BOB -- SCHUSTER Ie 0 Som 10O

FEDERAL ELECTION COMMISSION WASHINCTOf. 0 C 20fi)

NS IS tE BEGINl :FMR # _

DATE F LI'D 3-44_5 CAWfRA NO$

-AEW Federal Election Cemmimi.n 99 E Streeto NW Washingtn D.C. 24163

De Sim

I believe Robert P. Sehumer and the Selmter for Congem Committee .,-\t 4C0292T1M. in its July I Sth y.artelyreport FEC rules in several *lgatandser"sm ways.

Thbe repeat whw --* v9 1 for $2*A to tibe T-en Commm i- a W- v-----D.C. baeod media .. a... . L. Jews". of Cheyo.- Wym is sonrM a on.1o4/3 for S3.60.50. on I 13193 foS On 113 oir 6on2 52 and em 3/3/94 for 2J0. Mr. Jcmn is asd-o smewbis.eoac be w obmiomly empl d - a apag wobke. eh on e eompa psyroU in April. May ad Ji at th. omsme ratse of IMM.A@ per msth. Scbmer for Coegrem ommkttee alis lie a paymenmt of S3,5IL to c--.g.am Plante and A-ite. on W394. This is a general campaigm Utnt boed in Charleston, Wet Virgihna.

Aees1m-0 to FEC guidelimes, wthe n a becomesa whethetan Individual make. over $so"6." in expenditures. T threshold w exceded by Reheat P. Sehmter on 104/93. AccordUn to the FEC the candidat mot designt a princpal campan mmitte wthin fifteen days of eeedig the spen glimit. This desigmatiom is moadie by filing a sateament of camdidaey 4FEC Form 21 or a letter wit the samme I-nfrmaden. Robert P Sehaster did not file his statement of candiday Muil April 6. 1994.

Although monies cam be omed to "test the waters" that do not count toward. the S9000.09 trigger requiring a filing of canlidacy. the momes spent by the Sehuster for Congress commitee to hire a full tim eampaign worker and media consultants do not fall Into activites that are part of testing the water. These expenditures are clearly part of an organised campaign.

ftlaftly P.O. BOX 368 BIG HORN, WYOMING 82833 a (800) 870-4409 (WY) 8 (307) 672-9611 * FAX (307) 672-3744 Pw Federal Election COm n August 3. 1994 999E Street NW Pnge 2 Washlagton. DC 20463

Mere gni-- lcantly. the Schuster for Congress Committee report showa me eash contributions an itemiwed receipts until 3/9i94. The candidate is not sdown making any easb contributions at any time to the eampaign. (Hie did make in-kind ceontributions on April O. May 25 and May 26 of computers and ofite suppiesO. Therefore. eerding to the June 30, 1994 report there is no poele way that the S ! 6.300 disbursed prior to the filing of candidacy eould have been paid by the eampaign. This is obviously a gross violation of FEC laws and raims the question of who paid the money to Struble-Totten Cemmunicatiens. fl.L. Jensen. and Cu-i-h am Plante Amoeiates.

The last violation I am aware of is the fact that the Schuster for Congress Committee did not report disbursements to Bennettv Pett Asociates for a Poll conducted in May 1994. The cost of the poll is likely to have been in the range of S13.000.00. This large an item should not have been easily overlooked and the lack of its repor rep ents another clear violation of FEC rules.

I hope the FEC will swiftly addre those serious violations of FEC ruea. It is especially shocking that these violations have occurred in the eampaign of an attoeey who is a member of the Democratie National Committee. whose camagn tremurr is an attorney, and who has hired his own personal election law a ey paid for by the committee.

S "rely*

on Mers ler P.O. Box 368 Big Born, Wyoming 862833

Subscribed and sworn before mre this Z ' day of jffi 199 4

SI(sgn

My COmM Ea.s S.S, 1994 m ------J * S 9 :PPO AM44f "Ang 11 21.-8 STATE ME~rOAAY I Em - F* (m mvtR eIw tv mI~etr

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SCHOUSt POs CONGRESS

P.O, Box 447 - 200 West 17th Street, suite 110

Cheywm., WYomag $2003

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16-TOTAL EKCIgTg (a"A I 1(e* it. 134c). - 4eI)..

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r Star-Tribune *-~*~ 12/15.-~3 4.50

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g. Full N.m., Kettle; £i~-~gg a~* RIP two P~~es e ~ 'eww.w..a I mburse~n o'Sa~v..-~cwgt ~ e*,sw /4/94 1,397.27

~ f SUBTOTAL of Olsbursevrentt This Pegs (opttoeiei). ~2~O4L77

TOTAL This Period (ic~t c'~;~ this tine ngev~v pe1~)

* w,~.'' FEDERAL ELECTION COMMISSION WASHINGTONr DC 2O 3

AUGUST 8, 1994

ion Herschler P.O. Box 368 Big Horn, WY 82833

RE: MUR 4023

Dear Mr. Herschler:

This letter acknowledges receipt on August 3, 1994, of your complaint alleging possible violations of the Federal Election Campaign Act of 1971, as amended ("the Act"). The respondent(s) will be notified of this complaint within five days.

f ~ You will be notified as soon as the Federal Election Commission takes final action on your complaint. Should you receive any additional information in this matter, please forward it to the Office of the General Counsel. Such information must be sworn to in the same manner as the original complaint. We have numbered this matter MUR 4023. Please refer to this number in all future communications. For your information, we have attached a brief description of the Commission's procedures for handling complaints.

Sincerely,

Mary L. Taksar, Attorney Central Enforcement Docket

Enclosure Procedures FEDERAL ELECTION COMMISSION W AS H IN G TO N .D C 20 4 08

AUGUST 8, 1994

Robert R. Rose, Jr., Treasurer Schuster for Congress 200 W. 17th Street, #110 Cheyenne, WY 82003

RE: MUR 4023

Dear Mr. Rose: The Federal Election Commission received a complaint which indicates that Schuster for Congress ("Committee") and you, as treasurer, may have violated the Federal Election Campaign Act of 1971, as amended ("the Act"). A copy of the complaint is enclosed. We have numbered this matter MUR 4023. Please refer to this number in all future correspondence. Under the Act, you have the opportunity to demonstrate in writing that no action should be taken against the Committee and you, as treasurer, in this matter. Please submit any factual or legal materials which you believe are relevant to the Commission's analysis of this matter. Where appropriate, statements should be submitted under oath. Your response, which should be addressed to the General Counsel's Office, must be submitted within 15 days of receipt of this letter. If no response is received within 15 days, the Commission may take further action based on the available information. This matter will remain confidential in accordance with 2 U.S.C. S 437g(a)(4)(B) and 5 437g(a)(12)(A) unless you notify the Commission in writing that you wish the matter to be made public. If you intend to be represented by counsel in this matter, please advise the Commission by completing the enclosed form stating the name, address and telephone number of such counsel, and authorizing such counsel to receive any notifications and other communications from the Commission. 0.

Robet R. Rose, Jr., Treasurer Schuster for Congress Page 2

If you have any questions, please contact Joan McEnery at (202) 219-3400. For your information, we have enclosed a brief description of the Commission's procedures for handling complaints. Sincerely,

Mary L. Taksar, Attorney Central Enforcement Docket

Enclosures 1. Complaint 2. Procedures 3. Designation of Counsel Statement FEDERAL ELECTION COMMISSION t WA$HINCTON. OC ?O46

AUGUST 8, 1994

Robert Parks Schuster 15 South Jackson Street P.O. Box 548 Jackson, WY 83001

RE: MUR 4023

Dear Mr. Schuster: The Federal Election Commission received a complaint which indicates that you may have violated the Federal Election Campaign Act of 1971, as amended ("the Act"). A copy of the complaint is enclosed. We have numbered this matter HUR 4023. Please refer to this number in all future correspondence. Under the Act, you have the opportunity to demonstrate in writing that no action should be taken against you in this matter. Please submit any factual or legal materials which you believe are relevant to the Commission's analysis of this matter. Where appropriate, statements should be submitted under oath. Your response, which should be addressed to the General Counsel's Office, must be submitted within 15 days of receipt of this letter. If no response is received within 15 days, the Commission may take further action based on the available information. This matter will remain confidential in accordance with 2 U.S.C. 5 437g(a)(4)(B) and S 437g(a)(12)(A) unless you notify the Commission in writing that you wish the matter to be made public. If you intend to be represented by counsel in this matter, please advise the Commission by completing the enclosed form stating the name, address and telephone number of such counsel, and authorizing such counsel to receive any notifications and other communications from the Commission. Robert Parks Schuster Page 2

If you have any questions, please contact Joan McEnery at (202) 219-3400. For your information, we have enclosed a brief description of the Commission's procedures for handling complaints. Sincerely,

'fW j I. T4t*Nr

Mary L. Taksar, Attorney Central Enforcement Docket

Enclosures 1. Complaint 2. Procedures 3. Designation of Counsel Statement BOB -- SCHUSTER iE 0 som 10O

August 8, 1994 r C- q 09-:3 r'

Federal Election Commission Via Telefax: (202) 219-3923 999 E Street NW and Regular Mail Washington, DC 20463

Dear Commissioners:

I am the Administrative Director of Bob Schuster's campaign for the Wyoming Democratic Party's nomination for the United States House of Representatives.

