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 the final disposition of the cases are listed below.

1. The Commission reached an agreement with American Federation of State, County & Municipal Employees Public Employees Organized for Political and Legislative Equality (AFSCME PEOPLE), regarding missing itemizations for membership and fundraising disbursements made from its non-federal account and failing to report some debt. Under the Act and Commission regulations, disbursements to pay administrative and solicitation costs must be from either funds “subject to the prohibitions and limitations of the Act,” (i.e., “federal funds”) or an allocation of federal funds and funds that are not “subject to the prohibitions and limitations of the Act” (i.e., “non-federal funds”). In this case, no impermissible funds were used to make the disbursements as the committee’s non-federal account was financed entirely from funds subject to the prohibitions and limitations of the Act. In fact, as a separate segregated fund, AFSCME PEOPLE’s connected organization could have paid these expenses from its treasury funds and no disclosure would have been required. Ultimately, AFSCME PEOPLE adopted this approach. The committee also modified its procedures for disclosing debts and obligations, as a result of the Commission’s findings. (ADR 227*)
2. The Commission reached an agreement with American College of Cardiology PAC, Michael A. Votaw, treasurer, regarding their failure to file a 48-hour independent expenditure report. The respondents acknowledged an inadvertent violation of the Act, due to their inexperience. They agree to pay a $1,000 civil penalty and—in an effort to avoid future violations—to appoint a compliance officer who will attend an FEC seminar within 12 months. (ADR 257*)
3. The Commission reached an agreement with Democratic Executive Committee of Florida, Rudy Parker, treasurer, regarding their misstatements of financial activity. The respondents acknowledged an inadvertent violation of the Act. They filed amended reports to correct the misstatements for the years 2001 and 2002. In an effort to avoid similar errors in the future, they agree to hire a compliance specialist and a comptroller/accountant and to send a representative to an FEC seminar within 12 months. (ADR 260*)
4. The Commission rejected an agreement with Taff for Congress, and Kimberly S. Stewart, treasurer, resolving a failure to include a disclaimer in calls from a computergenerated telephone-bank. The Commission rejected the proposed settlement agreement to avoid a potential conflict between ADR and Commission enforcement due to Taff’s criminal indictment on other campaign-related matters. (ADR 271)
5. The Commission reached an agreement with Citizens for Claudia Bermudez for Congress, Brion Wilkes, treasurer, regarding misstatements of financial activity. The committee amended its October Quarterly and 30-day Post General Election reports, to reflect the significant increase in its disbursements during those periods. The respondents agreed to terminate the committee and to pay a $500 civil penalty. (ADR 279*)
6. The Commission reached an agreement with No Vote Left Behind, Natasha George, treasurer, regarding delinquent filing of 48-hour independent expenditure reports. The respondents acknowledge the violations, and attribute them to an inexperienced volunteer staff. The respondents agreed to pay a $2,500 civil penalty, develop a compliance manual and attend an FEC seminar within 12 months. (ADR 283*)

* This case was internally generated.