January 2001 Federal Election Commission Volume 27, Number 1

Table of Contents

1 Message from the Chairman

Regulations

2 Final Rules for General Public

Political Communications

Coordinated with Candidates and

Party Committees; Independent

Expenditures

Commissioners

3 New Chairman and Vice

Chairman Elected

Staff

3 FEC General Counsel Resigns

4 Lois Lerner Designated Acting

General Counsel

Reports

4 Reports Due in 2001

Electronic Filing

7 Mandatory Electronic Filing

Alternative Dispute Resolution

8 Frequently Asked Questions

9 Advisory Opinions

Court Cases

10 John J. Hooker v. All Campaign

Contributors

10 Natural Law Party of the United

States of America v. FEC

10 Patrick J. Buchanan v. FEC

Outreach

11 Public Appearances

11 Roundtables

Publications

11 Updated List of Federal PACs

Compliance

A Message From the Chairman

The year 2001 promises to be a challenging one at the FEC, particularly

with respect to revised reporting regulations that become effective this year

and new programs for promoting compliance with the law.

Mandatory electronic filing, election-cycle reporting for authorized

committees, revised reporting forms, and the recent expansion of state filing

waivers to Senate committees will make FEC disclosure more efficient and

more timely. Additionally, our expanded Web site provides more flexible

search options and makes the campaign finance data more accessible to the

public.

Two new programs—the Administrative Fines Program and the Alternative Dispute Resolution Program—make our compliance process simpler and

more responsive to the needs of the regulated community.

We welcome your questions and comments as we continue our efforts to

help the regulated community successfully comply with the Federal Election

Campaign Act. Please do not hesitate to call our 800 number (800/424-9530)

for assistance. In addition, you can obtain our publications and other materials 24 hours a day through our Faxline, an automated fax-on-demand system

(202/501-3413). Many of our materials are also available on our Web site at

www.fec.gov.

I look forward to meeting the challenges and opportunities presented to

this agency in the coming months.✦
Federal Election Commission RECORD January 2001

2

Federal Election Commission

999 E Street, NW

Washington, DC 20463

800/424-9530

202/694-1100

202/501-3413 (FEC Faxline)

202/219-3336 (TDD for the

 hearing impaired)

800/877-8339 (FIRS)

Danny L. McDonald, Chairman

David M. Mason, Vice Chairman

Karl J. Sandstrom, Commissioner

Bradley Smith, Commissioner

Scott E. Thomas, Commissioner

Darryl R. Wold, Commissioner

James A. Pehrkon, Staff Director

Lois G. Lerner, Acting General

 Counsel

Published by the Information

 Division

Louise D. Wides, Director

Amy L. Kort, Editor

http://www.fec.gov

Regulations

Commission Approves Final

Rules for General Public

Political Communications

Coordinated with

Candidates and Party

Committees; Independent

Expenditures

On November 30, 2000, the

Commission approved the final

rules—and the Explanation and

Justification—addressing coordinated communications and independent expenditures. The final rules,

which were published in the December 6, 2000, Federal Register, will

be transmitted to Congress at the

beginning of the next Congress.

They will take effect following the

30 legislative day Congressional

review period.

General Public Political

Communications Coordinated

with Candidates and Party

Committees

Expenditures that are coordinated

with a candidate or a party are

considered in-kind contributions,

subject to the limits, prohibitions

and reporting requirements of the

Federal Election Campaign Act (the

Act). To clarify just what is meant

by “coordinated expenditures,” the

Commission is adding new section

100.23 to its rules. This section

addresses coordinated communications made to the general public that

refer to clearly identified candidates,

are made for the purpose of influencing federal elections and are paid

for by persons other than candidates,

candidates’ authorized committees

or party committees.1

 The new

section limits the scope of these

rules to apply to “general public

political communications”2

 paid for

by any person or committee other

than candidates, candidate committees or party committees. They also

state that coordinated expenditures

are both expenditures and in-kind

contributions subject to contribution

limits under the Act. 11 CFR

100.23(a) and (b).

The new rules do not set a

content standard; they do not

require, for example, that the

communication include “express

advocacy” communications.3

Instead, the new regulations define

“coordinated general public political

communications” according to the

standard set by the district court in

FEC v. The Christian Coalition. 52

F.Supp.2d 45, 85 (D.D.C.1999).4

Definition of Coordination.

Under 11 CFR 100.23(c), an

expenditure for a general public

political communication is considered to be coordinated with a

candidate or party committee if the

communication is paid for by any

person other than the candidate’s

authorized committee or a party

committee and is created, produced

or distributed:

• At the request or suggestion of the

candidate, the candidate’s authorized committee, a party committee or their agents;

• After one of these persons or

parties has exercised control or

decision-making authority over the

content, timing, location, mode,

intended audience, volume of

distribution or frequency of

placement of that communication;

or

• After substantial discussion or

negotiation between the purchaser,

creator, producer or distributor of

the communication and the candi1

 The Commission notes that not all

coordinated expenditures constitute

communications. In fact, they can

include many other types of expenses

incurred by candidates, including staff

costs, polling and other services.

2

 The section defines the term “general

public political communications” as

communications made through a

broadcasting station, newspaper,

magazine, outdoor advertising facility,

mailing or any electronic medium, so

long as the communication has an

intended audience of over one hundred

people. 11 CFR 100.23(e).

