September 2001 Federal Election Commission Volume 27, Number 9

Table of Contents Regulations Advisory Regulations Compliance 1 Notice of Proposed Rulemaking Opinions on Brokerage Loans and Lines of Notice of Proposed Credit Rulemaking on Brokerage AO 2001-9 Loans and Lines of Credit 1 Advisory Opinions Former Candidate’s Use of The Department of Transporta- Campaign Funds to Pay 3 Federal Register tion and Related Agencies Appro- Consulting Expenses Related priations Act, 2001, amended to Media Inquiries Reports section 431(8)(B) of the Federal 5 Arkansas Special Election Election Campaign Act (the Act) to Former Senator J. Robert Kerrey permit candidates to finance their may use funds from his principal Administrative Fine Program campaigns through loans derived campaign committee, Kerrey for 6 Committees Fined for Nonfiled from advances on their brokerage U.S. Senate (the Committee), to pay and Late Reports accounts, credit cards, home equity the costs of retaining a consulting lines of credit and other lines of firm to respond to media inquiries Electronic Filing credit available to candidates. Public concerning his military service. 7 More Committees File Such payments would not be a Electronically Law 106-346. On July 19, 2001, the Commission approved a Notice of personal use of campaign funds Proposed Rulemaking (NPRM), because the inquiries were a direct Court Cases result of Mr. Kerrey’s activities as a 8 New Litigation which proposed amendments to Commission regulations to conform federal officeholder and federal Alternative Dispute Resolution with the amendment to the Act. candidate. 8 ADR Program Update The NPRM, which was published Background in the July 25, 2001, Federal Publications Mr. Kerry was elected to the Register (66 FR 38576), solicited Senate in 1988 and remained in 9 Results of 2000 Federal Elections comments concerning the regulation Published office until January 3, 2001. He was and reporting of these loans. The also a Presidential candidate in Staff public comment period ended 1992. Until December 1998, when 9 Acting FEC General Counsel August 24, 2001. The Commission he announced he would seek a third Resigns intends to hold a hearing on Septem- Senate term, Mr. Kerrey was 9 Information Division Director ber 19, 2001, at 10 a.m., if there are considered a potential Presidential Resigns sufficient requests to testify. The candidate in 2000. In January 2000, hearing will be held at the however, he announced he would Outreach Commission’s public hearing room 10 Denver Conference for not run for election to any public at 999 E Street, NW., Washington, office. Candidates, Parties and PACs D.C. 10 Public Appearances (continued on page 2) 11 Index (continued on page 3) Federal Election Commission RECORD September 2001

Regulations were the candidate’s spouse, and the Loan Payment and Repayment. (continued from page 1) candidate’s share of collateral One approach to loan repayment Proposed Regulations equaled or exceeded the amount of would allow a candidate’s autho- In the NPRM, the Commission the loan, then the spouse would not rized committee the option of proposes to amend the definitions of be considered a contributor. In the repaying the loan directly to the contribution and expenditure at 11 case of an unsecured loan, the lending institution or to the candi- CFR 100.7 and 100.8, respectively, spouse would not be considered a date. If the repayments were made to specifically exclude brokerage contributor if the candidate used to the candidate, he or she would be loans, credit card advances and only one-half of the available credit required to repay the lending other lines of credit extended to for campaign purposes. The Com- institution within 30 days of receiv- candidates—including bank over- mission sought comments on ing the funds from the committee in drafts. In order to be exempted from whether the regulations should order to avoid converting campaign these definitions, the loan must be allow the candidate to use, for funds to personal use.2 As an obtained: campaign purposes, the full amount alternative approach, the Commis- of the available credit in cases sion is considering requiring that the • In accordance with applicable law; where the loan is in the ordinary payment and repayment of the loan • Under commercially reasonable course of business and the candidate pass through the candidate’s per- terms; and is liable for the entire amount of the sonal account in order to distinguish • By persons who make such loans loan even though the spouse has bank loans made directly to an in the ordinary course of business. endorsed, guaranteed or co-signed authorized committee from loans Endorsed, Guaranteed and Co- for the loan. derived from a candidate’s line of Signed Loans. Under the proposed Loans for Personal Living credit. regulations, an endorser, guarantor Expenses. The proposed regulations Reporting. The Commission or co-signer of a loan derived from a would clarify that loans obtained by would require a candidate’s princi- candidate’s line of credit would be candidates and used to pay for their pal campaign committee to report considered a contributor for the personal living expenses would not loans derived from an advance on a amount of the loan for which he or be considered contributions and candidate’s brokerage account, she was liable. If, however, the would not need to be reported.1 The credit card or line of credit. The endorser, guarantor or co-signer candidates would, however, have to Commission sought comments on repay the loans wholly from their proposed amendments concerning personal funds. The proposed how such loans should be reported. Federal Election Commission exception would be limited to loans For example, the NPRM sought 999 E Street, NW used solely for personal living comments on whether a candidate’s Washington, DC 20463 expenses. Thus, if part of the loan loan for personal expenses should 800/424-9530 proceeds were used in connection be reported by the committee. The 202/694-1100 with a campaign, the entire loan Commission also considered cases 202/501-3413 (FEC Faxline) would be reported by the committee. where a candidate obtained a loan 202/219-3336 (TDD for the The Commission sought comments from his or her line of credit and hearing impaired) on this proposal and on an alterna- then loaned these funds to the Danny L. McDonald, Chairman tive proposal that would require the committee. The NPRM proposed David M. Mason, Vice Chairman candidate’s committee to report options where the committee would Karl J. Sandstrom, Commissioner loans used exclusively for the be required to report only repay- Bradley Smith, Commissioner candidate’s personal expenses. ments it made to the candidate and Scott E. Thomas, Commissioner The proposed exception would where the committee would report Darryl R. Wold, Commissioner not apply in a case where a third both the committee’s repayments to James A. Pehrkon, Staff Director party endorsed, guaranteed or co- the candidate and the candidate’s Lois G. Lerner, Acting General signed the loan. In that case, the repayments to the lending institu- Counsel third party would make a contribu- tion. tion in the amount for which he or The Commission intends to Published by the Information Division she was liable. design new reporting schedules (C-2 Greg J. Scott, Acting Assistant and C-P-2) for use in reporting loans

