Thursday

November 1, 1979

Part II

Federal Election 

Commission

Presidential Election Campaign Fund and

Federal Financing of Presidential

Nominating Conventions; Transmittal of

Regulations to Congress
6 3 0 3 6 ^ Federal Register / Vol. 44, No. 213 / Thursday^ N ovem ber 1 , 1979 / Rules and Regulations

FEDERAL ELECTION COMMISSION

11 CFR Parts 107,114,9008

Presidential Election Campaign Fund 

and Federal Financing of Presidential 

Nominating Conventions

AGENCY: Federal Election Commission.

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

Regulations to Congress.

SUMMARY: FEC Regulations relating to 

Federal Financing of Presidential 

Nominating Conventions have been 

revised and transmitted to Congress 

pursuant to 26 U.S.C. 9009(c). The 

revisions have been renumbered 

according to the U.S. Code section upon 

which each regulation is based. The 

Commission’s experience in 

administering the provisions relating to 

federal financing of conventions at 

Chapter 95 of Title 26, U.S. Code, as well 

as comments solicited from the public at 

hearings held on June 20,1978 (43 FR 

23587, May 31,1978), indicated the need 

for greater clarity in the regulations, 

especially with regard to the activities of 

and reporting by host committees. 

Further information on the intended 

effect of the revised regulations is 

contained in the supplementary 

information below.

26 U.S.C. 9009(c) requires tht any rule 

or regulation prescribed by the 

Commission to implement Chapter 95 of 

Title 26, U.S. 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 October 26, 

1979.

D A TE : Further action, including the 

announcement of an effective date and 

deletion of existing regulations in 

Subchapter B of 11 CFR Chapter I, will 

be taken by the Commission after these 

regulations have been before the 

Congress 30 legislative days in 

accordance with 26 U.S.C. 9009(c).

FOR FURTHER INFORMATION C O N TA C T:

Ms. Patricia Ann Fiori, Assistant 

General Counsel, 1325 K Street, 

Northwest, Washington, D.C. 20510,

(202) 523^-4143.

SUPPLEM ENTARY INFORMATION:

Explanation and Justification of 

Regulations Concerning Federal 

Financing of Presidential Nominating 

Conventions, Part 9008

§ 9008.1 Scope.

This section sets forth the scope of 11 

CFR Part 9008 which interprets 2 U.S.C.

§ 437 and 26 U;S.C. § 9008.

§ 9008.2 Definitions

Subsection (a) follows the definition

at 26 U.S.C. 9002(3). *

Subsection (b) follows the definition

at 26 U.S.C. 9002(5).

Subsection (c) follows the definition

at 26 U.S.C. 9002(6).

Subsection (d) follows the definition

at 26 U.S.C. 9002(7).

Subsection (e) follows the definition

at 2 U.S.C. 431 (k).

Subsection (f) follows the definition at

26 U.S.C. 9008(8).

Subsection (g) provides a definition of

the term “nominating convention,”

w hich m eans any meeting, including a

convention or caucus, held by a political

party at the national level to choose that

p arty’s presidential nominee.

Subsection (h) defines the term

“S ecretary” to m ean the S ecretary of the

Treasury of the United States.

§ 9008.3 Entitlement to Payments from

the Fund

Subsection (a) follows 26 U.S.C. 

9008(b)(1) which entitles major parties to 

receive with respect to any presidential 

nominating convention payments which 

shall not in the aggregate exceed 

$2,000,000 (as adjusted by the Consumer 

Price Index under 26 U.S.C. 9008(b)(5) 

and 11 CFR 9008.4(a)).

Subsection (b) follows 26 U.S.C.

9008(b)(2) which entitles minor parties

to receive an amount equal to a portion

of a m ajor p arty’s entitlem ent on the

basis of the number of votes received by 

the minor party in the preceding

presidential election.

§ 9008.4 Adjustment o f Entitlement

Subsection (a) follows 26 U.S.C.

9008(b)(5).

Subsection (b) provides for an

adjustm ent to a national com m ittee’s

entitlem ent on the basis of income

earned through the investm ent of public

funds. In calculating the amount of the

adjustment, a deduction will be m ade

for ta x paid on such income.

Subsection (c) provides for an

adjustm ent to a national com m ittee’s

entitlem ent on the basis of private

contributions received by the national

com m ittee to defray convention

expenses.

§ 9008.5 Limitation on Payments

This section follows 26 U.S.C. 

9008(b)(4).

§ 9008.6 Use o f Funds

Subsection (a) sets forth the

permissible uses for public funds

received by the national com m ittee.

Subsection (a)(1) follows 26 U.S.C. 

9008(c)(1).

Subsection (a)(2) follows 26 U.S.C. 

9008(c)(2), which permits the use of 

public funds to repay loans, the 

proceeds of which were used to defray 

convention expenses. Subsection (a)(2) 

adds the requirement that where public 

funds are used to pay the interest on 

such loans, the interest must be at a 

commercially reasonable rate.

Subsection (a)(3) follows 26 U.S.C. 

9008(c)(2), which permits the use of 

public funds to restore funds which 

were used to defray convention 

expenses. Restoration of advances from 

the national committee are specifically 

permitted where those advances are 

used to defray convention expenses.

Subsection (a)(4) sets forth a list of 

expenses which are convention related 

and which may be defrayed with public 

funds. The list of expenses does not, 

however, include all convention 

expenses. The national committee is 

thus not limited to using its public funds 

only for the expenses listed but may 

also use public funds to defray any other 

expenses with respect to the convention.

Subsection (a)(5) permits a national

com m ittee to invest public funds;

Provided, T hat the income generated

from the investm ent is used to defray

convention expenses.

Subsection (b) sets forth certain

prohibitions in the use of public funds

by a national com m ittee.

Subsection (b)(1) follows 26 U.S.C. 

9008(c), which prohibits the use of public 

funds to defray the expenses of any 

candidate or delegate participating in 

the convention. An exception is made 

for individuals who are participating in 

the convention as official party 

personnel, but who are simultaneously 

participating as delegates or alternate 

delegates. Since such individuals are 

participating in the convention as 

official personnel, there should be no 

prohibition against using public funds to 

defray their expenses. It does not 

appear that in prohibiting the use of 

public funds to defray the expenses of 

delegates, Congress intended to also bar 

the use of public funds to defray 

expenses of official convention 

personnel who happen to be serving as 

delegates or alternate delegates.

Subsection (b)(1) also specifically

provides that candidates, delegates and
Federal R egister / Vol. 44, No. 213 / Thursday, N ovem ber 1, 1979 / Rules and Regulations 6 3 0 3 7

alternative delegates may attend official 

party convention activities such as 

receptions and dinners, which are paid 

for from public funds without violating 

26 U.S.C. 9008(c). Attendance at such 

activities by a candidate or delegate 

does not amount to the prohibited use of 

public funds to defray expenses of that 

candidate or delegate.

Subsection (b)(2) prohibits the use of 

public funds to defray expenditures that 

violate federal or State law or any 

regulation prescribed thereunder.

Subsection (b)(3) prohibits the use of 

public funds to pay civil or criminal 

penalties imposed pursuant to the Act. 

This prohibition is necessary to prevent 

the use of federal funds to pay penalties 

imposed under federal law. In order to 

permit the payment of such penalties, 

subsection (b)(3) provides that amounts 

received or expended to pay such 

penalties will not be considered 

contributions or expenditures for certain 

purposes. Such amounts will not be 

subject to the contribution and 

expenditure limitations under U.S.C. 

441a, and 26 U.S.C. 9008(d), nor will they 

be considered private contributions 

which diminish the amount of public 

funds the committee may receive under 

11 CFR 9008.8(a)(2). However, amounts 

received or expended to pay criminal or 

civil penalties are subject to the 

prohibitions of 2 U.S.C. 441b, 441c, 441e, 

441f, and 441g; and well as 11 CFR 110.4 

and Parts 114 and 115.

