January 2002 Federal Election Commission Volume 28, Number 1

Table of Contents

1 Message from the Chairman

Commissioners

2 2002 Chairman and Vice

Chairman Elected

Reports

2 Reports Due in 2002

11 Committees Required to File Tax

Returns with the IRS

11 Advisory Opinions

Court Cases

12 On Appeal

Administrative Fines

13 Administrative Fine Program

Extended

14 Federal Register

Outreach

14 FEC Conferences in February and

March

14 Spring Conference Schedule

15 Roundtable

Publications

15 Updated List of Federal PACs

15 Updated Campaign Guide

16 Index

Compliance

A Message from the Chairman

Communication is the essence of election campaigns. Communication is

among the most basic of human functions and the object of some of our most

advanced technology. This year, the FEC will strive to improve its internal

and external communications. More dynamic and informative disclosure of

campaign finance reports and data is a principal objective of the wholesale

upgrade of our internal computer network to be conducted in 2002.

Rather than restricting behavior, many FEC regulations describe when,

how and whether certain statutory legal rules apply. Regulations describing

safe harbors for Internet political activity, defining the dates on which

independent expenditure reports must be filed and outlining how to report

receipts of combined federal and nonfederal contributions are high on the

Commission’s agenda for 2002. Revisions to our rules for publicly-funded

presidential campaigns and conventions must also be completed this year.

We have a full schedule of seminars and publication revisions which,

along with other activities of our Information, Disclosure and Reports

Analysis Divisions, are designed to better inform candidates, treasurers,

political committees and the public about the requirements of federal campaign finance law.

We welcome your questions and comments. 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.

We look forward to improving our communications with you in the

coming year.
Federal Election Commission RECORD January 2002

2

Reports Due in 2002

This article on filing requirements for 2002 is supplemented by

the reporting tables on the following

pages.

It is the responsibility of the

committee treasurer to file required

reports on time. To assist treasurers,

the Commission sends committees

Reports

(continued on page 4)

2 See “Where to File” on page 10.

1

 The regulation covers individuals and

organizations required to file reports

with the Commission, including any

person making an independent expenditure.

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)

David M. Mason, Chairman

Karl J. Sandstrom, Vice Chairman

Danny L. McDonald,

 Commissioner

Bradley Smith, Commissioner

Scott E. Thomas, Commissioner

Darryl R. Wold, Commissioner

James A. Pehrkon, Staff Director

Lawrence H. Norton, General

 Counsel

Published by the Information

 Division

Greg J. Scott, Acting Assistant

 Staff Director

Amy Kort, Editor

http://www.fec.gov

Commissioners

New Chairman and Vice

Chairman Elected

On December 13, 2001, the

Commission elected David M.

Mason as its Chairman and Karl J.

Sandstrom as its Vice Chairman for

2002.

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. He joined Heritage in

1990 as Director of Executive

Branch Liaison. In 1995 he became

Vice President, Government Relations, and in 1997 he was designated

Senior Fellow with a focus on

research, writing and commentary

on Congress and national politics.

Before joining the Heritage

Foundation, 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. He worked in numerous

Congressional, Senatorial, Gubernatorial and Presidential campaigns,

and was himself the Republican

nominee for the Virginia House of

Delegates in the 48th District in

1982.

Chairman Mason attended

Lynchburg College in Virginia and

graduated cum laude from

Claremont McKenna College in

California.

Vice-Chairman Sandstrom was

also nominated to the Commission

by President Clinton in 1998. Prior

to his appointment, Vice-Chairman

Sandstrom served as Chairman of

the Administrative Review Board at

the Department of Labor. From

1988 to 1992, he was Staff Director

of the House Subcommittee on

Elections, during which time he also

served as the Staff Director of the

Speaker of the House’s Task Force

on Electoral Reform. From 1979 to

1988, Vice-Chairman Sandstrom

served as the Deputy Chief Counsel

to the House Administration Committee of the House of Representatives.

Vice-Chairman Sandstrom

received a B.A. degree from the

University of Washington, a J.D.

from George Washington University

and a Masters of the Law of Taxation from Georgetown University

Law Center.✦

—Amy Kort

notices of upcoming reporting

deadlines.

Under the Commission’s mandatory electronic filing regulations,

individuals and organizations1

 that

receive contributions or make

expenditures in excess of $50,000 in

a calendar year—or expect to do

so—must file all reports and statements with the FEC electronically.

Electronic filers who instead file on

paper or submit an electronic report

that does not pass the validation test

will be considered nonfilers and

may be subject to enforcement

actions (including administrative

fines).

Committees that file with the

Secretary of the Senate2

 are not

subject to the mandatory electronic

filing rules, but may file an unofficial electronic copy of their reports

with the FEC in order to speed

disclosure. 11 CFR 104.18.

The Commission’s electronic

filing software, FECFile 4, can be

downloaded from the FEC’s web

site at www.fec.gov (click on the

Electronic Filing icon). Filers may

also use commercial or privatelydeveloped software as long as the

software meets the Commission’s

format specifications, which are

available on the Commission’s web

site.

Most paper forms are available at

the FEC’s web site (http://

www.fec.gov/reporting.html) and

from FEC Faxline, the agency’s

automated fax system (202/501-

3413). The 2002 Reporting Schedule is also available on the FEC’s

web site (http://www.fec.gov/pages/

report.htm). For more information

on reporting, call the FEC at 800/

424-9530 (press 1, then 3) or 202/

694-1100.
January 2002 Federal Election Commission RECORD

3

Guide to 2002 Reporting

All committees must also file a 2001 Year-End Report, due January 31, 2002.

