TERMINATION OF POLITICAL COMMITTEES, CITIZEN-SERVICE PROGRAMS AND
A final R&E Report and a verified statement of termination, on a
form prescribed by the Director, shall be filed upon termination of
any political committee (committee), citizen-service program (program),
or Statehood fund (fund).
An elected official shall terminate a program or fund if the elected
official, in the following instances:
Fails to win re-election;
) Becomes ineligible to serve, by operation of law.
An authorized committee shall terminate upon satisfaction of all debts
and obligations, when the purpose for which the committee was organized
Any committee, program or fund may terminate its reporting requirements
by filing a final R&E Report; Provided, that the committee, program
or fund meets the following requirements:
Ceased to receive contributions or make expenditures;
Extinguished all debts and obligations;
) Is not involved in any enforcement, audit or litigation action with
the Office; and
Disbursed all surplus funds in accordance with §3015.
A committee, program or fund that cannot extinguish its outstanding
debts and obligations may qualify to terminate its reporting requirements,
by the following:
Settling its debts for less than the full amount owed to its creditors;
Demonstrating that a debt is unpayable.
The types of debts that are subject to debt settlement shall include
Amounts owed to commercial vendors;
Debts arising from advances by individuals;
) Salary owed to committee or program employees; and
Loans owed to political committees.
The types of debts that are not subject to debt settlement include the
Disputed debts; and
A qualifying committee, program or fund shall be settled under the following
Credit was initially extended in the ordinary course of business;
Reasonable efforts, for example, fundraising, reducing overhead costs
and liquidating assets, were undertaken to satisfy the outstanding debt;
) The creditor made the same efforts to collect the debt as those made
to collect debts from a nonpolitical debtor in similar circumstances.
Once a committee, program or fund has reached an agreement with a creditor,
the treasurer shall file with the Director, a debt settlement proposal,
on a form prescribed by
Following receipt of the debt settlement proposal, the Director shall
perform the following:
Review each debt settlement proposal for substantial compliance with
the Act; and
Notify the committee or program within 30 days of its approval or disapproval.
A debt may be considered unpayable for the purposes of this title for
the following reasons:
Debt has been outstanding for at least twenty-four (24) months;
Creditor is out of business, Provided, that no other entity has a right
to be paid the amount owed; and
) Creditor cannot be located after best efforts to do so.
A committee, program or fund may apply to the Director to determine
whether a specific debt may be unpayable upon a showing that best efforts
to locate the creditor had been made.
"Best efforts" shall include the following:
Ascertainment of current address and telephone number; and
Contacting creditor by registered or certified mail, or in person or
The reporting obligation of a committee, program or fund ends when the
Director notifies the committee, program or fund that the final Report
has been approved, and the official record closed.