July 2004 Federal Election Commission Volume 30, Number 7

Table of Contents

(continued on page 2) (continued on page 2)

800 Line Reports

July Reporting Reminder

Committees filing on a quarterly 

basis must file their second quarterly 

report by July 15. The report covers 

financial activity from April 1 (or the 

day after the closing date of the last 

report) through June 30.

In addition to filing quarterly 

reports, committees of House and 

Senate candidates active in the 2004 

primary and runoff elections must 

file pre-election reports and may 

have to file 48-hour notices of lastminute contributions of $1,000 or 

more. Political action committees 

(PACs) and party committees filing 

on a quarterly basis may also have 

to file pre-election reports and 48- or 

24-hour reports of independent expenditures, depending on the timing 

of their activities.

National party committees, PACs 

following a monthly filing schedule 

and state, district and local party 

committees that engage in reportable 

federal election activity must file a 

monthly report by July 20. (See the 

April 2003 Record, page 5, for more 

information on monthly filing for 

state, district and local party committees.)

FEC Rules for National 

Convention Delegates

In recent weeks the Commission 

has received a number of questions 

concerning the application of the 

campaign finance law to national 

convention delegates and individuals 

seeking selection as a delegate. The 

material that follows offers answers 

to frequently asked questions about 

FEC rules governing delegates to 

national nominating conventions. 

To whom do these rules apply?

These rules apply to any individual who is seeking selection as 

a delegate, or who has already been 

selected as a delegate, at any level 

of the delegate selection process 

(local, state or national). 11 CFR 

110.14(b)(1). 

Do delegates have to file reports 

with the FEC?

No. Individual delegates are not 

required to register or file regular 

reports of the funds they raise and 

spend for their personal delegate 

activity. 11 CFR 110.14(d)(3) and 

(e)(2). However, delegates acting as 

a group may have to file reports as 

 800 Line

 1 FEC Rules for National 

Convention Delegates

 Reports

 1 July Reporting Reminder

 9 North Carolina Special Election

 Nonfilers

 5 Committees Fail to File PreElection Reports

 Statistics

6 Congressional Financial Activity 

Continues to Grow

 7 Party Fundraising Continues in 

2004

 Public Funding

 7 Nader Eligible for Primary 

Matching Funds

 8 Commission Certifies Matching 

Funds for Presidential Candidates

 Alternative Dispute Resolution

 9 ADR Update

 10 Advisory Opinions

 Compliance

 10 EQS Update

 Outreach

 10 Roundtable on New Rules for PreElection Communications

 11 Index
Federal Election Commission RECORD July 2004

2

Reports

(continued from page 1)

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)

Bradley A. Smith, Chairman

Ellen L. Weintraub, Vice Chair

David M. Mason, Commissioner

Danny L. McDonald, 

 Commissioner

Scott E. Thomas, Commissioner

Michael E. Toner, Commissioner

James A. Pehrkon, Staff Director

Lawrence H. Norton, General

 Counsel

Published by the Information

 Division

Greg J. Scott, Assistant Staff

 Director

Amy Kort, Editor

http://www.fec.gov

Under the Commission’s mandatory electronic filing regulations, 

individuals and organizations1

who 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 Commission’s 

validation program will be considered nonfilers and may be subject 

to enforcement actions, including 

administrative fines.

Senate committees and other 

committees that file with the Secretary of the Senate 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.

The Commission’s electronic 

filing software, FECFile 5, can be 

downloaded from the FEC’s web site 

www.fec.gov (click on the Electronic Filing icon). Filers may also use 

commercial or privately-developed 

software as long as the software 

meets the Commission’s format 

specifications, which are available 

on the Commission’s web site. 

For those filers who are not required to file their reports electronically, paper forms are available on 

the FEC’s web site (http://www.fec.

gov/reporting.html) and from FEC 

Faxline, the agency’s automated fax 

system (202/501-3413).

Additional Information

For more information on 2004 

reporting dates:

• See the reporting table in the January 2004 Record;

• Call and request the reporting 

tables from the FEC at 800/424-

9530 or 202/694-1100;

• Fax the reporting tables to yourself 

using the FEC’s Faxline (202/501-

3413, document 586); or

• Visit the FEC’s web site at www.

fec.gov/pages/charts.htm to view 

the reporting tables online.

 —Amy Kort

1

 The regulation covers individuals and 

organizations required to file reports 

with the Commission, including any 

person making an independent expenditure. Disbursements for electioneering 

communications do not count toward the 

$50,000 threshold for mandatory electronic filing. See 11 CFR 104.18(a).

a delegate committee. See “Do delegate committees have to file FEC 

reports?” below.

How are funds raised and spent 

for delegate activity treated under 

the federal campaign finance law?

Funds raised and spent for 

delegate selection are considered 

“contributions” and “expenditures” 

made for the purpose of influencing 

a federal election1 and are therefore 

subject to the federal law’s prohibitions.2

 11 CFR 110.14(c)(1) and 

(2). Although the law does not limit 

contributions per delegate, certain 

other contribution limits apply. 11 

CFR 110.1(m)(1); 110.14(d). Please 

note that these prohibitions and limits apply to contributions of goods 

and services (in-kind contributions) 

as well as to monetary contributions. 

11 CFR 100.52(d). 

Who is prohibited from 

contributing to a delegate?

Individual delegates may not accept any contributions from sources 

prohibited from making contributions in connection with federal elections. 11 CFR 110.14(c)(2). These 

sources include: 

• Corporations (including banks and 

nonprofit corporations); 

• Labor organizations; 

• Foreign nationals or businesses

(except “green card” holders—

those admitted to the United States 

for permanent residence); and 

• Federal government contractors 

(such as partnerships and sole proprietors with federal contracts). 11 

CFR 110.20, 114.2, 115.2, 115.4 

and 115.5. 

