless waiYecl) and the r~ports of authorized committees. 

While the statute does not specifically include the candicln.te's report 

in the .consolidntion, the Commission believes that it would be best to 

include it since the expenditure limit, can be most easily tracked that 

wny by the principal campaign committee. . · . · 

Subsection (c) (2) sets out nn exception for the consolidntion requirement, for the 10-dny pre-election report only~ Becnuse p1indpn\ 

cnmpnign committees must file the conRolidnted report on the. Stlme 

du~r ns authorized committees must file l\ith it, and bccnuse there is 

only fiye d:1Ys between the close of books nncl the dnte of filine (three . days if the .. report is mailed), the Commission is· permit ting the . prfocipal compnign committee, if it choo~es, to file only a summnry · sheet on the 10th d:1Y, and n complete consolidnted report fiye dnys 

before the election. 'l'he Comri1is~ion belieYes this meets the requirement for public disclosure nnd 1·t'lieves the. committees of n. difficult 

burden. . .· . ·. · ·· · . · . · 

§ 105.3 . Disclosure of receipt and consum11tion of in-kind contrib-ut.ions. 

This section provides for the valuation ai:id clisclosi1rc of in-kind 

contributions, (contributions other thnn cnsh or.check). The yaluation 

is determined by the usunl nn<l no~;mal. charge n t the time of the ~ 

/ 
.34 

contiibution. Since § 100.4(b) excludes certain kinds · of in-kind 

·donations from· the definition· of contribution, those donations need 

not be report.ed. Furthermore, in-kind cont1ibutions need not be 

·separately listed in reports if ·the ag~regate value is less than $100 

from a single contributor. The regulation distin~uishes between goods 

and services, and contributions to be liquidatect, such as stock or art 

objects. The Commission's authority to require disclosure of in-kind 

contributions is found in 2 U.S.C. § 434(b)(2) and (b){l3). 

§ 105.4 Filing dates. 

· All political committees and candidates are required to file pre 

election, post election and quarterly . reports, and an annual report 

·when appropriate. The filing dates are required by the statute, 2 · 

U.S.C. § 434(a), except that this section ·requires that the 4th quar- . terly 'report be filed by January 31 instead of January 10 for election 

·:years . even though a. close reading· of the statute would set it for · Jnnuary 10. Congressional intent seems to be for Jnnunn· 31. This ,vas · -done a.t the request of mnnv ,vitnesses who wanted tlie 4th quarter 

' due date to coincide with the annual report due date. .··· ' 

Under § 105.4(0, contributions of $1,000 or more received subsequent to the 15th day, but more than 48 hours before an election, 

·must be s_pecially reported, but only if the $1;000 was given for that ~ 

,election. The Commission felt that a strict :requirement of speciallv ' l .. . ; .. reportin~ the $1,000 received even if it was for a different election, ' 

would place. an ·unnecessary reporting requirement on candidates or . committees involved in . presidential primaries. The section further . provides for monthly rfp<'rting in certain cases instend of the nsunl 

·reporting dates. 'fhe Commission's authority for this provision is 

located at 2 U.S.C. § 434(3). · ·· .. · · · · . 

. 11onthly reporting is manclntorv for Presidential candidntes and 

their committees, but is optional for all other multi-state committee~ .. This provision. would greatly ease the reporting burden duriug· the 

' :primaries since the num her of pre and post primary election r~pl)rts 

otherwise required could total 56. · ·· 

§ 105.5 Uniform reporting of contrib-utio-ns. .. 

This provision, which requires reporting the identification· of all 

individuala by whom a contribution over $100 ,vas made, follows·· 

·2 U.S.C. § 43·( (b)(i) and (b)(S). 

§ 105.6 Uniform 1·eporting oJ experulitures. 

This proYi:;ion, · which requires reporting the identificntion of 311 · inclivi<lunls to whom an expenditure over $100 was made, foll.o.ws 2 

.U.S.C. § 434 (b) (9) and (b) {10). · · 

§ 105. 7 Allocation of expenditrtres among candi~lates. 

