MIE FIlUD c Nmm. - · PDF fileInvestigator Keg Ferris of my ... Approximately $ 60,000.00...

FEDERAL ELECTION COMMISSIONWASG WTOI. OC

ThiS IS X EIN61N6 CF MM

MIE FIlUD c Nmm.__

- I 5-V600"

& EMIIft Aim S UN $a me" am& MA!L ROH 0)M

17t K SbesUS IW.D=" ,Ju 8 9 35JUN 51 M

Nos. Lois LernerAssociate General Counsel

for EnforcementFederal Election Cmission999 E Street, N.W.Washington, DC 20463

Dear No. Lerner:

Pursuant to the authority of Section 601 of the Labor-KanangementReporting and Disclosure Act of 1959, as Amended (UEMRDA"), andreceipt of a complaint, this Office is conducting an investigationinto the election of General Officers of the United Brotherhood ofCarpenters and Joiners of America, AFL-CIO (P"UBC), which wascon on October 10, 1991. Investigator Keg Ferris of myoffice previously contacted you for advice on handling investiga-tive matters under the Federal Election Commission's Jurisdiction.

One of the allegations set forth in the complaint to the secretaryof Labor concerned the use of QlOYer checkoff mechanim tocollect funds for the UBC's incumbant General President's campaignfund. Investigation into this allegation has revealed evidence ofwhat we believe constitute violations of 11 CFR 102.6 (c)(4) and(5) and possibly other provisions of the Federal Election CampaignAct of 1972. For these reasons, we are referring this matter toyour office for consideration.

Below is a summary of the relevant investigative findings:

The Carpenters Legislative Improvement Committee ("CLICN), is theUBC's federally-registered political action committee. CLIC isadministered at the UBC General Office, 101 Constitution Ave., NW,Washington, DC 20001.

One of the methods by which CLIC raises funds is through voluntaryemployee payroll deductions. Employees of the UBC and itsaffiliated district councils and local unions contribute to CLICby authorizing automatic deductions, usually one-percent of theirearnings, from their paycheck each pay period.

The Los Angeles District Council of Carpenters (NLADC"), acollecting agent for CLIC, failed to turn over the moneys,collected for CLIC by checkoff, to the UBC for the period July 1990through September 1991. Approximately $ 60,000.00 was collectedfor CLIC during this period. These funds were retained in the LADCgeneral fund account.

on 3eptor 3, 1991, between 79 and S TA " plye signed formwhich authorized the LADC to rescind their CLIC payroll deductionsand direct their future payroll deduotions AM_ her ravioUislyduft" oSM*b IM to = r, to the inWbet GneralPresiampgn fmd, known as the NPresidentl.' Comitteo .

On S 26, 1991, shortly before the O 10, 1991 UUCGeneral Officer election . a LWC check for $ 50, 0000- 00 Comprisedof previously collected CLIC funds, was paid to the President'sComittee.

In siNOry, the LADC not only withheld moneys collected for CLICfrom the parent organization, but later diverted these funds to alabor union officer election campaign.

The investigation also revealed that twelve (12) other UBCaffiliates employ similar payroll deduction methods to Collectfunds for the Presidontos Cnitt. The payroll deductionmthods, howeve, did mot retroactively apply to previously-

C14 Collec a ted CLIC con tribuions.

I reaust that loUr office conside tbe fndinas and takehatee actin appropiate. as this mtter relates

Cloeely to al imsthis Office IS investigating whder the

If you have any questions or if further information on this matteris needed, please contact Supervisory Investigator Michael B.Cahir. Thank you for your consideration of this matter.

Sincerely,

Robert L. NerrinerArea Administrator

FEDERAL ELECTION COMMISSIONWAS"INGTON. DC 20463

June 16, 1992

Robert L. Herriner, Area AdministratorOffice of Labor-Management StandardsSuite 558, Riddell Bldg.1730 K Street, NWWashington, DC 20006

RE: Pre-NMR 262

Dear Mr. Herriner:

This is to acknowledge receipt of your letter dated June 5,1992, advising us of the possibility of a violation of theFederal Slection Campaign Act of 1971, as amended ('the Act')by Carpenters Legislative Improvement Committee, the Los AngelesDistrict Council of Carpenters, and the-United Brotherhood ofCarpenters and Joiners of America. We are currently reviewingthe matter and will advise you of the Conission'sdetermination.

If you have any questions or additional information, pleasecall Jose Rodriguez, the attorney assigned to this matter, at(202) 219-3400. Our file number for this matter is Pro-MUR 262.

Pursuant to 2 U.S.C. 5 437g(a)(4)(B) and S 437g(a)(12)(A),the Commission's review of this matter shall remain confidentialuntil the file has been closed.

Sincerely,

Lawrence M. NobleGeneral Counsel

BY: Lois G. rnerAssociate General Counsel

- ~

~4-' .141K*RECEIVED

F.E.C., :cREAR;AT

SOURCE:

333IOND3mTS:=

FEDERAL ELECTION COMMISSION SN TVE999 R. Street, N.W.Washington, D.C. 20463

FIRST GgugwL COUNSEL'S REPORT

Pre-MUR 262

STAFF MEMBER Jose H. Rodriguez

INTE RULLY GENERATED

The Carpenters Legislative Improvement Committeeand James S. Bledsoe, as treasurer

The Los Angeles District Council of Carpenters

NILVANT STATE:

INTEOMAL REPORTS CHECKED:

2 U.S.C. S 432(b)(2)

11 C.F.R. S 102.611 C.F.R. S 102.8(b)

Referral from U.S. Department ofLabor

FEDERAL AGENCIES CHECKED: None

I. GENERATION OF RATTER

On June 5, 1992, the Office of the General Counsel received

a referral from the U.S. Department of Labor alleging violations

of 11 C.F.R. I 102 .6(c)(4) and (5) by the Carpenters Legislative

Improvement Committee, the separate segregated fund of the

United Brotherhood of Carpenters and Joiners of America,

AFL-CIO. The Los Angeles District Council of Carpenters is a

collecting agent for the Committee.

II. FACTUAL AND LEGAL ANALYSIS

A. The Law

Pursuant to 2 U.S.C. S 432(b)(2)(A) every person who

receives a contribution of $50 or less for a political

comittee, which is not an authorized committee, shall forward

-2-

such contribution to the treasurer of the committee within 30

days of receipt. See 2 U.S.C. 5 432(b)(2)(A) and 11 C.F.R.

I 102.8(b)(1). Additionally, every person who receives a

contribution in excess of $50 for a political committee, which

is not an authorized committee, must forward the contribution to

the treasurer within 10 days along with the name and address of

the contributor and the date of receipt of the contribution.

gee 2 U.S.C. j 432(b)(2)(B) and 11 C.F.R. 5 102.8(b)(2).

Collecting agents are required to meet the transmittal and

reporting requirements of 11 C.F.R. S 102.8. See 11 C.F.R.

S 102.6(c)(4) and (S). A collecting agent is an organization or

committee which collects and transmits contributions to a

separate segregated fund to which the collecting agent is

related. 11 C.F.R. I 102.6(b)(1). A collecting agent may be a

local unit of the connected organization of the separate

segregated fund. See 11 C.F.R. S 102.6(b)(1)(iii). A separate

segregated fund is responsible for ensuring that its collecting

-' agent meets the recordkeeping, reporting, and transmittal

requirements of 11 C.F.R. 5 102.6. 11 C.F.R. 5 102.6(c)(1).

B. Analysis

Carpenters Legislative Improvement Committee ("CLIC")

registered as a separate segregated fund on April 14, 1972.