It is my understanding that his opponent in this race -- Jon Herschler -- may have filed a complaint with the Federal Election Commission. We have not been provided a copy of that complaint by Mr. Herschler.

We are fully confident that our filings with the Federal Election Commission have been in complete compliance with federal law.

If Mr. Herschler has, in fact, filed a complaint with the Federal Election Commission, it would be appreciated if you would immediately forward it to this campaign.

Further, we request that the Federal Election Commission expedite consideration of this matter so it can be resolved at the earliest possible opportunity.

Sincerely,

Gregr+T om itz

cc: Jon Herschler The Honorable Kathy M. Karpan, Wyoming Secretary of State Lawrence Noble, General Counsel

H) P ?",, \ .t i h tt.+t. S ',e " '4120 E, ,' nrd Str, '1 Chccnnm 'A -,rnn .' . .'s .W% oming X26w Pho -e ' 112 ,' Pad forh% S.:husicr t-OrCong S Cmmm ee , . 1) '-473-12;o 0

F F IKATHjy ARPAN Secretary of State *&ts Yronpri?O2 2 2 0

August 8, 1994 C,

Federal Election Commission Report Analysis Division 'X --4 Washington, D.C.

VIA FAX: (202) 219-3496 ATTN: Carson Bevan

Dear Mr. Bevan:

On August 3, 1994, Jon Herschler sent you an inquiry pertaining to FEC Receipts and Disbursements Reports filed by the Schuster for Congress Committee, (FEC Identification Number C00292789). Jon Herschler and Bob Schuster are running against one another for the Democratic nomination for our lone U.S. House seat.

Secretary of State Kathy Karpan of course has no jurisdiction over alleged federal election law violations. However, Dr. Herschler asked that this office ask you to expedite the review of the allegations and issue a decision before the August 16th Wyoming Primary Election.

Thank you for your consideration of this request.

Yours,

Kathy Karpan Secretary of State

Marg fte

Depu Vcretary of State

MW:m cc: Dr. Jon Herschler Mr. Bob Schuster

Margy White The Capitol Deputy (307)777-7378 0 Rwvcw Paef FEDERAL ELECTION COMMISSION WASHINCTON DC 2063

SEprEmBER 8, 1994

Margy White Deputy Secretary of State Office of the Secretary of State Cheyenne, Wyoming 82002-0020

Dear Ms. White:

This is in response to your letter dated August 8, 1994, addressed to the Reports Analysis Division of the Commission. Your letter references an "inquiry" by Jon Herschler with respect to Schuster for Congress, and asks that the Commission "expedite the review of the allegations and issue a decision before the August 16th Wyoming Primary Election." For your information, the Federal Election Campaign Act of 1971, as amended ("the Act") prohibits any person from making public the fact of any notification or investigation by the Commission, prior to closing the file in the matter, unless the party being investigated has agreed in writing that the matter be made public. See 2 U.S.C. 4 3 S 437g(a)(4)(B) and S 7g(a)(12)(A).-Because there has been no written agreement that the matter be made public, we are not in a position to release any information at this time. Your letter will be added to the file in this matter.

Sincerely, Lawrence M. Noble Gen4eral Cou sel

BY: Lois . Lerner Associate General Counsel PERKINS COlE OPTC F,tERIL A L~w PARTNERSHIP !N1II)ING PROU!SONAL CORPORATIONS 3 1 / ~U~ff'~NTN A~ 0 U ~ \ )( C' 212XMfl .22~2x(Y{4* ~ MH 202 0 (00

August 30, 1994

Mazy Taksar Office of the General Counsel Federal Election Commission 999 E Street, N.W. Washington, D.C. 20463

Re: MUR 4023

Dear Ms. Taksar:

Please find enclosed designations of counsel for Robert Schuster and the Schuster for Congress Committee with respect to the above-referenced matter under review.

Because we have only now been designated as counsel, we request an extension of time of 20 days to file a response to the complaint This extension is necessary to allow adequate time for the review of materials and collection of necessary information to file a response.

With the extension, the response would be due on September 21, 1994. If you have any questions or need additional information, please contact one of the undersigned.

Robert F. Bauer Judith L. Corley Counsel for Respondents

219 13-00 1,D.A942420.022]

. " If . K * , - . ",a\!',,,4',t'..' 0 V 3T*MIINT OF DESGNATION 01 C*SEL

MUR 40223 Judith L. Corley NAME OF COUNSEL: Robert F. 11auer

Perkins Cole ADDRESS: 607 Fourteenth Street, W 0 0 Washinqton° L)C 20005-2011 L

0 TELEPHONE: ( 2 2 ) 4 -H12

8-29-94 Date Sgu Eai ercill, ;ssistant 'ireasurer Sc::uSter for Congress

RESPONDENT'S NAME: Schuster for Congress

ADDRESS: 200 West 7th, Suite 11D

Cheyenne, WKY q32

TELEPHONE: HOME( )

BUSINESS( .90 STDENT OF DESIGNATION or C*EL 1w

MUR 4023 Judith L. Corley NAME or COUNSEL: Robert F. Bauer

Perkins Coie w 607 Fourteenth Street, "ow ADDRESS: %4 -8 1 Washington, DC 200,'5-2011

2 2 ' ' TELEPHONE: ( ) 4,4-It,

The above-named individual is hereby designated as my

counsel and is authorized to receive any notifications and other

communications from the Commission and to act on my behalf

before the Commission.

9-29-94 Date Signature

RESPONDENT'S NAME: Bob Schuster

ADDRESS: 2o West 17t-, Siite 11

Chevenne, WY S2 3 i

TELEPHONE: HOME(

BUSINESS( Im FEDERAL ELECTION COMMISSION

SEPTEMBER 1, 199 4

Judith L. Corley, Esq. Perkins Coie 607 Fourteenth Street, N.W. Washington, D.C. 20005-2011

RE: MUR 4023 Robert Schuster and the Schuster for Congress Committee

Dear Ms. Corley: This is in response to your letter dated August 30, 1994, requesting an extension to respond to the complaint filed in the above-noted matter. After considering the circumstances presented in your letter, the Office of the General Counsel has granted the extension. Accordingly, your response is due by the close of business on September 16, 1994. If you have any questions, please contact Joan McEnery at (202) 219-3400. Sincerely,

Mary L. Taksar, Attorney Central Enforcement Docket TMBY*-PERKINS COlE DC 3 8-81-94 ; I:IPU ,446O I!Iitm

PERIJNS O f CENFRAL A 114i FLc A3" m flt'sqaamwA 607 Poumm.w shv, Nw.. a wAammw,D.c. 2004 2 ft6oo • FmAW (o= 4.u-16

AWWg 31I, 1994

Joan McEnay of &CGemra C4se FederalOfie BleoiuCamniuo 9 E Sfee, N.W. Wahidngtoa D.C. 20463 Re: MUR 4023 Dow Ms. mcan PursUa Wto you reqp inn ow 6 wa d o u te * foll win i to sma w-t ow remm fr u i ot &w defd Avg 30, 19949 i the --...r a--wmmle uner rIw.

cam iSesbThe t o*i4ia was w w Aus 12. SMr. s prry eI wu-m Mingm $Tudy, Amu 16. Th *' canyg contaed ow W 0ou s fthpMy ulao At ,t thuu0, we advised &tI dm a d im.* otHma and H fm we IM teaatmmk we requesth aa- as

receid t upaie m t di,.w eqp the eaqili . When I met Wt t IP k zmat the Zniult or"tnle dmip,,, k thCcmpe~ i o *nemn a hnw o &eoourdmd aqu bd Myet boa mobythft o uid. 669thedeui af GomUs at thd atzet ad th reus A -Auumo saimtofiewu I'Muedto t uahagkn tit day. Tle deklayina r u eg 1tcmuia was t ex1 oau nroMa th PUmik onear behalf&e without rago he ignthe-amba 0yo com gu believed &hawe had re &stdte Wemao.Wan t other ha"d hax o aa i resulrecive te dsinatins,mp~ m'nothe of aoums -l ad believedcai thedd-- comesg ndrtmthatie' hWjad empkcoul euetd we e exteniondirecdy ftw te Com~ission Ift should be note tha)M& Sst is runn=9 for federa offi for ti. &Ms t=n and his campI= staff is not fimlar with t Cwnam's cmlinee proeein.Unlike othe Commission oiaonnot in te lette hrom