§ 9008.7 Limitation o f expenditures.

Subsections (a)(1) and (a)(2) follow 2 

U.S.C. 9008(d) which provides that major 

and minor parties may not incure 

expenditures with respect to a 

presidential nominating convention in 

excess of the amount of a major party’s 

entitlement under 26 U.S.C. 9008(b).

Subsection (a)(3) interprets 26 U.S.C. 

9008(d) which authorizes the 

Commission to permit a national 

committee to exceed the expenditure 

limitations with regard to its convention 

if, due to extraordinary and unforeseen 

circumstances, the excessive 

expenditures are necessary to assure the 

effective operation of the convention. 

Subsection (a)(3) clarifies the phrase 

“extraordinary and unforeseen 

circumstances” by giving two specific 

examples of such circumstances—a 

natural disaster or a catastrophic 

occurrence at the convention site. The 

legislative history of the statute which 

established public financing for national 

nominating conventions indicates that 

the phrase “extraordinary and 

unforeseen circumstances” was 

intended to include “events of a 

catastrophic nature (which) 

overwhelmingly imperil the operation of

a presidential nominating convention"

(S. Rep. No. 93-1237, 93rd Cong., 2nd 

Sess., 107 (1974)). The excessive 

expenditures must be defrayed with 

private contributions which are subject 

to all prohibitions, limitations and 

requirements of the Act.

Subsection (b) permits government 

agencies to make certain expenditures 

for facilities or services with respect to a 

convention without the value of the 

facilities or services counting toward the 

party’s expenditure limitation. For 

example, under this section, a city may 

contract with the national committee to 

provide certain facilities and services as 

part of an overall package to attract the 

convention to that city. If such expenses 

were counted against the party’s limit, 

that limit would be unrealistically low. 

Further, it appears that Congress in 

deciding upon a dollar figure for 

expenditure limitations, took into 

consideration only those expenses 

which were actually paid by the 

national committee and ignored the 

value of facilities and services provided 

by the convention city and the host 

committee in that city. Also, under 

Subsection (b), the agency which 

provides facilities or services to the 

convention may not obtain goods or 

services from other persons at less than 

fair market value, except for reductions 

or discounts made in the ordinary 

course of business. This restriction is 

imposed in order to prevent the 

government agency from acting as a 

conduit for prohibited contributions.

(See generally A 0 1975-1)

Subsection (c)(1) makes it clear that 

retail businesses may give normal 

discounts to a national committee with 

respect to the convention. In order to 

prevent illegal contributions, it is 

required that such discounts be in the 

ordinary course of business. In enforcing 

this standard, the Commission would 

examine whether such discounts were in 

accordance with standard practice 

based on the quantity of similar goods 

or services sold or provided in similar 

transactions. Banks are, however, 

prohibited from providing such 

discounts. Under 2 U.S.C. 441b all banks 

are prohibited from making 

contributions or expenditures in 

connection with a federal election, and 

national banks are prohibited from 

making contributions or expenditures in 

connection with any election whether 

federal, state or local. In view of this 

broad prohibition, particularly with 

regard to national banks, the 

Commission has decided that banks 

should not be permitted to give 

discounts to the national committee with 

respect to its convention.

Subsection (c)(2) permits local 

businesses to give away samples and 

promotional items to convention 

attendees without such gifts being 

treated as illegal contributions or 

expenditures. A local business is 

defined as any business within the 

Standard Metropolitan Statistical Area 

(SMSA) of the convention city. The 

SMSA is used by agencies in 

administering a wide variety of federal 

loan and grant programs. It provides a 

uniform statistical standard for 

designating the economic and social unit 

which centers around a city. Local 

banks are also permitted to give away 

samples and promotional items. 

Inasmuch as the samples and items must 

be of nominal value and provided solely 

for bona fide advertising or promotional 

purposes, rather than for political 

purposes, the Commission did not 

consider this activity to be prohibited by 

2 U.S.C. 441b.

Subsection (d) deals with host 

committees, which are defined as 

nonprofit organizations whose basic 

purpose is the promotion of its city’s 

commerce and image. The host 

committee in the convention city 

permitted to receive and make two 

types of contributions and 

expenditures—those aimed at promoting 

the city and its commerce and those for 

the purpose of defraying convention 

expenses. Both types of contributions 

and expenditures by host committees do 

not count as contributions to the party 

or as expenditures subject to the party’s 

limitation. (See Explanation and 

Justification of 11 CFR 9008.7(b).)

A wide variety of persons including 

individuals, local businesses, local 

government agencies, and union locals, 

are permitted to donate funds to the host 

committee for use in promoting the city 

and its commerce. No limitations are 

placed on the size of such donations. Far 

greater restrictions are, however, placed 

on funds received and expended to 

defray convention expenses. Only local 

retail businesses may donate funds for 

use by the host committee to defray 

convention expenses and these 

donations are limited to an amount 

proportionate to the commercial return 

reasonably expected during the life of 

the convention by the particular 

business. For purposes of this 

subsection, the life of the convention is 

deemed to begin seven days before the 

opening of the convention and to end 

three days after the close of the 

convention. This time period coincides 

with the dates on which the majority of 

convention attendees normally arrive 

and depart.
6 3 0 3 8 Federal R egister / Vol. 44, No. 213 / Thursday, N ovem ber 1, 1979 / Rules and Regulations

The restrictions concerning who m ay

donate funds to defray convention

expenses and the amounts which m ay

be donated are n ecessary to insure that

such donations are com m ercially, rather

than politically m otivated. Further, the

national com m ittee of a political party is

entitled to receive public m oney to pay

for its convention and is in turn limited

in the amount w hich it m ay spend on

that convention. D efrayal of convention

expenses by a host com m ittee is

intended to be a very narrow exception

to the statutory limitation on convention

expenses.

Finally, under subsection (d), all local 

retail businesses, whether incorporated 

or unincorporated, may make donations 

to the host committee. While 

incorporated businesses are prohibited 

by 2 U.S.C. 441b from making 

contributions or expenditures in 

connection with a federal election, 

donations by such corporations to a host 

committee in accordance with the 

restrictions set forth in subsection (d) 

are sufficiently akin to a commercial 

transaction to fall outside the scope of 

that prohibition.

Subsection (e) provides that amounts 

paid by candidates from campaign funds 

or by delegates or others from personal 

funds to attend the convention do not 

count against the national committee’s 

expenditure limitation. Since 26 U.S.C. 

9008(c) prohibits the use of public funds 

to pay the expenses of any candidate or 

delegate to participate in the convention 

such amounts should not count against 

the national committee’s expenditure 

limitation. Similarly, if the expenses are 

paid by a State or local party committee, 

such amounts do not count against the 

national committees limitations.

Subsection (f) follows 26 U.S.C. 

9008(d)(4).

§ 9008.8 Payment and Certification

Subsection (a) m akes clear that the

public financing of conventions is

optional, and accordingly, the national

com m ittee of a political party m ay elect

to receive all, part, or none of the

amounts which it is entitled to receive.

The com m ittee is free to accep t

contributions for the convention so long

as the amount qf contributions when

added to the amount of public funds

requested, does not exceed the

expenditure limitation of $2 million.

Subsection (b) sets forth the eligibility 

requirements which a national 

committee must satisfy in order to 

receive public funds. The Commission’s 

authority to establish such requirements 

derives from 26 U.S.C. 9008(g). Section 

9008(g) provides that a party which 

requests funds shall hie a statement 

containing such information as the

Commission may require and that the 

Commission shall process that request 

according to procedures which it 

establishes. Under subsection (b), the 

national committee is required to 

establish a convention committee which 

will receive all public funds to which the 

national committee is entitled and 

which will be responsible for conducting 

the arrangements for the convention.

