ADR program update

The Commission recently resolved seven 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 the Minnesota Democratic Farmer Labor Party, Kerry Gautier, treasurer, regarding the failure to report all receipts. The respondents acknowledged an inadvertent omission which occurred when the original report was filed prior to the reconciliation of bank records. They agreed to pay a $1,000 civil penalty and agreed to revise their procedures to ensure that bank reconciliation is done prior to filing reports with the Commission. Additionally, the respondents will send a representative to training on campaign finance reporting within 12 months of the effective date of the agreement. (ADR 325*)
2. The Commission reached an agreement with the Harris County Republican Party, Larry Hicks, treasurer, regarding the failure to report and properly allocate administrative expenses. The respondents acknowledged an inadvertent violation due to inexperienced staff. Historically they were only involved in county and state election activities and had no experience with the allocation of federal disbursements. The respondents agreed to work with a RAD analyst to ensure that all reports are amended to accurately reflect the allocation of financial activity and will appoint a compliance specialist. (ADR 299*)
3. The Commission closed the file concerning Max Gelwix regarding contributions in excess of the $25,000 annual contribution limit of 2002.1 The ADR Office recommended that the Commission dismiss the case, and the Commission agreed to take no further action. (ADR 310/ MUR 5706)
4. The Commission reached an agreement with the New Hampshire Republican State Committee, Robert Scott, treasurer, regarding the failure to file 24-Hour Notices for independent expenditures. The respondents acknowledged an inadvertent violation of FECA due to a lack of experience with federal campaign activity. The respondents agreed to pay a $4,500 civil penalty, as well as create a FEC Compliance officer position, prepare a policy setting forth the responsibilities of the position, and attend an FEC compliance seminar. (ADR 305*)
5. The Commission reached an agreement with the North Carolina Democratic Party—Federal, Muriel K. Offerman, treasurer, regarding the failure to file 24-Hour Notices for independent expenditures. The respondents acknowledged an inadvertent omission of filing the 24-Hour Notices and noted that the current treasurer was not the treasurer at the time the notices were to have been filed. The respondents agreed to pay a $3,500 penalty, appoint a Compliance Officer, and attend an FECA compliance seminar within 12 months. (ADR 316*)
6. The Commission reached an agreement with the CT Democratic State Central Committee, Emma Pierce, treasurer, regarding the failure to accurately report receipts. The respondents acknowledged an inadvertent violation of FECA due to an unanticipated volume of financial transactions during the reporting period. The respondents agreed to pay a $1,500 civil penalty as well as appoint an FEC compliance officer and send a representative to attend an FEC reporting and compliance seminar within 12 months. (ADR 313*)
7. The Commission closed the file concerning William Bain Adams regarding contributions in excess of the $25,000 annual contribution limit of 2002.¹ The ADR Office recommended that the Commission dismiss the case, and the Commission agreed to take no further action. (ADR 326/MUR 5706)

* This case was internally generated.

¹ The Bipartisan Campaign Reform Act of 2002 (BCRA) replaced the $25,000 annual limit on individual contributions with a biennial limit that covers an entire two-year election cycle. The limit is indexed to inflation, and is $101,400 for the 2005-06 cycle.