Required Reports

Pre- Pre- PostType of Filer Semiannual Quarterly Monthly Primary 1 General General

House and Senate Campaigns ✓ ✓✓✓

of 2002 Candidates required if candidate runs in election,

 even if unopposed

Other House and Senate ✓

Campaigns 2

Presidential Campaigns 3 ✓ or ✓

PACs and Party Committees ✓ ✓✓

Filing Monthly filed in lieu of November and

 December monthly reports

PACs and Party Committees ✓ ✓✓✓

Filing Quarterly 4 required only if committee required

 makes contributions or regardless

expenditures in connection of activity

 with a federal election

 during the reporting period 5

1Category also includes pre-convention and pre-runoff reports. For pre-election reporting dates, see the table on pages 5-8.

2 Special election candidates must file additional reports pertaining to their special elections. See periodic Record announcements.

3Presidential committees that wish to change their filing frequency during 2002 should notify the Commission in writing.

4PACs and party committees that filed on a semiannual basis in 2001 file on a quarterly basis in 2002. To avoid the need to file

pre-primary and pre-runoff reports, these committees may change to monthly filing if they first notify the Commission in writing.

Committees may change filing frequency only once a year. 11 CFR 104.5(c).

5A reporting period begins with the close of books for the last report filed and ends with the closing date for the applicable

report.
Federal Election Commission RECORD January 2002

4

2001 Year-End Report

Note: All committees file this report.

Report Period Covered Filing Date 1

Year-End Closing date January 31, 2002

of last report

through 12/31/01

2002 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 202

May April 1-30 May 20

June May 1-31 June 20

July June 1-30 July 202

August July 1-31 August 20

September August 1-31 September 20

October September 1-30 October 202

Pre-General3 October 1-16 October 24

Post-General Oct. 17-Nov. 25 December 5

Year-End Nov. 26-Dec. 31 January 31, 2003

2002 Quarterly Reports

Report Close of Books Filing Date 1

1st Quarter March 31 April 15

2nd Quarter June 30 July 15

3rd Quarter September 30 October 15

Year-End December 31 January 31, 2003

Pre- and Post-Election Reports

for November 5 General Election

Report Close of Books Filing Date 1

Pre-General 3 October 16 October 24

Post-General November 25 December 5

1Reports sent by registered or certified mail must be postmarked by the filing date

(except in the case of the pre-general election report). Reports sent by other means—

including first class mail—must be received by the filing date. 11 CFR 104.5(e).

Reports

(continued from page 2)

(continued on page 9)

Table 1

3

 If sent by registered or certified mail, the pre-general must be postmarked by

October 21.

2 Notice that this deadline falls on a Saturday or Sunday. Filing dates are not extended

for weekends or holidays. Reports filed on paper or diskette should be received by the

appropriate filing office the Friday before the filing date.

Year-End Reports Covering 2001

Activity

All committees must file a 2001

year-end report due January 31, 2002.

The coverage and reporting dates are

found in Table 1.

Reports Covering 2002 Activity

To find out which reports your

committee must file in 2002, check

the Guide to 2002 Reporting on

page 3. Then check the tables on the

following pages for reporting dates.

Please note that committees active

in special elections in 2002 may

have to file additional special

election reports, as explained on

page 10.

Authorized Committees

of Candidates

2002 House and Senate Candidates. Campaigns that raise or spend

more that $5,000 for the 2002

election cycle (and thus trigger

registration and reporting requirements) must file quarterly reports

throughout 2002, even if the candidate plans to retire, withdraws from

the race prior to the primary election, loses the primary or drops out

of the race prior to the general

election. Committees must continue

to file reports until the Commission

notifies them in writing that their

termination report has been accepted.

 Authorized committees of 2002

House and Senate candidates file the

following reports:

• Quarterly reports;

• A pre-primary report;

• Pre- and post-general election

reports (if the candidate participates in the general election);

• A year-end report; and

• 48-hour notices on contributions of

$1,000 or more received less than

20 days, but more than 48 hours,

before the day of each election in

which the candidate participates.
January 2002 Federal Election Commission RECORD

5

Pre-Election Reporting Dates:

2002 Primary and Runoff Elections

Registered/Certified

State or Territory Election Day Close of Books † Mailing Date ‡ Filing Date ‡

*Alabama June 4 May 15 May 20 May 23

Runoff: June 25 June 5 June 10 June 13

* Alaska August 27 August 7 August 12 August 15

 American Samoa November 5 October 16 October 21 October 24

Runoff: November 19 October 30 November 71 November 7

 Arizona September 10 August 21 August 26 August 29

* Arkansas May 21 May 1 May 6 May 9

Runoff: June 11 May 22 May 27 2 May 30

 California March 5 February 13 February 18 2 February 21

* Colorado August 13 July 24 July 29 August 1

 Connecticut September 10 August 21 August 26 August 29

*Delaware September 7 August 18 August 23 August 26

District of Columbia September 10 August 21 August 26 August 29

 Florida September 10 August 21 August 26 August 29

† This date indicates the end of the reporting period. A reporting period always begins the day after the closing date of the last

report filed. If the committee is new and has not previously filed a report, the first report must cover all activity that occurred

before the committee registered and, if applicable, before the individual became a candidate.

