Wednesday

June 27, 1990

Part VII

Federal Election 

Commission

I t CFR Parts 106, 9003, 9007, 9033,

9035, and 9038

Presidential Primary and General Election

Candidates; Technical Requirements for

Computerized Magnetize Media; Final Rule;

Transmittal of Regulations to Congress
2 6 3 9 2 Federal R egister / V ol. 55, No. 124 / W ednesday, June 27, 1990 / Rules and Regulations

FEDERAL ELECTION COMMISSION

11 CFR Parts 106,9003,9007,9033,

9035 and 9038

[N o tice 1 9 S 0 -9 ]

Presidential Primary and General

Election Candidates; Technical

Requirements for Computerized

Magnetic Media

AGENCY: Federal Election Commission. 

a c t i o n : Final rule; transmittal of 

regulations to Congress.

s u m m a r y : The Commission has revised 

its regulations concerning the 

production of computerized information 

maintained or used by publicly-funded 

Presidential primary and general 

election campaign committees. The 

Commission has also prepared a 

document entitled “Computerized 

Magnetic Media Requirements for Title 

26 Candidates/Committees Receiving 

Federal Funding" (CMMR) that sets 

forth technical standards designed to 

ensure the compatibility of magnetic 

media provided for Commission use 

during the mandatory audits of these 

publicly-funded campaign committees. 

The CMMR is available on request from 

the Commission’s Public Records Office 

or the Audit Division. The Commission 

will issue a separate notice detailing 

revisions to other rules governing 

Presidential primary and general 

election candidates at a later date. 

Further information is provided in the 

supplementary information which 

follows.

e f f e c t i v e DATES: Further action, 

including the announcement of an 

effective date, will be taken after these 

regulations have been before Congress 

for 30 legislative days pursuant to 2 

U.S.C. 438(d) and 26 U.S.C. 9009(c) and 

9039(c). A document announcing the 

effective date will be published in the 

Federal Register.

f o r F u r t h e r in f o r m a t io n c o n t a c t :

Ms. Susan E. Propper, Assistant General 

Counsel, (202) 376-5690 or (800) 424- 

9530.

SUPPLEMENTARY INFORMATION: The 

Commission is publishing today the final 

text of new regulations at 11 CFR 9003.6 

and 9033.12, and revised regulations at 

11 CFR 106.2(c), 9003.3(a), 9007.1(b), 

9035.1(c) and 9038.1(b) which govern the 

production of computerized magnetic 

media, including magnetic tape and 

magnetic diskettes, by the authorized 

committees of Presidential primary and 

general election candidates.

On April 4,1990 the Commission 

issued a Notice of Proposed Rulemaking 

(NPRM) in which it sought comments on

proposed revisions to these regulations. 

55 F R 12499. One written comment was 

received in response to the Notice.

Section 438(d) of title 2, United States 

Code, and 26 U.S.C. 9009(c) and 9039(c), 

require that any rule or regulation 

prescribed by the Commission to carry 

out the provisions of titles 2 and 26 of 

the United States Code be transmitted to 

the Speaker of the House of 

Representatives and the President of the 

Senate 30 legislative days before they 

are finally promulgated. These 

regulations were transmitted to 

Congress on June 22,1990.

Explanation and Justification

The current primary and general 

election regulations covering candidate 

agreements at 11 CFR 9003.1(b)(4) and 

9033.1(b)(5) require that publicly-funded 

campaigns which maintain 

computerized financial records provide 

computer tapes containing this 

information to the Commission for use 

during the Commission’s mandatory 

audit of these committees. During the 

1988 election cycle, the Commission 

encountered difficulty in obtaining 

computer tapes that were uniformly 

formatted, thereby necessitating 

considerable resources for reformatting. 

This delayed the completion of certain 

audits and entailed additional expense.

Given the amount of time and the 

costs involved in producing compatible 

computer tapes, the Commission has 

prepared new § § 9003.6 and 9033.12, 

and revisions to 11 CFR 106.2,9003.3, 

9007.1,9035.1, and 9038.1 to clarify three 

aspects of this process. First, the new 

language provides a list of the types of 

computerized information the audited 

committees must produce. The changes 

in the rules also ensure that committees 

will understand that they must provide 

these materials in a prescribed format. 