What are the limits on 

contributions to delegates?

Although contributions to an 

individual delegate are not subject 

to any per-delegate limit, they do 

800 Line

(continued from page 1)

1

 A national nominating convention is 

considered a federal election. 11 CFR 

100.2(e). 

2

 Ballot access fees paid by an individual delegate to a political party are 

not considered contributions or expenditures—nor are administrative payments 

made by a party committee (including 

an unregistered organization) for sponsoring a convention or caucus to select 

delegates. Nevertheless, the funds used 

to pay these expenses are subject to the 

law’s prohibitions and limits. 11 CFR 

110.14(c)(1)(i) and (ii) and 11 CFR 

110.14(c)(2). 
July 2004 Federal Election Commission RECORD 

3

(continued on page 4)

count against an individual contributor’s biennial contribution 

limit of $95,000. 11 CFR 110.1(m); 

110.5(e); 110.14(d)(1). 3 

Do these rules apply if I’m only 

raising money to pay for travel to 

the convention?

Yes. Travel and subsistence 

expenses related to the delegate 

selection process and the national 

nominating convention are considered “expenditures.” 11 CFR 

110.14(e). Thus, a delegate may not 

use prohibited funds to pay for travel 

to attend the national convention and 

related food and lodging expenses. 

AO 2000-38 and 1980-64.

I’m a federal officeholder who 

will serve as a delegate. May I use 

my campaign funds to pay for my 

travel to the convention?

Special rules apply to federal 

candidates or officeholders who 

attend the convention as delegates. 

While campaign funds may not be 

used to pay for anyone’s personal 

expenses (i.e., expenses that would 

exist irrespective of the candidate’s 

campaign or his/her duties as a federal officeholder), candidates who 

attend the convention as delegates 

may use campaign funds to pay for 

their own convention-related travel, 

food and lodging expenses. 11 CFR 

110.14(e). The Commission has 

issued advisory opinions clarifying 

that such candidates may also use 

campaign funds to pay the travel and 

subsistence expenses of other individuals (e.g., spouse, child, Congressional staff person) in connection 

with the convention if the individual 

will be engaging in significant campaign-related or officeholder-related 

activity on the candidate’s behalf 

during the convention. 11 CFR 

113.1(g); AOs 2000-12, 1996-20, 

1996-19 and 1995-47. 

Although the use of campaign 

funds to pay someone’s personal 

expenses is a violation of the personal use prohibition, when travel 

involves both personal activities and 

campaign (or officeholder) activities, 

campaign funds may be used to pay 

the personal portion of travel and 

subsistence costs if the individual 

reimburses the campaign within 30 

days. 11 CFR 113.1(g)(1)(ii)(C). 

Do expenditures I make for my 

own selection and travel count as 

contributions to a candidate?

No. Expenditures made by 

delegates or delegate committees 

solely to further their selection are 

not considered contributions to any 

candidate and are not chargeable 

to a publicly funded candidate’s 

spending limits. Examples of such 

expenditures include: 

• A communication that advocates 

the selection of delegates only; and

• Travel and subsistence expenses related to the delegate selection process and the national nominating 

convention. 11 CFR 110.14(e)(1) 

and (h)(1). 

May delegates join together to 

raise and spend funds?

Yes. Under FEC regulations, 

they would be acting as a delegate 

committee. A delegate committee is 

a group that raises or spends funds 

to influence the selection of one or 

more delegates. A delegate committee may be a group of delegates or 

a group that supports delegates. 11 

CFR 110.14(b)(2).

Do delegate committees have to 

file FEC reports?

Possibly. A delegate committee 

becomes a “political committee” 

under federal law once it receives 

contributions or makes expenditures 

exceeding $1,000 in a calendar 

year. 11 CFR 100.5(a) and (e)(5); 

110.14(b)(2). At that point, the 

committee must register with the 

FEC within 10 days and begin filing 

periodic FEC reports to disclose its 

receipts and disbursements. 11 CFR 

102.1(d) and 104.1(a). All pre-registration activity must be disclosed in 

the first report. 11 CFR 104.3(a) and 

(b). Note that a delegate committee 

that has triggered status as a federal 

political committee must include the 

word “delegate” or “delegates” in its 

name. It may also include the name 

of the Presidential candidate it supports. 11 CFR 102.14(b)(1). 

Do contribution prohibitions 

and limits apply to delegate 

committees?

Yes. The same sources prohibited 

from making contributions to a delegate (listed above) are also prohibited from making contributions to a 

delegate committee. The following 

limits apply to contributions made to 

delegate committees:

• Contributions from permissible 

sources to a delegate committee are subject to an aggregate 

limit of $5,000 per calendar year. 

11 CFR 110.1(d) and (m)(2); 

110.14(g)(1). Note, however, that if 

the delegate committee is affiliated with a Presidential campaign, 

it will share the limit applicable to 

the Presidential campaign. 11 CFR 

110.3(a).

• Contributions by individuals to 

delegate committees count against 

an individual contributor's biennial 

contribution limit of $95,000. 11 

CFR 110.5(e).

May a delegate or delegate 

committee make contributions to 

candidates?

A delegate or delegate committee may contribute a maximum of 

$2,000 to a federal candidate, per 

3

 Note that contributions to a delegate 

from the committee of a Presidential 

candidate receiving public funds count 

against the candidate’s expenditure 

limits. 11 CFR 110.14(d)(2). Presidential primary candidates receiving public 

funding must comply with an overall 

spending limit and a spending limit in 

each state. 11 CFR 9035.1. 
Federal Election Commission RECORD July 2004

4

election.4 11 CFR 110.1(b)(1). The 

primary and general are considered 

separate elections, but, in the case 

of Presidential candidates, the entire 

primary season is considered only 

one election. 11 CFR 110.1(j)(1). 

