CRR 1104 3697

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FEDERAL FIECTION COMMISSION

THIS IS 71E
DATE F Ll.f_)

K3INI3 T 11JR
4a-63

COE: RA NO.

a'9TU
2%

92L-24

1
REPORTS ANALYSIS REFERRAL
TO
OFFICE OF GENERAL COUNSEL

DATE:ocroher 14

1992

ANALYST: Robin Kelly

I. COMMITTEE:

II.

III.

RELEVANT STATUTE:

The Committee to Elect Don Nelms
C0024 3699)
Roy J. Shorter, Treasurer
4000 Frontage Road
Fayette%'ille, AR
72703
2 U.S.C. §434(a)(6)
11 CFR §104.5(f)

BACKGROUND:
Failure to File Forty-Eight Hour Notifications
The
Committee
to
Elect
Don
Nelms ("the
Committee")
failed
to
file
the
required
Forty-Eight
(48)
Hour
Notifications
("48-Hour Notices") for two (2) contributions/
loans
totalling 525,000 received
prior to the
1992 Primary
Election.

The
candidate was involved in the 1992 Primary Election
held on May 26, 1992.
Prior Notice was sent to the Committee
on April 20,
1992
Attachment
2).
The Notice includes a
section titled
"49-Hour
Notice on Contributions".
This
section reads "Notices are required if the committee receives
contributions
(including contributions and loans from the
candidate's personal funds; and endorsements or guarantees of
bank
loans) of $1,00 or more, during the period of May 7
through
May
23.
The
notices
must reach
the appropriate
federal
and
state
filing offices
within 48
hours of
the
committee's receir: -f the contribution(s)."
Schedules A
and
C
of
the 12
Day Pre-Runoff
Report
indicate
that the Committee failed
to file two (2)
48-Hour
Notices
for contrihutions received during the aforementioned
period
(Attachment
3.
The
following
is a
list of
the
contributions fcr wnirh n- 48-Hour Notices were filed:
Contributor Name
Don Nelms
Don Nelms

Date
05/ 07/92
05/15/92

Amount
$10,000
$15,000

COMMITTEE TO EL

DON NELMS

REPORTS ANALYSIS
PAGE 2

C REFERRAL

On
September 11, 1992,
an Informational Notice
("IN")
was
sent to the Committee (Attachment 4).
The IN notes that
the
Committee may
have
failed to file
one or more
of the
required
48-Hour Notices for "last
minute" contributions of
$1,000
or more.
The notice requests the Committee to review
their
procedures for checking contributions
received during
the
aforementioned
time
period.
In
addition, the
notice
states that although the Commission may take legal steps,
any
response would be takei into consideration.
On
September 1-,
1992, Roy Shorter called and asked the
Reports
Analysis Division ("RAD") analyst how
to respond to
tho notice he had received (Attachment 5).
He said he didn't
realize
before
the
Primary
that
loans
were
considered
contributions.
The
analyst
told
him
to
write
a letter
explaining the situation.

On
September
21,
1992,
the
treasurer, Roy Shorter,
responded
in a letter (Attachment 6).
He stated that at the
time
of
filing he didn't
realize that
loans made by the
candidate were considered contributions and subject to
the
48-hour
special notice filing. Mr. Shorter also points out
that
the Campaign Guide
for Congressional Candidates
(July
1988)
Page 24, does not define a "last minute" contribution
to include loans from the candidate's personal
funds. He
said
it was
not until
he received a copy of "recurring
problems"
letter, on or about June 1st
(addressed to
the
candidate from Joan D. Aikens, Chairman) that he realized the
48-hour
reporting rule included candidate loans. Thereafter
he
stated that
he has promptly reported all "last minute"
contributions.

FEDERAL ELECTION COMMISSION
OACHMENT
1991-1992
FNDIDTE INDEX OF SUPPORTING DOCUMENTS - (El

E'CJt4N

k~I~IJE

OP:-2
E YJiJGT

NELMz, r[ENOC
Jw
1. "'

RECEIPTS
PF I. '
SENERAL

PWT

!SEUJRSERENTS
FI" y
GENERAL

P Ty

NCr5E

14OCTO -

[wkl

# I

PAGE

COVERAGE DATES PHI.
TtPE &; IE

AR ANE-.AcE

i~: ELETP.N

eA~4K ~

-04

4-4

--I- -~.

ct
--

M;:

-C-

pJOE%

.":;, :Z -,.,:
"% ,
0.j."

". --

-All

Reports

have been

-Cash-Cn-Hand as of

-Debts
Debts

Z,,-

2 Z

reviewed.

6/30/92

$1.952

owed b- the Comm'ttee as of 6/30/92
owed

the

Committee as of

6/30/92

$210,104
-

-Z,;

:,z

4..

ARY ELECTION

ATTACHMENT
PAGH" I

#2
2

REPORT NOTICE
FEDERAL ELECTION COMMISSION
April 20, 1992

ARKANSAS

Congressional

Committees

FOR COMMITTEES INVOLVED ONLY IN THE PRIMARY (05/26):
REG./CERT.
RAI LING
REPORTING PERIOD
REPORT
DATE'*
C4 C"
2 - 6.
Pre-Primary
0 5 1 /,9
2
---- See Below---48 Hour Notices
3ST , 93:
C- 15/9 2
July Quarterly

FILING
DATE
14,

WHO MUST FILE
Princi:al camcaian c:n.-:ttees of o=roressional candidates einelud:nc
unopposed candidates, -,'no seeK r m.nation in the primary must file the
above reports and rt:-es. .f t.1e car-aian has more than one
authorized committee, :!e principal campaign committee must also file
.
t4 c.-nsolidated recor: n
r48 HOUR NOTICES ON CONTRIBUTIONS
::ot:oes are reauire- i :ne z:z:t:ee receives contributions
(including contributions and loans from the candidate's personal
funds; and endorsements or cuarantees of bank loans? cf S1,:00 or
ore, dring
the per::d of a"
thrcuqh May 23.
The notices must
reach the approptia'e :eoera
and state fillng offices within 48 hours
of the committee's re::- -, tne contribution(s).
LABEL
the peei-off
3=oel f ...
ne envelope t:
:orrec::ons snculd :e
oe on :ne ..3bel.

Aff:x

Line

I cf the report.

:OMPLIANCE

TREASURERS APE FE$?2.:E .CR rZ:.:
:: :E.
FAILUFE 7- 7 "
*"E!-

:OMiTTrES

ALL PEPOPTS AND 48 HORP NOTICE$
TO EN70:P.ZEENT ACTION.