CLIC's connected organization is the United Brotherhood of

Carpenters and Joiners of America, AFL-CIO, ("UBCO). The Los

Angeles District Council of Carpenters (*LADC") is an affiliated

district council of UBC. As part of its investigation into the

funding of UDC's incumbent General President's re-election fund

-3-

(a/k/a the President•s Committee), the Department of Labor has

discovered that LADC as a collecting agent failed to turn over

to U&C approximately $60,000 in contributions to CLIC. These

contributions were made by LADC employees through a voluntary

employee payroll deduction plan. As explained, employees of UBC

and its affiliated district councils, and local unions,

contribute to CLIC by authorizing automatic deductions from

their paycheck each pay period. The referral notes that for the

period from July 1990 to September 1991 LADC failed to turn over

to ODC contributions collected for CLIC by check-off. These

funds veroe instead, retained in the LAD general fund.

It is further noted that on September 3, 1991, between 79

and 81 LADC employees signed forms authorizing LADC to rescind

their payroll deductions and direct their future payroll

deductions, and their previously deducted contributions to CLIC,

to the President's Committee. Subsequently, on September 26,

1991, shortly before the October 10, 1991, UBC General Officer

election, LADC paid $50,000, comprised of the previously

collected CLIC funds, by check to the President's Committee.1

In sum, LADC retained for a 16 month period funds totaling

$60,000 designated as contributions to CLIC, which were

retroactively redesignated by the contributors to another,

1. The Department of Labor has informed this Office that the$10,000 in redesignated CLIC contributions not transferred tothe frol"demt's Comittee remins in LADC's general fund.

. . ..

-4-

non-federal, fund.2 By automatically deducting contributions

for CLIC from its employees' paychecks LADC was acting as a

collecting agent for the committee. Therefore, pursuant to

Commission regulations these funds, along with any required

contributor information, should have been transferred to CLIC

within a maximum of 30 days. See 2 U.S.C. S 432(b)(2) and

11 C.F.R. S 102.8(b).

As noted, pursuant to Section 102.6(c)(1) of the

Commission's Regulations, separate segregated funds are

responsible for ensuring that their collecting agents coqply

with the transmittal and reporting requirements of 11 C.F.R.

I 102.8(b), which are the same as those of 2 U.S.C. $ 432(b)(2).

Therefore, this Office recommends that the Commission find

reason to believe Carpenters Legislative Improvement Committee

and its treasurer violated 2 U.S.C. S 432(b)(2) by failing to

ensure that its collecting agent comply with the Act's

transmittal and reporting requirements.

There is, however, no indication that the Commission

intended Section 102.6(c)(1) to immunize collecting agents who

fail to comply with the Act's transmittal and reporting

requirements. The Commission's Explanation and Justification

for this provision explains only that its inclusion "is intended

2. The referral also notes that employees of twelve other UBCaffiliates having similar employee check-off contributionprograms also redesignated their contributions to thePresident's Committee. Unlike the above situation, however,these redesignations were not retroactive and, therefore, didnot affect any previously collected contributions to CLIC.A Mcorim ly, there does not appear to be any violations of the

~t~4~t~g*~omthese actions.

-S-

to encourage separate segregated funds to ensure that those

collecting contributions on their behalf follow the Act and

regulations." 46 red. Reg. 26297 (1983). In fact, the

Comeissionws Explanation and Justification further explains that

Section 102.8(c)(4) "clarifies that collecting agents must

follow the requirements of 11 CVI 102.8." Id. This suggests

that the collecting agents, like any other individuals or

entities forwarding contributions under Section 432(b)(2), are

separately liable if they violate the Act's tranmittal and

reporting requirements. Accordingly, this Office further

recam-eda that the Commission find reason to believe the Los

Angeles District Council of Carpenters violated 2 U.S.C.

I 432(b)(2) by failing to transfer funds collected for CLIC

within the required 10 or 30 day period.

II. DISCUSSION OF CONCILIATION AND CIVIL PENALTY

:~fl~

IV. BCONNDTzoN

1. Open a RM.

2. Find reason to believe that The Los Angeles DistrictCouncil of Carpenters violated 2 U.S.C. j 432(b)(2),and enter into conciliation with Respondent prior to afinding of probable cause to believe.

3. Find reason to believe that The Carpenters LegislativeImprovement Committee and James S. Bledsoe, astreasurer, violated 2 U.S.C. S 432(b)(2), and enterinto conciliation with Respondent prior to a finding ofprobable cause to believe.

4. Approve the attached Factual and Legal Analyses andConciliation Agreements.

S. Approve the appropriate letters.

7Lawrence N. NobleGeneral Counsel

o0_ _ _ _ __ _ _ _ _ _ BY:Date L o S . Lerner

Assoc ate General Counsel

Attachments:1. Referral Materials2. Factual and Legal Analyses (2)3. Conciliation Agreements (2)

I I1~&~ -,

FEDERAL ELECTION COMMISSIONWA$MICTON D C 20463

MEMRONDUM

TO:

FROM:

DATE:

SUBJECT:

LAWRENCR N. NOILEGENERAL COUNSEL

NAJORZE W. ENNONS / DONNA ROACH

COMMISSION SECRETARY

AUGUST 17, 1992

Pre-UR 262 - FIRST GENERAL COUNSEL'S REPORTDATED AUGUST 12, 1992.

The above-Captioned document was circulated to the

Commission an THURSDAY* AUGUST 13, 1992 4:00 P.M.

Objection(s) have been received from the

Commissioner(s) as indicated by

Commissioner Aikens

Commissioner Elliott

Commissioner McDonald

Commissioner McGarry

Commissioner Potter

Commissioner Thomas

This matter will be placed

for TUESDAY# AUGUST 25, 1992

the name(s) checked below:

xxx

on the meeting agenda

Please notify us who will represent your Division beforethe Commission on this matter.

R oil

33FOR3 TH FZD81&L ZLECTION COMMISSION

In the Matter of

The Carpenters LegislativeImprovement Committee andJames S. Sledsoe, as treasurer;

The Los Angeles District Councilof Carpenters.

Pro-MR 262(,1~ 5?~

CERTIFICATION

I, Marjorie W. mons, recording secretary for the

Federal Election Commission executive session on

August 25. 1992, do hereby certify that the Comlesion

decided by a vote of 5-0 to take the following actions

with respect to Pre-MUI 262:

1. Open a MUR.

2. Find reason to believe that The LosAngeles District Council of Carpentersviolated 2 U.S.C. 5 432(b)(2) and enterinto conciliation with Respondent priorto a finding of probable cause to believe.

3. Find reason to believe that The CarpentersLegislative Improvement Committee andJames S. Bledsoe, as treasurer, violated2 U.S.C. I 432(b)(2), and enter intoconciliation with Respondent prior to afinding of probable cause to believe.

(continued)

Federal Election CommissionCertification for Pro-NU 262August 25, 1992

4. Approve the Factual and Legal Analysesand Conciliation Agreements as reco mendedin the General Counsel's report datedAugust 12, 1992

S. Approve the appropriate letters asrecomended in the General Counsel'sreport dated August 12, 1992.

Commissioners Alkens, Illiott, McDonald, McGarry,

and Thomas voted affirmatively for the decision.

Commissioner Potter was not present.

