This file contains archived live captions of the open meeting of the Federal Election Commission held on JUNE 30, 2016.  This file is not a transcript of the meeting, and it has not been reviewed for accuracy or approved by the Federal Election Commission.

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>> We will not be needing to address that.
>> Second amendment is proposed statement of policy regarding closed enforcement files, that's still also undergoing internal agency discussion.  We hope to bring that back up at the next meeting we have in July.  Perhaps we can resolve it at that time.

Third item on the agenda which is revision to forms, this encompasses three different developments.  First of which is initiative that FEC is updating electronic file system.  Vast majority of reports filed with commission are done so by means of electronic filing.  There's an effort on the way to update and modernize that system.  Second development is upgrade of paper filing automation system.  Still a number of committees and candidates that do file by paper most notably senate candidates.  Regarding getting committees to file electronically.  We have a certain amount of paper filers.  Efforts that commission has been undertaking to more efficiently and timely process those reports so that data can be readily available to public as electronically filed reports.

Third developments are specific changes to commission's forms to address specificÊ everything is minor as typos to more substantive changes.  Those changes are part of the agenda documents that were on theÊ that are part of the agenda today.  Agenda document 1626A.  We will not vote on those changes.  We wanted to make those available give public twoweek comment period to look at those proposed changes to see if they have questions, concerns or any thoughts on those forms.  I believe in the digest that commission will be sending out this weekend, we will include proper email address for submitting comments if anyone wishes to do soÊ to do so.  What address would we be having interested individuals send their comments to?
>> It's nondecided.  Mailbox not set up yet.
>> we will look at digest.  We will send outÊ Mr.ÊNotey.
>> It will be set up in 24 hours.
>> People interested in commenting on proposed changes may do so.  I should make mention that last year, we received a letter from a number of distinguished practitioners in the campaign finance field including Brad Smith and Bob Linheart and Bob Bower and LearyÊ Larry Gold.  Submitted recommendations to changing rules with respect to administrative fine program and changes to forms.

Forms may not be sexiest issues for public.  Not that garners headlines.  Those who have to register report to commission, extremely important in terms of their ability to timely file with the commission and file most accurate reports possible.

That generated within commission how best to address some of the specific recommendations that were included in that letter many on which are addressed that are part of the documents that we will allow comments to be submitted on.  To further flesh out discussion that we have on three different developments, we are going to turn to Alec palmer who will talk about upgrades as well as paper automation system.  We have Debby Chicona that reports leads and analysis division to talk about specific changes to forms that are being proposed.  I will turn to Alec Palmer.
>> Good morning.  Thank you for opportunity to provide an update on these two initiatives.  One just unplanned and other planned.  Part of our plan is to modernize our efiling platform and support infrastructure.  Electronic filing system was designed in 1990s based on technology at that time.  For community that had little experience with online filing, if you compare technology years to dog years, that makes our system 140 years old now.  Time for a change.

Efiling platform is crucial component of finance disclosure system.  For example, we have over 8,000 committees and other filers using efiling system to submit campaign finance discloser reports.  We will study making improvements to efiling platform to allow greater flexibility for users when generating filings for submissions to FEC with goal of consistency and accuracy of reporting.  Allow user to say file reports using any system, any device from anywhere.  Will provide avenue for improved data quality, ease of filing and improve process of validating filings prior to acceptance.  Consolidating this will provide better integration with new website.  We will have capability to adjust for heavy filing periods and oversized reports.  One definite weakness in our system.  To meet the needs of users, FEC will initiate study starting next week.  It will improve modernization and ensuring that application is fully integrated into FEC practices.

Sequence of how we approach there is very important.  Creating new forms and redesigning existing ones prior to this electronic filing study may create forms that will require extensive changes again to what the commission opt to say make based on results of study.  We suggest comments from all sources as imports from this study.  We will be following our methodology that we are using with our current design.

As we work to incorporate many of helpful suggestions.

