[Code of Federal Regulations]
[Title 11, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 11CFR9004.9]

[Page 288-291]
 
                       TITLE 11--FEDERAL ELECTIONS
 
                 CHAPTER I--FEDERAL ELECTION COMMISSION
 
PART 9004--ENTITLEMENT OF ELIGIBLE CANDIDATES TO PAYMENTS; USE OF PAYMENTS--Table of Contents
 
Sec. 9004.9  Net outstanding qualified campaign expenses.

    (a) Candidates receiving post-election funding. A candidate who is 
eligible to receive post-election payments under 11 CFR 9004.3 shall 
file, no later than 20 calendar days after the date of the election, a 
preliminary statement of

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that candidate's net outstanding qualified campaign expenses. The 
candidate's net outstanding qualified campaign expenses under this 
section equal the difference between 11 CFR 9004.9(a) (1) and (2).
    (1) The total of:
    (i) All outstanding obligations for qualified campaign expenses as 
of the date of the election; plus
    (ii) An estimate of the amount of qualified campaign expenses that 
will be incurred by the end of the expenditure report period; plus
    (iii) An estimate of the necessary winding down costs, as defined 
under 11 CFR 9004.4(a)(4), submitted in the format required by paragraph 
(a)(4) of this section; less
    (2) The total of:
    (i) Cash on hand as of the close of business on the day of the 
election, including: All contributions dated on or before that date; 
currency; balances on deposit in banks, savings and loan institutions, 
and other depository institutions; traveler's checks; certificates of 
deposit; treasury bills; and any other committee investments valued at 
fair market value;
    (ii) The fair market value of capital assets and other assets on 
hand; and
    (iii) Amounts owed to the candidate's authorized committee(s) in the 
form of credits, refunds of deposits, returns, receivables, or rebates 
of qualified campaign expenses; or a commercially reasonable amount 
based on the collectibility of those credits, returns, receivables or 
rebates.
    (3) The amount submitted as the total of outstanding campaign 
obligations under paragraph (a)(1) of this section shall not include any 
accounts payable for non-qualified campaign expenses nor any amounts 
determined or anticipated to be required as a repayment under 11 CFR 
part 9007 or any amounts paid to secure a surety bond under 11 CFR 
9007.5(c).
    (4) The amount submitted as an estimate of necessary winding down 
costs under paragraph (a)(1)(iii) of this section shall be broken down 
by expense category and quarterly or monthly time period. This breakdown 
shall include estimated costs for office space rental, staff salaries, 
legal expenses, accounting expenses, office supplies, equipment rental, 
telephone expenses, postage and other mailing costs, printing and 
storage. The breakdown shall estimate the costs that will be incurred in 
each category from the time the statement is submitted until the 
expected termination of the committee's political activity.
    (b) All candidates. Each candidate, except for individuals who have 
withdrawn pursuant to 11 CFR 9004.8, shall submit a statement of net 
outstanding qualified campaign expenses no later than 30 calendar days 
after the end of the expenditure report period. The statement shall 
contain the information required by 11 CFR 9004.9(a) (1) and (2), except 
that the amount of outstanding obligations under 11 CFR 9004.9(a)(1)(i) 
and the amount of cash on hand, assets and receivables under 11 CFR 
9004.9(a)(2) shall be complete as of the last day of the expenditure 
report period.
    (c) Candidates who withdraw. An individual who ceases to be a 
candidate pursuant to 11 CFR 9004.8 shall file a statement of net 
outstanding qualified campaign expenses no later than 30 calendar days 
after he or she ceases to be a candidate. The statement shall contain 
the information required under 11 CFR 9004.9(a) (1) and (2), except that 
the amount of outstanding obligations under 11 CFR 9004.9(a)(1)(i) and 
the amount of cash on hand, assets and receivables under 11 CFR 
9004.9(a)(2) shall be complete as of the day on which the individual 
ceased to be a candidate.
    (d)(1) Capital assets and assets purchased from the primary election 
committee. (i) For purposes of this section, the term capital asset 
means any property used in the operation of the campaign whose purchase 
price exceeded $2000 when acquired by the committee. Property that must 
be valued as capital assets under this section includes, but is not 
limited to, office equipment, furniture, vehicles and fixtures acquired 
for use in the operation of the candidate's campaign, but does not 
include property defined as ``other assets'' under paragraph (d)(2) of 
this section. Capital assets include items such as computer systems and 
telecommunications systems, if the equipment is used together and if the 
total cost of all components that are used together