This section inf01ms committees of t.heir nee<l to nllocnte expencl­

·'it.ures mnde for the purpose of supporting more thun one Federnl 

cnndidnte. 'fhe· referrnl to Pnrt 107 is the Conuni~sion's prop<l~ed 

regulation on nBocn tion which nppenrecl in the FedP.ral Reg·istR.r on 

November 5, I9i5, 40 FR 51610, nnd which will soon be subinitted to 

the Congre:,;s. 

§ 105.S · ~isclosure of ea.mwrkl'(~:'6ontributions and expenditures. 

· 'fhis sC'ttion rl'<tllin~~ the discl<>:·mi·e of't11l contribution~ thnt are t'nrmnrkl'd by the contributor to· n cnnclidnte via n politicnl committee. 
Thi~ ~ection is simuar to § 14.12 of the GAO regulations under the . 1971 .Act, the purpose of which is to discl9se tho~e contributions passing through a "conduit" committee with the understanding that a 

particular candidate be the- recipient of ~he contiibution. . 

§ 105.9 Continuous reporting of debts and obligations. ; 

.. · A debt or obligation to m11ke ~n expenditure of $500 or less is re­

.quired to be reported at the time of payment or no Inter than 60 days · aft.er the incurrence of the debt or obligation, whichever comes first . . A loan of money or debt or obligation over $500 is reported as o.n expenditure as of the time of the transaction. Thi:; section·is desianed to -t>rcvent unneces~ary dupli_cation of reportil}g operating exeenditures, 

·i.e., onc·e a.~ a debt when mcurred nnd agnm n:;an expenditure when 

paid, ior small obligations. . . . . . . , The Commission's authorit.y to prescribe thi5 section is found at 2 · 

. u.s.c. § 43~(b) (12). . 

§ 105.10 Reports of independent expenditures a.nd contributfoi!,s. 

This·. :;ect.ion requires the reporting of all ~ndepenclent expenditures 

and contributions which, in the aggregate, exceed $100. This section 

-follows the statute, 2·u.s.c. § 434(e). . . 

.. § 105.I 1 lraiver of reporting requirements . 

;. : The Commission may waive at ·its discretion the reporting requirements of political committees that primarily support persons seeking 

State or local office and do not operate in more thnn one State. 1.'he 

a.utho1ity for this section is 2 U.S.C. § 436(b) (2). . 

§ 105.12 ·. Pol·itical committees; cash on hand. . .· 

The first report of a committee following its registration shall disclose the cnsb 01~ hand at the t,ime of its registration. In order to 

determine t11c legnlity of the source of the cash on hnncl, it is assumed 

that the en.sh on hand represents those contributions most recently 

received by t.he committee, i.e., the "first-in, first-out" method of 

accounting. This provision is necessary, especfo.lly for political com- .· mittees, which ma.~· register with substuntfol cash on hand. 

· § 105.13 llfembers· of Congress; reportin!} exemptiqn. 

This section follows 2 U.S.C. § 434(d). 

Part 109-Reports on coni·ent-ionfinancin!} . 

· · § 109.1 Reports; committees shall report .. 

. This section foUO\vs 2 U.S.C. § 437 .. 

. § J 09.2 Reports; political parties. 

Thi~ section follows 2 U~S.C. § 437 · but exempts the reportin~ 

rcquil-Elment for st:1.te nnd snbordinnte part)'' committees tlrn,t spend 

Jund~ for dc]e~nte nnd nl tt'r~rnte travel e~pense:,. o.nd for certnin events . ·at t.hP r.:onvcntion such ns receptions. The Cornmission believes t.lrnt. · these types of expPnclitur<'~ were not. intended by the stn.tute to be 

repm·t~d under 2 u.s.c. § 434. , . 

·· § 109.3 Financial statonents; time and content- of filiicf/. 

. This section requires th<' convPntion report to be filed no later thnn 

60 d:n-s n.fter the conv<'ntion but not lntt'r thnn 20 d:.1.Ys before the l·. zencr:.1.l 

....... election . in nccorc1nncc with 2 U.S.C. . ., . 