3

 See 2 U.S.C. §431(9). The Commission may revisit the issue of a content

standard for all coordinated communications when it considers the other

portion of the rulemaking, which is

being held in abeyance until the

Supreme Court addresses the dollar

limits on the amount party committees

may spend in coordination with their

candidates. This issue was raised in

Colorado Republican Federal Campaign Committee v. FEC (Colorado II).

4

 The Commission , however, is using

the phrase “expenditures for general

public political communications” in

place of “expressive expenditure,” the

term used by the Christian Coalition

court, because it more precisely

describes the types of communications

covered by these rules. See 11 CFR

100.23(a)(1).
January 2001 Federal Election Commission RECORD

3

date, the candidate committee, the

party committee or their agents

that results in collaboration or

agreement about the content,

timing, location, mode, intended

audience, volume of distribution or

frequency of placement of the

communication.

Definition of “Substantial”

Discussion or Negotiation. Under

11 CFR 100.23(c)(2)(iii), substantial

discussion or negotiation may

include one or more meetings,

conversations or conferences about

the value or importance of a communication for a particular election.

The Commission clarified that

whether these discussions or negotiations qualify as “substantial”

depends upon their substance—

whether they contain specific

information about how to communicate an issue in a way that is valuable to the campaign—rather than

upon their frequency. For example,

numerous conversations with a

campaign about complex or controversial public issues would not be

considered “substantial” under these

rules. A brief conversation about

how to phrase an issue or about

which issue to emphasize, however,

would be considered “substantial.”

Exception: A candidate’s or

political party’s response to an

inquiry regarding the candidate’s or

party’s position on legislative or

public policy issues does not alone

make a communication coordinated.

11 CFR 100.23(d).

Independent Expenditures

The definition of “independent

expenditure” at 11 CFR 109.1 has

been revised to conform with the

new coordination rules at 11 CFR

100.23. Under the revised regulation defining an independent

expenditure, an expenditure is not

independent if it is a “coordinated

general public political communication,” as defined in 100.23. The

revised rule deletes the former

Staff

FEC General Counsel

Resigns

Lawrence M. Noble, the FEC’s

General Counsel, has resigned from

the agency in order to accept a

position as the Executive Director

and General Counsel of the Center

for Responsive Politics, a nonpartisan, nonprofit research group. Mr.

Noble, who joined the FEC in 1977

and served as the Commission’s

General Counsel from 1987 through

2000, left the Commission on

January 1, 2001.

The Center for Responsive

Politics tracks money in politics to

evaluate its effects on elections and

public policy. It conducts computer-based research on campaign

finance issues for the news media,

academics, activists, and the general

public, with the goal of creating a

more educated voter and a more

responsive government.

In his new position, Mr. Noble

will have the opportunity to bring

his campaign finance legal analysis

experience to the organization. “I

want to build on the Center’s

outstanding reputation for nonpartisan research and its efforts to help

Commissioners

New Chairman and Vice

Chairman Elected

On December 14, 2000, the

Commission elected Danny L.

McDonald as its Chairman and

David M. Mason as Vice Chairman

for 2001.

Chairman McDonald, a Democrat, now serves his fourth term as

Chairman. Prior to his initial

appointment by President Reagan in

1981, the Sand Springs, Oklahoma,

native served as General Administrator of the Oklahoma Corporation

Commission. Additionally, he

served as secretary of the Tulsa

County Election Board and as Chief

Clerk of that Board. Chairman

McDonald was also a member of the

Advisory Panel to the FEC’s

National Clearinghouse on Election

Administration.

Chairman McDonald received a

Bachelors degree from Oklahoma

State University and attended the

John F. Kennedy School of Government at Harvard University. He has

served as a member of the JFK

School Advisory Board for State

and Local Government.

Vice Chairman Mason, a Republican, was nominated to the Commission by President Clinton in

1998. Prior to his appointment, Mr.

Mason served as Senior Fellow,

Congressional Studies, at the

Heritage Foundation. Before

joining the Heritage Foundation,

Vice Chairman Mason served as

Deputy Assistant Secretary of

Defense and also served on the

staffs of Senator John Warner,

Representative Tom Bliley and

then-House Republican Whip Trent

Lott.

Vice Chairman Mason attended

Lynchburg College in Virginia and

graduated cum laude from

Claremont McKenna College in

California.✦

Need FEC Material

in a Hurry?

 Use FEC Faxline to obtain FEC

material fast. It operates 24 hours

a day, 7 days a week. More than

300 FEC documents—reporting

forms, brochures, FEC

regulations—can be faxed almost

immediately.

 Use a touch tone phone to dial

202/501-3413 and follow the

instructions. To order a complete

menu of Faxline documents, enter

document number 411 at the

prompt.

(continued on page 6)

(continued on page 4)
Federal Election Commission RECORD January 2001

4

the voters understand the connection

between the money that is flowing

through our campaign finance

system and the legislation that

impacts their lives on a daily basis,”

Mr. Noble said. “In addition, I want

to explore adding a legal dimension

to the Center’s work, including

helping the public understand the

work of the FEC and how it impacts

the campaign finance system.”