Finally, the rules clarify that in the 

future the costs of production will be 

borne by the audited committee, not the 

Commission. The Commission has also 

developed new technical standards 

which are set forth in a document 

entitled “Computerized Magnetic Media 

Requirements for title 26 Candidates/ 

Committees Receiving Federal Funding” 

(CMMR). These standards cover both 

magnetic tapes and magnetic diskettes. 

The Commission received one comment 

on these proposals from the Internal 

Revenue Service, which found no 

conflict with the Internal Revenue Code 

or the regulations thereunder.

The Commission intends to amend the 

regulations regarding candidate 

agreements at 11 CFR 9003.1(b)(4) and 

9033.1(b)(5) when other aspects of the 

Presidential primary and general 

election regulations are addressed in a

Notice of Proposed Rulemaking. 

Similarly, when the Commission revises 

the rules governing presidential 

nominating conventions at 11 CFR part 

9008, it will include parallel provisions 

requiring the production of computerized 

magnetic media by publicly-funded 

convention committees. Thus, the 

technical standards set out in the 

CMMR will also apply to these 

convention committees.

The following discussion of the new 

and revised sections follows the 

chronological order of the sections as 

they appear in 11 CFR, beginning with 

the allocation provision for primary 

candidates (§ 106.2). This is followed by 

the general election provisions 

(§§ 9003.3,9003.6, and 9007.1), and then 

the rest of the primary election 

provisions (§ § 9033.12,9035.1, and 

9038.1). The discussion of the general 

election rules is very similar to the 

discussion of the primary rules because 

parallel changes have been made in the 

primary and general election 

regulations.

Section 106.2 State allocation o f

expenditures incurred by authorized

committees o f Presidential prim ary

candidates receiving matching funds

Paragraph (c)(5)(i) of this section has 

been revised to clarify that exempt 

compliance costs may include the costs 

associated with producing and 

delivering computerized information and 

materials, and the costs associated with 

explaining the operation of a 

committee’s computer software, if the 

committee maintains or uses 

computerized financial information. 

Further information regarding the types 

of computerized information that must 

be produced is located in new § 9033.12.

Section 9003.3 Allow able contributions

The Commission has revised 

paragraphs (a)(2), (b)(6) and (c)(3) of 

§ 9003.3 to indicate that exempt 

compliance costs for general election 

candidates may include the costs 

associated with producing and 

delivering computerized information and 

materials, and the costs associated with 

explaining the operation of a 

committee’s computer software, if the 

committee maintains or uses 

computerized financial information. 

Further information regarding the types 

of computerized information that must 

be produced is located in new $ 9003.6.

Section 9003.6 Production o f computer

information

New § 9003.6 has been added to the 

regulations to indicate the types of 

computerized financial data the
Federal Register / VoL 55, No. 124 / W ednesday, June 27, 1990 / Rules and Regulations 2 6 3 9 3

Commission will request when it audits 

publicly-funded Presidential campaign 

committees of general election 

candidates that maintain or use 

computerized financial records. This 

new section also indicates that such 

computerized information shall be 

provided at the committee’s expense 

and must conform to uniform format 

specifications set forth in a new 

document entitled “Computerized 

Magnetic Media Requirements for title 

28 Candidates/Committees Receiving 

Federal Funding” (CMMR).

Paragraph (a) of this section lists 

examples of the types of computerized 

information that authorized committees 

would be required to supply if they 

maintain or use computerized 

information containing certain 

categories of data. A committee will be 

considered to use such information even 

if another person or entity maintains 

such information on the committee’s 

behalf. The list has been drawn from the 

Commission’s experience as to the types 

of data authorized committees of 

publicly-funded presidential campaign 

committees have tended to maintain or 

use in the past. However, if a 

presidential campaign committee does 

not wish to computerize part or all of its 

financial records, the new rules do not 

require it to do so.

New paragraph (b) of this section 

states that the costs of producing the 

computerized information are to be 

borne solely by the committee to be 

audited. The previous rules did not 

address the treatment of such costs. 