Staff Director 1 Amy Kort, Editor The Commission is also considering a similar approach for reporting bank 2 See 2 U.S.C. §439a and 11 CFR http://www.fec.gov loans used solely for candidates’ 113.2(d). personal expenses.

2 September 2001 Federal Election Commission RECORD

derived from a candidate’s broker- Advisory Opinions definition of personal use at 11 CFR age account, credit card or line of (continued from page 1) 113.1(g).1 11 CFR 113.1(g)(1)(ii). credit. During each of Mr. Kerrey’s Other Issues. The Commission Payments to the Public campaigns for federal office, he Relations Firm also sought comments on issues engaged in public discussions of his surrounding non-purpose credit and Mr. Kerrey’s use of campaign military service. In 1998, while Mr. funds to pay Westhill Partners margin accounts, committees’ debt Kerrey was still a Senate candidate settlement and the termination of would not constitute a personal use under Commission regulations and of campaign funds because the committees with outstanding loans also considered a possible Presiden- derived from lines of credit. media interest that the public tial candidate, a Newsweek reporter relations firm responded to would The full text of the NPRM is began an inquiry into an incident available on the FEC web site at not have occurred if Mr. Kerrey had that occurred during his service in not been a prominent Senator and a http://www.fec.gov/pdf/ the Vietnam War. However, when FR66n143p38576.pdf and from the prominent federal candidate— Mr. Kerrey announced that he particularly one whose campaigns FEC faxline, 202/501-3413, docu- would not seek the Presidency in ✦ entailed a discussion of his military ment number 251. 2000, Newsweek declined to publish —Amy Kort record. Two factors demonstrate the story—a Newsweek editor made that the media attention was a direct clear in April 2000 that Newsweek’s result of Mr. Kerrey’s campaigns publication of the story was contin- and officeholder activities: Federal Register gent upon Kerrey’s plans to run for President in 2000. The reporter 1. The media inquiry began when Federal Register notices are continued to pursue the story. he was still in the Senate, was a available from the FEC’s Public In April 2001, the story became Senate candidate under Commis- Records Office, on the FEC web public through other media venues, sion rules and was generally site at http://www.fec.gov/ and Mr. Kerrey retained a public viewed as a probable presidential register.htm and from the FEC relations firm, Westhill Partners, to candidate for the 2000 primary faxline, 202/501-3413. aid in his response to media inquir- election. Even though the ies. The firm subsequently billed reporter continued his inquiry Notice 2001-7 Mr. Kerrey for $59,554.48. after Mr. Kerrey announced that Filing Dates for the Florida he would not seek the Presidency st Special Election in the 1 Personal Use of Campaign Funds in 2000, Newsweek’s decision Congressional District; Notice of Under the Federal Election not to pursue the story after Mr. filing dates for special election Campaign Act (the Act) and Com- Kerrey’s announcement indicates (66 FR 31237, June 11, 2001). mission regulations, a candidate and that the original inquiry was the candidate’s committee may use motivated by a desire to present Notice 2001-8 excess campaign funds for any important information about the Filing Dates for the lawful purpose, but may not convert fitness for federal office of a Massachusetts Special Election in these funds to the personal use of federal candidate and office- the 9th Congressional District; the candidate or of any other person. holder. Notice of filing dates for special 2 U.S.C. §439a and 11 CFR election (66 FR 33962, June 26, 113.2(d). Personal use is defined as (continued on page 4) 2001). “any use of campaign funds in a campaign account of a present or Notice 2001-9 former candidate to fulfill a commit- 1 In the Explanation and Justification of Voluntary Standards for ment, obligation or expense of any Computerized Voting Systems; its regulations on personal use, the person that would exist irrespective Commission explained the case-by-case Notice with request for comments of the candidate’s campaign or approach, stating that if the candidate (66 FR 35978, July 10, 2001). duties as a federal office holder.” 11 “can reasonably show that the expenses CFR 113.1(g). In cases such as this at issue resulted from campaign or Notice 2001-10 one, where a specific use of cam- officeholder activities, the Commission Brokerage Loans and Lines of paign funds is not listed in the will not consider the use to be personal Credit; Notice of Proposed regulations as personal use per se, use.” Explanation and Justification, Rulemaking (66 FR 38576, July the Commission determines, on a Expenditures; Reports by Political 25, 2001). case-by-case basis, whether or not Committees; Personal Use of Campaign the expense would fall within the Funds, 60 Federal Register 7867 (February 9, 1995).