Mr. Noble said that he has truly

enjoyed his 23 years with the

Commission. “I believe that the

FEC has one of the most important

and difficult jobs in government.

Fortunately, the staff members and

managers, especially in the Office of

General Counsel, are among the

most dedicated and talented people

to be found in or out of government.

It has been an honor and a pleasure

to serve with them, and I am grateful to the Commissioners who have

given me that opportunity.”✦

Lois Lerner Designated

Acting General Counsel

Following the January 2001

resignation the FEC’s General

Counsel, Lawrence M. Noble, Lois

G. Lerner became the Acting

General Counsel of the Federal

Election Commission. This appointment will last for a period of

six months, during which time the

Commission will conduct an open

selection process to fill the General

Counsel’s position.

Ms. Lerner joined the staff of the

FEC’s Office of General Counsel in

1981 and most recently served as

the FEC’s Associate General

Counsel for Enforcement. Prior to

joining the FEC, she was a staff

attorney in the Criminal Division of

the Department of Justice. She is a

graduate of Northeastern University

in Boston and received her Juris

Doctor from Western New England

College of Law in Springfield,

Massachusetts.✦

Staff

(continued from page 3)

Reports Due in 2001

This article on filing requirements for 2001 is supplemented by

the reporting tables on this and the

following page.

It is the responsibility of the

committee treasurer to file required

reports on time. To assist treasurers,

the Commission sends committees

FEC reporting forms and notices of

upcoming reporting deadlines.

For more information on reporting or to order extra forms, call the

FEC at 800/424-9530 (press 1) or

202/694-1100. Most forms are

available at the FEC’s web site

(http://www.fec.gov) and from FEC

Faxline, the agency’s automated fax

system (202/501-3413). The 2001

Reporting Schedule is also available

on the FEC’s Web site (http://

www.fec.gov/pages/report.htm).

Reports Year-End Reports Covering 2000

Activity

All committees must file a 2000

year-end report due January 31,

2001. The coverage and reporting

dates are found in Table 1 on page

5.

Reports Covering 2001 Activity

To find out which reports your

committee must file in 2001, check

the Guide to 2001 Reporting below.

Then check the tables on page 5 for

reporting dates. Please note that

committees active in special elections in 2001 may have to file

additional special election reports,

as explained on page 6.

Waiver of State Filing

On October 14, 1999, the Commission approved a state filing

waiver program, relieving qualified

states of the requirement to make

paper copies of FEC reports available to the public. As a result,

Type of Filer Reports

2000 Year- SemiEnd annual Quarterly Monthly

House and Senate ✓ ✓

Candidate Committees 1

Presidential Candidate ✓ ✓ or 2 ✓

Committees

PACs and Party ✓ ✓ or 3 ✓

Committees

1 This category includes committees of candidates retiring debts from a previous

election or running for a future election.

2Presidential committees may file on either a quarterly or a monthly basis. Those

wishing to change their filing frequency should notify the Commission in writing.

3PACs and party committees may file on either a semiannual or a monthly basis.

Committees wishing to change their filing frequency must notify the Commission in

writing when filing a report under the committee’s current schedule. A committee

may change its filing frequency only once per calendar year. 11 CFR 104.5(c).

Guide to 2001 Reporting
January 2001 Federal Election Commission RECORD

5

political committees no longer have

to file copies of their reports at the

state level in the states that have

received the waiver.1 Committees in

states that do not qualify for the

waiver must continue to file copies

of their reports with the appropriate

state election office. The addresses

for the federal offices (FEC and

Secretary of the Senate) appear in

the instructions for the Summary

Page of FEC Forms 3 and 3X. A

list of state filing offices is available

from the Commission.

Where to File

Committee treasurers must file

FEC reports with the appropriate

federal and state filing offices.

Please note that:

House Candidate Committees.

Principal campaign committees of

House candidates file with the FEC.

11 CFR 105.1. The principal

campaign committee must simultaneously file a copy of each report

and statement with the Secretary of

State (or equivalent officer) of the

state in which the candidate seeks

(or sought) election only if that state

does not qualify for a waiver. 2

U.S.C. §439(a)(2)(B). See footnote

1, this column.

Senate Candidate Committees.

Principal campaign committees of

Senate candidates file with the

1 The Commission has certified that the

following states and territories qualify

for filing waivers: Alabama, American

Samoa, Arkansas, California, Colorado, Connecticut, Delaware, Florida,

Georgia, Hawaii, Idaho, Illinois,

Indiana, Kansas, Kentucky, Louisiana,

Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska,

New Hampshire, New Jersey, New

Mexico, New York, North Carolina,

North Dakota, Ohio, Oklahoma,

Oregon , Pennsylvania, Rhode Island,

South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,

Virgin Islands, Washington, West

Virginia, Wisconsin and Wyoming.

Table 1: 2000 Year-End Report

(Required of all committees.)