These costs include the costs associated 

with converting data to meet the 

proposed technical requirements, 

providing formats/layouts, user guides, 

technical manuals and other information 

for processing and analyzing the 

computerized information provided, and 

making personnel familiar with the 

materials provided and the operation of 

the computer system’s software 

available to answer questions from the 

Commission’s staff. If committees select 

their computer systems with the 

Commission’s technical standards in 

mind, the marginal cost of meeting these 

standards should be significantly less 

than the costs of converting their data 

from a format that was chosen without 

considering the prescribed technical 

standards.

Paragraph (b) of new § 9003.6 also 

indicates that the computerized 

magnetic media must meet certain 

technical specifications established by 

the Commission. The new technical 

standards are included in the CMMR, 

which is available upon request from the 

Commission’s Public Records Office or

the Audit Division. These standards 

include general requirements for 

magnetic tape and magnetic diskettes, 

as well as file format specifications for 

records of receipts and disbursements, 

including contributors, vendors, 

invoices, bank account and check files. 

The technical standards found in the 

CMMR will also be published as a 

supplement to the Commission’s 

Financial Control and Compliance 

Manual for General Election Candidates 

Receiving Public Funding to ensure 

distribution to the committees affected 

by the technical specifications. The 

Commission encourages committees to 

provide samples of their magnetic tape 

or magnetic diskettes so that the 

Commission may determine whether the 

samples comply with the specifications 

established.

Paragraph (c) of new § 9003.8 requires 

the production of technical manuals and 

other materials if needed to understand 

the computerized magnetic tapes or 

magnetic diskettes provided. However, 

as in the past, the rules do not require 

production of copyrighted computer 

software. Upon request, the authorized 

committee will also be expected to make 

available personnel familiar with the 

computerized information and the 

operation of the computer software.

Please note that the technical 

requirements found in the CMMR are 

not intended to promote or discourage 

the use of any particular computer 

system or software. H ie Commission 

believes that committees should have as 

much discretion as possible in selecting 

the computer equipment they wish to 

use, determining what types of financial 

records and information should be 

computerized, and deciding how the 

computerized information is maintained. 

However, committees will be expected 

to present this financial information to 

the Commission in the format specified 

in the CMMR.

Section 9007.1 Audits

Paragraph (b)(1) of § 9007.1 has been 

revised to establish time frames under 

which publicly-funded presidential 

campaign committees of general election 

candidates must produce computerized 

magnetic tapes or magnetic diskettes 

which meet the technical specifications 

set out in the new CMMR, if the 

committees maintain or use 

computerized financial records. New 

§ 9003.6 lists the types of computerized 

financial data that must be provided to 

the Commission if maintained or used 

by the committee. The Commission 

generally will request such 

computerized information prior to the 

commencement of audit fieldwork. The 

audited committee will be given 15 days

to produce the materials requested. 

Once-the Commission has obtained the 

computerized magnetic media meeting 

the technical specifications, the 

committee will be given at least two 

weeks notice of the start of audit 

fieldwork. This is intended to ensure 

adequate time for Commission staff to 

review the files in preparation for 

fieldwork. During or after fieldwork, the 

Commission may request additional 

computerized materials. The new rules 

allow 15 days for the production of the 

additional information. These time 

frames take into account the fact that 

the authorized committee will know 

well in advance the technical 

specifications and format requirements 

it must meet to ensure compatibility. 

The Commission believes that 

production of computer information and 

materials prior to fieldwork may reduce 

the overall time needed to conduct 

fieldwork and complete the audit 

process.

Section 9033.12 Production o f

computerized information

New § 9033.12 has been added to the 

regulations to indicate the types of 

computerized financial data the 

Commission will request when it audits 

authorized committees of publiclyfunded Presidential primary election 

candidates that maintain or use 

computerized financial records. This 

new section also indicates that such 

computerized information shall be 

provided at the committee’s expense 

and must conform to uniform format 

specifications set forth in a new 

document entitled “Computerized 

Magnetic Media Requirements for Title 

26 Candidates/Committees Receiving 

Federal Funding” (CMMR).

Paragraph (a) of this section lists 

examples of die types of computerized 

information that authorized committees 

would be required to supply if they 

maintain or use computerized 

information containing certain 

categories of data. A committee will be 

considered to use such information even 

if another person or entity maintains 

such information on the committee’s 

behalf. The list has been drawn from the 

Commission’s experience as to the types 

of data authorized committees of 

publicly-funded presidential candidates 

have tended to maintain or use in the 

past. However, if a presidential 

campaign committee does not wish to 

computerize part or all of its financial 

records, the new rules do not require it 

to do so.