Attest:

4b

,ZA -4&7IF ' - - 0 &/ axa6rdrJocie W. Rumons

SeDetary of the CommissionDate

~'& : .>

FEDERAL ELECTION COMMISSIONWASHINGTON. D.C 2M3

September 2, 1992

Fredrick W. Taylor, PresidentLos Angeles District Councilof Carpenters520 S. Virgil Ave.Third FloorLos Angeles, CA 90020

RE: NUR 3595Los Angeles DistrictCouncil of Carpenters

Dear Mr. Taylor:

On August 25, 1992, the Federal Election Commiision foundthat there is reason to believe the Los Angeles District Councilof Carpenters (OLADC") violated 2 U.S.C. S 432(b)(2), aprovision of the Federal Election Campaign Act of 1971, asamended (Othe Act"). The Factual and Legal Analysis, whichformed a basis for the Comission's finding, is attached for

C: your information.

Under the Act, you have an opportunity to demonstrate thatno action should be taken against LADC. You may submit anyfactual or legal materials that you believe are relevant to theCommission's consideration of this matter. Please submit suchmaterials to the General Counsel's Office within 15 days of yourreceipt of this letter. Where appropriate, statements should besubmitted under oath.

In the absence of any additional information demonstratingthat no further action should be taken against LADC, theCommission may find probable cause to believe that a violationhas occurred and proceed with conciliation.

In order to expedite the resolution of this matter, theCommission has also decided to offer to enter into negotiationsdirected towards reaching a conciliation agreement in settlementof this matter prior to a finding of probable cause to believe.Enclosed is a conciliation agreement that the Commission hasapproved.

If you are interested in expediting the resolution of thismatter by pursuing preprobable cause conciliation and if youagree with the provisions of the enclosed agreement, please signand return the agreement, along with the civil penalty, to the

.. . ... .. .i : ... JJ i ii ,

Fedrich V. To71 rldntLOSI Angeles DistttetCouncl of CarpentersPali 2

Commission. In light of the fact that conciliationnegotiations, prior to a finding of probable cause to believe,are limited to a maximum of 30 days, you should respond to thisnotification as soon as possible.

Requests for extensions of time will not be routinelygranted. Requests must be made in writing at least five daysprior to the due date of the response and specific good causemust be demonstrated. In addition, the Office of the GeneralCounsel 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 formstating the name, address, and telephone number of such counsel,and authorizing such counsel to receive any notifications andother communications from the Commission.

This matter will remain confidential in accordance with2 U.S.C. SS 437g(a)(4)(8) and 437g(a)(12)(A), unless you notifythe Commission in writing that you wish the investigation to bemade public.

7For your information, we have attached a brief descriptionof the Commission's procedures for handling possible violationsof the Act. If you have any questions, please contact Jose M.Rodriguez, the attorney assigned to this matter, at (202)219-3690.

Sincerely,

Joan D. AikensChairman

EnclosuresFactual and Legal AnalysisProceduresDesignation of Counsel FormConciliation Agreement

FEDERAL ELECTION COINNSSION

FACTUAL AND LEGAL ANALYSIS

RESPONDENT: The Los Angeles District MUR: 3595Council of Carpenters

I. GENERATION OF MATTER

This matter was initiated by the Federal Election

Commission (*Comission-) pursuant to information ascertained

in the normal course of carrying out its supervisory

responsibilities. See 2 U.S.C. I 437g(a)(2).

I 1. FACTUAL MD LAL ANALySI S

A. The Law



D committee, which is not an authorized committee, shall forwardsuch contribution to the treasurer of the committee within 30

) days of receipt. See 2 U.S.C. S 432(b)(2)(A) and 11 C.F.R.

S 102.8(b)(1). Additionally, every person who receives a





See 2 U.S.C. S 432(b)(2)(B) and 11 C.F.R. 5 102.8(b)(2).


reporting requirements of 11 C.F.R. 5 102.8. See 11 C.F.R.

$ 102.6(c)(4) and (5). A collecting agent is an organization or


-2-




segregated fund. See 11 C.F.R. 5 102.6(b)(1)(iii).

B. Analysis


registered as a separate segregated fund on April 14, 1972.


Carpenters and Joiners of America, AFL-CIO, (UBC'). The Los

Angeles District Council of Carpenters ('LADC") is an affiliated

district council of USC. It has come to the Commission's,

attention that LADC as a collecting agent failed to turn over to

USC approximately $60,000 in contributions to CLIC. These


employee payroll deduction plan. Employees of UBC and its

affiliated district councils, and local unions, contribute to

CLIC by authorizing automatic deductions from their paycheck

each pay period. For the period from July 1990 to September

1991 LADC failed to turn over to UBC contributions collected for

CLIC by check-off. These funds were, instead, retained in the

LADC general fund.

On September 3, 1991, between 79 and 81 LADC employees

signed forms authorizing LADC to rescind their payroll

deductions and direct their future payroll deductions, and their

previously deducted contributions to CLIC, to UBC's incumbent

General President's re-election fund (a/k/a the President's

Committee). Subsequently, on September 26, 1991, shortly before

- V

the October 10, 1991, UBC General Officer election, LADC paid

$50,000, comprised of the previously collected CLIC funds, by

check to the President's Committee.1

In sum, LADC retained for a 16 month period funds totaling


retroactively redesignated by the contributors to another,

non-federal, fund. By automatically deducting contributions for

CLIC from its employees' paychecks LADC was acting as a



contributor information, should have been transferred to CLIC

within a maximum of 30 days. See 2 U.S.C. 5 432(b)(2) and

11 C.F.R. S 102.8(b).

The Commission's Explanation and Justification for

Section 102.8(c)(4) "clarifies that collecting agents must

follow the requirements of 11 CFR 102.8," which are the same as

those of 2 U.S.C. S 432(b)(2). 48 Fed. Reg. 26297 (1983). This

illustrates that the collecting agents, like any other

individuals or entities forwarding contributions under Section

432(b)(2), are liable if they violate the Act's transmittal and

reporting requirements. Therefore, there is reason to believe

the Los Angeles District Council of Carpenters violated 2 U.S.C.

1. The $10,000 in redesignated CLIC contributions nottransferred to the President's Committee remains in LADC'sgeneral fund.

do 4-

5 432(b)(2) by failing to transfer funds collected for CLIC

within the required 10 or 30 day period.

.~. *'.~*,,

FEDERAL ELECTION COMMISSIONWASHINGTON. D.C. 203

September 2, 1992

James S. Bledsoe, TreasurerCarpenters LegislativeImprovement Committee

101 Constitution Avenue, N.W.Washington# DC 20001

RE: MUR 3595Carpenters Legislative ImprovementCommittee and James S. Bledsoe,as treasurer

Dear Mir. Bledsoe:

On August 25, 1992. the Federal Election Commission found-, that there is reason to believe Carpenters Legislative

Improvement Committee ("Committee*) and you, as treasurer,violated 2 U.S.C. I 432(b)(2), a provision of the FederalElection Campaign Act of 1971, as amended (*the Act"). The

7Factual and Legal Analysis, which formed a basis for the

D Commission's finding, is attached for your information.

NUnder the Act, you have an opportunity to demonstrate thatno action should be taken against the Committee and you, as

)treasurer. You may submit any factual or legal materials thatyou believe are relevant to the Commission's consideration ofthis matter. Please submit such materials to the GeneralCounsel'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 demonstratingthat no further action should be taken against the Committee andyou, as treasurer, the Commission may find probable cause tobelieve that a violation has occurred and proceed withconciliation.

In order to expedite the resolution of this matter, thecommission has also decided to offer to enter into negotiationsdirected towards reaching a conciliation agreement in settlementof this matter prior to a finding of probable cause to believe.Enclosed is a conciliation agreement that the Commission hasapproved.