Report Period Covered Filing Date 1

Year-End Closing date January 31, 2001

of last report

through

December 31, 2000

Table 2: 2001 Semiannual Reports

Report Period Covered Filing Date 1

Mid-Year January 1 – June 30 July 31, 2001

Year-End July 1 – December 31 January 31, 2002

Table 3: 2001 Monthly Reports

Report Period Covered Filing Date 1

February January 1 – 31 February 20

March February 1 – 28 March 20

April March 1 – 31 April 20

May April 1 – 30 May 20

June May 1 – 31 June 20

July June 1 – 30 July 20

August July 1 – 31 August 20

September August 1 – 31 September 20

October September 1 – 30 October 20

November October 1 – 31 November 20

December November 1 – 30 December 20

Year-End December 1 – 31 January 31, 2002

Table 4: 2001 Quarterly Reports

(Option available to Presidential committees only.)

Report Period Covered Filing Date 1

1st Quarter January 1 – March 31 April 15

2nd Quarter April 1 – June 30 July 15

3rd Quarter July 1 – September 30 October 15

Year-End October 1 – December 31 January 31, 2002

1Reports filed electronically must be submitted by midnight on the day that the

report is due. Reports filed on paper and sent by registered or certified mail must

be postmarked by the filing date; reports sent by any other means must be received

by the Commission’s close of business on the filing date. 11 CFR 104.5(e).

(continued on page 6)
Federal Election Commission RECORD January 2001

6

Secretary of the Senate. 11 CFR

105.2. The principal campaign

committee must simultaneously file

a copy of each report and statement

with the Secretary of State (or

equivalent officer) of the state in

which the candidate seeks (or

sought) election only if that state

does not qualify for a waiver. 2

U.S.C. §439(a)(2)(B). See footnote

1 on page 5, first column.

Presidential Committees. Principal campaign committees of Presidential candidates file with the FEC.

11 CFR 105.3. The principal

campaign committee must simultaneously file a copy of each report

and statement with the Secretary of

State (or equivalent officer) of each

state in which the committee makes

expenditures only if that state does

not qualify for a waiver. 11 CFR

108.2. See footnote 1 on page 5,

first column.

Candidate Committees with More

Than One Authorized Committee. If

a campaign includes more than one

authorized committee, the principal

campaign committee files, with its

own report, the reports prepared by

the other authorized committees as

well as a consolidated report (FEC

Form 3Z or page 5 of FEC Form 3P,

as appropriate). 11 CFR 104.3(f).

PACs and Party Committees.

Generally, PACs and party committees file with the FEC. 11 CFR

105.4. However, committees

supporting only Senate candidates,

and the national Democratic and

Republican senatorial committees,

file with the Secretary of the Senate.

11 CFR 105.2

Late Filing

The Federal Election Campaign

Act does not permit the Commission

to grant extensions of filing deadlines under any circumstances.

Filing late reports can result in

enforcement action by the Commission.

The agency pursues compliance

actions against late-filers and

nonfilers under the administrative

fines program and on a case-by-case

basis. For more information on the

FEC’s administrative fines program, see the July 2000 Record,

page 1, or visit the FEC Web site at

www.fec.gov and click on the

administrative fines icon.

New Reporting Requirements

New reporting requirements,

which will affect reports filed after

January 31, 2001, became effective

in 2001:

• Mandatory electronic filing—

which affects committees, individuals and organizations that

receive contributions or make

expenditures in excess of $50,000

in a calendar year—begins with the

first report filed after the 2000

year-end report; and

• Election Cycle Reporting—which

affects authorized candidate

committees only—begins, in most

cases, with the July 2001, semiannual report.

Committees Active in Special

Elections

Committees authorized by

candidates running in any 2001

special election must file pre- and

post-election reports in addition to

regularly scheduled reports. 11 CFR

104.5(h). They are also required to

comply with the 48-hour notice

requirement for contributions of

$1,000 or more (including loans)

received shortly before an election.

See 11 CFR 104.5(f).

Committees, other than Senate

committees, may now file their 48-

hour notices on line. For more

information concerning on-line

filing, visit the FEC Web site at

www.fec.gov and click on the

Electronic Filing logo.

PACs and party committees

supporting candidates running in

special elections may also have to

file pre- and post-election reports

unless they file on a monthly basis,

rather than semiannually. 11 CFR

104.5(c)(3) and 104.5(h). However,

all PACs are subject to 24-hour

reporting of independent expenditures made shortly before an election. See 11 CFR 104.4(b) and (c)

and 104.5(g).

When timing permits, the Record

will alert committees to special

election reporting dates. ✦

Reports

(continued from page 5)

2 PACs and party committees that

support candidates running in states

that do not qualify for the waiver, must

simultaneously file copies of reports

and statements with the Secretary of

State .

Regulations

(continued from page 3)

definition of what is not an “independent expenditure” (former

section 109.1(b)(4)), including two

presumptions about when coordination occurs.5

Conforming Amendments. The

regulation at 11 CFR 100.16, which

defines “independent expenditure,”

is amended so that the language

more closely follows the language

of the statute. Additionally, a new

cross reference clarifies that the

phrase “made with the cooperation

5

 The presumption stated that an

expenditure would be presumed to be

made at the request or suggestion of, or

in consultation or cooperation with, the

candidate or the candidate’s authorized

committee or agents if it was:

