This file contains archived live captions of the open meeting of the Federal Election Commission held on November 10, 2021. This file is not a transcript of the meeting, and it has not been reviewed for accuracy or approved by the Federal Election Commission. аааааааааааааааааааааааааааааааааа Good afternoon, I'm going ask for everyone's indulgence because am rigged by telephone and a video, so extra hands up when you would like to speak would be appreciated today. The first item on the agenda is -- Submitted by Congressman Adam Schiff and Adam Schiff for Congress, we are joined by Stephen Kaufman, who is able to respond to questions they might have. So I say Mr. Kaufman, welcome. We also have others here to discuss the matter. So let me turn to counsel. Thank you Madam chair, before you, alternate draft advisory opinions responding to a respondent request from U.S. Congressman Adam Schiff and his request for running for Congress. He is asking if he can permit a book , both drafts conclude that the rental for fair market value is not a committee asset and the payment to rent the list is not a contribution where the committee would receive the fair market value of the rental, we do not receive any comments on the draft, thank you, and I would be happy to address any questions you have thank you, are there any questions? Commissioner Winthrop. Thank you, Madam chair. Mr. Kaufman, good to see you. Good to see you as well. You know, I see a request like this and it sort of takes me back in time, once upon a time when I worked at the ethics committee and reviewed the contracts, it has been a very long time since I have done that but I'm wondering if maybe the publishing industry has changed, I see that the -- You have told us that the ethics committee has approved this and the chairman that Congressman Schiff would be paid under contractual terms for the industry and those terms are described as after Random House recoups its publication and promotion costs, Random House will receive sales from the percentage of the book heard can you give me more on this? Is it seems to me, back in the day, 50% royalties would have been considered very high, but, I guess the ethics committee looked at this and said is the standard now? Have things changed in the publishing industry since I last reviewed the contracts, can you help me out Mr. Kaufman? Thank you , before into the question I would like to say one thing, and that is we very much appreciate the staffs quick turnaround on this request and wanted to particularly thank those involved forgetting this before you and in a prompt manner that they did. I just wanted to get that out . And thanks Steph, Heather, and others in this meeting. To address your question, while I am not an expert on the publishing industry, I can tell you that this agreement was completely bedded by the house ethics committee . They did approve it. And it is a little different, I know that there are different arrangements within the industry. They are all standard arrangement, but there are different ways of structuring it. One of the reasons before you today is that this arrangement is different from some arrangements that have been addressed by the commission in the past. But, nonetheless, as to your, I guess, implication of the question, I think once you, you know, once you deduct all the expenditures in the way that they are being allocated and such that, you know, the way the prophets are being addressed here, I don't think it leads to anymore robust return for the Congressman, then other arrangements that were done on a consistent basis, this is another way of slicing the and, you know, it is our understanding that this is a completely routine and proper method of distributing the profits for this type of publication. Thank you for that. Thank you. Any further questions? None, are there any motions? Thank you Madam chair, and represent for Congress I move approval of document 21-37- B on the agenda. Thank you, any discussion on this motion? Commissioner Winthrop, thank you Madam chair, I will not be able to support the motion, the two traps are somewhat similar but I think that draft A is more consistent with previous commission president and practice, at the appropriate time, I will be moving draft A and I guess we will see what happens. Thank you Commissioner Winthrop, I also want to indicate that two traps come to the same conclusion, I will be supporting draft day, the libertarian ale is consistent and I am comfortable with that analysis that has been presented. So let me ask if there are any further discussions? None, then I will call the question, all those in favor of Commissioner Cooksey's motion, say hi. Opposed, say no, no, the motion fails with three voting in favor, Commissioner -- And three voting against the motion. Commissioner Weintraub and myself. Thank you . I move approval of agenda document tone on dash 37 dash A. Let me ask if there's any discussion on this motion? I will call the question, all those in favor of the motion, please say I. Opposed, please say no. No. The Commissioner -- The motion fails. Thank you. Anything further? Commissioner Weintraub. Thank you Madam chair, I was not sure entirely how the boats were going to go but it did occur to me how this was going to happen so I guess my question for my colleagues, it is unusual but we have, from time to time, given answers to AO is that describe the fact and say is okay, and then for different reasons, it grips of commissioners and issue statements for different things, and it sounds like everybody agrees that the proposal is legal and appropriate, it would seem a shame that we cannot give any kind of an answer to the requester so is there any interest among my colleagues in trying to prepare a draft along those lines. Madam chair. Commissioner Walther. I think that's a good idea and I think we should give it a try. Thank you Commissioner Walther, I think that is a good idea. Thank you, I can support that motion, I wonder to its utilities as the common ground is in draft B, so I will join the motion but I do not envy -- Mr. Kaufman . Madam chair, I don't know if it is my place to jump in here, but it seems like we have six commissioners all agree that this proposed action is permissible and obviously, for my client, the Congressman, and his committee, we were looking to get, you know, approval and direction today. Regarding these transactions and obviously, the vote results here send us a message of approval but don't give us the results we need so we would certainly encourage the commission to come up with some result that provides my client with the security he needs to proceed with this proposed transaction. Thank you, Mr. Kaufman. I appreciate the suggestion made by Commissioner Weintraub, I am comfortable with that suggestion and let me turn to OGC so you can help us understand the next steps. I see your face. >> I will take this, you should weigh in if you have a different view, but we can prepare it draft where we have done in line with other matters where the Commissioner did not agree on reasoning. Thank you, I appreciate it. We are going to then hold this manner matter over. I know we had an expedited request that I believe we are still in that timeframe, missed Heather Filemyr, could you update us on that? Yes, the deadline is December 6, we have been doing what we can to expedite, but we are with within the 60 days and we are doing what we can. Thank you for that, we will continue to push for, thank you very much to OGC, thank you Mr. Kaufman to your presence today, we are going to turn to the next item on the agenda. The next item on the agenda is advisory opinion request 2021-10 submitted by benefits Inc., we are joined today by Mr. Anthony Ward, as well as by -- Retail benefits Inc. who is available to respond to questions that commissioners may have, I say welcome, we also have Joanna Waldstreicher and Amy Rothstein to discuss the matter. Let me turn it over to counsel. Thank you Madam chair, good afternoon commissioners. This is an advisory request -- This is a for-profit corporation that enters into license browser extensions and mobile apps to offer a loyalty program to the affiliates, customers, and supports. RDI offers political minis to refund -- RDI as whether this proposal is permissible under the act of relations and whether it is there for -- The draft includes that this is permissible. Finding services to committees and would comply with all requirements and conclusions. Our draft for the includes that they would not be required to file reports with the commission we do not receive any comments on request on the draft. Can answer any questions? Thank you, are there any questions? Okay, then the next question becomes are there any motions? Vice chair, thank you. In queue, I move approval of the agenda documents -- Thank you vice chair, any discussion on this motion? All in favor, please say I. I. Thank you, the motion is unanimous, thank you OGC and thank you for counsel's presence. This has been a very quick meeting, we have nothing further on the agenda would Madam chair. Yes. I just wanted to take a quick minute since we have a public meeting here to, tomorrow is Veterans Day and I just want to recognize the over 20 veterans that we have on ours working at the FEC and want to thank them for their service, I know tomorrow is a holiday for us but I would like for us to remember them and their families on that day. Commissioner Trey Trainor, thank you very much, that is a wonderful announcement, I greatly appreciate that, we should also think our vice chair, who serves in our Armed Forces, so we want to take the opportunity to extend that and, while my fat father does not watches, he is a retired veteran so I also send bite appreciation and thanks to him and all those individuals that may be watching for the individuals you announced at our agency, so thank you very much, great idea. So, let me turn to Mr. staff director, are there any management or administrative manners the commission needs to discuss today? Madam chair, there are no such matters. Thank you, this meeting stands adjourned. Thank you, everyone.