3 Federal Election Commission RECORD September 2001

Advisory Opinions campaign funds to personal use.1 2 consultants and candidate commit- (continued from page 3) U.S.C. §439a and 11 CFR 113.2(d). tees.3 See also AOs 2001-3, 2000-40, 2. Questions and comments by the 2000-37 and 2000-12. Under Reporting and Recordkeeping media concerning Mr. Kerrey’s Commission regulations, salary Requirements failure to disclose information payments made to family members The Committee should report about the incident while he was a are considered a personal use of salary payments it makes to Ms. Senator or when he ran for campaign funds per se, unless the Jackson as operating expenditures president indicate that his family member is paid the fair on its FEC disclosure reports. See behavior as Senator and candi- market value for bona fide campaign 11 CFR 104.3(b)(2)(i) and date was an important cause of services that he or she provides.2 11 104.3(b)(4)(i). The Committee the media activity in April and CFR 113.1(g)(1)(i). Payments in should also keep Ms. Jackson’s May of 2001. excess of the fair market value are contract and any other documents The Committee should report its considered a personal use of cam- relating to her employment for at payment to Westhill Partners as an paign funds. 11 CFR least three years beyond the date “Other Disbursement” and should 113.1(g)(1)(i)(H). that it files any report to which those make reference to this advisory records may relate. 11 CFR opinion as part of its description of Application to Proposal 104.14(b). See also 11 CFR the purpose of the disbursement. 2 Ms. Jackson has experience 102.9(b)(1) and AO 2001-03. working for various national politi- Date Issued: July 12, 2001; U.S.C. §434(b)(4)(G) and (6)(A) ✦ and 11 CFR 104.3(b)(2)(vi) and cal campaigns and in government. Length: 5 pages. (b)(4)(vi). The committee believes that as a —Amy Kort The Commission noted that Mr. consultant Ms. Jackson would provide critical services to the Kerrey’s situation is unique and that Advisory Opinion Requests this opinion does not establish any campaign. Under the Act and general rule regarding the use of Commission regulations, the AOR 2001-11 campaign funds by former candi- committee may hire her to provide Transfer of funds for allocable dates or federal officeholders to pay bona fide campaign services, so expenses after 70-day period lapsed for public relations expenses. long as it pays her no more than the due to bank processing problem Date Issued: July 12, 2001; fair market value for her services. (Democratic Party of Virginia, July Length: 5 pages.✦ Her contract must contain the same 24, 2001) —Amy Kort terms customarily found in such agreements between paid campaign AOR 2001-12 Preemption of state election law AO 2001-10 governing donations to political Committee’s Employment of party’s building fund (Democratic Candidate’s Wife 1 Commission regulations define Party of Wisconsin, August 7, Jesse L. Jackson, Jr.’s principal personal use as “any use of funds in a 2001)✦ campaign committee, Jesse L. campaign account of a present of Jackson, Jr. for Congress (the former candidate to fulfill a commit- Committee), may hire Congressman ment, obligation or expense of any Jackson’s wife as a paid consultant. person that would exist irrespective of 3 The Commission expressed no opinion The Committee must employ Ms. the candidate’s campaign or duties as a regarding the application of any rules Jackson on the same terms it would Federal officeholder.” 11 CFR of the House of Representatives or the normally use to employ a consultant 113.1(g). Ethics in Government Act to these activities because these issues are not and must pay her no more than the 2 Commission regulations at 11 CFR fair market value for her services. within its jurisdiction. For the same 113.1(g)(1)(i) provide a list of specific reason, the Commission expressed no uses of campaign funds that will be Personal Use of Campaign Funds views as to any federal or other tax considered per se personal use. Other ramifications. While candidates generally have uses of campaign funds are to be wide discretion in making expendi- examined on a case-by-case basis using tures to influence their election, the the general definition of personal use. Federal Election Campaign Act (the Act) prohibits the conversion of