‡Reports sent by registered or certified mail must be postmarked by the mailing date. Otherwise, they must be received by the

filing date.

* States holding 2002 Senate elections.

1

 The mailing date is the same as the filing date because the computed mailing date would fall one day before the primary is held.

2 Notice that the registered/certified mailing date falls on a federal holiday. The report should be postmarked before that date.
Federal Election Commission RECORD January 2002

6

Registered/Certified

State or Territory Election Day Close of Books † Mailing Date ‡ Filing Date ‡

*Georgia August 20 July 31 August 5 August 8

Runoff: September 10 August 21 August 26 August 29

Guam September 7 August 18 August 23 August 26

 Hawaii September 21 September 1 September 6 September 9

* Idaho May 28 May 8 May 13 May 16

* Illinois March 19 February 27 March 4 March 7

 Indiana May 7 April 17 April 22 April 25

*Iowa June 4 May 15 May 20 May 23

*Kansas August 6 July 17 July 22 July 25

*Kentucky May 28 May 8 May 13 May 16

*Louisiana August 233 August 3 August 8 August 114

*Maine June 11 May 22 May 27 2 May 30

Maryland September 10 August 21 August 26 August 29

*Massachusetts September 17 August 28 September 2 2 September 5

*Michigan August 6 July 17 July 22 July 25

*Minnesota September 10 August 21 August 26 August 29

† This date indicates the end of the reporting period. A reporting period always begins the day after the closing date of the last

report filed. If the committee is new and has not previously filed a report, the first report must cover all activity that occurred

before the committee registered and, if applicable, before the individual became a candidate.

‡Reports sent by registered or certified mail must be postmarked by the mailing date. Otherwise, they must be received by the

filing date.

* States holding 2002 Senate elections.

2 Notice that the registered/certified mailing date falls on a federal holiday. The report should be postmarked before that date.

3

 In AO 2000-29, the Commission determined that the last day to qualify for a position on the general election ballot in Louisiana—in this case August 23, 2002—must be considered the primary election date for Louisiana candidates. See 11 CFR

100.2(c)(4)(i). Additionally, under state law if no candidate in the November 5 general election receives over 50 percent of the

vote, a runoff election will be held on December 7, 2002. If the runoff is held, a pre-runoff report will be due on November 25,

2002. The close of books for the pre-runoff report will be November 17, and the mailing date for reports sent by registered or

certified mail will be November 22.

4 Notice that this deadline falls on a weekend or federal holiday. Filing dates are not extended for weekends or holidays. Reports

filed on paper or diskette must be received by the appropriate filing office(s) the Friday before the filing date.
January 2002 Federal Election Commission RECORD

7

Registered/Certified

State or Territory Election Day Close of Books † Mailing Date ‡ Filing Date ‡

*Mississippi June 4 May 15 May 20 May 23

Runoff: June 25 June 5 June 10 June 13

*Missouri August 6 July 17 July 22 July 25

*Montana June 4 May 15 May 20 May 23

*Nebraska May 14 April 24 April 29 May 2

 Nevada September 3 August 14 August 19 August 22

*New Hampshire September 10 August 21 August 26 August 29

*New Jersey June 4 May 15 May 20 May 23

*New Mexico June 4 May 15 May 20 May 23

New York September 10 August 21 August 26 August 29

*North Carolina May 7 April 17 April 22 April 25

Runoff: June 4 May 15 May 20 May 23

North Dakota June 11 May 22 May 27 2 May 30

 Ohio May 7 April 17 April 22 April 25

*Oklahoma August 27 August 7 August 12 August 15

Runoff: September 17 August 28 September 2 2 September 5

*Oregon May 21 May 1 May 6 May 9

Pennsylvania May 21 May 1 May 6 May 9

*Rhode Island September 10 August 21 August 26 August 29

*South Carolina June 11 May 22 May 27 2 May 30

Runoff: June 25 June 5 June 10 June 13

† This date indicates the end of the reporting period. A reporting period always begins the day after the closing date of the last

report filed. If the committee is new and has not previously filed a report, the first report must cover all activity that occurred

before the committee registered and, if applicable, before the individual became a candidate.

‡Reports sent by registered or certified mail must be postmarked by the mailing date. Otherwise, they must be received by the

filing date.

* States holding 2002 Senate elections.

2 Notice that the registered/certified mailing date falls on a federal holiday. The report should be postmarked before that date.
Federal Election Commission RECORD January 2002

8

Registered/Certified

State or Territory Election Day Close of Books † Mailing Date ‡ Filing Date ‡

*South Dakota June 4 May 15 May 20 May 23

Runoff: June 18 May 29 June 3 June 6

*Tennessee August 1 July 12 July 17 July 20 4

*Texas March 12 February 20 February 25 February 28

Runoff: April 9 March 20 March 25 March 28

Utah June 25 June 5 June 10 June 13

Vermont September 10 August 21 August 26 August 29

Virgin Islands September 14 August 25 August 30 September 2 4

*Virginia June 11 May 22 May 27 2 May 30

 Washington September 17 August 28 September 2 2 September 5

*West Virginia May 14 April 24 April 29 May 2

Wisconsin September 10 August 21 August 26 August 29

*Wyoming August 20 July 31 August 5 August 8

† This date indicates the end of the reporting period. A reporting period always begins the day after the closing date of the last

report filed. If the committee is new and has not previously filed a report, the first report must cover all activity that occurred

before the committee registered and, if applicable, before the individual became a candidate.