USING 'N^N-FZ: FCRS FOR FEPORTS CR F:'ING ILLEGIBLE REPORTS

OR NOTICES WILL BE PE?::REO T

FEF:LE.

*Reports sent zv rez:s:ered or cert:fied mail must be postmarked by
the mailin
date;
:ne:,ise. :nev nust be received by the filing date.
-'The rer:od teoins wizn tne c-ose of the last report filed by the
:ommit:ee.
:! :ne -:n::ee nas f:led no previous reports, :he perico
begins .:ith tne date :
h e committee's first activity.

FOR INFORMATION, Call:

800/424-9530 or 202/219-3420

SEE OPPOSITE SIDE FOR RUNOFF INFORMATION

0
ATTACHMENT 42
PAG F 2

0)F 2

ARKANSAS
RUNOFF

FOR COMMITTEES INVOLVED IN BOTH THE PRIMARY (05/26) AND RUNOFF

(06/09):
REPORT
Pre-Primary
48 Hour Notices
Pre-Runoff
48 Hour Notices

REG./CERT.
MAILING
DATE*
REPORTING PERIOD
0 /l/92
b
04/01/92 - 05/06/92"
---- See Below---05/28/92***
05/07/92 - 05/20/92
---- See Below----

July Quarterly

05/21/92 - 06/30/92

07/15/92

FILING
DATE
05/ 47"
05/28/92

07/15/92

48 BOUR NOTICES ON CONTRIBUTIONS
Notices are required if the committee receives contributions
(including contributions and loans from the candidate's personal
funds; and endorsements or guarantees of bank loans) of $1,000 or
more, during the period:

Primary 5/07 - 5/23
Runoff 5/21 - 6/06

The notices must reach the appropriate federal and state filing
offices within 48 hours of the committee's
contribution(s).

receipt of the

*Reports sent by registered or certified mail must be postmarked by
the mailing date; otherwise, they must be received by the filing date.
**The period begins with the close of the last report filed by the
If the committee has filed no previous reports, the period
committee.
begins with the date of the committee's first activity.
***The mailing date is the same as the filing date because the
computed mailing date would fall one day before the primary was held.

FOR INFORMATION, Call:

800/424-9530 or 202/219-3420

ATTIACHMENTr
12 DAY PRE

IA(;I1'

RUNOFF

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ATTACHMENT

EtIt At I I C IION COMMISSION

Roy 3. Shorter, Treasurer
Committee to glect Don Weis
4C00 Frontage Road
AR 72703
Iayettevilll,
IdentifiCatiOn "umber:
Veference:

SU IM

C00263699

12 Day Ipre-Runoff Report (5/7/92-5/20/92)

Dear Mr. Shortert
is prompted by the Commission*s preliminary
letter
This
review raised
referenced above. The
report(s)
the
review of
in the
contained
information
certain
concerning
questions
follows:
itemization
An
report(s).

Ncontributions

-Schedule A of your report indicates that your committee
48
may have failed to file one or more of the required
contributions
minute'
*last
regarding
notices
hour
received by your couittee after the close of books for
A principal campaign
12 Day Pre-Primary report.
the
in writing, within
Commission,
committee must notify the
or more received
$1,000
of
contribution
any
of
48 hours
an election. These
betveen two and twenty days before
are then reported on the next ceport
filed by the committee. To ensure that
be
required to
of last minute contributions
the Commission is notified
.
$1,000 or more to yov -campaign, it is recommended
of
checking
for
procedures
your
review
you
that
time
aforementioned
the
during
received
contributions
actions
legal
take
Although the Commission may
period.
response you wish to make concerning this matter
&a
(11 CrR 1104.5(f))
iI1be taken into consideration.
Any amendment or clarification should be filed with the Clerk
1036 Longworth souse Office
Representatives.
of
of the House
If you need assistance, please
Building, Washington, DC 20515.
toll-free number, (S00) 424-9530.
free to contact me on our
feel
219-3550.
(202)
is
My local number
Sincerely,
"/. KRobin Kelly
Reports Analyst
Reports Analysis Division

ATTACHMENT #5
DATE

MEMORANDUM TO FILES:
TELECON
,
VISIT

9/17/92

NAME OF COM4ITTEE: Committee to Elect Don Nelms - C00263699
SUBJECT:- Failure to File Required 48-Hour Notices
FEC REP:

Robin Kelly, PAD Analyst

COMMITTEE REP:

Roy Shorter, Treasurer

(501)

521-3613

*r. Shorter called to discuss the notice he had received
regarding the 48-Hour Notices. He said he realized that he
had missed reporting two, but only after the fact. He said
he would send in a letter explaining the situation.

ATTACHMENT

oCrAlAD UAll

17 -

77--

SEP 17 99
September

17.

1990

Robin Kelly. Reports Analyst
Federa) Election Commission
099 1 Streett N1
0453
eebilngtoa DC
Dear No.

Kelly:

letter follows up our telepbome convereatio
Tbl
earlier this morning regarding your review of our *lost
contributions reported om the 13 Day Pro-Rmaoff
lmute
Report (3/?/92-5/10/92) filed o or before 5/38/98.
At the time of filing. I was mot aware that loess 1
ezcess of $1.000 (made by the candidate from personal foods)
were als. considered to be contributions subject to the
43-hour special notice fillig requirement.
The Campaign 0uI: for Coagreosomal Candidates (July
19O0). om page 34. does mot defime a *last mimoto"
coatributiom to Include loans from the camdidate' persomol
eodule
ftods. Im odditiem. whon thm loose are reported orn
A 1toalqed Rceipts (FEC Form 5) as denoted Is the oaL'o
o page 40. they are reported as *Loans" Made or Guarasteod
by the Camdidate. mot "Cemtributiomeo.

9t was met ntil I received a copy of the orOelrrLSE
letter. om or about Jose 39t (addressed to the
proble"s
candidate. oudated-opy enclosed) from Jons a. Alkomo,
seladed
Chairma. that I reallsed the 46-bour reporting rol
coadideto leas.

Promptly. thoreafter. I haoe reported all oubooquost
"lost mlmuto ° costributioms (imcludlmg candidate lase from
persomal ftads) witbia 45-boure of reeolt by special sotieo.
Those receipts were also reflected on the July 10 quarterly
Report (5/21/0-6/30/03).
If you hove Gmy questiome regardiag this matter. plo6oo
The Committee to Blet Dom
do sot hesitate to coutact me at:
, or ell atl
11Y0Y
Klms. 4000 frontage d. Fayetteville. AR
at (601) 531-5011. Thask you for your *oasideratlom.