Note that a contribution to a 

candidate must be reported by the 

candidate’s committee. For this 

reason, when making an in-kind 

contribution, a delegate or delegate 

committee should notify the candidate’s committee of the monetary 

value of the in-kind contribution. 

Note also that in-kind contributions 

generally count against a publicly 

funded Presidential candidate’s 

expenditure limits.

May a delegate or delegate 

committee put out a 

communication that promotes 

both the delegate(s) and the 

Presidential candidate supported?

Yes. An individual delegate or 

a delegate committee may pay for 

communications that both: 

• Advocate the selection of an individual delegate or the delegates 

promoted by the delegate committee; and 

• Refer to, provide information on or 

expressly advocate the election or 

defeat of a Presidential candidate 

(or candidate for any public office). 

11 CFR 110.14(f) and (i).

Under federal campaign finance 

law, such a “dual-purpose” expenditure would be considered a "public 

communication" (unless it was 

distributed over the Internet), and it 

would thus trigger certain election 

law provisions.5 11 CFR 100.26. 

Moreover, depending on the circumstances, a portion of a dual-purpose 

expenditure may have to be allocated as an in-kind contribution or an 

independent expenditure on behalf 

of any federal candidate mentioned 

in the ad. 11 CFR 110.14(f) and (i). 

Finally, the communication must 

include a disclaimer notice. 11 CFR 

110.11. 

May delegates undertake some 

small grassroots dual-purpose 

communications that do not 

trigger contribution limits?

Dual-purpose expenditures for 

campaign materials such as pins, 

bumper stickers, handbills, brochures, posters and yard signs are 

not considered in-kind contributions 

on behalf of the federal candidate 

mentioned in the materials as long 

as the materials are used in connection with volunteer activities (i.e., 

are distributed by volunteers) and 

are not conveyed through public 

political advertising.6

 11 CFR 

110.14(f)(1) and (i)(1). 

When would a dual-purpose 

expenditure count against 

contribution limits to a candidate?

A portion of a dual-purpose 

expenditure is considered an in-kind 

contribution to the referenced candidate if the communication: 

• Is conveyed through public political advertising (or is not distributed 

by volunteers); and 

• Is a coordinated communication 

under 11 CFR 109.21. 11 CFR 

110.14(f)(2)(i) and (i)(2)(i). 

When would a dual-purpose 

expenditure be considered an 

independent expenditure?

A portion of a dual-purpose expenditure for a communication that 

is conveyed through public political 

advertising is considered an independent expenditure (rather than an 

in-kind contribution) on behalf of 

the candidate if the communication: 

• Expressly advocates the election 

(or defeat) of a clearly identified 

candidate; and 

• Is not a coordinated communication under 11 CFR 109.21. 11 

CFR 110.14(f)(2)(ii) and (i)(2)(ii). 

Note that an independent expenditure, whether it is paid for by a 

delegate or a delegate committee, 

must carry a disclaimer notice and 

is subject to reporting requirements. 

For more information on independent expenditures, consult 11 CFR 

Part 109. For more information on 

disclaimers, consult 11 CFR 110.11.

How do you determine what 

amount of a dual-purpose 

expenditure to allocate to the 

Presidential candidate?

The amount of a dual-purpose 

expenditure allocated as an in-kind 

contribution or independent expenditure on behalf of a candidate must 

be in proportion to the benefit the 

candidate receives, based on factors 

such as the amount of space or time 

devoted to the candidate compared 

with total space or time. 11 CFR 

106.1(a)(1). 

800 Line

(continued from page 3)

4

 A federal candidate is a candidate 

seeking election to the Presidency, the 

Vice Presidency, the U.S. Senate or the 

U.S. House of Representatives. 11 CFR 

100.4. 

5

 A public communication is a communication by means of any broadcast, cable 

or satellite communication, newspaper, 

magazine, outdoor advertising facility, 

mass mailing (more than 500 pieces of 

mail or faxes of an identical or substantially similar nature within any 30-day 

period) or telephone bank (of more than 

500 telephone calls of an identical or 

substantially similar nature within any 

30-day period). 11 CFR 100.26, 100.27 

and 100.28.

6. For purposes of the delegate selection 

regulations, public political advertising 

means political advertising conveyed 

through broadcasting, newspapers, magazines, billboards, direct mail or similar 

types of general public communication. 

11 CFR 110.14(f)(2) and (i)(2). Direct 

mail means mailings by commercial 

vendors or mailings made from lists 

not developed by the individual delegate or delegate committee. 11 CFR 

110.14(f)(4) and (i)(4). 
July 2004 Federal Election Commission RECORD 

5

What if a delegate or delegate 

committee simply distributes 

materials prepared by the 

Presidential campaign?

Expenditures by a delegate or 

delegate committee to reproduce (in 

whole or in part) or to disseminate 

materials prepared by a Presidential 

candidate’s committee (or other 

federal candidate’s committee) are 

considered in-kind contributions 

to the candidate. Although subject 

to contribution limits, this type 

of contribution is not chargeable 

to a publicly funded Presidential 

candidate’s spending limits as long 

as the expenditure is not a coordinated communication under 11 CFR 

109.21. 11 CFR 110.14(f)(3) and 

(i)(3). The materials must include a 

disclaimer notice. 11 CFR 110.11.

Is a delegate committee considered 

an affiliate of the Presidential 

campaign? If yes, what rules 

apply?

Possibly. Delegate committees—

including unregistered committees—

need to determine whether they 

are affiliated with another delegate 

committee or with a candidate’s 

committee. Affiliated committees 

are considered one political committee for purposes of the contribution limits and, thus, share the same 

limits on contributions received and 

made. 11 CFR 110.3(a)(1). (Affiliated committees may, however, 

make unlimited transfers to one 

another 102.6(a)(1)(i).) If a delegate 

committee is affiliated with the committee of a Presidential candidate 

receiving public funds, then all of 

the delegate committee’s expenditures count against the Presidential 

candidate’s expenditure limits. 