The establishment of a convention 

committee is a necessary requirement in 

order to enable the Commission to know 

who has initial responsibility for 

handling public funds and incurring 

expenditures. (Note however, that the 

national committee remains ultimately 

responsible for paying civil and criminal 

penalties under the Act and for making 

repayment 11 CFR 9008.8(b)(4) (viii) and 

9008.10.) The convention committee is 

required to agree to certain conditions 

prior to receiving public funds and this 

agreement is also binding on the 

national committee. The conditions to 

which the convention committee must 

agree include compliance with 

expenditure limitations, filing 

convention reports, payment of civil and 

criminal penalties, documenting 

convention expenses, submitting to 

audits, etc.

With regard to documenting 

convention expenses, under subsection

(b)(8)(V), the convention committee has 

the burden of proving that public funds 

were used to defray convention 

expenses. This burden consists of two 

elements—the committee must show (1) 

that an expenditure was actually made 

or incurred; and (2) that an expenditure 

was with respect to or in connection 

with the convention. The committee will 

be able to show an expenditure was 

actually made by retaining proper 

documentation for that expenditure. 

Generally, the minimum acceptable 

documentation for all expenditures, 

except petty cash fund expenditures, is 

a cancelled check to the person who 

provided the goods or services to the 

convention. In addition to proper 

documentation, the committee may be 

required to provide an explanation of 

the connection between the expenditure 

and the convention. This requirement is 

designed to insure that public funds are 

spent on convention related 

expenditures. Under 26 U.S.C. 9008(b)(1), 

a national committee is entitled to 

public funds “with respect to [a) 

presidential nominating convention.” 

Those funds must hence be spent only 

on convention related expenditures. 

Repayment is required for expenditures 

which are not properly documented or 

are not in connection with the 

convention. (See 11 CFR 9006.10)

Subsection (c) follows 26 U.S.C 

9008(b)(5).

Subsection (d) follows 26 U.S.C. 

9008(e).

Subsection (e) follows 26 U.S.C. 

9008(g).

§ 9008.9 Examination and Audits

Section 9008.9 follows 26 U.S.C. 

9008(g), which provides that 

certifications by the Commission shall 

be subject to an examination and audit 

conducted no later than December 31 of 

the year of the convention. Since the 

convention committee will be the 

recipient of public funds, this section 

provides for an audit of that committee.

This section also provides for an 

examination and audit of each host 

committee. Such committees are 

permitted to receive donations to defray 

convention expenses. It is hence 

necessary for the Commission to audit 

them in order to insure that those 

donations were properly raised and 

spent.

§ 9008.10

This section implements 26 U.S.C.

9008(h) which gives the Commission the 

same authority to require repayments as 

it has under 26 U.S.C. 9007(b). 

Accordingly, this section follows 9007(b) 

by requiring repayments under 

subsection (a), if the payments to the 

national committee exceed its 

entitlement, under subsection (b), if the 

national committee’s convention 

expenses exceed its entitlement under 

subsection (c), if the national committee 

accepted private contributions which 

when added to the payments received 

exceed its expenditure limitation, or 

under subsection (d), if any public funds 

were used for unlawful purposes.

Subsection (d) also requires a 

repayment for expenditures which are 

not properly documented. (See 

Explanation and Justification of 

§ 9008.8(b).)

Subsection (e) has been added to fill a 

void in the statutory repayment 

provisions by specifying that the 

committee may not retain public monies.

Subsection (f) follows 26 U.S.C. 

9007(b)(5).

Subsection (g) follows 26 U.S.C. 

9007(c).

§ 9008.11 Resolution o f Disputes

Concerning Repayment

This section sets forth a procedure

concerning disputes with regard to

repaym ents required by the

Commission.

The Federal Election Campaign Act 

does not provide that Administrative 

Procedure Act (APA) requirements for 

adjudicative hearings (5 U.S.C. 554-557)
Federal R egister / Vol. 44, No. 213 / Thursday, N ovem ber 1, 1979 / Rules and Regulations 6 3 0 3 9

apply to determinations by the 

Commission. While APA requirements 

for a full trial type hearing may not be 

applicable, procedural due process 

requirements mandate that prior to 

repayment the committee be afforded 

some type of opportunity to demonstrate 

to the Commission that repayment is not 

warranted. (See K. Davis,

Administrative Law of the Seventies.

§ 7.00-1-3 (Supp. 1977); Mathews v. 

Eldridge, 424 U.S.C. 319 (1976).)

The procedure set forth in this section 

fulfills due process requirements. It 

includes the following elements: Notice 

of the legal and factual matters upon 

which the Commission is relying; an 

opportunity for the committee to present 

in writing evidence and reasons why 

repayment is not warranted; a final 

determination by the Commission on the 

basis of all evidence presented; and a 

statement of reasons underlying the 

Commission’s determination. (It should 

be noted even if the APA requirements 

were applicable to determinations by 

the Commission, the APA itself contains 

a significant exception to the 

requirement for a full trial type hearing 

by providing for the submission of 

evidence in written form under 5 U.S.C. 

556(d).)

§ 9008.12 Registration and Reports

Section 9008.12 derives from the 

requirements of 2 U.S.C. 437. Subsection

(a) provides for registration and 

reporting by host committees or other 

organizations or groups which deal with 

officials of a national political party 

with respect to matters involving a 

Presidential nominating convention. No 

registration or reporting is, however, 

required for host committees, 

organizations or groups which are 

unsuccessful in attracting the 

convention to a city.

Subsection (b) requires the convention 

committee of each party which receives 

public funds to register and file reports 

with the Commission. Committees of 

parties which do not receive public 

funds must also register and file reports 

with the Commission. Reports must be 

filed on a quarterly basis except that a 

post convention report is to be filed in 

lieu of any quarterly report due within 

20 days before or after the convention. 

Under 2 U.S.C. 437, only a post, 

convention report is explicitly required. 

Although there is no specific statutory 

requirement for any other report this 

section requires quarterly reporting prior 

to the convention in order to monitor the 

receipt and spending of private 

contributions and the disbursement of 

Federal funds by a national committee.

Subchapter F, Part 9008 is added to 11 

CFR, Chapter I, to read as follows:

CHAPTER I— FEDERAL ELECTION 

COMMISSION

Subchapter F— Presidential Election 

Campaign Fund, Federal Financing of 

Presidential Nominating Conventions, 

Part 9008

PART 9008—-FEDERAL FINANCING OF 

PRESIDENTIAL NOMINATING 

CONVENTIONS

Sec.

9008.1 Scope.

9008.2 Definitions.

9008.3 Entitlement to payment from the 

Fund.

9008.4 Adjustment to entitlement.

9008.5 Limitation on payments.

9008.6 Use of funds.

9008.7 Limitation of expenditures.

9008.8 Payment and certification 

procedures.

9008.9 Examination and audits.

9008.10 Repayments.

9008.11 Resolution of disputes concerning 

repayments.

9008.12 Registration and reports.

Authority: Sec. 406(a), Pub. L. 93-443, 88

Stat. 1294-96, as amended by sec. 303, 307(a), 

Pub. L. 94-283, 90 Stat. 498, 501 (26 U.S.C. 

9008).

§ 9008.1 Scope.

(a) This part interprets 2 U.S.C. 437 

and 26 U.S.C. 9008. Under 26 U.S.C. 

9008(b), the national committees of both 

major and minor parties are entitled to 

public funds to defray expenses incurred 

with respect to a Presidential 

nominating convention. Under 26 U.S.C. 

9008(d), expenditures with regard to 

such a convention by a national 

committee receiving public funds are 

limited to $2,000,000, as adjusted by the 

Consumer Price Index. New parties are 

not entitled to receive any public funds 

to defray convention expenses.