U
U

Ku U.~
ziII,'P

Respeotfully,

Cw
6

J. Shorter. Treasurer
?he Committee to slect son Rolo0
$
to lumbers COMO
Boy

DEMOCRAT * US CONGRESS * 3RD DISTRICT
00 ftmt
EA

s a Sa

Sine 0"

9 Son eft
.

55W W~
Si NO OMW

eze

is i

rNTi

4mum
1011

U-.

~
a.

FEDERAL ELECTION COMMISSION
999 E Street, N.W.
Washington,

D.C.

NSIDVE

20463

FIRST GENERAL COUNSEL'S REPORT
RAD Referral # 92L-24
STAFF MEMBER:
Holly Baker
SOURCE:

I N T E R N A L L Y

RESPONDENTS:

The Committee to Elect Don Nelms and
Roy J. Shorter, as treasurer
2 U.S.C.
2 U.S.C.

RELEVANT STATUTES:

G E N E R A T E D

S 434(a)(61
S 431 8H(A

GENERATION OF MATTER
The Office of

the General Counsel

received a referral

from the Reports Analysis Division ("RAD",
1991.
the

Attachment 1.

on October 14,

The basis for the attached referral

failure of The Committee to Elect Don Nelms and Roy J.

Shorter, as treasurer

("Committee") to

file two

forty-eight

hour notifications

'"48 Hour Notices") for

totaling $25,000.

Don Nelms lost the 1992 Primary Election

Runoff

in the

3rd Congressional

District

contributions

in the State cf

Arkansas with 42 percent of the vote.
II.

FACTUAL AND LEGAL ANALYSIS

Based on the Factual and Legal Analysis, see Attachment
this Office recommends the Commission find r-asen to
bel ieve the Respondents violated 2 U.S.C.
III

§ 434 a

DISCUSSION OF CONCILIATION AND CIVIL PENALTY
The Office of the General

Comn
mission

Counsel

find reason to believe that

recommends that the
the Committee violated

-2-

2 U.S.C. 5 434(a)(6).

In addition, this Office

recommends

with the
that the Commission offer to enter into conciliation
Respondents prior to a finding of probable cause to believe.

IV.

RECOMMENDATIONS

Open a MUR.

Don
Find reason to believe that The Committee to Elect
Nelms and Roy J. Shorter, as treasurer, violated
prior
2 U.S.C. 5 434(a)(6), and enter into conciliation
believe.
to a finding of probable cause to
Approve the attached Factual and Legal Analysis,
proposed conciliation agreement and the appropriate
letter.
Lawrence M. Noble

General Counsel

bate

Dat34

BY:

Lois G./Lerner
Associadte General Counsel

Attachments:
1. Referral Materials
2. Factual and Legal Analysis
3. Proposed Conciliation Agreement

BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of
The Committee to Elect Don Nelms
and Roy J. Shorter, as treasurer.

RAD Referral 492L-24

CERTIFICATION

I, Marjorie W.

Emmons, Secretary of the

Federal Election

Commission, do hereby certify that on November 5,
Commission decided by a vote of 5-0 to take the

1992,

the

following

actions in RAD Referral #92L-24:

Open a MUR.

Find reason to believe that The Committee
to Elect Don Nelms and Roy J. Shorter, as
treasurer, violated 2 U.S.C. 5 434(a)(6),
and enter into conciliation prior to a
finding of probable cause to believe.

Approve the Factual and Legal Analysis,
proposed conciliation agreement and the
appropriate letter, as recommended in the
General Counsel's Report dated
October 30, 1992.

Commissioners Aikens, Elliott, McDonald, McGarry and
Potter voted affirmatively for the decision; Commissioner
Thomas did not cast a vote.
Attest:

Date

W. mmons
secretary
S~e r rjor ofe the Commission

2:54 p.m.
Oct. 30, 1992
Fri.,
Received in the Secretariat:
a.m.
11:00
2, 1992
Nov.
Circulated to the Commission: Mon.,
p.m.
4:00
1992
5,
Thurs., Nov.
Deadline for vote:

FEDERAL ELECTION COMMISSION

November 12,

1992

Roy J. Shorter, Treasurer
The Committee to Elect Don Nelms
4000 Frontage Road
Fayetteville, AR 72703
RE:

MUR 3697
The Committee to Elect Don Nelms
and Roy J. Shorter, as treasurer

Dear Mr. Shorter:
On November 5, 1992, the Federal Election Commission
found that there is reason to believe that The Committee to
Elect Don Nelms ("Committee") and you, as treasurer, violated
2 U.S.C. 5 434(a)(6), a provision of the Federal Election
Campaign Act of 1971, as amended ("the Act").
The Factual
and Legal Analysis, which formed a basis for the Commission's
finding, is attached for your information.
Under the Act, you have an opportunity to demonstrate
that no action should be taken against the Committee and you,
as treasurer.
You may submit any factual or legal materials
that you believe are relevant to the Commission's
consideration of this matter.
Please submit such materials
to the General Counsel's Office within 15 days of your
receipt of this letter. Where appropriate, statements should
be submitted under oath.
In the absence of any additional information
demonstrating that no further action should be taken against
the Committee and you, as treasurer, the Commission may find
probable cause to believe that a violation has occurred and
proceed with conc~liation.
In order to expedite the resolution of this matter, the
Commission has also decided to offer to enter into
negotiations directed towards reaching a conciliation
agreement in settlement cf this matter prior to a finding of
probable cause to believe.
Enclosed is a conciliation
agreement that the Commission has approved.

Roy J. Shorter
page 2
If you are interested in expediting the resolution of
this matter by pursuing preprobable cause conciliation and if
you agree with the provisions of the enclosed agreement,
please sign and return the agreement, along with the civil
penalty, to the Commission.
In light of the fact that
conciliation negotiations, prior to a finding of probable
cause to believe, are limited to a maximum of 30 days, you
should respond to this notification as soon as possible.
Requests for extensions cf time will not be routinely
granted. Requests must be made in writing at least five days
prior to the due date of the response and specific good cause
must be demonstrated.
In addition, the Office of the General
Counsel ordinarily will not give extensions beyond 20 days.
If you intend to be represented by counsel in this
matter, please advise the Commission by completing the
enclosed form stating the name, address, and telephone number
of such counsel, and authorizing such counsel to receive any
notifications and other communications from the Commission.
This matter will remain confidential in accordance with
2 U.S.C. S5 437g(a)(4)(B) and 437g(a)(12)(A), unless you
notify the Commission in writing that you wish the
investigation to be made public.
For your information, we have attached a brief
description of the Commission's procedures for handling
possible violations of the Act.
If you have any questions,
please contact Holly Baker, the staff member assigned to this
matter, at
202) 219-3400.
Sincerely,

Joan D. Aikens
Chairman
Enclosures
Factual and Legal Analys:s
Procedures
Desionaticn cf Counsel F-rm
Conciliaticn Agreement

FEDERAL ELECTION COMMISSION
FACTUAL & LEGAL ANALYSIS

MUR 3697
RESPONDENTS:

The
and

Committee to Elect Don Nelms
Roy J. Shorter, as treasurer

This matter was generated based on information
ascertained by the Federal Election Commission ("the
Commission") in the normal course of carrying out its
supervisory responsibilities.