What are the factors indicating 

affiliation?

In determining whether a delegate 

committee and a Presidential committee are affiliated, the Commission 

may consider, among other factors, 

whether: 

• The Presidential campaign7

 played 

a significant role in forming the 

delegate committee; 

• Any delegate associated with a 

delegate committee has been or 

is on the staff of the Presidential 

committee; 

• The committees have overlapping 

officers or employees;

• The Presidential committee 

provides funds or goods to the 

delegate committee in a significant 

amount or on an ongoing basis (not 

including a transfer of joint fundraising proceeds);

• The Presidential campaign suggests 

or arranges for contributions to be 

made to the delegate committee;

• The committees show similar patterns of contributions received;

• One committee provides a mailing 

list to the other committee;

• The Presidential campaign provides on-going administrative support to the delegate committee; 

• The Presidential campaign directs 

or organizes the campaign activities of the delegate committee; 

and/or 

• The Presidential campaign files 

statements or reports on behalf of 

the delegate committee. 11 CFR 

110.14(j); 100.5(g)(4). See also 

AO 1988-1. 

Do affiliation rules apply to 

delegate committees that have a 

relationship with each other?

Possibly. Delegate committees 

established, financed, maintained 

or controlled by the same person 

or group are affiliated. Factors that 

indicate affiliation between delegate 

committees are found at 11 CFR 

100.5(g)(4) . 11 CFR 110.14(k).

Additional Information

For additional information on 

delegates and delegate committees, 

contact the FEC’s Information Division at 800/424-9530 or 202/694-

1100. 

 —Dorothy Yeager

7

 Campaign refers to the candidate, his 

or her authorized committee and other 

persons associated with the committee. 

Nonfilers

Committees Fail to File PreElection Reports

The Swanson for Senate Committee and Friends of Albert Turner1

failed to file 12-Day Pre-Primary 

reports for the June 1 primary election in Alabama, and Sharpton 2004 

failed to file its May 2004 monthly 

report.

Prior to the reporting deadline, 

the Commission notified committees 

of their filing obligations. Committees that failed to file the required 

reports were subsequently notified that their reports had not been 

received and that their names would 

be published if they did not respond 

within four business days.

The Federal Election Campaign 

Act requires the Commission to publish the names of principal campaign 

committees if they fail to file 12 day 

pre-election reports or the quarterly 

report due before the candidate’s 

election. 2 U.S.C. §437g(b). The 

agency may also pursue enforcement 

actions against nonfilers and late filers on a case-by-case basis. 

 —Amy Kort

1

 Friends of Albert Turner is required 

to file electronically. The committee 

filed an incomplete pre-primary report 

on paper, with coverage dates of April 

15 through May 15, 2004. The correct 

coverage dates for the report were April 

1 through May 12, 2004.
Federal Election Commission RECORD July 2004

6

0

20

40

60

80

100

120

Republicans

Democrats

1994 1996 1998 2000 2002 2004

Millions of Dollars

House Candidates

0

20

40

60

80

100

120

1994 1996 1998 2000 2002 2004

Millions of Dollars

Senate Candidates

House Candidates Senate Candidates

15-Month Spending of House and Senate Candidates—1994-2004

20

40

60

80

100

120

Republicans

Democrats

Millions of Dollars

House Candidates

Statistics

Congressional Financial 

Activity Continues to Grow

Between January 1, 2003, and 

March 31, 2004, Congressional 

campaigns raised a total of $583.3 

million—a 35 percent increase over 

the same period in the 2001-2002 

campaign. By the end of the first 

quarter of 2004, 1,655 Senate and 

House candidates had spent $331.3 

million (up 46 percent from 2002) 

and had cash on hand of $421.6 million (up 27 percent). 

Much of the increased financial 

activity occurred in Senate races, 

where candidates in this cycle’s 34 

Senate campaigns reported receipts 

of $253.5 million, disbursements of 

$140.6 million and cash balances of 

$165.3 million. These figures represent a 74 percent increase in fundraising, a 123 percent increase in 

spending and a 67 percent increase 

in cash-on hand over 2002 levels.

Comparisons across election cycles are particularly difficult for Senate races because the states involved 

vary and because a few campaigns 

can significantly affect totals. For 

example, in 2004 there are Senate 

campaigns in several large states that 

typically are more expensive. California, New York and Pennsylvania 

have incumbents seeking reelection, and there are open seat races in 

Florida and Illinois. 

During this period House campaigns raised $329.8 million (up 

15.5 percent from 2002 levels) and 

spent $190.7 million (17 percent 

above previous cycle totals). They 

reported a cash balance of $256.3 

million as of March 31. Receipts 

by Republican candidates increased 

30 percent, with large increases for 

challengers and open seat candidates. Democratic candidates’ 

receipts were 8 percent higher than 

in the last cycle, with much of that 

increase confined to incumbent 

candidates.

On January 1, 2003, the individual contribution limits to a federal 

candidate increased from $1,000 per 

candidate, per election, to $2,000 

per candidate, per election. In the 

2003-2004 cycle, contributions from 

individuals totaled $349.9 million and continue to be the largest 

source of receipts for Congressional 

candidates, representing 60 percent 

of all fundraising as of March 31. 

PAC contributions totaled $137 million, or 23 percent, while candidates 

themselves contributed or loaned a 

total of $74.8 million, representing 

13 percent of all receipts.

