Presidential primary and general election candidates; public financing: Electronic filing of reports,

[Federal Register: June 17, 1998 (Volume 63, Number 116)]

[Proposed Rules]

[Page 33012-33014]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr17jn98-18]

FEDERAL ELECTION COMMISSION

11 CFR Parts 9003 and 9033

[Notice 1998-11]

Electronic Filing of Reports by Publicly Financed Presidential Primary and General Election Candidates

AGENCY:Federal Election Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY:The Federal Election Commission requests comments on proposed changes to its regulations to address the electronic filing of reports by publicly financed Presidential primary and general election candidates. The proposed rules would specify that if Presidential candidates and their authorized committees have computerized their campaign finance records, they must agree to participate in the Commission's recently established electronic filing program as a condition of voluntarily accepting federal funding. These regulations would implement the provisions of the Presidential Election Campaign Fund Act (``Fund Act'') and the Presidential Primary Matching Payment Account Act (``Matching Payment Act''), which establish eligibility requirements for Presidential candidates seeking public financing, as well as Public Law 104-97, which amended the reporting provisions of the Federal Election Campaign Act of 1971 (``FECA''). No final decisions have been made by the Commission on the proposed revisions in this Notice. Further information is provided in the supplementary information which follows.

DATES: Comments must be received on or before July 17, 1998.

ADDRESSES: All comments should be addressed to Ms. Susan E. Propper, Assistant General Counsel, and must be submitted in either written or electronic form. Written comments should be sent

[[Page 33013]]

to the Federal Election Commission, 999 E Street, N.W., Washington, D.C. 20463. Faxed comments should be sent to (202) 219-3923, with printed copy follow up. Electronic mail comments should be sent to elecfiling@fec.gov. Commenters sending comments by electronic mail should include their full name and postal service address within the text of their comments. Electronic comments that do not contain the full name, electronic mail address and postal service address of the commenter will not be considered.

FOR FURTHER INFORMATION CONTACT: Ms. Susan E. Propper, Assistant General Counsel, or Ms. Rosemary C. Smith, Senior Attorney, at (202) 694-1650 or toll free (800) 424-9530.

SUPPLEMENTARY INFORMATION: Recently, the Federal Election Commission implemented a system permitting political committees and other persons to file reports of campaign finance activity via computer diskettes and direct transmission of electronic data. See Explanation and Justification of 11 CFR 104.18, 61 FR 42371 (Aug. 15, 1996). The Commission was required to make the electronic filing option available for all ``report[s], designation[s], or statement[s] required by this Act to be filedwith the Commission.'' Public Law 104-79, 109 Stat. 791 (1995), (adding 2 U.S.C. 434(a)(11)). While the Commission encourages all political committees and other persons to file their reports electronically, no committee or person is required to do so. Under Public Law 104-79, participation in the Commission's electronic filing program is voluntary. The goals of the new system include enhancement of on-line access to reports on file with the Commission, reduction of paper filing and manual processing, and increased efficiency and cost- effective methods of operation for the filers and for the Commission.

With the advent of the first Presidential election cycle since the implementation of the new electronic filing system, the question has arisen as to whether it would be advisable to modify the Commission's regulations at 11 CFR 9003.1 and 9033.1 to provide that certain Presidential committees must agree to file their campaign finance reports electronically as a condition of receiving public funding. Currently, the authorized committees of presidential candidates, like other political committees, have the option of submitting electronic reports should they wish to do so. See 11 CFR 104.18. The proposed changes to the candidate agreement regulations which follow would establish electronic filing as an additional prerequisite for the receipt of public funding. Please, note, however, this new language would only apply to those primary and general election candidate committees that decide to rely upon a computer system to maintain and use their campaign finance data. Thus, the draft rules would not burden campaign committees with new requirements if they are not computerized.

Electronic filing of Presidential committees' reports is intended to save a substantial amount of time and Commission resources that would otherwise be devoted to inputting these reports into the FEC's database. Although the number of political committees affected by the requirement would be relatively small, their reports can be voluminous given the substantial number of contributions and expenditures listed in each report. Thus, these proposed changes to the candidate agreement rules are expected to speed the reporting of campaign finance information and enhance public disclosure.