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exceeds $2000. A list of all capital assets shall be maintained by the 
committee in accordance with 11 CFR 9003.5(d)(1). The fair market value 
of capital assets shall be considered to be 60% of the total original 
cost of such items when acquired, except that items received after the 
end of the expenditure report period must be valued at their fair market 
value on the date acquired. A candidate may claim a lower fair market 
value for a capital asset by listing that capital asset on the statement 
separately and demonstrating, through documentation, the lower fair 
market value.
    (ii) If capital assets are obtained from the candidate's primary 
election committee, the purchase price shall be considered to be 60% of 
the original cost of such assets to the candidate's primary election 
committee. For purposes of the statement of net outstanding qualified 
campaign expenses filed after the end of the expenditure report period, 
the fair market value of capital assets obtained from the candidate's 
primary election committee shall be considered to be 20% of the original 
cost of such assets to the candidate's primary election committee.
    (iii) Items purchased from the primary election committee that are 
not capital assets, and also are not other assets under paragraph (d)(2) 
of this section, shall be listed on an inventory that states their 
valuation.
    (2) Other assets. The term other assets means any property acquired 
by the committee for use in raising funds or as collateral for campaign 
loans. ``Other assets'' must be included on the candidate's statement of 
net outstanding qualified campaign expenses if the aggregate value of 
such assets exceeds $5000. The value of ``other assets'' shall be 
determined by the fair market value of each item on the last day of the 
expenditure report period or the day on which the individual ceased to 
be a candidate, whichever is earlier, unless the item is acquired after 
these dates, in which case the item shall be valued on the date it is 
acquired. A list of other assets shall be maintained by the committee in 
accordance with 11 CFR 9003.5(d)(2).
    (e) Collectibility of accounts receivable. If the committee 
determines that an account receivable of $500 or more, including any 
credit, refund, return or rebate, is not collectible in whole or in 
part, the committee shall demonstrate through documentation that the 
determination was commercially reasonable. The documentation shall 
include records showing the original amount of the account receivable, 
copies of correspondence and memoranda of communications with the debtor 
showing attempts to collect the amount due, and an explanation of how 
the lesser amount or full write-off was determined.
    (f) Review of candidate statement--(1) General. The Commission will 
review the statement filed by each candidate under this section. The 
Commission may request further information with respect to statements 
filed pursuant to 11 CFR 9004.9(b) during the audit of that candidate's 
authorized committee(s) under 11 CFR part 9007.
    (2) Candidate eligible for post-election funding. (i) If, in 
reviewing the preliminary statement of a candidate eligible to receive 
post-election funding, the Commission receives information indicating 
that substantial assets of that candidate's authorized committee(s) have 
been undervalued or not included in the statement or that the amount of 
outstanding qualified campaign expenses has been otherwise overstated in 
relation to committee assets, the Commission may decide to temporarily 
postpone its certification of funds to that candidate pending a final 
determination of whether the candidate is entitled to all or a portion 
of the funds for which he or she is eligible based on the percentage of 
votes the candidate received in the general election.
    (ii) Initial determination. In making a determination under 11 CFR 
9004.9(f)(2)(i), the Commission will notify the candidate within 10 
business days after its receipt of the statement of its initial 
determination that the candidate is not entitled to receive the full 
amount for which the candidate may be eligible. The notice will give the 
legal and factual reasons for the initial determination and advise the 
candidate of the evidence on which the Commission's initial 
determination is based. The candidate will be given the opportunity to 
revise the statement or

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to submit, within 10 business days, written legal or factual materials 
to demonstrate that the candidate has net outstanding qualified campaign 
expenses that entitle the candidate to post-election funds. Such 
materials may be submitted by counsel if the candidate so desires.
    (iii) Final determination. The Commission will consider any written 
legal or factual materials submitted by the candidate before making its 
final determination. A final determination that the candidate is 
entitled to receive only a portion or no post-election funding will be 
accompanied by a written statement of reasons for the Commission's 
action. This statement will explain the legal and factual reasons 
underlying the Commission's determination and will summarize the results 
of any investigation on which the determination is based.
    (iv) If the candidate demonstrates that the amount of outstanding 
qualified campaign expenses still exceeds committee assets, the 
Commission will certify the payment of post-election funds to which the 
candidate is entitled.
    (v) Petitions for rehearing. The candidate may file a petition for 
rehearing of a final determination under this section in accordance with 
11 CFR 9007.5(a).

[56 FR 35919, July 29, 1991, as amended at 60 FR 31877, June 16, 1995; 
64 FR 49363, Sept. 13, 1999]