• Based on information about the

candidate’s plans, projects or needs

provided by the candidate, or

candidate’s agents, with a view toward

having an expenditure made; or

• Made by or through any person who

is or has been an officer of an

authorized committee, has been

receiving compensation or reimbursement from the candidate or candidate

committee or is authorized by the

candidate or committee to raise or

spend funds. 11 CFR 109.1(b)(4).
January 2001 Federal Election Commission RECORD

7

Electronic

Filing

Mandatory Electronic Filing

Begins January 1, 2001

Mandatory electronic filing

requirements became effective as of

January 1, 2001. Accordingly, any

committee that receives contributions

or makes expenditures in excess of

$50,000 in the current calendar year,

or that has reason to expect to do so,1

of, or in consultation with, or in

concert with, or at the request or

suggestion of, a candidate or any

agent or authorized committee of

such candidate” is now governed by

the definition of coordination at 11

CFR 100.23 and no longer by the

former paragraph at 11 CFR

109.1(b)(4). The Commission is also

making conforming amendments to

11 CFR 110.14, which governs

contributions to and expenditures by

delegates and delegate committees.

Advisory Opinions Superseded

The Commission has in the past

issued advisory opinions (AOs) that

relied on a broader definition of

coordination than that stated in the

new rules. As a result, the following AOs are superseded to the extent

that they are inconsistent with these

new rules: AOs 1999-17, 1998-22,

1996-1, 1993-18, 1982-20, 1980-

116 and 1979-80.

The full text of the final rules

appears in the December 6, 2000,

Federal Register at 65 FR 76138.

This document is available from the

FEC’s Public Disclosure Office (call

800/424-9530, press 3), through

FEC Faxline ( dial 202/501-3413

and request document 246) and on

the FEC’s Web site at www.fec.gov

(go to the Campaign Finance Law

Resources link and then click on

“Recent Federal Register

Notices”).✦

must submit its reports electronically. The rules take effect for

reporting periods beginning on or

after January 1, 2001.2

 Any filers

who are required to file electronically, but who file on paper, will be

considered nonfilers and may be

subject to enforcement action under

the administrative fine program. The

mandatory electronic filing provisions (11 CFR 104.18) apply to any

political committee or other person

required to file reports, statements

and designations with the FEC. This

includes all filers except Senate

candidate committees (and other

persons who support Senate candidates only), who file with the

Secretary of the Senate.3

Application of the $50,000

Threshold.

Each unauthorized committee

(PAC or party committee) must file

electronically if the total contributions or total expenditures of that

committee exceed, or are expected

to exceed, the $50,000 threshold.

The threshold is calculated on a percommittee basis, and each committee calculates its own contributions

and expenditures separately and

files separately, even if it is affiliated with another committee.

By contrast, all committees

authorized by one candidate must

file electronically if their combined

total contributions or combined total

expenditures exceed, or are expected to exceed, the threshold.

Individuals and qualified nonprofit corporations whose independent expenditures exceed, or are

expected to exceed, the $50,000

threshold must also file electronically.

1

 Once filers actually exceed the

threshold, they have “reason to expect”

to exceed the threshold in the following

two calendar years. 11 CFR 104.18

(a)(3)(i). This means they must continue

to file electronically for the two years

(January through December) following

the year in which they exceeded the

threshold. Filers with no historic data

on which to base their calculations

should expect to exceed the threshold if

they either receive contributions or

make expenditures that exceed onequarter of the threshold amount in the

first quarter of the calendar year, or

they receive contributions or make

expenditures that exceed one-half of the

threshold amount in the first half of the

calendar year. 11 CFR 104.18

(a)(3)(ii). The regulations allow an

exception to the requirement of filing

for the following two calendar years for

candidate committees:

• That have $50,000 or less in net debts

outstanding on January 1 of the year

following the election;

• That anticipate terminating prior to

the next election year; and

• Whose candidate has not qualified as

a candidate for the next election and

does not intend to become a candidate

in the next election. 11 CFR 104.18

(a)(3)(i).

2

 These regulations do not apply to the

2000 year-end report due January 31,

2001.

3

 Senate candidates, however, are

encouraged to voluntarily file an

unofficial copy electronically with the

FEC to ensure faster disclosure.

(continued on page 8)

Back Issues of the

Record Available on

the Internet

This issue of the Record and all

other issues of the Record starting

with January 1996 are available

through the Internet as PDF files.

Visit the FEC’s World Wide Web

site at http://www.fec.gov and

click on “What’s New” for this

issue. Click “Campaign Finance

Law Resources” to see back issues.

While all committees must file electronically in the year in which they exceed the

threshold, authorized candidate committees meeting these requirements do not

“expect to exceed the threshold” in the

following two calendar years and,

therefore, need not file electronically

during those years unless they actually

exceed the threshold.
Federal Election Commission RECORD January 2001

8

Voluntary Electronic Filing.

Committees that are not required

to file electronically are strongly

encouraged to do so voluntarily.

Once a committee begins to file its

reports electronically, on a voluntary basis, it must continue to file

electronically for the remainder of

the calendar year unless the Commission determines that extraordinary and unforeseeable

circumstances make continued

electronic filing impractical. 11

CFR 104.18(b). No such waiver by

the Commission, however, has been

established for mandatory electronic

filers.

Electronic filing software is

available from the FEC at no cost to

the filer. Many software companies

that serve the filing community have

included electronic filing in their

software packages as well. To

download the FEC software or to

view a partial list of software

vendors, go to www.fec.gov and

click on the Electronic Filing icon.