If you are interested in expediting the resolution of thismatter by pursuing preprobable cause conciliation and if youagree with the provisions of the enclosed agreement, please sign

.. . ii

Carpeintrs 4stiv:znprovemea temtePage 2

and return the agreement, along with the civil penalty, to theCommission. Zn light of the fact that conciliationnegotiations, prior to a finding of probable cause to believe,are limited to a maximun of 30 days, you should respond to thisnotification as soon as possible.

Requests for extensions of time will not be routinelygranted. Requests must be made in writing at least five daysprior to the due date of the response and specific good causemust be demonstrated. in addition, the Office of the GeneralCounsel 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 formstating the name, address, and telephone number of such counsel,and authorizing such counsel to receive any notifications andother communications from the Commission.

This ntter will remain confidential in accordance with2 U.S.C. SS 437g(a)(4)(n) and 437g(a)(l2)(A), unless you notifythe Commission in writing that you wish the investigation to bemade public.

For your information, we have attached a brief descriptionof the Commission's procedures for handling possible violationsof the Act. If you have any questions, please contact Jose N.Rodriguez, the attorney assigned to this matter, at (202)219-3690.

Sincerely,

Joan D. AikensChairman

EnclosuresFactual and Legal AnalysisProceduresDesignation of Counsel FormConciliation Agreement

* ~'7' '

FEDERAL ELECTION CONNISSION

FACTUAL AND LEGAL ANALYSIS

RESPONDENTS: The Carpenters Legislative RUR: 3595Improvement Committee andJames S. Bledsoe, as treasurer

I. GENERATION OF RATTER

This matter was initiated by the Federal Election

Commission (*Comission-) pursuant to information ascertained


co responsibilities. See 2 U.S.C. I 437g(a)(2).

II. FACTUAL AND LRGAL ANALYSIS

A. The Law



C:) committee, which is not an authorized committee, shall forward

such contribution to the treasurer of the committee within 30

days of receipt. See 2 U.S.C. 5 432(b)(2)(A) and 11 C.F.R.

5 102.8(b)(l). Additionally, every person who receives a





See 2 U.S.C. 5 432(b)(2)(B) and 11 C.F.R. 5 102.8(b)(2).


reporting requirements of 11 C.F.R. 5 102.8. See 11 C.F.R.

S 102.6(c)(4) and (5). A collecting agent is an organization or

..... . :'4





segregated fund. See 11 C.r.R. 5 102.6(b)(l)(iii). A separate

segregated fund is responsible for ensuring that its collecting

agent meets the recordkeeping, reporting, and transmittal

requirements of 11 C.F.R. 5 102.6. 11 C.F.R. 5 102.6(c)(1).

B. Analysis


30 registered as a separate segregated fund on April 14, 1972.


Carpenters and Joiners of America, AFL-CIO, ('UBC*). The Los

Angeles District Council of Carpenters (*LAWC) is an affiliated

district council of UBC. It has come to the Commission's

attention that LADC as a collecting agent failed to turn over to

UBC approximately $60,000 in contributions to CLIC. These


employee payroll deduction plan. Employees of UBC and its

affiliated district councils, and local unions, contribute to

CLIC by authorizing automatic deductions from their paycheck

each pay period. For the period from July 1990 to September

1991 LADC failed to turn over to UBC contributions collected for

CLIC by check-off. These funds were, instead, retained in the

LADC general fund.

On September 3, 1991, between 79 and 81 LADC employees

signed forms authorizing LADC to rescind their payroll

deductions and direct their future payroll deductions, and their

previously deducted contributions to CLIC, to UBC's incumbent

General President's re-election fund (a/k/a the President's

Committee). Subsequently, on September 26, 1991, shortly before

the October 10, 1991, UBC General Officer election, LADC paid

$50,000, comprised of the previously collected CLIC funds, by

check to the President's Committee.1

In sun, LADC retained for a 16 month period funds totaling


retroactively redesignated by the contributors to another, jnon-federal, fund. By automatically deducting contributions forCLIC from its employees, paychecks LADC was acting as a ri1



0 contributor information, should have been transferred to CLIC

qq within a maximum of 30 days. See 2 U.S.C. S 432(b)(2) and

11 C.F.R. S 102.8(b).

As noted, pursuant to Section 10 2.6(c)(1) of the

Commission's Regulations, separate segregated funds are

responsible for ensuring that their collecting agents comply

with the transmittal and reporting requirements of 11 C.F.R.

S 102.8(b), which are the same as those of 2 U.S.c. 5 432(b)(2).

Therefore, there is reason to believe the Carpenters Legislative

Improvement Committee and James S. Bledsoe, as treasurer,

1. The $10,000 in redesignated CLIC contributions nottransferred to the President's Committee remains in LADC'sgeneral fund.

-M4-

violated 2 U.S.C. 5 432(b)(2) by failing to ensure that its

collecting agent comply with the Actts transmittal and reporting

requirements.

Annen M. Aimna-Rigor

A PIUWWALA"*"*"S AT LAW

LOS ANGELS. CALWmANIA 90020-9S6

(33 7wSwTdMgOmp

(2313 73S

September 11, 1992

Ms. Joan D. AikensChairmanFederal Election CommissionWashington, D. C. 20463

Re: KUR 3595Los Angeles District Council of Carpenters

Dear no. Aikens:

This office represents the Los Angeles District Councilof carpenters () vth respect to the above-ref--enced matter. Enolosed is a Stant of Designation ofCounsel.

We hereby request on behalf of the Respondent that theComission enter into conciliation vith the Respondent priorto a finding of probable cause to believe a violation hasbeen comuittel-.

Please contact us concerning the conciliation. Thank you.

Very truly yours,

JTD:1sopeiu 30cc: Jose N. Rodriguez, Esq.

Ns. Lois G. LernerAssociate General Counsel

44win

m c

JOHN T. DE CARLO# Esq.M OF CO33., uz C!AmLfl. ARL I SEMV9

a Professional CorporationADOUB S: S00 South Virgil Avenue

Suite 320

Los Angeles, California 90020

TZI U s _(213) "738-7959

The above-nased Individual is hereby designated as my

counsel and is authorized to receive any notifications and other

omunications from the COmission and to act on my behalf before

the Commission.

Da 4ur

mrnouvinADDRS:

N

BUSIES

LOS ANGELES DISTRICT COUNCIL'8 AMS OF CARPpTERS

520 South Virgil Avenue

Third Floor

Los Angeles, California 90020

Mon =I (213) 385-1457

0

KDJVUL. 0i 101 CmdUTtu.M AW.. N.W.WAamuond. D.C. 20001

JOP" E.AER PA;| 2021)54"208&AmNOI Iu3Lj TELEFAX: (202) 548-7802

TWIMMY 8EARS 05V-)__#MNAN M. KAME In__

CMAG h NUP Ovurn a~lmNm September 21, 1992

Xr. Jose K. Rodriquez, Esq.Federal Election Commission :1 zWashington, D.C. 20463

RE: KUR 3595 CDCarpenters Legislative Improvement Committee andJames S. Bledsoe, as Treasurer

Dear r. Rodriquez:

As you know I am counsel for the United Brotherhood ofCarpenters in Washington, D.C., and have been designated ascounsel in this matter for the Carpenters Legislative ImprovementCa ittee (OCLX C) and James S. Bledsoe. Enclosad is a statementot designation of counsel executed by CLIC through Kr. Bledsoe.I h*rby reqest on behalf of CLIC and Kr. Bledsoe that they begiven an opportunity to enter into conciliation with the Commis-sion prior to a finding of probable cause to believe a violationof the federal election laws has been committee.