(b) Under 2 U.S.C. 437, each 

committee or organization which 

represents a national party in making 

arrangements for that party’s 

presidential nominating convention is 

required to file disclosure reports. This 

reporting obligation extends to all such 

committees or organizations, regardless 

of whether or not public funds were 

used or available to defray convention 

expenses. In addition, 2 U.S.C. 437 

requires reports from each committee or 

organization which represents a State, a 

political subdivision or any other group 

of persons in dealing with national 

political party officials with respect to 

matters involving a presidential 

nominating convention held in the State 

or subdivision. Under this provision, the 

host committee in the convention city is 

required to report contributions or 

expenditures with respect to a 

presidential nominating convention.

However, unsuccessful efforts to attract 

a convention need not be reported by 

any city, committee or other 

organization.

§ 9008.2 Definitions.

(a) “Commission” means the Federal 

Election Commission, 1325 K Street, 

N.W., Washington, D.C. 20463.

(b) “Fund” m eans the Presidential

Election Campaign Fund established by

26 U.S.C. 9006(a).

(c) “Major party” means, with respect 

to any presidential election, a political 

party whose candidate for the office of 

President in the preceding presidential 

election received, as the candidate of 

such party, 25 percent or more of the 

total number of popular votes received 

by all candidates for such office.

(d) “M inor party” m eans, with respect

to any presidential election, a political

party w hose candidate for the office of

President in the preceding presidential

election received, as the candidate of

such party, 5 percent or more, but less

than 25 percent, of the total num ber of

popular votes received by all candidates

for such office.

(e) “N ational com m ittee” m eans the

organization which, by virtue of the bylaw s of the political party, is responsible

for the day to day operation of that

party at the national level. (2 U.S.C.

431(k)).

(f) “N ew party” m eans, with respect

to any presidential election, a political

party which is neither a m ajor party nor

a minor party.

(g) “Nominating convention” m eans a

convention, caucus or other meeting

w hich is held by a political party at the

national level and w hich chooses the

presidential nominee of the party

through selection by delegates to that

convention or through other sim ilar

m eans.

(h) "S ecretary ” m eans the Secretary

of the T reasury of the United States.

§ 9008.9 Entitlement to payments from

the fund.

(a) Major parties. Subject to the 

provisions of 11 CFR Part 9008, the 

national committee of a major party 

shall be entitled to receive payments 

under 11 CFR 9008.8 with respect to any 

presidential nominating convention, in 

amounts which, in the aggregate, shall 

not exceed $2 million, as adjusted by the 

Consumer Price Index under 11 CFR 

9008.4(a).

(b) Minor parties. Subject to the 

provisions of 11 CFR Part 9008, the 

national committee of a minor party 

shall be entitled to payments under 11 

CFR 9008.8 with respect to any 

presidential nominating convention in 

amounts which, in the aggregate, shall
6 3 0 4 0 Federal R egister / V ol. 44, No. 213 / Thursday, N ovem ber 1, 1979 / Rules and Regulations

not exceed an amount which.bears the 

same ratio to the amount which the 

national committee of a major party is 

entitled to receive under 11 CFR 9008.4 

as the number of popular votes received 

in the preceding presidential election by 

that minor party’s presidential 

candidate bears to the average number 

of popular votes received in the 

preceding presidential election by all of 

the major party presidential candidates.

§ 9008.4 Adjustment of entitlement.

(a) The entitlements established by 11 

CFR 9008.3 shall be adjusted on the 

basis of the Consumer Price Index 

pursuant to the provisions of 2 U.S.C. 

441a(c).

(b) The entitlements established by 11 

CFR 9008.3 shall be decreased by the 

amount of income generated by the 

investment of public funds under 11 CFR

9008.6(a)(5), less any tax paid on such 

income.

(c) The entitlements established by 11 

CFR 9008.3 shall be adjusted so as not to 

exceed the difference between the 

expenditure limitations of 11 CFR 

9008.7(a) and the amount of private 

contributions received under § 9008.8(a) 

by the national committee of a political 

party. In calculating these adjustments, 

amounts expended by Government 

agencies and municipal corporations in 

accordance with 11 CFR 9008.7(b); in 

kind contributions by businesses to the 

national committee or convention 

committee in accordance with 11 CFR 

9008.7(c); expenditures by host 

committees in accordance with 11 CFR 

9008.7(d); expenditures to participate in 

or attend the convention under 11 CFR 

9008.7(e); and legal and accounting 

services rendered in accordance with 11 

CFR 9008.7(f) will not be considered 

private contributions or expenditures 

counting against the limitation.

§ 9008.5 Limitation on payments.

Payments to. the national committee of 

a major party or a minor party under 11 

CFR 9008.8 from the accoimt designated 

for such committee shall be limited to 

the amounts in such account at the time 

of payment.

§ 9008.6 Use of funds.

(a) Permissible Uses. Any payment 

made under 11 CFR 9008.8 shall be used 

only for the following purposes:

(1) Such paym ent m ay be used to

defray convention expenses (including

the paym ent of deposits) incurred by or

on behalf of the national com m ittee

receiving such paym ents; or

(2) Such paym ent m ay be used to

repay the principal and interest, at a

com m ercially reasonable rate, on loans

the proceeds of which were used to 

defray convention expenses; or

(3) Such payment may be used to 

restore funds (including advances from 

the national committee to the 

convention committee), other than 

contributions to the committee for the 

purpose of defraying convention 

expenses, where such funds were used 

to defray convention expenses.

(4) Convention expenses includes all 

expenses incurred by or on behalf of a 

political party national committee or 

convention committee with respect to 

and for the purpose of conducting a 

presidential nominating convention or 

convention-related activities. Such 

expenses include, but are not limited to:

(i) Expenses for preparing, 

maintaining, and dismantling the 

physical site of the convention, 

including rental of the hall, platforms 

and seating, decorations, telephones, 

security, convention hall utilities, etc.;

(ii) Salaries and expenses of 

convention committee employees, 

volunteers and similar personnel, whose 

responsibilities involve planning, 

management or otherwise conducting 

the convention;

(iii) Salary or portion of the salary of 

any national committee employee for 

any period of time during which, as a 

major responsibility, that employee 

performs services related to the 

convention;

(iv) Expenses of national committee 

employees, volunteers or other similar 

personnel if those expenses were 

incurred in the performance of services 

for the convention in addition to the 

services normally rendered to the 

national committee by such personnel;

(v) Expenses for conducting meetings 

of or related to committees dealing with 

the conduct and operation of the 

convention, such as rules, credentials, 

platform, site, contests, call, 

arrangements and permanent 

organization committees, with such 

expenses including printing materials 

and rental costs for meeting space.

(vi) Expenses incurred in seeming a 

convention city and facility;

(vii) Expenses incurred in providing a 

transportation system in the convention 

city for use by delegates and other 

persons attending or otherwise 

connected with the convention;

(viii) Expenses for entertainment 

activities which are part of official 

convention activity sponsored by the 

national committee, such expenses to 

include (but not limited to) dinners, 

concerts, and receptions; except that 

expenses for the following activities are 

excluded: (A) Entertainment activities 

sponsored by or on behalf of candidates 

for nomination to the office of President

or Vice President, or S tate delegations;

(B) entertainm ent activities sponsored

by the national com m ittee if the purpose

of the activity is solely for national

com m ittee business, such as fundraising

events, or selection of new national

com m ittee officers; (C) entertainm ent

activities sponsored by persons other

than the national com m ittee; and (D)

entertainm ent activities prohibited by

law ;

(ix) Expenses for-printing convention

program s, a journal of proceedings,

agendas, tickets, badges, p asses, and

other sim ilar publications;

(x) Administrative and office 

expenses for conducting the convention, 

such expenses to include stationery, 

office supplies, office machines, and 

telephone charges; but excluded from 

these expenses are the cost of any 

services supplied by the national 

committee at its headquarters or 

principal office if such services are 

incidental to the convention and not 

utilized primarily for the convention; 

and

(xi) Paym ent of the principal and

interest, at a com m ercially reasonable

rate, on loans the proceeds of w hich

w ere used to defray convention

expenses.