Or go to http://www.fec.gov/

electron.html.✦

Electronic Filing

(continued from page 7)

Alternative

Dispute

Resolution

Frequently Asked Questions

About ADR

Alternative Dispute Resolution

(ADR) is a series of constructive

and efficient procedures for resolving disputes through the mutual

consent of the parties involved.

Unlike the more formal procedures

of the enforcement process, ADR

encourages the parties to engage in

negotiations that promptly lead to

the resolution of their dispute.

In the course of processing cases

through the ADR program, the ADR

office has received a number of

inquiries, some of which are addressed below.

Q: How can a committee find out

about the ADR option and

whether its case might qualify for

the program?

A: Campaign and party committees can learn about the ADR

program through the FEC’s brochure “Alternative Dispute Resolution Program,” which describes how

cases qualify for the program. The

brochure is now available to the

public on the FEC’s Web site at

www.fec.gov—go to the Campaign

Finance Law Resources link and

look under Publications. Individuals may also order the free brochure

by mail by calling 800/424-9530

(press 1 and then 3) or 202/694-

1100.

Q: What is the difference

between negotiations and

mediation as applied to the ADR

program?

A: Negotiations at the FEC

involve direct, bilateral discussions

between the respondent (and/or their

representative) and a representative

of the FEC’s ADR office. The

negotiations are aimed at resolving

the complaint. Mediation involves

the same two parties, but with the

addition of a neutral, impartial third

party—the mediator—who assists

the parties in resolving the complaint. The mediator does not have

the authority to resolve the matter

himself or herself, but works with

the parties to facilitate their discussions and guide them in their

negotiations.

Q: Is the mediator a member of

the FEC staff?

A: No. The mediator is selected

from a list of independent, nongovernmental, neutral mediators who

work outside the Federal Election

Commission.

Q: Are negotiations and

mediation ever held

simultaneously?

A: No. Mediation is initiated

only if the negotiations between the

parties are unsuccessful.

Q: Why is it necessary for the

respondent to suspend the statute

of limitations in order to

participate in the ADR program?

A: Requiring the respondent to

suspend the statute of limitations:

• Ensures that the respondent is

committed to the program and a

speedy resolution of the dispute;

• Protects the integrity of the

Commission’s regular enforcement

program in the event the case

needs to be returned to the Office

of General Counsel (OGC) for

final resolution; and

• Reminds the respondent that no

benefit can be derived from

delaying the resolution of the

complaint.

Q: Will the complainant be

involved in either the negotiations

or mediation stage when the case

is being processed by the ADR

office?

A: No.

Q: What is the time frame for

reaching an agreement during the

FEC’s negotiations or mediation

processes?

A: The ADR office is committed

to resolving issues within five

months from the date the Commission concurs that the case should be

processed by the ADR office.

Q: How will the schedule for

negotiations be set?

A: The schedule for the negotiations and, if necessary, mediation

will be set by mutual consent

between the respondent and the

representative of the FEC’s ADR

office.

Q: Will there be a “standard

form” for the agreement once it is

negotiated?

A: No. The agreement will be

tailored to address the issues raised
January 2001 Federal Election Commission RECORD

9

in the complaint or audit referral and

will be shaped by the terms of the

settlement negotiated with the

respondent.

Q: How do the ADR office’s

negotiations and final accord

compare with the standard

“conciliation agreement”

traditionally used to settle an FEC

enforcement case (MUR)?

A: The ADR program’s negotiation process is similar to the procedures used by the Commission’s

Office of General Counsel (OGC) to

obtain a conciliation agreement, but

there are some important differences. Both processes aim to arrive

at a mutually agreeable settlement.

A conciliation agreement, however,

usually includes civil penalties,

whereas the ADR-negotiated

settlement may or may not contain a

monetary penalty, but is likely to

include other terms negotiated by

the parties. Moreover, an admission

of having violated the Federal

Election Campaign Act (the Act) is

usually included in a conciliation

agreement, whereas the ADRnegotiated settlement may modify—

or exclude—that admission.

Q: What happens to documents

used during negotiations and

mediation sessions, and will those

documents be used by OGC in

subsequent proceedings if the

parties fail to reach an

agreement?

A: In the event that the parties do

not achieve a settlement though

negotiations or mediation, and the

case is returned to OGC for processing, the ADR office will remove

from the file internal documents

used during the mediation process.

None of these documents may be

used or will be available to OGC for

any subsequent efforts, including

possible litigation.

Q: What documents will be made

a part of the public record when a

negotiated or mediated settlement

is reached under the ADR

program?

A: The public record will only

include:

• The final settlement agreement;

• The written summary statements

initially prepared by the respondent and the ADR office; and

• The correspondence between the

respondent and the FEC’s ADR

office prior to the commencement

of negotiations and mediation (if it

occurs).

If the parties submit “position

papers” during the course of a

mediation, they will remain confidential, will not become a part of the

public record and will not be

forwarded to OGC, should the case

be returned to that office.

Q: Can the respondent select a

mediator other than one listed on

the FEC’s mediator panel?