The charts below show House and 

Senate candidates’ spending during the 15 month period ending on 

March 31 of the election year, 1996 

to 2004. Note that the number of financially active candidates varies by 

election cycle. For example, as few 

as 837 House candidates were active 

in 1998, while as many as 1,069 

House candidates were running 

1996. Currently, 951 House candidates are spending funds in the 2004 

election cycle. For Senate races, the 

number of candidates varied from 95 

candidates in 2002 to 149 candidates 

in 1996, with 140 candidates active 

in 2004.

Additional information on 

Congressional financial activity is 

available online (http://www.fec.

gov/news.html) in a press release 

dated May 11, 2004. The release 
July 2004 Federal Election Commission RECORD 

7

offers summary data for Senate and 

House candidates by political party, 

as well as by candidate status (incumbent, challenger or open seat). 

Also included are rankings of Senate 

and House candidates for receipts, 

individual contributions, PAC and 

other committee contributions and 

disbursements, cash-on-hand and 

debts owed. Six-year financial 

summaries of Senate candidates 

for 2004, as well as current cycle 

financial summaries for each House 

campaign, are also available. 

 —Amy Kort

Party Fundraising Increases 

in 2004

Party fundraising in early 2004 

has maintained the strong pace begun in 2003. In April 2004, the Republican National Committee raised 

$22.1 million and the Democratic 

National Committee raised $19.2 

million, representing the largest 

monthly totals for both committees 

since the start of 2003. Between 

January 1, 2003, and April 30, 2004, 

the RNC raised a total of $179.5 

million, while the DNC raised $91.5 

million. 

The Senatorial and Congressional 

committees of the two major parties 

have also shown fundraising growth 

in this cycle. The National Republican Senatorial Committee (NRSC) 

raised $3.5 million in April for a 

total of $42.6 million in receipts 

since January of 2003. The Democratic Senatorial Campaign Committee (DSCC) raised $3.1 million 

in April and has raised $37 million 

so far in this two-year period. The 

National Republican Congressional Committee (NRCC) raised $8 

million in April and $101.1 million 

for the cycle, while the Democratic 

Congressional Campaign Committee 

raised $2 million in April, for a total 

of $42 million since January 2003.

The 2004 election cycle is the first 

in which national parties have been 

prohibited from receiving nonfederal 

funds, or “soft money,” under the 

Bipartisan Campaign Reform Act of 

2002 (BCRA). Changes in the law 

also affected filing schedules, and, as 

a result, comparisons with past election cycles are only possible through 

March 31. However, these comparisons show significant growth in 

federal fundraising by each of these 

national party committees. Federal 

receipts of the DNC were up 93 percent when compared to the first 15 

months of both the 2000 and 2002 

election cycles. The RNC’s receipts 

increased by 66 percent from 2002 

levels and were up 156 percent from 

their 2000 levels. Receipts were 75 

percent higher than at this point in 

2002 for the DSCC and up 16 percent for the NRSC. NRCC receipts 

were up 78 percent, while the DCCC 

increased its federal fundraising by 

85 percent when compared the comparable period in 2002. 

The BCRA also raised the amount 

of money that an individual can contribute to a national party committee 

from $20,000 per year to $25,000, 

and it raised the combined amount 

that an individual can contribute 

yearly to state and local party committees from $5,000 to $10,000.1

Contributions from individuals 

continue to be the largest source 

of funds for all party committees, 

representing more than 80 percent of 

all national party funds. 

The BCRA also included a 

provision permitting state and local 

parties to receive “Levin funds”—

limited funds raised under federal 

and state law that can be used for activities that indirectly affect federal 

elections, such as get-out-the-vote 

activities. Thus far, 14 party committees have reported raising $1.1 

million in Levin funds. They have 

spent $100,000 for voter registration 

and generic campaign activity.

Additional information on party 

committee fundraising is available 

on line (http://www.fec.gov/news.

html) in a press release dated May 

26, 2004. The press release contains, 

among other things, financial overviews for national and state/local 

committees of the two major parties 

for this 15 month period. Transfers 

from national to state parties are 

listed by state, as are national party 

proceeds from joint-fundraising 

committees and transfers from 

candidate committees to the national 

Senatorial and Congressional committees. 

 —Amy Kort

1

 These contribution limits also apply to 

non-multicandidate PACs.

Public 

Funding

Commission Certifies Nader 

for Primary Matching 

Payments

The Commission has certified that 

Ralph Nader is eligible to receive 

Presidential primary matching payments for his Presidential primary 

committee, Nader for President 

2004. 26 U.S.C. §9033(a) and (b); 

11 CFR 9033.1 and 9033.3.

Under the Presidential Primary 

Matching Payment Account Act, the 

federal government will match up to 

$250 of an individual’s total contributions to an eligible Presidential 

primary candidate. A candidate must 

establish eligibility to receive matching payments by raising in excess of 

$5,000 in each of at least 20 states 

(i.e., over $100,000). Although an 

individual may contribute up to 

$2,000 to a primary candidate, only 

a maximum of $250 per individual 

applies toward the $5,000 threshold 

in each state. Candidates who receive matching payments must agree 

to limit their spending and submit to 

an audit by the Commission.

 —Amy Kort

(continued on page 8)
Federal Election Commission RECORD July 2004

8

Matching Funds for 2004 Presidential Candidates: 

May Certification

Candidate Certification Cumulative

May 2004 Certifications

Wesley K. Clark (D)1 $0 $7,615,360.39

John R. Edwards (D)2 $0 $6,521,338.88

Richard A. Gephardt (D)3 $0 $4,104,319.82

Dennis J. Kucinich (D)4 $0 $3,075,300.72

Lyndon H. LaRouche, Jr. (D)5 $69,648.28 $1,408,993.13

Joseph Lieberman (D)6 $0 $4,257,830.85

Ralph Nader (D) $100,000.00 $100,000.00

Alfred C. Sharpton (D) $0 $100,000.00

1 General Clark publicly withdrew from the Presidential race on February 11, 2004.

2 Senator Edwards publicly withdrew from the Presidential race on March 3, 2004.

3 Congressman Gephardt publicly withdrew from the Presidential race on January 2, 

2004.

