[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: 11CFR9008.9]

[Page 309-310]
 
                       TITLE 11--FEDERAL ELECTIONS
 
                 CHAPTER I--FEDERAL ELECTION COMMISSION
 
PART 9008--FEDERAL FINANCING OF PRESIDENTIAL NOMINATING CONVENTIONS--Table of Contents
 
Subpart A--Expenditures by National Committees and Convention Committees
 
Sec. 9008.9  Receipt of goods and services from commercial vendors.

    Commercial vendors may sell, lease, rent or provide their goods or 
services to the national committee with respect to a presidential 
nominating convention at reduced or discounted rates, or at no charge, 
provided that the requirements of either paragraph (a), paragraph (b), 
or paragraph (c) of this section are met. For purposes of this section, 
commercial vendor shall have the same meaning as provided in 11 CFR 
116.1(c).
    (a) Standard reductions or discounts. A commercial vendor may 
provide reductions or discounts in the ordinary course of business. A 
reduction or discount shall be considered in the ordinary course of 
business if the commercial vendor has an established practice of 
providing the same reductions or discounts for the same amount of its 
goods or services to non-political clients, or if the reduction or 
discount is consistent with established practice in the commercial 
vendor's trade or industry. Examples of reductions or discounts made in 
the ordinary course of business include standard volume discounts and 
reduced rates for corporate, governmental or preferred customers. 
Reductions or discounts provided under paragraph (a) of this section 
need not be reported.
    (b) Items provided for promotional consideration.
    (1) A commercial vendor may provide goods or services in exchange 
for promotional consideration provided that doing so is in the ordinary 
course of business.
    (2) The provision of goods or services shall be considered in the 
ordinary course of business under this paragraph:
    (i) If the commercial vendor has an established practice of 
providing goods or services on a similar scale and on similar terms to 
non-political clients, or
    (ii) If the terms and conditions under which the goods or services 
are provided are consistent with established practice in the commercial 
vendor's trade or industry in similar circumstances.
    (3) In all cases, the value of the goods or services provided shall 
not exceed the commercial benefit reasonably expected to be derived from 
the unique promotional opportunity presented by the national nominating 
convention.

[[Page 310]]

    (4) The convention committee shall maintain documentation showing: 
the goods or services provided; the date(s) on which the goods or 
services were provided, the terms and conditions of the arrangement; and 
what promotional consideration was provided. In addition, the convention 
committee shall disclose in its report covering the period the goods or 
services are received, in a memo entry, a description of the goods or 
services provided for promotional consideration, the name and address of 
the commercial vendor, and the dates on which the goods or services were 
provided (e.g., ``Generic Motor Co., Detroit, Michigan--ten automobiles 
for use 7/15-7/20, received on 7/14'', or ``Workers Inc., New York, New 
York--five temporary secretarial assistants for use 8/1-8/30, received 
on 8/1'').
    (c) Items of de minimis value. Commercial vendors (including banks) 
may sell at nominal cost, or provide at no charge, items of de minimis 
value, such as samples, discount coupons, maps, pens, pencils, or other 
items included in tote bags for those attending the convention. The 
items of de minimis value may be distributed by or with the help of 
persons employed by the commercial vendor, or employed by or 
volunteering for the national party or a host committee. The value of 
the items of de minimis value provided under this paragraph need not be 
reported.
    (d) Expenditure Limits. The value of goods or services provided 
pursuant to this section will not count toward the national party's 
expenditure limitation under 11 CFR 9008.8(a).