,§ ·. 437. If the·1~c . . is finn.nci.ll 

'\ ,.,,, 
36 

I ! activity St~bsequent to this report, quo.rterly :reports are reqt.tired to 

-reflect those transactions in order to obtain full disclosure. · 

§ 109.4 OommiUees receiving Federalfunds. 

N ationaf political parties which receive public funds under 26 U.S.C. 

§ 9008 are required by this section to file quo.rterly reports. This pro

- . vision is necessary in order to ensure that public monies are not misused. Authority for this requirement is in 2 U.S.C. § 437d(o.){1), the· · Commission's general grant of authority to require reports. This 

.reporting scheme requires committees receiving Feder.al funds to report more often and earlier than ~oups such as host city committees 

which receive no Federal convention funds and only have to file after 

the convention. · · 

§ 109.5 Oonvention expenses; definition. 

This section merely refers to Part 120 · of the convention financing 

propo~ed re~ulation, which will contain a detailed definition of what 

lS ~ qualm.ea. and non-qualified convention expense. . . . . 

· Part 110-Formal reg_ttirements respecting reports and statements . . ' 

§ 110.1 V erijication. 

This section requires the individual responsible -for submitting n. 

repo~t to. sign it. This. prevents the shifting of responsibil~ty onto 

oth~rs·who are not requμ-ed under the Act to.do the actual fihng. · . .· 

· § 110.2· Preservation ofrecords. 

. This section requires that the reportin~ person retain all records · rela t.ing. to the reports that are filed, and tlie reports themselYes for n 

period not less than three years from the end of the year in which. the .. · repo!t is filed. U~der .2 U.S.C. § 455, the st~tute of limitations for 

crimmaI · prosecution 1s three years. Accordmgly, to prevent. the 

destruction of possible evidence and to assist in the routine auditing 

of a report., supporting records are required.to be kept for thre~ years.· 

§ 110.3 . Effect of acknowledgement and filing by the Qommission. · 

The acknowledgement by the Commission of -the receipt of any 

report does not constitute any approval of ·the contents of the report.· 

§ 110.4 Personal responsibility of person · signing sf,a,tement. ' 

This section places the responsibility for the timely filing of rep~rts 

and .their accuracy upon t~ose persons who are. required to submit 

them, nnmelv, the treasurer of a political committee, or a cnndidnte 

or other person as appropriate. . . 

Part Ill-Filing copies of reports and statements with State o_fficers. 

§ 111.1 Filing ·reqtdrements. 

Follo,\"'s_2 U.S.C. § 439{a).. . . .. . . . . . 

§ 111.2 · Filing copies of reports by President·ial and Vice-Presidential 

candidates. · · · 

. · This section follows bn5icnlly 2. U.S.C. · § 439(a.)(1) except .tho.t ·the · copy of reports need be filed with the appropriate state officer only if 

an expenditure is mnde in that State during the reporting period. '!"his · eliminates the unnecessary filing of reports with a state which, although 

at one time mny hn.ve received a copy of a re_port, bas no real concern ... in receiYing other copies of future reports where no expenditures are ~;;.. · . mo.de in tlint state .during those subsequent 1·eporting periods. 
37 

·§ 111.3 Filing copies of reports by other . Federal . candidates and · committees. 

This section follows 2 U.S.C. § 439(a) (2). 

111. 4 Filing ~opies of . reports by committees supporting Pr~sidential . candidates. . · -

This section permits committees which support Presidential cnndidn tes, other than the Presidential principal camp~~n committee~ to 

file a copy of their reports only in the state in· whicn. they are head- . c1uartered and in wliich the recipient committee is headquartered. · 'fhis prevents committees which make one contribution to a Presidential candidate from having_ to file in every state in which the 

Presidential candidate files, which would serve no public purpose." . 

§ 111. 5 Time and manner of filing copies. · 

This ~ection requires the -fi~g _of a c~p~r of the. report with the 

appropnate state at the same time the· or1gmnl report 1s filed on the 

Federal level. · · 

§ 111. 6 Duty of State officers • 

. This section follows 2 U.S.C. §439(b). 

§ 111. 7 Effect of State law~ .~ . ' .. . . . 'fhis section follows 2 U.S.C. §453. I 

. •I!.· 

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