FEDERAL ELECTION COMMISSIONWASHINCTON. D.C. 20*3

THIS IS THE EGINNINI OF U #

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WXiCs or MUM"A COMNSL

DATS: April 7, 1995

ANALYST:

I. coomXit3I

IX. RELZVANT 8X UTES:

Todd Nchumober

Fontenot for Congress(C00284703)Reins Fontenot, Treasurer

(December 15, 1994 to Presmt)Susan Walden, Treasurer

(July 13, 1994 aom ober 14, 1994)Ninfa R. Laurensop Treasurer(October 11, 1993 - July 12, 1994)P.O. Box 7875

Pasadena, TX 77508

2 U.S.c. 5434(a)(6)11 CFR 5104.5(f)

MXX. 5aCIOI

f1i1ur to tue ortty-sight Bour Notificati

st - 2r Congress (nthe CoinittNe-) bo If1led Afile two ( 4 4 -Hour Notifications for ..... )egtotalling 43 175 prior to the 1994 General xloftetie

b o t d was involved in the 194 ee .e t "hedv" 1994. Prior noticeusemnCailttOm. OOtober 3. 1994. (Attachment 2):. oimclk4 Ik ~n+ titled '48 Hour Notices o Contrtbh0t 0S~da "Notices are required it thereceives etributions (including contributios and 3.*efree the A td s personal funds; and e*dorsemee -gusraaren 4 -bank loans) of $1,000 or more, duw n"tid Oi ft r 20 through November 5. The moto.sree0s Ut 4S0tiate federal and state filing ontoeo vi48 hours of ,-conmittee's receipt of the cantiokwu

Aand C Of the 1994 30 Day post"e~r411 Committee failed to file, t ,() 4Notipe -A .40 date loans received during the!tl (Attachment 3). The folloving are the 11"for Ul Notices were not filed:

'00+;+ +•++ ++

.0 o a ti b t o r - a m eD a t el0?hT94

0. January 13t 1995, a Ii. f •dftugZaformat11 ('hlAle) was sent to bte !Atta1441. The hAI notes on a* in, rntlee1 toos t1at h' eCommittee may have failed to file One or awe Of the rewired48-nour notioes for Olst minute' contribsuons of $1,ff0 OMor - The notice requests the Committee, to review t"eitprocedures for checking contributions received duriag theaforementioned time period. In additio,, the notice ltatnthat although the Comission may take legal steps, anyresponse would be taken into consideration.

On January 18 1995, a Committee representative, DianeSullivan, telephoned a Reports Analysis Division Analyst tosay that she had received the CommisioUPs DPAX (Atteeiaht-m 5). She inquired as to which specific 40-1omr Notices theCommission had not roceived. The analyst informed her thatthe Commission did not receive notices for loans from thecandidate in the amounts of $71,775 and $195,000 received onOctober 21 and October 28, respectively. Ms. Sullivanindicated that she was of the opinion that all 48-uourNotices wore filed and that she wou d send the Commission aNresponse.

The Committee's January 30, 1995 respose states that'All contributions of $1,000 or more were noted ad famedMthe Clerk of the Nouso...vithin the 48 hows as " piredathat 'The n t of $195,000( a(l-1-94•,loan) were fazed timely' (Ato "t.

On March 8, 1995, a Reports Analysis Division Aaimtelephoned a eprGentative at the oftlc of the Cle rkou -se Of epresentattves to confirm that the 45-our_.cations on file in that office matched tbe n efille withCommission (Attachnt 7). The Clerk's r"cstative sqthat the Clerk's Office was not in sossion of any 4*4notifications in addition to those received by tComission.

CAMIATE/COnITTEE/OCUNMUI

FONTENOT, EUGENE JOSEPH1. STATEMENT OF CANDIDATE

1993 STATEMENT OF CANDIDATESTATEMENT OF CANIDATE

2. PRINCIPAL CAMPAIGN COMMITTEE

@OM 25 4PAUA PART TAs 194 ELECTION 100 N4TXS"