(5) Any investment of public funds or 

any other use of public funds to generate 

income is permissible only if the income 

so generated is used to defray 

convention expenses. Such income, less 

any tax paid on it, will be applied 

against the national committee’s 

payments under 11 CFR 9008.2, or where 

appropriate, the Commission may 

determine that a repayment is required 

on the basis of such income.

(b) prohibited uses. (1) No part of any 

payment made under 11 CFR 9008.8 

shall be used to defray the expenses of 

any candidate, delegate, or alternate 

delegate who is participating in any 

presidential nominating convention 

except that the expenses of a person 

participating in the convention as 

official personnel of the national party 

may be defrayed with public funds even 

though that person is simultaneously 

participating as delegate or candidate to 

the convention. This part shall not 

prohibit candidates, delegates or 

alternate delegates who are 

participating in a presidential 

nominating convention from attending 

official party convention activities 

including but not limited to dinners, 

concerts and receptions, where such 

activities are paid for with public funds.

(2) Public funds shall not be used to

defray any expense the incurring or

paym ent of w hich violates any law of

the United States or any law of the State

in which such expense is incurred or
Federal R egister / Vol. 44, No. 213 / Thursday, N ovem ber 1, 1979 / Rules and Regulations 63041

paid, or any regulation prescribed under

federal or State law s.

(3) Public funds shall not be used to 

pay civil or criminal penalties required 

to be paid pursuant to the Act (as 

defined at 2 U.S.C. 431(o)). Any amounts 

received or expended by the national 

committee or Convention committee of a 

political party to pay such penalties 

shall not be considered contributions or 

expenditures, except that such amounts 

shall be reported in accordance with 11 

CFR Part 104 and shall be subject to the 

prohibitions of 11 CFR 110.4 and 11 CFR 

Parts 114 and 115.

§ 9008.7 Limitation of expenditures.

(a) National party limitations— (1) 

Major parties. Except as provided by 11 

CFR 9008.7(a)(3), the national committee 

of a major party may not incur 

convention expenses with respect to a 

Presidential nominating convention 

which, in the aggregate, exceed the 

amount to which such committee is 

entitled under 11 CFR 9008.3, and 9008.4.

(2) Minor parties. Except as provided 

by 11 CFR 9008.7(a)(3), the national 

committee of a minor party may not 

incur convention expenses with respect 

to a Presidential nominating convention 

which, in the aggregate, exceed the 

amount to which the national committee 

of a major party is entitled under 11 CFR 

9008.3 and 9008.4.

(3) Authorization to exceed limitation.

The Commission may authorize the 

national committee of a major party or 

minor party to make expenditures for 

convention expenses, which 

expenditures exceed the limitation 

established by 11 CFR 9008.7(a)(1) or 11 

CFR 9008.7(a)(2). This authorization 

shall be based upon a determination by 

the Commission that, due to 

extraordinary and unforeseen 

circumstances, the expenditures are 

necessary to assure the effective 

operation of the Presidential nominating 

convention by the committee. Examples 

of “extraordinary and unforeseen 

circumstances” include, but are not 

limited to, a natural disaster or a 

catastrophic occurrence at the 

convention site. In no case, however, 

will such authorization entitle a national 

committee to receive public funds 

greater than the entitlement specified 

under 11 CFR 9008.3 and 9008.4. All 

private contributions received to defray 

expenditures under 11 CFR 9008.7(a)(3) 

shall be subject to all reporting 

requirements, limitations (except for 

limitations imposed by 11 CFR

9008.7(a)(1) and 9008.7(a)(2)) and 

prohibitions of the Act (as defined at 2 

U.S.C. 431(o)).

(b) Expenditures by Government

Agencies and Municipal Corporations.

(1) Federal, State or local governm ent

agencies and municipal corporations

m ay make expenditures for facilities or

services with respect to a presidential

nominating convention. Such

expenditures will not be considered

contributions to the national com m ittee,

expenditures counting against the

national com m ittee’s limitation, or

illegal corporate contributions by the

agency or municipal corporation. In

providing facilities or services to the

national com m ittee, the agency or

municipal corporation m ay not obtain

facilities, services or goods from other

persons at less than fair m arket value,

excep t that the agency or municipal

corporation m ay accep t reduced or

discounted rates, provided that such

reductions w ere m ade in the ordinary

course of business.

(2) Examples of expenditures which 

government agencies and municipal 

corporations may make under 11 CFR 

9008.7(b) include but are not limited to:

(i) Granting the national com m ittee

use of an auditorium or convention

center; construction and convention

related services therein such as:

Construction of podiums; press tables;

false floors; cam era platforms;

additional seating; lighting, electrical, air

conditioning and loudspeaker system s;

offices; office equipment; and

decorations;

(ii) Various local transportation

services, including the provision of

buses and automobiles;

(iii) Law enforcem ent services

n ecessary to assure orderly conventions;

(iv) U se of convention bureau

personnel to provide central housing

and reservation services;

(v) Hotel room s at no charge or a

reduced rate on the basis of the number

of room s actually booked for the

convention;

(vi) A ccom m odations and hospitality

for com m ittees of the parties responsible

for choosing the sites of the conventions,

and

(vii) O ther sim ilar convention related

facilities and services.

(c) In-Kind Contributions by

Businesses— (1) Discounts by retail

businesses, (i) R etail businesses m ay

sell, lease or rent their products,

m aterials, services or space to the

national com m ittee with resp ect to a

presidential nominating convention at

reduced or discounted rates: Provided,

That such reductions or discounts are in

the ordinary course of business. For

purposes of this section, a bank shall not

be considered a retail business.

(ii) Discounts or reductions in 

accordance with 11 CFR 9008.7(c)(i) will 

not count toward the national party

expenditure limitation under 11 CFR 

9008.7(a).

(2) Samples and promotional material.

(i) Local businesses m ay sell, at nominal

cost, or provide at no charge, any of

their products or services in the form of

sam ples, discount coupons, promotional

items, such as m aps, pens, or pencils,

with the business’ nam e imprinted on

the item, to those attending the

convention functions. Such sam ples,

coupons and promotional items shall be:

Of nominal value; provided solely for

bona fide advertising or promotional

purposes; and provided in the ordinary

course of business.

(ii) The sam ples and promotional

m aterial m ay be distributed by or with

the help of persons employed by the

business, or employed by or

volunteering for the national party or a

citizen host com m ittee.

(iii) For purposes of 11 CFR 

9008.7(c)(2), a local bank shall be 

considered a local business.

(iv) For purposes of 11 CFR 

9008.7(c)(2), any business within the 

Standard Metropolitan Statistical Area 

(SMSA) of the convention city shall be 

considered a local business. There shall 

be a rebuttable presumption that any 

business located outside the SMSA is 

not a local business. This presumption 

may be rebutted by a showing that the 

volume of business in an area outside 

the SMSA would be directly affected by 

the presence of the convention.

(v) The value of the benefits provided 

under 11 CFR 9008.7(c)(2) will not count 

toward the national party’s expenditure 

limitation under 11 CFR 9008.7(a).

(d) Contributions to and Expenditures

by Host Committees— (1) Host

Committee Organization. A host 

committee includes any local 

organization, such as a local civic 

association, business league, chamber of 

commerce, real estate board, board of 

trade, or convention bureau: Which is 

not organized for profit; whose net 

earnings do not inure to the benefit of 

any private shareholder or individual; 

and whose principal objective is the 

encouragement of commerce in the 

convention city, as well as the 

projection of favorable image of the city 

to convention attendees. A host 

committee must register in accordance 

with 11 CFR 9008.12(a)(l)(i).

