5224 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

(1) The name, address and citizenship 

of person submitting the report;

(2) The name, address and citizenship 

of person or persons for whom the 

activity is performed; and

(3) A description of the activity, 

including its location.

(b) Activities to be reported:

(1) Directly or indirectly assisting in 

the design, construction, fabrication or 

operation, outside the United States, of:

(1) A nuclear reactor; or

(ii) A facility for the fabrication of 

uranium fuel;

(iii) A facility for the production of 

zirconium (hafnium-free or lowhafnium), reactor-grade graphite, or 

reactor-grade beryllium, or

(2) Directly or indirectly assisting in 

the design or fabrication outside the 

United States, of any component part 

especially designed or fabricated for a 

nuclear reactor or other facilities 

specified in paragraph (b)(1) of this 

section; or

(3) The furnishing of designs, 

drawings, or other technical data for use 

outside the United States in the 

construction or operation of a facility 

specified in paragraph (b)(1) of this 

section or in the fabrication of a 

component part specified in paragraph

(b)(2) of this section; or

(4) The furnishing of information and 

assistance at an operating nuclear 

power plant outside the United States, 

related to the prevention or correction of 

an imminent radiological emergency 

posing a danger to the public health and 

safety.

(5) The transmittal outside the United 

States of conceptual design or 

performance characteristics of nuclear 

reactors or facilities specified in 

paragraph (b)(1) of this section.

(6) The separation outside of the 

United States of isotopes of uranium or 

plutonium;

(7) The production, outside of the 

United States of heavy water, zirconium 

(hafnium-free or low-hafnium), reactorgrade graphite, reactor-grade beryllium; 

or

(8) The chemical, physical or 

metallurgical processing or fabricating 

or alloying, outside the United States, of 

special nuclear material.

(c) The reporting requirements of this 

section shall not apply to:

(1) Any activity consisting only of (i) 

the communication of information 

generally available to die public in 

published form; or (ii) financial 

assistance; (iii) the furnishing of 

component parts which are not 

especially designed and which are not 

intended for use in a reactor, facility or 

component part specified in paragraph

(b) (1) or (2) of § 810.10; or (iv) the 

comparative evaluation of types of 

reactors or facilities, but not including 

performance characteristics; or (v) the 

export of a nuclear reactor and the 

information associated with siting, 

construction, operation and 

maintenance of that reactor, and the 

export of nuclear equipment or material 

for which an export license has been 

granted by the Nuclear Regulatory 

Commission; or (vi) any combination of 

the foregoing.

(2) Any person to the extent that such 

person engages in an activity authorized 

by § 810.7 as the employee of a person 

required to submit a report pursuant to 

paragraph (a) of this section.

(3) Any activity specifically 

authorized by the Secretary.

§810.11 Additional information.

The Department may at any time 

require any person who engages in 

activities authorized pursuant to § 810.8 

or specified in § 810.10 to submit 

additional information with respect to 

such activity. The public may request an 

opinion from the Department on whether 

particular export circumstances or 

exchanges of information are generally 

authorized under § 810.7, require a 

specific authorization under § 810.8, or 

are a reportable activity under § 810.10.

§ 810.12 Violations.

An injunction or other court order 

may be obtained prohibiting any 

violation of any provision of the act or 

any regulation or order issued 

thereunder. Any person who willfully 

violates any provision of the act or any 

regulation or order issued thereunder 

may be guilty of a crime and, upon 

conviction, may be punished by fine or 

imprisonment or both, as provided by 

law.

§ 810.13 Effective date.

These regulations are effective 

February 4,1983.

[FR Doc. 83-3014 Filed 2-3-83; 8:45 am]

BILLING CODE 6450-01-M

FEDERAL ELECTION COMMISSION

11 CFR Parts 106,9031,9032,9033,

9034,9035,9036,9037,9036 and 9039

[Notice 1983-3]

Presidential Primary Matching Fund

AGENCY: Federal Election Commission. 

a c t io n : Transmittal of regulations to 

Congress.

s u m m a r y : The Federal Election 

Commission is revising its regulations

which implement the Presidential 

Primary Matching Payment Account 

Act, 26 U.S.C. 9031 et seq, and have 

transmitted those regulations to 

Congress pursuant to 26 U.S.C. 9039(c). 

The revisions arebased on the 

Commission’s experience in 

administering the Act and on public 

comments received on the Notice of 

Proposed Rulemaking. The revisions 

would clarify the current submission 

and certification procedures to ensure 

that candidates submissions for 

matching funds are processed promptly 

and that matching funds are distributed 

properly. The revisions include 

expanded sections governing allocation 

of expenditures under the State 

expenditure limits and audits by the 

Commission. They also provide a more 

detailed statement of the requirements 

for making submissions for matching 

payments and include a new means for 

making such submissions by letter 

request. Further information on the 

intended effect of the revised 

regulations is contained in the 

supplemental information below.

EFFECTIVE DATE: Further action, 

including the announcement of an 

effective date, will be taken by the 

Commission after these regulations have 

been before the Congress 30 legislative 

days in accordance with 26 U.S.C. 

9039(c).

FOR FURTHER INFORMATION CONTACT:

Ms. Susan E. Propper, Assistant General 

Counsel, 1325 K Street NW. Washington,

D.C. 20463, (202) 523-4143 or (800) 424- 

9530.

SUPPLEMENTARY INFORMATION: The 

revisions are based on the Commission’s 

experience in administering the Act and 

on public comments received in 

response to the Commission’s Notice of 

Proposed Rulemaking (47 FR 35892; 

August 17,1982). A public hearing.was 

held on the proposed rules on December

7,1982, (47 FR 53030; November 24,

1982).

26 U.S.C. 9039(c) requires that any rule 

or regulation prescribed by the 

Commission to implement Chapter 96 of 

Title 26, United States Code, be 

transmitted to the Speaker of the House 

of Representatives and the President of 

the Senate prior to final promulgation. If 

neither House of Congress disapproves 

of the regulations within 30 legislative 

days of their transmittal, the 

Commission may finally prescribe the 

regulations in question. The following 

regulations were transmitted to 

Congress on January 24,1983.
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5225

Explanation and Justification of the 

Presidential Primary Matching Funds 

Regulations, Parts 106 and 9031 Through 

9039

Part 106—Allocation of Candidate and 

Committee Activities

Section 106.2 State Allocation o f

Expenditures Incurred by Authorized

Committees o f Presidential Primary

Candidates Receiving Matching Funds.

This section, as in the current 

regulations, implements 2 U.S.C. 

441a(b)(l)(A) and 441a(g).

Subsection (a)(1) has been redrafted 

to explain the scope of the application of 

this section. It also sets forth the general 

rule that an expenditure is not 

necessarily allocated to the State in 

which it is incurred or paid. For 

instance, an expenditure incurred or 

paid in State A would be allocated to 

State B if the purpose of the expenditure 

is to influence the candidate’s campaign 

in State B. Where an expenditure is 

made for the purpose of influencing the 

nomination of a candidate in more than 

one State, the methods for allocating 

expenditures described in subsection (b) 

will govern allocation under this section.

Subsection (a)(2) provides that 

disbursements made while an individual 

is “testing the waters” for the purpose of 

determining whether to become a 

candidate must be allocated in 

accordance with this section if the 

individual later becomes a candidate. 

Therefore, individuals “testing the 

waters" should keep records of all 

disbursements made during that period 

to enable proper allocation in the event 

they become candidates.

Subsection (b)(1) sets forth the general 

requirement that allocations between 

two or more States be made on a 

reasonable and uniformly applied basis. 

For an allocation to be considered 

“uniformly applied", it should be based 

on consistent data as required under 

subsection (b)(2).

Subsection (b)(2) generally follows 

current section 106.2(b) and (c)(1) but 

contains more specificity regarding the 

actual methods to be used when 

allocating expenditures between two or 

more States. It requires that a candidate 

select one source of data to be used for 

each category of expenditures in that 

State. Thus, for example, once a method 

is used to allocate an advertisement on 

television in a State, the same method 

must be used for all allocations of 

television expenditures within that State 

unless in some portion of that State, 

such method is not available, in which 

event, a reasonable alternative method 

may be used.

Subsection (b)(2)(i) contains specific 

methods for allocating media 

expenditures. Under subsection

(b)(2)(i)(A), expenditures for print 

media, such as newspaper or magazines, 

must be allocated based on the relative 

circulation percentages of that 

publication in each State. The amount 

allocated must include any co mmission 

charged. For the purpose of this section 

“commission" includes any amounts 

paid to an individual for services 

provided in obtaining advertising space 

in a publication. Allocation need not be 

made under this subsection to any State 

in which the circulation is less than 3% 

of the total estimated readership of that 

publication.

Subsection (b)(2)(i)(B) covers the 

allocation method for broadcast media. 

As in subsection (b)(2)(i)(A), the amount 

allocated must include any commission 

paid for buying media time. The industry 

market data that may be used to 

determine the allocations under this 

section include ADI, CCR, Grade B 

Contour and similar data sources. 

However, once a method has been 

selected, it must be used for all 

allocations of expenditures in that 

media category in a particular State. 

Examples of media categories include 

television broadcast, radio, and cable.

Subsection (b)(2)(i)(C) allows refunds 

received for media time or space not 

used to be credited on the same basis as 

the original allocation. Subsection

(b)(2)(i)(D) prohibits allocation to any 

State in which the primary election has 

been held. This prohibition is based on 

the Act’s requirement at 2 U.S.C. 441a(g) 

that allocation be made to each State in 

which the voting age population “can 

reasonably be expected to be influenced 

by such expenditure".

Subsection (b)(2)(ii) governs the 

allocation of salaries. If an individual is 

working in a State for four days or less, 

he or she will be presumed to be 

working on national campaign strategy 

and not influencing the primary in that 

particular State. Despite comments. 

received that suggested exempting 

advance staff from any allocation 

requirement, such personnel are 

included in the class of persons whose 

salaries must be allocated if they remain 

in a State for five days or more. As the 

category of persons who could be 

considered “advance staff" is a difficult 

one to define, it was thought better to 

include them as persons working in a 

State; however, the Commission has 

recognized that most advance staff do 

not remain in a State for five days or 

more. For purposes of determining the 

length of time an individual remains in a 

State, the Commission will generally 

look to the calendar days or any portion

thereof that that person was in a State 

rather than using 24-hour periods. If an 

individual works in a State for five 

consecutive days or more, that 

individual’s salary must be allocated to 

that State from the date of his or her 

arrival. While this section sets forth the 

basic rule for allocating salaries, a 

candidate may demonstrate that a 

particular individual or group of 

individuals is in a State for five days or 

more to work on national campaign 

strategy. Although the Commission 

expects such exemptions to be the 

exception rather than the rule, the 

Commission does recognize that 

national campaign strategy meetings, for 

example, may be held in a centrally 

located State for an extended period of 

time.

Subsection (b)(2)(iii) follows current 

§ 106.2(c)(2) but limits this requirement 

to individuals remaining in a State for 

five days or more. This rule also applies 

to intra-state travel and subsistence 

expenses for the candidate, his or her 

family and the candidate’s 

representatives if they remain in a State 

for five days or more.

Subsection (b)(2)(iv) describes the 

overhead expenditures of State and 

regional offices that must be allocated.

Subsection (b)(2)(v) sets forth a new 

method for allocating telephone charges 

other than base service charges. All 

calls made within a particular State 

must be allocated to that State. Calls 

made between two States, whether or 

not using toll-free service, are exempted 

from allocation. Calls charged to a credit 

card should be allocated on the same 

basis as calls charged to a phone 

number.

Subsection (b)(2)(vi) governs 

allocation of public opinion polls. Polls 

taken in two or more States must be 

allocated based on the number of people 

interviewed in each State unless the poll 

is a nationwide poll. Thus, candidates 

must keep records of the number of 

persons interviewed in each poll 

covering two or more States to support 

the allocations made as required by 

subsection (e).

Subsection (c) sets forth the categories 

of expenditures that are exempted from 

the allocation requirements. Subsection

(c)(l)(i) exempts national campaign 

expenditures from allocation.

Under subsection (c)(l)(ii), the 

regulations exempt “national 

advertising". This exemption, however, 

is limited to advertising that is 

distributed on a nationwide basis and 

does not include ads that appear only in 

a regional edition of a national 

publication.
5226 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

Under subsection (c)(2), the costs of 

producing media advertising are 

exempted from allocation as it is often 

difficult to determine, for example, what 

footage was used in commercials aired 

in particular States.

Subsection (c)(3) exempts die costs of 

transporting media personnel as such 

costs are not related to influencing the 

voters of any particular State. 

Subsection (c)(4) generally follows 

current § 106.2(c)(2) with respect to 

interstate travel. Travel across State 

lines that is occasioned by 

transportation or lodging facilities will 

not be deemed exempt interstate travel. 

For example, a candidate or persons 

campaigning on a candidate’s behalf in 

a particular State may have lodging 

accommodations in a contiguous State. 

In such cases, travel across State lines 

to campaign in the contiguous State 

would not be considered exempt 

interstate travel. A similar situation 

involves transportation. If a candidate 

makes a campaign trip to a particular 

State, but for example, arrives at an 

airport in a neighboring State, travel 

from the airport to the State in which the 

campaign is being conducted would not 

be considered interstate travel.

Under subsection (c)(5), a candidate 

may claim a standard exemption of 10% 

of salaries and overhead in each State 

for compliance costs. An additional 10% 

of such costs may be claimed as exempt 

fundraising expenses, subject to the 28 

day limit of 11 CFR 110.8(c)(2). If the 

candidate wishes to exempt more than 

1Q% of expenditures under either 

category, he or she must then document 

the entire amount spent on compliance 

and/or fundraising for all individuals in 

that State to justify claiming the larger 

exemption.

Subsection (d) generally follows 

current § 106.2(a).

Subsection (e) requires that 

candidates retain detailed records to 

support the calculations made under this 

section.

Section 106.3 Allocation o f Expenses

Between Campaign and Noncampaign

related Travel.

A technical amendment has been 

made in subsection (a) to make clear 

that this section does not apply to 

Presidential primary candidates 

receiving matching funds. No other 

changes have been made in this section.

Part 9031—Scope

§9031.1 Scope.

Section 9031.1 has been revised to 

conform to 11 CFR 9001.1.

Part 9032—Definitions

Section 9032.1 Authorized Committee.

Subsection (a) has been revised to 

conform to 11 CFR 9002.1. Subsection (b) 

generally follows current § 9032.1(a). 

Subsection (c) has been added to make 

clear that responsibilities of the 

candidate are also those of his or her 

authorized committee(s).

Subsection (d) generally follows 

current § 9032.1(b). Subsection (e) has 

been added to cross-reference the 

Commission’s regulations governing 

delegate committees.

Section 90322 Candidate.

This section generally follows current 

§ 9032.2 but clarifies in subsection (d) 

that the time for disavowal begins to run 

after receipt of notification from die 

Commission.

Section 90323 Commission.

This section generally follows current 

§9032.3.

Section 9032.4 Contribution.

This section generally follows current 

§ 9032.4.

Section 9032.5 Matching Payment

Account.

This section generally follows current 

§ 9032.5.

Section 9032.6 Matching Payment

Period.

This section generally follows current 

§ 9032.6 but has been clarified to state 

that the period will not exceed die 

applicable date as determined under 

subsection (a) or (b).

Section 9032.7 Primaty Election.

Section 9032.7 has been revised to 

clarify that the definition of “primary 

election” under this subchapter includes 

elections held by a State as well as by a 

political party. This section now also 

provides, in subsection (b), that if both 

the party and the State sponsor primary 

elections, the primary election will be 

the election held by die political party.

Section 90328 Political Committee.

This section generally follows current 

§ 9032.8.

Section 9032.9 Qualified Campaign

Expense.

Subsection (a) generally follows 

current § 9032.9(a) but includes the 

phrase “on behalf o f’ in subsection

(a) (1) to clarify the intent of subsection

(b) . Subsection (b) generally follows 

current § 9032.9(b). Subsection (c) has 

been added to cross-reference die 

provisions of 11 CFR 9034.4.

Section 9032.10 Secretary

This new section has been added to 

permit use of the word “Secretary” to 

mean Secretary of the Treasury in this 

subchapter.

Section 9032.11 State.

This section generally follows current 

§ 9032.10.

Part 9033—Eligibility for Payments

Section 9033.1 Candidate and

Committee Agreements

Subsection (a)(1) generally follows 

current § 9033.1 (a) and (b). Subsection

(a)(2) has been added to make dear that 

the candidate must submit a candidate 

agreement that meets the stated 

requirements before the Commission 

will review the candidate’s threshold 

submission to determine eligibility.

Under subsection (b), references to 

the candidate’s authorized committee(8) 

have been induded to make clear that 

such committees are also subject to the 

requirements of this section. In 

subsection (b)(2), the specific 

documentation requirements have been 

moved to a new § 9033.11 and this 

subsection now contains an agreement 

by the candidate to comply with 

§ 9033.11. Subsections (b) (4) and (5) 

require the candidate to maintain and 

furnish to the Commission all 

documentation relating to matching fund 

submissions, disbursements and 

receipts. Subsection (b)(6) darifies that 

audits conducted under 11 CFR Part 

9038 will cover both receipts and 

disbursements, and may include a 

review of disbursements by persons or 

entities authorized by the candidate to 

make expenditures on the candidate’s 

behalf. Subsection (b) (1), (3), and (7) 

through (10) generally follow current 

§ 9033.1(a) and (b).

Current subsection (c) has been 

deleted in these regulations as that 

provision is covered under 11 CFR

9033.9.

Section 90332 Candidate and

Committee Certifications; Threshold

Submission.

Subsection (a)(1) generally follows 

current § 9033.2. Subsection (a)(2) is a 

parallel provision to 11 CFR 9033.1(a)(2).

Subsection (b)(3) follows current 

§ 9033.2(c)(1) but has been reworded for 

clarity. Subsection (b)(3)(iv) has been 

added to state that in the case of 

contributions from an individual who is 

a resident of more than one State, the 

candidate may count contributions from 

that individual towards the $5000 

threshold in only one State. This State
Federal Register / V ol 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5227

will be the one from which the 

individual’s earliest contribution was 

made.

The format requirements for threshold 

submissions have been moved from 

current § 9033.2(c) to 11 CFR 9036.1. 

Subsection (c) in these regulations 

explains that candidates must submit 

proof of the contributions required to 

establish eligibility and cross-references 

11 CFR 9036.1 for the format in which 

submissions must be made.

Section 9033.3 Expenditure Limitation

Certification.

This section generally follows current 

§ 9033.3 but contains cross-references to 

new § 9033.10 for the procedures to be 

followed when the Commission makes a 

determination under this section. The 

requirement that a violation of this 

section be done “willfully" has been 

deleted.

Section 9033.4 Matching Payment

Eligibility Threshold Requirements.

The time for reviewing a threshold 

submission during a Presidential 

election year has been extended from 5 

working days to 15 business days during 

a Presidential election year.

Subsection (a) and (b) generally 

follow current § 9033.4 but crossreference new § 9033.10 for the 

procedures to be followed when 

determinations are made under this 

section.

Section 9033.5 Determination o f

Ineligibility Date.

The introductory language of this 

section has been reworded for clarity. 

Subsection (a) generally follows current 

§ 9033.5(a). Under subsection (b), a 

candidate who “permitted or authorized 

his or her name to appear on the ballot" 

includes a candidate who participates or 

receives votes in a caucus that is a 

primary election. Subsections (b) (1) and 

(2) generally follow current § 9033.5(b)

(1) and (2). Subsection (b)(2) has been 

expanded, however, to address the 

situation in which there are two or more 

primaries held in the same State on 

different dates. If one of these primaries 

is held by the State and the other by the 

party, the primary held by the party will 

be the primary election as provided 

under 11 CFR 9032.7(b).

Subsection (c) generally follows 

current § 9033.5(c).10. Subsection (d) has 

been added to cross-reference the 

provisions on re-establishment of 

eligibility under 11 CFR 9033.8.

Section 9033.6 Determination o f

Inactive Candidacy.

Subsection (a) generally follows 

current $ 9033.8 (a) and (f). In subsection

(b), two additional factors that may be 

considered by the Commission have 

been included at subsections (b) (5) and 

(8). Subsection (c) and (d) now crossreference the procedures for making 

determination under 11 CFR 9033.10.

Section 9033.7 Determination o f Active

Candidacy.

This section generally follows current 

§ 9033.7 but cross-references in 

subsections (b) and (c) the procedures 

fdr making determinations under 11 CFR

9033.10.

Section 9033.8 Reestablishment o f

Eligibility.

Subsection (a) and (b) generally 

follows current § 9033.8 (a) and (b). 

Subsection (c) has been added to clarify 

that candidates who have re-established 

eligibility need not submit new 

candidate agreements and certifications, 

and that contributions received during 

the period of ineligibility are matchable 

once the candidate re-establishes 

eligibility regardless of whether the 

candidate has any net outstanding 

campaign obligations.

Section 9033.9 Failure to Comply With

Disclosure Requirements or Expenditure

Limitations

This section has been re-titled to 

conform to other sections in these 

regulations dealing with ineligibility. As 

in § 9033.3, the standard that violations 

be done “willfully" under this section 

before payments will be suspended has 

been deleted. Subsections (b) and (c) 

generally follow current § 9033.9 (b), (c) 

and (d) but contain cross-references to 

11 CFR 9033.10 for the procedures to be 

followed in making determinations. 

Subsection (d) generally follows current 

S 9033.9(e).

