[Code of Federal Regulations]
[Title 11, Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 11CFR300.35]

[Page 257-258]
 
                       TITLE 11--FEDERAL ELECTIONS
 
                 CHAPTER I--FEDERAL ELECTION COMMISSION
 
PART 300_NON-FEDERAL FUNDS--Table of Contents
 
 Subpart B_State, District, and Local Party Committees and Organizations
 
Sec.  300.35  Office buildings.

    (a) General provision. For the purchase or construction of its 
office building, a State or local party committee may spend Federal 
funds or non-Federal funds that are not subject to the limitations, 
prohibitions, and disclosure provisions of the Act, so long as such 
funds are not contributed or donated by a foreign national. See 2 U.S.C. 
441e. If non-Federal funds are used, they are subject to State law. An 
office building must not be purchased or constructed for the purpose of 
influencing the election of any candidate in any particular election for 
Federal office. For purposes of this section, the term local party 
committee shall include a district party committee.
    (b) Application of State law. Non-Federal funds received by a State 
or local party committee that are spent for the purchase or construction 
of its office building are subject to State law as set forth in 
paragraphs (b)(1) and (2) of this section.
    (1) Non-Federal account. If a State or local party committee uses 
non-Federal funds, Federal law does not preempt or supersede State law 
as to the source of funds used, the permissibility of the disbursements, 
or the reporting of the receipt and disbursement of such funds, except 
as provided in paragraph (a) of this section.
    (2) Levin funds. Levin funds may be used for the purchase or 
construction of a State or local party committee office building, if 
permitted by State law.
    (c) Leasing a portion of the party office building. A State or local 
party committee may lease a portion of its office building to others to 
generate income at the usual and normal charge. If the building is 
purchased or constructed in whole or in part with non-Federal funds, all 
rental income shall be deposited in the committee's non-Federal

[[Page 258]]

account and used only for non-Federal purposes. Such rental income and 
its use must also comply with State law. If the building is purchased or 
constructed solely with Federal funds, the rental income may be 
deposited in the Federal account. The receipt of such funds shall be 
reported in compliance with 11 CFR 104.3(a)(4)(vi).
    (d) Transitional Provisions for State Party Building or Facility 
Account. Up to and including November 5, 2002, the State committee of a 
political party may accept funds into its party office building or 
facility account, established pursuant to repealed 2 U.S.C. 
431(8)(B)(viii), designated for the purchase or construction of an 
office building. Starting on November 6, 2002, the funds in the account 
may not be used for Federal account or Levin account purposes, but may 
be used for any non-Federal purposes, as permitted under State law.