4 Congressman Kucinich became ineligible to receive matching funds on March 4, 

2004.

5 Mr. LaRouche became ineligible to receive matching funds on March 4, 2004.

6 Senator Lieberman publicly withdrew from the Presidential race on February 3, 

2004.

Commission Certifies 

Matching Funds for 

Presidential Candidates

On May 27 and 28, 2004, the 

Commission certified $169,648.28 

in federal matching funds to two 

Presidential candidates for the 2004 

election. The U.S. Treasury Department made the payments on June 

1, 2004. Thus far, the eight eligible 

candidates have been certified 

$27,183,143.79. 

Presidential Matching Payment 

Account

Under the Presidential Primary 

Matching Payment Account Act, the 

federal government will match up to 

$250 of an individual’s total contributions to an eligible Presidential 

primary candidate. A candidate must 

establish eligibility to receive matching payments by raising in excess of 

$5,000 in each of at least 20 states 

(i.e., over $100,000). Although an 

individual may contribute up to 

$2,000 to a primary candidate, only 

a maximum of $250 per individual 

applies toward the $5,000 threshold in each state. Candidates who 

receive matching payments must 

agree to limit their committee’s 

spending, limit their personal spending for the campaign to $50,000 and 

submit to an audit by the Commission. 26 U.S.C. §§9033(a) and (b) 

and 9035; 11 CFR 9033.1, 9033.2, 

9035.1(a)(2) and 9035.2(a)(1).

Candidates may submit requests 

for matching funds once each 

month. The Commission will certify 

an amount to be paid by the U.S. 

Treasury the following month. 26 

CFR 702.9037-2. Only contributions 

from individuals in amounts of $250 

or less are matchable. 

The chart at right lists the amount 

most recently certified to each 

eligible candidate who has elected 

to participate in the matching fund 

program, along with the cumulative 

amount that each candidate has been 

certified to date. 

Sharpton—Repayment of 

Public Funds

On May 10, 2004, the Commission determined that Reverend 

Alfred C. Sharpton must repay 

$100,000 to the U.S. Treasury for 

matching funds he received in excess 

of his entitlement. 

Background. On March 11, 2004, 

the Commission opened an investigation to resolve whether Reverend 

Sharpton had exceeded his $50,000 

personal expenditure limitation. The 

Commission subsequently made 

an initial determination to suspend 

matching payments to Reverend 

Sharpton based on his committee’s 

March 2004 monthly report, which 

showed that he had made expenditures from his personal funds that 

were more than double the $50,000 

limit. 11 CFR 9033.9(a).

On April 21, 2004, Reverend 

Sharpton and his principal campaign 

committee submitted materials 

in response to the Commission’s 

subpoena and initial determination 

to suspend funds. 11 CFR 9033.9(b) 

and 9033.10(b). The information 

showed that Reverend Sharpton 

knowingly and substantially exceeded his $50,000 personal expenditure 

limitation. Therefore, on April 29, 

2004, the Commission made a final 

determination to suspend matching 

fund payments. 

Repayment. Since the candidate 

had knowingly and substantially 

exceeded his personal expenditure limitation as of January 2, 

2004—the date that he submitted 

his letter of agreements and certifications seeking to become eligible 

to receive matching funds—he was 

never eligible to receive matching 

payments. 11 CFR 9033.3(a). Thus, 

he was not entitled to receive any 

public funds, and the $100,000.00 

Public Funding

(continued from page 7)
July 2004 Federal Election Commission RECORD 

9

in public funds that he did receive 

were in excess of his entitlement. 

26 U.S.C. §9038(b)(1) and 11 CFR 

9038.2(b)(1).

 —Amy Kort

North Carolina Special Election

The Special General Election to fill the U.S. House seat vacated by 

Representative Frank W. Ballance, Jr., will be held on July 20, 2004. 

Committees involved in this election must follow the reporting schedule below, 

unless they file on a monthly schedule.1 PACs and party committees that file 

monthly should continue to file according to their regular filing schedule. 

Note that 48-hour notices are required of authorized committees that receive 

contributions of $1,000 or more between July 1 and July 17, 2004. The 60-day 

electioneering communications period in connection with this election runs 

from May 21 through July 20, 2004.2

Committees Involved in the Special General Must File:

Close of Reg./Cert./Overnight Filing

Books Mailing Date Date

July Quarterly —waived—

Pre-General June 30 July 53 July 8

Post-General August 9 August 19 August 19

1 Reports filed electronically must be submitted by midnight on the filing date. 

A committee required to file electronically that instead files on paper reporting forms will be considered a nonfiler. Reports filed on paper and sent by 

registered or certified mail must be postmarked by the mailing date. Reports 

filed using an overnight mail service with an on-line tracking system are considered timely filed if they are received by the delivery service by the mailing 

date. Reports sent by other means must be received by the Commission’s close 

of business on the filing date. 

2 Individuals and other groups not registered with the FEC who make electioneering communications costing more than $10,000 in the aggregate in the 

calendar year must disclose this activity to the Commission within 24 hours 

of the distribution of the communication. See 11 CFR 100.29 and 104.20. For 

more information, see the December 2003 Record, page 5.

3 Notice that the registered, certified and overnight mailing date falls on a federal holiday. The report should be postmarked (or received by the overnight 

delivery service) before that date.

ADR Program Update

The Commission recently resolved six additional cases under 

the Alternative Dispute Resolution 

(ADR) program. The respondents, 

the alleged violations of the Federal 

Election Campaign Act (the Act) and 

the final disposition of the cases are 

listed below. 