Section 9033.10 Procedures fo r Initial

and Final Determinations

This new section contains the written 

hearing procedures for determinations 

regarding a candidate’s eligibility to 

receive matching funds under 11 CFR 

Part 9033. These procedures have been 

taken from the various substantive 

provisions in current Part 9033 and 

consolidated in this section. The time 

limits on responses filed by candidates 

have been retained in each substantive 

section, however, as these time limits 

vary. This section also specifies, in 

subsection (d), that an eligibility 

determination made pursuant to this 

section may be independent of any 

Commission decision to insititute an 

enforcement proceeding under 2 U.S.C. 

437g. In addition, the Commission may 

rely upon the legal and factual basis on 

which an initial determination was

made in the future repayment 

determination if the Commission took no 

final action to suspend payments at the 

time of the initial determination.

Section 9033.11 Documentation o f

Disbursements.

This new section generally follows 

current S 9033.1(a)(1). Subsection (a) 

reiterates the general rule, also found in 

11 CFR 9033.1, that the candidate has 

the burden of proving that 

disbursements are qualified campaign 

expenses. In subsection (b)(1), the 

threshold for documentation of 

disbursements has been raised to $200 

and is no longer an aggregate figure, in 

accordance with Pub. L. No. 96-187. 

References to “particulars" in 

subsection (b) have been changed to 

“purpose", also in accordance with Pub. 

L. No. 96-187.

Subsection (b)(3)(i) has been revised 

to clarify that an individual to whom 

$500 or less is advanced by the 

campaign for travel and/or subsistence 

and who is the recipient of the goods or 

services purchased will be considered a 

payee under this section. In that case, 

the candidate must retain 

documentation of the advance of $500 or 

less to that individual.

Subsection (c) has been added to 

provide a list of categories of documents 

that must be retained by the candidate 

and presented to the Commission on 

request

Part 9034—Entitlements

Section 9034.1 Candidate Entitlements.

This section generally follows current 

§ 9034.1 with two exceptions. First the 

language of subsection (b) has been 

revised to make clear that contributions 

deposited on or before December 31 of 

the Presidential election year may be 

matched. Second, subsection (b) has 

been revised to state that, to receive 

matching funds after the date of 

ineligibility, candidates must have net 

outstanding campaign obligations as of 

the date of payment rather than the date 

of submission. Thus, if the candidate’s 

financial position changed between the 

date of his or her submission for 

matching funds and the date of payment, 

reducing the candidate’s net outstanding 

campaign obligations, that candidate’s 

entitlement would be reduced 

accordingly.

Section 9034.2 Matchable

Contributions.

Subsection (a) generally follows 

current § 9034.2(a) except that a new 

provision has been added in subsection

(a)(4) stating that donations received by 

an individual who is “testing the
5228 Federal Register / Vol. 48, No, 25 / Friday, February 4, 1983 / Rales and Regulations

waters” may be matched when the 

individual becomes a candidate if die 

donations meet the requirements for 

matchability.

Subsection (b) has been revised to 

make clear that all written instruments 

submitted for matching must represent 

contributions of the contributor’s 

personal funds.

In subsection (c), the language 

excepting contributions from Joint 

accounts and money orders has been 

deleted. These contributions are now 

subject to the provisions of subsections

(c) (1) and (4). In subsection (c)(1) 

regarding contributions drawn on joint 

accounts, a provision has been added to 

subsection (i) requiring that joint tenants 

indicate that amount to be attributed to 

each contributor if attribution is other 

than equal. Subsection (c)(l)(ii) has been 

added to address the situation in which 

the imprinting on the check does not 

reflect whether each contributor is a 

joint tenant of the account on which the 

check is drawn. Subsection (c)(2). 

concerning checks drawn on escrow or 

trust accounts, has been revised to state 

that the contributor must have equitable, 

rather than beneficial, ownership of the 

account This change is intended as a 

more precise definition of the 

contributor's interest in die account In 

addition, subsection (c)(2)(ii) has been 

expanded to add requirements that will 

allow accompanying written 

documentation to be more easily 

correlated with the corresponding check. 

Finally, the provision in the current 

regulations that requires a statement 

that the contribution does not violate 

the conditions of die trust or escrow 

agreement has been deleted. This 

deletion was made in response to 

comments received that stressed die 

difficulty committees would have in 

seeking to assure that such contributions 

were lawfully made.

With respect to contributions drawn 

on partnership or other unincorporated 

association accounts, subsection (c)(3) 

has been revised to require a statement 

that the account is not maintained or 

controlled by a corporate entity as well 

as information allowing the 

accompanying written documentation to 

be correlated with the corresponding 

check.

Subsection (c)(4), which governs 

contributions made by money order or 

cashier’s check, has been substantially 

revised in these regulations. In the past 

the Commission has faced difficulties in 

processing and verifying the authenticity 

of contributions submitted for matching 

in the form of money orders or cashier's 

checks. Unlike other written instruments 

(e.g., personal checks), money orders 

generally do not require the signature of

the individual whose funds such 

instrument represents. Where the money 

order that evidences the contribution 

does not clearly identify the contributor, 

the matchability of the contribution is 

placed in doubt Moreover, the 

possibility of certifying for matching 

payments contributions which are not 

properly matchable increases due to the 

uncertainty that money order 

contributions represent the personal 

funds of listed contributions.

To preserve money orders and 

cashier’s checks as contributions that 

may be matched, while ensuring that 

such contributions are properly 

matchable, subsection (c)(4) now 

requires that the signature of each 

contributor appear on the money order 

or cashier’s check at the time it is 

initially submitted for matching and that 

the written instrument be accompanied 

by a signed statement evidencing that 

the contribution is made with the 

contributor’s personal funds. If these 

requirements are not met, the money 

order or cashier’s check may not be 

resubmitted for matching at a later date. 

Candidates should therefore obtain any 

additional documentation needed from 

the contributor before the contribution is 

submitted for matching purposes.

Subsection (c)(5), regarding 

contributions in the form of the purchase 

price paid to attend an entertainment 

activity, such as concert tickets, has also 

been significantly revised. These 

contributions are now matchable up to 

the full amount paid for such tickets. As 

a result, the submission requirements for 

these contributions have been 

substantially relaxed, although the 

promotional material and tickets must 

still reflect that the purchase price of a 

ticket is a contribution to the candidate.

Subsection (c)(6), regarding 

contributions in the form of the purchase 

price paid to attend a political event 

such as a political dinner, has been 

moved from current § 9034.3(i)(2).

Subsection (c)(7) has been added to 

provide that contributions received 

through joint fundraising may be 

matched.

Section 9034.3 Non-Matchabie

Contributions.

This section generally follows current 

§ 9034.3. In subsection (h), the phrase 

‘‘or otherwise induced by” has been 

added to make clear that this provision 

applies to any contribution involving a 

lottery or other drawing for prizes, 

whether or not a contribution is required 

for participation in the drawing. The 

provisions governing concert tickets and 

political dinners have been moved from 

this section to 11 CFR 9034.2.

Some of the comments received 

suggested that contributions made using 

credit cards be matchable. The 

Commission has rejected this suggestion 

because credit cards present problems 

for ensuring that the requirements of 

matchability are met. For example, 

credit card contributions could be made 

by phone and therefore lack the 

contributor’s signature. Another problem 

is that of determining the source of 

funds contributed as many cards that 

appear to be personal accounts are paid 

for by incorporated businesses. A third 

difficulty is that credit card companies 

deduct varying amounts to pay for their 

services and thus candidates would be 

requesting more in matching funds than 

they had received in contributions.

Section 9034.4 Use o f Contributions

and Matching Payments.

This section generally follows current 

§ 9034.4 but has been reorganized to 

separate qualified campaign expenses 

from non-qualified campaign expenses.

In subsection (a)(2), a provision has 

been added to make clear that 

disbursements made while ’’testing the 

waters” will count against the State and 

overall expenditure limits when the 

individual becomes a candidate.

In subsection (a)(3), the provisions 

limiting the winding down period to ten 

months and governing extensions of that 

time which were included in the 

Commission’s Notice of Proposed 

Rulemaking, have been deleted from 

these regulations in response to the 

comments received opposing this 

proposal. The Commission has also 

deleted another provision contained in 

the Notice of Proposed Rulemaking in 

subsection (b)(3). That provision would 

have classified litigation costs incurred 

after the candidate’s date of ineligibility 

as non-qualified campaign expenses. By 

deleting this provision, litigation costs 

that meet the requirements of subsection 

(a)(3) will be considered qualified 

campaign expenses.

The third provision deleted from this 

section was proposed in the Notice of 

Proposed Rulemaking as subsection (c). 

This provision would have allowed 

candidates to receive donations not 

subject to the contribution limitations 

for making repayments to the Treasury, 

but the Commission rejected this 

approach on final consideration of the 

regulations.

Section 9034.5 Net Outstanding

Campaign Obligations.

Subsection (a) generally follows 

current § 9034.5 (a) and (b).

Subsection (b)(1) basically follows 

current § 9034.5(c) but gives examples of
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5229

property that would be considered 

capital assets. Also, the requirement 

that such property have a remaining 

useful life exceeding one year has been 

deleted.

Subsection (b)(2) has been added to 

cover property acquired by a campaign 

that does not fit the concept of “capital 

assets” but can be liquidated to pay 

outstanding debts of the campaign. 

Therefore, this property should be 

included in the candidate’s statement of 

net outstanding campaign obligations to 

reflect these assets if the aggregate 

value of all property in this category 

exceeds $5,000. Items that should be 

considered “other assets” include 

artwork, gifts such as pen sets acquired 

for use in fundraising, and items 

acquired by the campaign to be used as 

collateral for loans.

Subsection (c) has been added to 

require candidates to include in their 

statement funds they are due to receive 

from joint fundraising activity, even 

though such funds have not yet been 

transferred to the candidate by the 

fundraising representative. The intent of 

this provision is to avoid overpayment 

of matching funds when the candidate is 

due to receive additional contributions 

received through joint fundraising.

Subsection (d) reflects the 

Commission’s requirement that 

statements be updated with each 

matching fund submission to reflect the 

candidate’s current financial situation.

Subsection (e) provides the 

circumstances under which the 

Commission may temporarily suspend 

all or a portion of further matching 

payments based upon a Commission 

determination that a candidate’s 

outstanding campaign obligations do not 

exceed campaign assets either to the 

extent claimed by the candidate or 

perhaps at all.

Section 9034.8 Reimbursements for

Transportation and Services M ade

Available to Media Personnel.

This new section generally follows the 

current general election public financing 

regulations at 11 CFR 9004.6. However, 

references to expenditures for travel and 

services provided to Secret Service 

personnel and other staff required by 

law have been deleted as other 

government regulations govern payment 

for those expenditures.

In subsection (a), the language has 

been revised to make clear that 

expenditures for travel and services 

provided to media personnel will be 

subject to the overall expenditure 

limitation under 2 U.S.C. 441a(b)(l)(A) 

although they do not need to be 

allocated among the various State limits.

Under subsection (b), the 

reimbursements received from each 

person may not exceed the total cost of 

providing services to that person by 

more than 10%. The 10% figure will be 

based on the total cost of providing 

services to each person over the course 

of the campaign rather than on a per-trip 

basis. Candidates may include the cost 

of “down-time” for leased aircraft in the 

amount requested for reimbursement as 

this is a cost of providing transportation 

to the media. The reimbursements may 

be deducted from the amount applied to 

the overall expenditure lim it but only to 

the extent that the reimbursements do 

not exceed the actual cost to the 

campaign.

Section 9034.7 Allocation o f Travel

Expenditures.

This new section generally follows the 

current general election public financing 

regulations at 11 CFR 9004.7 with one 

significant change. Subsection (b)(5) has 

been revised to require that candidates 

using government conveyance, such as 

government aircraft, pay the equivalent 

of first class commercial air fare or 

commercial charter fare rather than the 

actual cost of such government 

transportation. Candidates must also 

pay the cost of other government 

conveyances or accommodations used, 

such as government-owned cars or 

buses.

Section 9034.8 Joint Fundraising.

This section has been added in 

response to the number of questions that 

arose during the 1980 election cycle 

concerning joint fundraising by 

candidates receiving matching funds.

The requirements of this section 

generally follow the procedures 

established in the Commission’s 

advisory opinions and in the course of 

the Commission’s consideration of joint 

fundraising events during the 1980 

election cycle.

Subsection (a)(1) describes the 

persons or entities with whom a 

Presidential primary candidate may 

engage in joint fundraising. Subsection.

(a)(2) outlines the various permissible 

uses for funds received as a result of 

joint fundraising.

Subsection (b) essentially follows the 

Commission’s advisory opinions by 

requiring that the participants either 

establish a separate political committee 

or select a participating political 

committee to act as the fundraising 

representative. The fundraising 

representative then is responsible for 

collecting contributions, paying the costs 

of the fundraising effort and disbursing 

net proceeds to each participant. While 

the participant may engage a

commercial fundraising firm to assist in 

conducting the activity, they must still 

select a fundraising representative.

Subsection (c) sets out the procedures 

to be followed for conducting joint 

fundraising activities. Under subsection

(c)(1), the participants must enter into a 

written agreement. A copy of this 

agreement must be submitted by 

Presidential primary candidates when 

they submit the contributions received 

for matching.

Subsection (c)(2) limits the amount 

that can be advanced by each 

participant as start-up costs. Under 

subsection (c)(3), each solicitation for 

contributions to a joint fundraiser must 

contain a fundraising notice informing 

contributors of specified details of the 

fundraising activity.

Subsection (c)(4) requires that the 

participants establish a separate 

account for the receipt and 

disbursement of joint fundraising 

proceeds. Only funds permissible under 

the Act may be deposited into this 

account. If one of the participants can 

accept funds prohibited under the A ct 

the participants may either set up a 

second account to collect those funds or 

transfer them directly to those 

participants that can accept prohibited 

funds. In either case, the prohibited 

funds need not be included in the 

allocation formula for payment of 

expenses or distribution of proceeds.

Subsection (c)(4)(iii) makes clear that 

although distribution of proceeds may 

be delayed until all expenses are paid, 

the participants will be deemed to have 

received the contributions as of the date 

they are received by the fundraising 

representative.

Subsection (c)(5) describes the 

recordkeeping responsibilities of the 

fundraising representative and 

participating committees. The 

fundraising representative should 

request the contributor records of each 

participant for those contributing to the 

fundraising activity to aid in screening 

and distributing contributions.

Subsection (c)(6) permits contributors 

to donate to a joint fundraiser an 

amount up to that which the contributor 

could give, in the aggregate, to all the 

participants subject to the applicable 

contribution limits. Therefore, if five 

Presidential primary candidates 

participated in a joint fundraiser, and 

agreed to share proceeds equally, an 

individual could contribute up to $5,000, 

minus any amount that individual had 

previously contributed to any of the 

participants.

Subsection (c)(7) governs the manner 

in which the fundraising representative 

must allocate gross proceeds among the
5230 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

participants. Subsection (c)(7)(i) 

prohibits any allocation method used to 

maximize the matchability of the 

contributions received. That is, the 

allocation method cannot be based on 

whether any of the participating 

Presidential primary candidates have 

received the maximum amount of 

matchable contributions from an 

individual. Thus, candidates may not 

“trade" contributions from individuals 

who have already contributed the 

maximum amount that could be 

matched.

For a candidate seeking to extinguish 

outstanding debts, subsection (c)(7)(ii) 

prohibits reallocation of the receipts of a 

joint fundraiser once that candidate has 

received sufficient matchable 

contributions to pay off his or her debts 

after those contributions have been 

matched. Rather, candidates must 

continue to receive their share of joint 

fundraising contributions until those 

contributions alone are sufficient to pay 

the candidate’s debts. For example, 

assume that Candidate A has 

outstanding debts of $100,000, Candidate 

B has outstanding debts of $200,000 and 

that these two candidates have agreed 

to share proceeds of a joint fundraiser 

on a 50-50 basis. If the joint fundraiser 

nets $200,000, Candidate A may not 

reallocate his share to Candidate B after 

receiving only $50,000 in reliance on 

receiving another $50,000 in matching 

funds to extinguish his debts. Instead, 

Candidate A must take his full share of 

$100,000 and pay his debts with the 

contributions raised.

Subsection (c)(8) governs allocation of 

expenses and distribution of net 

proceeds. Under subsections (c)(8) (i) 

and (ii), “committees of the same 

political party" refers only to party 

committees and not to candidates 

running on the same party ticket.

Subsection (c)(9) explains when and 

how receipts and disbursements must be 

reported by the fundraising 

representative and participating 

political committees.

Section 9034.9 Sale o f Assets Acquired

fo r Fundraising Purposes.

Section 9034.9 has been added to the 

regulations to set forth rules regarding 

the sale of “Other Assets" as defined in 

§ 9034.5(b)(2) of these regulations. 

Subsection (a) follows Advisory Opinion 

1980-34 in setting forth the general rule 

that a candidate may sell assets 

donated to a campaign or otherwise 

acquired for fundraising purpose (e.g. 

artwork) provided that the sale does not 

violate die limitations and prohibitions 

of Tide 2, United States Code, and the 

regulations prescribed thereunder (11 

CFR Parts 110 and 114). Subsection (b)

provides the exception to the general 

rule. The exception permits a candidate 

who is in a debt situation at the end of 

the matching payment period to dispose 

of such assets in an arms-length 

transaction, without regard to the 

limitations and prohibitions of Tide 2, 

United States Code and 11 CFR Parts 

110 and 114, if the candidate is still in a 

debt position at the time of the 

transaction. Accordingly, under this 

specific factual situation a candidate 

may dispose of assets acquired for 

fundraising purposes in a sale to a 

wholesaler or other intermediary who 

will in turn sell such assets to the public. 

Any such wholesaler or other 

intermediary may then sell the items to 

the public without regard to the 

limitations and prohibitions of the Act.

If the candidate has more than one 

category of items to dispose of, such as 

cars and artwork, he or she may have to 

sell each category of assets to a 

different wholesaler or wholesalers 

depending upon the circumstances. The 

Commission expects, however, that 

candidates will limit the number of 

these liquidation transactions to the 

fewest possible.

Part 9035—Expenditure Limitations

Section 9035.1 Campaign Expenditure

Limitation.

Subsection (a) generally follows 

current § 9035.1 (a). Subsection (b) has 

been added to cross-reference the 

allocation requirements of 11 CFR 106.2.

Under subsection (c), candidates may 

exempt 10% of all salaries and overhead 

expenditures from the overall 

expenditure limitation as exempt 

compliance costs. Candidates may also 

exempt 10% of such costs as exempt 

fundraising expenditures. The 

procedures for claiming a larger 

exemption under this section are the 

same as those under 11 CFR 106.2(c)(5).

Subsection (d) generally follows 

current § 9035.1(b).

Section 9035.2 Limitation on

Expenditures from Personal or Family

Funds.

This section follows current § 9035.2.

Part 9036—Review of Submission and 

Certification of Payments by 

Commission

Section 9036.1 Threshold Submission.

Subsection (a) generally follows 

current § 9033.2(e) but explains that the 

threshold submission may be presented 

either with or after the candidate 

agreement and certifications are 

submitted.

Subsection (b)(1) essentially follows 

current $ 9033.2(c)(2)(i) but has been

reorganized for clarity. In addition, the 

requirement in current § 9033.2(c)(2)(i) 

that the candidate indicate which 

contributions were received as a result 

of entertainment activity has been 

changed to require a notation only for 

contributions received as a result of 

joint fundraising activities.

Subsection (b)(2) generally follows 

current § 9033.2 (c)(2)(ii) but requires 

that the photocopies submitted be fullsize. This new requirement was added 

because the Commission has had 

difficulty in the past with photocopies 

that were reduced in size and therefore 

difficult or impossible to read. The 

option of requiring that photocopies be 

“legible” rather than “full-size” was 

rejected as the former term could be 

subject to many varying interpretations.

In addition, some commenters 

suggested that the Commission permit 

use of microfilm in place of photocopies. 

This was also rejected as an option for 

several reasons. First, microfilm does 

not always reproduce as well as 

photocopying particularly in the case of 

checks on colored paper. Therefore, 

microfilm impedes the Commission’s 

ability to review candidate submissions. 

Second, there is greater risk to 

candidates who use microfilm. If the 

film is damage or improperly developed, 

it is generally too late to make new films 

of the checks received as they will have 

been deposited. In that case, the 

candidate cannot receive matching 

funds for any of the contributions 

involved.

Subsections (b) (3) and (4) have been 

added to reflect established Commission 

requirements.

Subsections (b)(5) generally follows 

current § 9036.1(b). Subsection (b)(6) 

generally follows current § 9033.2(c)(3).

Subsection (c)(1) essentially follows 

current § 9036.1(a). Subsections (c) (2) 

and (3) generally follow current 

s 9036.1(c) but explain the difference in 

procedure between the Presidential 

election year and the year preceding it.

Section 9036.2 Additional Submissions

fo r Matching Fund Payments.

Subsection (a) generally follows 

current § 9036.2(b).

Subsection (b) generally follows 

current § 9036.2 (a) and (b). Subsection

(b)(1) contains several new provisions. 

First, a requirement that the first 

submission contain all the contributions 

and supporting documentation from the 

threshold submission, in addition to the 

contributions presented in that 

submission, has been included in this 

subsection. Second, all documentation 

for each submission presented after the
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5231

threshold submission must be presented 

in straight alphabetical order and not 

segregated by State as in the threshold 

submission. Formerly, candidates could 

choose either method of presentation in 

additional submissions but the second 

method created too many problems for 

committees. Finally, an alternative 

method of submitting the supporting 

documentation of written instruments 

that accompanies contributions 

submitted for matching has been 

included in subsection (b)(l)(v). This 

subsection provides that a candidate 

may batch contributions in deposits of 

50 contributions or less and crossreference the contributions by deposit 

number and sequence number on the 

contributor list. Under this method, 

.committees would not have to 

alphabetize the checks supporting a 

submission for matching hinds but 

would still have to alphabetize the 

contributor list

Under subsection (b)(2), candidates 

may request additional matching funds, 

on dates prescribed by the Commission, 

by making a letter request in lieu of a 

full submission as required under 11 

CFR 9036.2(b)(1). These letter requests 

must state an amount of matchable 

contributions which were not previously 

submitted for matching and be 

accompanied by bank documentation, 

such as bank-validated deposit slips or 

unvalidated deposit slips and the 

relevant bank statement, to demonstrate 

that the committee has received the 

contributions submitted. .The amount 

requested for matching in a letter 

request may include contributions 

received up to the last business day 

preceding the date of the letter request. 

