FEDERAL ELECTION COMMISSION 

WASHINGTON, D C 20463 

BEFORE THE FEDERALELECTION COMMISSION 

In the Matter of ) ADR 289 

Melissa Bean for Congress and Alan 1 

Bean, Treasurer 

STATEMENT OF REASONS 

This matter arose when Melissa Bean for Congress filed amendments to its 2004 30-Day 

Post-General Report on April 15,2005.The amendments disclosed $50,908.02in additional debts 

that the committee believed should have been disclosed on the Post-General Report. The newly 

reported debts included: (a) $25,908.02in debts that were incurred during the reporting period, but 

for which the Committee had not yet received invoices; and (b) $25,000 in debts to three members 

of the campaign staff for “win bonuses” that were paid after the close of the reporting period. 

According to the Committee, the agreement to pay bonuses was contingent not only on Ms.Bean 

winning the election, but also on the Committee having money left over after settling all of its 

debts. The exact amount of any bonuses paid would be dependent on the amount of bds left 

over, if any. 

The Committee’s amendment resulted in a referral to the Office of Alternative Dispute 

Resolution, which negotiated a settlement in which the Committee admitted that it had been 

required to report the $50,908.02in debts on its Post-General Report. The Commission decided 

0 
ADR 289 -2-

Melissa Bean for Congress et al. 

Statementof Reasons 

not to accept the settlement because the Committee was not required to report the “win bonuses” 

as debt on the Post-General Report.’ 

A debt or obligation in excess of $500 is reportable as of the date it is incurred.2 See 11 

CFR 104.11(b). This debt was not incurred until all of the conditions precedent to the agreement 

to pay a bonus were met. The final condition precedent to the agreement was met only after the 

close of the reporting period, when the Committee determined that it had money left after paying 

all of its bills.3 

Because the negotiated settlement was premised on an incorrect construction of the 

Committee’s reporting obligations, the Commission voted unanimously not to approve the 

agreement. In conformance with agency practice, the Commission has exercised its prosecutorial I 

discretion and terminated proceedings in this matter. See Heckler v. Chaney, 470 U.S. 821 (1985). 

Date Robert D. Lenhard 

3/7/07

Date fiavid M .,Mason 

Vice-chairman 

- Date Michael E. Toner 

Commissioner 

’The settlement correctly stated that the $25,908.02should have been reported on the Post-General Report, even 

though the Comrmttee had not received invoices by the close of the reportmg period. 

2. The Comssion’s regulations provide an excepbon to hs general rule for rent, salary and other regularly 

reoccmg admmstrative expenses. Those obligabons are not to be reported as a debt prior to the payment due date. 

In contrast, debts and obligabons of $500 or less are to be reported at the tune the payment is made or not later than 60 

days after the debt or obligation is mcurred, whichever comes first. 11 CFR 104.1l(b). 

Had a wm by the candidate been the only condition precedent to the Comrmttee’s obligation to pay bonuses, a debt 

would have been mcurred on the date that the candidate’s victory became known. 
ADR 289 

Melissa Bean for Congress et al. 

Statement of Reasons 

-3-

Date Steven T. Walther 

Commissioner 

Ellen E. Weintraub 

3-7-07 

Date 

Commissioner