ANC-oRAo -Btu.vuul • Howo Ko * LoS AJNm SPmLiMN3R$*TLI 1 5oxAwUI, TAlMI • WAMsINTON, D.C. ITMYMIC AL4IANCI. RuIMzu. A Dtu ui4, VAXCOVUM bC. IM BY:PERKINS COIE DC 3 S8-31-94 ; 1:37PM ; 2024341090"* 202 219 $M43:8 3 S

Anmt 31, 1994 Pagp 2

he C mission trasmit the omplaint to t&e campaln mentioned the Commiion's policy on es of dnM. I believe the extesaoe' here would be benefical both to the campaign (for obvious ressn ), but also to o m the Co ii. It would not unduly delay the 's considra ion of this matter and it could avoid an unnecessary of reamon to believe. Withou the extensiam, the Commision will be considering a reson to believe *onwith only one side of the matter addrM , Given the Wgy pofiial nature of the complant (fied by Mr. Schustes-primary c oppatie days the jmmaxy eleotion), tat one side should not be the only =,fAMato theCkiso takes into account in maigits decision. If you hama any q about the f or need additonal in Mfonat plean do not hasi toCmaot us. Vey~ truly yours

Robert F. Baer lUt&L Carley Cow"e for Raupondts

(2I~l34WWA~42OO.Q3Ij OWI,4 SC.USFTERENA1 5i~t ~ 31 3a

September 3, 1994 -V a -~

~" Ms. Mary Taksar ~1 ~. ~ Office Of The General Counsel Federal Election Commission (a.) 999 E Street ~L) Washington. DC 20463

RE: MUR 4023

Dear Ms. Taksar,

Enclsed please find designations of counsel for Robert Schuster and the Schuster for Congress Committee.

If you have any questions, please call me.

Sincerely yours,

I n 'T nu LS6

Muffy Moore Deputy Administrative Director

cc: Judith L. Corlev

PC0 Box 447 P.O. Box q726 Zt. West 17th Street, Suite 110 4320 East 2nd Street Cheyenne, Wyoming 82003 Casper, Wyoming 82601 Phone: 307 637-7312 Phone: 307 473-1223 Fax: 307 637-6112 Fax: 307 473-1550 Paid tor b%-Schuster for Congress Committee ZNT Or DESIONATION Or CO L

4023

J clim fi-4 ;T- NAME OF COUNSEL: 'ranle-S L. Applegate AT oy It Prz FA /X# A V - - , , '* -/47 1720 re&, i ADDRESS: 1720 Carey Avnue, Suite 200

Ch-eyenne, WY 82003-1083 l- ;-ZO : Mr"

TELEPHONE:( 307 ) C32-0541

The above-named individual is hereby designated as my counsel and is authorized to receive any notifications and other communications from the Commission and to act on my behalf before the Commission. Imr. Applegate will serve as io-counselwith udith L. Corley and R±ert F. Bauer of -PerkinsCoi, 607 Fourteenth Street, Wb, washinaton, DC 20005-2011.

9-2-94 t uhue Elaine foil, Assistant Ireasurer Date S i9n Scmter for ongress

RESPONDENT'S NAME: Schuster for Cnitgress

ADDRESS: 200 rest 17th, Suite 110 Cheyennie, WY 62001

TELEPHONE: HOME(

BUSINESS( 0 0 S!* ZNT Or DESIGNATION OF C L

MUR 4023 wams L. AWlegate NAME OF COUNSEL:

Hirst & Applegate ADDRESS: 1720 Carey Ave, Suite 200

Cheyenne, WY 82003-1083

TELEPHONE:( 307 632-0541

The above-named individual is hereby designated as my counsel and is authorized to receive any notifications and other communications from the Commission and to act on my behalf

before the Commission. E.r. Applegate -ill serve as co-counsel with Judith L. Corley and Fobert F. Bauer of Perkins Ooi, 607 Fourteenth Street, w., Washington, DC 20005-2011. 9-2-94 Date t Elaine l, rcil, Assistant ireasurer Scuster for Congress

Bob Schuster RESPONDENT'S NAME:

200 West 17th, Suite 110 ADDRESS: Cheyenne , WY 82001

TELEPHONE: HOME(

BUS INESS( ______) PERKINS ColE 0jfI

A LAW PsamTwV ICLUDZnG PVoPUItONAL CoUKATIom SEP/ 6 21 Tw Ri' A,. i Nt t 4UrTH Fi&OR - %IFArTtF. WARII,T0'. 99101-309

(2( S93-8M8 v FA' %IMILr (206) 'S949S(X13

September 16, 1994

Joan McEnery Office of the General Counsel Federal Election Commission 999 E Street, N.W. Washington, D.C. 20463 Re: NIUR 4023 Dear Ms. McEnery: This is the response of Robert Schuster and the Schuster for Congress Committee ("the Committee"), Robert R. Rose, Jr., as reasr, to the complaint filed against them by Jon Herschler, Mr. Schuster's opponent in the Democratic primary for the U.S. House of Representatives in the state of Wyoming. The Complaint made several allegations, none of which wanant the Commission's pursuit of an enforcement action against Mr. Schuster or the Committee. The complaint was filed in a highly charged political atmosphere, immediately preceding the primary election. The political nature of the allegations is clear when examined in light of the Federal Election Campaign Act ("the Act") and the Commission's interpretations of that Act: The complaint alleges that Mr. Schuster failed to register as a candidate in a timely fashion because expenditures by Mr. Schuster and the Committee did not qualify under the testing-the-waters exemption of the Act.

0 The complaint alleges that the Committee did not report receipts adequate to cover the testing-the-waters activities.

0 The complaint alleges that the Committee did not report a poll it had commissioned.

Each of the allegations is discussed in turn below.

121913-0001 D.A942560 0621

SA. ii',i,\ F i ',ii & Dt Nfft L % s% tw FI. B C September 16, 1994 Page 2

Background Information

During 1993, the political landscape in Wyoming was extremely unsettled. At various times during the year. the incumbents in all three major state-wide offices -- Governor, Senator, Representative -- had indicated they would not seek re-election. Tlhe resulting open-seat contests for each of these offices created a confusing and uncertain situation. During the period before candidates announced for the various offices, different individuals were periodically mentioned as possible candidates for one, or more than one, of the offices. The political strategy of which office to run for was heavily influenced by what other candidates were considering running for the same office. If, for example, the incumbent Democratic Governor decided to run for the Senate, it was unlikely that any other Democrat would seek the nomination against him.

As the enclosed newspaper articles indicate, the Governor was involved in a legislative session during February and March 1994. He had made clear he would hold off announcing any decision on running for another office until after the legislative session ended. The legislature did not adjourn until March 17, 1994.

Mr. Schuster was one of the individuals considered likely to run for any one of the offices. While Mr. Schuster had never sought federal office before, he was very active in the Democratic Party in Wyoming, and had indicated a desire to run for public office. During the exploratory period at issue in this M-UR, he considered the possibility of running for all three offices. While each of the offices involved a state- wide race, the factors and strategies involved in making a decision to run, and to actually run, for each of the offices were significantly different: fundraising needs, media approach, likely Republican opponent, possible Democratic opposition, service to the State of Wyoming.

During this period, Mr. Schuster paid, from his own personal funds, expenses related to this exploratory effort. The expenses consisted principally of the hiring of political consultants to advise him on the issues raised in running for each of the offices in question. The consultants included Struble-Totten Communications, a media firm retained to advise on what was involved in a media campaign for any one of the three offices, Cunningham Plante & Associates, a fundraising and research firm retained to advise on the strategic approaches to a race for any one of the three offices, H.L. Jensen, a campaign consultant familiar with the unique aspects of

121913-"001 DA942560 0621 916,94'64 September 16, 1994 Page 3

Wyoming politics, and Dona Playton, a researcher looking at issues that might arise in any of the races.

The decision finally to run for the House of Representatives, as opposed to the Senate or the Governorship, was not made literally until the day Mr. Schuster announced for the House on March 22, 1994.

Testint the Waters Activities

As noted in the complaint,, the Act requires that any individual raising and spending in excess of $5,000 in support of a federal candidacy must file, within fifteen days, a Statement of Candidacy. The testing-the-waters regulations at I C. F.R. § 100.7(b)( I Xi), however, authorize "pre"-candidates to engage in exploratory activities without the burden of the public filing requirements that ensue upon the declaration of candidacy. These regulations assume that immediate entanglement with regulatory demands might discourage pre-candidates from attempting to assess seriously their interest in and prospects for office. The regulations also avoid the unnecessary reporting by an individual who decides, in the end, not to seek a particular office. The regulations and related Advisory Opinions, therefore, provide that as long as the pre-candidate maintains a true exploratory purpose, and only that purpose, the monies raised and spent may exceed the $5,000 threshold for a candidacy declaration without triggering public filing requirements.