It is likely that Los Angeles District Council of Carpen-ters, also named as a respondent in MUR 3595, would like toengage in conciliation jointly with CLIC and Mr. Bledsoe as theallegations against each of then arise from the same factualcontext. There may be some logistical problems in view of thegeographic separation and time differences among the parties.However, we will make every effort to coordinate and expedite thejoint conciliation process.

If it is possible to have a meeting with your or Mr. Noblewith respect to this conciliation it would be greatly appreciat-ed.

Thank you for your cooperation in this matter.

Very truly you s,

JosehE MayerAssociate General Counsel

JEM/mkd

PT eo ;

~ or o fwova

R 3595

KUE OF COUNSEL: Joseph Z. Mayor

DDESS: LUnited Brotherhood of Carpenters101 Constitution Avenue N.W.Washington, D.C. 20001

T OUE: 202/546-6206

The above-named individual is hereby designated as my

counsel and is autborixsd to receive any notifications and other

i.-ticns from the Coimsson and to act on my behalf before

the Couaissiom.

• p-we 21, 1992

James Uedso

RESPONDENT'S NAME: Carpenters Legislative Improvement Committeeand James S. Bledsoe, as Treasurer

ADDRESS: United Brotherhood of Carpenters101 Constitution Avenue N.WWashington, D.C. 20001

TELEPHONE: 202/546-6206

@.tarpent f .... Tf A.n..i=.

KAIW L INNEW 101 CoNenumrTON Av.. NW,-0NEW& WASuwmTO*N D.C. 20001

J0XKIP#4 E. MAE (202) 54"-6206

ASOmAlUFA L .NI t TELeFAX: (202) 548-7802

IMOTHY EAM 0*11 e88ANA M. KANE

CRAIW 14 RO NoSTA" A6 December 4, 1992

Jose Rodriquez, Req.Office of the General CounselFederal Election Commission999 B Street NW.V.ashington, D.C. 20463

RE: MUR 3595

Dear Mr. Rodriquez:

Enclosed is an executed copy of the conciliation aqreement

we negotiated in the above-identified matter, along with checks

in the amunt of $10,000 each payable to the Federal ElectionComssion. I also enclose a draft of a memorandm that Respon-

dent BleTroe, Teasurer of Respondent CLIC, proposes to send to

Repnet Los Angeles District Council of Capenters and to all

our other affiliates pursuant to the provisions of Article VI-c

of the conciliation agreement. If accepted by the Commission,the conciliation agreement will constitute a complete bar to any

further action by the Commission against the respondents in

connection with this matter.

You have stated that you will recommend that the Commission

accept the conciliation agreement in its present form. If you or

the Commission have any problems with the conciliation agreement

or the proposed notice to our affiliates, please let me know

immediately at 546-6206. Assuming that the Commission accepts

and executes the agreement, kindly send me a copy of the agree-

ment with the original signature of Ms. Lois G. Lerner or whomev-

er signs for the Commission.

I trust this will bring this matter to a quick conclusion

and I sincerely appreciate your cooperation and assistance.

Very truly ours,

Josep E MayerAssociate General Counsel

JEn/mkdEnclosure

December 4, 1992

7O: All Local Unions, District Councils and State Councils

3U3AM Compliance with Federal Election Camission Rules andRegulations

Pursuant to a conciliation agreement betwe the Federal0 Election cinmssion (the "FEc") and the careters, eWative

I -rovm_-- omittee (NCLIC), it is .abe Ot thateeou affiliate of the Utited ftheh 001-y M the Federal

te. 0- w ts Act of 1971 (the "Ma), . 1,," theR "-tios t by the . Artie" r,ivithra-pect to onltributions to CLIC, you are reMio to eawayfully and promtly with each and every reooding, reporing andtransmission requirement established by FPC& Section 432(b)(2)and Sections 102.8 and 102.6(c)(4) and (5) of the publisheRegulations. Copies of these provisions are attached for yourreference.

A failure to comply with these procedures may subject bothyou, as a "collecting agency," and CLIC and its treasurer, tosubstantial civil penalties or even criminal sanctions forknowing and willful violations. Even inadvertent mistakes,oversights, and omissions are not readily excused or overlookedby the FEC and may result in costly monetary penalties. Knowingviolations may be penalized by fines of up to the greater of$10,000 or 200 percent of the contribution involved; and criminalsanctions for deliberate violations may include up to one year'simprisonment, a fine of the greater of $25,000 or 300 percent ofthe contribution involved, or both.

In short, this is a matter of utmost importance. Pleasecooperate fully in satisfying all the demands of the FECA and theregulations issued under it. Any questions about your obliga-tions should be referred to competent legal counsel.

Fraternally yours,

GENERAL TREASURER

~I1k

qj *rkUkMAL bLM4WION CAJMAON'J Aw

(B) in the case of any other peran, the fulname and address of such person.(14) The term "national committee" mensm the or.

ganization which, by virtue of the bylaws of a politicalparty, is responsible for the day-to-day operation ofsuch political party at the national level, a deter'minedby the Commission.

(15) The term "State committee" means the orga-nization which, by virtue of the bylaws of a politicalparty, is responsible for the day-to-day operation ofsuch political party at the State level, as determined bythe Commission.

(16) The term "political party" means an associa.tion, committee, or organization which nomInate acandidate for election to any Federal office wholename appears on the election balot as the candidate ofsuch asociation, committee, or orgnaon.

(17) The term "idependemt expenditure" meman expenditure by a person expresaly advocating theelection or defeat of a clearly identified caadidewhich is made without c or comltationwith any candidate, or any authorized committe oragent of such candidate, and which is not made In con-cert with, or at the request or mieIton of, any cmiidate, or any authorized committee or agent of 0"hcandidate.

(18) The term "clearly identified" memi that-(A) the name of the candidate involved ap.

per;(B) a r or drawng of the a.

datea or(C) the identity of the candidate is appaet

by una mu reference(19) The tern "Act" mean the Federal Etio

CampaxniAct of 197 as amended.

9432. Or d ie a eoPH .ieess(a) anare, mcn', official autohmftaldo Every politi-

Cal committe shall have a treesurer. No conributi or epem-ture SW be accepted or made by or on behlf of a politcalcOmmitee e amy pwiod in which the office of tim r kSVe,. Noezp~iture Ibe mosde for oro behalf of. of iW.

10

It -0.0 50 7 9' 1waTmoo

Calcmmte without the a o ai of the tresuer orher delpta auL

) "'W' u Aqs~Nd&(1) Every person who receives a OouRlbte for*a

aftr ecivngsuc cnt~bt~nforwg to themobh coat butlem aud f the amomnof toheO

*toughed lonamdthedmtof rChts)RMYP ersg Ma h nevs

PON"clcemte which is o an atoie

(A) Vf the amoun Of t coMnbuio bJew. Aorwd to the trsrer such C a 1*1the 0 M fs AMe recelvhsg tet tbutlow

(51) hIf nad dw X iedtonl.