Now to project that we just completed last week.  .  Paper filing automation.  The agency is implemented a paper filing agenda system to capture the data disclosed on reports.  This system replaces manual data entry process in which agency printed one million pages during election cycle and sent them to contractor for conversion into machine readable data files.  New system includes templates, prototypes for paper reports and consist of twostep process that involves optical character recognition to capture from data field and human very physician of specificÊ verification of specific data fields.

This was a complex and intense project and would like to thank staff for hard work and commitment in implementation of system.  Specifically to thank Paul Clark from OCIO and Ryan Lance and processing branch within reports analysis commission.  I would like to thank commissioners for individual and collective vision and support as relates to critical and timely initiatives.  Without their backing, we would not be moving forward in areas of improvements.  Thank you.
>> Thank you for that presentation, Mr.ÊPalmer.  Why don't we turn to Ms. Chicona.  We will address questions and comments afterwards.
>> I want to go over to changes in forms that we have before you now.  Changes to forms consist of nonsubstantive and technical changes intended assist in compliance and make forms consistent with one another.  Existing schedule for disclosing loan from candidate to committee includes box of disclosure of interest rate on the loan.  There has been confusion among filers how to do interest free loan.  One of provisions is to add to relevant instructions guidance to enter zero in the field if loan is free.  Other changes include, for example, addition of separators that allow the data to be captured more accurately.  In addition to FEC field that will increase accuracy of contribution data in the FEC database.

More specific changes include addition of personal fund check box to load schedules C and CP.  And 3C used by presidential. 
>> Changes were made to consolidation reports within forms 3 and 3P and adjustments made to page numbers to make forms easier to use.  On form 3X, receipt schedule A was revised to include full organization name to recognize the receipt of corporate and labor contributions by certain types.  In addition on schedule LA, principle place of business field has been removed to make receipt schedules consistent.  Finally form 3X instructions include guidance on how to disclose estimates for independent expenditures that are not fully known at the report is due.  This is one of thing that is was included in rule making petition that we just talked about.  Happy to answer any questions.
>> Thank you for those presentations.  We will open up to questions.
>> I don't have a question, but I want to say congratulations for all of this work.  I was struck by something that Ms.ÊChicona said.  This is come blindness and clear disclosure.  Provide disclosure to public and allow more people to apply so that more people can participate.  This effort is so significant in what you are doing today.  Should receive just major accolades, not just from us but from the entire public.  So thank you.
>> Any other questions?  Have a couple of followup questions I wanted to ask.  I know that one of the themes in the letter from practitioners that we addressed earlier was frustration with numerous different transaction types being included on single line another report that can create confusion for those filing not noticing exactly do they include those, which line should they include those points.  There might be assumption that every amount in particular line would refer to only a specific type of transaction type and trying to unpack them makes it difficult to whether it's practitioners or general public or made media.  Are there examples that you have been able to identify?  How would electronic filing project that we are undertaking address those sorts of concerns that did constitute a large bulk of concerns that were addressed in that letter?
>> Absolutely.  Couple of examples come to mind considering where we are with software that is not web based.  One of common complaints that we hear now relate to earmark contributions.  When you are talking about committees that have a lot of them to disclose, right now no ability to import files.  They have to enter those individually, manually that takes a lot of time obviously.