Through a series of advisory opinions' interpreting these regulations, the Commission has recognized a broad range of activities that qualify as "exploratory," and are, therefore, justified under the reporting exemption. The permissible activities go far beyond the efforts made by Mr. Schuster during the exploratory period in question. It is clear, however, that the Commission has allowed exploratory efforts to include the hiring of consultants for the purpose of advising on the potential issues raised by and the mechanics of constructing a campaign organization.

ISee, for example. FEC Advison, Opinions 1981-32, 1982-3, 1982-19. 198540. 1986-6. 1 Fed. Election Camp. Fin Guide ICCH] IM 5620. 5647, 5669. 5842, 5849.

(21913-0001 DA942560 0629 9/16/94 Setme 16, 1994 Page 4

Commission regulations and opinions also provide examples of activities which, without question, will not qualify as exploratory, none of which apply to the Schuster efforts:

(1) fundraising so substantial in scope and amount that it represents an effort to "amass campaign funds" for use in a full campaign -- Mr. Schuster paid all exploratory expenses from his own personal funds.

(2) the making of oral and written statements, by the candidate or with his or her authority, which refer to the pre-candidate as, in fact a candidate - Mr. Schuster did not make any public announcements about declaring himself a candidate until he announced he was seeking nomination to the House of Representatives on March 22, 1994.

(3) a protracted period of allegedly exploratory activity, suggesting that the 0 evaluation of a candidacy must have developed into a candidacy in fact - Mr. Schuster's exploratory activities were conducted during a nine-month period.

(4) exploratory activity in close proximity to the election in question - Mr. Schuster's activities were concluded five months before the primary election in the state.

(5) actions to qualify the pre-candidate for the ballot in the state where he or she is exploring -- Mr. Schuster took no steps to qualify for the ballot until he had announced his intention to run for office.

The testing-the-waters activities undertaken by Mr. Schuster were of precisely the nature anticipated in the regulations: efforts to determine whether seeking a particular federal or state office is worthy of pursuit. The exploratory efforts questioned in the complaint fall squarely within the guidelines set out by the Commission and constitute legal exploratory activity by an individual. Revortini! of Exploratory Activities

The testing-the-waters disbursements were made from funds expended by Mr. Schuster from his personal checking account as in-kind contributions to the exploratory effort. The Committee reported all of the recipients of testing-the-waters disbursements made during the period that Mr. Schuster was exploring the possibility

121913-000 1D.A942 560, 0621j9 99/16/94 September 16, 1994 Page 5

of seeking federal office on the first report filed, the July 15 Quarterly report, with the exception of payments to Dona Playton. 2

The report did not, however, contain a listing of every payment to those recipients as those payments related to the exploratory effort for the House race. The report showed only certain payments to the recipients, payments that included amounts that related not only to the exploratory efforts for the House, but also those for the Senatorial and the gubernatorial races. The exploratory payments shown on the July 15 Quarterly report totaled $16,658.80, including those portions of the expenditures that related to non-House exploratory efforts. When all of the exploratory expenditures, with only the House portion of the exploratory activity shown, are reported, the amount actually totals only $14,942.93. Thus, the total dollar value of the exploratory expenditures, and the payees (with the exception of Dona Playton), were disclosed on the Committee's first report. It should be noted that the Committee, in its reporting of expenses incurred by Mr. Schuster in his exploratory effort, actually over-reported the amount of some of the expenses for testing-the-waters activities. Because Mr. Schuster was simultaneously exploring the possibility of participating in any of three races, only one of which he eventually entered, only the portion of expenses reported relating to the exploratory effort on behalf of the House race truly qualified as disclosable exploratory activity.

In reporting disbursements for the exploratory effort on Line 17, the campaign also did not report the corresponding contributions from the candidate on Line I ld. An amendment to this report is being prepared by the Committee to reflect only the House-related portion of all of the payments for exploratory activities, in addition to the receipt of the expenditures related to the testing-the-waters effort as contributions in-kind from the candidate.

2 Ms. Piayton. %hlcperforming research services for the cxpioratory effort, was also performing services form Mr. Schuster on matters unrelated to the explorabon effort. Thcre may havr been some confusion over whether payments made to Ms. Playton vcrc related to the exploratory effort and these payments were inadvcnentli left off of the Committee's initial report.

121913-OI DA942560 0621 9,1t6,94 September 16, 1994 Page 6

Poll Exi~enditure

The Committee did commission a poll from the firm of Bennett, Petts & Associates in the month of May 1994. An invoice for the poll dated June 17, 1994, was received by the campaign in late June. The campaign paid the invoice in full on July 5, 1994. This expenditure was disclosed on the Committee's pre-primary report (p~age 6 of 8 for Line 17) filed August 4, 1994. Nonetheless, because the poll was commissioned and the invoice was received during the prior reporting period, the Committee will reflect the obligation as a debt in an amendment to its July 15 quarterly report. Conclusion

As the discussion above shows, the allegations in the complaint do not set out a serious violation of the Act. The testing-the-waters expenditures made by Mr. Schuster were perfectly legal under the Commission's rules and Advisory Opinions. The poll identified in the complaint was fully paid and disclosed by the Committee. The Committee is in the process of preparing amendments to correct any errors in the reporting of these transactions.

In any event, the reporting errors did not do any harm to the underlying purpose of the disclosure provisions of the Act: to reflect the financial activity of a campaign. The Committee did report the expenditures made for exploratory activity in a timely fashion. Ironically, it is precisely because of the reporting by the * Committee that the Herschler campaign was able to file its complaint.

During the period in question in the complaint, the Schuster campaign was operating for the first time under the rules of the federal campaign laws. Its staff was unfamiliar with the intricacies of these laws. The Committee made a good faith effort to disclose the campaign activity undertaken. In the process, some minor reporting errors occurred. The Committee is promptly correcting these errors, and taking steps to ensure that they will not recur in the future.

Based on these facts, and on the Commission's enforcement priontization procedures, this complaint should be dismissed with no further action by the Commission. Given the nature of the violations involved, the prompt efforts by the Committee to correct its errors, and the highly political nature of the complaint in the

[21913-000 I A946560 06' 9916,94 1.9 September 16, 1994 Page 7

first place, the Commission's limited resources should not be wasted on pursuing this case any further.

Very truly

Robert F. Bauer Judith L. Corley Counsel to Respondents

121913-0001 'DA942560.062] 9/1 6,94 FEI)ENrcuVr GUIDE *At EW) HOLE orrCloptist" T10 JACKSON ICF 01 M wYO "'Ot. CE)VrR t *~E 16 is /~' so t 41W WgVWSPAER "W¢U409"MS WAM MCII"I

* Democrats prepare for state, local elections " E&AI A as ,smwrw-- OWNEM~llaUM [tta. N Otasi KaupBsmei and spec~vtly. beon the block in A10*oo~nM tthywijjC8"vo0tQ MP3 iahewontaseke N o eonbe AtWednikday'scodavete Iocajpat. ecthm bXut would pursue a hjgjW olfte, ty pet an hur "lhui in ferAL MW and uppe.dienrauped and h"iW faiu i s al ec. caly wW havepko either t"sd sYar, MU G ,r daium peondgSwimrnoofrUS ropmre"ersw , cie- platorm b efcumdWo e ttuid of for on Suihwa s final decuiseo Jack- vtea kderiL TakusCm~uyr uuoca&~ tyw~dcxfrm MWaYYWy f,p.. to ,ttuDmy Robert Scdusf 'tihcakcAmp Pdrty "an,pedim, CrhIt eJ~reu.d 1w &Wu gx. membe rDe.s have uwrew i th $we'%presed utau in a oae Mon ,r,.ald kr ru elmu- top execubve podMm,as office. Ciemu nation opnvat5Itributionto for gVib1 imaidjmxt~ W a U S.Se,,te seAt we as thier ur l e*mC- Ivghib- kav sew uICheyaw. Lot Hesuggt-l imecht.m igd.e dpub i M tuomqas Hwedo pepcaug "EvwYru s waltft atherasgwemoro,syoE swait omdt..rto prev.nt Alfluem Supponerm bu -r what the are anrd governor does, he sad. I m"A lotlgaround, of people LA Wskrad Ger.,u W m"'foNnraucor heSul- witit- uIaWIy ,ntkwc,ing racp. 8 7 and 21 other kvAn has nm ig The p laorm ,lssi p rm.d .diacae,. 1OWNW40xralD nd>-, a by Rumors lug yet declaredeffy ptum for aj*ek4W ofqpwm to m wha hap. ieform. redirecteuaa othe dehmse budget &QnA otfict. Suivaa oIp, ed to an. pens Wo going to be a fbr otW peac -time kndugrae, tud the "purunWi and pnvatiae nght of D=noM AiraLcveinun G dleon May w, nen w awsaao Wap up at the" d of thi wfrt deune thtir Owz. repiri(twe 71e degake AM Tw-a d Seeve Other 9*Wlh, dw~i- Th- of dskgrW ~SdI~k~ls--w1iek erda The cowry pk wilwin jn the pts, 00ftaWe Gke"Mktw PlbAdn coal S Uonp persot oh,"r22county pamrts JmW,W-akitoF t** Atdae A state InML* uand Cab Wwfev. of pubcg. auditor alai k~nurh VPeplafMUAI#90mJ1 cozunimetw revww ,,U AbmW WM" too wh h Pper. It's "into documents a iretre "o M faber Alu, f11LA1wh eary uLv be a mauI )fs.r.,, a rnawr platimm (A4d d.ck u tar the $LUC party TlhuSceWanty Mt1p,2nnze wwl