Em end adisus of t pern sea*gtan ado Mh e 0(rcip ftk hW 10 dwafter Mbthf o i

fim s" adMYNAo be cmige ih h

Nowsre of a Peiula

(i) wl Mwrcev by or anmbA4O

(1dheke and address of my pesosMmm Wutbion In mess of M0 tOPO wl

end- o ~ ontibuionby y uqn(3) the Iesnw of my- peq ho

miks ate er 00 optt amh h date1 eny f 7M. m mw V&f eIW--N

(4) -f -" umy d -.mub a 0b0001h together with e dat and am

my mok Detab111Mn and(5) the- and adirm of every lpern to flx

mny dihreetis made, the dae meatd and ppn &hd mmet and thaesi-~ of the cndidat ed V'ame -M by AM f, Wey for wham the

~p weemade, nc~in IN rcipt nvl~ft"edlunti~5o MA~

' 3 j 4 0

r eaiionu b the CorCo

War -. am a M m"u at

P~h 1. ofOR ume

WII red--1l) Who ma-me fts iWOM (I)

OV1 Lmowy be masde with

whethe or net they are- under 11 CPR

Won amount betwee oriarty committee, a~W cmmiteeand/or any

-Party co~ewhether

olntSol

marbe made wthout limit::" betee orgaiom or

PA'lelaing In the JointMICihit prOVde that no

I or organisaN~d by 11 CM 117 me

Unta IUs allocatd share ofDo Unade undwrierI) through (I) b madeNA fmo which ae dper l e .OA. See 11 CiP pat 110.

rId d In.

). oranittlmn or c0M.

irk tranfers

eporting-)1 shal count such

LAct for determ~ning wheth.Iiilo or comtele ls a

£AI- Unitee~der It CIPU

69hugb cofflcmuq open*s.wto"Iud ) Dtlaiioa

sl nA collecting aenK rasI~-mins eto

p~sM-e Ih A

I I CM 06 I (1.1U ldiim)

greda fund Udr 11 CPR 11Aor

(9) The sonneced snkatic ofale NPSepaa sge Ated asd M 46.fnud In 11 CPR 1000, or

(l) A parent. sUbIedlary. braaub dl-vibs. dipatment. or local unit o thecomIted Rgnito of the INpaItser t d or

(WI A local national or beentbd m

behalf el the separate A fuof an fdaun wth whih te lOcLranal~jW or ntenatihnal unloo, ft at-flatod. see 11 C l14.10().

(2) COlletn u ssoo * Il 6 ioro A oblt angent that b Mego m n m and Ubl follows the P roce of 11 CM 10O )i not requiied to rqIwr and resemu a pontcal commiutee Under 11 CPRParis 102 and 1. F ie thsat te

-, -,Ml dois nt bI"ie Istmra Kthim suc i making contr aNilIor expnditurms for the purpIce ci bitfling fedJr aleltic.

( W o a o a cOfin~ug essto-41)c~ re tenl ad i Jhu. A newarate segregate fun or a cooetnagen smy hire a mcomerco-' fumbrait.n finrm to In fndea hw-

almll not b cmiisred u a cageut for the pu iof tM suei.Rather. the Im Ia ifirm shall be o sd to be theagent of the separate segegaed for colecUng aget.

(H) Individu . An tndivdlual whocolec mtrbutim for a searlesege fand Idon to& be esoid.eed a collecting aIent for the pIpoiiof "hl sectiol. Ia A wha cPtlwoewtcontributlo are oubJect to t rm.qairement of it 1Mt. and theprovilo of 11 CPR part 110.

(4) eleple a mayconoct obo otN In Udsetion dall preclude a separeft sme.

-MW fund from sobdLIE and seolblg cotlutton eon No wn behalf.(c) P"mo urve Jbr e.olinte op -

(1)/menm -

He Aub of

30792

a Aw comirblla. A

k or1 Wte se0 Wasa few

bullh

(A) usbs a Iato be Sold "Wi Allr OW

mIll it -dA I

b

Ukbgbe

orn06) POW th Omr

item. &

S a- -OS:11,1-M ci b* dmeW

'Sm Gm" *

fodim A VWhi the =a

corIilmutl dui a" Iloaer this mb r avoyears and f -aloas" to Coemor-

4~40ctu seeps. A separatekind reeving contrub,

bya ofeontlng agetfbyf&M aton w 6Of eaChoriha cotrbuor to the

19Ogure by 11 CM 1"s3().

emittee Staemto Or-&

an esstnttremmure whose the tre"er In the eoen of

or peRanenst Vacancy Inor In the even the treaurer

as provide In suectionr eatIdbutom or expenditurhe cdeteor=adeby orcau

61 a, politica committe at awhen ther In a vacaoy in theof the treamarer

~ np~tue sallH be made forfiebilf of as poa committee

authrhatO f Its trom.oWaswMUMt by the tesrr

fh Sy cndiatewho receiwves aas desined at 11 CPRt

Y~m mha.ay loa or auk"e amy7 In comaoion Ith his oroukm f" be 0modered

tm loan orno mae h diunueas an aget of mask authohe

ibes* ~ (f.milius2 UJc.Por_ Ipersoa who ireeive a con-

an aL--r-ed i politise no ter than 10 da&M"f rd mak &Contra&e

the tmwe. if u mmount o

ppm m s a aAN w tof thew the I OnU an d u o theSM te aft ol t

) .3 1 4 0 9

II C ILI (I.I.m iEa)DaOe of m dll be the dte supers0o ObIwki poejnnof theemb-n

(b) (1) v Wy- who reevi a

dn ' n ep of wo ftaaforsld €oUII leeis for spoe

l C li th is not m sther.Ined COMMO sheD forward maskcntibuti tothe t eama of thep tommitte no lAtr tmn o

dasafter mmdtp(2) Z"97 Puan who reOWe Son

Mtrbtln owa oe f t for.* pl POW=a ommstte who Is not a aumr.Id comee shal no lt than to

doys afte eeipt of the co'dbtin.alct the dnum n addae of the coNiuoand the date of rept Of the a OW.butlon. Uf the amount, of the contrbu.tion Is In ece of $200. sk ousnshl forward t r thIenct of thec on-iber I&sOrNe with 11 CMa 100.1% ad the

date of rmelp of the cnbunDate of receipF shl be te dae am

Se.. Me anom I l IMd sowperso o al pddnuda the corntil.

(C) The proviom of 11 CPR M.-it of 1otlbton uPOUM&W comitee sAmt a oftsto mnutd e tNo"ted by an tm 1ier somiL

The treesmare of a polllsa oommittee or an on"l aaasd ytmtremsrer to receive ctrbjmma e eendturm sAll f wi a roa-ofdk " do"s " at tamt at 11Chit 1 ia) threo u(f

(a) An acount shIal be khe ba

Of the politicaeomite(1) Ipwrcniiim nece of

$0. Mas ountOOSd shl hids theMM and addru of the cnaue

and the date of receipt ada of(2) P% otiul fa n

am then

0 793

Ti- Usi~ ~esai~rndaft worM dran sanmo my be i Ue .foe" ON s"* *oat wtat ae400Wsow~ ln a s5hi4

lob"wespaldbbno o

ism" ltoitl(d) e e

f. -

od"i

and go " -she ha at

top

(W tI)W Vwmv ais of *W or buSo abas to Id bIot-

1 %in __l 7 i tl a h

or sommr- .

d mihabi kmiL U -Aited ec(1) The Ma W o

eounb =w Su hdeiMsM!q vaii s

the -r ....

) 3 . 4 0

-( mmI- "he00)).a

. 7. 1o. W mom" at

so ad vii m u

Vim Ummt. wpmrL = 'Ur II)WLew

"a Va3 t wan. t

,tu am& atist 01 thetON Dbmlof St lat.

-ammmemefth oueto- ffitery

~Ssethm(2 U.. 431(13))' Dam Inte of

hi obar fu me, ha-

mmv.ue si mde m ncadnm noup and the& ulUbho ofr eMOISSNls &And in

mothr ean. tUh per.

memm (2 US.

kosh by v"rtue of the bylawspatI. Is a~~ for

~ee t taw inpeUUV4sodbat the 0 % - leveL - .I 8111M -omow - -IOom (3 U.S.C 431(1)).