See 2 U.S.C. 5 437g(a)(2).

The Federal Election Campaign Act of 1971,
("the Act"),

as amended

requires principal campaign committees of

candidates for federal office to notify in writing either the
Secretary of the Senate, the Clerk of the U.S. House of
Representatives or the Commission, as appropriate, and the
Secretary of Sta te, of each contribution totaling $1,000 or
more, received b y any authorized committee of the candidate
after the 20th d ay but more than 48 hours before any
election.

2 U.S

. 434(auf$

,A.

The Act further requires

notification to be made within 48 hours after the receipt of
the contribution and to include the name of the candidate and
office sought,

t he date of receipt, the amount of the

contribution, an d the ldentificaticn cf the contributor.

Id.

The notificaticn cf these contr:butions shall be in addition
to all other

rep orting

requirements.

2 U.S.C.

5 434a)y6': B ,.
Accordinz
§ 100.7i

o 2 U.S.'.
,a loan

431,8),A) and 11 C.F.p.
.s

contribution at the time it is

0
-2-

that

made and is a contribution to the extent
unpaid.

Furthermore,

it remains

each guarantor or endorser of a loan

shall be deemed to have contributed that portion of the total
amount of the loan for which the guarantor or endorser
to be liable until

the loan is repaid.

agreed

2 u.s.c.

5 431(8)(B)(vii)(1) and I-I C.F.R. 5 100.7,,a)(l)(i)(C).
The Primary Election In the state of Arkansas was held
(n May 26,

1992.

Pursuant to the Act,

the Respondents were

required to notify the Commission, in writing, of all
contributions of $1,000 or more received from May - to May
23,

1992, within 48 hours of their receipt.

A review of the

Committee's 1992 12 Day Pre-Runoff Report identified two
contributions received on May 7 and May 15,

1992, of $1,000

or more (in the form of loans from the candidate) totaling
$25,000.

The contributions were reported on Schedules A and

C, with the candidate, Don Nelms, listed as making a $10,000
loan and a $15,000

loan to the Committee.

The Committee did

not submit two 48 Hour Notices for these contributions.
Therefore, there is reason to believe that The
Committee to Elect Don Nelms and Roy J. Shorter, as
treasurer, violated 2 U.S.C. 5 434ta,,%'

by failing to report

campaiqn contributions cf $>,OO or more, received after the
20th day, but more than 48 hours before the primary election,
within 48 hours of rece.p: of the contr:butions.

-1A

M- R,\t I I (IT1 )N

December 10, 1992

CERTIFIED MAI..
RETURN RECEIPT REQUESTED
Poy J. Shorter, Treasurer
The Committee to Elect Don Nelms
4000 Frontage Road

Fayetteville,

AF 72703
RE:

MUR 3697
Cmte to Elect Don Nelms

Dear Mr. Shorter:
On November 12, 1992, you were notified that the
Federal Election Commission determined to enter into
negotiations directed toward reaching a conciliation
agreement in settlement of this matter prior to a finding of
probable cause to believe. On that same date you were sent a
conciliation agreement offered by the Commission in
settlement of this matter.
Please note that conciliation negotiations entered into
prior to a finding of probable cause to believe are limited
t.o a maximum of 30 days. To date, you have not responded to
the proposed agreement. The 30 day period for negotiations
will soon expire.
Unless we receive a response from you

within five days, this Office will consider these
negotiations terminated and will proceed to the next stage of

the enforcement process.

Should you have any questions, please contact me at
202, 219-3400.
Sin ce re ly,

Holly Baker
Attorney

THE CONIITIiEE TO ELECT DON NELMS
4000 Frontage Road
Fayetteville. Arkansas 72703

December 16, 1992
Holly Baker. Attorney
General Counsel's Ofiice
Federal Election Commission
999 E Street NVN"
Washington. DC 2043
Dear %ls. Baker:
I respectfully request that no action be taken against the Committee or m.self. as tresurer.
as there was no willful neglect on the part of the committee or myself. At all times. we made
an honest attempt to complt with all reporting and special notice requirements. and with this
one exception. compliance %as full and complete.
The issue appears to center upon the confusion over definitional terms of a candidate "loan"
versus a candidate "contribution" as it relates to the 48-hour notice requirement. For FEC
quarterly and pre-election reporting purposes, a "candidate loan" is distinguished from a
"candidate contribution" and must be reported separatel.. However. for 48-hour special
notice reporting purposes. a "candidate loan" is not distinguished from a "candidate
contribution" and reported the same. This created the problem with our reporting the first
two candidate loans.
None of those assisting the candidate in the financial reporting had previous experience in
that function. including myself. Our entire knowledge of the requirements came from a
detailed review of the FEC materials furnished us and selected conversations with FEC. We
fully understand the importance of proper campaign reporting and certainly appreciate the
complexity of federal campaign law and regulations. However. an honest mistake was made
and once the definition of a candidate contribution was clarified to include a candidate loan.
the mistake was immediatel.y corrected. Xll subsequent candidate loans were reported
promptly and correctly.
Attached is an affidavit. under oath. setting out those facts which I believe should be
considered by you. and which I believe support our position that the Commission should take
no action against our Committee or m,,self.
In the event the affida'it and this letter are not sufficient to satis your inquiri
into our actions. and satisy you as to our good intentions, we would like to remain in contact
for further discussion. Should you need additional information, please contact me at 15 O11
521-3813.
Respectfully.