1. The Commission reached 

agreement with the Women’s 

Campaign Fund, Inc. and its treasurer, Lynn Martin, regarding the 

committee’s failure to report accurately receipts, disbursements 

and cash-on-hand. The respondents 

acknowledged that errors and misstatements inadvertently occurred 

during the 2000 calendar year and 

agreed to pay a $750 civil penalty. 

In order to avoid similar errors in 

the future, they also agreed to keep 

an FEC compliance officer on staff 

and to have that individual attend an 

FEC seminar within 15 months of 

the effective date of this agreement. 

(ADR 144)

2. The Commission reached 

agreement with Americans for 

Sound Energy Policy and the committee’s treasurer, Gregg Renkes, 

regarding corporate contributions 

and the committee’s failure to accurately report in-kind contributions. 

In an effort to clarify the record, and 

in response to the Commission’s 

request, the respondents refunded 

$10,500, which represented a portion of the prohibited contributions. 

The respondents also agreed to pay 

a $4,500 civil penalty and to work 

with members of the audit staff to 

Alternative 

Dispute 

Resolution

correct and amend disclosure reports 

for calendar years 1999 and 2000. 

The respondents will provide the 

Commission with copies of missing documents, including copies 

of checks refunding the prohibited 

contributions, and will file for termination. (ADR 145)

3. The Commission closed the 

case involving Friends of Farr, its 

treasurer, Sidney Slade, and Representative Sam Farr regarding failure 

to accurately report candidate loans, 

failure to report employee payroll 

taxes and improper use of campaign 

funds. The ADR Office recommended that the case be closed, and the 

Commission agreed to close the file. 

(ADR 147/MUR 5371)

4. The Commission reached 

agreement with United Food & 

Commercial Workers, Active Ballot 

Club, and its treasurer, Anthony 

Perrone, concerning the committee’s 

(continued on page 10)
Federal Election Commission RECORD July 2004

10

Outreach

Roundtable on Pre-Election 

Communications

On August 4, 2004, the Commission will host a roundtable session 

on new rules for pre-election communications, including coordinated 

communications within 120 days 

of an election and electioneering 

communications within 60 day of 

the general election. See the chart on 

page 11 for details. 

Attendance is limited to 30 

people per session, and registration 

is accepted on a first-come, firstserved basis. Please call the FEC 

before registering or sending money 

failure to file 24-hour reports of independent expenditures. The respondents acknowledged that a violation 

of the Act inadvertently occurred 

and agreed to pay a $7,000 civil 

penalty. In order to avoid similar errors in the future, they also agreed to 

appoint a Compliance Administrator 

and to have the Administrator attend 

an FEC seminar within 15 months of 

the effective date of this agreement. 

(ADR 151)

5. The Commission reached 

agreement with the Libertarian 

Party of Illinois and David Lee, 

its treasurer, concerning excessive 

contributions. The respondents 

acknowledged that a violation of the 

Act resulted from the committee’s 

use of a single bank account for both 

federal and nonfederal activities. 

The respondents agreed to pay a 

$1,000 civil penalty and, in an effort 

to avoid similar errors in the future, 

to set up separate bank accounts 

for federal and nonfederal funds. 

The respondents will also file all 

amended reports necessary to accurately reflect the contributions and 

expenditures for both federal and 

nonfederal activities, appoint a staff 

member to serve as the FEC compliance officer and develop an FEC 

compliance manual. (ADR 152) 

6. The Commission reached 

agreement with Stephanie Tubbs 

Jones for U.S. Congress and its 

treasurer, Saundra Berry, concerning 

the personal use of campaign funds. 

The respondents acknowledged that 

a violation of the Act occurred—in 

part due to staff inexperience and a 

misunderstanding of what expenses 

were legitimate—and agreed to pay 

a $2,500 civil penalty. In an effort 

to avoid similar errors in the future, 

they also agreed to appoint a member of the campaign staff to monitor 

compliance with Act. (ADR 155) 

 —Amy Kort 

Alternative Dispute 

Resolution

(continued from page 9) Advisory

Opinions

Alternative Disposition of 

Advisory Opinions

AOR 2004-11

This request was closed without 

issuance of an opinion because it did 

not qualify as an advisory opinion 

request. The request was submitted by Mr. Paul Streitz, a candidate 

for the Republican nomination for 

the U.S. Senate, and concerned a 

federal candidate’s receipt of appearance fees from speeches about 

his book. Mr. Streitz subsequently 

informed the Commission that he 

was no longer running for the U.S. 

Senate. Based on the specific situation presented by Mr. Streitz, it was 

determined that the request posed a 

hypothetical situation. See 11 CFR 

112.1(b).

AOR 2004-16

On June 9, 2004, the requestors withdrew their request for this 

advisory opinion. The request had 

concerned a corporation’s purchase 

of advertising space to publish 

political party committees’ positions 

on campaign issues.

 —Amy Kort

Advisory Opinion Request

AOR 2004-18

Federal candidate committee’s 

discounted purchase of copies of 

candidate-authored books to be used 

as campaign gifts (Friends of Joe 

Lieberman, May 13, 2004)

Compliance

EQS Update

The FEC’s Enforcement Query 

System (EQS) has been updated to 

include documents relating to matters under review (MURs) closed 

since January 1, 2001. When the 

Commission launched the webbased search tool in December 2003, 

only documents relating to matters 

under review (MURs) closed after 

January 1, 2002, were available 

through the EQS. However, the 

system has now been updated to provide documents from -MURs closed 

in 2001. In addition, the system now 

offers additional case information 

and navigation tools, including:

• A redesigned Case Summary section that includes the name of a 

respondent committee treasurer and 

any previous treasurer; and

• An On Line-Tutorial to help users 

to utilize the system’s search capabilities more fully. 