Subsection (b)(2) also specifies that the 

next submission following a letter 

request must contain documentation for 

the contributions included in the letter 

request as well as the contributions 

submitted for matching in that 

submission. A committee may not 

submit two consecutive letter requests, 

but the committee may choose to make 

a full submission on a date designated 

as a letter request date.

Subsection (c)(l)(i) explains that, 

during a candidate’s period of eligibility, 

the Commission will certify an amount 

based on its holdback procedure within 

5 business days after receiving a regular 

submission. If a candidate makes a 

letter request, the Commission will 

certify an amount based upon the ratio 

of verified matchable contributions to 

total deposits for that candidate in the 

candidate’s last regular submission. The 

Commission will then certify any 

additional amount to which the eligible 

candidate is entitled within 15 business

days after receipt of the candidate’s 

submission.

Consideration was also given to 

incorporating rejection criteria into the 

regulations. As initially proposed, these 

criteria would have operated to reject 

from further Commission review a 

submission in which the pilot sample 

was determined to contain an error rate 

in excess of 15%. The Commission was 

reluctant to include these criteria in the 

regulations and, therefore, no provisions 

to this effect have been drafted. 

However, in recognition of the increased 

time which is required for Commission 

review of a matching fund submission 

which has a high error rate, subsection

(c)(1)(H) permits 25 business days, rather 

than 15 business days, for review of 

such submissions.

Subsection (c)(2) provides that the 

Commission’s certification process 

under the holdback procedure will no 

longer apply after five candidate’s date 

of ineligibility. Rather, the Commission 

will conduct its review of the 

submission before certifying any funds.

Subsection (d) explains that 

submissions made in the year before the 

Presidential election year must contain a 

minimum of $50,000 in contributions. No 

certifications of matching funds will be 

made based on such submissions until 

after January 1 of the Presidential 

election year, in accordance with 26 

U.S.C. 9037(b).

Section 9036.3 Submission Errors and

Insufficient Documentation.

This section generally follows current 

S 9036.3 with some changes. First, this 

section now states that money orders 

and cashier’s checks cannot be 

resubmitted as provided under 11 CFR 

9034.2. Second, subsection (b) no longer 

provides that misspelling will be a basis 

for rejection. However, to the extent that 

misspelling triggers other errors in the 

submission, such as aggregation errors, 

other error categories may apply. 

Subsections (b) (3) and (4) have been 

added to follow established Commission 

practice.

A fourth change, in subsection (c)(2), 

represents a change in Commission 

policy. Formerly, the Commission 

considered all aggregation errors as a 

basis for rejection, whether the error 

resulted in a request for too much or too 

little in matching funds. As revised, this 

subsection now states that only 

aggregation errors which could cause 

more than $250 to be matched for a 

contributor will be the basis for 

rejection.

Finally, subsections (c)(3) and (d) 

have been added to follow established 

Commission practice.

Section 9036.4 Commission Review o f

Submissions.

Section 9036.4 has been reorganized to 

clarify the distinction between a 

submission which is not accepted for 

review because it'does not satisfy 

format requirements and a submission 

which satisfies these requirements and 

is reviewed. This section thus codifies 

the past practice of not accepting for 

review submissions that do not meet 

minimum facial standards necessary for 

proper processing.

Subsection (d) provides that the 

Commission may conduct an audit and 

examination under Part 9039 of 

contributions submitted for matching.

Section 9036.5 Resubmissions.

This section has been revised to more 

accurately reflect Commission 

resubmission procedures. Under 

subsection (c)(6), candidates must 

include a statement with each 

resubmission that the committee’s 

contributor records have been corrected 

consistently with the resubmission. This 

requirement follows established 

Commission practice. Subsection (d) 

now provides that the Commission will 

certify any funds within 15 business, 

rather than calendar, days.

Section 9036.6 Continuation o f

Certification.

This section changes the time for 

making the last submission from January 

21 to the last Monday in January. This 

deadline only applies to contributions 

submitted for the first time. It does not 

apply to resubmissions of contributions 

that were previously rejected for 

matching.

Part 9037—Payments

Section 9037.1 Payments o f

Presidential Primary Matching Funds.

This section follows current § 9037.1.

Section 9037J2 Equitable Distribution

o f Funds.

This section follows current § 9037.2.

Section 9037.3 Deposits o f Presidential

Primary Matching Funds.

This section follows current § 9037.3. 

Part 9038—Examinations and Audits 

Section 9038.1 A udit

Subsection (a)(1) Generally follows 

current § 9038.1(a). Subsection (a)(2) 

generally follows current 5 9038.1(b). 

Subsection (a)(3) has been added to 

make clear that information obtained 

pursuant to an audit may be used as the 

basis for a Commission repayment 

determination.
5232 Federal Register / V ol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

Subsection (b) provides a description 

of audit fieldwork. Subsection (b)(1) 

makes clear that it is the committee’s 

responsibility to provide adequate office 

space and access to committee records 

and personnel pursuant to the candidate 

and committee agreement. If the 

committee fails to provide adequate 

office space, access to records and/or 

personnel, the Commission will notify 

the candidate and recommend 

corrective action. If the dispute is not 

resolved, the Commission may seek 

judicial intervention to enforce the 

candidate and committee agreement. 

Subsection (b)(l)(iv) sets forth the 

procedures by which a candidate may 

seek Commission review of disputes 

that arise during the conduct of the audit 

that cannot be resolved informally.

Subsections (b) (2), (3) and (4) 

describe the various steps in the audit 

fieldwork based on past Commission 

practice.

Subsection (c) describes the 

preparation of, and candidate’s response 

to, an interim audit report. The contents 

of the interim audit report are generally 

described in subsection (c)(1). Pursuant 

to subsection (c)(l)(v), the candidate 

will also have an opportunity to respond 

to the Commission’s preliminary 

calculations regarding future 

repayments, in addition to any issues 

that may have been raised by the audit. 

This last provision was added in 

response to comments suggesting that 

candidates be given the earliest possible 

opportunity to respond to the 

Commission’s thinking with respect to 

its future repayment determination. 

These preliminary calculations will not, 

however, be considered as the 

Commission’s initial repayment 

determination under 11 CFR 9038.2(c)(1).

Subsection (d) describes the 

preparation of the audit report that is 

publicly released. This report is the 

same as the interim report with two 

main distinctions. First, this report may 

be revised based on the candidate’s 

response to the interim report. Second, 

this report will contain the 

Commission’s initial repayment 

determination pursuant to 11 CFR 

9038.2(c)(1) instead of the preliminary 

calculations found in the interim report.

Subsection (e) explains the public 

release of the audit report. It also makes 

clear that addenda to the audit report 

may be issued later on. These addenda 

may be based, in part, on follow-up 

fieldwork conducted by the 

Commission.

Section 9038.2 Repayments.

Subsection (a) includes language to 

advise candidates to give preference to 

repayments required by § 9038.2 over all

other outstanding obligations of their 

committees once the Commission has 

made a final repayment determination.

Subsection (b) has been revised and 

reorganized to provide greater detail 

regarding the different bases for 

Commission repayment determinations. 

Language in the current regulations 

regarding specific repayment formulas 

(e.g., "the candidate shall repay * * * an 

amount equal to the amount * * *”) has 

been deleted from this section. As that 

language generally follows 26 U.S.C. 

9038(b), the Commission will continue to 

follow its past practice in applying 

repayment formulas. Therefore, this 

deletion is not intended to indicate a 

change in policy.

Subsection (c) sets forth each step 

involved in the making of a repayment 

determination. Under subsection (c)(3), 

the Commission may permit a candidate 

to make an oral presentation to the 

Commission prior to the Commission’s 

final repayment determination.

Subsections (d) and (e) clarify the 

time periods in which the candidate 

must repay the United States Treasury.

Subsection (f) clarifies that the 

Commission may make additional 

repayment determinations on the basis 

of new facts.

Subsection (g) requires the candidate 

or committee to inform the Commission 

of newly-discovered assets after a 

repayment determination has been 

made.

Section 9038.3 Liquidation o f

Obligations; Repayment.

This section generally follows current 

§ 9038.3, but subsection (c)(3) has been 

added to distinguish the Commission’s 

ability to determine that the candidate 

has a surplus from the candidate’s own 

determination and decision to 

voluntarily return funds to the Treasury.

Section 9038.4 Extensions o f Time.

This new section governs applications 

for extensions of time throughout the 

audit and repayment process.

Part 9039—Review and Investigative 

Authority

Section 9039.1 Retention o f Books and

Records.

Part 9039 has been added to describe 

the Commission’s review 

responsibilities and authority in its 

administration of the matching fund 

program. In making determinations, 

certifications, and findings under the 

Presidential Primary Matching Payment 

Account Act and related regulations, the 

Commission must perform a continuing 

review of candidate and committee 

reports and submissions, and other

relevant information. For the most part, 

the Commission’s review is routine. In 

the past, however, there have been 

instances when the Commission has 

decided to conduct a more extensive 

review, or investigation, in order to 

properly discharge its statutory 

responsibilities. Prompted in part by a 

number of court decisions over the 

years, this new Part 9039 sets forth, for 

the first time in the regulations, the 

nature of the Commission's review in 

administering the matching fund 

program, including its authority under 26 

U.S.C. 9039 to conduct investigations.

Section 9039.1 restates the 

responsibilities of candidates and 

committees to keep and furnish to the 

Commission certain information 

required by the Act and regulations.

Section 9039.2 Continuing Review.

This section briefly describes the 

routine Commission review conducted 

on a continuing basis as part of the 

Commission’s administration of the 

matching fund program. Subsection (b) 

provides that Commission staff may 

contact representatives of the candidate 

on an informal basis.

Section 9039.3 Examination and

Audits; Investigations.

This section describes the 

Commission’s investigations under Part 

9039. Generally, the Commission will 

exercise its authority under Parf9039 

when the issues raised relate to the 

candidate’s continuing eligibility or the 

amount of his or her entitlement during 

the course of the campaign. Part 9039 

therefore provides the Commission with 

a means for resolving such questions 

expeditiously in the course of fulfilling 

its statutory obligation to review 

submissions and certify funds. 

Subsection (a)(1) requires that the 

Commission initiate an inquiry under 

this section on an affirmative vote of 

four of its members. Subsection (a)(2) 

sets forth the uses to which information 

obtained could be put, and describes the 

relationship between an investigation 

conducted under this section and one 

made under 2 U.S.C. 427g. Subsection

(a)(3) provides that the Commission 

must first seek to obtain relevant 

information as part of its continuing 

review before exercising its authority to 

conduct an inquiry. This subsection also 

makes reference to the judicial standard 

of "patent irregularities suggesting the 

possibility of fraud" which the 

Commission must find before it can 

withhold matching payments prior to 

concluding its inquiry.

Subsection (b)(1) provides for 

notification to the candidate, and
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5233

subsection (b)(2) sets forth the 

Commission’s possible methods in 

conducting the inquiry. Subsection (b)(3) 

distinguishes an inquiry conducted 

under part 9039 from the procedures for 

an investigation conducted under 2 

U.S.C. 437g.

PART 106— [AMENDED]

1. The authority citation for Part 106 is 

revised to read as follows:

Authority: Pub. L. 92-225, title in, Sec. 315, 

form erly Sec. 320, as added by Pub. L 94-283, 

title I, S e c. 112(2), 90 Stat. 486, renu m bered by 

Pub. L 96-187, title I, Sec. 105(a)(5), 93 Stat 

1354 (2 U.S.C. 441a(b), 441a(g)).

2 .1 1 CFR Part 106 is amended by 

revising §§ 106.2 and 106.3(a) to read as 

follows:

§ 106.2 State allocation of expenditures

incurred by authorized committees of

Presidential primary candidates receiving

matching funds.

(a) General.

(1) This section applies to Presidential 

primary candidates receiving or 

expecting to receive Federal matching 

funds pursuant to 11 CFR Parts 9031 et

seq. Except for expenditures exempted 

under 11 CFR 106.2(c), expenditures 

incurred by a candidate’s authorized • 

committee(s) for the purpose of 

influencing die nomination of that 

candidate for the office of President 

with respect to a particular State shall 

be allocated to that State. An 

expenditure shall not necessarily be 

allocated to the State in which the 

expenditure is incurred or paid.

(2) Disbursements made prior to the 

time an individual becomes a candidate 

for the purpose of determining whether 

that individual should become a 

candidate pursuant to 11 CFR 100.7(b)(1) 

and 100.8(b)(1), i.e., payments for testing 

the waters, shall be allocable 

expenditures under this section if the 

individual becomes a candidate.

(b) M ethod o f A llocating Expenditures

Among States.

(1) G eneral A llocation M ethod. Unless 

otherwise specified under paragraph (b)

(2) of this section, an expenditure 

incurred by a candidate’s authorized 

committee(s) for the purpose of 

influencing die nomination of that 

candidate in more than one State shall 

be allocated to each State on a 

reasonable and uniformly applied basis.

(2) S pecific A llocation M ethods.

Expenditures that fall within the 

categories listed below shall be 

allocated based on the following 

methods. The method used to allocate a 

category of expenditures shall be based 

on consistent data for each State to 

which an allocation is made.

(i) M edia Expenditures.—(A) Print

M edia. Except for expenditures 

exempted under paragraph (c) of this 

section, allocation of expenditures for 

the publication and distribution of 

newspaper, magazine and other types of 

printed advertisments distributed in 

more than one State, including any 

commission charged for the purchase of 

print media, shall be made using relative 

circulation percentages in each State or 

an estimate thereof. For purposes of this 

section, allocation to a particular State 

will not be required for a publication 

which is circulated to less than 3% of the 

total estimated readership of that 

publication in that State.

(B) Broadcast M edia. Except for 

expenditures exempted under paragraph

(c) of this section, expenditures for 

radio, television and similar types of 

advertisements purchased in a 

particular media market that covers 

more than one State shall be allocated 

to each State in proportion to the 

estimated audience. This allocation of 

expenditures, including any commission 

charged for the purchase of broadcast 

media, shall be made using industry 

market data.

(C) Refunds fo r M edia Expenditures.

Refunds for broadcast time or 

advertisement space, purchased but not 

used, shall be credited to the States on 

the same basis as the original allocation.

(D) Lim its on A llocation o f M edia

Expenditures. No allocation of media 

expenditures shall be made to any State 

in which the primary election has 

already been held.

(ii) Salaries. Except for expenditures 

exempted under paragraph (c) of this 

section, salaries paid to persons working 

in a particular State for five consecutive 

days or more, including advance staff, 

shall be allocated to each State in 

proportion to the amount of time spent 

in that State during a payroll period.

(iii) Intra-State Travel and

Subsistence Expenditures. Travel and 

subsistence expenditures for persons 

working in a State for five consecutive 

days or more shall be allocated to that 

State in proportion to the amount of time 

spent in each State during a payroll 

period. This same allocation method 

shall apply to intra-state travel and 

subsistence expenditures of the 

candidate and his family or the 

candidate’s representatives.

(iv) O verhead Expenditures.—(A) 

O verhead Expenditures o f State O ffices.

Except for expenditures exempted under 

paragraph (c) of this section, overhead 

expenditures of offices located in a 

particular State shall be allocated to 

that State. For purposes of this section, 

overhead expenditures include, but are 

not limited to, rent, utilities, office

equipment, furniture, supplies, and 

telephone service base charges.

(B) O verhead Expenditures o f

R egional O ffices. Except for 

expenditures exempted under paragraph

(c) of this section, overhead 

expenditures of a regional office or any 

office with responsibilities in two or 

more States shall be allocated to each 

State on a reasonable and uniformly 

applied basis. For purposes of this 

section, overhead expenditures include 

but are not limited to, rent, utilities, 

office equipment, furniture, supplies, 

and telephone service base charges.

(v) Telephone Service Expenditures.—

(A) Intra-state Telephone Calls.

Expenditures for all calls made within a 

particular State shall be allocated to 

that State.

(B) Inter-state Telephone Calls.

Expenditures for telephone calls 

between two States need not be 

allocated to any State.

(vi) Public Opinion P oll Expenditures.

Expenditures incurred for the taking of a 

public opinion poll covering only one 

State shall be allocated to that State. 

Except for expenditures incurred in 

conducting a nationwide poll, 

expenditures incurred for the taking of a 

public opinion poll covering two or more 

States shall be allocated to those States 

based on the number of people 

interviewed in each State.

(c) Expenditures Exem pted from

A llocation.—(1) N ational Campaign

Expenditures.—(i) Operating

Expenditures. Expenditures incurred for 

administrative, staff, and overhead 

expenditures of the national campaign 

headquarters need not be allocated to 

any State. Overhead expenditures shall 

be defined as in paragraph (b)(2)(iv) of 

this section.

(ii) N ational Advertising.

Expenditures incurred for 

advertisements on national networks, 

national cable or in publications 

distributed nationwide need not be 

allocated to any State.

(iii) N ationwide Polls. Expenditures 

incurred for the taking of a public 

opinion poll which is conducted on a 

nationwide basis need not be allocated 

to any State.

(2) M edia Production Costs.

Expenditures incurred for production of 

Media advertising, whether or not that 

advertising is used in more than one 

State, need not be allocated to any 

State.

(3) Expenditures For Transportation

and Services M ade A vailable to M edia.

Expenditures incurred by the 

candidate’s authorized committee(s) to 

provide transportation and services for 

media personnel need not be allocated
5234 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

to any State. Reimbursement for such 

expenditures shall be made in 

accordance with 11 CFR 9034.6.

(4) Interstate Travel. Expenditures 

incurred for inter-state travel costs, such 

as travel between State campaigns or 

between State offices and national 

campaign headquarters, need not be 

allocated to any State.

(5) Compliance Costs and Fundraising

Expenditures. An amount equal to 10% 

of campaign workers’ salaries and 

overhead expenditures in a particular 

State may be excluded from allocation 

to that State as an exempt compliance 

cost. An additional amount equal to 10% 

of such salaries and overhead 

expenditures in a particular State may 

be excluded from allocation to that 

State as exempt fundraising 

expenditures, but this exemption shall 

not apply within 28 calendar days of the 

primary election as specified in 11 CFR 

110.8(c)(2). Any amounts excluded for 

fundraising expenditures shall be 

applied against the fundraising 

expenditure limitation under 11 CFR 

100.8(b)(21). If the candidate wishes to 

claim a larger compliance or fundraising 

exemption for any person, the candidate 

shall establish allocation percentages 

for each individual working in that 

State. The candidate shall keep detailed 

records to support the derivation of each 

percentage in accordance with 

paragraph (e) of this section.

(d) Reporting. All expenditures 

allocated under this section shall be 

reported on FEC Form 3P, page 3.

(e) Recordkeeping. All assumptions 

and supporting calculations for 

allocations made under this section 

shall be documented and retained for 

Commission inspection. For compliance 

and fundraising deductions that exceed 

the 10% exemptions under paragraph

(c)(5) of this section, such records shall 

indicate which duties are considered 

compliance or fundraising and the 

percentage of time each person spends 

on such activity.

§ 106.3 Allocation of expenses between

campaign and non-campaign related travel.

(a) This section applies to allocation 

for expenses between campaign and 

non-campaign related travel with 

respect to campaigns of candidates for 

Federal office, other than Presidential 

and Vice Presidential candidates who 

receive federal funds pursuant to 11 CFR 

Part 9005 or 9036. (See 11 CFR 9004.7 

and 9034.7) All expenditures for 

campaign-related travel paid for by a 

candidate from a campaign account or 

by his or her authorized committees or 

by any other political committee shall 

be reported.

* ♦ * * *

3.11 CFR is amended by revising 

Subchapter G, Parts 9031 through 9038, 

and by adding new Part 9039 to read as 

follows:

PART 9031— SCOPE

§ 9031.1 Scope.

This subchapter governs entitlement 

to and use of funds certified from the 

Presidential Primary Matching Payment 

Account under 26 U.S.C. 9031 et seq. The 

definitions, restrictions, liabilities and 

obligations imposed by this subchapter 

are in addition to those imposed by 

sections 431-455 of Title 2, United States 

Code, and regulations prescribed 

thereunder (11 CFR Parts 100 through 

115). Unless expressly stated to the 

contrary, this subchapter does not alter 

the effect of any definitions, restrictions, 

obligations and liabilities imposed by 

sections 431^455 of Title 2, United States 

Code, or regulations prescribed 

thereunder (11 CFR Parts 100 through 

115).

(Pub. L. 93-443, title IV, sec. 408(c), 88 Stat. 

1297 (26 U.S.C. 9031))

PART 9032— DEFI NITIONS

Sec.

9032.1 Authorized committee.

9032.2 Condidate.

9032.3 Commission.

9032.4 Contribution.

9032.5 Matching payment account.

9032.6 Matching payment period.

9032.7 Primary election.

9032.8 Political committee.

9032.9 Qualified campaign expenses.

9032.10 Secretary.

9032.11 State.

Authority: Pub. L. 93-443, title IV, Sec. 

408(c), 88 S ta t 1297, as amended by Pub. L 

94-283, title I, sec. 115(c)(2), title HI, sec. 

306(b)(1), 90 Stat. 495,500 (26 U.S.C. 9032).