(. NO. WYO. QALY NE~WS peipn The stakes. wemhigh for Wyo- WORLAN taing anid 1 wonted to get stal'tod." Six Ropablicarsa have olflclslY anwnced they will sek thei:r Far- ty's nomination for the Nat being vaeated by U.S. Rep. Craig Thom"s. R.Wyro Thomas has amaced he will run for the U.S. Senate "at 4F111INEW" APEH being vacated by Whretiring Mal- 'w wi"6 110 colm WwIlop. b.A4UsnVD Karwa praised Schuster as a hard werimr who has been active, Is OweDemocratle Party She isote Ohat Schuster beat Wep Dan Wol.- 'Frst Democrt to announce run for a top office van, D-Chenne. insa party race for Derocratir natioiaa comsmilte House bid"\ ma. in 1992. Rnhuster announces "Sometimes psople file aind just needs sombody who can be slfseti stins)& andWAb .nwri a frisudy (AP) - A Jed=a% lawytr said giviOusiont for biasiroe. casttheirfates tothe wind." Karpan vely heard MuWashington and Ma tO "I'm sure (Schuster wilD wage TbwdaybwwM run for"theist. fr~ Wyoming' SPINt~ is tOwtirst DeMW0 saiud. esffwivoy fight sonuves orthe U.S. Hosi. He a IOU percent campaign. -He's interlt.. ready to make a wholehearted ram schbuster said his voice Would car- a%*k. my top Wyoming ry Weight in W ahingto, D.C. "e SdausM. , mdsA ha woculd the Con- ta7 Of StAlt KathY KarPe"daidsd she Oke Dessworatem"nti they wesal Schuster, a graduate of Natrona Watretapsuad* eltrdl the WWa posimIS if any gfm and the Donmocrat* seek. Couiny High School, studied law at -at ad. statil end Wyoming needs sk to say that thoy theUnvernity Of Wyoming aL4 .semebswy who can v back there 01tibk ite NaNeW psiatim asid Yale ~Univereity He aerved for four 1)" A a mi tapr sWeak to the mjnrity absait Tm' F=nee,Ive Oaid P1 just thi years as a (.W trustee and to cu- to. -( of thaSaet6040ShwadM aest,* he said. teaPartner in #10 "46 uors it's IaupoetSt to besl Ohe "W, reunt~y dirstar of Lawyers and &0 e r5 UIAPq Advociaes for Wyomnsvg, a public 7u6 a sarws elats eono' by as- interest law firm, Schuster also rouaded Wyomngr Public Policy F'onam, a nounpectsz groupcreted to study new ways to unpuove the stale's 0006mny. NMW U JACKBQN MOE V(AR 4 l

LAAR WYOUM

Candidate Perry pushes state's CCOflOmoj gyrowth * Former Buffalo LbITsWW! clownl to~ is legislator Campaigns 3 .dv~ who's the , I'rrY 1,aid, it in Jackson to rIP the e-tee-jtji.e branch Hole. *Les dirpr,-ji articu- 0 , and PT)ides tht Put. filMfr dbat inthe 1 0'uiaturu. Theg~ernr tc-rm c houald svt.a ,a As rvenCute drop uIJ1nTLrwar-enda, he sail ane bd-_t mnineraJq znidustry. The Lghtes, &miud paay a 1a-g. WVY*Migg should expand is eF role in3 the ecoix~my rs'.iti- than it Cur. sta te ' L ax re , t c. g a bt.j~)O I dfoes, Sceording to Perry. ragadidate ts'd. .We re.ed to rotbha~ going to how we're 01a recent visi rtcml Wywnng' 'mriw. o a kr al :ut.yPer" Rtp~b1~~JohnPerrYa aid s"Id %'"pn a leadership in Atror.ger the excu1ivo byan'* n'f UVernment~ will be inlei p on~ the bck ensxl Yft needod to puth h,.ZAlig, enough fur state taxr floney to pay OAt tile vcry ui h ,0MY'?~ ~~ pro0XYP~, will ta.kg mom. dint have sl"uhtr the Pewrk who mre krocki~ industr, 1rtat-eg 'flineral on doors- of busamc."'.q Permy ack0v~edq. In lure them 'TeeAo to the Sta"e ur to help all kinds of things citting oncfs that defli ne US a KrW ""li Ptrry. statoA he iem11d. Zl Frtner tot.r !3*s~i-1 -n elerneyg Itat. AOflxtur,-frorr Hit'mfl( tivec induittries the extrac- are in elI'ment. 3igi- wVtine9APpearance as, 'Ua hijw rulture is an elpmnt -Weup 0eIrc M', 01state islrkn. JPProawh We ricvd to :hpe xpension of salic Perry. , lawypr r'o'nt' with th,-^e PIC- worked who 1has 11ctflingp 'es! thana g pro. with 1)U"iDq..ge III(%that Irts inerestrA PCl.)plm know wo are In l ocating in the. vWcst. 5Sifnug. he ~i~ Re rrv I1 tj p Fteput4ican c n IV d C~ "Toti ri', w.Aj flwa candjdflte !(,r mportmt ,V be an L('r,. the gqveir. part Of d'eb "Wae"; spoat. Dem~ocrat iiciC~her. ry. Perry oaid. cCOD(? Mike Sullivan Ar%.G althoagh tile ha. o etam rdus~rv rrn'gl I ne~u~J h '~tic,&] Mesn little to I8fl-a aora, 6 plans% 9 ith minefaldepcrnd- IlOb &'huster, 5 lie state t ovm-s is conzidQring a Dcr sho~uld work toifeti-or rr 1 inig for goveieir. rCouraig t,) Perry -aid A AN 'mu.-tri,. he Paid. eimmple3 Abo~und gait', the nrpcfl-hlJjty 5 where thr o~f t rr!Lts wit!, stt ce stimulate busl. ness. C35per And Cheyerine hasV* each a *W neped sor~o Zlrporls lzfible for exporting tc auofo'rward Vrgicultura! ~ )d .0Vy %%r ie rtate. produ~ts 19u.% Ac ef.b' ervbody's Let's put ,et the state "ma, problems3 on t)hc board dcene notimng fo that eemrhor".V enrourage a,'it. Pvrrv*sid i Ilnnerntan& wtiy (10 5omc_ of tne things we do rry bAid BENN.Er, Pan. &Asoc ms, INC.NC

IBM commw, oam.. tiLW su 0 .Weupop~wn. D.C. 20009 t~322-10IWOj

INVOICV

J 17. tQ4

Scnnr for Cworegrt

ATTN: Grog

Tot& cost for Be~ ivtak- SWV"y c91 uCk45/16 - 19M'4

(4W InWrV&.6 2 MrutA) SI 4.000

Ano tOu ...... 14,626

POnr4rt due upon r cwpt P106s mae* chck Psyab; to B.nnt, Pett &W Associstes: Inc. a."m ma&. zo:

1875 C~nrctc Ave.. NW Washingtrn, D C. 200ow

TC:T;L4 JMH RANCH

September 27, 1994 Complaint File #4023

Federal Election Commission 999 E Street, N.W. Washington, D.C. 20463 Dear Sirs:

This is an addendum to a previous complaint I filed against Robert P. Schuster and the Schuster for Congress Committee (C00292789) on August 3, 1994. In its July 28, 1994 filing the committee showed only $19,000 cash on hand. Since the cash on hand represented funds for both the primary and over $22,500 donated to the general election, it is obvious that the committee was spending general election funds for the primary campaign. This represents a flagrant violation of the FEC rules. Another violation that should be investigated is the fact that the campaign has a worker being paid to work on the campaign in Southwest Wyoming, Terril Smith, who is not reported on any of the campaign's filings. Mr. Smith personally admitted to me in "- June 1994 that he was being paid to work on the Schuster campaign. Mr. Smith is a law student and there is a real possibility that he is being paid by a business entity, such as a law firm, to do his campaign activities. There appears to be a pattern of behavior in the Schuster for Congress Committee that shows a willful disregard for the Federal Election rules. I would appreciate it if I could be kept informed as to the status of your investigation. 1 Scerely,

n Her chler

Iaok

VP FEDERAL ELECTION COMMISSION WASHINGTON. DC 20*4

October 11, 1994 ion Herschler P.O. Box 368 Big Horn, WY 82833 RE: MUR 4023

Dear Mr. Herschler:

This letter acknowledges receipt on October 3, 1994, of the amendment to the complaint you filed on August 3, 1994. The respondent(s) will be sent copies of the amendment. You will be notified as soon as the Federal Election Commission takes final action on your complaint. Sincerely,

Mary L. Taksar, Attorney Central Enforcement Docket .I

FEDERAL ELECTION COMMISSION WASHINC TON. D C 20463

October 11, 1994

Judith L. Corley, Esq. Robert F. Sauer, Esq. Perkins Coie 607 Fourteenth Street, N.W. Washington, DC 20005-2011 RE: MUR 4023 Robert Schuster, Schuster for Congress and Robert R. Rose, Jr., as Treasurer

Dear Ms. Corley and Mr. Bauer:

On August 8, 1994, your clients were notified that the Federal Election Commission received a complaint from Jon Herschler alleging violations of certain sections of the Federal Election Campaign Act of 1971, as amended. At that time your clients were given a copy of the complaint and informed that a response to the complaint should be submitted within 15 days of receipt of the notification.

On October 8, 1994, the Commission received additional information from the complainant pertaining to the allegations in the complaint. Enclosed is a copy of this additional information. As this new information is considered an amendment to the original complaint, you are hereby afforded an additional 15 days in which to respond to the allegations. If you have any questions, please contact Joan Mctnery at (202) 219-3400. Sincerely,

Mary L. Taskar, Attorney Central Enforcement Docket

Enclosure

cc: James L. Applegate, Esq. PERKINS COlE OFF

A LAW PARtTNMS1IP INCLUDING PROIONAL CORPOR1ONS - F , i ...... , .'.I,I , 0 V...,,N . , . - ) ( 2 '1 j 2 3 'K (6' 11 I'v im 1(2021 4 ' 4 16011t/Jo ' e

JuDmi L. CORLr Y October 26, 1994 (202) 434-1622

Joan McEnery Office of the General Counsel Federal Election Commission 999 E Street, N.W. Washington, D.C. 20463

Re: MUR 4023 - Robert Schuster, Schuster for Congress and Robert R. Rose, Jr., as Treasurer

Dear Ms. McEnery:

This is in response to the Commission's letter dated October 11, 1994, transmitting to Respondents the additional allegations relating the above-referenced Matter Under Review. The new allegations are completely without merit. This complaint should be dismissed by the Commission.

General Election Cash-on-Hand

The supplemental complaint alleges that the Committee has spent general election funds in connection with the primary election. The complaint bases its allegation on the Committee's July 28, 1994 report, which showed only S 19,000 cash- on-hand, while over $22,500 had been contributed to the campaign for the general election.

The Committee maintained a separate bank account for the deposit of contributions designated for the general election and none of the funds were disbursed before the date of the primary. The apparent discrepancy was due to several accounting errors on the July 28 report, errors that have been corrected in amendments filed by the Committee on October 10, 1994. As the enclosed summary pages from the amended Pre-primary report shows, the Committee on July 27, 1994, had cash-on- hand of $46,439.97, including $24,450 in contributions for the general election.

[21913-0001 1)A942930 0051

I~* i I Kt T!I-A 1%1 0 0

October 26, !1994 Page 2

Unreported Campaien Worker

The supplemental complaint also alleges that the Committee failed to report payments to a campaign worker, Terral Smith, during June 1994. As the enclosed statement by Mr. Smith' demonstrates, the Committee did not hire Mr. Smith, nor did he begin working for the campaign, until July 7, 1994. Mr. Smith states he did not meet Mr. Herschler until after that date. Enclosed also is a copy of the contract signed between the campaign and Mr. Smith, dated July 7, 1994, including notations as to the payments made by the campaign to Mr. Smith under this contract. The payments have been reported by the Committee on its July Quarterly report.

As noted above, the new allegations by Mr. Herschler are baseless. The Commission should dismiss the complaint. Very truly yoturs,---

Judith L. Corley Counsel for Respondents enclosures

1We are submitted today a facsimile copy of the statement. The original wvillbe forwarded to the Commission as soon as itis received in this office.

[2i913-O I D.A942930 0051 10/'6/94 R T OF RECEIPTS AND DISBU1MENTS For An Authorized Committee (Summary Page)

I NAME OF COMMITTEE (infull)

SCHUSTER FOR CONGRESS a 2 FEC IDENTIFICATION NUMBER 00 ADDRESS (number ard street) Chec if different than previously reported.

I C00292789 InA 12 ct- 17rh qrppr qTE 110_ P. 0. Box 447 A. i CITY. STATE and ZIP CODE STATE'DISTRICT 3 IS THIS REPORT AN AMENDMENT? I- Chevenne, ',"y 82003-1203 WYOMING v YES NO 4. TYPE OF REPORT Aonl 45 Quarter~y ReDo Twelfth day report precec 'g - - (Type o! E eciron July 15 Ouarter'y Report election on -16- n the State of Wyomin

October 5 Quarterly Report Thrieth day report followng *me General Election on

."e State ot January 31 Yea, End Report n

July 31 Mid-Year Reporn (Non-elenon Year Oniy) Termination Repor-

This report contains - Election Runoff Election acVy for Primary Election General Election Soecial SUMMARY

- 7-1-945 or d mrougn 2 COLUMN A I COLUMN B 5- CoveingPeno 7 This Period Caleda Ye-to-Dat.

6 Net Contibutions otner than loans)

ia) Total Contributions (other than loansl (from Line e) ,5,482.44 229,336.6

(b) Total Controution RefuInds (from Une 2O(d)

i ct Net Contributions tother than loans) (subtract Line 61b) from 6(a) - ,432. 229, 336.36

Net Operating Exoendtures a) Total Operating Expenoitures (from Line I 7, ._ 1 64,271.10

,b Total Offsets to Ooerating Expenditures jfrom Line 14l

,f-, Net Ooeratrin Expendtures subtrac Line 7(b) from 7(aol 23' 989.6 i 464,271.40

8 Casn on Har'0 at Close of Reporting Period ,ror Line 27- 39 C. 7 For further information contact: eoeral Eecton Commssc- 9 Debts ano Obligations Owed TO the Commitee 999 E Street NW itemize al on Scriedule C andtor Schedule D1, 0 Debts and Obligations Owed BY the Committee Wasnington DC 20463 • temize all on Scmedule C and,!or Schedule D" - .25 Local"Toll Free 202-3763' 800-424-9530 23 t I cerify that I have examined this Report and to the best ct my Knowieoe arc Cet ,,e,s true. correc and complete. Type or Pnnt Name of Treasurer Roa t R.ose iDat Signat!ot-of T Date Oct. 7, 199-

NOTE WDmissotof e. rc mf ns.-brormaticn r"ay subjec, tme erscri s g" r-g :nis Report to the penalties o12 U.S.C §437g i W, FEC FORM 3

______(revised_____ 4187) 0 DETAILED SUM AY of Recei*t and Disbursement (Pg Z FEC FORM 3) Name ot Comm i (i full) Raw tComV* Penoo Schuster for Congress LRcEIrs Frm: 7-1-Q/,1 0 TO: 7--7_Q/.m 0 Toa Thi1 Period Caender YewT.Oaft 11. CCNTRIBUT;ONS Fomer man oasi FM: (a) IncmindualsPersons Ote Than Polifta Commmetg ii) !terzed (use Schedule A)...... i Wn)Unitemized .. .. (imTotal of co lbuwm trom ndiduajmls ...... pO O 7. (b ) P e ,tica P arty C om nt s ...... (c) Other POhflcal Commaftm ~(suchi as PACs)...... (d) The Canoidate ...... 4 non 10-00 (e)-OTAL CONTRIBUTIONS (offier than loans )(add 11 (a)(im-). tb), (c) and (d)) 7O6 i 06...... 12. TRANSFERS FROM OTHER AUTHORIZED COMMnLTEES.. 13. L.OANS.m

(a)Ma e orCumantebyte Car nk...... (b) AN Oe,Loan...... 0,000,00 2280.r.):.0. ' 00 ...... _. .] (c) TO TA L LOA N S (add 13(a) and (b)) . . .