~ miWmm the orw-ehby v.rtu of the bylaws

ishel~I maty -5 r0uuihe f1W""MUM iomt the po.

104 U110 Stat lovel. m deter-

suiemo0 9, Mo ste MR W-9 UW"- 1-0

I I CP CLI (1-1I26111)tum under the -oub or dkeem ofthe State mte5I I hIlS pmNi (I US. o f.Pbtoe arymm nm oeatem

eltI to any ftoerl UaH, uboommm appmars = in detio het -nthe eandlist oate 60~Mm an

431(1?)).

m an epeKmieW a

mga llon byaDes no zi nije eat.

wThout eseate o milhewih aby anipan= or any uthsbbgite if agen or maskt eit a .

and whIch Is net mis 111 1 ON t MWihor at the request or eumie @ myruIdae Or any auhetedhMipf

toe W s" of =0s caidate.

6IIll) Osaly4211)).

bm-dG (3 USA

The tanW chat MdiFld mIm M tat the mmn of the midst 11k.V~le er a flosraphor *aw.

musim y 01 u mNo is mabyn iny m mo.I I.I6 Aet (31 U.S.C. 01(1)).At ummm the Poudea Umfito

Campa Aet of 191 Pu L. u-M,W aend in 104 (Pu. L II-4).OM (Pub. I& W6-r It ) 1 ( LN-216) u 16 (lPa 16 -M).61316 l. mow e lw (2 UJSC

434(5)).Wih rmeet to repor

nots and d /m te tobe fed undr 11 perte 161 16164. 166. 161. 166 ani 166. and my

miictlnor mmMNstheGethe terme fik Jle md Mme mmWither of the foUowfg sinm

(a) A domm is dSy le edelivey to th e hal Osslo~m

0794

13M Fer L m

=Vl

MU mom is*~~* *sEN0S Aa sm• mo i=rm

-ft

e*ma n eJp a 6uu so w.--"m "--

r-im -i1111010 a W w S mil ofU

ft dmUhhe

to us&

a uJsC.

iU a i d m (3 S. .I -0 ,11 a - _

oing% Wfmto humm hi Im-

demmt e et~domd 1 e ahlm aehe mIS In

10 I1 6 6lm W . ,. low0

61 KJ ft~b meseito I - ft

T.

BEFORE THE FEDERAL ELECTION COMMISSIONtine

In the Ratter of )

The Los Angeles District ) MUR 3Council of Carpenters )

The Carpenters Legislative )Improvement Committee and )Janes S. Bledsoe, as treasurer )

GENERAL COUNSEL'S REPORT

595

I. BACKGROUND

Attached Is a conciliation agreenent which has been signed

by Joseph 3. Nayer, counsel for Respondents The Los Angeles

District Council of Carpenters (LAC'), and The Carpenters

Legislative ImprOvement Committee (*CLIC") and Janes S. Bledsoe,

as treasurer.

F i ' 49p

OE Um I II

Based on the foregoing, this Office recommends that the

Commission accept the attached conciliation agreement with LADC,

and CLIC and its treasurer.

UX. R3COHMRiDATIONS

I. Accept the attached conciliation agreement withThe Los MAseles District Council of Carpenters andThe Carpenters Legislative Improvement Committee andJames 8. Bledsoe, as treasurer.

2. Close the file.

3. Approve the appropriate letters.

Lawrence R. NobleGeneral Counsel

- k ~rmn -s rFNKBY: ________AMA

Associate General Counsel

Attachments1. Conciliation Agreement2. Proposed Directive3. Photocopy of civil penalty checks

Staff Assigned: Jose R. Rodriguez

.' -

; I

saFOR TE FaDUUAL ELECTION CONMISSION

In the Matter of

The Los Angeles District Councilof Carpenters l

The Carpenters Legislative improvementCommittee and James S. Bledsoe, astreasurer.

)) RuR 3595

CERTI FICATION

9.

I, MarJorie W. Emmons, Secretary of the Federal Election

Comission, do hereby certify that on January 6, 1993, the

Comission decided by a vote of 6-0 to take the following

actions in MNM 359S:

1. Accept the conciliation agreement with TheLos Angeles District Council of Carpentersand 2%e Carpenters Legislative IsprovementCommittee and Jams 8. Bledsoe, as treasurer,as recommended in the General Counsel'sReport dated December 21, 1992.

2. Close the file.

3. Approve the appropriate letters, asrecommended in the General Counsel's Reportdated December 21, 1992.

Commissioners Aikens, Elliott, XcDonald, NeGarry, Potter,

and Thomas voted affirmatively for the decision.

Attest:

nie w. smonsof the Commission

Received in the Secretariat: Non., Dec. 21, 1992Circulated to the Commission: Tues., Dec. 22, 1992Deadline for vote: Wed., Jan. 06, 1993

3:55 p.m.11:00 aa.4:00 p.m.

bJr

-j . - 4" Datb

FEDERAL ELECTION COMMISSIONWASHINGTON, C 204 3

January 11P 1993JoSeph a. mayer, Esq.

Associate General CounselUnited Brotherhood of Carpenters

and Joiners of America101 Constitution Avenue, U.W.Washington, DC 20001

RB: MM 359SThe Los Angeles DistrictCouncil of Carpenters

The Carpenters LegislativeImptrvsnat Cofmttte. andJames. sledse., as treasurer

Dear Mr. Mayer:

On January 6, 1993, the Federal Election Commissionaccepted the signed conciliation agreement and civil penaltiessubmitted on your clients' behalf in settlement of violations of2 U.S.C. 5 432(b)(2), a provision of the Federal ElectionCampaign Act of 1971, as amended ("the Act"). Accordingly, thefile has been closed in this matter.

The confidentiality provisions at 2 U.S.C. S 437g(a)(12) nolonger apply and this matter is now public. In addition,although the complete file must be placed on the public recordwithin 30 days, this could occur at any tine followingcertification of the Commission's vote. If you wish to submitany factual or legal materials to appear on the public record,please do so as soon as possible. While the file may be placedon the public record before receiving your additional materials,any peemissible submissions will be added to the public recordupon receipt.

Please be advised that information derived in connectionwith any conciliation attempt will not become public without thewritten consent of the respondent and the Commission. See2 U.S.C. I 437g(a)(4)(B). The enclosed conciliation agreement,however, will become a part of the public record.

Uited 3 beed Ot Carpentersand JoLInrs of IueriCa

Page 2

Inclosed you will find a copy of the fully executedconciliation agreement for your tiles and, as requested, a copyof your compliance letter. if you have any questions, pleasecontact so at (202) 219-3690.

Sincerely,

EnclosuresConciliation AgreementCompliance Letter

cc: John T. De Carlo, Eaq.

ILI z t,-

SEFORE TEE FEIMRAL ELICTIOM CONISSION

In the Matter of ))

The Los Angeles District ) lUR 3595Council of Carpenters, )

The Carpenters Legislative )Improvement Committee and )James S. Bledsoe, as treasurer )

CONCILIMTOM

This matter was initiated by the federal Xlection

Commission ("Commission"). pursuant to information ascertained


responsibilities. The Coumiston found reason to believe that

the Los Angeles District Council of Carpenters and the

Carpenters Legislative Improvement Committee and James S.

Bledsoe, as treasurer, (lRespondents*) violated 2 U.S.C.

S 432(b)(2).