‡Reports sent by registered or certified mail must be postmarked by the mailing date. Otherwise, they must be received by the

filing date.

* States holding 2002 Senate elections.

2 Notice that the registered/certified mailing date falls on a federal holiday. The report should be postmarked before that date.

4 Notice that this deadline falls on a weekend or federal holiday. Filing dates are not extended for weekends or holidays. Reports

filed on paper or diskette must be received by the appropriate filing office(s) the Friday before the filing date.
January 2002 Federal Election Commission RECORD

9

Reports

(continued from page 4)

These notices are due within 48

hours of the committee’s receipt of

the contribution. 11 CFR 104.5(a)

(1) and (f).3

Note: Committees are required to

file election reports and 48-hour

notices even if the candidate is

unopposed in the election. Moreover,

these reporting requirements still

apply even if a primary or general

election is not held because the

candidate is unopposed or received

a majority of votes in the previous

election. However, no report is

required for a primary election that

is not held because the candidate

was nominated by a caucus or

convention,4

 for which a preelection report was filed. See

11 CFR 110.1(j). Also, a candidate

who withdraws from the election

before participating in the primary

would not have to file a pre-primary

report or other pre-election reports

unless the candidate’s name remained on the ballot.

Other House and Senate Candidates. Committees authorized by

House and Senate candidates who

ran or intend to run in a year other

than 2002 file on a semiannual

basis. 11 CFR 104.5(a)(2).

Presidential Candidates. All

committees authorized by Presidential candidates must file on either a

monthly or a quarterly schedule. A

Presidential committee wishing to

change its filing schedule should

notify the Commission in writing.

11 CFR 104.5(b)(2).

PACs and Party Committees

PACs (separate segregated funds

and nonconnected committees) and

party committees that filed on a

semiannual basis during 2001 now

file on a quarterly basis. Monthly

filers continue on the monthly

schedule. PACs and party committees

may, however, change their filing

schedule, as explained later in this

section.

Note that all PACs, whichever

schedule they follow, are subject to

the 24-hour filing requirement for

last-minute independent expenditures (also explained later).

Quarterly Filers. A PAC or party

committee that files on a quarterly

basis must file a post-general

election report and a year-end

report. 11 CFR 104.5(c)(1)(i) and

(iii).

Additionally, quarterly filers may

have to file pre-convention, preprimary, pre-runoff and pre-general

election reports (see the table on

pages 5-8). The requirement to file a

pre-election report is triggered if the

committee makes a contribution or

expenditure in connection with a

federal election during the applicable reporting period. 11 CFR

104.5(c) (1)(ii). A reporting period

begins the day after the close of

books for the last report filed and

continues through the close of books

for the pre-election report.

Note that, although the FEC

sends committees notices of upcoming reporting deadlines for quarterly

reports and general election reports,

the agency does not send PACs or

party committees pre-election

reporting notices for Congressional

conventions, primaries or runoffs.

Monthly Filers. Unlike quarterly

filers, PACs and party committees

filing on a monthly basis do not file

pre-election reports for conventions,

primaries or runoff elections. They

must, however, file pre- and postgeneral election reports in lieu of the

November and December monthly

reports. Monthly filers must also file

a year-end report. 11 CFR

104.5(c)(3).

Changing the Filing Schedule.

PACs and party committees filing

on a quarterly schedule may change

to a monthly schedule in order to

avoid having to file pre-convention,

pre-primary and pre-runoff reports.

Committees changing from a

quarterly to a monthly schedule, or

from a monthly to a quarterly

schedule, must first notify the

Commission in writing. The notification must accompany a report

filed under the committee’s current

reporting schedule. A committee

may change its filing frequency only

once a year. 11 CFR 104.5(c).

24-Hour Reports on Independent

Expenditures. Any PAC (including

a monthly filer) that makes independent expenditures in connection

with any federal election (convention, primary, runoff, general) may

have to file a 24-hour report. This

report is required when a committee

makes independent expenditures

aggregating $1,000 or more less

than 20 days, but more than 24

hours, before the day of the election.

The report must be received within

24 hours after the expenditure is

made. For more information on the

24-hour reporting requirement, see

11 CFR 104.4(b) and (c) and

104.5(g). See also “Where to File”

(below) for special filing requirements.

Waiver of State Filing

Under the Commission’s State

Filing Waiver program, qualified

states are relieved of the requirement to make paper copies of FEC

reports available to the public. As a

result, political committees no

longer have to file copies of their

3 Since 48-hour notices do not have to

be signed by the treasurer, paper filers

may submit them by fax—other reports

and statements may not be faxed. AO

1988-32. Committees, other than

Senate committees, may also file their

48-hour notices online. For more

information concerning online filing,

visit the FEC web site at www.fec.gov

and click on the Electronic Filing logo.

4 A pre-convention report is required

only if the convention has authority to

nominate. See 11 CFR 100.2(e).

(continued on page 10)
Federal Election Commission RECORD January 2002

10

Reports

(continued from page 9)

federal reports at the state level in

the states that have received the

waiver.5 Committees in states not

certified 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.

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

has not been certified for a waiver. 2

U.S.C. §439(a)(2)(B). See footnote

5.

Senate Candidate Committees.