14, OFFSETS TO OPERATING EXPENOITURES (RofwtL. Rebatu. O.r.-

I5. OTHER RECEIPTS (Dividn, Imnwea m) .. r... Interest 1a5

16. TOTAL RECEIPTS (add i(e). 12. 3(c). 14 aid 15) ...... 145,482.44 486,261.37 L DISBURSEMENTS

17. OPERATING EXPENDITURES . . .2.5.4.. .64.....4O 25 , 89 .16 4 4 2 1 4 18. TRANSFERS TO OTHER AUTHORIZED COMLW*TEES.

19. LOAN REPAYMENTS. (a) Of Loans Made or Guwrmed by t Camnddate ...... (b) Of AM Other Loam ...... "...... (c) TOTAL LOAN REPAYMENTS (add 19(a) and (b)) . ., 20. REFUNDS OF CONTRI1UTIONS TO. (a) InalsPersons Oa Than p cmmmim...... (b) Pootcat Party Comme ...... Wc Othef Potitical Camffe tsuc as PACs) ...... (d) TOTAL CONTRIBUTION REFUNDS (add 20(a). (b) and (c).

21. OTHER DISBURSEMENTS ......

22. TOTAL DISBURSEMENTS (ad 17., 8. 19(c), 20(d) and 21). .. . .989.. - .

IL CASH SUMMARY

23. CASH ON HAND AT BEGINNING OF REPORTING PERIOD ......

24. TOTAL RECER'S T-HIS PERIOD (from Line 16)...... $ 2-. SLTOTAL .acd Lre 23 ana Une 24) . . . S

26. TOTAL 2!SSURSE=.4ENTS ,HIS PERIOD (from Line 22)... $

7 2AS- CN -ANC AT LCSE 2F -14E REPORTING PERIOD (suora= Line 26 from 2.Z1 0 w0 DETAILED SUMMARY PAGE of Receipts and Disbursements (Page 2. FEC FORM 3)

11.CONTRIBUTIONS (OtrW than loans) FROM: a; Irc:viduais. Persons Other Than Polibcal Commtees lermzed (use Sctiedule A) Ia,

ill Unitentzec of from rndrviduals misTotat contnbutions 1 €. bi )::inCal Parry Committees cI O 'er Doltrcal Commrtees Isuc,5 as PACs)

,dT"he Can~date 1e .e,s AL CONTRIBUTIONS (otter than loans l(add 1 (a)(4). (b). (c) and -?S0 1)(1 I 7,- n-o 12 TRANSFERS FRCM OTHER AUTHORIZED COMMITTEES. 12

" 13 L..OANS- Ila fa) Mace or Guaranteed by the Ca0didate (b) Alt Orer Loans . *c "TAL .OANS (amd 13(a) and (b) .. . "S t ,4 OFFSETS TC OPERATING EXPENDITURES (Rfuntds. Rebates. eMl) i 3 OTiER RECEIPTS (DAmOenrsLInteres etc.

16 TOTAL RECE!PTS Ad 1E WE. 12.13(c), 14 and 15) . . ._._._. .

27. OPERATING EXPENDITURES 17

Ia TRANSFERS TO OTHER AUTHORIZED C adIaTTEES . .a .

19.LOAN REPAYMENTS S .,a) Of Loans Made or Guaranteed by the Ca,,xW~a .e mitee tii arr Co iic "bi C41A3l Omrw Loans ...... ,c2D,!TALDLAN REPAYMENTS (add 19(a) and 2) 20. ;CEUNS OF CONTRIBUTIONS TO R. ,,ai IrtNoduats.,Persons Other Than Politica Coffttf 20b .b)P-imcaj Party Comrnmees ...... 20tc; ,,c)Cvi.rer Pofticat Commnees (,such as PACs). 20. -TAL CNTRIBUTICON REFUNDSe d 20(a) (V ar$ (c)) . 21 OTI-,E '.ISBUI SEMENTS. . . . .

22 TOTAL :)!S lL;SEMENTS (aoc ,T79 8. 19(c). 20(d) and 21)

Ill. CASH SUMMARY

-43 CASi- _-N ,-ANDAT BEGINNING OF REPORTING PERIOD ,.. .

2-1 -CT&L -"E,-_-!---S7IS PE.tCO !from Lne 16,

25 SE,2CA_ acc'-r-e23an Lne24 "

-CAT. -SBL=SEMENTS THIS PERICD (from Lne 22) S

PERIOD (subtract Line 26 from 251. $ 2CAS- -A '7,CLOSE OF THE REPORTING ii 0 . 01 e e - - To: ' Bob Schuster IMPLO ,~ From: Terral Smith Re: F.E.C. Complaint #4023 from John Herschler Date: October 14, 1994

I Terral Smith pledge that the following statement is a true and accurate description of my employment status with the Schuster for Congress Campaign and my conversations with John Herschler about m-y employmernt.

was hI:red as i pclica1 co.sltant by Bob Schuster to aid in hIs primary elec-:on campaign. was contracted to work from July 7, 1994 till the end of the campaign. I was to receive pay for my time in Wyoming actually working on the campaign. I first arrived in "Wyoming to work on the campaign on July 7, 1994. I did not perform any c ompensable work for the campaign prior to that date.

My first contac- with John Herschler was on or about the 9th of July, 1994. 1 met him at the staging area for the Flaming Gorge Days Parade, at the high school parking lot, in Green River, Wyoming. I do remember discussing the Congressional campaign with Herschler at that time. To my knowledge, I had never met Mr. Herschler before that time and I did not discuss my employment status with Mr. Herschler prior to that day.

Date OCT-14-1994O 10!13 * e P.02 REXKO ANDQU O F AGREEME T

ROILRT P. SOUSTEU vithme to retai TURAL W(ITH to serve as a

Ftel.d Representative for the SCHUSTER FOR CONGRESS campaign on a imonth-to- mouth basi o the follevLng termst

1I,200.00/per mouth pro-rated for the month of July 1994;

and

$5,200_OO/per month thereafter for the balance of the capaignu.

You will ta :onsiderad a an Independent ccntractor providing agrood-upon servi.eu8 an4 not a:n employee.

You will be reimbursed for actua- out-of-pocket expenses, for whicc you vill provide ItaizeS invoices of rhobe expenses, and reported on the "Request far Reibursement" form.

This Agreemnt *hall be offective fro= July 7. 1994 until the emIpletion o! th eampaign.

77 ~j$ = ROBERT P. SCEUSTER

"S80,Oplus haaed prr teleon ei.ssicred~n83'4 betwein RiP Schuster and 7. Smith to a one-time figure of $181,o plu anesinure Cn8/1-4

47'~ -

• z -I _ / * . *w'3I~- ~:f.I~; - .;y,35L I=,-f ,6:7

J~74~8- ~ - --A4 / 2 31 - # V - /D7'55/ BEFORE THE FEDERAL ELECTION ... s -.f 1.'.5 In 'i- ) SENSITIVE In the Matter of SE STV ) Enforcement Priority

GENERAL COUNSEL'S MONTHLY REPORT

I. INTRODUCTION

This report is the General Counsel's Monthly Report to

recommend that the Commission no longer pursue the identified

lower priority and stale cases under the Enforcement Priority

System.

II. CASES RECOMMENDED FOR CLOSING

A. Cases Not Warranting Further Pursuit Relative to Other Cases Pending Before the Commission

A critical component of the Priority System is identifying

those pending cases that do not warrant the further expenditure

of resources. Each incoming matter is evaluated using

Commission-approved criteria and cases that, based on their

rating, do not warrant pursuit relative to other pending cases are placed in this category. By closing such cases, the Commission is able to use its limited resources to focus on more

important cases.

Having evaluated incoming matters, this Office has

identified 22 cases which do not warrant further pursuit

1 relative to the other pending cases. A short description of

1. These matters are: PM 305; MUR 3976; MUR 4023; MUR 4026; MUR 4031; MUR 4032; MUR 4036; MUR 4050; MUR 4051; MUR 4052; MUR 4055; MUR 4056; MUR 4058; MUR 4063; MUR 4068; MUR 4072; MUR 4073; MUR 4075; MUR 4078; MUR 4081; MUR 4082; and MUR 4083. 0 0 -2- each case and the factors leading to assignment of a relatively low priority and consequent recommendation not to pursue each case is attached to this report. See Attachments 1-22. For the Commission's convenience, the responses to the complaints for the externally-generated matters and the referral for the internally-generated matter are available in the Commission Secretary's office. B. Stale Cases Investigations are severely impeded and require relatively more resources when the activity and evidence are old. Consequently, the office of General Counsel recommends that the Commission focus its efforts on cases involving more recent activity. Such efforts will also generate more impact on the current electoral process and are a more efficient allocation of our limited resources. To this end, this Office has identified 9 cases that have remained inactive and assigned to the Central Enforcement Docket for one year and which it believes do not warrant further investment of significant Commission resources. 2

Since the recommendation not to pursue the identified cases is based on staleness, this office has not prepared separate narratives for these cases. However, for the Commission's, convenience, the responses to the complaints for the externally-generated matters and the referrals for the

internally-generated matters are also available in the

2. These matters are: MUR 3828; MUR 3829; RAD 93L-73; RAD 93L-75; RAD 93L-78; RAD 93L-83; RAD 93L-84; RAD 93L-88; and RAD 93L-91. -3- Commission Secretary's office.