§ 9032.1 Authorized committee.

(a) Notwithstanding the definition at 

11 CFR 100.5, “authorized committee” 

means with respect to candidates (as 

defined at 11 CFR 9032.2) seeking the 

nomination of a political party for the 

office of President, any political 

committee that is authorized by a 

candidate to solicit or receive 

contributions or to incur expenditures 

on behalf of the candidate. The term 

“authorized committee” includes the 

candidates principal campaign 

committee designated in accordance 

with 11 CFR 102.12, any political 

committee authorized in writing by the 

candidate in accordance with 11 CFR

102.13, and any political committee not 

disavowed by the candidate in writing 

pursuant to 11 CFR 100.3(a)(3).

(b) Any withdrawal of an 

authorization shall be in writing and 

shall be addressed and filed in the same

manner provided for at 11 CFR 102.12 or

102.13.

(c) For the purposes of this 

subchapter, references to the 

“candidate” and his or her 

responsibilities under this subchapter 

shall also be deemed to refer to the 

candidate’s authorized committee(s).

(d) An expenditure by an authorized 

committee on behalf of the candidate 

who authorized the committee cannot 

qualify as an independent expenditure.

(e) A delegate committee, as defined 

in 11 CFR 100.5(e)(5), is not an 

authorized committee of a candidate 

unless it also meets the requirements of 

11 CFR 9032.1(a). Expenditures by 

delegate committees on behalf of a 

candidate may count against that 

candidate’s expenditure limitation under 

the circumstances set forth in 11 CFR

110.14.

§ 9032.2 Candidate.

“Candidate” means an individual who 

seeks nomination for election to the 

office of President of the United States. 

An individual is considered to seek 

nomination for election if he or she—

(a) Takes the action necessary under 

the law of a State to qualify for a 

caucus, convention, primary election or 

runoff election;

(b) Receives contributions or incurs 

qualified campaign expenses;

(c) Gives consent to any other person 

to receive contributions or to incur 

qualified campaign expenses on his or 

her behalf; or

(d) Receives written notification from 

die Commission that any other person is 

receiving contributions or making 

expenditures on the individual’s behalf 

and fails to disavow that activity by 

letter to the Commission within 30 

calendar days after receipt of 

notification.

§ 9032.3 Commission.

“Commission” means the Federal 

Election Commission, 1325 K Street, 

Northwest, Washington, D.C. 20463.

§ 9032.4 Contribution.

For purposes of this subchapter, 

“contribution” has the same meaning 

given the term under 2 U.S.C. 431(8)(A) 

and 11 CFR 100.7, except as provided at 

11 CFR 9034.4(b)(4).

§ 9032.5 Matching payment account

“Matching payment account” means 

the Presidential Primary Matching 

Payment Account established by the 

Secretary of the Treasury under 26 

U.S.C. 9037(a).
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5235

§ 9032.6 Matching payment period.

“Matching payment period” means 

the period beginning January 1 of the 

calendar year in which a Presidential 

general election is held and may not 

exceed one of the following dates:

(a) For a candidate seeking the 

nomination of a party which nominates 

its Presidential candidate at a national 

convention, the date on which the party 

nominates its candidate.

(b) For a candidate seeking the 

nomination of a party which does not 

make its nomination at a national 

convention, the earlier of—

(1) The date the party nominates its 

Presidential candidate, or

(2) The last day of the last national 

convention held by a major party in the 

calendar year.

§ 9032.7 Primary election.

(a) “Primary, election” means an 

election held by a State or a political 

party, including a runoff election, or a 

nominating convention or a caucus—

(1) For the selection of delegates to a * 

national nominating convention of a 

political party;

(2) For the expression of a preference 

for the nomination of Presidential 

candidates;

(3) For the purposes stated in both 

paragraphs (a) (1) and (2) of this section; 

or

(4) To nominate a Presidential 

candidate.

(b) If separate primary elections are 

held in a State by the State and a 

political party, the primary election for 

the purposes of this subchapter will be 

the election held by the political party.

§ 9032.8 Political committee.

“Political committee” means any 

committee, club, association, 

organization or other group of persons 

(whether or not incorporated) which 

accepts contributions or incurs qualified 

campaign expenses for the purpose of 

influencing, or attempting to influence, 

the nomination of any individual for 

election to the office of President of the 

United States.

S 9032.9 Qualified campaign expense.

(a) “Qualified campaign expense” 

means a purchase, payment, 

distribution, loan, advance, deposit, or 

gift of money or anything of value—

(1) Incurred by or on behalf of a 

candidate or his or her authorized 

committees from the date the individual 

becomes a candidate through the last 

day of the candidate’s eligibility as 

determined under 11 CFR 9033.5;

(2) Made in connection with his or her 

campaign for nomination; and

(3) Neither the incurrence nor 

payment of which constitutes a violation 

of any law of the United States or of any 

law of any State in which the expense is 

incurred or paid, or of any regulation 

prescribed under such law of the United 

States or of any State, except that any 

State law which has been preempted by 

the Federal Election Campaign Act of 

1971, as amended, will not be 

considered a State law for purposes of 

this subchapter.

(b) An expenditure is made on behalf 

of a candidate, including a Vice 

Presidential candidate, if it is made by—

(1) An authorized committee or any 

other agent of the candidate for 

purposes of making an expenditure;

(2) Any person authorized or 

requested by the candidate, an 

authorized committee of the candidate, 

or an agent of the candidate to make the 

expenditure; or

(3) A committee which has been 

requested by the candidate, by an 

authorized committee of the candidate, 

or by an agent of the candidate to make 

the expenditure, even though such 

committee is not authorized in writing.

(c) Expenditures incurred either 

before the date an individual becomes a

candidate or after the last day of a 

candidate’s eligibility will be considered 

qualified campaign expenses if they 

meet the provisions of 11 CFR 9034.4(a). 

Expenditures described under 11 CFR 

9034.4(b) will not be considered 

qualified campaign expenses.

§ 9032.10 Secretary.

For purposes of this subchapter, 

"Secretary” means the Secretary of the 

Treasury.

§9032.11 State.

“State” means each State of the 

United States, Puerto Rico, the Canal 

Zone, the Virgin Islands, the District of 

Columbia, and Guam.

PART 9033— ELIGIBILITY FOR

PAYMENT

Sec.

9033.1 Candidate and committee 

agreements.

9033.2 Candidate and committee 

certifications; threshold submission.

9033.3 Expenditure limitation certification.

9033.4 Matching payment eligibility 

threshold requirements.

9033.5 Determination of ineligibility date.

9033.6 Determination of inactive candidacy.

9033.7 Determination of active candidacy.

9033.8 Reestablishment of eligibility.

9033.9 Failure to comply with disclosure 

requirements of expenditure limitations.

9033.10 Procedures for initial and final 

determinations.

9033.11 Documentation of disbursements.

Authority: Pub. L 93-443, title IV, sec. 

408(c), 88 Stat. 1297, as amended by Pub. L 

94-283, title III, secs. 305(c) and 306(b)(2), 90 

Stat. 499-500 (26 U.S.C. 9033).

§ 9033.1 Candidate and committee

agreements.

(a) General. (1) A candidate seeking 

to become eligible to receive 

Presidential primary matching fund 

payments shall agree in a letter signed 

by the candidate to the Commission that 

the candidate and the candidate’s 

authorized committee(s) will comply 

with the conditions set forth in 

paragraph (b) of this section. The 

candidate may submit the letter 

containing the agreements required by 

this section at any time after January 1 

of the year immediately preceding the 

Presidential election year.

(2) The Commission will not consider 

a candidate’s threshold submission until 

the candidate has submitted a candidate 

agreement that meets the requirements 

of this section.

(b) Conditions. The candidate shall 

agree that:

(1) The candidate has the burden of 

proving that disbursements by the 

candidate or any authorized 

committee(8) or agents thereof are 

qualified campaign expenses as defined 

at 11 CFR 9032.9.

(2) The candidate and the candidate’s 

authorized committee(s) will comply 

with the documentation requirements 

set forth in 11 CFR 9033.11.

(3) The candidate and the candidate’s 

authorized committee(s) will provide an 

explanation, in addition to complying 

with the documentation requirements, of 

the connection between any 

disbursements made by the candidate or

authorized committee(s) of the 

candidate and the campaign if requested 

by the Commission.

(4) The candidate and the candidate’s 

authorizéd committee(s) will keep and 

furnish to the Commission all 

documentation for matching fund 

submissions, any books, records 

(including bank records for all accounts) 

and supporting documentation and other 

information that the Commission may 

request.

(5) The candidate and the candidate’s 

authorized committee(s) will keep and 

furnish to the Commission all 

documentation relating to 

disbursements and receipts including 

any books, records (including bank 

records for all accounts), all 

documentation required by this section 

including those required to be 

maintained under 11 CFR 9033.11, and 

other information that the Commission 

may request
5236 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

(6) The candidate and the candidate’s 

authorized committee(s) will permit an 

audit and examination pursuant to 11 

CFR Part 9038 of all receipts and 

disbursements including those made by 

the candidate, all authorized 

committee(s) and any agent or person 

authorized to make expenditures on 

behalf of the candidate or committee(s). 

The candidate and authorized 

committee(s) shall facilitate the audit by 

making available in one central location, 

office space, records and such personnel 

as are necessary to conduct the audit 

and examination, and shall pay any 

amounts required to be repaid under 11 

CFR Parts 9038 and 9039.

(7) The candidate and the candidate’s 

authorized committee(s) will submit the 

name and mailing address of the person 

who is entitled to receive matching fund 

payments on behalf of the candidate 

and the name and address of the 

national or State bank designated by die 

candidate as a campaign depository as 

required by 11 CFR Part 103 and 11 CFR 

9037.3.

(8) The candidate and the candidate’s 

authorized committee(s) will prepare 

matching fund submissions in 

accordance with the Federal Election 

Commission’s Guideline for Presentation 

in Good Order.

(9) The candidate and the candidate’s 

authorized committee(s) will comply 

with the applicable requirements of 2 

U.S.C. 431 et seq.; 26 U.S.C. 9031 et seq.

and the Commission’s regulations at 11 

CFR Parts 100-115, and 9031-9039.

(10) The candidate and the 

candidate’s authorized committee(s) will 

pay any civil penalties included in a 

conciliation agreement imposed under 2 

U.S.C. 437g against the candidate, any 

authorized committee of the candidate 

or any agent thereof.

§ 9033.2 Candidate and committee

certifications; threshold submission.

(a) General. (1) A candidate seeking 

to become eligible to receive 

Presidential primary matching fund 

payments shall make the certifications 

set forth in paragraph (b) of this section 

to the Commission in a written 

statement signed by the candidate. The 

candidate may submit the letter 

containing the required certifications at 

any time after January 1 of the year 

immediately preceding the Presidential 

election year.

(2) The Commission will not consider 

a candidate’s threshold submission until 

the candidate has submitted candidate 

certifications that meet the requirements 

of this section.

(b) Certifications. (1) The candidate 

shall certify that he or she is seeking 

nomination by a political party to the

Office of President in more than one 

State. For purposes of this section, in 

order for a candidate to be deemed to be 

seeking nomination by a political party 

to die office of President, the party 

whose nomination the candidate seeks 

must have a procedure for holding a 

primary election, as defined in 11 CFR 

9032.7, for nomination to that office. For 

purposes of this section, the term 

“political party** means an association, 

committee or organization which 

nominates an individual for election to 

the office of President The fact that an 

association, committee or organization 

qualifies as a political party under this 

section does not affect the party’s status 

as a national political party for purposes 

of 2 U.S.C. 441a(a](l)(B) and 

441a(a)(2)(B).

(2) The candidate and the candidate’s 

authorized committee(s) shall certify 

that they have not incurred and will not 

incur expenditures in connection with 

the candidate’s campaign for 

nomination, which expenditures are in 

excess of die limitations under 11 CFR 

Part 9035.

(3) The candidate and the candidate’s 

authorized committee(s) shall certify:

(i) That they have received matchable 

contributions totalling more than $5,000 

in each of at least 20 States; and

(ii) That the matchable contributions 

are from individuals who are residents 

of the State for which their contributions 

are submitted.

(iii) A maximum of $250 of each 

individual’s aggrejgate contributions will 

be considered as matchable 

contributions for the purpose of meeting 

the thresholds of this section.

(iv) For purposes of this section, 

contributions of an individual who 

maintains residences in more than one 

State may only be counted toward the 

$5,000 threshold for the State from 

which the earliest contribution was 

made by that contributor.

(c) Threshold Submission. To become . 

eligible to receive matching payments, 

the candidate shall submit 

documentation of the contributions 

described in 11 CFR paragraph (b)(3) of 

this section to the Commission for 

review. The submission shall follow the 

format and requirements of 11 CFR

9036.1.

§ 9033.3 Expenditure limitation

certification.

(a) If the Commission makes an initial 

determination that a candidate or the 

candidate’s authorized committee(s) 

have knowingly and substantially 

exceeded the expenditure limitations at 

11 CFR Part 9035 prior to that 

candidate’s application for certification, 

the Commission may make an initial

determination that the candidate is 

ineligible to receive matching funds.

(b) The Commission will notify the 

candidate of its initial determination, in 

accordance with the procedures outlined 

in 11 CFR 9033.10(b). The candidate may 

submit, within 20 calendar days after 

receipt of the Commission’s notice, 

written legal or factual materials, in 

accordance with 11 CFR 9033.10(b), 

demonstrating that he or she has not 

knowingly and substantially exceeded 

the expenditure limitations at 11 CFR 

Part 9035.

(c) A final determination of the 

candidate’s ineligibility will be made by 

the Commission in accordance with the 

procedures outlined in 11 CFR 

9033.10(c).

(d) A candidate who receives a final 

determination of ineligibility under 

paragraph (c) of this section shall be 

ineligible to receive matching fund 

payments under 11 CFR 9034.1.

§ 9033.4 Matching payment eligibility

threshold requirements.

The Commission will, as soon as 

practicable and, during the Presidential 

election year generally within 15 

business days, examine the submission 

made under 11 CFR 9033.1 and 9033.2 

and either—

(a) Make a determination that the 

candidate has satisfied the minimum 

contribution threshold requirements 

under 11 CFR 9033.2(c); or

(b) Make an initial determination that 

the candidate has failed to satisfy the 

matching payment threshold 

requirements. The Commission will 

notify the candidate of its initial 

determination in accordance with the 

procedures outlined in 11 CFR 

9033.10(b). The candidate may, within 30 

calendar days after receipt of the 

Commission’s notice, satisfy the 

threshold requirements or submit in 

accordance with 11 CFR 9033.10(b) 

written legal or factual materials to 

demonstrate that he or she has satisfied 

those requirements. A final 

determination by the Commission that 

the candidate has failed to satisfy 

threshold requirements will be made in 

accordance with the procedures outlined 

in 11 CFR 9033.10(c).

§ 9033.5 Determination of ineligibility date.

Thé candidate’s date of ineligibility 

shall be whichever date by operation of 

paragraph (a), (b) or (c) of this section 

occurs first. After the candidate’s date 

of ineligibility, he or she may only 

receive matching payments to the extent 

that he or she has net outstanding 

campaign obligations as defined in 11 

CFR 9034.5
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5237

(a) Inactive Candidate. The 

ineligibility date shall be the day on 

which an individual ceases to be a 

candidate because he or she is not 

actively conducting campaigns in more 

than one State in connection with 

seeking the Presidential nomination. 

This date shall be the earliest of—

(1) The date the candidate publicly 

announces that he or she will not be 

actively conducting campaigns in more 

than one State; or

(2) The date the candidate notifies the 

Commission by letter that he or she is 

not actively conducting campaigns in 

more than one State; or

(3) The date which the Commission 

determines under 11 CFR 9033.6 to be 

the date that the candidate is not 

actively seeking election in more than 

one State.

(b) Insufficient Votes. The ineligibility 

date shall be the 30th day following the 

date of the second consecutive primary 

election in which such individual 

receives less than 10 percent of the 

number of popular votes cast for all 

candidates of the same party for the 

same office in that primary election, if 

the candidate permitted or authorized 

his or her name to appear on the ballot, 

unless the candidate certifies to the 

Commission at least 25 business days 

prior to the primary that he or she will 

not be an active candidate in the 

primary involved.

(1) The Commission may refuse to 

accept the candidate's certification if it 

determines under 11 CFR 9033.7 that the 

candidate is an active candidate in the 

primary involved.

(2) For proposes of this paragraph, if 

the candidate is running in two primary 

elections in different States on die same 

date, the highest percentage of votes the 

candidate receives in any one State will 

govern. Separate primary elections held 

in more than one State on the same date 

are not deemed to be consecutive 

primaries. If two primary elections are 

held on the same date in the same State 

(e.g., a primary to select (telegates to a 

national nominating convention and a 

primary for the expression of preference 

for the nomination of candidates for 

election to the office of President), the 

highest percentage of votes a candidate 

receives in either election will govern. If 

two or more primaries are held in the 

same State on different dates, the 

earliest primary will govern.

(c) End o f Matching Payment Period.

The ineligibility date shall be the last 

day of the matching payment period for 

the candidate as specified in 11 CFR

9032.6

(d) Reestablishment o f Eligibility. If 

the Commission has determined that a 

candidate is ineligible under paragraph

(a) or (b) of this section, the candidate 

may reestablish eligibility to receive 

matching funds under 11 CFR 9033.8.

§ 9033.6 Determination ot Inactive

candidacy.

(a) General. The Commission may, on 

the basis of the factors listed in 

paragraph (b) of this section, make a 

determination that a candidate is no 

longer actively seeking nomination for 

election in more than one State at any 

time after March 1 but before July 1 of 

the Presidential election year. Upon a 

final determination by the Commission 

that a candidate is inactive, that 

candidate will become ineligible as 

provided in 11 CFR 9033.5.

(b) Factors Considered In making its 

determination of inactive candidacy, the 

Commission may consider, but is not 

limited to considering, the following 

factors:

(1) The frequency and type of public 

appearances, speeches, and 

advertisements;

(2) Campaign activity with respect to 

soliciting contributions or making 

expenditures for campaign purposes;

(3) Continued employment of 

campaign personnel or the use of 

volunteers;

(4) The release of committed 

delegates;

(5) The candidate urges his or her 

delegates to support another candidate 

while not actually releasing committed 

delegates;

(6) The candidate urges supporters to 

support another candidate.

(c) Initial Determination. The 

Commission will notify the candidate of 

its initial determination in accordance 

with the procedures outlined in 11 CFR 

9033.10(b) and will advise the candidate 

of the date on which active campaigning 

in more than one State ceased. The 

candidate may, within 15 business days 

of receipt of the Commission’s notice, 

submit in accordance with 11 CFR 

9033.10(b) written legal or factual 

materials to demonstrate that he or she 

is actively campaigning in more than 

one State.

(d) Final Determination. A final 

determination of inactive candidacy will 

be made by the Commission in 

accordance with the procedures outlined 

in 11 CFR 9033.10(c).

§ 9033.7 Determination of active

candidacy.

(a) Where a candidate certifies to the 

Commission under 11 CFR 9033.5(b) that 

he or she will not be an active candidate 

in an upcoming primary, the 

Commission may, nevertheless, on the 

basis of factors listed in 11 CFR 

9033.6(b), make an initial determination

that the candidate is an active candidate 

in the primary involved.

(b) The Commission will notify the 

candidate of its initial determination 

within 10 business days of receiving the 

candidate’s certification under 11 CFR 

9033.5(b). The Commission’s initial 

determination will be made in 

accordance with the procedures outlined 

in 11 CFR 9033.10(b). Within 10 business 

days of receipt of the Commission’s 

notice the candidate may submit, in 

accordance with 11 CFR 9033.10(b), 

written legal or factual materials to 

demonstrate that he or she is not an 

active candidate in the primary 

involved.

(c) A final determination by the 

Commission that the candidate is active 

will be made in accordance with the 

procedures outlined in 11 CFR 

9033.10(c).

§ 9033.8 Reestablishment of eOglbUity.

(a) Candidates Found to be Inactive.

A candidate who has become ineligible 

under 11 CFR 9033.5(a) cm the basis that 

he or she is not actively campaigning in 

more than one State may reestablish 

eligibility for matching payments by 

submitting to the Commission evidence 

of active campaigning in more than one 

State. In determining whether the 

candidate has reestablished eligibility, 

the Commission will consider, but is not 

limited to considering, the factors listed 

in 11 CFR 9033.6(b). The day the 

Commission determines to be the day 

the candidate becomes active again will 

be the date on which eligibility is 

reestablished.

(b) Candidates Receiving Insufficient

Votes. A candidate determined to be 

ineligible under 11 CFR 9033.5(b) by 

failing to obtain the required percentage 

of votes in two consecutive primaries 

may have his or her eligibility 

reestablished if the candidate receives 

at least 20 percent of the total number of 

votes cast for candidates of the same 

party for die same office in a primary 

election held subsequent to the date of 

the election which rendered the 

candidate ineligible.

(c) The Commission will make its 

determination under paragraphs (a) or

(b) of this section without requiring the 

individual to reestablish eligibility under 

11 CFR 9033.1 and 2. A candidate whose 

eligibility is reestablished under this 

section may submit, for matching 

payment, contributions received during 

ineligibility.

§ 9033.9 Failure to comply with disclosure

requirements of expenditure limitations.

(a) If the Commission receives 

information indicating that a candidate
5238 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

or his or her authorized committee(s) 

has knowingly and substantially failed 

to comply with the disclosure 

requirements of 2 U.S.C 434 and 1 1 CFR 

Part 104, or that a candidate has 

knowingly and substantially exceeded 

the expenditure limitations at 11 CFR 

Part 9035, the Commission may make an 

initial determination to suspend 

payments to that candidate.