New paragraph (b) of this section 

states that the costs of producing the 

computerized information are to be
2 6 3 9 4 Federal Register / V ol. 55, No. 124 / W ednesday, June 27, 1990 / Rules and Regulations

borne solely by the committee to be 

audited. The previous rules did not 

address the treatment of such costs. 

These costs include the costs associated 

with converting data to meet the 

proposed technical requirements, 

providing formats/layouts, user guides, 

technical manuals and other information 

for processing and analyzing the 

computerized information provided, and 

making personnel familiar with the 

materials provided and the operation of 

the computer system’s software 

available to answer questions from the 

Commission’s staff. If committees select 

their computer systems with the 

Commission’s technical standards in 

mind, the marginal cost of meeting these 

standards should be significantly less 

than the costs of converting their data 

from a format that was chosen without 

considering the prescribed technical 

standards.

Paragraph (b) of new § 9033.12 also 

indicates that the computerized 

magnetic media must meet certain 

technical specifications established by 

the Commission. The new technical 

standards are included in the CMMR, 

which is available upon request from the 

Commission’s Public Records Office or 

the Audit Division. These standards 

include general requirements for 

magnetic tape and magnetic diskettes, 

as well as file format specifications for 

records of receipts and disbursements, 

including contributors, vendors, 

invoices, bank account and check files. 

The technical standards found in the 

CMMR will also be published as a 

supplement to the Commission’s 

Guideline for Presentation in Good 

Order to ensure distribution to the 

committees affected by the technical 

specifications. The Commission 

encourages committees to provide 

samples of their magnetic tape or 

magnetic diskettes so that the 

Commission may determine whether the 

samples comply with the specifications 

established.

Paragraph (c) of new § 9033.12 

requires the production of technical 

manuals and other materials if needed 

to understand the computerized 

magnetic tapes or magnetic diskettes 

provided. However, as in the past, the 

rules do not require production of 

copyrighted computer software. Upon 

request, the authorized committee will 

also be expected to make available 

personnel familiar with the 

computerized information and the 

operation of the computer software.

Please note that the technical 

requirements found in the CMMR are 

not intended to promote ur discourage 

the use of any particular computer

system or software. The Commission 

believes that committees should have as 

much discretion as possible in selecting 

the computer equipment they wish to 

use, determining what types of financial 

records and information should be 

computerized, and deciding how the 

computerized information is maintained. 

However, committees will be expected 

to present this financial information to 

the Commission in the format specified 

in the CMMR.

Section 9035.1 Campaign expenditure

lim itation

The Commission has revised 11 CFR 

9035.1(c)(1) to indicate that exempt 

compliance costs for Presidential 

primary election candidates may include 

the costs associated with producing and 

delivering computerized information and 

materials, and the costs associated with 

explaining the operation of a 

committee’s computer software, if the 

committee maintains or uses 

computerized financial information. 

Further information regarding the types 

of computerized information that must 

be produced is located in new § 9033.12.

Section 9038.1 Audit

Paragraph (b)(1) of § 9038.1 has been 

revised to establish time frames under 

which publicly-funded presidential 

campaign committees of primary 

election candidates that maintain or use 

computerized financial records must 

produce computerized magnetic tapes or 

magnetic diskettes which meet the 

technical specifications set out in the 

new CMMR. New § 9033.12 lists the 

types of computerized financial data 

that must be provided to the 

Commission if maintained or used by 

the committee. The Commission 

generally will request such 

computerized information prior to the 

commencement of audit fieldwork. The 

audited committee will be given 15 days 

to produce the materials requested.

Once the Commission has obtained the 

computerized magnetic media meeting 

the technical specifications, the 

committee will be given at least two 

weeks notice of the start of audit 

fieldwork. This is intended to ensure 

adequate time for Commission staff to 

review the files in preparation for 

fieldwork. During or after fieldwork, the 

Commission may request additional 

computerized materials. The new rules 

allow 15 days for the production of the 

additional information. These time 

frames take into account the fact that 

the authorized committee will know 

well in advance the technical 

specifications and format requirements 

it must meet to ensure compatibility.