This Office recommends that the Commission exercise its prosecutorial discretion and no longer pursue the cases listed below effective February 21, 1995. By closing the cases effective February 21, 1995, CED and the Legal Review Team will respectively have the additional time necessary for preparing the closing letters and the case files for the public record for these cases. 111. RECOMMENDATIONS

A. Decline to open a MUR and close the file effective February 21, 1995 in the following matters:

1) RAD 93L-73 2) RAD 93L-75 3) RAD 93L-78 C 4) RAD 93L-83 5) RAD 93L-84 6) RAD 93L-88 7) RAD 93L-91

B. Decline to open a MUR, close the file effective February 21, 1995 and approve the appropriate letter in PM 305. -4-

C. Take no action, close the file effective February 21, 1995, and approve the appropriate letter in the following matters:

1) MUR 3828 2) MUR 3829 3) MUR 3976 4) MUR 4023 5) MUR 4026 6) MUR 4031 7) MUR 4032 8) MUR 4036 9) MUR 4050 10) MUR 4051 11) MUR 4052 12) MUR 4055 13) MUR 4056 14) MUR 4058 15) MUR 4063 16) MUR 4068 17) MUR 4072 18) MUR 4073 19) MUR 4075 20) MUR 4078 21) MUR 4081 22) MUR 4082 23) MUR 4083

D\It

General Counsel BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of ) Enforcement Priority )

AMENDED CERTIFICATION

I, Marjorie W. Emmons, Secretary of the Federal Election Commission, do hereby certify that the Commission decided by a vote of 6-0 on February 16, 1995, to take the following actions with respect to the General Counsel's February 13, 1995 report on enforcement priority:

A. Decline to open a MUR and close the file effective February 21, 1995 in the C following matters: 1) RAD 93L-73 2) RAD 93L-83 3) RAD 93L-88

B. Decline to open a MUR, close the file effective February 21, 1995 and approve the appropriate letter in PM 305.

C. Take no action, close the file effective February 21, 1995, and approve the appropriate letter in the following matters:

1) MUR 3829 2) MUR 4023 3) MUR 4036

(continued) Federal Election Commission Page 2 Certification: Enforcement Priority February 16, 1995

4) MUR 4050 5) MUR 4051 6) MUR 4052 7) MUR 4055 8) MUR 4063 9) MUR 4072 10) MUR 4073 11) MUR 4075 12) MUR 4078 13) MUR 4081 14) MUR 4082 15) MUR 3976

Commissioners Aikens, Elliott, McDonald, McGarry,

Potter, and Thomas voted affirmatively for the decision.

Attest:

Date craryof t mmionsso iucretary of the Commission FEDERAL ELECTION COMMISSION WASHINCTON DC 20464

February 27, 1995 Jon Herschler P.O. Box 368 Big Horn, WY 82833

RE: RUR 4023 Dear Mr. Herschler: On August 3, 1994, the Federal your complaint Election Commission received alleging certain violations of Election Campaign Act the Federal of 1971, as amended ('the Act*). After considering the Commission has circumstances of this matter, determined to exercise its prosecutorial the discretion and to take no action attached against the respondents. See narrative. Accordingly, the in this matter Commission closed itsTTle on February 21, 1995. This part of matter will become the public record within 30 days. The Act allows a complainant to seek Judicial Commission's dismissal review of the of this action. See 2 U.S.C. S 437g(a)(8).

Sincerely,

rO T a. Mary L. Taksar Attorney

Attachment Narrative HUR 4023 SCRUSTER FRo COUGMSS Schuster Jon uerschler filed a complaint alleging that Robert manner after failed to register as a candidate in a timely exploratory he exceeded the $5,000 threshold and that his exemption. activities did not qualify for the testing-the-waters failed to report The complaint also alleges that the Committee and the $16,500 in receipts to cover the exploratory activities disbursement for a Committee failed to report an estimated $15,000 poll. alleges that In an amendment to the complaint, Mr. Herschler connection with the the Committee spent general election funds in report payments to a primary election and the Committee failed to campaign worker.

In response to the complaint, the Schuster for Congress for the Committee states that Mr. Schuster's activities qualified testing-the-waters exemption because: he paid all exploratory public expenses from his own personal funds; he did not make announced he announcements declaring himself a candidate until he his was seeking nomination to the House of Representatives; of time; exploratory activities were not for a protracted period his activities were concluded five months before the primary he election- and he took no steps to qualify for the ballot until had announced his intention to run for office. The Committee on indicates that it reported all testing-the-waters disbursements payments its first report, its July Quarterly Report, except for knowledge to one individual which were subsequently reported upon of the omission. According to the Committee, the July Quarterly and Report disclosed exploratory activities for the Senatorial the Gubernatorial races and the Pre-Primary Report disclosed it disbursement for the poll. The Committee also states that corrected the other reporting problems with amended reports.

In response to the amendment, the Committee indicates that the allegation regarding spending general election funds in connection with the primary election was based on a cash-on-hand discrepancy which was due to accounting errors on the July Quarterly Report, errors which were corrected. The Committee during states that it did not report payments to a campaign worker June 1994 because the worker was not hired until July 1994.

This matter involves less significant issues relative to other issues pending before the Commission and inexperienced players. Remedial action has been taken. a S

FEDERAL ELECTION COMMISSION WASHINGTON. DC 20,*~3 February 27, 1995 Judith L. Corley, Esq. Robert F. Bauer, Esq. Perkins Cole 607 Fourteenth Street, N.W. Washington, D.C. 20005-2011 RE: MUR 4023 Robert Schuster, Schuster for Congress, and Robert R. Rose, Jr., Treasurer

Dear Ms. Corley and Mr. Bauer: On August 8, 1994, the Federal Election Commission notified your clients, Robert Schuster, Schuster for Congress, and Robert R. Rose, Jr., as treasurer, of a complaint alleging certain violations of the Federal Election Campaign Act of 1971, as amended. A copy of the complaint was enclosed with that notification. After considering the circumstances of this matter, the Commission has determined to exercise its prosecutorial discretion and to take no action against your clients. See attached narrative. Accordingly, the Commission closed -ts file in this matter on February 21, 1995. The confidentiality provisions of 2 U.S.C. 5 437g(a)(12) no longer apply and this matter is now public. In addition, although the complete file must be placed on the public record within 30 days, this could occur at any time following certification of the Commission's vote. If you wish to submit any factual or legal materials to appear on the public record, please do so as soon as possible. While the file may be placed on the public record prior to receipt of your additional materials, any permissible submissions will be added to the public record when received. If you have any questions, please contact Alva E. Smith at (202) 219-3400. Sincerely, •trcV a. Tc4DO.. Mary L. Taksar Attorney Attachment Narrative cc: James L. Applegate, Esq. MR 4023 8CRUBTRZ roa CONOR233

Jon Herschler filed a complaint alleging that Robert Schuster failed to register as a candidate in a timely manner after he exceeded the $5,000 threshold and that his exploratory activities did not qualify for the testing-the-waters exemption. The complaint also alleges that the Committee failed to report in receipts to cover the exploratory activities and the $16,500 for a Committee failed to report an estimated $15,000 disbursement poll. alleges that In an amendment to the complaint, Mr. Herschler with the Committee spent general election funds in connection the to a primary election and the Committee failed to report payments campaign worker.

In response to the complaint, the Schuster for Congress for the Committee states that Mr. Schuster's activities qualified testing-the-waters exemption because: he paid all exploratory expenses from his own personal funds; he did not make public he announcements declaring himself a candidate until he announced was seeking nomination to the House of Representatives; his exploratory activities were not for a protracted period of time; his activities were concluded five months before the primary he election; and he took no steps to qualify for the ballot until had announced his intention to run for office. The Committee indicates that it reported all testing-the-waters disbursements on its first report, its July Quarterly Report, except for payments to one individual which were subsequently reported upon knowledge of the omission. According to the Committee, the July Quarterly Report disclosed exploratory activities for the Senatorial and Gubernatorial races and the Pre-Primary Report disclosed the disbursement for the poll. The Committee also states that it corrected the other reporting problems with amended reports.

In response to the amendment, the Committee indicates that the allegation regarding spending general election funds in connection with the primary election was based on a cash-on-hand discrepancy which was due to accounting errors on the July Quarterly Report, errors which were corrected. The Committee states that it did not report payments to a campaign worker during June 1994 because the worker was not hired until July 1994.

This matter involves less significant issues relative to other issues pending before the Commission and inexperienced players. Remedial action has been taken. S • FEDERAL ELECTION COMMISSION %KASNINCTON OC ,0463

THIS ISTHEEP OFUR# I

DATE FI YED -,6-"S- CN'ERA NO. *IL CA- kni//