FEDERAL ELECTION COMMISSION JUly 1992 999E Street NW Washington DC 20463 Volume 18, Nurrber7 situation could not include any points for local offices. The new rules, based on Advisory Opinion 1991-25, now authorize commdttees to include nonfederal point(s) in their ratios if partisan local candi­ NEW ALLOCATlm REGULATI<:::fiS dates are expected on the ballot "Ln any EFFECTIVE JUNE 18 regularly scheduled election during the The revised regulations on the alloca­ two-year congressional cycle." tion of federal and nonfederal expenses (continued) became effective on June 18, ~992, as announced in the Federal Register of that date.V TWo changes to the allocation rules allow state and local party committees to 1 IUDnATIWS: Allocation Rules Effective revise their ballot composition ratios and apply the revised ratios retroactively to 2 PUBLICATICfiS: 1991 Annual Report certain joint federal/nonfederal expenses paid since January 1, 1991, the start of the current allocation cycle. However, the deadline for making retroactive realloca­ PARTY ACTIVITIES tions is July 18, 1992. 3 Retroactive Reallocation of Revised Two other changes are not retroactively Ballot composition Ratio effective. These changes apply to all committees subject to the allocation rules, PUBLIC FUND~ including separate segregated funds and 6 June Matching Fund Payments nonconnected committees. 6 Final Repayment, 1988 Gephardt Cormnittee The revisions are briefly described below. 7 NNISC1l1Y OPINIOOS Changes to Ballot Composition l0.tios of canrr CASES State and LoCal Party CoDmittees 8 FEe v , Wright 9 White v. FEC New Nonfederal Point. Under the first 10 New Litigation change, all state and local party comRdt­ tees may include an additional nonfederal STATISTICS point in their ballot composition ratios. 10 Candidate and party Committees 11 CFR l06.5(d)(1)(ii). lWDITS LoCal office Point When Local and state 12 List of Final Audit Reports Released Officers Elected in Different Years. The second change applies only to state and <XXWLIANCE local party committees located in states 12 Nonfilers wherg state officers are elected in even 12 MURs Released to Public years while partisan local officers are elected only in odd years. under the 14 FUBLIC APPFJ\RAOCES former rules, party committees in this 15 INDEX. lThe final rules, and their explanation and REPORl'S justification, were published in the March 16 July 15 Reporting waivers 13, 1992, Federal Register (57 FR 8990). A 16 Alaska primary Date Changed detailed summary of the revisions appeared in the April 1992 Record. July 1992 FEDERAL ELECTION COMMISSION Volume 18~ Number 7 11 CFR 106.5(d)(1){ii). (Note that state party committees may add only one FEe ISSUES 19911lNNUAL REPCm' nonfederal point for local offices on the On June 1, the FEC published its Pallot, while local party committees may Aru'lual Report for 1991, a review of add a maxillll.lllt of two potnts.) the agency's activities during that • year. The report opens with a discus­ Retroactive Reallocation. Using a sion of the predicted shortfall of revised ballot composition ratio based on public funds needed for the Presiden­ the new rules, state and local party tial elections and the agency's comli.ttees have the opportunity to reallo­ efforbs to educate the public on the cate adrndnistrative and generic voter drive $1 tax checkoff, the sale source of cost.s paid since January 1, 1991. However, Presidential public funding. Legal committees will have only until July 18 to issues addressed by the Commission in reallocate these expenses and make correc­ 1991 ace also eXamined, including tive transfers from their nanfederal C01Jrt rulings on corporate communica­ ~ccounts to their federal accounts. see tions and the use of soft money in article on page 3 explaining how to calcu­ federal elections. Tables and graphs late and report these adjustments. provide data on the financial activity of political committees as well as the Olanges '!hat Apply to All camnittees FEe's operation and budget. Finally, As noted above, the following changes the report includes the agency's sug­ to the allocation rules are not retro­ gestions for changes in the campaign actively effective: finance law, which were presented to o Committees now have a 70-day window the president and Congress earlier (expanded from 40 days) to transfer funds this year. from the nonfederal account to the feder­ To order a free copy of Annual al account to pay for the nonfederal Report 1991, call 800/424-9530 or share of a joint expense. (The window 202/219-3420. begins 10 days before the federal account pays the vendor and ends 60 days after the payment.) 