From the FEC

For Immediate Release
April 20, 2004 Contact: Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis
BUSH-CHENEY 2000 TO PAY $90,000 CIVIL PENALTY
FOR FAILING TO DISCLOSE RECOUNT ACTIVITY
WASHINGTON -- The Federal Election Commission (FEC) has entered into a
conciliation agreement with Bush-Cheney 2000, Inc. resulting from the
failure to report to the FEC receipts and disbursements associated with its
recount activities. Bush - Cheney 2000, Inc. has agreed to pay a $90,000
civil penalty.
According to the conciliation agreement, Bush - Cheney 2000 held a bank
account designated 3Bush-Cheney 2000, Inc. - Media.2 After the November 7,
2000 presidential election, the Committee redesignated this bank account
3Bush-Cheney 2000, Inc. - Recount Fund2 and used the account to raise funds
and pay costs associated with the recount. However, the Committee failed to
include that activity in disclosure reports filed with the Commission.
The Federal Election Campaign Act (the Act) requires authorized committees
of candidates for federal office to report the total amount of all receipts
of disbursements in committee accounts, and to itemize them when the
aggregate amount or value exceeds $200 in an election cycle. In Advisory
Opinions 1998-26 and 1978-92, the Commission held that while separate
organizations established solely to fund a recount effort would not be
required to file disclosure reports, a federal political committee
establishing a bank account for recount purposes must report those receipts
and disbursements.
Filings submitted to the IRS in 2002 and 2003 suggest the recount account
raised approximately $11 million and spent approximately $13 million.
Bush- Cheney 2000 admitted that the failure to report the receipts and
disbursements associated with its recount activity and to properly itemize
them as 3other receipts2 and 3other disbursements2 violated the Act. The
committee agreed to cease and desist from violating these sections of the
Act and agreed to submit a miscellaneous filing to the FEC that discloses
and itemizes, where appropriate, its recount receipts and disbursements.
The investigation stemmed from a complaint filed by Terence R. McAuliffe,
Chairman of the Democratic National Committee.

1. MUR 5199 RESPONDENTS: Bush-Cheney 2000, Inc., David Herndon,
treasurer
COMPLAINANT: Terence R. McAuliffe, Chairman, Democratic National
Committee
SUBJECT: Failure to report receipts and disbursements for recount
activities
DISPOSITION: Conciliation Agreement: $90,000 civil penalty
DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available
from the Commission1s web site at http://eqs.sdrdc.com/eqs/searcheqs by
entering 5199 under case number. They are also available in the FECs Public
Records Office at 999 E St. NW in Washington.
*There are four administrative stages to the FEC enforcement process:
1. Receipt of proper complaint 3. "Probable cause" stage
2. "Reason to believe" stage 4. Conciliation stage
It requires the votes of at least four of the six Commissioners to take any
action. The FEC can close a case at any point after reviewing a complaint.
If a violation is found and conciliation cannot be reached, then the FEC can
institute a civil court action against a respondent.
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