ADR program update

The Commission recently resolved six additional cases under the Alternative Dispute Resolution (ADR) program. The respondents, the alleged violations of the Federal Election Campaign Act (the Act) and final disposition of the cases are listed below.

1. The Commission dismissed the matter of Dollars for Democrats, Ann Fishman, treasurer, regarding failure to report receipts. The respondents acknowledged that the receipts were not included in their original 2004 12-Day Pre-General Election report. Once they discovered the error, they amended the report to disclose the additional receipts. They explained that they did not make contributions or expenditures on behalf of federal candidates during the reporting period. Since the committee made no contributions or expenditures during the reporting period, they were not required to file the 12-Day Pre-General Report. Unlike quarterly or monthly reports, which must be filed regardless of activity, pre-election reports are required only if the committee makes contributions or expenditures in connection with the election during the applicable period. In this case, since the committee chose to file the report, it would have been preferable if they had included the receipts. (ADR 278*)
2. The Commission reached an agreement with the Idaho Republican Party, Andrew Fales, treasurer, regarding failure to provide accurate contributor information and failure to employ best efforts to obtain such information. The respondents contended that committee staff turnover, irregular employment of professional staff to assist the committee and the lack of appropriate records led to the violations. Since the violations were brought to the committee’s attention, the committee has hired professional staff and implemented new procedures to ensure that records are maintained and that follow-up letters are sent when information is missing. The respondents agreed to establish new internal operating procedures, contact the contributors to obtain the required employment and occupation information that was missing from the 2002 election cycle, file amended reports disclosing such information and pay a $10,000 civil penalty. (ADR 284*)
3. The Commission reached an agreement with MOVEON.ORG Political Action, Wes Boyd, treasurer, regarding failure to forward earmarked contributions within 10 days after initial receipt. The respondents acknowledged the need to establish a back-up procedure to handle disbursements of earmarked contributions in the event that committee personnel are unavailable to do so in a timely manner. Respondents have contracted a professional accounting firm and agreed to maintain the new back-up procedures, attend an FEC seminar and to pay a $2,000 civil penalty. (ADR 290*)
4. The Commission has reached an agreement with Pennsylvania Medical Society Political Action Committee Federal, Larry Light, treasurer, regarding inaccurate reporting of receipts and disbursements. The respondents acknowledge inadvertent errors in disclosing the Committee’s financial activity on the 2003 Year-end report. They state that the errors occurred during the transfer of data to FECFile. The committee filed an amended report to disclose additional receipts and disbursements. They agreed to establish new procedures to provide for regular pre-filing review of all FEC reports, maintain a guidebook on compliance with the requirements of the Act, send two members to attend an FEC seminar and pay a $9,000 civil penalty. (ADR 294*)
5. The Commission has reached an agreement with Progressive Majority, Thomas C. Matzzie, treasurer, regarding failure to accurately disclose receipts and disbursements. The respondents explained that the omissions from the committee’s 2004 30-Day Post General Report were inadvertent. They have amended their reports and have agreed to proceed with their request to terminate the committee and pay a $4,500 civil penalty. (ADR 288*)
6. The Commission has reached an agreement with W.R. Timken, Jr. regarding his excessive contributions during 2001. Mr. Timken discovered he had exceeded the $25,000 annual aggregate limit on individual contributions allowable at the time. He sought and obtained refunds of excessive contributions and agreed to disgorge and forward $6,999 to the U.S. Treasury. (ADR 292)

*This case was internally generated.