A complete list of updates can be 

found in the EQS by clicking on the 

New Features and Additional Information link.

 —Amy Kort
July 2004 Federal Election Commission RECORD 

11

2003-37: Nonconnected PAC’s use 

of nonfederal funds for campaign 

activities, 4;4

2003-38: Funds raised and spent 

by federal candidate on behalf of 

redistricting committee to defray 

legal expenses incurred in redistricting litigation, 3:14

2003-39: Charitable matching plan 

conducted by collecting agent of 

trade association, 3:10

2003-40: Reporting independent 

expenditures, 3:11

2004-1: Endorsement ads result in 

contribution if coordinated communications, 3:12

2004-2: Contributions from testamentary trusts, 4:8

2004-3: Conversion of authorized 

committee to multicandidate committee, 5:5

2004-4: Abbreviated name of trade 

association SSF, 5:7

2004-6: Web-based meeting services 

to candidates and political committees, 5:7

2004-7: MTV’s mock Presidential 

election qualifies for press exemption, 5:8

2004-8: Severance pay awarded to 

employee who resigns to run for 

Congress, 6:4

2004-9: State committee status, 5:10

2004-10: “Stand by your ad” disclaimer for radio ads, 6:5

Compliance

ADR program cases, 1:25; 4:15; 7:9

Administrative Fine program cases, 

1:24; 4:14; 6:9

Enforcement Query System, disclosure policy for closed enforcement 

The first number in each citation 

refers to the “number” (month) of 

the 2004 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

2003-28: Nonconnected PAC established by LLC composed entirely 

of corporations may become an 

SSF with LLC as its connected 

organization, 1:20

2003-29: Transfer of funds from a 

nonfederal PAC to a federal PAC 

of an incorporated membership 

organization, 1:21

2003-30: Retiring campaign debt 

and repaying candidate loans, 2:1

2003-31: Candidate’s loans to 

campaign apply to Millionaires’ 

Amendment threshold, 2:2

2003-32: Federal candidate’s use 

of surplus funds from nonfederal 

campaign account, 2:4

2003-33: Charitable matching plan 

with prizes for donors, 2:5

2003-34: Reality television show to 

simulate Presidential campaign, 

2:6

2003-35: Presidential candidate may 

withdraw from matching payment 

program, 2:7

2003-36: Fundraising by federal 

candidate/officeholder for section 

527 organization, 2:8

Index

matters and press release policy 

for closed MURs; “enforcement 

profile” examined, 1:6; EQS 

update, 7:10

MUR 4919: Fraudulent misrepresentation of opponent’s party through 

mailings and phone banks, 6:2

MUR 4953: Party misuse of nonfederal funds for allocable expense, 

6:3

MUR 5197: Donations from Congressionally chartered corporations, 4:13

MUR 5199: Campaign committee’s 

failure to report recount activities, 

6:4

MUR 5229: Collecting agent’s failure to transfer contributions, 1:7

MUR 5328: Excessive contributions 

to and from affiliated leadership 

PACs, 5:1

MUR 5357: Corporation’s reimbursement of contributions, 2:1

Naming of treasurers in enforcement 

matters, proposed statement of 

policy, 3:4

Nonfilers, 3:16; 4:13, 6:7; 7:5

Court Cases 

_____ v. FEC

– Akins, 4:10

– Alliance for Democracy, 3:8

– Cox for Senate, 3:4

– Hagelin, 4:11

– Kean for Congress, 3:7

– Lovely, 5:12

– McConnell, 1:1

– LaRouche’s Committee for a New 

Bretton Woods, 6:7

– O’Hara, 6:6

Roundtable Schedule

Date Subject Intended Audience

August 4

9:30-11 a.m.

New Rules on Pre-Elec- tion Communications:

• Coordinated Communications within 120 days 

of an election; and

• Electioneering Communications within 60 days 

of the general election.

• Candidates;

• Government affairs 

representatives; and

• Persons making coordinated communications 

or electioneering communications.

to ensure that openings remain. The 

registration form is available on the 

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

pages/infosvc.htm and from Faxline, 

the FEC’s automated fax system 

(202/501-3413, request document 

590). For more information, call the 

Information Division at 800/424-

9530, or locally at 202/694-1100.

 —Amy Kort

(continued on page 12)
FEDERAL ELECTION COMMISSION

999 E Street, NW

Washington, DC 20463

Official Business

Penalty for Private Use, $300

PRESORTED STANDARD

U.S. POSTAGE

PAID

FEDERAL ELECTION COMMISSION

Federal Election Commission RECORD July 2004

– Wilkinson, 4:9

– Sykes, 4:12

FEC v. _____ 

– California Democratic Party, 4:9

– Friends of Lane Evans, 3:9

– Malenick, 5:13

Regulations

Administrative Fine program extension, final rule, 3:1

Contributions by minors, Notice of 

Proposed Rukemaking, 5:3

Electioneering communications, 

FCC database, 3:3

Federal election activity periods, 3:1

Inaugural committees, Notice of 

Proposed Rulemaking, 5:1

Leadership PACs, final rules, 1: 18

Overnight delivery safe harbor, 3:1

Political committee definition, Notice of Proposed Rulemaking, 4:1; 

Public hearing, 5:3; extension of 

Commission’s consideration, 6:1

Public access to materials from 

closed enforcement matters, Petition for Rulemaking, 3:4

Public financing of Presidential 

candidates and nominating conventions, correction and effective 

date, 1:19

Travel on behalf of candidates and 

political committees, final rules, 

1:19

Reports

Due in 2004, 1:9

April reminder, 4:1

Convention reporting for Connecticut and Virginia, 5:10

July reporting reminder, 7:1

Kentucky special election reporting, 

1:9

North Carolina special election 

reporting, 7:9

Index

(continued from page 11)