[Code of Federal Regulations]
[Title 11, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 11CFR106.2]

[Page 132-135]
 
                       TITLE 11--FEDERAL ELECTIONS
 
                 CHAPTER I--FEDERAL ELECTION COMMISSION
 
PART 106_ALLOCATIONS OF CANDIDATE AND COMMITTEE ACTIVITIES--Table of Contents
 
Sec.  106.2  State allocation of expenditures incurred by authorized 

committees of Presidential primary candidates receiving matching funds.

    (a) General--(1) This section applies to Presidential primary 
candidates receiving or expecting to receive federal matching funds 
pursuant to 11 CFR parts 9031 et seq. The expenditures described in 11 
CFR 106.2(b)(2) shall be allocated to a particular State if incurred by 
a candidate's authorized committee(s) for the purpose of influencing the 
nomination of that candidate for the office of President with respect to 
that State. An expenditure shall not necessarily be allocated to the 
State in which the expenditure is incurred or paid. In the event that 
the Commission disputes the candidate's allocation or claim of exemption 
for a particular expense, the candidate shall demonstrate, with 
supporting documentation, that his or her proposed method of allocation 
or claim of exemption was reasonable. Expenditures required to be 
allocated to the primary election under 11 CFR 9034.4(e) shall also be 
allocated to particular states in accordance with this section.
    (2) Disbursements made prior to the time an individual becomes a 
candidate for the purpose of determining whether

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that individual should become a candidate pursuant to 11 CFR 100.72(a) 
and 100.131(a), i.e., payments for testing the waters, shall be 
allocable expenditures under this section if the individual becomes a 
candidate.
    (b) Method of allocating expenditures among States--(1) General 
allocation method. Unless otherwise specified under 11 CFR 106.2(b)(2), 
an expenditure described in 11 CFR 106.2(b)(2) and incurred by a 
candidate's authorized committee(s) for the purpose of influencing the 
nomination of that candidate in more than one State shall be allocated 
to each State on a reasonable and uniformly applied basis. The total 
amount allocated to a particular State may be reduced by the amount of 
exempt fundraising expenses for that State, as specified in 11 CFR 
110.8(c)(2).
    (2) Specific allocation methods. Expenditures that fall within the 
categories listed below shall be allocated based on the following 
methods. The method used to allocate a category of expenditures shall be 
based on consistent data for each State to which an allocation is made.
    (i) Media expenditures--(A) Print media. Except for expenditures 
exempted under 11 CFR 106.2(b)(2)(i) (E) and (F), allocation of 
expenditures for the publication and distribution of newspaper, magazine 
and other types of printed advertisements distributed in more than one 
State shall be made using relative circulation percentages in each State 
or an estimate thereof. For purposes of this section, allocation to a 
particular State will not be required if less than 3% of the total 
estimated readership of the publication is in that State.
    (B) Broadcast media. Except for expenditures exempted under 11 CFR 
106.2(b)(2)(i) (E) and (F), expenditures for radio, television and 
similar types of advertisements purchased in a particular media market 
that covers more than one State shall be allocated to each State in 
proportion to the estimated audience. This allocation of expenditures, 
shall be made using industry market data. If industry market data is not 
available, the committee shall obtain market data from the media carrier 
transmitting the advertisement(s).
    (C) Refunds for media expenditures. Refunds for broadcast time or 
advertisement space, purchased but not used, shall be credited to the 
States on the same basis as the original allocation.
    (D) Limits on allocation of media expenditures. No allocation of 
media expenditures shall be made to any State in which the primary 
election has already been held.
    (E) National advertising. Expenditures incurred for advertisements 
on national networks, national cable or in publications distributed 
nationwide need not be allocated to any State.
    (F) Media production costs. Expenditures incurred for production of 
media advertising, whether or not that advertising is used in more than 
one State, need not be allocated to any State.
    (G) Commissions. Expenditures for commissions, fees and other 
compensation for the purchase of broadcast or print media need not be 
allocated to any State.
    (ii) Expenditures for mass mailings and other campaign materials. 
Expenditures for mass mailings of more than 500 pieces to addresses in 
the same State, and expenditures for shipping campaign materials to a 
State, including pins, bumperstickers, handbills, brochures, posters and 
yardsigns, shall be allocated to that State. For purposes of this 
section, mass mailing includes newsletters and other materials in which 
the content of the materials is substantially identical. Records 
supporting the committee's allocations under this section shall include: 
For each mass mailing, documentation showing the total number of pieces 
mailed and the number mailed to each state or zip code; and, for other 
campaign materials acquired for use outside the State of purchase, 
records relating to any shipping costs incurred for transporting these 
items to each State.
    (iii) Overhead expenditures--(A) Overhead expenditures of State 
offices and other facilities. Except for expenditures exempted under 11 
CFR 106.2(b)(2)(iii)(C), overhead expenditures of committee offices 
whose activities are directed at a particular State, and the costs of 
other facilities used for office functions and campaign events, shall be 
allocated to that State.