11 CFR 106.5(g)(2)(ii)(8) and l06.6(e)(2)(ii)(B). o committees now have a 60-day period following a fundraisifl(j program or event FEDERAL l\OOlSTER lO'lICES to adjust the fundraising ratio and to Copies of Federal Register notices transfer funds between the federal and are available from the PUblic Records nonfederal accounts to reflect the Office. - revised allocation. (When reporting these adjustment transfers, committees 1992-8 must enter the date of the event, a new 11 CFR Part 200: Administrative Regu­ requirement.) 11 CFR 106.5(f) and lations (Petitions for Rulemaking); IOG.6(d). Notice of proposed Rulemaking (57 FR 20430, May 13, 1992) Federal Election Carrmission, 999 E Street, t'M'. washington, DC 20463 800/424-9530 202;219-3420 202/219-3336 (TDD) Joan D. Aikens, Chairman Walter J. Stewart, secretary of the Senate, SCott E. 'ltlomas, Vice Chai rman Ex Officio commdssioner Lee Mn Elliott Donnald IC Anderson, Clerk Qf the House of Danny L. I"IeDona1d Representatives, EX Officio commdssioner John warren !'ICGarry Trevor Potter 2 July 1992 FEDERAL ELECTION COMMISSION Volume 18, Number 7 2. Determine 'lbtal Administrative,IVoter Ddve Payments to Be Reallocated PARTY AC1rlVITIES Next, determine the total amount paid by the federal and nonfederal accounts for administrative and generic voter drive • RE'mOP.CTIVE APPLlCATIOO OF REVISED BALLOr expenses from January 1, 1991, through the e::atPOSITIC6 RATI.O current date. You should rely on canmittee Under the new allocation regulations, records, although your committee's previous $tate and local party committees may reports may provide some help. include an extra nonfederal point in their o 1991 TotaL Determine the total amount ballot composition ratios, i.e., the ratio of the c~ttee's administrative)Voter used to allocate joint federal and non­ drive payments for 1991. The Schedule H4 federal adrrdnistrative and generic voter filed with the cornmi ttee's year-end drive expenses. Additionally, certain report for 1991 may be a help. The last state and local party committees--those "event year-to-date" entry for an located in states where local officers are administrative/voter drive payment should elected only in odd years while statewide show the total payments for 1991. officers are elected in even years--may o 1992 Total. Now determine the total further adjust the ratio to include local amount of the committee'S administrative/ partisan offices on the ballot. (See voter drive payments from the beginninq article on page 1.) of 1992 through the current date. The committees now have a limited oppor­ schedule H4 filed with the committee's tunity-until July l8--to apply the last report should show total payments adjusted ballot composition ratio retro­ reported thus far in 1992. The conunit­ actively to payments made since January 1, tee's records should provide the amount 1991, and to make adjustment transfers from paid for administrative/voter drive their nonfederal accounts to their federal expenses from the closing date of the accounts. last report through the cur.ent date. This article explains how to calculate o lldd the Totals. Add the 1991 and 1992 and report retroactive reallocations and totals to arrive at the total amount of transfers. It is based on Advisory administrative/Voter drive payments that Opinions 1991-25 and 1991-15. In the "may be reallocated under the revised examples used here, a state party committee ratio. revises its ratio to include the additional ExaJIIple. The state party commi ttee nonfederal point. The same method should found that its 1991 year-to-ctate total for be used by those committees located in adrndnistrative/voter drive payments was states which elect local offices in odd $85,000. years and state officers in even yaars.ll The committee's most recent report (the 1992 second quarter report covering through 1. Calculate Revised Ratio .June 30) shows a year-to-datE total of First, calculate the revised ratio. $10,000. Comttee records from July 1 ExaJuple. The old ratio used by a state throuqh the current date (July 15) indicate party committee for the 1991-92 election that the committ~e paid another $5,000 in cycle was 28 percent federal/72 percent admdnistrative/Voter drive expenses in nonfederal (2 federal points and 5 1992. The current year-to-date total for nonfederal points). wi th the addition of 1992 is therefore $15,000 ($10,000 plus another nonfederal point, the new ratio is $5, 000). 25 percent federalj75 percent nonfederal (2 Thus, th~ total amount of administra­ federal points and 6 nonfederal points). tive/voter drive payments that may be reallocated is $100,000 ($85,000 plus $15,(00). 3. Determine Federal and Nonfederal A100Unts ~ith respect to these committees, state under old Ratio committees may now add one nonfederal point Apply the old ratio to the total for local partisan offices on the ballot in calculated above. This will give you the odd years, and local committees may add a amount paid by each account. maximum of two nonfederal points for such Example. Applying the old ratio (28 offices.