(2) Contributions and Expenditures to

Promote Convention City and Its

Commerce, (i) Local businesses, 

excluding banks, local municipal 

corporations and government agencies, 

local labor organizations, and 

individuals may donate funds or make 

in kind contributions to a host 

committee for the purposes set forth at 

11 CFR 9008.7(d)(2)(ni).
63042 Federal R egister / Vol. 44, No. 213 / Thursday, N ovem ber 1, 1979 / Rules and Regulations

(ii) The donor may restrict the use of 

funds by earmarking them for a 

particular project, by having the 

donation acknowledged (e.g. courtesy of 

XYZ Company) or by placing any other 

similar restriction on the use of the 

funds.

(iii) A host committee shall use funds 

donated under 11 CFR 9008.7(d)(2)(i) for 

only the following purposes:

(A) To defray those expenses incurred

for the purpose of promoting the

suitability of the city as a convention

site;

(B) To defray those expenses incurred 

for welcoming the convention attendees 

to the city, such as expenses for 

information booths, receptions, and 

toms;

(C) To defray those expenses incurred

in facilitating com m erce, such as

providing the convention and attendees

with shopping and entertainm ent guides

and distributing the sam ples and

promotional m aterial specified in

§ 9008.7(c)(2);

(D) To defray the adm inistrative

expenses incurred by the host

com m ittee, such as salaries, rent, travel,

and liability insurance;

(iv) For purposes of 11 CFR 

9008.7(d)(2), any business, municipal 

corporation, agency or labor 

organization within the Standard 

Metropolitan Statistical Area (SMSA) of 

the convention city shall be considered 

local. There shall be a rebuttable 

presumption that any such entity 

located outside the SMSA is not local. 

This presumption may be rebutted by a 

showing that the volume of business in 

an area lying outside the SMSA would 

be directly affected by the presence of 

the convention.

(3) Contributions and Expenditures to

Defray Convention Expenses, (i) Local 

retail businesses, excluding banks, as 

well as local municipal corporations and 

government agencies may donate funds 

to a host committee for use by that 

committee in defraying convention 

expenses. Examples of expenditures 

which the host committee may make for 

convention expenses include but are not 

limited to those set forth at 11 CFR 

9008.7(b)(2). No other corporate funds 

may be used to pay such expenses.

(ii) The amount of the donation under 

11 CFR 9008.7(d)(3)(i) must be 

proportionate to the commercial return 

reasonably expected by the business, 

corporation or agency during the life of 

the convention.

(iii) The host committee must maintain 

funds donated under 11 CFR 

9008.7(d)(3)(i) in a separate account.

(iv) For purposes of 11 CFR 

9008.7(d)(3), any determination as to 

whether or not a business, labor

organization, municipal corporation or 

agency is local shall be made in 

accordance with 11 CFR 9008.7(d)(2)(iv).

(v) For purposes of 11 CFR 

9008.7(d)(3)(ii), the life of the convention 

shall begin seven days before the 

opening of the convention and end three 

days after the close of the convention.

(4) Expenditure limitation. Funds used 

by the host committee in accordance 

with §§ 9008.7(d)(2) and 9008.7(d)(3) 

shall not be considered expenditures 

and shall not count against thé 

expenditure limitation under 11 CFR 

9008.7(a).

(e) Expenditures to Participate in or

Attend Convention. Expenditures made 

by presidential candidates from 

campaign accounts, by delegates, or by 

any other individual from his or her 

personal funds for the purpose of 

attending or participating in the 

convention or convention related 

activities, or by State or local 

committees of a political party on behalf 

of such delegates of individuals shall not 

be considered expenditures made by or 

on behalf of the national party, and shall 

therefore not be subject to the overall 

expenditure limitations of 11 CFR 9008.7.

(f) Legal and Accounting Services. (1) 

The payment of compensation to an 

individual by his or her regular 

employer for legal and accounting 

services rendered to or on behalf of the 

national committee shall not be 

considered an expenditure and shall not 

count against the expenditure limitation 

under 11 CFR 9008.7.

(2) The paym ent by the national

com m ittee of com pensation to any

individual for legal and accounting

services rendered to or on behalf of the

national com m ittee shall be considered

an expenditure and shall count against

the expenditure limitation under 11 CFR

9008.7, whether paid from public funds 

or from private contributions.

§ 9008.8 Payment and certification

procedures.

(a) Optional payments; private

contributions. (1) The national 

committee of a major or minor party 

may elect to receive all, part, or none of 

the amounts to which it is entitled under 

11 CFR 9008.3 and 9008.4

(2) The national committee of a major 

party electing to receive all or part of 

the amounts to which it is entitled under 

11 CFR 9008.3 and 9008.4 may receive 

and use private contributions, so long as 

the sum of the contributions which are 

used to defray convention expenses and 

the amount of entitlements elected to be 

received does not exceed the total 

expenditure limitation under 11 CFR

9008.7.

(3) A minor party electing to receive 

all or part of the amounts to which it is 

entitled under 11 CFR 900813 and 9008.4 

may receive and use private 

contributions for the nominating 

convention, so long as the sum of the 

contributions which are used to defray 

convention expenses and the amount of 

entitlements elected to be received does 

not exceed the total expenditure 

limitation under 11 CFR 9008.7.

(4) All private contributions received 

by the national committee to defray 

convention expenses shall be subject to 

all reporting requirements, limitations 

and prohibitions of the Act (as defined 

at 2 U.S.C. 431(o)).

(b) Eligibility requirements. (1) To 

qualify for entitlement under 11 CFR 

9008.3 and 9008.4, the national 

committee of a major or minor political 

party shall establish a convention 

committee .pursuant to 11 CFR 

9008.8(b)(2) and shall file an application 

statement pursuant to 11 CFR 

9008.8(b)(3). The convention committee, 

in conjunction with the national 

committee, shall file an agreement to 

comply with the conditions set forth at 

11 CFR 9008.8(b)(4).

(2) The national committee shall 

establish a convention committee which 

shall be responsible for conducting the 

day to day arrangements and operations 

of that party’s presidential nominating 

convention. The convention committee 

shall register with the Commission as a 

political committee pursuant to 11 CFR 

Part 102. The convention committee 

shall receive all public funds to which 

the national committee is entitled under 

11 CFR 9008.3 and 9008.4 and all private 

contributions made for the purpose of 

defraying convention expenses. All 

expenditures on behalf of the national 

committee for convention expenses shall 

be made by the convention committee.

(3) The national com m ittee shall file

with the Commission an application

statem ent including the information set

forth below and any changes in such

information must be reported to the

Commission within 10 days following

the change:

(i) The nam e and address of the

national com m ittee;

(ii) The nam e and address of the

convention com m ittee and of the

officers of that com m ittee;

(iii) The nam e of the city w here the

convention is to be held and the

approxim ate dates;

(iv) The nam e, address, and position

of the convention com m ittee officers

designated by the national com m ittee to

sign requests for paym ents; and

(v) The nam e and address of the

com m ercial bank to be used as the

depository of the convention com m ittee;
Federal R egister / VoL 44, No. 213 / Thursday, N ovem ber 1, 1979 / Rules and Regulations 63043

(4) The convention committee shall, 

by letter to the Commission, agree to fhe 

conditions set forth below and such 

agreement shall also be binding upon 

the national committee.

(1) The convention committee shall 

agree to comply with the applicable 

expenditure limitation set forth at 11 

CFR 9008.7.

(ii) The convention committee shall 

agree to file convention reports as 

required under 2 U.S.C. 437 and 11 CFR 

9008.12.

(iii) The convention committee shall 

agree to establish one or more accounts 

into which all public funds received 

under 11 CFR 9008.3 and 9008.4 must be 

deposited and from which all 

expenditures for convention expenses 

must be made, provided that such 

account(s) shall contain only public 

funds.

(iv) The convention committee shall 

agree to establish one or more accounts 

into which all private contributions 

received to defray convention expenses 

shall be deposited and from which all 

expenditures to defray such expense 

shall be made: Provided, That such 

accounts contain private contributions 

solely.