The Commission believes that

production of computer information and 

materials prior to fieldwork may reduce 

the overall time needed to conduct 

fieldwork and complete and audit 

process.

List of Subjects

11 CFR Parí 106

Campaign funds, Political candidates, 

Political committees and parties.

11 CFR Part 9003

Compaign funds, Elections, Political 

candidates.

11 CFR Part 9007

Administrative practice and 

procedure, Campaign funds, Political 

candidates.

11 CFR Part 9033

Campaign funds, Elections, Political 

candidates.

11 CFR Part 9035

Campaign funds, Elections, Political 

candidates.

11 CFR Part 9038

Administrative practice and 

procedure, Campaign funds, Political 

candidates.

Certification of No Effect Pursuant to 5 

U.S.C. 605(b) (Regulatory Flexibility 

Act)

The attached final rules will not, if 

promulgated, have a significant 

economic impact on a substantial 

number of small entities. The basis for 

this certification is that few, if any, 

small entities are affected by these 

proposed rules. Further, any small 

entities affected are already required to 

comply with the requirements of the Act 

in these areas.

For the reasons set out in the 

preamble, subchapters A, E and F, 

chapter I of title 11 of the Code of 

Federal Regulations are amended as 

follows:

PART 106— ALLOCATIONS OF

CANDIDATE AND COMMITTEE

ACTIVITIES

1. The authority citation for part 106 is 

revised to read as follows:

Authority: 2 U.S.C. 438(a)(8), 441a(b), 

441a(g).

2. Section 106.2 is amended by 

revising paragraph (c)(5)(i) to read as 

follows:
Federal Register / Vol. 55, No. 124 / W ednesday, June 27, 1990 / Rules and Regulations 2 6 3 9 5

§ 106.2 State allocation of expenditures

Incurred by authorized committees of

Presidential primary candidates receiving

matching funds.

• * * * *

(c) * * *

(5) * * *

(1) Exempt compliance costs are those 

legal and accounting compliance costs 

incurred solely to ensure compliance 

with 26 U.S.C. 9031 et seq., 2 U.S.C. 431 

et seq., and 1 1 CFR chapter I, including 

the costs of preparing matching fund 

submissions, and the costs of producing, 

delivering and explaining computerized 

information and materials provided 

pursuant to 11 CFR 9033.12 and 

explaining the operation of the computer 

system’s software. The costs of 

preparing matching fund submissions 

shall be limited to those functions not 

required for general contribution 

processing and shall include the costs 

associated with: Generating the 

matching funds submission list and the 

matching fund computer tape or other 

form of magnetic media for each 

submission, edits of the contributor data 

base that are related to preparing a 

matching fund submission, making 

photocopies of contributor checks, and 

seeking additional documentation from 

contributors for matching purposes. The 

costs associated with general 

contribution processing shall include 

those normally performed for 

fundraising purposes, or for compliance 

with the recordkeeping and reporting 

requirements of 11 CFR part 100 et seq.,

such as data entry, batching 

contributions for deposit, and 

preparation of FEC reports.

* * * * *

PART 9003— ELIGIBILITY FOR

PAYMENTS

3. The authority citation for part 9003 

continues to read as follows: :

Authority: 26 U.S.C. 9003 and 9009(b).

4. In § 9003.3, paragraph (a)(2)(i)(E) is 

revised, paragraph (a)(2)(i)(F) is 

redesignated as paragraph (a)(2)(i)(G), 

new paragraph (a)(2)(i)(F) is added, 

paragraphs (a)(2)(iii), (b)(6) and (c)(3)(iv) 

are revised, and paragraph (c)(3)(v) is 

added to read as follows:

§ 9003.3 Allowable contributions.