Roy J. Shorter. Treasurer
The Committee to Elect Don Nelms
Enclosures: 1) Reporting Problems Letter from Joan Aikens. undated
2) 12-Day Pre-Election Report Letter front Clerk of L S
House of Representaties. dated 5 5 92
3) Letter from our ('ommittev to Robin Kelly. dated 9 17,92

AFFDAVIT
STATE OF ARKANSAS
ss.
COUNTY OF WASHINGTON )
I, Roy J. Shorter, the undersigned, under oath, do of My own
personal knowledge make the following statements and declare
them to be true.
1.
1 first became aware ot the Federal Election Commission's
pre-probable cause letter (dated November 12, 1992) together with
enclosures,
and your certifiled letter
dated December 10, 1992,
December 14, 1992.
Although appropriately addressed, our campaign
otfice has effectively closed.
The normal business office of our
chairman accumulates the mail and notifies me when I should come
and pick it up.
I was not contacted until December 14, 1992 that
mail had accumulated.
Upon retrieving the mail your correspondence
was read.
At that time I promptly called Ms. Holly Baker with the
General Counsel, FEC.
2.
At the time of the two candidate loans in question, my
only
source of
guidance
for the
48-hour
notice reporting
requirement was
your Campaign Guide
(July 1988),
page
24,
"Last-Minute Contributions", which did not specify that "candidate
loans" are also included under that requirement.
The heading of
the section does not mention "Candidate Loans", nor is it mentioned
in the body of the requirement. There was simply nothing to place
me on notice that "Candidate Loans" might be included.
3. In reading the Campaign Guide, I was aware that candidate
loans were treated differently than contributions for reporting
purposes and that a loan was in fact distinguished from a
contribution.
Page 11 states that "personal funds loaned to the
campaign are reported as loans from the candidate from the outset",
and "personal funds donated to the campaign are reported as
contributions from the candidate."
Examples on page 40 indicate
that loans made by the candidate are to be reported under itemized
receipts as "Loans Made by the Candidate" and contributions from
the
candidate
are
reported
under
itemized
receipts
as
"Contributions from the Candidate".
4. At that time, I understood that once a candidate loan was
designated as a "loan", subject to repayment to the candidate, it
would not be considered a contribution, unless the candidate
specifically. forgave the debt.
Then, and only at the time of
forgiveness of the debt, would the loan be converted to a
contribution, and reported as such.
To this day, all loans
previously reported are still
subject to repayment and are shown on
the books as a debt owed the candidate by the Committee.

In my efforts to properly comply with all reporting
5.
requirements, I contacted an FEC specialist in March, 1992, to
determine proper reporting procedures for out-of-pocket expenses
paid by the Candidate. Following that conversation, I understood
that out-of-pocket expenses were deemed in-kind contributions from
the candidate and were not to be reported as loans, and that any
candidate contributions could not be converted to a loan at a later
At no time during this conversation was I advised of the
date.
inclusion of "Candidate Loans" for the purpose of the 48 hour
requirement.
6. in addition, at the time of the first two candidate loans
subject to 48-hour notice, which are in question, I also had
received two letters from the office of the Clerk, US House
of Representatives:
A) letter undated, regarding April 15, 1992 quarterly
reporting and,
B) letter dated May 5, 1992, regarding 12-day pre-election
reporting.
The second letter addressed the issue of the 48-hour notice,
but only referred to "contributions", similar to that in the
Campaign Guide (July 1988) on page 24. A copy of that letter is
attached, marked Exhibit 1.
7. My first notice of the similar treatment of candidate
loans and contributions for the 48 hour rule was upon my receipt of
an undated letter (addressed to the candidate) from Joan Aikens,
addressing reporting problems. A copy of that letter is attached,
marked Exhibit 2.
8. Thereafter, all candidate loans of $1,000 or more, falling
within the 20 day period prior to the election, were promptly
A candidate loan on June 3 was reported June 4 and a
reported.
candidate loan on June 4 was reported June 5.
9. 1 subsequently received a copy of your quarterly Report
Notice dated June 19,, 1992, which also clarified last minute
contributions to include loans from the candidate's personal
funds.
10.

Reports

1 have filed all required FEC Quarterly and Pre-Election
timely and accurately and properly separated candidate

loans from candidate contributions,
two, and Schedules A and C.

as required on FEC Form 3, page

I explained to Robin Kelly of the Commission on September
11.
17, 1992, by letter, that I was not aware that "candidate loans
made from personal funds" were also considered "contributions"n for
the 48 hour reporting rule, further advising her that the Joan

Aikens letter was my first knowledge of this inclusion.

A copy of

that letter is attached, marked Exhibit 3.
I have not previously served as treasurer, nor been
12.
associated in any position, with political campaigns until I
accepted this position with the Committee to Elect Don Nelms. This
was also the first political office sought by the candidate and
therefore his first experience with the campaign process. With the
exception of the first two 48 hour notices now in question, all
subsequent 48 hour notices were timely filed and all other
reporting requirements set forth by the FEC were timely and
completely met.
Further the
December, 1992.

affiant

sayeth

not.

Dated

this

day

Roy J. Shorter
WITNESS my hand and seal as notary public on the day above
written.
.xpie.
Notary /Oublid
My
Commission
Expires:

/-J

3MOR

ON*a I. 3''s sncrmw
8J 1w
m

ft. 2ubem

m Iim

Oeffice of the Clerk
oule of Reprentattbe
*asinuton,

IBC 20515-G01

May 5, 1992

TO:

Individuals SeeKing Election to the U.S. House of Representatives
and Political Committees Supporting Such Individuals Involved in
the Primary Election to be Held on May 26, 1992, in Arkansas, Idaho
and Kentucky

FROM:

DONNALD K. ANDERSON, Clerk
U.S. House of Representatives

SUBJECT:

12-Day Pre-Election Report of Receipts and Disburseamuts

This notice is being sent to ensure that you are aware of the due date
for the 12-Day Pre-Election Report -f Receipts and Disbursements for the primary
election in which you are involved.
Cnly those individuals who meet the following
definition of candidate are required to designate a principal campaign committee
and have that committee register and file reports under the Federal Election Campaign
Act, as amended.
If you do not meet this definition, no such designation or comiittee
filing is necessary.
Title 2 U.S.C. S431 of the Federal Election Campaign Act, as amended,

defines a "candidate" as:
... an individual who seeks nomination for election,
or election, to Federal office ... an individual shall
be deemed to seek nomination for election, or election -(A) if such individual has received contributions
aggregating in excess of S5,CC0 or has made expenditures
aggregating in excess of S5,- C: cr
(B) if such individual has qiven his or her consent
to another person to receive contributions or make
expenditures on behalf of such individual and if such
person has received such contributions aggregating in
excess of $5,000 or has made expenditures aggregating
in excess of $5,000.