Principal campaign committees of

Senate candidates file with the

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 has

not been certified for a waiver. 2

U.S.C. §439(a)(2)(B). See footnote

5.

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 has

not been certified for a waiver.

11 CFR 108.2. See footnote 5.

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). 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. PACs and party

committees that support candidates

running in states not certified for the

waiver must simultaneously file

copies of reports and statements

with the Secretary of State or

equivalent officer. See footnote 5.

Election Cycle Reporting

Authorized candidate committees

must aggregate receipts and disbursements on an election-cycle

basis, rather than on a calendar-year

basis. 11 CFR 104.3.

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

Fine program and on a case-by-case

basis. For more information on the

Administrative Fine program, visit

the FEC web site at www.fec.gov

and click on the Administrative Fine

icon.

Committees Active in Special

Elections

Committees authorized by

candidates running in any 2002

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).

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.

11 CFR 104.5(c)(3) and 104.5(h).

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. ✦

—Amy Kort

5

 The Commission has certified that the

following states and territories qualify

for filing waivers: Alabama, American

Samoa, Arizona, Arkansas, California,

Colorado, Connecticut, Delaware,

Florida, Georgia, Hawaii, Idaho,

Illinois, Indiana, Kansas, Kentucky,

Louisiana, Maine, Maryland, Michigan,

Minnesota, Mississippi, Missouri,

Nebraska, Nevada, 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.
January 2002 Federal Election Commission RECORD

11

Committees Required to File

Tax Returns

Under federal tax law, certain

political organizations established

under section 527 of the Internal

Revenue Code must now file both

tax returns and information returns

with the Internal Revenue Service.

These filings are required under the

tax code and, thus, are administered

by the Internal Revenue Service—

not the Federal Election Commission. Nevertheless, as a service to

readers of the Record, the Commission is providing the following

information on tax requirements.

Tax Returns (Form 1120-POL)

A political organization must file

an income tax return (Form 1120-

POL) if it has either taxable income

over $100 or $25,000 or more in

gross receipts.1

Form 1120-POL is due by the

15th day of the 3rd month after the

end of the organization’s tax year.

Thus, for example, an organization

with a fiscal year ending on September 30 must file a return on or

before December 15. Form 7004

Form 1120 POL

Filed if the committee’s

annual gross receipts are

$25,000 or more, or if it

has taxable income

Filed if the

committee’s annual

gross receipts are

$25,000 or more

Due the 15th day of the

3rd month after the close

of the tax year

Due the 15th day of

the 5th month after

the close of the tax

year

Tax Year

Beginning On or

After July 1, 2000

Reporting

Dates

IRS Filing Requirements

Form 990

Extension Form Form 7004 Form 8868

1

 For taxable years beginning before

July 1, 2000, Form 1120-POL was

required only for organizations having

over $100 in taxable income.

2

 Organizations with gross receipts of less

than $100,000 and assets of less than

$250,000 at the end of the year may file a

Form 990-EZ, Short Form Return of

Organizations Exempt from Income Tax.

All other political organizations file a

Form 990, Return of Organization

Exempt from Income Tax.

Advisory

Opinions

AO 2001-13

National Committee Status

of Party Committee

The coordinating committee of

the Green Party of the United States1

(the Party) is a “national committee”

for the purposes of the Federal

Election Campaign Act (the Act).

The Act defines a “national

committee” as “the organization

which, by virtue of the bylaws of a

political party, is responsible for the

day-to-day operation of such

political party at the national level,

as determined by the Commission.”

2 U.S.C. §431(14). See also 11 CFR

100.13. Before the Commission can

confer national committee status,

however, it must establish that the

party involved qualifies as a “political party” under the Act. The Act

defines “political party” as “any

association, committee, or organiza1

 There are two national organizations

within the Green political movement,

the Green Party of the United States

(formerly known as the Association of

State Green Parties) and the Greens/

Green Party USA. In 1996, the Commission determined that Greens/Green

Party USA did not qualify as the

national committee of a political party,

in part because Ralph Nader—its 1996

Presidential candidate—did not qualify

as a candidate under the Act and

Commission regulations. AO 1996-35.

The Association of State Green Parties

was formed after the 1996 election,

following the Greens/Green Party

USA’s failure to qualify as the national

committee of a political party.

(continued on page 12)

may be used to request a six-month

extension of this filing deadline.

Information Returns (Form 990

or 990-EZ)

A political organization that has

$25,000 or more in gross receipts is

also required to file an exempt

organization information return

(Form 990 or 990-EZ2

).

The exempt organization information return, unless extended, is

due on the 15th day of the 5th month

after the end of the fiscal year.

Therefore, the organization referenced above would file Form 990 or

990-EZ on or before January 15.

The due date may be extended for

three months, without a showing of

cause, by filing Form 8868 before

the due date of the return; an

additional three-month extension

may be requested on Form 8868 if

the committee shows reasonable

cause why the return cannot be filed

by the extended due date.

The forms and their instructions

may be downloaded from the IRS

web site (www.irs.gov/polorgs).

Questions about the filing requirement may be directed to the IRS at

1-877-829-5500.✦
Federal Election Commission RECORD January 2002

12

2

 In previous advisory opinions, the

Commission concluded that a committee or political party did not qualify for

national committee status if its activity

was focused solely on the Presidential

and Vice-Presidential election (AO

1980-131 and 1978-58), if it was

limited to one state (AO 1976-95), if it

had only very few federal candidates on

state ballots (AOs 1992-44 and 1988-

45) or if its Presidential candidate or

other candidates did not qualify as

candidates as defined in the Act and

Commission regulations (AOs 1997-29

and 1996-35).

tion which nominates a candidate

for election to any Federal office

whose name appears on the election

ballot as the candidate of such

association, committee, or organization.” 2 U.S.C. §431(16).