(v) The convention committee shall 

agree to obtain and furnish to the 

Commission at its request evidence of 

convention expenses made by the 

committee. The convention committee 

has the burden of proving that 

expenditures by the convention 

committee were for purposes of 

defraying convention expenses as set 

forth at 11 CFR 9008.6(a)(4). The 

convention committee must include as 

part of the evidence of convention 

expenses the following documentation:

(A) For expenditures exceeding $100 

or for expenditures of less than $100 to a 

payee who receives expenditures 

aggregating more than $100 per year, 

either:

(!) A receipted bill which is from the 

payee and states the particulars of the 

expenditure; or

[2] If such a receipted bill is not 

available, the following documents, 

which must state the particulars of the 

expenditure:

(a) A cancelled check negotiated by 

the payee; plus

(b) One of the following documents 

generated by the payee—a bill, invoice, 

voucher or contemporaneous 

memorandum;

(c) Where the documents specified at 

subparagraph (¿) are not available, a 

voucher or contemporaneous 

memorandum from the committee; or

(5) If neither a receipted bill nor the 

documentation specified in 

subparagraph (c) is available, a

cancelled check stating the particulars 

of the expenditure.

[4] Where the supporting 

documentation required above is not 

available, the 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 where 

the expenditure is one of a number of 

documented expenditures relating to the 

operation of a committee office;

[b] Evidence that the expenditure is 

covered by a preestablished written 

committee policy, such as a per diem 

policy.

(B) For all other expenditures:

(1) If from thp petty cash fund, a 

record disclosing the identification of 

ihe payee, the amount and the date of 

the expenditure; or

(2) A cancelled check which has been 

negotiated by the payee and states the 

identification of the payee, and the 

amount and date of the expenditure.

(C) For purposes of 11 CFR 

9008.8(b)(3)(vi), “payee” means the 

person who provides the goods or 

services to the committee in return for 

the expenditure except for an advance 

of $2,000 or less for travel and/or 

subsistence to an individual who will be 

the recipient of the goods or services 

purchased.

(D) For purposes of 11 CFR 

9008.8(b) (3) (vi) the term “particulars” 

means the identification of the payee, 

the date and amount of the expenditure, 

and a description of the goods or 

services purchased.

(E) Upon the request of the 

Commission the convention committee 

shall supply an explanation of the 

connection between the expenditure and 

the convention.

(vi) The convention committee shall 

agree to furnish to the Commission any 

books, records, including bank records 

for all accounts, and a copy of any 

contract which the national committee 

enters into with a host committee or 

convention city, as well as other 

information that the Commission may 

request.

(vii) The convention committee shall 

agree to permit an audit and 

examination pursuant to 26 U.S.C.

9008(g) and 11 CFR 9008.9 of all 

convention expenses; to facilitate such 

audit by making available office space, 

records, and such personnel as is 

necessary to the conduct of the audit 

and examination; and to pay any 

amounts required to be paid under 26 

U.S.C. 9008(h) and 11 CFR 9008.10.

(viii) The convention committee shall 

pay any civil penalties included in a 

conciliation agreement with or imposed 

under 2 U.S.C. 437g.

(5) The application statement and 

agreement may be filed anytime after 

June 1 of the calendar year preceding 

the year in which a Presidential 

nominating convention of a political 

party is held, but no later than first day - 

of the convention.

(c) Increase in certified amount. If the 

application statement is filed before it is 

possible to determine the cost of living 

increase for the year preceding the 

convention, that amount determined by 

the increase shall be paid to the national 

committee promptly after the increase 

has been determined.

(d) Availability of payments. The 

national committee of a major or minor 

party may receive payments under 11 

CFR 9008.8 beginning on July 1 of the 

calendar year immediately preceding 

the calendar in which a Presidential 

nominating convention of the political 

party involved is held.

(e) Certification of payment. After a 

national committee has properly 

submitted its application statement and 

agreement as required under 11 CFR 

9008.8(b), and upon receipt of a written 

request, payment of the committee’s 

entitlement shall be certified by the 

Commission to the Secretary of the 

Treasury.

§ 9008.9 Examination and audits.

The Commission shall conduct an 

examination and audit of the convention 

committee no later than December 31 of 

the calendar year of the convention and 

may at any time conduct other 

examinations and audits as it deems 

necessary. The Commission shall also 

conduct an examination and audit of 

each host committee registered under 11 

CFR 9008.12(a)(1).

§ 9008.10 Repayments.

(a) Excess Payments. If the 

Commission determines that any portion 

of the payments to the national 

committee or convention committee 

under 11 CFR 9008.8(b) was in excess of 

the aggregate payments to which the 

national committee was entitled under 

11 CFR 9008.3 and 9008.4, it shall so 

notify the national committee, and the 

national committee shall pay to the 

Secretary an amount equal to such 

portion.

(b) Excessive Expenditures. If the 

Commission determines that the 

national committee or convention 

committee incurred convention 

expenses in excess of the limitations 

under 11 CFR 9008.7(a), it shall notify 

such national committee of the amount
6 3 0 4 4 Federal R egister / Vol. 44, No. 213 / Thursday, N ovem ber 1, 1979 /'R u les and Regulations

of such excessive expenditures, and

such national com m ittee shall pay to the

Secretary an amount equal to the

amount specified.

(c) Excessive Contributions. If the 

Commission determines that the 

national committee accepted 

contributions to defray convention 

expenses which, when added to the 

amount of payments received, exceeds 

the expenditure limitation of such party, 

it shall notify such national committee 

of the amount of the contributions so 

accepted, and such national committee 

shall pay to the Secretary an amount 

equal to the amount specified.

(d) Improper Usage or Documentation.

If the Commission determines that any 

amount of any payment to the national 

committee or convention committee 

under 11 CFR 9008.8(b) was used for any 

purposes other than the purposes 

authorized at 11 CFR 9008.6 or was not 

documented in accordance with 11 CFR 

9008.8(b)(4)(v), it shall notify the 

national committee of the amount 

improperly used or documented and 

such national committee shall pay to the 

Secretary an amount equal to the 

amount specified.

(e) Unspent Funds. (1) If any portion 

of the payment under 11 CFR 9008.3 

remains unspent after all convention 

expenses have been paid, that portion 

shall be returned to the Secretary of the 

Treasury.

(2) The national committee or 

convention committee shall make an 

interim repayment of unspent funds 

based on the financial position of the 

committee as of the end of the sixth 

month following the last day of the 

convention, allowing for a reasonable 

amount as determined by the 

Commission to be withheld for 

unanticipated contingencies. If, after 

written request by the national 

committee or convention committee, the 

Commission determines, upon review of 

evidence presented by either committee, 

that amounts previously refunded are 

needed to defray convention expenses, 

the Commission shall certify such 

amount for payment

(3) All unspent funds shall be repaid 

to the U.S. Treasury no later than 24 

months after the last day of the 

convention, unless the national 

committee has been granted an 

extension of time. The Commission may 

grant any extension of time it deems 

appropriate upon request of the national 

committee.

(f) Repayment Lim it No repayment 

shall be required from the national 

committee or the convention committee 

under 11 CFR 9008.10, which, when 

added to other repayments required 

from such national committee under this

section, exceeds the amount of 

payments received by such national 

committee under § § 9008.3 and 9008.4.

(g) Notice. (1) If the Commission 

determines that repayment is required, it 

shall give written notification to 

committee of the amounts required to be 

paid and the reasons therefor. No 

notification shall be made by the 

Commission under this section more 

than 3 years after the last day of the 

Presidential nominating convention.

(2) The national party shall repay to 

the Secretary, within 90 days of the 

notice, the amount of the repayment. 

Upon application submitted by the 

national committee or convention 

committee, the Commission may grant a 

90-day extension of the repayment 

period.