to file a
Report is
election;
certified

Political committees supporting candidates as defined above are required
Pre-Election Report of Receipts and Disbursements on FEC Form 3. This
due in my office by the close of business on the 12th day preceding the
however, this Report will be considered timely filed if it is mailed
or registered by midnight of the 15th day preceding the election. The

OVER

-~r

(1 of

Report should cover the period of time from the close of books of the last Report
(or the day on which any financial activity commenced) through the 20th day preceding
the election. The following dates are provided for your convenience:

Type of Report

Pre-Election

May 14,

Closing Date

Mailing Date If Sent
Registered/Certified

Filing Date

May 6, 1992

May !i, 1992

1992

or more received after the 20th day, but more
Contributions of $i,?0
Xthan 48 hours before the election, rust be reported within 48 hours of their receipt.
This notification shall be in writing and shall :nciuce the name ot the candidate
and office sought ty the candidate, the identification of the contributor, and the .........
date of receipt and a.ount of the ccntribution.
If additional committees are authorized by the candidate, their Pre-Election
Reports should be filed with the principal campaign committee which shall compile
and file such reports with the Clerk of the House of Representatives.
If you have any questions regarding this matter or need any additional
forms, please do not hesitate to contact -y staff in the Office of Records and
20515-6612,
Registration, 1036 Longworth House Office Building, Washington, DC
202) 225-1300.

r--/

F /

or-

,,1

ERAL
E

Dear

0 N,

C (

:an-_43ae:

_.ems

.ears.

a-....
n
r::no regulations and
Teem v'ery complex. Accurate
n-. expenc:tures is, nowever,
:3.-1a Iz2nece::2
r
e -n_,- -_.-n.-_ -_?-ne :eoerai election laws.
• a -soe
e..er

- E #Z'a.aw
nez::.

*-n

several serious
-ave encountered with

:na--

- z

-:-

-ase

-e-nFeE.C, which is
. nai:v
n..
of thousands of
.a r
.s 7 7e
ast
3n
an-:ate cr campaign wants.
ie re
r,
n
PSC t
U... ne ion sDecific rules in
:rder -o ne
'.'ou avo:
".ne more common recurring
a :9'
:ooms
r:n.r e.'v
s e.e:::ns
3e..nz
" n e"a

'z
" '. n'
-c
Z-"Sl.
n.s:u3

?ROBLEM ONE:

n"-_

:an "
ns

le_7'.,
-r,,.z

Correctina Contributions That Appear Excessive

:-e "nd::duai
may contribute
': :ntr-:ution
.'. beyond that is
'S..2..eans "na': any -neck from an
an S..
"
usoec:.
To avoid beina
_ .
>2.. _- 3: e.
".ne excessive
""....
'
oactr:buted to a
:eces::::: 2v:2.
... e -:n:r ut
tro
a uture
-:ut=n
7 ed-es- =nat'cns must ODe signed
eiec :.
e r 0orC
.emse.s.
e
:.eoroziem :s fixed, :he
:nc.
:v
2
e 0Le -: :'.
du repor
the
. iuse
.:
e Joncr :s being contacted
'v . - Z.':=es n23ve :und :: heloful
---- :neso '.-e e'eSS
"c.ace
S
•:- separate account
cex"ces
res:.."e.
"=ess
:ne :amain receives 3
:nec
-- a cu:: o~n
-s :ne

amoun -2.

*--

**--

mus:

rece:
3ecr '

:e exces
:ne
-r-1,31" a. me>:.

su!I e en:

_?X C

-*..

.....

,ont r

:as a:

outors,
. the

"< -.ave Sen: ".'our treasurer a
.....
ess "- more oeta,

PROBLEM TWO:

Candidate Self-Support

As the candidate, you are not bound by the $1,000 contribution
limit. Any personal funds you give to your campaign, however,
must be reported as a contribution regardless of whether you
If you
donate the funds as a direct contribution or as a loan.
loan money to your campaign, special reporting is required to
-distinguish -uture repayments :r.cm wnat otherdlse would look
like personal enrichment.
to
we also want to note that "z you maxe a direct contribution
the
ask
and
loan
a
alft
the
campaign, you cannot !ater call
your
Committee to pay it bacx to Pcu. :hus, -f you hope eventually
to receive repayment, make clear fr.m the beginning that the
icnatlon is a loan.
You must also be sure that :e money ana assets you contribute
or joan to your campaign Zeicng to you oersonailv, and not to
or :r:encs, or to any other
your spouse, parents, :_
Inalvidual.
PROBLEM TSREE:

48-Hour Reporting

day pre-eleccion report,
After your :ommirtee nas fiac a
disclosing every
notice
speciai
a
file
your campaign must
before the
shortly
received
more
or
$1,000
of
contribution
election. The notice must reacn the appropriate filing offices
the ccntrbution. This rule comes
48 hours of recez
.it..n
into play beginning wi:n z-e zUt-oaf date for the ore-election
the eec:on) and remains in effect until
.eport
(20 days before
48 hours before the eiectIcn. last-minute contributions must
-ecor: after the election.
also be reported in :ne
so applies to last-minute
:eoort-nc
Rememer, the 48-2our
campaign, as well as to
your
,t
c
r..
1cans
and
.t.r ibutlons
-cans from -ndIviduais and :o=-itees, and endorsements and
guarantees cf banx :cans.
:he aetails cn :nese t-ree -Atzrs, ana vrtuaili everything
else you neea to know to stay "ithn :he federai ejection laws,
are set out in your Camoaln ,qide. :f 'cu would like extra
cocies cf this guide for /our zampalan worKers, call us on
.naf'', we are happy to send a free
1-600-424-9530. Add.t
suoscrOticn to our montnv 'ewsietter, the Record, to anyone
automatically sent to
you designate. (A free suis...... ns
to call us at the above
free
feei
also
?lease
treasurer.;
tour
numner, or have your t-reasurer ana/or campaign accountant do so,
matters.
f you have any spec.fic questlons aDout these or other
these
takes
As this letter should indicate, the Commission
,
reporting obligatlons seriously.
Sincerely,

Chairman
C. Aikens,
Joan
Federai
Election Commission

September

17,

1992

Robin Kelly, Reports Analyst
Federal Election Commission
999 E Streett NW
Washington DC
20463
Dear

Ms.