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An amount that does not exceed 10% of office overhead expenditures for a 
particular State may be treated as exempt compliance expenses, and may 
be excluded from allocation to that State.
    (B) Overhead expenditures of regional offices. Except for 
expenditures exempted under 11 CFR 106.2(b)(2)(iii)(C), overhead 
expenditures of a committee regional office or any committee office with 
responsibilities in two or more States shall be allocated to the State 
holding the next primary election, caucus or convention in the region. 
The committee shall maintain records to demonstrate that an office 
operated on a regional basis. These records should show, for example, 
the kinds of programs conducted from the office, the number and nature 
of contacts with other States in the region, and the amount of time 
devoted to regional programs by staff working in the regional office.
    (C) Overhead expenditures of national campaign headquarters. 
Expenditures incurred for administrative, staff, and overhead 
expenditures of the national campaign headquarters need not be allocated 
to any State, except as provided in paragraph (b)(2)(iv) of this 
section.
    (D) Definition of overhead expenditures. For purposes of 11 CFR 
106.2(b)(2)(iii), overhead expenditures include, but are not limited to, 
rent, utilities, equipment, furniture, supplies, and telephone service 
base charges. ``Telephone service base charges'' include any regular 
monthly charges for committee phone service, and charges for phone 
installation and intrastate phone calls other than charges related to a 
special program under 11 CFR 106.2(b)(2)(iv). Inter-state calls are not 
included in ``telephone service base charges.'' Overhead expenditures 
also include the costs of temporary offices established while the 
candidate is traveling in the State or in the final weeks before the 
primary election, as well as expenses paid by campaign staff and 
subsequently reimbursed by the committee, such as miscellaneous 
supplies, copying, printing and telephone expenses. See 11 CFR 116.5.
    (iv) Expenditures for special telephone programs. Expenditures for 
special telephone programs targeted at a particular State, including the 
costs of designing and operating the program, the costs of installing or 
renting telephone lines and equipment, toll charges, personnel costs, 
consultants' fees, related travel costs, and rental of office space, 
including a pro rata portion of national, regional or State office space 
used for such purposes, shall be allocated to that State based on the 
percentage of telephone calls made to that State. Special telephone 
programs include voter registration, get out the vote efforts, 
fundraising, and telemarketing efforts conducted on behalf of the 
candidate. A special telephone program is targeted at a particular State 
if 10% or more of the total telephone calls made each month are made to 
that State. Records supporting the committee's allocation of each 
special telephone program under this section shall include either the 
telephone bills showing the total number of calls made in that program 
and the number made to each State; or, a copy of the list used to make 
the calls, from which these numbers can be determined.
    (v) Public opinion poll expenditures. Expenditures incurred for the 
taking of a public opinion poll covering only one State shall be 
allocated to that State. Except for expenditures incurred in conducting 
a public opinion poll on a nationwide basis, expenditures incurred for 
the taking of a public opinion poll covering two or more States shall be 
allocated to those States based on the number of people interviewed in 
each State. Expenditures incurred for the taking of a public opinion 
poll include consultant's fees, travel costs and other expenses 
associated with designing and conducting the poll. Records supporting 
the committee's allocation under this section shall include 
documentation showing the total number of people contacted for each poll 
and the number contacted in each State.
    (3) National consulting fees. Expenditures for consultants' fees 
need not be allocated to any State if the fees are charged for 
consulting on national campaign strategy. Expenditures for consultants' 
fees charged for conducting special telephone programs

[[Page 135]]

and public opinion polls shall be allocated in accordance with 
paragraphs (b)(2) (iv) and (v) of this section.
    (c) Reporting. All expenditures allocated under this section shall 
be reported on FEC Form 3P, page 3.
    (d) Recordkeeping. All assumptions and supporting calculations for 
allocations made under this section shall be documented and retained for 
Commission inspection. In addition to the records specified in paragraph 
(b) of this section, the treasurer shall retain records supporting the 
committee's allocations of expenditures to particular States and claims 
of exemption from allocation under this section. If the records 
supporting the allocation or claim of exemption are not retained, the 
expenditure shall be considered allocable and shall be allocated to the 
State holding the next primary election, caucus or convention after the 
expenditure is incurred.

[56 FR 35909, July 29, 1991, as amended at 60 FR 31872, June 16, 1995; 
67 FR 78681, Dec. 26, 2002]