(b) The Commission will notify the 

candidate of its initial determination in 

accordance with the procedures outlined 

in 11 CFR 9033.10(b). The candidate will 

be given an opportunity, within 20 

calendar days of the Commission’s 

notice, to comply with the above Cited 

provisions or to submit in accordance 

with 11 CFR 9033.10(b) written legal or 

factual materials to demonstrate that he 

or she is not in violation of those 

provisions.

(c) Suspension of payments to a 

candidate will occur upon a final 

determination by the Commission to 

suspend payments. Such final 

determination will be made in 

accordance with the procedures outlined 

in 11 CFR 9033.10(c).

(d) (1) A candidate whose payments 

have been suspended for failure to 

comply with reporting requirements may 

become entitled to receive payments if 

he or she subsequently files the required 

reports and pays or agrees to pay any 

civil or criminal penalties resulting from 

failure to comply.

(2) A candidate whose payments are 

suspended for exceeding the 

expenditure limitations shall not be 

entitled to receive further matching 

payments under 11 CFR 9034.1.

§ 9033.10 Procedures for initial and final

determinations.

(a) General. The Commission will 

follow the procedures set forth in this 

section when making an initial or final 

determination based on any of the 

following reasons.

(1) The candidate has knowingly and 

substantially exceeded the expenditure 

limitations of 11 CFR Part 9035 prior to 

the candidate’s application for 

certification, as provided in 11 CFR 

9033.3;

(2) The candidate has failed to satisfy 

the matching payment threshold 

requirements, as provided in 11 CFR 

9033.4;

(3) The candidate is no longer actively 

seeking nomination in more than one 

3tate, as provided in 11 CFR 9033.6;

(4) The candidate is an active 

candidate in an upcoming primary 

despite the candidate’s assertion to the 

contrary, as provided in 11 CFR 9033.7; 

or

(5) The Commission receives 

information indicating that the 

candidate has knowingly and 

substantially failed to comply with the 

disclosure requirements or exceeded the 

expenditure limits, as provided in 11 

CFR 9033.9.

(b) Initial Determination. If the

Commission makes an initial 

determination that a candidate may not 

receive matching funds for one or more 

of the reasons indicated in paragraph (a) 

of this section, the Commission will 

notify the candidate of its initial 

determination. The notification will give 

the legal and factual reasons for the 

determination and advise the candidate 

of the evidence on which the 

Commission's initial determination is 

based. The candidate will be given an 

opportunity to comply with the 

requirements at issue or to submit, 

within the time provided by the relevant 

section as referred to in paragraph (a) of 

this section, written legal or factual 

materials to demonstrate that the N

candidate has satisfied those 

requirements. Such materials may be 

submitted by counsel if the candidate so 

desires.

(c) Final Determination. The 

Commission will consider any written 

legal or factual materials timely 

submitted by the candidate before 

making its final determination. A final 

determination that the candidate has 

failed to satisfy the requirements at 

issue will be accompanied by a written 

statement of reasons for the 

Commission’s action. This statement 

will explain the legal and factual 

reasons underlying the Commission’s 

determination and will summarize the 

results of any investigation upon which 

the determination is based. ,

(d) Effect on Other Determinations. If 

the Commission makes an initial 

determination under this section, but 

decides to take no further action at that 

time, the Commission may use the legal 

and factual bases on which the initial 

determination was based in any future 

repayment determination under 11 CFR 

Part 9038 or 9039. A determination by 

the Commission under this section may 

be independent of any Commission 

decision to institute an enforcement 

proceeding under 2 U.S.C. 437g.

§ 9033.11 Documentation of

disbursements.

(a) Burden o f Proof. Each candidate 

shall have the burden of proving that 

disbursements made'by the candidate or 

his or her authorized committee(s) or 

persons authorized to make 

expenditures on behalf of the candidate 

or committee(s) are qualified campaign 

expenses as defined in 11 CFR 9032.9.

The candidate and his or her authorized 

committee(s) shall obtain and furnish to 

the Commission on request any 

evidence regarding qualified campaign 

expenses made by the candidate, his or 

her authorized committees and agents or 

persons authorized to make 

expenditures on behalf of the candidate 

or committee(8) as provided in 

paragraph (b) of this section.

(b) Documentation Required

(1) For disbursements in excess of 

$200 to a payee, the candidate shall 

present either:

ii) A receipted bill from the payee that 

states the purpose of the disbursement, 

or

(ii) If such a receipt is not available, a 

cancelled check negotiated by the 

payee, and

(A) One of the following documents 

generated by the payee: a bill, invoice, 

or voucher that states the purpose of the 

disbursement; or

(B) Where the documents specified in 

paragraph (b)(l)(ii)(A) of this section are 

not available, a voucher or 

contemporaneous memorandum from 

the candidate or the committee that 

states the purpose of the disbursement; 

or

(iii) If neither a receipted bill as 

specified in paragraph (b)(l)(i) of this 

section nor the supporting 

documentation specified in 11 CFR 

paragraph (b)(l)(ii) of this section is 

available, a cancelled check negotiated 

by the payee that states the purpose of 

the disbursement

(iv) Where the supporting 

documentation required in paragraph

(b)(1) (i), (ii) or (iii) of this section is not 

available, the candidate or committee 

may present a cancelled check and 

collateral evidence to document the 

qualified campaign expense. Such 

collateral evidence may include but is 

not limited to:

(A) Evidence demonstrating that the 

expenditure is part of an identifiable 

program or project which is otherwise 

sufficiently documented such as a 

disbursement which is one of a number 

of documented disbursements relating to 

a campaign mailing or to the operation 

of a campaign office;

(B) Evidence that the disbursement is 

covered by a preestablished written 

campaign committee policy, such as a 

per diem policy.

(2) For all other disbursements the 

candidate shall present:

(i) A record disclosing the 

identification of the payee, the amount, 

date and purpose of the disbursement, if 

made from a petty cash fund; or

(ii) A cancelled check negotiated by 

the payee that states the identification
Federal Register / Vol 48, No. 25 / Friday, February 4, 1963 / Rules and Regulations 5239

of the payee, and the amount, date and 

purpose of the disbursement.

(3) For purposes of this section,

(i) “Payee” means the person who 

provides the goods or services to the 

candidate or committee in return for the 

disbursement; except that an individual 

will be considered a payee under this 

section if he or she receives $500 or less

. advanced for travel and/or subsistence 

and if he or she is the recipient of the 

goods or Services purchased.

(ii) “Purpose” means the identification 

of the payee, the date and amount of the 

disbursement, and a description of the 

goods or services purchased.

(c) Retention o f Records. The 

candidate shall retain records, with 

respect to each disbursement and 

receipt, including bank records, 

vouchers, worksheets, receipts, bills and 

accounts, journals, ledgers, fundraising 

solicitation material, accounting systems 

documentation, matching fund 

submissions, and any related materials 

documenting campaign receipts and 

disbursements, for a period of three 

years pursuant to 11 CFR 102.9(c), and 

shall present these records to the 

Commission on request.

PART 9034— ENTITLEMENTS

Sec.

9034.1 Candidate entitlements.

9034.2 Matchable contributions.

9034.3 Non-matchable contributions.

9034.4 Use of contributions and matching 

payments.

9034.5 Net outstanding campaign 

obligations.

9034.8 Reimbursements for transportation 

and services made available to media 

personnel.

9034.7 Allocation of travel expenditures.

9034.8 Joint fundraising.

9034.9 Sale of assets acquired for 

fundraising purposes.

Authority: Pub. L. 93-443, title IV, Sec. 408 

(c), 88 S ta t 1299, as amended by Pub. L. 94- 

283, title HI, sec. 307 (b), 90 S ta t 501 (26 

U.S.C. 9034).

§ 9034.1 Candidate entitlements.

(a) A candidate who has been notified 

by the Commission under 11 CFR 8036.1 

that he or she has successfully satisfied 

eligibility and certification requirements 

is entitled to receive payments in an 

amount equal to the amount of each 

matchable campaign contribution 

received by the candidate, except that a 

candidate who has become ineligible 

under 11 CFR 9033.5 may not receive 

further matching payments regardless of 

the date of deposit of the underlying 

contributions if he or she has no net 

outstanding campaign obligations as 

defined in 11 CFR 9034.5.

(b) If on the date of ineligibility a 

candidate has net outstanding cam paign

obligations as defined under I f CFR

9034.5, that candidate may continue to 

receive matching payments for 

matchable contributions received and 

deposited on or before December 31 of 

the Presidential election year provided 

that on the date of payment there are 

remaining net outstanding campaign 

obligations, i.e., the sum of the 

contributions received on or after the 

date of ineligibility plus matching funds 

received on or after the date of 

ineligibility is less than the candidate’s 

net outstanding campaign obligations. 

This entitlement will be equal to the 

lesser of:

(1) The amount of contributions 

submitted for matching; or

(2) The remaining net outstanding 

campaign obligations.

(c) A candidate whose eligibility has 

been reestablished under 11 CFR 9033.8 

or who after suspension of payments 

has met the conditions set forth at 11 

CFR 9033.9(d) is entitled to receive 

payments for matchable contributions 

for which payments were not received 

during the ineligibility or suspension 

period.

(d) Hie total amount of payments to a 

candidate under this section shall not 

exceed 50% of the total expenditure 

limitation applicable under 11 CFR Part 

9035.

§ 9034.2 Matchable contributions.

(a) Contributions meeting the 

following requirements will be 

considered matchable cam paign 

contributions.

(1) The contribution shall be a gift of 

money made: by an individual; by a 

written instrument and for the purpose 

of influencing the result of a primary 

election.

(2) Only a maximum of $250 of the 

aggregate amount contributed by an 

individual may be matched.

(3) Before a contribution may be 

submitted for matching, it must actually 

be received by the candidate or any of 

the candidate’s authorized committees 

and deposited in a designated cam paign 

depository maintained by the 

candidate’s authorized committee.

(4) The written instrument used in 

making the contribution must be dated, 

physically received and deposited by 

the candidate or authorized committee 

on or after January 1 of the year 

immediately preceding the calendar 

year of the Presidential election, but no 

later than December 31 following the 

matching payment period as defined 

under 11 CFR 9032.6. Donations received 

by an individual who is testing the 

waters pursuant to 11 CFR 100.7(b)(1) 

and 100.8(b)(1) may be matched when 

the individual becomes a candidate if

such donations meet the requirements of 

this section.

(b) For purposes of this section, the 

term “written instrument” means a 

check written on a personal, escrow or 

trust account representing or containing 

the contributor’s personal funds; a 

money order; or any similar negotiable 

instrument

(c) The written instrument shall be: 

payable on demand; and to the order of, 

or specifically endorsed without 

qualification to, the Presidential 

candidate, or his or her authorized 

committee. The written instrument shall 

contain: the full name and signature of 

the contributors); the amount and date 

of the contribution; and the mailing 

address of the contributor(s).

(1) In cases of a check drawn on a 

joint checking account, the contributor is 

considered to be the owner whose 

signature appears on the check.

(1) To be attributed equally to other 

joint tenants of the account, the check or 

other accompanying written document 

shall contain the signature(s) of the joint 

tenant(s). If a contribution on a joint 

account is to be attributed other than 

equally to the joint tenants, the check or 

other written documentation sha ll 

indicate the amount to be attributed to 

each joint tenant

(ii) In the case of a check for a 

contribution attributed to more than one 

person, where it is not apparent from the 

face of the check that each contributor is 

a joint tenant of the account a written 

statement shall accompany the check 

stating that the contribution was made 

from each individual's personal funds in 

the amount so attributed and shall be 

signed by each contributor.

(2) Contributions in the form of checks 

drawn on an escrow or trust account are 

matchable contributions, provided that:

(i) The contributor has equitable 

ownership of the account; and

(ii) The check is accompanied by a

statement, signed by each contributor to 

whom all or a portion of the contribution 

is being attributed, together with the 

check number, amount and date of 

contribution. This statement shall 

specify that: the contributor has 

equitable ownership of the account and 

the account represents the personal 

funds of the contributor.

(3) Contributions in the form of checks 

written on partnership accounts or 

accounts of unincorporated associations 

or businesses are matchable 

contributions, so long as:

(i) The check is accompanied by a 

statement, signed by each contributor to 

whom all or a portion of the contribution 

is being attributed, together with the 

check number, amount and date of
5240 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

contribution. This statement shall 

specify that the contribution is made 

with the contributor’s personal funds 

and that the account on which the 

contribution is drawn is not maintained 

or controlled by an incorporated entity; 

and

(ii) The aggregate amount of the 

contributions drawn on a partnership or 

unincorporated association or business 

does not exceed $1,000 to any one 

Presidential candidate seeking 

nomination.

(4) Contributions in the form of money 

orders, cashier’s checks or other similar 

negotiable instruments are matchable 

contributions, provided that:

(i) At the time it is initially submitted 

for matching, such instrument is signed 

by each contributor and is accompanied 

by a statement which specifies that the 

contribution was made in the form of a 

money order, cashier’s check, or other 

similar negotiable instrument, with the 

contributor’s personal funds;

(ii) Such statement identifies the date 

and amount of the contribution made by 

money order, cashier’s check or other 

similar negotiable instrument and the 

check or serial number; and

(iii) Such statement is signed by each 

contributor.

(5) Contributions in the form of the 

purchase price paid for the admission to 

any activity that primarily confers 

private benefits in the form of 

entertainment to the contributor (i.e., 

concerts, motion pictures) are 

matchable. The promotional material 

and tickets for the event shall clearly 

indicate that the ticket purchase price 

represents a contribution to the 

Presidential candidate.

(6) Contributions in the form of a 

purchase price paid for admission to an 

activity that is essentially political are 

matchable. An “essentially political’* 

activity is one the principal purpose of 

which is political speech or discussion, 

such as the traditional political dinner or 

reception.

(7) Contributions received from a joint 

fundraising activity conducted in 

accordance with 11 CFR 9034.8 are 

matchable, provided that such 

contributions are accompanied by a 

copy of the joint fundraising agreement 

when they are submitted for matching.

§ 9034.3 Non-matchable contributions.

A contribution to a candidate other 

than one which meets the requirements 

of 11 CFR 9034.2 is not matchable. 

Contributions which are not matchable 

include, for example:

(a) In-kind contributions of real or 

personal property;

(b) A subscription, loan, advance, or 

deposit of money, or anything of value;

(c) A contract, promise, or agreement, 

whether or not legally enforceable, such 

as a pledge card or credit card 

transaction, to make a contribution for 

any such purposes (but a gift of money 

by written instrument is not rendered 

unmatchable solely because the 

contribution was preceded by a promise 

or pledge);

(d) Funds from a corporation, labor 

organization, government contractor, 

political committee as defined in 11 CFR

100.5 or any group of persons other than 

those under 11 CFR 9034.2(c)(3);

(e) Contributions which are made or 

accepted in violation of 2 U.S.C. 441a, 

441b, 441c, 441e, 441f, or 441g;

(f) Contributions in the form of a 

check drawn on the account of a 

committee, corporation, union or 

government contractor even though the 

funds represent personal funds 

earmarked by a contributing individual 

to a Presidential candidate;

(g) Contributions in the form of the 

purchase price paid for an item with 

significant intrinsic and enduring value, 

such as a watch;

(h) Contributions in the form of the 

purchase price paid for or otherwise 

induced by a chance to participate in a 

raffle, lottery, or a similar drawing for 

valuable prizes;

(i) Contributions which are¿made by. 

persons without the necessary donative 

intent to make a gift or made for any 

purpose other than to influence the 

result of a primary election; and

(j) Contributions of currency of the 

United States or currency of any foreign 

country.

§ 9034.4 Use of contributions and

matching payments. ^

(a) Qualified Campaign Expenses.—

(1) General. Except as provided in 

paragraph (b)(3) of this section, all 

contributions received by an individual 

from the date he or she becomes a 

candidate and all matching payments 

received by the candidate shall be used 

only to defray qualified campaign 

expenses or to repay loans or otherwise 

restore funds (other than contributions 

which were received and expended to 

defray qualified campaign expenses), 

which were used to defray qualified 

campaign expenses.

(2) Testing the Waters. Even though 

incurred prior to the date an individual 

becomes a candidate, payments made 

for the purpose of determining whether 

an individual should become a 

candidate, such as those incurred in 

conducting a poll, shall be considered 

qualified campaign expenses if the 

individual subsequently becomes a 

candidate and shall count against that

candidate’s limits under 2 U.S.C.

441a(b). See 11 CFR 100.8(b)(1).

(3) Winding Down Costs. The 

following costs shall be considered 

qualified campaign expenses:

(1) Costs associated with the 

termination of political activity, such as 

the costs of complying with the postelection requirements of the Act and 

other necessary administrative costs 

associated with winding down the 

campaign, including office space rental, 

staff salaries and office supplies; or

(ii) Costs incurred before the - 

candidate’s date of ineligibility, for 

which written arrangement or 

commitment was made on or before the 

candidate’s date of ineligibility.

(b) Non-Qualified Campaign

Expenses.—(1) General. The following 

are examples of disbursements that are 

not qualified campaign expenses.

(2) Excessive Expenditures. An 

expenditure which is in excess of any of 

the limitations under 11 CFR Part 9035 

shall not be considered a qualified 

campaign expense.

(3) Post-Ineligibility Expenditures.

Any expenses incurred after a 

candidate’s date of ineligibility, as 

determined under 11 CFR 9033.5rare not 

qualified campaign expenses except to 

tiie extent permitted under paragraph

(a)(3) of this 'section.

(4) Civil or Criminal Penalties. Civil 

or criminal penalties paid pursuant to 

the Federal Election Campaign Act are 

not qualified campaign expenses and 

cannot be defrayed from contributions 

or matching payments. Any amounts 

received or expended to pay such 

penalties shall not be considered 

contributions or expenditures but all 

amounts so received shall be subject to 

the prohibitions of the Act. Amounts 

received and expended under this 

section shall be reported in accordance 

with 11 CFR Part 104.

(c) Transfers to Other Campaigns. If a 

candidate has received matching funds 

and is simultaneously seeking 

nomination or election to another 

Federal office, no transfer of funds 

between his or her principal campaign 

committees or authorized contmittees 

may be made. See 2 U.S.C. 441a(a)(5)(C) 

and 11 CFR 110.3(a)(2)(v).

§ 9034.5 Net outstanding campaign

obligations. -

(a) Within 15 calendar days after the 

candidate’s date of ineligibility, as 

determined under 11 CFR 9033.5, the 

candidate shall submit a statement of 

net outstanding campaign obligations. 

The candidate’s net outstanding 

campaign obligations under this section
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5241

equal the difference between 

paragraphs (a) (1) and (2) of this section:

(1) The total of all outstanding 

obligations for qualified campaign 

expenses as of die candidate’s date of 

ineligibility as determined under 1 1 CFR

9033.5, plus estimated necessary 

winding down costs as defined under 11 

CFR 9034.4(a)(3), less

(2) The total of:

(1) Cash on hand as of the close of 

business on the last day of eligibility 

(including all contributions dated on or 

before that date whether or not 

submitted for matching);

(ii) The fair market value of capital 

assets and other assets on hand; and

(iii) Amounts owed to the campaign in 

the form of credits, refunds of deposits, 

returns receivables, or rebates of 

qualified campaign expenses; or a 

commercially reasonable amount based 

on the collectibility of those credits, 

returns, receivables or rebates.

(b) (1) Capital Assets. For purposes of 

this section, the term “capital asset” 

means any property used in the 

operation of the campaign whose value 

on the last day of the candidate’s 

eligibility exceeds $500. Property that 

must be valued as capital assets under 

this section includes, but is not limited 

to, office equipment, furniture, vehicles, 

and fixtures acquired for use in the 

operation of the candidate’s campaign, 

but does not include property defined as 

“other assets” under paragraph (b)(2) of 

this section. The value of a capital asset 

shall be the fair market value on the 

date of ineligibility or on the date the 

item is acquired if acquired after the 

date of ineligibility.

(2) Other Assets. The term "other 

assets” means any property acquired by 

the campaign for use in raising funds or 

as collateral for campaign loans. “Other 

assets” must be included on the 

candidate’s statement of net outstanding 

campaign obligations if die aggregate 

value of such assets exceeds $5,000. The 

value of “other assets” shall be 

determined by the fair market value of 

each item on the candidate’s date of 

ineligibility or on the date the item is 

acquired if acquired after the date of 

ineligibility.

(c) Contributions received from joint 

fundraising activities conducted under 

11 CFR 9034.8 may be used to pay a 

candidate’s outstanding campaign 

obligations.

(1) Such contributions shall be 

deemed monies available to pay 

outstanding campaign obligations as of 

the date these funds'are received by the 

fundraising representative committee 

and shall be included in the candidate’s 

statement of net outstanding campaign 

obligations.

(2) The amount of money deemed 

available to pay a candidate’s net 

outstanding campaign obligations will 

equal either—

(1) An amount calculated on the basis 

of the predetermined allocation formula, 

as adjusted for 2 U.S.C. 441a limitations; 

or

(ii) If a candidate receives an amount 

greater than that calculated under 

paragraph (c)(2)(i) of this section, the 

amount actually received.

(d) The candidate shall submit a 

revised statement of net outstanding . 

campaign obligations with each 

submission for matching funds 

payments filed after the candidate’s 

date of ineligibility. The revised 

statement shall reflect the financial 

status of the campaign as of the close of 

business on the last business day 

preceding the date of submission for 

matching funds.

(e) (1) f i t the Commission receives 

information indicating that substantial 

assets of the candidate’s authorized 

committee(s) have been undervalued or 

not included in the statement or that the 

amount of outstanding campaign 

obligations has been otherwise 

overstated in relation to campaign 

assets, the Commission may decide to 

temporarily suspend further matching 

payments pending a final determination 

whether the candidate is entitled to 

receive all or a portion of the matching 

funds requested.