IEIi I 93NSu/So/,48aom 2 93/SEo6/1om9

FONTENOT FOR CONGRESS1993 STATEMENT OF ORGAIZATION

STATEMENT OF ORGANIZATION - NIBMITYEAR-ENDYEAR-END -1'ST LETTER INFORMATIONAL NOTICE

1994 48 HOUR CONTRIBUTION NOTICESTATEMENT OF ORGANIZATION - A0 SITSTATEMENT OF ORGANIZATION - MIfumNT48 HOUR CONTRIBUTION NOTICE48 HOUR CONTRIBUTION NOTICE48 HOUR CONTRIBUTION NOTICE48 HOUR CONTRIBUTION NOTICE48 HOUR CONTRIBUTION NOTICE48 HOUR CONTRIBUTION NOTICE48 HOUR CONTRIBUTION NOTICE48 HOUR CONTRIBUTION NOTICESTATEMENT OF ORGANIZATION - MENDMENTPRE-PRIMARYPRE-PRIMARY - M ENTPRE-PRIMARY - AWKSTREQUEST FOR ADDITIONAL INFOWITIONREQUEST FOR ADDITIONAL INFORMATION 2NAPRIL QUARTERLYAPRIL QUARTERLY - AMBISMENTREQUEST FOR ADDITIONAL INFOIMATIONJULY QUARTERLYOCTOBER QUARTERLYOCTOBER QUARTERLY - ANEMIENTOCTOBER QUARTERLY - MUBUEREQUEST FOR ADDITIONAL INFORMTIONREQUEST FOR ADDITIONAL 2UT1ON 0iPRE-GENERALPRE-GENERAL -REQUEST FOR ADDITIONAL II!OUTImPOST-GENERALPOST-GENERAL - NIBMTREQUEST FOR ADDITIONAL INFOMTOMREQUEST FOR ADDITIONAL IFOUMTwI aisYEAR-END

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3. MIN"IMZ =IUTTME4. JGMT "UfhMZWI =UUTTMI aMMiM By "a CMU

All reports except the 1994 Year End have been reviewed.

Cash on Hand as of 12/31/94: $ 881.36

Debts and obligations owed to the Committee: $ 0

Debts and obligations owed by the Committee: $ 2,163,651.72

M PM.

FEDERAL ELECTIO)NCOMSN

CONGMrSSIONL CONI TM October 3, 1994

1994 GXuIuL ELETION CANDIDATE COsUITTEEs33G./CU?.AILING FILING

REPORT REPORING PERIOD'6 DAM* DATEpro-General 10/01/94 - 10/19/94 10/24/94 10/27/94Post-General 10/20/94 - 11/28/94 12/08/94 12/08/94

W8O RUST FILEAll 1994 general election principal campaign committees ofcongressional candidates (including unopposed candidates) whoseek election in the November 8, 1994, General Election mustfile the Pire- and Post-General Election Reports. If thecampaign has an authorized comittee(s), in addition to the

"l principal canpaign committee, the principal campaign committeemust also file a consolidated report on Fors 3Z and attach thereport(s) of the authorized comittee(s).

48 ROUI NOTICES ON CONTRIIUTIONSNotices ace required if the committee receives contributions(including contributions and loans from the candidate's personalfunds; and endorsements or guarantees of bank loans) of $1,000or more, during the period of October 20 through November S.The notices must reach the appropriate federal and state filingoffices within 46 hours of the comittees receipt of thecontribution(s).

&ELComittees should affix the peel-off label from the envelope toLine 1 of the report. Corrections should be made on the label.

COMPLIANCETREASURERS ARE RESPONSIBLE FOR FILING ALL REPORTS AND 48 NODNOTICES ON TIME. FAILURE TO DO SO IS SUIJECT TO INFORCNEIuACTION. CORRITTEES USING NON-FEC FORMS FOR REPORTS OR FILINGILLEGIBLE REPORTS OR NOTICES WILL BE REQUIRED TO EFILE.

The period begins with the close of the last report filed by

the comittee. If the committee has filed no previous reports,the period begins with the date of the comitteets firstactivity.

**Reports sent by registered or certified mail must be post-

marked by the mailing date; otherwise, they must be receivedby the filing date.

FOR INFORMATIONv Call: 800/424-9530 or 202/219-3420

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FEDERAL ELECTION COMMISSION . Pp dWASMHICTON. C A%3

Reins Vontenot, Treasurer JAN 1 3rontenot for CongressP.O. box 7875Pasadena, TX 77S08

Identification Number: C00264703

Reference: 30 Day Post-General Report (10/20/94-11/28/94)

Dear No. rontenot:

This letter is prompted by the Commission's preliminaryreview of the report(s) referenced above. The review raisedquestions concerning certain information contained in thereport(s). An itemization follows:

-You must provide the occupation and name of employerfor all individuals who contribute more than $200 in acalendar year. Please amend your report to include theomitted information.