A: No. The mediators on the

FEC’s Mediator panel have received

training on the requirements of the

Act and the role and responsibilities

of the Federal Election Commission.

Q: What role does precedent play

in the settlements that are

concluded under the ADR

program?

A: Neither a negotiated settlement nor a mediated settlement will

provide a precedent for resolving

subsequent matters that come before

the Commission, including those

matters handled through enforcement by OGC.✦

Advisory

Opinions

AO 2000-32

Reporting Uncollectable

Loan

The Matthew Martinez Congressional Committee (the Committee)

may end its reporting of an

uncollectable loan it made to a

nonfederal campaign in 1991. The

$5,000 loan was a permissible use

of excess campaign funds under the

Federal Election Campaign Act (the

Act). 2 U.S.C. §439a and 11 CFR

113.2(d).1

At the time the Committee made

the payment, it reported the funds as

a loan on Schedule C, and it has

continued to do so.2

 The Committee

has since been unable to collect this

debt, and the California statute of

limitations has expired for collection

purposes.

Given that the loan is

uncollectable, the Committee may

“charge off” the debt as detailed

under 11 CFR 104.3(d). In its next

reporting period following the

issuing of this opinion, the Committee should file a Schedule C that:

• Lists the loan;

• Lists an outstanding balance of

zero as of the close of the reporting

period; and

• Discloses in parenthesis, in the

column provided to show payments made during the reporting

period, an amount indicating that

the loan is forgiven and, thus, paid

in full.

Finally, the Committee should

include a memo entry that cites this

advisory opinion and explains that

the statute of limitations has expired, thus making collection legally

unenforceable. The memo entry

should also state that the Committee

will no longer list this transaction on

its Schedule C.

Date: December 1, 2000; Length:

5 pages.

1

 Neither the Act and Commission

regulations nor this advisory opinion,

however, supersedes any state or local

laws that might regulate the making or

reporting of contributions to local or

state candidates.

2

 The payment was made to the Committee to Elect Charles Calderon

Supervisor.

(continued on page 10)
Federal Election Commission RECORD January 2001

10

Advisory Opinions

(continued from page 9)

AO 2000-35

Status of State Party as State

Committee of Political Party

The Green Party of Washington

State (the Washington State Party)

satisfies the requirements for state

committee status even though it is

not formally affiliated with either of

the two national Green Party

organizations.

The Federal Election Campaign

Act (the Act) defines a state committee as “the organization which,

by virtue of the bylaws of a political

party, is responsible for the day-today operation of such political party

at the State level, as determined by

the Commission.” 2 U.S.C.

§431(15).

The Washington State Party is

not formally affiliated with either of

the two national Green Party

organizations. In past advisory

opinions, however, the Commission

has said that a state political party

could qualify as a state committee

even if it was not affiliated with any

national party organization as long

as the organization:

• Had bylaws or a similar document

that “delineates activities commensurate with the day-to-day operation” of a party at a state level;

• Had gained ballot access for at

least one Congressional candidate;

and

• Had supported a candidate who

qualified as a candidate under FEC

regulations. AOs 2000-21, 2000-

14, 1998-27 and 1998-23.

The Washington State Party

meets all three requirements. It

satisfies the first requirement

because its bylaws set out a comprehensive organizational structure for

the party from the statewide level

down through local levels, and the

bylaws clearly identify the role of

the Washington State Party.

The Washington State Party

satisfies the second requirement—

ballot access for a congressional

candidate—in that Joseph Szwaja

was its nominee in 2000 and gained

ballot access as the Washington

State Party’s candidate on the

Washington ballot.1

 Finally, the

committee meets the third criterion

because Mr. Szwaja satisfies the

requirements for becoming a federal

candidate under 2 U.S.C. §441a(d).2

Date Issued: December 1, 2000;

Length: 5 pages.✦

1

 The Commission has also granted

state committee status to a state

affiliate of a qualified national party

committee where its only federal

candidates, as defined under the Act,

were the Presidential and VicePresidential candidates of the national

party. AO 1997-3.

2

 An individual becomes a candidate for

the purposes of the Act once he or she

receives contributions aggregating in

excess of $5,000, or makes expenditures

in excess of $5,000. Federal candidates must designate a principal

campaign committee within 15 days

after qualifying as a candidate, and the

committee also becomes subject to

registration and reporting requirements. 2 U.S.C. §§432(e)(1) and

434(a); 11 CFR 101.1, 102.1 and

104.1.

Alternative Disposition of

Advisory Opinion Requests

Court Cases

John J. Hooker v. All

Campaign Contributors, et al.

On October 18, 2000, the U.S.

District Court for the Middle

District of Tennessee, Nashville

Division, granted the defendants’

request to dismiss this case. The

court found that:

• The Presidential Election Campaign Fund Act and the Matching

Payment Act, 26 U.S.C. §9001-

9043, are constitutional under

Buckley v. Valeo;

• The plaintiff lacked standing to

challenge Congress’s authority to

regulate federal elections;

• The plaintiff’s challenges to

political contributions in federal

elections failed to state a claim for

relief; and

• The plaintiff’s claims challenging

federal election statutes are

precluded by the plaintiff’s prior

lawsuits.