If we were to go to webbased system, we would be able to import these files so it would be easier.  Another thing that comes to mind, I know commission categorized this.  That's true, presently now specifically for line 17, all the receipts that we have, all of receipts coming in lumped on that line as well as any receipts coming in for noncontribution accounts for carried committees.  That creates confusion now.  In web based environment, we envision them having more flexibility in characterize their activity in this format.  More intuitive where they enter activity into the system.  This is type of activity enter it in rather than lump it on one line number.  Which will translate to webbased system.  Like web forms one and two now.  Very informative.  Takes you through step by step what type of filing you are.  Brings through that process.  That's how we envision to guide them through process and allow them to be more specific with types of activity that they are actually conducting.
>> I've heardÊ maybe I have heard this describe this as potential analog.  We want it to be like turbo tax where you take a form that is dry and difficult to understand and instead, move away from that, have a much more easy interface.  Using turbo tax model makes it easier for people filing their own taxes to be able to do so in accurate and complete way.  Would that be a safe analogy to make for electronic filing project that we are undertaking?  I realize we are in study phase.
>> I think basically what we are looking at when we look at complete rearchitecture from this process, everything from front end of how people file all the way through system and database and how information is retrieved.  All that is open for review.  To make it as simple as possible and to be able to make a complex process easy for filers.  Also for those people that want to retrieve our data to make it easy to grab different types of data much easier than they do now.
>> I ask Ms.ÊChicona this.  This will make it easier to be able to unpack with what is going on people filing with the commission.
>> Absolutely.  If they are able to understand what's going on, we are not going to send as many letters, right?  Absolutely much easier if we were able to see what types of activity were going on and separate.  Especially the issue I talked about with line 17.  Confusing to know what's going on on that line with all types of categories that are included in it.
>> Of the many suggestions and requested edits and forms that were included in that letter.  Some of which we are addressing through specific forms that are through the commission now, sounds like more comprehensive change that I think that petitioners were requesting is going to be better handled and to be more comprehensively handled through upgrades to electronic filing system.
>> That is correct.
>> Just in terms of timing, I realize that we are still at fairly initial stage in the process.  So obviously we pinpoint any specific data to be difficult.  Are there any sort of broad guideline that is we might want to consider?
>> We anticipate that the study will be completed this calendar year.  Depending on results that come out of that study and complexity of changes that commission approves, implementation, I would be caution to indicate how long that may take.  Certainly, I think our goal is to as we start on that in the calendar year of 2017, that would be, I think, good undertaking to see what we would accomplish during that calendar year.
>> Final question that I have.  From what I understand, there are changes in the law or when there are proposed changes that we want to make to forms, that can trigger a somewhat laborious process to update our system to accommodate those changes.  We transition to this webbased model, it will allow for efficiency in terms of incorporating whatever changes happen as a result of statute or regulatory change or perform change as a result of court decision.  Is that accurate wayÊ
>> That will be one of collateral benefits of this.
>> Go to last question.  I want to ask quickly, I know one of the recommended changes in the forms wanted to update 41 to take into xÊ consideration independent committees or whatever we want to call them.  It's ODC's recommendation that best course would be doing that through first implementing a rule to define that term before incorporating that term into a new form.  I want to make sure that's an accurate representation?  That best course to be having a rule making on that first?
>> Yes.
>> Further questions from commissioner?
>> We should do that.
>> Okay. 
>> Let's put that to the top of the queue.  Anything further?  I would than Palmer and Chicona for their presentations.  I hope we will have further updates.  This does present a real opportunity for us to improve our filing system.  I think that it will have benefits on all ends.  Benefits for general public whether or not you are interested citizen or member of the media.  Benefits for those who are actually filing with the commission to file their activity and benefits to commission so that we can have a better idea of activity that's going on.  We look forward to hearing the results of this study and further updates as we progress through this year and into next.

Vicechairman?
>> Thank you.  In connection with this, occurred to me that maybe we should put it in the format and have it put on the website and might be able to keep watching it as they go along with suggestions.  Especially practitioners, I think it would be better to do this.  Maybe the input as we go along might be helpful.
>> I think that's great suggestion.  One thing that we are going to continue to do with same methodology in building our data site is follow that exact same pros with engaging public and providing many opportunity force realtime feedback, thank you.
>> Thank you again for those presentations.
As for the next agenda items.  This was issue that was raised I believe last December.  We have been working on this at commission level.  We wanted to put that on as heads up that we have drafts that are being circulated back and forth.  Training edits with plan being that we can vote on notice of proposal rule making at next meeting.  To move forward on that, that's an interesting issue.  One that can be the subject of interesting hearing.  We look to pick that up at next meeting.

And finally, I will turn to Mr.ÊPalmer.  Do we have any administrative matter to say consider?
>> No such matters, Mr.ÊChairman.
>> That's last item on our agenda.  So I want to wish everybody a safe and enjoyable 4th of July weekend.  We will see everyone in two weeks.  Meeting is adjourned.  
              
             
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This is being provided in a rough-draft format.  Remote Communication Access Realtime Translation (CART) is provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings.
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