(2) In making a determination under 

paragraph (e)(1) of this section, the 

Commission will follow the procedures 

for initial and final determinations 

under 11 CFR 9033.10 (b) and (c). The 

Commission will notify the candidate of 

its business days after receipt of the 

candidate’s statement of net outstanding 

campaign obligations. Within 10 

business days after receipt of the 

Commission’s notice, die candidate may 

submit written legal or factual materials 

to demonstrate that he or she has net 

outstanding campaign obligations that 

entitle the campaign to further matching 

payments.

(3) If the candidate demonstrates that 

the amount of outstanding campaign 

obligations still exceeds campaign 

assets, he or she may continue to 

receive matching payments.

§ 9034.6 Reimbursements for

transportation and services made available

to media personnel.

(a) If an authorized committee incurs 

expenditures for transportation, ground 

services and facilities (including air 

travel, ground transportation, housing, 

meals, telephone service, and 

typewriters) made available to media 

personnel, such expenditures will be

considered qualified campaign expenses 

subject to the overall expenditure 

limitations of 11 CFR 9035.1(a).

(b) If reimbursement for such 

expenditures is received by a 

committee, the amount of such 

reimbursement for each individual shall 

not exceed either: the individual’s pro 

rata share of the actual cost of die 

transportation and services made 

available; or a reasonable estimate of 

the individual’s pro rata shafe of the 

actual cost of the transportation and 

services made available. An individual’s 

pro rata share shall be calculated by 

dividing the total number of individuals 

to whom such transportation and 

services are made available into the 

total cost of the transportation and 

services. The total amount of 

reimbursements received from an 

individual under this section shall not 

exceed the actual pro rata cost of the 

transportation and services made 

available to that person by more than 

10%. Reimbursements received in 

compliance with the requirements of this 

section may be deducted from the 

amount of expenditures that are subject 

to the overall expenditure limitation of 

11 CFR 9035.1(a) except to the extent 

that such reimbursements exceed the 

amount actually paid by the committee 

for the services provided.

(c) The total amount paid by an 

authorized committee for the cost of 

transportation or for ground services 

and facilities shall be reported as an 

expenditure in accordance with 11 CFR 

104.3(b)(2)(i). Any reimbursement 

received by such committee for 

transportation or ground services and 

facilities shall be reported in accordance 

with 11 CFR 104.3(a)(3)(ix).

§ 9034.7 Allocation of travel expenditures.

(a) Notwithstanding the provisions of 

11 CFR Part 106, expenditures for travel 

relating to the campaign of a candidate 

seeking nomination for election to the 

office of President by any individual, 

including a candidate, shall, pursuant to 

the provisions of paragraph (b) of this 

section, be qualified campaign expenses 

and be reported by the candidate’s 

authorized committee(s) as 

expenditures.

(b) (1) For a trip which is entirely 

campaign-related, the total cost of the 

trip shall be a qualified campaign 

expense and a reportable expenditure.

(2) For a trip which includes 

campaign-related and non-campaign 

related stops, that portion of the cost of 

the trip allocable to campaign activity 

shall be a qualified campaign expense 

and a reportable expenditure. Such 

portion shall be determined by
5242 Federal Register / Vol.

calculating what the trip would have 

cost from the point of origin of the trip to 

the first campaign-related stop and from 

that stop through each subsequent 

campaign-related stop, back to the point 

of origin. If any campaign activity, other 

than incidental contacts, is conducted at 

a stop, that stop shall be considered 

campaign-Telated.

(3) For each trip, an itinerary shall be 

prepared and such itinerary shall be 

made available for Commission 

inspection. --

(4) For trips by government 

conveyance or by charter, a list of all 

passengers on such trip, along with a 

designation of which passengers are and 

which are not campaign-related, shall be 

made available for Commission 

inspection.

(5) If any individual, including a 

candidate, uses government conveyance 

or accommodations paid for by a 

government entity for campaign-related 

travel, the candidate’s authorized 

committee shall pay the appropriate 

government entity an amount equal to:

(i) The first class commercial air fare 

plus the cost of other services, in the 

case of travel to a city served by a 

regularly scheduled commercial service; 

or

(ii) The commercial charter rate plus 

the cost of other services, in the case of 

travel to a city not served by a regularly 

scheduled commercial service.

(6) Travel expenses of a candidate’s 

spouse and family when accompanying 

the candidate on campaign-related 

travel may be treated as qualified 

campaign expenses and reportable 

expenditures. If the spouse or family 

members conduct campaign-related 

activities, their travel expenses will be 

treated as qualified campaign expenses 

and reportable expenditures.

(7) If any individual, including a 

candidate, incurs expenses for 

campaign-related travel, other than by 

use of government conveyance or 

accommodations, an amount equal to 

that portion of the actual cost of the 

conveyance or accommodations which 

is allocable to all passengers, including 

the candidate, travelling for campaign 

purposes will be a qualified campaign 

expense and shall be reported by the 

committee as an expenditure.

(i) If the trip is by charter, the actual 

cost for each passenger shall be 

determined by dividing the total 

operating cost for the charter by the 

total number of passengers transported. 

The amount which is a qualified 

campaign expense and a reportable 

expenditure shall be calculated in 

accordance with the formula set forth at 

paragraph (b)(2) of this section on the 

basis of the actual cost per passenger

48, No. 25 / Friday, February 4, 1983

multiplied by the number of passengers 

traveling for campaign purposes.

(ii) If the trip is by non-charter 

commercial transportation, the actual 

cost shall be calculated in accordance 

with the formula set forth at paragraph

(b)(2) of this section on the basis of die 

commercial fare. Such actual cost shall 

be a qualified campaign expense and a 

reportable expenditure.

§ 9034.8 Joint fundraising.

(a) General.—(1) Permissible

Participants. Presidential primary 

candidates who receive matching funds 

under this subchapter may engage in 

joint fundraising with other candidates, 

political committees or unregistered 

committees or organizations.

(2) Use o f Funds. Contributions 

received as a result of a candidate’s 

participation in a joint fundraising 

activity under this section may be—

(1) Submitted for matching purposes in 

accordance with the requirements of 11 

CFR 9034.2 and the Federal Election 

Commission's Guideline for Presentation 

in Good Order;

(ii) Used to pay a candidate’s net 

outstanding campaign obligations as 

provided in 11 CFR 9034.5;

(iii) Used to defray qualified campaign 

expenses;

(iv) Used to defray exempt legal and 

accounting costs; or

(v) If in excess of a candidate’s net 

outstanding campaign obligations or 

expenditure limit, used in any manner 

consistent with 11 CFR 113.2, including 

repayment of funds under 11 CFR Part 

9038.

(b) Fundraising Representatives.—(1) 

Establishment or Selection o f

Fundraising Representative. The 

participants in a joint fundraising effort 

under this section shall either establish 

a separate committee or select a 

participating committee, to act as 

fundraising representative for all 

participants. The fundraising 

representative shall be a reporting 

political committee and an authorized 

committee of each candidate.

(2) Separate Fundraising Committee

as Fundraising Representative. A 

separate fundiraising committee 

established by the participants to act as 

fundraising representative for all 

participants shall—

(i) Be established as a reporting 

political committee under 11 CFR 100.5;

(ii) Collect contributions;

(iii) Pay fundraising costs from gross 

proceeds and funds advanced by 

participants; and

(iv) Disburse net proceeds to each 

participant.

(3) Participating Committee as

Fundraising Representative. A

/ Rules and Regulations

participant selected to act as fundraising 

representative for all participants 

shall—

(i) Be a political committee as defined 

in 11 CFR 100.5;

(ii) Collect contributions; however, 

other participants may also collect 

contributions and then forward them to 

the fundraising representative as 

required by 11 CFR 102.8;

(iii) Pay fundraising costs from gross 

proceeds and funds advanced by 

participants; and

(iv) Disburse net proceeds to each 

participant

(4) Independent Fundraising A gent

The participants or the fundraising 

representative may hire a commercial 

fundraising firm or other agent to assist 

in conducting the joint fundraising 

activity. In that case, however, the 

fundraising representative shall still be 

responsible for ensuring that the 

recordkeeping, reporting and 

documentation requirements set forth in 

this subchapter are m et

(c) Joini'Fundraising Procedures. Any 

joint fundraising activity under this 

section shall be conducted in 

accordance with the following 

requirements:

(1) Written Agreement. The 

participants in a joint fundraising 

activity shall enter into a written 

agreement whether or not all 

participants are political committees 

under 11 CFR 100.5. The written 

agreement shall identify the fundraising 

representative and shall state a formula 

for the allocation of fundraising 

proceeds. The participants shall also use 

the formula to allocate the expenses 

incurred for the fundraising activity. The 

fundraising representative shall retain 

the written agreement for a period of 

three years and shall make it available 

to the Commission on request

(2) Funds Advanced fo r Fundraising

Costs.

(i) Except as provided in paragraph

(c)(2)(ii) of this section, the amount of 

funds advanced by each participant for 

fundraising costs shall be in proportion 

to the allocation formula agreed upon 

under paragraph (c)(i) of this section.

(ii) A participant may advance more 

than its proportionate share of the 

fundraising costs; however, the amount 

advanced which is in excess of the 

participant’s proportionate share shall 

not exceed the amount that participant 

could legally contribute to the remaining 

participants. See 11 CFR 102.12(c)(2) and 

Part 110.

(3) Fundraising Notice. In addition to 

any notice required under 11 CFR 110.11, 

a joint fundraising notice shall be
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5243

included with every solicitation for 

contributions.

(i) This notice shall include the 

following information:

(A) The names of all committees 

partcipating in the joint fundraising 

activity whether or not such committees 

are political committees under 1 1 CFR 

100.5;

(B) The allocation formula to be used 

for distributing joint fundraising 

proceeds;

(C) A statement informing 

contributors that, notwithstanding the 

stated allocation formula, they may 

designate their contributions for a 

particular participant or participants; 

and

(D) A statement informing 

contributors that the allocation formula 

may change if a contributor makes a 

contribution which would exceed the 

amount that contributor may give to any 

participant.

(ii) If one or more participants engage 

in the joint fundraising activity solely to 

satisfy outstanding debts, the notice 

shall also contain a statement informing 

contributors that the allocation formula 

may change if a participant receives 

sufficient funds to pay its outstanding 

debts.

(4) Separate Depository Account.

(i) The participants or the fundraising 

representative shall establish a separate 

depository account to be used solely for 

the receipt and disbursement of the joint 

fundraising proceeds. All contributions 

deposited into the separate depository 

account must be permissible under Title 

2, United States Code. Each political 

committee shall amend its Statement of 

Organization to reflect the account as an 

additional depository.

(ii) The fundraising representative 

shall deposit all joint fundraising 

proceeds in the separate depository 

account within ten days of receipt as 

required by 11 CFR 103.3. The 

fundraising representative may delay 

distribution of the fundraising proceeds 

to the participants until all contributions 

are received and all expenses are paid.

(iii) For contribution reporting and 

limitation purposes, the date of receipt 

of a contribution by a participating 

political committee is the date that the 

contribution is received by the 

fundraising representative. The 

fundraising representative, shall report 

contributions in the reporting period in 

which they are received. Participating 

political committees shall report joint 

fundraising proceeds in accordance with 

11 CFR 9034.8(c)(9) when such funds are 

received from the fundraising 

representative.

(5) Recordkeeping Requirements, (i) 

The fundraising representative and

participating committees shall screen all 

contributions received to insure that the 

prohibitions and limitations of 11 CFR 

Parts 110 and 114 are observed. 

Participating political committees shall 

make their contributor records available 

to the fundraising representative to 

enable the fundraising representative to 

carry out its duty to screen 

contributions.

(ii) The fundraising representative 

shall collect and retain contributor 

information with regard to gross 

proceeds as required under 11 CFR 102.8 

and shall also forward such information 

to participating political committees.

(iii) The fundraising representative 

shall retain the records required under 

11 CFR 9033,11 regarding fundraising 

disbursements for a period of three 

years. Commercial fundraising firms or 

agents shall forward such information to 

the fundraising representative.

(6) Contribution Limitations. Except to 

the extent that the contributor has 

previously contributed to any of the 

participants, a contributor may make a 

contribution to the joint fundraising 

effort which contribution represents the 

total amount that the contributor could 

contribute to all of the participants 

under the applicable limita of 11 CFR

110.1 and 110.2.

(7) Allocation o f Gross Proceeds, (i) 

The fundraising representative shall 

allocate proceeds according to the 

formula stated in the fundraising 

agreement. Funds may not be 

distributed or reallocated so as to 

maximize the matchability of the 

contributions.

(ii) If distribution according to the 

allocation formula extinguishes the 

debts of one or more participants or if 

distribution under the formula results in 

a violation of the contribution limits of 

11 CFR 110.1(a), the fundraising 

representative may reallocate the 

surplus funds. Candidates seeking to 

extinguish outstanding debts shall not 

reallocate in reliance on the receipt of 

matching funds to pay the remainder of 

their debts; rather, all funds to which a 

participant is entitled under the 

allocation formula shall be deemed 

funds available to pay the candidate’s 

outstanding campaign obligations as 

provided in 11 CFR 9034.5(c).

- (iii) Reallocation shall be based upon 

the remaining participants’ 

proportionate shares under the 

allocation formula. If reallocation results 

in q violation of a contributor’s limit 

under 11 CFR 110.1, the fundraising 

representative shall return to the 

contributor the amount of the 

contribution that exceeds the limit.

(iv) Earmarked contributions which 

exceed the contributor’s limit to the

designated participant under 11 CFR 

Part 110 may not be reallocated by the 

fundraising representative without the 

written permission of the contributor.

(8) Allocation o f Expenses and

Distribution o f Net Proceeds, (i) If 

participating committees are not 

affiliated as defined in 11 CFR 110.3 

prior to the joint fundraising activity and 

are not committees of the same political 

party;

(A) After gross contributions are 

allocated among the participants under 

11 CFR 9034.8(c)(7), the fundraising 

representative shall calculate each 

participant’s share of expenses based on 

the percentage of the total receipts each 

participant had been allocated. To 

calculate each participant’s net 

proceeds, the fundraising representative 

shall subtract the participant’s share of 

expenses from the amount that 

participant has been allocated from 

gross proceeds.

(B) A participant may only pay 

expenses on behalf of another 

participant subject to the contribution 

limits of 11 CFR Part 110.

(ii) If participating committees are 

affiliated as defined in 11 CFR 110.3 

prior to the joint fundraising activity or 

if participants are party committees of 

the same political party, expenses need 

not be allocated among those 

participants. Payment of such expenses 

by an unregistered committee or 

organization on behalf of an affiliated 

political committee may cause the. 

unregistered organization to become a 

political committee.

(iii) Payment of expenses may be 

made from gross proceeds by the 

fundraising representative.

(9) Reporting o f Receipts and

Disbursements.—~{i) Reporting Receipts.

(A) The fundraising representative shall 

report all funds received in the reporting 

period in which they are received. Each 

Schedule A filed by the fundraising 

representative under this section shall 

clearly indicate that the contributions 

reported on that schedule represent joint 

fundraising proceeds.

(B) After distribution of net proceeds, 

each participating political committee 

shall report its share of net proceeds 

received as a transfer-in from the 

fundraising representative. Each 

participating political committee shall 

also file a memo Schedule A itemizing 

its share of gross receipts as 

contributions from original contributions 

to the extent required under 11 CFR 

104.3(a).

(ii) Reporting Disbursements. The 

fundraising representative shall report 

all disbursements in the reporting period 

in which they are made.
5244 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

§ 9034.9 Sale of assets acquired for

fundraising purposes.

(a) G eneral A candidate may sell 

assets donated to the campaign or 

otherwise acquired for fundraising 

purposes (See 11 CFR 9034.5(b)(2)), 

subject to the limitations and 

prohibitions of Title 2, United States 

Code and 11 CFR parts 110 and 114.

(b) Sale A fter End o f Matching

Payment Period. A candidate whose 

outstanding debts exceed his or her cash 

on hand after the end of the matching 

payment period as determined under 11 

CFR 9032.6 may dispose of assets 

acquired for fundraising purposes in a 

sale to a wholesalers or other 

intermediary who will in turn sell such 

assets to the public, provided that the 

sale to the wholesaler or intermediary is 

an arms-length transaction. Sales made 

under this subsection will not be subject 

to the limitations and prohibitions of 

Title 2, United States Code and 11 CFR 

Parts 110 and 114.

PART 9035— EXPENDITURE

LIMITATIONS

Sec. *

9035.1 Campaign expenditure limitation.

9035.2 limitations on expenditures from 

personal or family funds.

Authority: Pub. L 93-443, title IV, Sec. 

408(c), 88 Stat. 1300, as amended by Pub. L 

94-283, title III, Secs. 305(a). 307(c), 90 Stat. 

494, 501 (28 U.S.C. Sec. 9035).

§ 9035.1 Campaign expenditure limitation.

(a) No candidate or his or her 

authorized committee(s) shall knowingly 

incur expenditures in connection with 

the candidate's campaign for 

nomination, which expenditures, in the 

aggregate, exceed $10,000,000 (as 

adjusted under 2 U.S.C. 441a(c)), except 

that the aggregate expenditures by a 

candidate in any one State shall not 

exceed the greater of. 16 cents (as 

adjusted under 2 U.S.C. 441a(c)) 

multiplied by the voting age population 

of the State (as certified under 2 U.S.C. 

441a(e)); or $200,000 (as adjusted under 2 

U.S.C. 441a(c)).

(b) Each candidate receiving or 

expecting to receive matching funds 

under this subchapter shall also allocate 

his or her expenditures in accordance 

with the provisions of 11 CFR 106.2.

(c) A candidate may exclude from the 

overall expenditure limitation of this 

section an amount equal to 10% of 

salaries and overhead expenditures of 

his or her national campaign 

headquarters and state offices as an 

exempt legal and accounting compliance 

cost under 11 CFR 100.8(b)(15). For 

purposes of this section overhead 

expenditures include, but are not limited 

to rent, utilities, office equipment,

furniture, supplies, and telephone base 

service charges. An additional amount 

of 10% of such salaries and overhead 

expenditures may be excluded from the 

overall expenditure limitation of this 

section as exempt fundraising 

expenditures but this exemption shall 

not apply within 28 days of the primary 

election as specified in 11 CFR 

110.8(c)(2). Any amount excluded for 

fundraising expenditures shall be 

applied against the fundraising 

expenditure limitation under 11 CFR 

100.8(b)(21). If the candidate wishes to 

claim a larger compliance or fundraising 

exemption for any person, the candidate 

shall establish allocation percentages 

for each individual who spends all or a 

portion of his or her time to perform 

duties which are considered compliance 

or fundraising. The candidate shall keep 

detailed records to support the 

derivation of each percentage. Such 

records shall indicate which duties are 

considered compliance or fundraising 

and the percentage of time each person 

spends on such activity.

(d) The expenditure limitations of this 

section shall not apply to a candidate 

who does not receive matching funds at 

any time during the matching payment 

period.

§9035.2 Limitation on expenditures from

personal or family funds.

No candidate who has accepted 

matching funds shall knowingly make 

expenditures from his or her personal 

funds, or funds of his or her immediate 

family, in connection with his or her 

campaign for nomination for election to 

the office of President which exceed 

$50,000, in the aggregate. This section 

shall not operate to prohibit any 

member of the candidate’s immediate 

family from contributing his or her 

personal funds to the candidate, subject 

to the limitations of 11 CFR Part 110.

(b) For purposes of this section, the 

term “immediate family" means a 

candidate, spouse, and any child, 

parent, grandparent, brother, halfbrother, sister, or half-sister of the 

candidate, and the spouses of such 

persons.

(c) For purposes of this section, 

“personal funds" has the same meaning 

as specified in 11 CFR 110.10.

PART 9036— REVIEW OF SUBMISSION

AND CERTIFICATION OF PAYMENTS

BY COMMISSION

Sec. (

9036.1 Threshold submission.

9036.2 Additional submission for matching 

fund payments.

9036.3 Submission errors and insufficient 

documentation.

9036.4 Commission review of submissions.

9036.5 Resubmissions.

Sec.

9036.8 Continuation of certification.

Authority: Pub. L. 93-443, title IV, Sec. 

408(c), 88 Stat. 1300 (26 U.S.C. 9036).

§ 9036.1 Threshold submission.

(a) Time for Submission o f Threshold

Submission. At any time after January 1 

of the year immediately preceding the 

Presidential election year, the candidate 

may submit a threshold submission for 

matching fund payments in accordance 

with the format for such submissions set 

forth in paragraph (b) of this section.

The candidate may submit the threshold 

submission simultaneously with or 

subsequent to his or her submission of 

the candidate agreement and 

certifications required by 11 CFR 9033.1 

and 9033.2.

(b) Format fo r Threshold Submission.

(1) For each State in which the 

candidate certifies that he or she has 

met the requirements of the 

certifications in 11 CFR 9033.2(b), the 

candidate shall submit an alphabetical 

list of contributors showing:

(1) Each contributor's full name and 

residential address;

(ii) The occupation and name of 

employer for individuals whose 

aggregate contributions exceed $200 in 

the calendar year;

(iii) The date of deposit of each 

contribution into the designated 

campaign depository;

(iv) The full dollar amount of each 

contribution submitted for matching 

purposes;

(v) The matchable portion of each 

contribution submitted for matching 

purposes;

(vi) The aggregate amount of all 

matchable contributions from that 

contributor submitted for matching 

purposes;

(vii) A notation indicating which 

contributions were received as a result 

of joint fundraising activities.