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)(A)(i),

which provides that unless this agreement is violated, it shall

constitute a complete bar to any further action by the Commission

against Respondents in connection with this matter.

0

CV)0o

C 8CXLX!SFX(N8

4

4. Respondent Los Angeles District Council of Carpenters

("LADC") is an affiliated district council of USC and acts as a

collecting agent for Respondent CLIC within the meaning of the

Federal Election Campaign Act of 1971, as amended. See 11 C.F.R.

S 102.6(b)(1).

5. During the period from July 1990 to September 1991

Respondent LADC collected approximately $60,000 in contributions

for Respondent CLIC but did not forward these funds to Respondent

CLIC. Therefore, Respondent CLIC did not receive the funds

collected on its behalf.

6. Instead, Respondent LADC retained these contributions in

its general fund.

~j.

-2-

jr. Respondents have had a reasonable opportunity to.

demonstrate that no action should be taken in this matter.

XXX. Respondents enter voluntarily into this agreement with the

Commission.

IV. The pertinent facts in this matter are as follows:

1. The Carpenters Legislative Improvenent Committee ("CLIC')

is a political committee within the meaning of 2 U.S.C.

5 431(4)(8).

2. ames S. Bledsoe is the present treasurer of Respondent

CLIC, but was not treasurer during the period relevant to this

matter.

3. Respondent CLIC's connected organisation is the United

Brotherhood of Carpenters and Joiners of America, AFL-CIO,

(OUSCO).

.M

..1.3,A

7. These contributions were collected by Respondent LADC fromits employees by means of a voluntary employee payroll deduction

plan.

B. On or about September 3, 1991, between 78 and 81 employeesof Respondent LADC retroactively rescinded their payrolldeductions for Respondent CLIC and authorised Respondent WDC tocontribute their future payroll deductions and their previouslydeducted contributions for CLIC to the incumbent USC GeneralPresidentes re-election fund (=the President's Committee'), aseparate, non-federal, fund. Pursuant to these directions, onSeptember 26, 1991t, LDC paid $50,000, Comprised of the previouslycollected CLIC fundis, to the Presidents Committee.

9. Respondents contend that the redesignations resulted fromRespondent LADC's employees' displeasure with CLXC's activitiesand their desire to see more of Respondent CLIC's funds used toaddress local concerns.

10. Respondents also contend that Respondent James S. Bledsoebecame General Treasurer of UBC and CLIC's treasurer as a resultof USC's October 10, 1991, General Officers election, and thatRespondent Bledsoe was neither a General Officer of the UBC norin any way connected to Respondent CLIC prior to his March 1992installation as General Treasurer of UBC following his

October 1991 election.

11. Pursuant to 2 U.S.C. S 432(b)(2)(A) every person whoreceives a contribution of $50 or less for a political committee,which is not an authorized committee, shall forward suchcontribution to the treasurer of the committee within 30 days of

receipt. See 2 U.s.C. I 432(b)(2)(A) end 11 C.F.R. I 102.8(b)(l).

Additionally, every person who receives a contribution in excess

of $50 for a political committee, which is not an authorised

Committee, must forward the contribution to the treasurer within

10 days along with the name and address of the contributor and the

date of receipt of the contribution. See 2 U.S.C. s 432(b)(2)(B)

and 11 C.i.R. 5 102.8(b)(2).

12. Collecting agents are required to meet the transmittal and

reporting requirements of 11 C.r.R. S 102.0., se 11 C.F.R.

S 102.6(c)(4) and (S), which are the same as those of 2 U.S.C.Lf)

S 432(b)(2).

13. Respondent CLIC and its treasurer are responsible for

ensuring that the committee's collecting agents comply with the

transmittal and reporting requirements of 11 C.F.R. S 102.8(b).

See 11 C.r.a. S 102.6(c)(1).

V. a. Respondent LADC as a collecting agent failed to

forward $60,000 in contributions collected on Respondent CLIC's

behalf, in violation of 2 U.S.C. S 432(b)(2).

b. Respondent LADC will pay a civil penalty to the

Federal Election Commission in the amount of Ten Thousand Dollars

($10,000), pursuant to 2 U.S.C. S 437g(a)(5)(A).

VI. a. Respondents CLIC and its treasurer failed to ensure

that the committee's collecting agent, Respondent LADC, forward

$60,000 in contributions collected on the committee's behalf, in

violation of 2 U.S.C. 5 432(b)(2).

~.

b. Respondent CLxC will pay a civil penalty to theFederal 3lection Commission in the amount of Ten Thousand Dollars

($10,000), pursuant to 2 U.S.C. I 437g(a)(5)(A).

c. In his capacity as USC General Treasurer and treasurerof Respondent CLIC, Respondent Bledsoe will issue to Respondent

LAM and to each USC subordinate and affiliated body a directive

to comply fully with each and every requirement of 2 U.S.C.

S 432(b)(2) and 11 C.r.R. if 102.8 and 102.6(c)(4) and (5).Vii. The Commission, on request of anyone filing a complaint

under 2 U.S.C. I 437g(a)(1) concerning the matters at Issue herein

o or on its own motiont may review compliance with this agreement.If the Commission believes that this agreemtt or any requirement

O thereof has been violated, it may institute a civil action forrelief in the United States District Court for the District of

Columbia.0 :or VIII. 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

requirements contained in this agreement and to so notify the

Commission.

441

&. :r .

X. thi Conciliation Agreement constitutes the entire

agreement between the parties on the matters raised herein, and so

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 N. NobleGeneral Counsel

s ly:

Associate General Couse*l

FOR THU RZBPOND3NTS:

4Oae :" Joseph E. Meerosition: Counsel for Los Angeles

District Council of Carpenters

OPOSition: Counsel for the CarpentersLegislative Improvement Committee andJames S. Bledsoe, as treasurer

Date

Date

.~"16

FEDERAL ELECTION COMMISSIONWASNINCTON. D.C. am"

January 14, 1993 -VIM

Robert L. Nerriner, Area Administrator [i"z' WU.S. Department of LaborOffice of Labor-Management StandardsSuite 550, Riddell Bldg.1730 a. Street, MW.Washington, DC 20006

RE: MUR 3595The Los Angeles DistrictCouncil of Carpenters

The Carpenters LegislativeIprovement Committee and

SJames S. Sledso, as treasurer

Dear Rerrlner:

This is in reference to the matter involving the abovecaptioned Respondents, which your office referred to the FederalPElection Commission.

LNOn August 25, 1992, the Commission found that there wasC reason to believe Respondents violated 2 U.S.C. 5 432(b)(2)0a provision of the Federal Election Campaign Act of 1971, asIV amended, and has now entered into a conciliation agreement inthe matter. A copy of this agreement is enclosed for yourinformation.

We appreciate your cooperation in helping the Commissionmeet its enforcement responsibilities under the Federal ElectionCampaign Act of 1971, as amended.

If you have any questions, please contact Jose M.Rodriuez, the attorney assigned to this matter, at (202)219-3690.

Sincerely,

Lawrence H. NobleGeneral Counsel

BY: rAssociate General Counsel

EnclosureConcilation Agreement

4.. . . . . ., ' . . .

FWAIL tC lO. C0MAO""WASHINCTON. OC 2s6U

MIE FILJM_____lt). __.

--- t -V.:"THIS IS V11E EI0 OF lRlR 0

MIE FIlUD c Nmm. - · PDF fileInvestigator Keg Ferris of my ... Approximately $ 60,000.00...

Documents

Transcript of MIE FIlUD c Nmm. - · PDF fileInvestigator Keg Ferris of my ... Approximately $ 60,000.00...