4 September 2001 Federal Election Commission RECORD

Reports Arkansas Special Election Reporting

Arkansas Special Election For Committees Involved Only in the Special Primary Elec- Reporting tion: The Special Election to fill the U.S. House seat vacated by Con- Close of Reg./Cert. Filing gressman Asa Hutchinson in the Books Mail Date Date Third Congressional district of Arkansas will be held on November Pre-Primary Report September 5 September 10 September 13 20, 2001. The Special Primary will Year-End Report December 31 January 31 January 31, 2002 be September 25 and the Special Runoff, if needed, will be October 16. Committees involved in any of For Committees Involved in Both the Special Primary and these elections should consult the Special General If Only Two Elections are Held: accompanying chart for filing information.1 Close of Reg./Cert. Filing Note that 48-hour notices are Books Mail Date Date required of authorized committees that receive contributions of $1,000 Pre-Primary Report September 5 September 10 September 13 or more between September 6 and Pre-General Report October 31 November 5 November 8 September 22 for the Special Post-General Report December 10 December 20 December 20 Primary, between November 1 and Year-End Report December 31 January 31 January 31, 2002 November 17 for the Special General and between September 27 and October 13 for the Special For Committees Involved in Only the Special Primary and Runoff, if that election is held. Special Runoff: Reports filed electronically must be submitted by midnight on the Close of Reg./Cert. Filing filing date. A committee required to Books Mail Date Date file electronically that files instead on FEC paper reporting forms will Pre-Primary Report September 5 September 10 September 13 be considered a nonfiler. Pre-Runoff Report September 26 October 1 October 4 Reports filed on paper and sent Year-End Report December 31 January 31 January 31, 2002 by registered or certified mail must be postmarked by the mailing date; reports sent by any other means For Committees Involved in the Special Primary, Special (including reports sent via first class Runoff and Special General: mail) must be received by the Commission’s close of business on Close of Reg./Cert. Filing the filing date. Books Mail Date Date For more information about any of these filing requirements, please Pre-Primary Report September 5 September 10 September 13 call the FEC’s Information Division Pre-Runoff Report September 26 October 1 October 4 at 800/424-9530 (press 1, then 3) or Pre-General Report October 31 November 5 November 8 202/694-1100.✦ Post-General Report December 10 December 20 December 20 —Amy Kort Year-End Report December 31 January 31 January 31, 2002

1 These committees include authorized committees of candidates running in the election and other political committees (including PACs) that support these candidates and do not file monthly.

5 Federal Election Commission RECORD September 2001

Administrative Fines Committees Fined and Penalties Assessed 1. America Service Group Inc. PAC $1,000 2. American Association of Airport Executives Committees Fined for Good Gov’t Committee $325 Nonfiled and Late Reports 3. American Concrete Pavement Association PAC $1,000 On July 23 and August 7, 2001, 4. American Crop Protection Association PAC $1,000 the Commission publicized its final 5. American Dental PAC $2,550 action on 85 new Administrative 6. American Meat Institute PAC $2,000 Fine cases, bringing the total 7. American Moving and Storage Association $1,000 number of cases released to the 8. Americans for Sound Energy Policy $1,000 public to 188. 9. Associated General Contractors of America PAC $600 Civil money penalties for late 10. Association of American Railroads PAC $1,000 reports are determined by the 11. Bancorp South Bank PAC $250 number of days the report was late, 12. Bakery, Confectionery, Tobacco Workers, the amount of financial activity Grain Millers International Union $650 involved and any prior penalties for 13. Barbara Cooper for Congress $1,650 violations under the administrative 14. Bipartisan Voluntary Public Affairs fine regulations. Penalties for Committee of PNC Bank National Association $500 nonfiled reports—and for reports 15. Burson-Marsteller/Young & Rubicam PAC $1,000 filed so late as to be considered 16. Cable and Wireless USA Inc. PAC $1,000 nonfiled—are also determined by 17. California Right to Life PAC $1,000 the financial activity for the report- 18. Central and South West Services Inc. PAC $1,000 ing period and any prior violations. 19. Circuit City Stores Inc. PAC $1,000 Election sensitive reports, which 20. Clinesmith for Congress $9751 include reports and notices filed 21. Coca-Cola Enterprises Inc. Employee prior to an election (i.e., 12 Day pre- Nonpartisan Committee for Good Government $1,000 primary, October quarterly and 22. Committee for the Preservation of Capitalism $4,000 October monthly reports), receive 23. Democratic Foundation of the Desert $8001 higher penalties. The committees 24. Distilled Spirits Council of the United States Inc. PAC $750 and the treasurers are assessed civil 25. Distilled Spirits Council of the United States Inc. PAC $1,0001 money penalties when the Commis- 26. Dorso for Congress Committee $1,650 sion makes its final determination. 27. Drummond Company Inc. PAC $1,000 Unpaid civil money penalties are 28. Dunn Lampton for Congress $1,300 referred to the Department of the 29. Ernst & Young PAC $2,000 Treasury for collection. 30. Federal Managers’ Association PAC $675 The committees listed in the 31. Fight-PAC $3,000 charts at right, and their treasurers, 32. First Health Group Corp. PAC $2,000 were assessed civil money penalties 33. Florida Power and Light Co. Employees’ PAC $900 under the administrative fine 34. Friends of David Bishop $1,000 regulations. 35. Genesis Health Ventures Inc. PAC $1,000 Closed Administrative Fine case 36. Greene for Congress 2000 Campaign Committee $300 files are available through the FEC 37. Harris for Congress $9001 Press Office, at 800/424-9530 (press 38. Holland America Line Westours, Inc. PAC $1,000 2) and the Public Records Office, at 39. Hutchins for Congress $300 800/424-9530 (press 3).✦ 40. Ice Cream, Milk & Cheese PAC-INTL Ice Cream Association, —Phillip Deen Milk Industry Foundation and National Cheese Institute $1,000 41. Independent Electrical Contractors Inc. PAC $775 42. Independent Electrical Contractors Inc. PAC $1,000