The Green Party qualifies as a

political party under the Act because

it has obtained ballot access for its

federal candidates. Since 1998, 18

Party candidates, including Ralph

Nader and Winona LaDuke, have

achieved ballot access and have

raised or spent in excess of $5,000

for their campaigns, thus qualifying

as candidates under 2 U.S.C.

§431(2). See AOs 2001-6 and 2000-

8. See also AOs 1998-2, 1996-35,

1995-16, 1992-44 and 1992-30.

Moreover, the Party’s coordinating committee has demonstrated

enough national activity to qualify

as a national party committee. In

past advisory opinions, the Commission has applied a number of criteria

to determine whether a political

party or its committees have engaged in enough activity on the

national level to be considered a

national committee. A party demonstrates that it operates at the national

level by:

• Nominating candidates for various

federal offices in numerous states;

• Engaging in activities, such as

supporting voter registration and

get-out-the vote drives, on an

ongoing basis rather than with

respect to a particular election;

• Publicizing nationwide issues of

importance to the party and its

followers;

• Holding a national convention;

• Setting up a national office; and

• Establishing state affiliates. See

AOs 1998-2, 1996-35, 1995-16,

1992-44 and 1992-30.

The Green Party meets these

criteria. Most significantly, the

Party’s success at gaining ballot

access for its candidates extends

beyond the Presidential and VicePresidential positions.2

 Between

1998 and 2001, 16 Party candidates

in eight states, located in several

different sections of the nation,

achieved ballot access and qualified

as candidates under the Act. See

AOs 1998-2, 1996-35, 1995-16,

1992-44 and 1992-30. Additionally,

the Party has undertaken significant

party building activity at the national level that is comparable to the

activities of other national party

committees. For example, the Party:

• Engaged in various party registration and get-out-the vote activities;

• Held a national convention in

2000; and

• Made efforts to publicize the

Party’s positions.

Thus, through the functions of its

coordinating committee, the Party

has shown sufficient activity to

qualify as the national committee of

a political party for the purposes of

the Act and Commission regulations.

The Party’s national committee

status requires it to follow contribution limits at 2 U.S.C. §441a and the

national party expenditure limits at

2 U.S.C. §441 a(d).3

Date Issued: November 9, 2001;

Length: 5 pages.✦

—Amy Kort

Advisory Opinion Request

AOR 2001-20

Use of Internet Service Provider

(ISP) subscription fees, paid by

credit card, to make contributions to

candidate or political committee

recipients selected by ISP subscribers (Careau & Co. and Mohre

Communications, October 19,

2001)✦

Court Cases

On Appeal

Wertheimer et al. v. FEC

On October 26, 2001, the U.S.

Court of Appeals for the District of

Columbia upheld a district court’s

dismissal of a complaint filed against

the Federal Election Commission by

Fred Wertheimer, Scott Harsbarger

and Archibald Cox (appellants

referred to as Wertheimer).

Background. On September 13,

2000, Wertheimer filed a complaint

against the FEC in the U.S. District

Court for the District of Columbia.

In the complaint, Wertheimer

alleged that the Commission’s

failure to implement and construe

the Fund Act to identify party

expenditures coordinated with

publicly funded Presidential candidates as impermissible “contribuAdvisory Opinions

(continued from page 11)

3

 The opinion did not reach any issues

concerning the Party’s future Presidential candidates’ eligibility to receive

federal matching funds or general

election funding. 26 U.S.C. §§9031-

9042 and 26 U.S.C. §§9001-9012.

Similarly, the opinion did not reach the

issue of the Party’s future entitlement to

receive convention financing under 26

U.S.C. §9008.
January 2002 Federal Election Commission RECORD

13

Committees Fined and Penalties Assessed

 1. American Ambulance Association Federal PAC

(AMBU-PAC) 12 Day Pre-General 2000 $1,000

 2. American Ambulance Association Federal PAC

(AMBU-PAC) 30 Day Post-General 2000 $900

 3. Bakery, Confectionery, Tobacco Workers and

Grain Millers International Union Local 19

Political Organization (BCTGM) $825

 4. Bob Griffiths for Congress $3101

 5. Carroll 2000 $1,0002

 6. Cathy McConn for Congress $500

 7. Chicago Board of Options Exchange Inc. PAC $4,000

 8. Citizens for Claspill for Congress $9002

 9. Committee to Elect Jim Rooker to U.S. Congress $9002

10. Demint for Congress Committee $1,000

11. Eva Clayton Committee for Congress $3,000

12. Jean Elliott Brown for Congress $650

13. Larry Graham for Congress $1,200

14. Steve Money for Congress $4,350

15. Traficant for Congress $3,000

1Penalty reduced from $8,000 due to level of activity on the report.

2

 This civil money penalty has not been collected.

Administrative

Fines

Administrative Fine

Program Extended

On November 12, 2001, President Bush signed the Fiscal Year

2002 Treasury and General Government Appropriations Act, which

extended the Administrative Fine

program to cover violations of 2

U.S.C. §434(a) that relate to reporting periods through December 31,

2003. The final rule and Explanation

and Justification for extending the

Administrative Fine program was

published in the November 30

Federal Register (66 FR 59680).