A committee may demonstrate "best efforts" to obtain therequired information by providing the Commission with adescription of its procedures for requesting theinformation, accompanied by copies of the solicitations:the committee must request the contributor informationin initial solicitations; make follow-up requests (ifnecessary); report the information; and file amendmentsto disclose previously unreported information. Sachsolicitation must include a clear and conspicuousrequest for the information and must inform thecontributor that the reporting of such Information isM if a committee receives acontribution that exceeds the $200 threshold but lackscontributor information, the committee must, within 30days, make an additional written or oral request for theinformation. Please note that a written request nay notinclude an.addLtLonal solicitation or material on anyother subject, other than thanking the contributor forthe donation and must include a pro-addressed returnpost card or envelope for the contributor's response.An oral request must be documented in writing.Committees must also disclose Information that was notprovided by the contributor, but is available in any ofthe committee's records for that current election cycle.Furthermore, if a committee receives contributorinformation after the contributions have been reported,

it Mt A t with its next reporah amendSchedule A listing all the contributions fa Papd4Iti81 information was received or file

before the next reporting date, amendments .u tneprevious reports on which the contributions wereoriginally disclosed. See 11 CYR S104.3(a)(4)(i) and 11CiR 104.7.

-When a committee reports receiving a loan from thecandidate, it is necessary to clarify whether or not thecandidate used personal funds or borrowed the money froma lending institution or some other source. If thecandidate borrowed funds from a lending institution, orother source, please provide the name of the lendinginstitution and the complete terms of the loan.Additionally, for loans from a lending institution, youmust file an FUC FORM C-1 (copy attached) and a copy ofthe loan agreement. If the loan(s) was from personalfunds, please acknowledge that fact in an amendment tothis report. It is important to note that "personalITS funds" is strictly defined by Commission Regulations.See 11 Cr 5110.10. (11 CFR 55100.7(a)(l) and 104.3(d))

-Schedule A of your report indicates that your conitteemay have failed to file one or nore of the required 48hour notices regarding *last minute" contributionsreceived by your committee after the close of books forthe 12 Day Pre-General report. A principal campaignconittee must notify the Commission, in writing, within48 hours of any contribution of $1,000 or more receivedbetween two and twenty days before an election. Thesecontributions are then reported on the next reportrequired to be filed by the committee. To ensure thatthe Commission is notified of last minute contributionsof $1,000 or more to your campaign, it is recommendedthat you review your procedures for checkingcontributions received during the aforementioned timeperiod. Although the Commission may take legal action,any response you wish to provide concerning this matterwill be considered. (11 CFR 5104.5(f))

A written response or an amendment to your original report(s)correcting the above problem(s) should be filed with the Clerk ofthe House of Representatives, 1036 Longworth House Officebuilding, Washington, DC 20515 within fifteen (15) days of thedate of this letter. If you need assistance, please feel free tocontact me on our toll-free number, (800) 424-9530. My localnumber is (202) 219-3580.

Sincerely,

Todd SchumacherReports Analyst

442 Reports Analysis Division

pop 1'd I

Jnuary 18, 1995

Committee:

Subject:

FEC REP:

Committee REP:

Fontenot for Congress

Receipt of RFAI I Failure to File 48-Hour Notices

Todd Schmchade

Diane Sullivan

Ms. Sullivan called to say that she had received the RFAI wt on the 30Gand that she would send in a response. She wailed to know whi specific 48-Hour Notices were missing. I told her that we had not received Notices for theloans of $71,775 incurred on 10/21194 and $195,000 icmurred on 1/28194. Ms.Sullivan said that she was sure that they had filed all necesam Notices and thatshe would state as such for the public record in her response.

HAN DEUEMs 4

JANUARY 22. 196

PASADU IAk.TX 77M0

MR DON 4AD L AEI M (5144WASwdomND.C. 3051546)il

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March 8, 1995

Committee:

Subject:

FEC REP:

Fontenot for Congress

48-Hour Notices for Fontenot for Congress

Todd Schumacher

Clerk's Office REP: Peter Johnson

I called Peter to make sure that the Clerk's Office did not have any 48-Hour Notices on file for Fontenot for Congress that were not listed on the Clert'sindex because the Committee claims to have filed all of them. He checked hisrecords and said that the Clerk's Office did not have any Notices on file that arenot listed on the index.

V ... RLBCTION CONISSION .999 3 Street. N.W.