1 This civil money penalty has not been collected.

6 September 2001 Federal Election Commission RECORD

Electronic Committees Fined and Penalties Assessed, Cont. Filing 43. Institute of Scrap Recycling Industries PAC $1,000 44. International Alliance of Theatrical Stage Employees PAC $1,000 45. Lawler 2000 Committee $325 More Committees File 46. Leadership PAC 2002 $2,000 Electronically 47. Madison Project Inc. Fund $1,000 During July 2001, nearly 3,000 48. National Association of Mortgage Brokers PAC $2,000 committees filed electronic disclo- 49. National Association of Professional sure reports with the Commission. Insurance Agents PAC $1,000 Of this total, 1,135 committees were 50. National Association of Wheat Growers PAC $1,000 new electronic filers. On the July 31 51. National Beer Wholesalers Association PAC $5,000 mid-year report filing date alone, the 52. National Community Pharmacists Association PAC $1,000 Commission received and processed 53. National Cotton Council Committee $325 519 electronically-filed reports; 318 54. National Utility Contractors Association Legislative of these reports were filed by new Information & Action Committee $1,000 electronic filers. 55. Noble Willingham for Congress $2,000 Many of these committees filed 56. Nortel Networks Inc. PAC $1,000 under the mandatory electronic 57. Osteopathic PAC $2,000 filing regulations that took effect 58. Outdoor Advertising Association of America PAC $1,000 January 1, 2001. These regulations 59. People for Royal Hart $1,8001 require candidate and political 60. Prairie Leadership Committee $1,000 committees to file electronically if 61. Reliant Energy Entex Citizenship Responsibility Group $1,000 they: 62. Republican Party of Minnesota $16,000 • File reports directly with the 63. Richard Pombo for Congress $1,650 Commission;1 and 64. Rick Hill for Congress Committee $900 • Exceed (or expect to exceed) 65. Securities Industry Association PAC $1,000 $50,000 in contributions or 66. Seekings for Congress $900 expenditures in a calendar year. 67. Sills Federal PAC Inc. $1,000 68. Rite Aid PAC $5,000 Other committees may choose to 69. Rolls-Royce North America PAC $1,000 file electronically under the 70. Ryder Empls PAC $1,000 Commission’s voluntary electronic 71. Services Group of America PAC $1,000 filing program, which began in 72. Sisisky for Congress $325 1997. 73. Southwestern Electric Power Company PAC ———2 The Commission makes elec- 74. Sunbelt Good Government tronically-filed reports available for Committee of Winn-Dixie Stores Inc. $1,000 public viewing on the FEC web site, 75. SunTrust Mid-Atlantic Responsible Government Fund $1,000 www.fec.gov, within seconds of 76. Texas-New Mexico Power Company receipt. Images of reports that are Responsible Government Association $1,000 filed on paper are posted on the site 77. Textron Inc. PAC $3,000 within 24 to 48 hours.✦ 78. Title Industry PAC $1,000 —Amy Kort 79. Trotter 2000 for Congress $900 80. United States Telecom Association PAC $2,000 81. Volunteer PAC $1,000 82. Waddell & Reed Financial Inc. PAC $1,000 1 Senate committees, which file their 83. Western Pistachio Association Pistachio PAC $1,000 reports with the Secretary of the Senate, 84. Wynn for Congress $5,000 are not required to file electronically. 85. Wynn for Congress $5,025

1 This civil money penalty has not been collected. 2 The committee provided evidence that the report was filed timely, so the Commission took no further action.