(a) * * *

(2) Uses, (i) * * *

(E) To defray the cost of soliciting 

contributions to the legal and accounting 

compliance fund,

(F) To defray the cost of producing, 

delivering and explaining the 

computerized information and materials 

provided pursuant to 11 CFR 9003.6 and

explaining the operation of the computer 

system’s software; and 

+ * * * *

(iii) Amounts paid from this account 

for the purposes permitted by 11 CFR 

9003.3(a)(2)(i) (A) through (F) shall not 

be subject to the expenditure limits of 2 

U.S.C. 441a(b) and 11 CFR 110.8. (See 

also 11 CFR 100.8(b)(15).) When the 

proceeds of loans made in accordance 

with 11 CFR 9003.3(a)(2)(i)(G) are 

expended on qualified campaign 

expenses, such expenditures shall count 

against the candidate’s expenditure 

lim it

# # v ’ * * *

(b ) * * *

(8) Any costs incurred for legal and 

accounting services which are provided 

solely to ensure compliance with 2 

U.S.C. 431 et seq. and 26 U.S.C. 9001 et

seq. shall not count against the 

candidate’s expenditure limitation. Such 

costs include the cost of producing, 

delivering and explaining the 

computerized information and materials 

provided pursuant to 11 CFR 9003.6 and 

explaining the operation of the computer 

system’s software. For purposes of this 

section, a candidate may exclude from 

the expenditure limitation an amount 

equal to 10% of the payroll (including 

payroll taxes) and Overhead 

expenditures of his or her national 

campaign headquarters and state 

offices. In addition, a candidate may 

exclude from the expenditure limitation 

an amount equal to 70% of the costs 

(other than payroll) associated with 

computer services.

* * # * *

(c) * * *

(3)* * *

(iv) To defray the costs of legal and 

accounting services provided solely to 

ensure compliance with 2 U.S.C. 431 et

seq. and 26 U.S.C. 9001 et seq.;

(v) To defray the cost of producing, 

delivering and explaining the 

computerized information and materials 

provided pursuant to 11 CFR 9003.6 and 

explaining the operation of the computer 

system’s software.

♦ * * * *

5. Section 9003.6 is added to read as 

follows:

§ 9003.6 Production of computer

information.

(a) Categories o f computerized

information to be provided\ If the 

candidate or the candidate’s authorized 

committee maintains or uses 

computerized information containing 

any of the categories of data listed in 

paragraphs (a)(1) through (a)(9) of this 

section, the committee shall provide 

computerized magnetic media, such as

magnetic tapes or magnetic diskettes, 

containing die computerized information 

at the times specified in 11 CFR 

9007.1(b)(1):

(1) Information required by law to be 

maintained regarding the committee’s 

receipts or disbursements;

(2) Receipts by and disbursements 

from a legal and accounting compliance 

fund under 11 CFR 9003.3(a), including 

the allocation of payroll and overhead 

expenditures;

(3) Receipts and disbursements under 

11 CFR 9003.3(b) or (c) to defray the 

costs of soliciting contributions or to 

defray the costs of legal and accounting 

services, including the allocation of 

payroll and overhead expenditures;

(4) Records relating to the costs of 

producing broadcast communications 

and purchasing airtime;

(5) Records used to prepare 

statements of net outstanding qualified 

campaign expenses;

(6) Records used to reconcile bank 

statements;

(7) Disbursements made and 

reimbursements received for the cost of 

transportation, ground services find 

facilities made available to media 

personnel* including records relating to 

how costs charged to media personnel 

were determined;

(8) Records relating to the acquisition, 

use and disposition of capital assets or 

other assets; and

(9) Any other information that may be 

used during the Commission’s audit to 

review the committee’s receipts, 

disbursements, loans, debts, obligations, 

bank reconciliations or statements of 

net outstanding qualified campaign 

expenses.

(b) Organization o f computerized

information and technical

specifications. The computerized 

magnetic media shall be prepared and 

delivered at the committee’s expense 

and shall conform to the technical 

specifications, including file 

requirements, described in the Federal 

Election Commission’s Computerized 

Magnetic Media Requirements for Title 

26 Candidates/Committees Receiving 

Federal Funding. The data contained in 

die computerized magnetic media 

provided to the Commission shall be 

organized in the order specified by the 

Computerized Magnetic Media 

Requirements.

(c) Additional materials and

assistance. Upon request, the committee 

shall produce documentation explaining 

the computer system’s software 

capabilities, such as user guides, 

technical manuals, formats, layouts and 

other materials for processing and 

analyzing the information requested.
2 6 3 9 6 Federal Register / Vol. 55» No. 124 / W ednesday, June 27* 1996 / Rules and Regulations

Upon request* the committee shall also 

make available such personnel as are 

necessary to explain the operation of the 

computer system’s software and the 

computerized information prepared or 

maintained by the committee.