Previously, the Commission issued technical specifications for reports filedelectronically in its Electronic Filing Specification Requirements (EFSR), which is available free of charge. The EFSR contains technical specifications, including file requirements, for reports filedby Presidential campaign committees. However, the electronic filing software available from the FEC at no charge will not generate the forms used by Presidential committees. The Commission's Data System Development Division would work with committees to assist them in generating the proper output. Any additional costs entailed may be treated and paid for like any other compliance cost pursuant to 11 CFR 9003.3(a)(2)(i)(B) and (F) and 9035.1(c)(1) if incurred after January 1, 1999. The Commission notes that there are a number of differences between the specifications contained in the EFSR and those found in the Computerized Magnetic Media Requirements (CMMR) used by publicly financed committees to submit financial data for the Commission's audit. These differences are necessitated, in part, by the different purposes for which each of these databases are used. Nevertheless, comments are requested as to ways in which these two standards could be better synchronized.

The proposed revisions to the candidate agreement regulations do not require electronic filing for statements of candidacy or statements of organization. While Presidential candidates and their authorized committees may file these statements electronically, if they wish, these forms have not been included in the free software available from the FEC. Also please note that the candidate agreements, themselves, would not be submitted in electronic form under the changes to 11 CFR 9003.1 and 9033.1 which follow.

Congress intended the new system of electronic filing to be voluntary. 141 Cong. Rec. H 12140-41 (daily ed. Nov. 13, 1995) (statements of Reps. Thomas, Hoyer, Fazio and Livingston). The Commission believes that a candidate's agreement to file campaign finance reports electronically in exchange for public funding is a voluntary decision materially indistinguishable from the candidate's voluntary decision to abide by the spending limits in exchange for federal funds. For this reason, it appears that the Commission has the authority to promulgate the regulation set forth below. Nevertheless, commenters are encouraged to express their views on whether the rules set out in this notice are within the scope of the Commission's authority under the Fund Act, the Matching Payment Act, the FECA, and Public Law 104-79.

The Commission welcomes comments on the foregoing proposed amendments to the candidate agreement regulations. Other aspects of the public financing process will be addressed separately in a forthcoming Notice of Proposed Rulemaking. No final decision has been made by the Commission concerning the proposals contained in this notice.

Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory Flexibility Act)

These proposed rules will not, if promulgated, have a significant economic impact on a substantial number of small entities. The basis for this certification is that very few small entities will be affected by these proposed rules, and the cost is not expected to be significant. Further, any small entities affected have voluntarily chosen to receive public funding and to comply with the requirements of the Presidential Election Campaign Fund Act or the Presidential Primary Matching Payment Account Act.

List of Subjects in 11 CFR Parts 9003 and 9033

Campaign funds, Elections, Political candidates.

For the reasons set out in the preamble, it is proposed to amend Subchapters E and F of Chapter I of Title 11 of the Code of Federal Regulations as follows:

[[Page 33014]]

PART 9003--ELIGIBILITY FOR PAYMENTS

  1. The authority citation for part 9003 would continue to read as follows:

    Authority: 26 U.S.C. 9003 and 9009(b).

  2. In Sec. 9003.1, paragraph (b) introductory text is republished and new paragraph (b)(11) would be added to read as follows:

    Sec. 9003.1 Candidate and committee agreements.

    * * * * *

    (b) Conditions. The candidates shall: * * * * *

    (11) Agree that they and their authorized committee(s) shall file all reports with the Commission in an electronic format that meets the requirements of 11 CFR 104.18 if the candidate or the candidate's authorized committee(s) maintain or use computerized information containing any of the information described in 11 CFR 104.3.

    PART 9033--ELIGIBILITY FOR PAYMENTS

  3. The authority citation for Part 9033 would continue to read as follows:

    Authority: 26 U.S.C. 9003(e), 9033 and 9039(b).

  4. In section 9033.1, paragraph (b) introductory text is republished and new paragraph (b)(13) would be added to read as follows:

    Sec. 9033.1 Candidate and committee agreements.

    * * * * *

    (b) Conditions. The candidate shall agree that: * * * * *

    (13) The candidate and the candidate's authorized committee(s) will file all reports with the Commission in an electronic format that meets the requirements of 11 CFR 104.18 if the candidate or the candidate's authorized committee(s) maintain or use computerized information containing any of the information described in 11 CFR 104.3.

    Dated: June 11, 1998. Joan D. Aikens, Chairman, Federal Election Commission.

    [FR Doc. 98-16006Filed6-16-98; 8:45 am]

    BILLING CODE 6715-01-P

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