7 Federal Election Commission RECORD September 2001

CIO and DNC that the closed MUR Court Cases files would be placed on the public Alternative record. The Commission’s long- Dispute standing practice is to make copies New Litigation of its closed MUR files available to Resolution the public within 30 days after AFL-CIO and DNC Services notifying all respondents that a ADR Program Update Corp./DNC v. FEC MUR has been closed. 11 CFR On July 17, 2001, the U.S. 5.4(a)(3) and (4). In July 2001, the Commission District Court for the District of In May and June 2001, after publicized information on three Columbia granted Plaintiffs’ request reviewing the files that the Commis- additional cases resolved in the for a preliminary injunction barring sion planned to make public, Alternative Dispute Resolution the Commission from publicly Plaintiffs made multiple submis- (ADR) program. The respondents, releasing documents relating to sions to the Commission requesting the alleged violations and the closed enforcement matters (MURs) that the MUR files not be publicly penalties assessed are listed below. 4291, 4307, 4328, 4338, 4463, released. Plaintiffs argued that The Commission reached agree- 4500, 4501, 4513, 4555, 4573 and releasing the files would violate the ment with Omaha State Bank. The 4578 (MUR 4291, et al.) until the enforcement confidentiality provi- bank agreed to pay a $500 civil conclusion of the litigation. The sion of the Act, 2 U.S.C. money penalty for making a prohib- injunction does not bar the Commis- §437g(a)(12)(A), the First Amend- ited contribution by a national bank sion from releasing the: ment and the Privacy Act, 5 U.S.C. toward a federal election. 2 U.S.C. §441b(a). In addition, the bank will, • General Counsel’s Report, dated §552a. Plaintiffs also claimed that within 90 days of the agreement, June 12, 2000; the files contained information • Certification of the Commission’s exempted from disclosure under the Acting Deputy Secretary, dated Freedom of Information Act July 12, 2000; (FOIA). 5 U.S.C. §552. The • Statement of Commissioner Scott Commission denied Plaintiffs’ Campaign Guides E. Thomas, dated September 5, requests. Available 2000; and Court Case. On July 13, 2001, • Conciliation agreement between Plaintiffs filed a complaint with the For each type of committee, a the Commission and the Demo- U.S. District Court for the District Campaign Guide explains, in cratic-Republican-Independent of Columbia seeking a permanent clear English, the complex Voter Education Committee. injunction that would prevent the regulations regarding the activity Commission from publicly disclos- of political committees. It shows Background. On June 17, 1997, ing most of its investigatory files in readers, for example, how to fill the Commission found reason to closed MUR 4291, et al. They also out FEC reports and illustrates believe that the American Federa- requested a preliminary injunction how the law applies to practical tion of Labor and Congress of or temporary restraining order to bar situations. Industrial Organizations (AFL- the Commission’s release of the The FEC publishes four CIO), the DNC Services Corpora- documents while the case was Campaign Guides, each for a tion/Democratic National heard. different type of committee, and Committee (DNC) and others had The court issued a preliminary we are happy to mail your violated the Federal Election injunction barring release of the committee as many copies as you Campaign Act (the Act) during the files, which will maintain the status need, free of charge. We 1995-96 election cycle (MUR 4291, quo while the court considers encourage you to view them on et al.). The Commission subse- Plaintiffs’ arguments. The court also our Web site (go to www.fec.gov, quently conducted an investigation set an accelerated briefing schedule then click on “Campaign Finance into the alleged transgressions, for final resolution of the case. Law Resources” and then scroll during which the AFL-CIO and the U.S. District Court for the down to “Publications”). DNC produced more that 20,000 District of Columbia, CA-01- If you would like to place an pages of documents relating to their 1522.✦ order for paper copies of the activities. On July 11, 2000, the —Amy Kort Campaign Guides, please call Commission voted to take no further 800-424-9530, press 1, then 3. action on MUR 4291, et al., and it subsequently informed the AFL-