(3) All repaym ents shall be m ade

payable to the U.S. Treasury, Bureau of

G overnm ent Finance O perations and

shall be deposited in the general fund of

the Treasury.

§ 9008.11 Resolution of disputes

concerning repayments.

(a) If the convention committee or 

national committee disputes the 

Commission’s determination under 11 

CFR 9008.10 that a repayment is 

required, it shall submit to the 

Commission in writing within 30 days of 

receipt of the Commission’s notice legal 

or factual materials to demonstrate that 

a repayment is not required.

(b) The Commission will consider any

w ritten legal or factual m aterial

submitted by either com m ittee in

making its final determ ination. Such

m aterials m ay be subm itted by counsel

if the com m ittee so desires.

(c) A final determination by the 

Commission that a national committee 

must repay a certain amount shall be 

accompanied by a written statement of 

reasons for the Commission’s actions. 

This statement shall explain the reasons 

underlying the Commission’s 

determination and shall summarize the 

results of any investigation upon which 

the determination is based.

(d) The national com m ittee shall

repay to the S ecretary any amount

required to be repaid within ten days of

receipt of the Commission’s notification

of final determ ination.

(e) Any final repayment determination 

made by the Commission shall be 

subject to review by the U.S. Court of 

Appeals for the District of Columbia 

upon petition filed in such court by any 

interested person. Any petition filed 

pursuant to this section shall be filed 

within 30 days after the determination 

by the Commission for which review is 

sought.

§ 9008.12 Registration and reports.

(a) Registration and reports by

com m ittees, including host com m ittees,

other organizations or groups which

represent a municipality, State, or other

local governm ent agency.

(1) R egistration, (i) E ach com m ittee,

including a host com m ittee, other

organization or group of persons which

represents a S tate, municipality, local

governm ent agency or other political

subdivision in dealing with officials of a

national political party with resp ect to

m atters involving a presidential

nominating convention shall register

with the Commission on the Convention

Registration Form within 10 days of the

date on w hich such party chooses the

convention city. The following

information shall be required of the

registrant: the nam e and address; the

nam e of its officers; and a list of the

activities w hich the registering entity

plans to undertake in connection with

the convention.

(ii) Any such committee organization 

or group organization which is 

unsuccessful in its efforts to attract the 

convention to a city need not register 

under 11 CFR 9008.12(a)(l)(i).

(2) Post-Convention and quarterly 

reports; Content mud Time of Filing, (i) 

Each committee, organization or group 

required to register under 11 CFR 

9008.12(a)(l)(i) shall file a post 

convention report with the Commission 

FECForm 4. This report shall be filed on 

the earlier of: 60 days following the last 

day the convention is officially in 

session; or 20 days prior to the 

presidential general election. This report 

shall disclose all receipts and 

disbursements, including in-kind 

contributions, made with respect to a 

presidential nominating convention.

This report shall be complete as of 15 

days prior to the date on which it must 

be filed.

(ii) If such committee, organization or 

group has receipts or makes 

disbursements after the completion date 

of the post convention report, it shall 

begin to file quarterly reports no later 

than 10 days after the end of the 

following calendar quarter. This report 

shall disclose all transactions completed 

as of the close of that calendar quarter. 

Quarterly reports shall be filed 

thereafter until the committee, 

organization or group ceases all activity 

which must be reported under 11 CFR 

9008.12(a)(2).

(iii) Such committee, organization or 

group shall file a final report with the 

Commission not later than 10 days after 

it ceases activity which must be 

reported under 11 CFR 9008.12(a)(2), 

unless such status is reflected in either
Federal Register / Vol. 44, No. 213 / Thursday, Novem ber 1, 1979 / Rules and Regulations 63045

the pos.t convention report or a 

quarterly.

(b) Registration and reports by v 

political parties—(1) Registration, (i) 

Each convention committee established 

by a national committee under 11 CFR 

9008.8(b)(2) shall register with the 

Commission on FEC Form 1 as a 

political committee pursuant to 11 CFR 

Part 102 and shall file reports with the 

Commission as required at 

§ 9008.12(b)(2).

(ii) Each committèe or other 

organization, including a national 

committee, which represents a national 

major, minor, or new political party in 

making arrangements for that party’s 

convention held to nominate a 

candidate for the office of President or 

Vice President shall register on FEC 

Form 1 with the Commission as a 

political committee pursuant to 11 CFR 

Part 102, except that this registration 

requirement shall not apply to a 

convention committee which must 

register under 11 CFR 9008.12(b)(l)(i).

(iii) A State party com m ittee or a

subordinate com m ittee of a State party

comm ittee which only assists delegates

and alternates to the convention from

that State with travel expenses and

arrangem ents, or which sponsors

caucuses, receptions, and similar

activities at the convention site, need

not register or report under 11 CFR

9008.12(b).

(2) Quarterly and Post convention 

reports; Content and Time of Filing, (i) 

Each committee or other organization 

required to register under 11 CFR 

9008.12(b)(1) shall file reports in 

accordance with 11 CFR 9008.12(b)(2)(ii).

(ii) The first quarterly report shall be 

filed on FEC Form 4 no later than 10 

days after the end of the calendar 

quarter in which a committee either 

receives payment under 11 CFR 9008.8 

or for parties which do not accept public 

funds, no later than 10 days after the 

calendar quarter in which the committee 

receives contributions or makes 

expenditures to defray convention 

expenses. Quarterly reports shall be 

completed as of the close of the quarter 

and shall continue to be filed until such 

committee ceases activity in connection 

with that party’s presidential 

nominating convention. However, any 

quarterly report due within 20 days 

before or after the convention shall be 

suspended and the committee shall in 

lieu of such quarterly report file a post 

convention report. The post convention 

report shall be filed on the earlier of: 60 

days following the last day the 

convention is officially in session; or 20 

days prior to the presidential general 

election. The post convention report 

shall be complete as of 15 days prior to

the date on which the report must be 

filed.

(3) A convention committee which has 

received payments under 11 CFR 9008.8 

shall cease activity no later than 24 

months after the convention, unless the 

committee has been granted an 

extension of time. The Commission may 

grant any extension of time it deems 

appropriate upon request of the 

committee at least 30 days prior to the 

close of the 24 month period.

11 CFR, Chapter I, Part 107 is 

amended to read as follows.

PART 107— PRESIDENTIAL 

NOMINATING CONVENTION, 

REGISTRATION AND REPORTS

§ 107.1 Registration and reports by

committees including host committees,

organizations or other groups representing

a State, city or other local government

agency.

Each committee, including a host 

committee other organization or group of 

persons which represents a State, 

municipality, local government agency 

or other political subdivision in dealing 

with officials of a national political 

party with respect to matters involving a 

presidential nominating convention 

shall register and report in accordance 

with 11 CFR 9008.12(a).

§ 107.2 Registration and reports by

political parties.

Each convention committee 

established under 11 CFR 9008.8(b)(2) by 

a national committee of a political party 

and each committee or other 

organization, including a national 

committee, which represents a political 

party in making arrangements for that 

party’s convention held to nominate a 

presidential or vice presidential 

candidate shall register and report in 

accordance with 11 CFR 9008.12(b).

§§ 107.3 and 107.4 [Deleted]

11 CFR, Chapter I, §§ 107.3 and 107.4 

are deleted.

11 CFR Chapter I, Part 114 is amended 

as follows:

PART 114— CORPORATE AND LABOR 

ORGANIZATION ACTIVITY

§114.1 Definitions.

(a) * * *

(2) The term contribution and 

expenditures shall not include—

* * * * *

(viii) Activity permitted under 11 CFR 

9008.7 with respect to a presidential 

nominating convention. 

*****

Dated: October 25,1979. •

Robert O. Tieman,

Chairman, Federal Election Commission.

[FR Doc. 79*33836 Filed 10-31-79; 8:45 am]

BILLING CODE 6715-01-M