Kelly:

Th is letter follows up our te lephone conversation
earl ier this morning regarding you r review of our "last
minute' contributions reported on the 12 Day Pre-Runoff
Report (5/7/92-5/20,92) filed on o r before 5/28/92.
At the time of fi ling, I was not aware that loans In
excess of $1,000 (m ade by the candidate from personal funds)
were also considere d t o be contributions subject to the
48-hour special not Ice
filing requirement.
The Campaign G ulde for Congressional Candidates (July
1988), on page 24, does not define a "last minute"
contribution to Inc lude loans from the candidate's personal
when the loans are reported on Schedule
funds.
In addition
A Itemized Receipts (FEC Form 3), as denoted in the example
page 40, they are reported as "Loans" Made or Guaranteed
the Candidate, not "Contributions".
It was not until I received a copy of the "recurring
problems" letter, on or about June 1st (add ressed to the
candidate, undated-copy enclosed) from Joan D. Aikens,
Chairman, that I realized the 48-hour repor ting rule included
candidate loans.

thereafter, I have reported all subsequent
Prompt ly
18
contributions (including candidate loans from
"last minut e
48-hours of receipt by special notice.
personal fu nds) with
so reflected on the July 15 Quarterly
These recei pts were
2 ).
Report (5/2 1/92-6,,'30
I f y'0
I ol t ht?!
Ne Il s , .501)

h Js

I! sS.

eS t

(I)

at. ( 50 1 )

i" .

"."

DEMOCRAT

i,( '.a~e

The Committee to Elect Don Nelms

C t~t

f'C

ken Lance, Chairman

CoInm itt,iN nl 1)(e

US CONGRESS

a t ter, please
to Flect Doll
727U3,t or call me
i er at
iol.

,
)2,

*3RD

' 17 1 2 Eait Center

,ect Don

,
3

Nelms

DISTRICT

I FaN etteville, Arkansas 7701

MANIBU

MSS

Ms. Joan Aikens, Chairman
Federal Election Commission
999 E Street NW
Washington, DC 20463
January 23, 1993

...

RE: MUR 3697
Committee to Elect Don Nelms

Dear Ms. Aikens:
I am writing you concerning the fact that your office has found reason to
believe that our campaign committee and Ro, Shorter. as treasurer, has violated the
48-hour notice reporting rule.
Mr. Shorter did have full responsibility for reporting to your commission all
activity of our campaign, and he was provided a manual from your office and we had
complied with all of its regulations as stated therein.
Your campaign guide did not state that a candidate loan should be reported as
a contribution for 48-hour reporting requirements. Your guide specifically states, on
page 11. that "personal funds loaned to the campaign are reported as loans from the
candidate from the onset."
The onh letter I know of that was sent to me was a letter from you that I
personally received at my home address. This letter (undated) addressed the 48-hour
reporting problem.
At the time. I was travelling and was involved in our campaign. I did not read
it until approximately two weeks after it had arrived. After reading this letter, I saw
no need to contact Mr. Shorter because I assumed the campaign guide covered those
topics of your letter and he is a CPA who is very accurate in reporting these types of
matters. Your letter gave no indication that it contained addition regulations
different from those in your campaign guide.
To my knowledge, that was the only additional information we received that
specifically addressed the issue of candidate loans to be reported as contributions for
48-hour notice purposes. Your campaign guide does not state this.
I will note that vou state you have sent this letter, as well as a report notice to
our campaign committee, however. our records do not show that we ever received
these items.
During my campaign it was well known that I was personally funding my
campaign. This was because I did not want to be affected by any adverse influence by
special interest groups. I stated this position on numerous occasions publicly. There
was no way that any of my loans to the campaign committee could have been
construed as being deceiving to the public or any other candidate running within the
3rd Congressional District.

Ms. Joan Aikens
January 23, 1993
Page Two
Your commission has provided us a manual, we followed its rules, and we
cannot find any notices of revision until after the fact. I suggest that this manual
should have been revised to make this 48-hour notice issue clear or that we should
have been notified b.* certified mail or its changes. Mr. Shorter received no
notification of %ourchanges and I did not make a connection from your letter that
you were. in fact. making new rules.
I request that you take no further action against our committee and find that
there was no violation or penalty.
Ms. Aikens. if iou want to discuss this matter with me personally. please let
me know. I'll be happy to cooperate with %ouin any "a%.
Sincerelv yours.

Don Nelms
cc: Holly Baker. Attorney

>>
NI

9fj,

~Fn

I:t.6

•

F.E.C.
-

, ," , , .,

BEFORE THE FEDERAL ELECTION COMMISSION

SENSITIVE

In the Matter of

MUR 3697
The Committee to Elect Don Nelms

and Roy J. Shorter, as treasurer

GENERAL COUNSEL'S REPORT
I. BACKGROUND
Attached is a conciliation agreement which has been signed
by Roy J. Shorter, the treasurer of the Committee to Elect Don
Nelms ("Committee").
This matter began as a referral from the Reports Analysis
Division on October 14,

1992.

The Committee failed to file two 48

Hour Notices for candidate loans totaling $25,000 in the 1992
primary runoff election held on June 9, 1992.
Arkansas' 3rd congressional district.

Don Nelms lost in

On November 5, 1992, the

Commission found reason to believe that the Committee had violated
2 U.S.C. S 434(a)(6)(A).
conciliation agreement

The Commission also approved a proposed

-2-

check

II.

for the civil penalty has

been

received.

Attachment

RECOMMENDATIONS
I.

Accept the attached conciliation agreement with
The Committee to Elect Don Nelms and Roy J. Shorter,
as treasurer.

-3-

Approve the appropriate letter.

the file.

Lawrence M. Noble
General Counsel

(7K

BY:

Date

Lois G. Lern
Associate Ge

Attachments
1. Conciliation Agreement
2. Photocopy of civil penalty check
Staff Assigned:

Holly Baker

r
ral Counsel

BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of
The Committee to Elect Don Nelms
and Roy J. Shorter, as treasurer.

MUR 3697

CERTIFICATION

I, Marjorie W. Emmons, Secretary of the Federal Election
Commission, do hereby certify that on April 5, 1993, the
Commission decided by a vote of 5-0 to take the following
actions in MUR 3697:
1.

Accept the conciliation agreement with
The Committee

to Elect Don Nelms and

Roy J. Shorter, as treasurer, as
recommended in the General Counsel's
Report dated March 30, 1993.
2.

Close the file.

Approve the appropriate letter, as
recommended in the General Counsel's
Report dated March 30, 1993.

Commissioners Aikens, Elliott, McGarry, Potter and
Thomas voted affirmatively for the decision; Commissioner
McDonald did not cast a vote.
Attest:

Date

Received in the Secretariat:
Circulated to the Commission
Deadline for vote:

(WlAdtJ

(4/t

Marjorie W' Emmons)
'Secretary of the Commission
Wed.,
Wed.,
Mon.,

March 31, 1993 12:11 p.m.
March 31, 1993
4:00 p.m.
April
5, 1993
4:00 p.m.

BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of

The Committee to Elect Don Nelms
and Roy J. Shorter, as treasurer

)

MUR 3697

CONCILIATION AGREEMENT

This matter was initiated by the Federal Election
Commission ("Commission"),

pursuant to information

ascertained in the normal course of carrying out its
supervisory responsibilities.

The Commission found reason to

believe that The Committee to Elect Don Nelms and Roy J.
Shorter, as treasurer ("Respondents"), violated 2 U.S.C.
S 434(a)(6).
NOW, THEREFORE, the Commission and the Respondents,
having participated in informal methods of conciliation,
prior to a finding of probable cause to believe, do hereby
agree as follows:
I.

The Commission has jurisdiction over the

Respondents and the subject matter of this proceeding, and
this agreement has the effect of an agreement entered
pursuant to 2 U.S.C. S 437g'a' 4 i A' I
II.

Respondents have had a reascnace opportunity t:

demonstrate that no action should be zaken :n this matter.
III.

Respondents enter vcounza'

v "nto th:s agreement

with the Commission.
IV.

The pertinent facts in this matter are as follows:

-21.

The Committee to Elect Don Nelms is a

political committee within the meaning of 2 U.S.C. 5 431(4),
and is the authorized principal campaign committee for Don
Nelm's 1992

congressional campaign.
2.

Roy J.

Shorter is the treasurer of The

Committee to Elect Don Nelms.
3.
amended

The Federal

("the Act"),

Election Campaign Act of 1971,

requires principal campaign committees

of candidates for federal office to notify in writing either
the Secretary of the Senate,

the Clerk

of the U.S. House of

Representatives or the Commission, as appropriate, and the
Secretary of State, of each contribution totaling $1,000 or
more,

received by any authorized committee of the candidate

after the 20th day but more than 48 hours before any
election.

2 U.S.C.

5 434(a)(6)(A).

The Act further requires

notification to be made within 48 hours after the receipt of
the contribution and to include the name of the candidate and
office sought, the date of receipt,

the amount of

the

contribution, and the identification of the contributor.
The notification of these contributions
to all other

reporting requirements.

Id.

shall be in addition

2 U.S.C.

S 434 al!6)(B,.
4.

According to

C.F.R. $ 100.7[a ilvfB,,

2 U.S.C.

a i -an Is a cinto:ib2t

it is made and is a contribution to t e extent
remains unpaid.

and

n at the time
that

Each guarantor or endorser of a loan shall

be deemed to have contributed that portion of the total

-3-

amount of the loan for which the guarantor or endorser agreed
to be liable until the loan is repaid.

2 U.S.C.

5 431(8)(B)(vii)(I) and 11 C.F.R. 5 100.7(a)(1)(i)(C).
5.

The Respondents received on May 7 and May 15,

1992

t:wo contributions

loan

I:rom the candidate)

of $1,000 or more (in the form of
totaling $25,000.

The contributions were reported on Schedules A

and C, of the 1992 12 Day Pre-Runoff Report, (with the
candida te, Don Nelms, listed as the maker of a $10,000 loan
and a $ 15,000 loan to the Committee).
7.

The Respondents did not submit 48 Hour Notices

for the se contributions.
V.

The Respondents failed to report campaign

contributions in excess of $1,000 received after the 20th
day, but more than 48 hours before the primary election,
within 48 hours of receipt of the contributions, in violation
of 2 U.S.C. 5 434(a)(6).
VI.

Respondents will pay a civil penalty to the

Federal Election Commission in the amount of Three Thousand
Dollars

($3,000) pursuant to 2 U.S.C. $ 437g(a)(5)(A).

VII.

The Commission, on request of anyone filing a

complaint under 2 U.S.C.

5 43Tga,a

at issue herein or on :ts own
with this agreement.

c
nzerning the matters

may
a

e,.-iew -cmpiiance

If the CommIsscn Leh1e es that this

agreement or any requirement
-

herecf has Ieen ,v4clated, it

-4-

may institute a civil action for relief
District Court
VIII.

in the United States

for the District of Columbia.

This agreement shall become effective as of the

date that all parties hereto have executed same and the
Commission has approved the entire agreement.
IX.

Respondents shall have no more than 30 days from

the date this agreement becomes effective to comply with and
implement the

requirement

ccntained in this agreement and to

so notify the Commission.
X.

This Conciliation Agreement constitutes the entire

agreement between the parties on the matters

raised herein,

and no other statement, promise, or agreement, either written
or oral, made by either party or by agents of either

party,

that is not contained in this written agreement shall be
enforceable.

FOR THE COMMISSION:
Lawrence M. Noble
General Counsel

BY:
Lois G. L ,1'er
Ass'6ciat ' General Counsel

Date

FOR THE RESPONDENTS:

(Namsi'
Position

(

FFDE R.,
M IIf

\- )

Aril

1993

Roy J. Shorter
c/o Nelms Motors, Inc.
2781 North Colleg e St.
Fayetteville, AR
2703
RE:

Dear Mr.

MUR 3459"
ommittee to Elect Don Nelms
and Roy 2. Shorter
as treasurer

Shorter:

On April 5, "993, the Federal Electicn Commission
accepted the signe d conciliation agreement a nd civil penalty
submittedI on your behalf in settlement of a violation of
2 U.S.C. § 434(a)1 6)(A), a provision cf the Federal Election
Campaign Act of 19 71, as amended "the Act" • Accordingly,
the file has been closed in this matter.

The confidentiality provisions at 2 U.S.C.
S 437g(a(12) no longer apply and this matter is now public.
:n addition, although the complete file must be placed on the
public record within 30 days, this could occur at any time
following certification of the Commission's vote.
If you
-wish to submit any factual or legal materials to appear on
the public record, please do so as soon as possible. While
the file may be placed on the public record before receiving
your additional materials, any permissible submissions will
be added to the public record upon receipt.
Please be advised that information derived in
connection with any conciliation attempt will not become
public without the written consent of the respondent and the
Commission. See Z U.S.C. 5 437ga1(4i(B1.
The enclosed
conciliation agreement, however, will become a part of the
public record.
Enclosed you will find a copy of the fully executed
conciliation agreement for
files.
-f you nave anv,,
Questions, please oontact -e at:
2
-347
7Our

At-, rne

Enclosure
Conciliation Aqreement

FEDIRkL EItCIION COMM,',i ISSI()N

THIS IS THE ET -T lR
DATE F:L''D
CERA' .

;

_69
CAA NO. 2-,

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