8 September 2001 Federal Election Commission RECORD

adopt and distribute to bank person- The largest edition in the series, Information Division nel a policy prohibiting bank Federal Elections 2000 features two Director Resigns contributions in connection with new additions: Louise D. Wides, who served 16 federal elections. • An appendix that provides statis- years as the Assistant Staff Director The Commission also reached tics for previous Presidential of the Information Division, has agreement with Kurth for Congress. general elections; and resigned from the agency in order to The committee, which had failed to • A chart showing the general begin work in the private sector. Her provide adequate disclaimer infor- election votes cast for all federal last day with the Commission was mation, acknowledged the admon- races by party. June 29, 2001. ishing nature of the agreement and Ms. Wides had worked for the The publication is available for agreed to file for termination. Commission since 1975, starting her viewing and downloading at the Finally, the Commission dis- career as an Information Specialist. FEC’s web site at www.fec.gov, in missed allegations against Friends Under her direction, the Information the “Elections and Voting” section. of Roger Kahn, Roger Kahn, and Division wrote and produced the To obtain a free copy of Federal Matthews & Maxwell, Inc., con- Campaign Guide series, the bro- Elections 2000, or for more infor- cerning corporate contributions and chure series and the Record. In mation, call the Public Records failure to report receipts. The ADR addition, Ms. Wides oversaw the office at 800/424-9530 (press 3) or Office concluded that the alleged growth and development of the at 202/694-1120.✦ violations were unsubstantiated, and FEC’s conference program and the —Amy Kort the Commission concurred by toll-free line to provide compliance dismissing the matter. help to the regulated community. Closed ADR-negotiated settle- Greg J. Scott, who served as ment summaries are available from Staff Deputy Assistant Staff Director the Public Records Office at 999 E under Ms. Wides, has been named Street, NW., Washington, D.C. Acting Assistant Staff Director of 20463. The Public Records Office Acting FEC General the Information Division. A 1988 may also be contacted at 800/424- Counsel Resigns graduate of Indiana University, Mr. 9530 (press 3).✦ Lois Lerner, the FEC’s Acting Scott has worked in the Information —Phillip Deen General Counsel, will leave the Division since 1990.✦ Commission in September to take a —Amy Kort senior post with the Internal Rev- Publications enue Service (IRS). Ms. Lerner will be the Director of Rulings and Agreements in the Exempt Organi- Back Issues of the Results of 2000 Federal zations Technical Division at the Record Available on Elections Published IRS. This division deals with tax- the Internet The Commission has released exempt political organizations. This issue of the Record and all Federal Elections 2000, a 197 page Ms. Lerner had been Acting other issues of the Record starting publication detailing the official General Counsel since January of with January 1996 are available primary, runoff and general election 2001. She joined the staff of the through the Internet as PDF files. results for the 2000 Presidential and FEC’s Office of General Counsel in Visit the FEC’s World Wide Web Congressional elections. For each 1981 and later served as the FEC’s site at http://www.fec.gov and state, Federal Elections 2000 lists Associate General Counsel for click on “What’s New” for this the names of candidates on the Enforcement. Prior to joining the issue. Click “Campaign Finance ballot, party affiliations and the FEC, she was a staff attorney in the Law Resources” to see back is- number and percentage of votes Criminal Division of the Depart- sues. Future Record issues will be each candidate received. It also ment of Justice.✦ posted on the web as well. You provides charts that illustrate and —Jim Wilson will need Adobe® Acrobat® summarize election results. The Reader software to view the pub- publication’s statistical data, which lication. The FEC’s web site has is based on official figures provided a link that will take you to Adobe’s by state election officials, includes web site, where you can download election results as amended through the latest version of the software June 2001. for free.

9 Federal Election Commission RECORD September 2001

The conference will consist of a Outreach series of workshops presented by PACronyms, Other Commissioners and experienced PAC Publications Available FEC Regional Conference FEC staff. A representative from the in Denver for Candidates, Internal Revenue Service will be The Commission annually Parties and PACs available to answer election-related publishes PACronyms, an tax questions. alphabetical listing of acronyms, This October, the Federal Elec- The conference will be held abbreviations and common names tion Commission will hold a com- October 2-4, 2001, at the Westin of political action committees prehensive, two and one-half day, Westminster, 10600 Westminster (PACs). regional conference in Denver. This Blvd., Westminster, Colorado For each PAC listed, the index conference is designed to help (Denver metro area). The registra- provides the full name of the federal political committees and tion fee for the conference is $360, PAC, its city, state, FEC candidates understand and comply which covers the cost of the confer- identification number and, if not with federal campaign finance law. ence, reception, materials and identifiable from the full name, The conference will provide an meals. The registration fee and the its connected, sponsoring or overview of the basic provisions of registration form, which is available affiliated organization. the federal election law and discuss by mail and online, must be re- The index is helpful in identify- specific requirements that apply to ceived by August 31. A late regis- ing PACs that are not readily candidates, political parties and tration fee of $10 will be added as of identified in their reports and corporate, labor and trade associa- September 1. A full refund will be statements on file with the FEC. tion PACs (as well as their sponsor- made for all cancellations made To order a free copy of ing organizations). before that date. PACronyms, call the FEC’s A room rate of $158 single or Disclosure Division at 800/424- double is available for hotel reserva- 9530 (press 3) or 202/694-1120. tions made by August 31. Call (303) PACronyms also is available on 410-5000 or (800) 937-8461 and diskette for $1 and can be specify the Federal Election Com- accessed free under the “Using Public Appearances mission room block. After August FEC Services” icon at the FEC’s September 11, 2001 31, room rates are based on avail- web site—http://www.fec.gov. NABPAC ability. Free parking is located Other PAC indexes, described Washington, D.C. across from the hotel. below, may be ordered from the Commissioner Thomas Disclosure Division. Prepayment Registration is required. Conference registrations will be September 17, 2001 • An alphabetical list of all accepted on a first-come, first- registered PACs showing each John M. Asbrook Center for served basis. Attendance is limited, Public Affairs PAC’s identification number, and other FEC conferences have address, treasurer and Ashland, Ohio sold out this year, so please register Commissioner Smith connected organization ($13.25). early. • A list of registered PACs For registration information, call arranged by state providing the September 26, 2001 Sylvester Management Corporation American University same information as above at (800) 246-7277 or send an e-mail ($13.25). Washington, D.C. to [email protected]. Commissioner Mason • An alphabetical list of To download the agenda or fill out a organizations sponsoring PACs registration for the conference showing the PAC’s name and September 29-30, 2001 online, visit www.fec.gov/pages/ California Political Attorneys ✦ identification number ($7.50). infosvc.htm#Conferences. The Disclosure Division can Association/ —Phillip Deen California Political Treasurers also conduct database research to Association locate federal political committees Monterey, California when only part of the committee Commissioner Wold name is known. Call the telephone numbers above for assistance or visit the Public Records Office in Washington at 999 E St., NW.