PART 9007— EXAMINATIONS AND

AUDITS; REPAYMENTS

6. The authority citation for [»art 9007 

continues to read as follows;

A uthority: 26 U .S.C . 9007 and 9009(b}.

7. Section 9007.1 f& amended by 

revising paragraph. (b)(1) to read as 

follows:

§ 9007.1 Audits.

(b) Conduct o f fieldwork. (1) If the 

candidate or the candidate's authorized 

committee does not maintain or use any 

computerized information containing the 

data listed in 11 CFR 9003.6, the 

Commission will give the candidate’s 

authorized committee at least two 

weeks’ notice of the Commission's 

intention to commence fieldwork on the 

audit and examination. The fieldwork 

shall be conducted at a site provided by 

the committee. If the candidate or the 

candidate’s authorized committee 

maintains or uses computerized 

information containing any of the data 

listed, in 11 CFR 9003.6, the Commission 

generally will request such information 

prior to commencement of audit 

fieldwork. Such request will be made hi 

writing, The committee shall produce 

the computerized information no later 

than 15 calendar days after service o f 

such request. Upon receipt of the 

computerized information requested and: 

compliance with the technical 

specifications of 11 CFR 9003.6(b), the 

Commission will give the candidate’s 

authorized committee at least two 

weeks’ notice of the Commission’s 

intention to commence fieldwork on the 

audit and examination. The fieldwork 

shall be conducted at a site provided by 

the committee. During or after audit 

fieldwork, the Commission may request 

additional or updated computerized 

information which expands the coverage 

dates of computerized information 

previously provided, and which may be 

used for purposes including, but not 

limited t©„ updating a statement of net 

outstanding qualified campaign 

expenses. During or after audit 

fieldwork, the Commission may also 

request additional computerized 

information winch was created by or 

becomes available to* the committee that 

is of assistance in the Commission’s 

audit The committee shall produce the 

additional or updated computerized 

information no later than 15 calendar

days after service of the Commission’s 

request.

♦ . * * * *

PART 9003— ELIGIBILITY FOR

PAYMENTS

0. The authority citation for part 9033 

continue» to read as follows:

A uthority: 26 U .S.C . 9033 an d 9039(b).

9. New § 9033.12 is added to read as 

follows:

§ 9033.12 Production of computerized 

information.

(a) Categories of computerized

information to be provided. If the 

candidate or the candidate's authorized 

committee maintains or uses, 

computerized information containing 

any of the categories o f data listed in 

paragraphs (a)(1) through (a)(9) of this 

section* the committee shall provide 

computerized magnetic media, such as 

magnetic tapes or magnetic diskettes* 

containing the computerized information 

at the times specified in 11 CFR 

9038.1(b)(1):

(1) Information required by law to be 

maintained regarding the committee’s 

receipts or disbursements;

(2) Records of allocations of 

expenditures* to particular state 

expenditure limits and to the overall 

expenditure limit;

(3) Disbursements, for exempt 

fundraising and exempt compliance 

cost, including the allocation of salaries 

and overhead expenditures;

(4) Records of allocations of 

expenditures for the purchase of 

broadcast media;

(5) Records used to prepare 

statements of net outstanding campaign 

obligations;

(6) Records used to reconcile bank 

statements;

(7) Disbursements made and 

reimbursements received for the cost of 

transportation, ground services and 

facilities made available to media 

personnel, including records relating to 

how costs charged to media personnel 

were determined;

(8) Records relating to the acquisition, 

use and disposition o f capital assets or 

other assets; and

(9) Any other information that may be 

used during the Commission’s audit to 

review the committee’s receipts, 

disbursements, loans, debts* obligations, 

bank reconciliations or statements of 

net outstanding campaign obligations.

(b) Organization of computerized

information and technical

specifications. The computerized 

magnetic media shall be prepared and 

delivered at the committee’s expense

and shall conform to the technical 

specifications, including file 

requirements, described in the Federal 

Election Commission’s Computerized 

Magnetic Media Requirements for Title 

26 Candidates/Committees Receiving 

Federal Funding. The data contained m 

the computerized magnetic media 

provided to the Commission shall be 

organized in the order specified by the 

Computerized Magnetic Media 

Requirements.