(2) The candidate shall submit a fullsize photocopy of each check or written 

instrument and of supporting 

documentation in accordance with 11 

CFR 9034.2 for each contribution that the 

candidate submits to establish eligibility 

for matching funds. For purposes of the 

threshold submission, the photocopies 

shall be segregated alphabetically by 

contributor within each State, and shall 

be accompanied by and referenced to 

copies of the relevant deposit slips.

(3) The candidate shall submit bank 

documentation, such as bank-validated 

deposit slips or unvalidated deposit 

slips accompanied by the relevant bank 

statements, which indicate that the 

contributions submitted were deposited 

into a designated campaign depository.
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5245

(4} For each State in which the 

candidate certifies that he or she has . 

met the requirements to establish 

eligibility, the candidate shall submit a 

listing, alphabetically by contributor, of 

all checks returned by die bank to date 

as unpaid (e.g., stop payments, nonsufficient funds) regardless of whether 

the contribution was submitted for 

matching. Tins listing shall be 

accompanied by a full-size photocopy of 

each unpaid check, and copies of the 

associated debit memo and bank 

statement.

(5) The candidate shall submit all ' 

contributions in accordance with the 

Federal Election Commission’s 

Guideline for Presentation in Good 

Order.

(6) Contributions that are not 

submitted in compliance with this 

section shall not count toward the 

threshold amount

(c) Threshold Certification by

Commission. (1) After the Commission 

has determined under 11 CFR 9033.4 that 

the candidate has satisfied the eligibility 

and certification requirements of 11 CFR

9033.1 and 9033.2, the Commission will 

notify the candidate in writing that the 

candidate is eligible to receive primary 

matching fund payments as provided in 

11 CFR Part 9034.

(2) If the Commission makes a 

determination of a candidate’s eligibility 

under paragraph (a) of this section in a 

Presidential election year, the 

Commission shall certify to the 

Secretary, within 10 calendar days after 

the Commission has made its 

determination, the amount to which the 

candidate is entitled.

(3) If the Commission makes a 

determination of a candidate’s eligibility 

under paragraph (a) of this section in the 

year preceding the Presidential election 

year, the Commission will notify the 

candidate that he or she is eligible to 

receive matching fund payments; 

however, the Commission’s 

determination will not result in a 

payment of funds to the candidate until 

after January 1 of the Presidential 

election year.

§ 9036.2 Additional subm issions for

matching fund payments.

(a) Time fot Submission o f Additional

Submissions. The candidate may submit 

additional submissions for payments to 

the Commission on dates to be 

determined and published by die 

Commission.

(b) Format fo r Additional

Submissions. The candidate may obtain 

additional matching fund payments 

subsequent to the Commission’s 

threshold certification and payment of 

primary matching funds to the candidate

by filing an additional submission far

payment. All additional submissions for 

payments filed by the candidate shall be 

made in accordance with the Federal 

Election Commission’s Guideline for 

Presentation in Good Order.

(1) The first submission for matching 

funds following the candidate’s 

threshold submission shall contain all 

the contributions included in the 

threshold submission and any additional 

contributions to be submitted for 

matching in that submission. This 

submission shall contain all the 

information required for the threshold 

submission except that:

p) The candidate Is not required to 

resubmit the candidate agreement and 

certifications of 11 CFR 9033.1 and 

9033.2;

(ii) The candidate is required to 

submit an alphabetical list of 

contributors, but not segregated by State 

as required in the threshold submission;

(iii) D ie candidate is required to 

submit a listing, alphabetical by 

contributor, of all checks returned 

unpaid, but not segregated by State as 

required in the threshold submission;

(iv) The occupation and employer’s 

name need not be disclosed on the 

contributor list for individuals whose 

aggregate contributions exceed $200 in 

the calendar year, but such information ‘ 

is subject to the recordkeeping and 

reporting requirements of 2 U.S.C, 432

(c)(3), 434(b)(3)(A) and 11 CFR 

102.9(a)(2), 104.3(a)(4)(i); and

(v) D ie photocopies of each check or 

written instrument and of supporting 

documentation shall either bie 

alphabetized and referenced to copies of 

the relevant deposit slip, but not 

segregated by State as required in the 

threshold submission; or such 

photocopies may be batched in deposits 

of 50 contributions or less and crossreferenced by deposit number and 

sequence number within each deposit on 

the contributor list

(2) Following the first submission 

under paragraph (b)(1) of this section 

candidates may request additional 

matching funds on dates prescribed by 

the Commission by making a letter 

request in lieu of making a full 

submission as required under paragraph

(b)(1) of this section. Letter requests 

shall state an amount of matchable 

contributions not previously submitted 

for matching and shall provide bank 

documentation, such as bank-validated 

deposit slips or unvalidated deposit 

slips accompanied by the relevant bank 

statement, demonstrating that the 

committee has received die funds for 

which matching payments are 

requested. The amount requested for 

matching may include contributions

received up to the last business day 

preceding the date of the request. On the 

next submission after a letter request 

has been made, die committee shall 

submit the documentation required 

under paragraph (b)(1) of this section for 

all contributions included in the letter 

request, as well as those contributions 

submitted for matching in that 

submission. A committee may not 

submit two consecutive letter requests, 

but the committee may choose to make 

a full regular submission on a date 

designated by the Commission as a 

letter request date for that committee.

(c) Certification o f Additional

Payments by Commission (l)(i) When a 

candidate who is eligible under 11 CFR 

9033.4 submits an additional submission, 

for payment in the Presidential election 

year, the Commission may certify to the 

Secretary within 5 business days after 

the Commission’s receipt of information 

submitted by the candidate under 

paragraph (a) of this section, an amount 

based on the holdback procedure 

described in the Federal Election 

Commission’s Guideline for Presentation 

in Good Order. If the candidate makes a 

letter request, the Commission may 

certify to the Secretary an amount which 

is less than that requested based upon 

the ratio of verified matchable 

contributions to total deposits for that 

committee in the committee’s last 

regular submission.

(ii) The Commission will certify to the 

Secretary any additional amount to 

which the eligible candidate is entitled, 

if any, within 15 business days after the 

Comxmssion’a receipt of information 

submitted by the candidate under 

paragraph (a) of this section unless the 

projected dollar value of the 

nonmatchable contributions contained 

in the submission exceeds 15% of the 

amount requested. In the latter case, the 

Commission will certify any additional 

amount within 25 business days. See 11 

CFR 9036.4 for Commission procedures 

for certification of additional payments.

(2) After a candidate’s date of 

ineligibility, the Commission will certify 

to the Secretary within 15 business days 

after receipt of a submission by the 

candidate under paragraph (a) of this 

section, an amount to which the 

ineligible candidate is entitled in 

accordance with 11 CFR 9034.1(b), 

unless the projected dollar value of the 

nonmatchable contributions contained 

in the submission exceeds 15% of the 

amount requested, hi the latter case, the 

Commission will certify any amount to 

which tile ineligible candidate is entitled 

within 25 business days.

(d) Additional Submissions Submitted

in Non-Presidential Election Year. The
5246 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

candidate may submit additional 

contributions for review during the year 

preceding the Presidential election year; 

however, the amount of each submission 

made during this period must exceed 

$50,000. Additional submissions filed by 

a candidate in a non-Presidential 

election year will not result in payment 

of matching funds to the candidate until 

after January 1 of the Presidential 

election year.

§ 9036.3 Submission errors and

insufficient documentation.

Contributions which are otherwise 

matchable may be rejected for matching 

purposes because of submission errors 

or insufficient supporting 

documentation. Contributions, other 

than those defined in 11 CFR 9034.3 or in 

the form of money orders, cashier's 

checks, or similar negotiable 

instruments, may become matchable if 

there is a proper resubmission in 

accordance with 11 CFR 9036.5 and

9036.6. Insufficient documentation or 

submission errors include but are not 

limited to:

(a) Discrepancies in the written 

instalment, such as:

(1) Instruments drawn on other than 

personal accounts of contributors and 

not signed by the contributing 

individual;

(2) Signature discrepancies; and

(3) Lack of the contributor’s signature, 

the amount or date of the contribution, 

or the listing of the committee or 

candidate as payee.

(b) Discrepancies between listed 

contributions and the written instrument 

or supporting documentation, such as:

(1) The listed amount requested for 

matching exceeds the amount contained 

on the written instrument;

(2) A written instrument has not been 

submitted to support a listed 

contribution;

(3) The submitted written instrument 

cannot be associated either by account 

holder identification or signature with 

the listed contributor; or

(4) A discrepancy between the listed 

contribution and the supporting bank 

documentation or the bank 

documentation is omitted.

(c) Discrepancies within or between 

contributor lists submitted, such as:

(1) The address of the contributor is 

omitted or incomplete or the 

contributor’s name is alphabetized 

incorrectly, or more than one contributor 

is listed per item;

(2) A discrepancy in aggregation 

within or between submissions which 

results in a request that more than $250 

be matched for that contributor, or a 

listing of a contribùtor more than once 

within the same submission; or

(3) A written instrument has been 

previously submitted and matched in 

full or is listed twice in the same 

submission.

(d) The omission of information, 

supporting statements, or 

documentation required by 11 CFR

9034.2.

§ 9036.4 Commission review of

submissions.

(a) Non-Acceptance o f Submission for

Review o f Matchability. The 

Commission will make an initial review 

of each submission made under 11 CFR 

Part 9036 to determine if it substantially 

meets the format requirements of 11 CFR 

9036.1(b) and 9036.2(b) and the Federal 

Election Commission's Guideline for 

Presentation in Good Order. If the 

Commission determines that a 

submission does not substantially meet 

these requirements, it will not review 

the matchability of the contributions 

contained therein. In such a case, the 

Commission will return the submission 

to the candidate and request that it be 

corrected in accordance with the format 

requirements. If the candidate makes a 

corrected submission within 3 business 

days after the Commission's return of 

the original, the Commission will review 

the corrected submission prior to the 

next regularly-scheduled submission 

date. Corrected submissions made after 

this three day period will be reviewed 

subsequent to the next regularlyscheduled submission date.

(b) A cceptance o f Submission for

Review o f Matchability. If the 

Commission determines that a 

submission made under 11 CFR Part 

9036 satisfies the format requirements of 

11 CFR 9036.1(b) and 9036.2(b) and the 

Federal Election Commission’s 

Guideline for Presentation in Good 

Order, it will review the matchability of 

the contributions contained therein. The 

Commission, in conducting its review, 

may utilize statistical sampling 

techniques. Based on the results of its 

review, the Commission may calculate a 

matchable amount for the submission 

which is less than the amount requested 

by the candidate. If the Commission 

certifies for payment to the Secretary an 

amount that is less than the amount 

requested by the candidate in a 

particular submission, or reduces the 

amount of a subsequent certification to 

the Secretary by adjusting a previous 

certification made under 11 CFR 

9036.2(c)(1), the Commission will notify 

the candidate in writing of the following:

(1) The amount of the difference 

between the amount requested and the 

amount to be certified by the 

Commission;

(2) The amount of each contribution 

and the corresponding contributor’s 

name for each contribution that the 

Commission has rejected as 

nonmatchable and the reason that it is 

not matchable; or if statistical sampling 

is used, the estimated amount of 

contributions by type and the reason for 

rejection;

(3) The amount of contributions that 

have been determined to be matchable 

and that the Commission will certify to 

the Secretary for payment; and

(4) A statement that the candidate 

may supply the Commission with 

additional documentation or other 

information in the resubmission of any 

rejected contribution under 11 CFR

9036.5 in order to show that a rejected 

contribution is matchable under 11 CFR

9034.2.

(c) Adjustment o f Amount to be

Certified by Commission. The candidate 

shall notify the Commission as soon as 

possible if the candidate or the 

candidate’s authorized committee(s) has 

knowledge that a contribution submitted 

for matching does not qualify under 11 

CFR 9034.2 as a matchable contribution, 

such as a check returned to the 

committee for insufficient funds, so that 

the Commission may properly adjust the 

amount to be certified for payment.

(d) Commission Audit o f Submissions.

The Commission may determine, for the 

reasons stated in 11 CFR Part 9039, that 

an audit and examination of 

contributions submitted for matching 

payment is warranted. The audit and 

examination shall be conducted in 

accordance with the procedures of 11 

CFR Part 9039.

§ 9036.5 Resubmissions.

(a) Alternative Resubmission

Methods. Upon receipt of the 

Commission's notice of the results of the 

submission review pursuant to 11 CFR 

9036.4(b), a candidate may choose to:

(1) Resubmit the entire submission; or

(2) Make a written request for the 

identification of the specific 

contributions that were rejected for 

matching, and resubmit those specific 

contributions.

(b) Time fo r Presentation o f

Resubmissions. If the candidate chooses 

to resubmit any contributions under 

paragraph (a) of this section, the 

contributions shall be resubmitted on 

dates to be determined and published 

by the Commission. The cutoff date for 

original submissions as provided by 11 

CFR 9036.6 will not apply to 

resubmissions made under this section.

(c) Format fo r Resubmissions. All 

resubmissions filed by the candidate 

shall be made in accordance with the
Federal Register / VoL 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5247

Federal Election Commission’s 

Guideline for Presentation in Good 

Order. In making a presentation of 

resubmitted contributions, the candidate 

shall follow the format requirements as 

specified in 11 CFR 9036.2(b)(1), except 

that;

(1) The candidate need not provide 

photocopies of written instruments, 

supporting documentation and bank 

documentation unless it is necessary to 

supplement the original documentation.

(2) Each resubmitted contribution 

shall be referenced to the submission in 

which it was first presented.

(3) Each list of resubmitted 

contributions shall reflect the aggregate 

amount of contributions submitted for 

matching from each contributor as of the 

date of the original submission.

(4) Each list of resubmitted 

contributions shall reflect die aggregate 

amount of contributions submitted for 

matching from each contributor as of the 

date of the resubmission.

(5) Each list of resubmitted 

contributions shall only contain 

contributions previously submitted for 

matching and no new or additional 

contributions.

(6) Each resubmission shall be 

accompanied by a statement that the 

candidate has corrected his or her 

contributor records (including the data 

base for those candidates maintaining 

their contributor list on computer).

(d) Certification o f Resubmitted

Contributions. Contributions that the 

Commission determines to be matchable 

will be certified to the Secretary within 

15 business days. If the candidate 

chooses to request the specific 

contributions rejected for matching 

pursuant to paragraph (a)(2) of this 

section, the amount certified shall equal 

only the matchable amount of the 

particular contribution that meets the 

standards on resubmission, rather than 

the amount projected as being 

nonmatchable based on that 

contribution due to the sampling 

techniques used in reviewing the 

original submission.

(e) Interim Determinations. If the 

candidate resubmits a contribution for 

matching and the Commission 

determines that the rejected 

contribution is still nonmatchable, the 

Commission will notify the candidate in 

writing of its determination. The 

Commission will advise die candidate of 

the legal and factual reasons for its 

determination and of the evidence on 

which that determination is based. The 

candidate may submit written legal or 

factual materials to demonstrate that the 

contribution is matchable within 30 

calendar days after receipt of the 

Commission’s notice. Such materials

may be submitted by counsel if the 

candidate so desires,

(f) Final Determinations. The 

Commission will consider any written 

legal or factual materials timely 

submitted by the candidate m making its 

final determination. A final 

determination by the Commission that a 

contribution is not matchable will be 

accompanied by a written statement of 

reasons for the Commission’s action. 

This statement will explain the reasons 

underlying the Commission’s 

determination and will summarize the 

results of any investigation upon which 

the determination is based.

§ 9036.6 Continuation of certification.

Candidates who have received 

matching funds and who are eligible to 

continue to receive such funds may 

continue to submit additional 

submissions for payment to the 

Commission on dates specified in the 

Federal Election Commission’s 

Guideline for Presentation in Good 

Order. No contribution will be matched 

if it is submitted for die first time after 

the last Monday in January of the year 

following the election, regardless of the 

date the contribution was deposited.

PART 9037— PAYMENTS

Sec.

9037.1 Payments of Presidential primary 

matching funds.

9037.2 Equitable distribution of funds.

9037.3 Deposits of Presidential primary 

matching funds.

Authority: Pub. L. 93-443, title IV, s e a 

408(c), 88 Stat. 1300 (26 U.S.C. 9037).

§ 9037.1 Payments of Presidential primary

matching funds.

Upon receipt of a written certification 

from the Commission, but not before the 

beginning of the matching payment 

period, the Secretary will promptly 

transfer the amount certified from the 

matching payment account to the 

candidate.

§ 9037.2 Equitable distribution of funds.

In making such transfers to 

candidates of the same political party, 

the Secretary will seek to achieve an 

equitable distribution of funds available 

in the matching payment account, and 

the Secretary will take into account, in 

seeking to achieve an equitable 

distribution of funds available in the 

matching payment account, the 

sequence in which such certifications 

are received.

§ 9037.3 Deposits of Presidential primary

matching funds.

Upon receipt of any matching funds, 

the candidate shall deposit the full 

amount received into a checking

account maintained by the candidate’s 

principal campaign committee in the 

depository designated by the candidate.

PART 9038— EXAMINATIONS AND

AUDITS

Sec. .

9038.1 Audit

9038.2 Repayments.

9038.3 Liquidation of obligations; 

repayment.

9038.4 Extensions o f time.

Authority: Pub. L. 93-443, title FV, sec.

408(c), 88 Stat. 1300 (26 U.S.C. 9038).

§9038.1 Audit

(a) Generalt (1) The Commission will 

conduct an audit of the qualified 

campaign expenses of every candidate 

and his or her authorized committee(s) 

who received Presidential primary 

matching funds. The audit may be 

conducted at any time after the date of 

the candidate’s ineligibility.

(2) In addition, the Commission may 

conduct other examinations and audits 

from time to time as it deems necessary 

to carry out the provisions of fins 

subchapter.

(3) Information obtained pursuant to 

any audit and examination conducted 

under paragraphs (a)(1) and (2) of this 

section may be used by the Commission 

as the basis, or partial basis, for its 

repayment determinations under 11 CFR

9038.2.

(b) Conduct o f Fieldwork. (1) 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.

(i) O ffice Space and Records. On the 

date scheduled for the commencement 

of fieldwork, the candidate or his or her 

authorized committee(s) shall provide 

Commission staff with office space and 

committee records in accordance with 

thé candidate and committee agreement 

under 11 CFR 9033.1(b)(6).

(ii) Availability o f Committee

Personnel. Chi the date scheduled for the 

commencement of fieldwork, the 

candidate or his or her authorized 

committee(s) shall have committee 

personnel present at the site of the 

fieldwork. Such personnel shall be 

familiar with the committee’s records 

and operation and shall be available to 

Commission staff to answer questions 

and to aid in locating records.

(iii) Failure to Provide Staff, Records

or O ffice Space. If the candidate or his 

or her authorized committee(s) fail to 

provide adequate office space, 

personnel or committee records, the
5248 Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations

Commission may seek judicial 

intervention under 2 U.S.C. 437d or 26 

U.S.C. 9040(c) to enforced the candidate 

and committee agreement made under 

11 CFR 9033.1(b). Before seeking judicial 

intervention, the Commission will notify 

the candidate of his or her failure to 

comply with the agreement and will ‘ 

recommend corrective action to bring 

the candidate into compliance. Upon 

receipt of the Commission’s notification, 

the candidate will have 10 calendar 

days in which to take the corrective 

action indipated or to otherwise 

demonstrate to the Commission in 

writing that he or she is complying with 

the candidate and committee agreement.

(iv) If, in the course of the audit 

process, a dispute arises over the 

documentation sought or other 

requirements of the candidate 

agreement, the candidate may seek 

review by the Commission of the issues 

raised. To seek review, the candidate 

shall submit a written statement, within 

10 calendar days after the disputed 

Commission staff request is made, 

describing the dispute and indicating the 

candidate’s proposed altemative(s).

(2) Fieldwork will include the 

following steps designed to keep thé 

candidate and committee informed as to 

the progress of the audit and to expedite 

the process:

(i) Entrance Conference. At the outset 

of the fieldwork, Commission staff will 

hold an entrance conference, at which 

the Candidate’s representatives will be 

advised of the purpose of the audit and 

the general procedures to be followed. 

Future requirements of the candidate 

and his or her authorized committee, 

such as possible repayments to the 

United States Treasury, will also be 

discussed. Committee representatives 

shall provide information and records 

necessary to conduct the audit, and 

Commission staff will be available to 

answer committee questions.

(ii) Review o f Records. During the 

fieldwork, Commission staff will review 

committee records and may conduct 

interviews of committee personnel. 

Commission staff will be available to 

explain aspects of the audit and 

examination as it progresses. Additional 

meetings between Commission staff and 

committee personnel may be held from 

time to time during the fieldwork to 

discuss possible audit findings and to 

resolve issues arising during the course 

of the audit.

(in) Exit Conference. At the 

conclusion of the fieldwork, Commission 

staff will hold an exit conference to 

discuss with committee representatives 

the staffs preliminary findings and 

recommendations which the 

Commission staff anticipates that it may

present to the Commission for approval. 

Commission staff will advise committee 

representatives at this conference of the 

projected timetable regarding the 

issuance of an audit report, the 

committee’s opportunity to respond 

thereto, and the Commission's initial 

and final repayment determinations 

under 11 CFR 9038.2.

(3) Commission staff may conduct 

additional fieldwork after the 

completion of the fieldwork conducted 

pursuant to paragraph (b)(1) and (2) of 

this section. Factors that may 

necessitate such follow-up fieldwork 

include, but are not limited to, the 

following:

(i) Committee responses to audit 

findings;

(ii) Financial activity of the committee 

subsequent to the fieldwork conducted 

pursuant to paragraph (b)(1) of this 

section;

(iii) Committee responses to 

Commission repayment determinations 

made under 11 CFR 9038.2.