10 September 2001 Federal Election Commission RECORD

2001-4: Use of electronic signatures Other Index for PAC contributions by payroll – Hooker v. All Campaign Con- deduction, 6:6 tributors, 1:10 2001-6: Status of party as state – Hooker v. Sundquist, 4:8 The first number in each citation committee, 6:7 refers to the “number” (month) of 2001-7: Nonaffiliation of LLC PAC Regulations the 2001 Record issue in which the with SSFs of member companies Advance Notice of Proposed article appeared. The second of the LLC, 8:6 Rulemaking on definition of number, following the colon, 2001-8: Campaign committee’s “political committee,” 4:1 indicates the page number in that purchase of candidate’s book for Notice of Proposed Rulemaking on issue. For example, “1:4” means distribution to contributors, 8:9 brokerage loans and lines of that the article is in the January 2001-9: Former Senator’s use of credit, 9:1 issue on page 4. excess campaign funds to pay Notice of Proposed Rulemaking on reporting of independent expendi- Advisory Opinions expenses resulting from media tures and last-minute contribu- Alternative disposition of 2001-5, inquiries made after his term tions, 6:1 5:6 expired, 9:1 Final rules for general public 2000-24: Preemption of state 2001-10: Employment of political communications coordi- election law mandating fixed candidate’s spouse by campaign nated with candidates and party allocation ratio for administrative committee, 9:4 committees; independent expendi- and voter drive expenses, 2:2 Compliance tures, 1:2, 6:3 2000-27: Status of party as state Committees fined under Administra- committee, 3:6 tive Fines Program, 2:6, 4:7, 5:7, Reports 2000-28: Disaffiliation of trade 6:5, 7:8, 9:6 Amendments to Statements of associations and their PACs, 2:3 MUR 4594: Prohibited Foreign Organization, 2:1 2000-30: Nonconnected PAC’s National Contributions, 6:8 Arkansas special election, 9:5 receipt and use of securities, 5:1 MUR 4762: Prohibited union Arizona state filing waiver, 6:10 2000-32: Reporting uncollectable contributions and other violations, California special election, 3:5 loan, 1:9 2:9 Committees required to file tax 2000-34: Name and acronym of MUR 5029: Contributions in the returns, 3:4 SSF, 2:5 name of another made by corpora- Florida special election, 7:4 2000-35: Status of party as state tion and government contractor, July reporting reminder, 7:1 committee, 1:10 2:10 Massachusetts special election, 7:6 2000-36: Disaffiliation of noncon- Nevada state filing waiver, 2:2 nected PACs, 2:5 Court Cases Pennsylvania special election, 4:5 2000-37: Use of campaign funds to _____ v. FEC Reports due in 2001, 1:4 purchase and present Liberty – AFL-CIO and DNC Services Virginia special election, 5:6 Medals, 2:6 Corp./DNC, 9:8 2000-38: Registration of party – Beaumont, 2:8, 3:2, 5:6, 6:9 committee due to delegate – Buchanan, 1:10 expenses, 2:7 – Cunningham, 8:4 Need FEC Material 2000-39: Status of party as state – DNC, 2:8. 3:2 in a Hurry? committee, 2:8 – Dole, 5:6 Use FEC Faxline to obtain FEC 2000-40: Donations to legal defense – Kieffer, 7:7 fund of Member of Congress, 3:7 material fast. It operates 24 hours – Miles for Senate, 3:3 a day, 7 days a week. More than 2001-1: Use of political party’s – Nader, 4:8, 6:9 office building fund to pay 300 FEC documents—reporting – Natural Law Party of the United forms, brochures, FEC building renovation costs and States of America, 1:10, 2:8, 3:2 fundraising expenses of building regulations—can be faxed almost FEC v. _____ immediately. fund, 4:5 – Colorado Republican Federal 2001-2: Status of party as state Use a touch tone phone to dial Campaign Committee, 8:1 202/501-3413 and follow the committee, 4:6 – Friends for Fasi, 6:8 2001-3: Use of campaign funds to instructions. To order a complete – NRA, 8:3 menu of Faxline documents, enter purchase an automobile for – Toledano, 7:8 campaign purposes, 5:5 document number 411 at the prompt.

11 Federal Election Commission RECORD September 2001

FEDERAL ELECTION COMMISSION 999 E Street, NW Presorted Standard Washington, DC 20463 Postage and Fees Paid Federal Election Commission Permit Number G-31 Official Business Penalty for Private Use, $300

Printed on recycled paper