(c) Additional materials and

assistance. Upon request, the committee 

shall produce documentation explaining 

the computer system’s software 

capabilities, such as user guides, 

technical manuals, formats, layouts and 

other materials for processing and 

analyzing the information requested. 

Upon request, the committee shall also 

make available such personnel as are 

necessary to explain; the operation of the 

computer system’s software and the 

computerized information prepared or 

maintained by the committee.

PART 9035— EXPENDITURE

LIMITATIONS

10. The authority citation for part 9035 

continues to read as follows:

A uthority: 26 U.S.C. 9035 an d 9039(b).

11. Section 9635,1 is amended by 

revising paragraph (c)(1) to read as 

follows:

$ 9035.1 Campaign expenditure limitation.

* * * * *

(c)***

(1) Exempt compliance costs are those 

legal and accounting compliance costs 

incurred solely to ensure compliance 

with 20 U.S.C. 9031 et seq., 2 U.S.C. 431 

et seq., and 11 CFR chapter I, including 

the costs of preparing matching fund 

submissions, and the costs of producing, 

delivering and explaining computerized 

information and materials provided 

pursuant to 11 CFR 9033.12 and 

explaining the operation of the computer 

system’s software. The costs of 

preparing matching fund submissions 

shall be limited to those functions not 

required for general contribution 

processing and dial! include the costs 

associated with: Generating the 

matching funds submission list and in 

the matching fund computer tape or 

other form of magnetic media for each 

submission, edits of the contributor data 

base that are related to preparing a 

matching fund submission, making 

photocopies of contributor checks, and 

seeking additional documentation from 

contributors for matching purposes. The 

costs associated with general 

contribution processing shall include
Federal Register / Vol. 55, No, 124 / W ednesday, June 27, 1990 / Rules and Regulations 2 6 3 9 7

those normally performed for 

fundraising purposes, or for compliance 

with the recordkeeping and reporting 

requirements of 11 CFR part 100 et seq.,

such as data entry, batching 

contributions for deposit, and 

preparation of FEC reports.

- * , * • * * *

PART $038— EXAMINATIONS AND

AUDITS

12. The authority citation for part 9038 

continues to read as follows:

A uthority: 26 U .S.C . 9038 an d 9039(b).

13. Section 9038.1 is amended by 

revising paragraph (b)(1) introductory 

text to read as follows:

§ 9038.1 Audit

* . * Ar * ♦

(b) Conduct o f fieldwork. (1) Ifthe 

candidate or the candidate’s authorized 

committee does not maintain or use any 

computerized information containing the 

data listed in 11 CFR 9033.12, the 

Commission will give the candidate’s

authorized committee at least two 

weeks’ notice of the Commission’s 

intention to commence fieldwork on the 

audit and examination. The fieldwork 

shall be conducted at a site provided by 

the committee. If the candidate or the 

candidate’s authorized committee 

maintains or uses computerized 

information containing any of the data 

listed in 11 CFR 9033.12, the Commission 

generally will request such information 

prior to commencement of audit 

fieldwork. Such request will be made in 

writing. The committee shall produce 

the computerized information no later 

than 15 calendar days after service of 

such request. Upon receipt of the 

computerized information requested and 

compliance with the technical 

specifications of 11 CFR 9033.12(b), the 

Commission will give the candidate’s 

authorized committee at least two 

weeks’ notice of the Commission’s 

intention to commence fieldwork on the 

audit and examination. The fieldwork 

shall be conducted at a site provided by 

die committee. During or after audit

fieldwork, the Commission may request 

additional dr updated computerized 

information which expands the coverage 

dates of computerized information 

previously provided, and which may be 

used for purposes including, but not 

limited to, updating a statement of net 

outstanding campaign, obligations, or 

updating the amount chargeable to a 

state expenditure limit, During or after 

audit fieldwork, the Commission may 

also request additional computerized 

information which was created by or 

becomes available to the committee and 

that is of assistance in the Commission’s 

audit. The committee shall produce the 

additional or updated computerized 

information no later than 15 calendar 

days after service of the Commission’s 

request.

♦ * * * *

D ated: June 2 2 ,1 9 9 0 .

Lee Ann Elliott,

Chairman, Federal Election Commission.

[FR D oc. 9 0 -1 4 9 2 0 Filed 6 -2 6 -9 0 ; 8:45 am ]

BILLING CODE 6715-01-M