The Administrative Fine program

was initially mandated to cover

violations of campaign finance

tions” and “expenditures” injured

them by:

• Depriving them of required

information about the source and

amount of candidates’ financing;

• Preventing them from determining

whether publicly financed candidates were abiding by the law; and

• Interfering with their right to direct

that their three-dollar income tax

return check-off be used in a

lawful fashion.

On October 10, 2000, the district

court dismissed Wertheimer’s case

on the grounds that:

• The court lacked jurisdiction to

consider Wertheimer’s claimed

informational injury; and

• Wertheimer’s other claimed

injuries did not support their

standing to sue the Commission.1

Appeals Court Decision. On

appeal, Wertheimer relied on their

alleged informational injury. The

appeals court, however, affirmed the

district court’s decision. It held that

Wertheimer had not satisfied their

burden to establish their standing to

bring the case because they had

failed to assert a sufficient injury in

fact. Wertheimer’s appeal relied on

FEC v. Akins,

2

 which, the court of

appeals explained, holds that “a

voter suffers cognizable injury

under FECA [the Federal Election

Campaign Act] when it is deprived

of information that the Act requires

disclosed.” The court concluded that

Wertheimer failed to show either

that they were deprived of any

information or that the legal ruling

they sought might provide additional factual information.

Wertheimer was not seeking additional facts, but “only the legal

determination that certain transactions constitute coordinated expenditures.” As a result, the court found

that Wertheimer failed to demonstrate standing.

2

 524 U.S. 11 (1998).

1

 See the Record, November 2000, page

9.

reporting requirements that occurred

through December 31, 2001.

Since the Administrative Fine

program was implemented with the

2000 July Quarterly report, the

Commission has processed and

made public 297 cases, with

$407,261 in fines collected. Under

this program, the number of reports

filed late has declined in each

reporting period, as compared to

prior cycles, and the number of

reports not filed has generally

decreased.

The largest percentage drop in the

number of late filers occurred with

the June 2001 monthly report, which

showed a drop of 18 percentage

points from the previous nonelection year. Similarly, the percentage of late filings decreased for the

2001 mid-year report, as compared

to previous non-election years. In

2001, ten percent of mid-year

reports were filed late. In 1999 and

1997, approximately 20 percent of

mid-year reports were filed late. The

number of nonfilers continues to

(continued on page 14)

U.S. Court of Appeals for the

District of Columbia, 00-5371.✦

—Gary Mullen
Federal Election Commission RECORD January 2002

14

Federal Register

Federal Register notices are

available from the FEC’s Public

Records Office, on the FEC web

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

register.htm and from the FEC

faxline, 202/501-3413.

Notice 2001-15

Request for Comment on Draft

Statement of Policy Regarding

Party Committee Transfers of

Nonfederal Funds for Payment of

Allocable Expenses (66 FR

56247, November 7, 2001).

Notice 2001-16

Filing Dates for the Oklahoma

Special Election in the 1st

Congressional District (66 FR

56824, November 13, 2001).

Notice 2001-17

Final Rule on Technical

Amendments to Election Cycle

Reporting (66 FR 59679,

November 30, 2001).

Notice 2001-18

Final Rule on Extension to

Administrative Fines (66 FR

59680, November 30, 2001).

Spring Conferences

Conference for Corporations

Date: April 22-24, 2002

Location: Washington, D.C.

(Loews L’Enfant Plaza)

Conference for Trade

Associations

Date: May 22-24, 2002

Location: Washington, D.C.

(Loews L’Enfant Plaza)

Conference for Member and

Labor Organizations

Date: June 26-28, 2002

Location: Washington, D.C.

(Loews L’Enfant Plaza)

FEC Conferences in

February and March

San Francisco Conference for

Candidate Committees, Parties

and PACs

In early February, the Federal

Election Commission will hold a

comprehensive, two and one-half

day regional conference in San

Francisco. This conference is

designed to help federal political

committees understand and comply

with the federal campaign finance

law. The conference will provide an

overview of the basic provisions of

the federal election law and discuss

specific requirements that apply to:

• House and Senate campaigns;

• Political parties; and

• Corporate, labor and trade association PACs (as well as their sponsoring organizations).

The conference will feature

interactive workshops presented by

Commissioners and experienced

FEC staff. A representative from the

Outreach

Internal Revenue Service will also

be available to answer electionrelated tax questions. The FEC

certifies that an application is

pending for approval of this activity

for MCLE credit by the State Bar of

California.

The conference will be held

February 5-7, 2002, at the Grand

Hyatt Hotel in San Francisco,

California. The registration fee for

the conference is $375. The fee,

which covers the cost of the conference, reception, materials and

meals, must be received by January

14, which is also the last day to

cancel and still receive a full refund.

A late registration fee of $10 will be

added for payments received on or

after January 15, 2002.

A room rate of $218 is available

for hotel reservations made by

January 14. To received this special

rate, call the Grand Hyatt Hotel at

415/398-1234 and mention that you

are attending the FEC conference.

After January 14, room rates are

subject to availability. The hotel is

located downtown on Union Square,

near cable cars, Chinatown and the

shopping district.

Washington D.C. Conference for

Candidates and Parties

The Federal Election Commission will hold a conference for

decline as well, with the 2001 midyear report showing a 47 percent

drop in nonfilings compared to the

percentage of mid-year reports not

filed in 1999.