(4) The Commission will notify the 

candidate and his or her authorized 

committee if follow-up fieldwork is 

necessary. The provisions of paragraph 

(b)(1) and (2) of this section shall apply 

to any additional fieldwork conducted.

(c) Preparation o f Interim Audit

Report. (1) After the completion of the 

fieldwork conducted pursuant to 

paragraph (b)(1) of this section, the 

Commission will issue an interim audit 

report to the candidate and his or her 

authorized committee. The interim audit 

report may contain Commission findings 

and recommendations regarding one or 

more of the following areas:

(1) An evaluation of procedures and 

systems employed by the candidate and 

committee to comply with applicable 

provisions of the Federal Election 

Campaign Act, Primary Matching 

Payment Account Act and Commission 

regulations;

(ii) Eligibility of the candidate, to 

receive primary matching payments;

(iii) Accuracy of statements and 

reports filed with the Commission by the 

candidate and committee;

(iv) Compliance of the candidate and 

committee with applicable statutory and 

regulatory provisions except for those 

instances where the Commission has 

instituted an enforcement action on the 

matter(s) under the provisions of 2 

U.S.C. 437g and 11 CFR Part 111; and

(v) Preliminary calculations regarding 

future repayments to the United States 

Treasury.

(2) The candidate and his or her 

authorized committee will have an 

opportunity to submit, in writing, within 

30 calendar days of recepit of the 

interim report, legal and factual

materials disputing or commenting on 

the contents of the interim report. Such 

materials may be submitted by counsel 

if the candidate so desires.

(3) The Commission will consider any 

written legal and factual materials 

submitted by the candidate or his or her 

authorized committee in accordance 

with paragraph (c)(2) of this section 

before approving and issuing an audit 

report to be released to the public. The 

contents of the publicly-released audit 

report may differ from that of the interim 

report since the Commission will 

consider timely submissions of legal and 

factual materials by the candidate or 

committee in response to the interim 

report.

(d) Preparation o f Publicly-Released

Audit Report. An audit report prepared 

subsequent to an interim report will be 

publicly released pursuant to paragraph

(e) of this section. This report will 

contain Commission findings aiid 

recommendations addressed in the 

interim audit report but may contain 

adjustments based on the candidate’s 

response to the interim report. In 

addition, this report will contain an 

initial repayment determination made 

by the Commission pursuant to 11 CFR 

9038.2(c)(1) in lieu of the preliminary 

calculations set forth in the interim 

report

(e) Public Release o f Audit Report. (1) 

After the candidate and committee have 

had an opportunity to respond to a 

written interim report of the 

Commission, the Commission will make 

public the audit report prepared 

subsequent to the interim report, as 

provided in paragraph (d) of this section.

(2) If the Commission determines, on 

the basis of information obtained under 

the audit and examination process, that 

certain matters warrant enforcement 

under 2 U.S.C. 437g and 11 CFR Part 111, 

those matters will'not be contained in 

the publicly-released report. In such 

cases, the audit report will indicate that 

certain other matters have been referred 

to the Commission’s Office of General 

Counsel.

(3) The Commission will provide the 

candidate and committee copies of the 

audit report 24 hours prior to releasing 

the report to the public.

(4) Addenda to the audit report may 

be issued from time to time as 

circumstances warrant and as 

additional information becomes 

available. Such addenda may be based, 

in part, on follow-up fieldwork 

conducted under paragraph (b)(3) of this 

section, and will be placed on the public 

record.
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5249

§ 9038.2 Repayments.

(a) General. (1) A candidate who has 

received payments from the matching 

payment account shall pay the United 

States Treasury any amounts which the 

Commission determines to be repayable 

under this section. In making repayment 

determinations under this section, the 

Commission may utilize information 

obtained from audits and examinations 

conducted pursuant to 1 1 CFR 9038.1 

and Part 9039 or otherwise obtained by 

the Commission in carrying out its 

responsibilities under this subchapter.

(2) The Commission will notify the 

candidate of any repayment 

determinations made under this section 

as soon as possible, but not later than 3 

years after the end of the matching 

payment period.

(3) Once the candidate receives notice 

of the Commission's final repayment 

determination under this section, the 

candidate should give preference to the 

repayment over all other outstanding 

obligations of his or her committee, 

except for any federal taxes owed by 

the committee.

(b) Bases for Repayment.—(1) 

Payments in Excess o f Candidate’s

Entitlement. The Commission may 

determine that certain portions of the 

payments made to a candidate from the 

matching payment account were in 

excess of the aggregate amount of 

payments to which such candidate was 

entitled. Examples of such excessive 

payments include, but are not limited to, 

the following:

(1) Payments made to the candidate 

after the candidate’s date of ineligibility 

where it is later determined that the 

candidate had no net outstanding 

campaign obligations as defined in 11 

CFR 9034.5;

(ii) Payments or portions of payments 

made to the candidate which are later 

determined to have been excessive due 

to the operation of the Commission’s 

expedited payment procedures as set 

forth in the Federal Election 

Commission’s Guideline For 

Presentation In Good Order;

(iii) Payments or portions of payments 

made on the basis of matched 

contributions later determined to have 

been non-matchable; and

(iv) Payments or portions of payments 

made to the candidate which are later 

determined to have been excessive due 

to the candidate’s failure to include 

funds received by a fundraising 

representative committee under 11 CFR 

9034.8 on the candidate’s statement of 

net outstanding campaign obligations 

under 11 CFR 9034.5.

(2) Use o f Funds For Non-Qualified

Campaign Expenses.

(i) The Commission may determine 

that amount(s) of any payments made to 

a candidate from the matching payment 

account, or contributions received by 

the candidate, were used for purposes 

other than those set forth in (AHC) 

below:

(A) Defrayal of qualified campaign 

expenses;

(B) Repayment of loans which were 

used to defray qualified campaign 

expenses; and

(C) Restoration of funds (other than 

contributions which were received and 

expended to defray qualified campaign 

expenses) which were used to defray 

qualified campaign expenses.

(ii) Examples of Commission 

repayment determinations under 

paragraph (b)(2) of this section include, 

but are not limited to, the following:

(A) Determinations that a candidate, a 

candidate’s authorized committee(s) or 

agents have made expenditures in 

excess of the limitations set forth in 11 

CFR 9035;

(6) Determinations that funds 

described in paragraph (b)(2)(i) were 

expended in violation of state or federal 

law; and

(C) Determinations that funds 

described in paragraph (b)(2)(i) were 

expended for expenses resulting from a 

violation of state or federal law, such as 

the payment of fines or penalties.

(3) Failure to Provide Adequate

Documentation. The Commission may 

determine that amount(s) spent by the 

candidate, the candidate’s authorized 

committee(8), or agents were not 

documented in accordance with 11 CFR

9033.11.

(4) Surplus. The Commission may 

determine that the candidate’s net 

outstanding campaign obligations, as 

defined in 11 CFR 9034.5, reflect a 

surplus.

(c) Repayment Determination

Procedures. Commission repayment 

determinations will be made in 

accordance with procedures set forth at 

paragraphs (c) (1) through (4) of this 

section.

(1) Initial Determination. The 

Commission will provide the candidate 

with a written notice of its initial 

repayment determination(s). This notice 

wUl be included in the Commission’s 

publicly-released audit report pursuant 

to 11 CFR 9038.1(d), and will set forth 

the legal and factual reasons for such 

determination(s). Such notice will also 

advise the candidate of the evidence 

upon which any such determination is 

based. If the candidate does not dispute 

an initial repayment determination of 

the Commission within 30 calendar days 

of the candidate’s receipt of the notice, 

such initial determination will be

considered a final determination of the 

Commission.

(2) Submission o f Written Materials.

If the candidate disputes the 

Commission’s initial repayment 

determination(s), he or she shall have an 

opportunity to submit in writing, within 

30 calendar days of receipt of the 

Commission's notice, legal and factual 

materials to demonstrate that no 

repayment, or a lesser repayment, is 

required. The Commission will consider 

any written legal and factual materials 

submitted by die candidate within this 

30 day period in making its final 

repayment determination(s). Such 

materials may be submitted by counsel 

if the candidate so desires.

(3) Oral Presentation. A candidate 

who has submitted written materials 

under paragraph (c)(2) of this section 

may request that the Commission 

provide such candidate with an 

opportunity to address the Commission 

in open session. If the Commission 

decides by an affirmative vote of four (4) 

of its members to grant the candidate’s 

request, it will inform the candidate of 

the date and time set for the oral 

presentation. At the date and time set 

by the Commission, the candidate or 

candidate’s designated representative 

will be allotted an amount of time in 

which to make an oral presentation to 

the Commission based upon the legal 

and factual materials submitted under 

paragraph (c)(2) of this section. The 

candidate or representative will also 

have the opportunity to answer any 

questions from individual members of 

die Commission.

(4) Final Determination. In making its 

final repayment determination(s), the 

Commission will consider any 

submission made under paragraph (c)(2) 

of this section and any oral presentation 

made under paragraph (c)(3) of this 

section. A final determination that a 

candidate must repay a certain amount 

will be accompanied by a written 

statement of reasons for the 

Commission’s actions. This statement 

will explain the reasons underlying the 

Commission’s determination and will 

summarize the results of any 

investigation upon which the 

determination is based.

(d) Repayment Period. (1) Within 90 

calendar days of the candidate’s receipt 

of the notice of the Commission’s initial 

repayment determination(s), the 

candidate shall repay to the Secretary 

amounts which the Commission has 

determined to be repayable. Upon 

application by the candidate, the 

Commission may grant an extension of 

up to 90 calendar days in which to make 

repayment.
5250 Federal Register / Vol.

(2) If the candidate submits written 

materials under paragraph (c)(2) of this 

section disputing the Commission’s 

initial repayment determinatiôn(s), the 

time for repayment will be suspended 

until the Commission makes its final 

repayment determination(s). Within 20 

calendar days of the candidate’s receipt 

of the notice of the Commission's final 

repayment determination(s), the 

candidate shall repay to the Secretary 

amounts which the Commission has 

determined to be repayable. Upon 

application by the candidate, the 

Commission may grant an extension of 

up to 90 days in which to make 

repayment.

(e) Computation o f Time. The time 

periods established by this section shall 

be computed in accordance with 11 CFR 

111.2.

(f) Additional Repayments. Nothing in 

this section will prevent the Commission 

from making additional repayment 

determinations on one or more of the 

bases set forth at paragraph (b) of this 

section after it has made a final 

determination on any such basis. The 

Commission may make additional 

repayment determinations where there 

exist facts not used as the basis for a 

previous final determination. Any such 

additional repayment determination will 

be made in accordance with the 

provisions of this section.

(g) Newly-Discovered Assets. If, after 

any initial or final repayment 

determination made under this section, 

a candidate or his or her authorized 

committee(s) receives or becomes aware 

of assets not previously included in any 

statement of net outstanding campaign 

obligations submitted pursuant to 11 

CFR 9034.5, die candidate or his or her 

authorized committee(s) shall promptly 

notify the Commission of such newlydiscovered assets. Newly-discovered 

assets may include refunds, rebates, 

late-arriving receivables, and actual 

receipts for capital assets in excess of 

the value specified in any previouslysubmitted statement of net outstanding 

campaign obligations. Newly-discovered 

assets may serve as a basis for 

additional repayment determinations 

under paragraph (f) of this section.

§ 9038.3 Liquidation of obligations;

repayment

(a) The candidate may retain amounts 

received from the matching payment 

account for a period not exceeding 6 

months after die matching payment 

period to pay qualified campaign 

expenses incurred by the candidate.

(b) After all obligations have been 

liquidated, the candidate shall so inform 

the Commission in writing.

48, No. 25 / Friday, February 4, 1983

(c)(1) If on the last day of candidate 

eligibility the candidate’s net 

outstanding campaign obligations, as 

defined in 11 CFR 9034.5, reflect a 

surplus, the candidate shall within 30 

calendar days of the ineligibility date 

repay to the Secretary an amount which 

represents the amount of matching funds 

contained in the candidate’s surplus.

The amount shall be an amount equal to 

that portion of the surplus which bears 

the same ratio to the total surplus that 

the total amount received by the 

candidate from the matching payment 

account bears to the total deposits made 

to the candidate’s. accounts.

(2) For purposes of this subsection, 

total deposits shall be considered all 

deposits to all candidate accounts minus 

transfers between accounts, refunds, 

rebates, reimbursements, checks 

returned for insufficient funds, proceeds 

of loans and other similar amounts.

(3) Notwithstanding the payment of 

any amounts to the United States 

Treasury under this section, the * 

Commission may make surplus 

repayment determination(s) which 

require repayment in accordance with 

11 CFR 9038.2.

§ 9038.4 Extensions of time.

(a) It is the policy of the Commission 

that extensions of time under 11 CFR 

Part 9038 shall not be routinely granted.

(b) Whenever a candidate has a right 

or is required to take action within a 

period of time prescribed by 11 CFR Part 

9038 or by notice given thereunder, the 

candidate may apply in writing to the 

Commission for an extension of time in 

which to exercise such right or take such 

action. The candidate shall demonstrate 

in the application for extension that 

good cause exists for his or her request.

(c) An application for extension of 

time shall be made at least 7 calendar 

days prior to the expiration of the time 

period for which the extension is sought. 

The Commission may, upon a showing 

of good cause, grant an extension of 

time to a candidate who has applied for 

such extension in a timely manner. The 

length of time of any extension granted 

hereunder will be decided by the 

.Commission and may be less than the 

amount of time sought by the candidate 

in his or her application.

(d) If a candidate fails to seek an 

extension of time, exercise a right or 

take a required action prior to the 

expiration of a time period prescribed 

by 11 CFR Part 9038 the Commission 

may, on the candidate’s showing of 

excusable neglect:

(1) Permit such candidate to exercise 

his or her right(s), or take such required 

action(s) after the expiration of the 

prescribed time period; and

/ Rules and Regulations

(2) Take into consideration any 

information obtained in connection with 

title exercise of any such right or taking 

of any such action before making 

decisions or determinations under 11 

CFR Part 9038.

PART 9039— REVIEW AND

INVESTIGATION AUTHORITY

Sec.

9039.1 Retention of books and records.

9039.2 Continuing review.

9039.3 Examinations and audits; 

investigations.

Authority: Pub. L. 93-443, title FV, sec.

408(c), 88 Stat. 1301, as amended by Pub. L. 

94-283, title III, sec. 304(b), 90 Stat. 499 (26 

U.S.C. 9039).

§ 9039.1 Retention of books and/ecords.

The candidate and his or her 

authorized committee(s) shall keep all 

books, records and other information 

required under 11 CFR 9033.11,9034.2 

and Part 9036 for a period of three years 

pursuant to 11 CFR 102.9(c) and shall 

furnish such books, records and 

information to the Commission on 

request.

§ 9039.2 Continuing review.

(a) In reviewing candidate 

submissions made under 11 CFR Part 

9036 and in otherwise carrying out its 

responsibilities under this subchapter, 

the Commission may routinely consider 

information from the following sources:

(1) Any and all materials and 

communications which the candidate 

and his or her authorized committee(s) 

submit or provide under 11 CFR Part 

9036 and in response to inquiries or 

requests of the Commission and its staff;

(2) Disclosure reports on file with the 

Commission; and

(3) Other publicly available 

documents.

(b) In carrying out the Commission’s 

responsibilities under this subchapter, 

Commission staff may contact 

representatives of the candidate and his 

or her authorized committee(s) to 

discuss questions and to request 

documentation concerning committee 

activities and any submission made 

under 11 CFR Part 9036.

§ 9039.3 Examinations and audits;

investigations.

(a) General. (1) The Commission will 

consider information obtained in its 

continuing review under 11 CFR 9039.2 

in making any certification, 

determination or finding under this 

subchapter. If the Commission decides 

by an affirmative vote of four of its 

members that additional information 

must be obtained in connection with any 

such certification, determination or
Federal Register / Vol. 48, No. 25 / Friday, February 4, 1983 / Rules and Regulations 5251

finding, it will conduct a further inquiry. 

A decision to conduct an inquiry under 

this section may be based on 

information that is obtained under 11 

CFR 9039.2, received by the Commission 

from outside sources, or otherwise 

ascertained by the Commission in 

carrying out its supervisory 

responsibilities under the Presidential 

Primary Matching Payment Account Act 

and the Federal Election Campaign A ct

(2) An inquiry conducted under this 

section may be used to obtain 

information relevant to candidate 

eligibility, matchability of contributions 

and repayments to the United States 

Treasury. Information obtained during 

such an inquiry may be used as the 

basis, or partial basis, for Commission 

certifications, determinations and 

findings under 11 CFR Parts 9033, 9034, 

9036 and 9038. Information thus 

obtained may also be the basis of, or be 

considered in connection with, an 

investigation under 2 U.S.C. 437g and 11 

CFR Part 111.

(3) Before conducting an inquiry under 

this section, the Commission will 

attempt to obtain relevant information 

under the continuing review provisions 

of 11 CFR 9039.2. Matching payments 

will not be withheld pending die results 

of an inquiry under this section unless 

the Commission finds patent 

irregularities suggesting the possibility 

of fraud in materials submitted by, or in 

the activities of, the candidate or his or 

her authorized committee(s).

(b) Procedures. (1) The Commission 

will notify the candidate of its decision 

to conduct an inquiry under this section. 

The notice will summarize the legal and 

factual basis for the Commission’s 

decision.

(2) The Commission’s inquiry may 

include, but is not limited to, the 

following:

(i) A field audit of the candidate’s 

books and records;

(ii) Field interviews of agents and 

representatives of the candidate and his 

or her authorized committee(s);

(iii) Verification of reported 

contributions by contacting reported 

contributors;

(iv) Verification of disbursement 

information by contacting reported 

vendors;

(v) Written questions under order;

(vi) Production of documents under 

subpoena;

(vii) Depositions.

(3) The provisions of 2 U.S.C. 437g and 

11 CFR Part 111 will not apply to 

inquiries conducted under this section 

except that the provisions of 11 CFR 

111.12 through 111.15 shall apply to any 

orders or subpoenas issued by die 

Commission.

Dated: January 24,1983.

Lee Ann Elliott,

Vice Chairman, Federal Election

Commission.

[FR Doc. 83-2268 Filed 2-3-83; 8:45 am]

BILLING CODE 6715-01-M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

18 CFR Part 157

[Docket No. RM81-19]

Publication of Project Cost Limits

Under Blanket Certificates

a g e n c y : Federal Energy Regulatory 

Commission DOE.

ACTION: Order of the Director, OPPR.

SUMMARY: Pursuant to the authority 

delegated by 18 CFR 375.307(t), the 

Director of the Office of Pipeline and 

Producer Regulation computes and 

publishes natural gas pipeline project 

cost and annual dollar limits specified in 

Table I of 157.208(d) and Table II of 

157.215(a) for each calendar year.

EFFECTIVE d a t e : January 1,1983.

FOR FURTHER INFORMATION CONTACT:

Kenneth A. Williams, Director, OPPR, 

(202) 357-8500.

SUPPLEMENTARY INFORMATION:

Section 157.208(d) of the 

Commission’s Regulations provides for 

project cost limits applicable to 

construction, acquisition, operation and 

miscellaneous rearrangement of 

facilities (Table I) authorized under the 

blanket certificate procedure (Order No. 

234,19 FERC fl 61,216). Section 

157.215(a) specifies the calendar year 

dollar limit which may be expended on 

underground storage testing and 

development (Table II) authorized under 

the blanket certificate. Section 

157.208(d) requires that the “limits 

specified in Tables I and II shall be 

adjusted each calendar year to reflect 

the ‘GNP implicit price deflator’ 

published by the Department of 

Commerce for the previous calendar 

year.”

Pursuant to § 375.307(t) of the 

Commission’s Regulations, the authority 

for the publication of such cost limits, as 

adjusted for inflation, is delegated to the 

Director of the Office of Pipeline and 

Producer Regulation. The cost limits for 

calendar years 1982 and 1983, as 

published in Table I of § 157.208(d) and 

Table II of § 157.215(a), are hereby 

issued.

List of Subjects in 18 CFR Part 157

Natural gas.

Issued: January 28,1983.

Kenneth A. Williams,

Director, Office of Pipeline and Producer

Regulation.

T a b l e I

Limit

Auto, protect

cost limit

(col. 1)

Prior notice

project cost

emit (col. 2)

Yean

198?......................... $4,200,000

4,500,000

$12,000,000

1983......................... 12,800,000

T a b l e II

Limit

Yean

1982............................................ $2,700,000

1983.......................................... 2,900,000

[FR Doc. 83-3004 Filed 2-3-83; 8:46 am] 

BILLING CODE 6717-01-M

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 5

Delegations of Authority and

Organization; Director, Bureau of

Foods, et al.

AGENCY: Food and Drug Administration. 

ACTION: Final rule.

SUMMARY: The Food and Drug 

Administration (FDA) is amending the 

regulations for delegations of authority 

on food- and color-related matters to 

update current delegations and add new 

delegations to Bureau of Foods’ officials. 

The new delegations of authority will 

expedite the administrative handling of 

certain routine actions.

EFFECTIVE DATE: February 4,1983.

FOR FURTHER INFORMATION CONTACT:

Robert L. Miller, Office of Management 

and Operations (HFA-340), Food and 

Drug Administration, 5600 Fishers Lane, 

Rockville, MD 20857, 301-443-4976. 

SUPPLEMENTARY INFORMATION: In $ 5.31 

(21 CFR 5.31) a new paragraph (e) is 

added delegating to the Director and 

Deputy Director of the Bureau of Foods 

the authority to issue 180-day tentative 

responses to citizen petitions on food 

matters under § 10.30(e)(2)(iii) (21 CFR 

10.30(e)(2)(iii)).

In § 5.81 (21 CFR 5.61) the section 

heading is revised, and the introductory