U.S. District Court for the Middle

District of Tennessee, Nashville

Division, 3:00-0496.✦

Natural Law Party of the

United States of America, et

al. v. FEC

On November 21, 2000, the

plaintiffs and the defendant stipulated

and agreed to dismiss this case with

prejudice and without costs.

U.S. District Court for the District

of Columbia, 98-1025 (ESH).✦

Patrick J. Buchanan, et al. v.

FEC (00-5337)

On November 30, 2000, the U.S.

Court of Appeals for the District of

Columbia Circuit granted the

motion by Buchanan et al. to

dismiss their appeal. The FEC did

not oppose the motion.

U.S. Court of Appeals for the

District of Columbia, 00-5337.✦

AOR 2000-33

On December 8, 2000, the

requester withdrew his request for

this advisory opinion. The request,

submitted on October 17, 2000,

sought the Commission’s opinion on

the reporting of a disputed and

unenforceable debt from the 1992

election cycle.✦

Advisory Opinion Requests

AOR 2000-40

Donating excess campaign funds

by one Member of Congress to legal

expense fund of another Member

(U.S. Representative Jim

McDermott, December 6, 2000)✦
January 2001 Federal Election Commission RECORD

11

Outreach

FEC Roundtables

The Commission will host

roundtable sessions in January and

February. See the table below for

more details.

FEC roundtables, limited to 12

participants per session, are conducted at the FEC’s headquarters in

Washington, DC.

The registration fee is $25, and

participants will be accepted on a

first-come, first-served basis. Please

call the FEC before registering or

sending money to be sure that

openings remain in the session.

Updated List of Federal PACs

The Commission has published

the 2000 edition of PACronyms, a

list of the acronyms, abbreviations

and common names of federal

political action committees (PACs).

For each PAC listed, the index

provides the full name of the PAC,

its city, state, FEC identification

number and, if not identifiable from

the full name, its connected, sponsoring or affiliated organization.

The index is helpful in identifying PACs that are not readily

identified in their reports and

statements on file with the FEC.

To order a free copy of

PACronyms, call the FEC’s Public

Records Office at 800/424-9530

(press 3) or 202/694-1120.

PACronyms is also available on

diskette for $1. PACronyms can also

Publications

Public Appearances

January 19, 2001

Chapman University Law

Review

Orange, California

Commissioner Smith

January 24, 2001

Public Affairs Council

Marco Island, Florida

Commissioner Smith

George Smaragdis

Prepayment is required. The registration form is available at the

FEC’s Web site—http://

www.fec.gov/pdf/rndtabl.pdf—and

from Faxline, the FEC’s automated

fax system (202/501-3413, request

document 590). For more information, call 800/424-9530 (press 1,

then 3) or 202/694-1100.✦

be accessed for free on the FEC’s

Web site at www.fec.gov. Click on

the “FEC Services” icon and look

under “Political Action Committees,” or click on the “Guide to

Researching Public Records” icon.

Other PAC indexes, described

below, may be ordered from the

Public Records Office. Prepayment

is required.

• An alphabetical list of all registered PACs showing each PAC’s

identification number, address,

treasurer and connected organization ($13.25).

• A list of registered PACs arranged

by state, providing the same

information as above ($13.25).

• An alphabetical list of organizations that sponsor PACs, showing

the PAC’s name and identification

number ($7.50).

The Public Records Office can

also conduct database research to

locate federal political committees

when only part of the committee

name is known. Call the telephone

numbers above for assistance or

visit the Public Records Office in

Washington, D.C. at 999 E St.,

N.W.✦

Roundtables

Candidate Preparations for the Next Election Cycle

• New election-cycle reporting rules

• New electronic filing rules for campaigns

• Candidate registration

• Contribution limits and prohibitions

• House and Senate campaigns

• Lawyers, consultants and party

staff who advise campaigns

The New Electronic Filing Rules and FEC

Forms for PACs

Explanation and Q/A about the new electronic

filing requirements and the new forms used by

paper filers

• Corporate/Labor/Trade Association PACs

• Nonconnected PACs

• Lawyers and consultants to PACs

Date Subject Intended Audience

Filled!

Waiting List

Only

Filled!

Waiting List

Only

January 10, 2001

9:30 - 11:00 a.m.

February 7, 2001

9:30 - 11:00 a.m.
FEDERAL ELECTION COMMISSION

999 E Street, NW

Washington, DC 20463

Official Business

Penalty for Private Use, $300

Bulk Rate Mail

Postage and Fees Paid

Federal Election Commission

Permit Number G-31

Printed on recycled paper

Federal Election Commission RECORD January 2001

Index

The first number in each citation

refers to the “number” (month) of

the 2001 Record issue in which the

article appeared. The second

number, following the colon,

indicates the page number in that

issue. For example, “1:4” means

that the article is in the January

issue on page 4.

Advisory Opinions

2000-32: Reporting uncollectable

loan, 1:9

2000-35: Status of Green Party of

Washington as state committee of

political party, 1:10

Court Cases

_____ v. FEC

– Buchanan, 1:10

– Natural Law Party of the United

States of America, 1:10

Other

– Hooker v. All Campaign Contributors, 1:10

Regulations

Final rules for general public

political communications coordinated with candidates and party

committees; independent expenditures, 1:2

Reports

Reports due in 2001, 1:4