The Commission considers

reports to be filed late if they are

received after the due date, but

within 30 days of that due date.

Election-sensitive reports are

considered late if they are filed after

their due date, but at least five days

before the election. (Election

sensitive reports are those filed

immediately before an election and

include pre-primary, pre-special,

pre-general, October quarterly and

October monthly reports). Committees filing reports after these dates

are considered nonfilers. Civil

money penalties for late reports are

determined by the amount of

activity on the report, the number of

days the report was late and any

prior penalties for violations under

the administrative fine regulations.

Penalties for nonfiled reports are

also determined by the amount of

activity on the report and any prior

violations.

Recently-publicized Administrative Fine cases are listed in the chart

on page 13. These committees, and

their treasurers, were assessed civil

money penalties under the administrative fine regulation. Closed

Administrative Fine case files are

available through the FEC Press

Office, at 800/424-9530 (press 2),

and the Public Records Office, at

800/424-9530 (press 3).✦

—Amy Kort

Administrative Fines

(continued from page 13)
January 2002 Federal Election Commission RECORD

15

Publications candidates and party committees

March 25-26, 2002, in Washington,

D.C. The conference will consist of

a series of interactive workshops

presented by Commissioners and

experienced FEC staff, who will

explain how the requirements of the

federal election law apply to House

and Senate campaigns and political

parties. In addition, a representative

from the Internal Revenue Service

will be available to answer electionrelated tax questions.

The registration fee for this

conference is $325, which covers

the cost of the conference, materials

and meals. The deadline for registration (and for fully-refunded registration cancellations) is March 1. A

late registration fee of $10 will be

added effective March 2.

The conference will be held at the

Loews L’Enfant Plaza Hotel, 480

L’Enfant Plaza, SW. Washington,

D.C. A room rate of $189 single or

double is available for reservations

made by March 1. Call 800/635-

5065 or 202/484-1000 ext. 5000 to

make reservations. In order to

receive this room rate, you must

notify the hotel that you will be

attending the FEC conference. After

March 1, room rates are based on

availability. The hotel is located

near the L’Enfant Plaza Metro and

Virginia Railway Express stations.

Registration Information

Conference registrations will be

accepted on a first-come, firstserved basis. Attendance is limited,

and FEC conferences have sold out

in the past, so please register early.

For registration information:

• Call Sylvester Management

Corporation at 800/246-7277;

• Visit the FEC web site at

www.fec.gov/pages/

infosvc.htm#Conferences; or

• Send an email to

toni@sylvestermanagement.com.✦

—Amy Kort

Updated List of Federal

PACs

The Commission has published

the 2001 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. In addition,

PACronyms can be accessed for free

on the FEC’s web site at

www.fec.gov. Click on the “Campaign Finance Reports and Data ”

icon and look under “Political

Action Committees,” or click on the

“Guide to Researching Public

Records” icon under “FEC Services.”

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 at 999 E St., NW.✦

—Amy Kort

Updated Campaign Guide

A revised Campaign Guide for

Corporations and Labor Organizations is now available from the

Commission. The Guide provides

clear guidelines on:

• Contribution limits and prohibitions;

• Sources of candidate support;

• Campaign activity; and

• Recordkeeping and reporting.

The new Guide has been sent to

every registered separate segregated

fund committee. Copies are available for free by calling 800/424-

9530 (press 1, then 3) or 202/

694-1100. Additionally, the new

Guide can be accessed from the

FEC’s web site (http://

www.fec.gov/pdf/colagui.pdf).✦

—Amy Kort

Roundtable

 On January 9, 2002, the FEC

will hold a Roundtable on

reporting requirements for 2002.

The session, which will be held

at the FEC, is designed for House

and Senate campaigns, PACs and

party committees, as well as for

lawyers, accountants and

consultants to campaigns and

committees. This session is

currently filled. To be placed on

the waiting list, please call 800/

424-9530 (press 1, then 3) or

202/694-1100.

 For more information on FEC

Roundtables, visit the FEC web

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

infosvc.htm.
FEDERAL ELECTION COMMISSION

999 E Street, NW

Washington, DC 20463

Official Business

Penalty for Private Use, $300

Presorted Standard

Postage and Fees Paid

Federal Election Commission

Permit Number G-31

Printed on recycled paper

Federal Election Commission RECORD January 2002

The first number in each citation

refers to the “number” (month) of

the 2002 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

2001-13: National committee status

of party committee, 1:11

Compliance

Administrative Fine program

extended, 1:13

Court Cases

_____ v. FEC

– Werthheimer, 1:12

Reports

IRS filing requirements, 1:11

Reports due in 2002, 1:2

Index Important Filing Information

In response to the anthrax threat, the U.S. Postal Service is irradiating mail

directed to many federal government agencies, including the Federal Election

Commission. This process has not only delayed mail delivery, it has also

damaged and in some cases destroyed pieces of mail. As a result, committees

that file reports with the Federal Election Commission may want to consider

submitting their reports by some means other than regular U.S. mail.

Alternative methods include:

• Electronic filing;

• Overnight mail service; and

• Hand delivery.

Committees that choose to file electronically can download free FECFile

software from the FEC web site at http://www.fec.gov/elecfil/electron.html,

and may contact the Commission’s Electronic Filing office for assistance at

(800) 424-9530 or (202) 694-1307.