Washington, D.C. 20463 I3

FIRS? ENAL COUNSEL',S REPORT

RAD Referral: 95L-04 and 95L-09Date Activated: May 31, 1995

Staff Member: Colleen Behan

SOURCE: I N T E R N A L L Y G E N E R A T E D

RESPONDENTS: The Friends of Bernadette Castro Committeeand E. Edgar Cosman, as treasurer (95L-04)

The Fontenot for Congress Committee and ReinaFontenot, as treasurer (95L-09)

RELEVANT STATUTES: 2 U.S.C. 5 434(a)(6)(A) J2 U.S.C. 5 431(8)(A)

I. GENERATION OF RATTER

The Office of the General Counsel received referrals from

the Reports Analysis Division ("RAD") pertaining to the Friends

of Bernadette Castro Committee on February 23, 1995, and the

Fontenot for Congress Committee on April 7, 1995. (See

Attachments 1 and 2). The basis for these referrals is: the

failure by the Friends of Bernadette Castro Committee and E.

Edgar Cosman, as treasurer, to file one forty-eight hour

notification (048 Hour Notice") concerning a contribution in

the form of a candidate loan; and the failure by the Fontenot

for Congress Committee and Reina Fontenot, as treasurer, to

file forty-eight hour notices for two candidate loans.

The candidate loan for the Friends of Bernadette Castro

Comittee was in the amount of $352,810. The candidate,

Bernadette Castro, lost the November 8, 1994 General Election

tbd8tats Senate in the State of Neow York with

fortyoons and eight tenths of one percent (41.8%) of the vote.

The candidate loans for the Fontenot for Congress

Committee totaled $266,775. The candidate, Dr. Eugene Joseph

Fontenot, Jr., lost the November 8, 1994 General Election in

Texas's twenty-fifth (25th) congressional district with

forty-five percent (45%) of the vote.

Each committee failed to report a campaign contribution of

$1,000 or more, received after the 20th day but more than

48 hours before an election, within 48 hours of receipt of the

contribution, in violation of 2 U.S.C. S 434 (a)(6)(A).

II. FACTUAL AND LEGAL ANALYSIS

Based on the attached Factual and Legal Analyses, (See

Attachments 3 and 4), this Office recommends the Federal

Election Commission find reason to believe that each Respondent

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

I1. DISCUSSION OF CONCILIATION AND CIVIL PENALTY

7,~ '-:7

ZV.

1. Open a NUR for PAD Referral 95L-4.2. Find reason to believe that the Friends of BernadetteCastro Comittee and E. Edgar Cosman, as treasurer,violated 2 U.S.C. S 4 3 4(a)(6)(A) and enter intoconciliation prior to a finding of probable cause tobelieve.

3. Open a UR for RAD Referral 9SL-g.

-= - tons

. ind that the Fontenot for CongressCommitte. aF Pontenot, as treasurer, violated2 U.S.C. s 4 3 4 (a)(4}(A), and enter into conciliation priorto a fisIof pf e cause to believe.5. Approve the *tt&a4*sctual and Legal Analyses, proposedconciliatIon '*rtre nts, and the appropriate letters.

Lawrence M. NobleGeneral Counsel

Date t (fc BY:Associat General Counsel

Attachments1. Referral Materials (95L-4)2. Referral Materials (95L-9)3. Factual and Legal Analysis (Castro Committee)4. Factual and Legal Analysis (Fontenot Committee)5. Conciliation Agreement (Castro Committee)6. Conciliation Agreement (Fontenot Committee)

EFEDERAL E L ECTION COM 00"Sooft%A$M%CTO% OC Vftt'

TO:

rnox:

DATE:

SUBJECT:

LAURNCE N. NOBLBGENERAL COUNBL

MRJOlItE W. INNONS/BONIB J. ROSSCONMSSION SECRETARY

JUNE 22, 1995

RAD REFERRALS 95L-4/95L-9 - FIRST GEBRAL COUNSL'SREPORT DATED JUNE 16#1995. f

The above-captioned document vas circulated to the

Commission on Monday, June 19, 1995 at 4:00

Objection(s) have been received from the

Commissioner(s) as indicated by the nase(s) checked below:

Commissioner Aikens xxx

Commissioner Elliott

Commissioner McDonald xxx

Commissioner NcGarry

Commissioner Potter

Commissioner Thomas

This matter will be placed on the meeting agenda

for Tuesday, June 27, 1995

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

BIFORE TE FEDERAL ELECTION

In the Ratter of )

The Friends of Bernadette Castro )Committee and R. Edgar Cosman )as treasurer (95L-04)1 )

The Fontenot for Congress Committee)and Reina Fontenot, as treasurer )(95L-09)

COMMISSION

-AD Referra

CERTIFICATION

I, Marjorie W. Cmons, recording

Federal Election Commission executive session on June 27,1995, do hereby certify that the Commission decided by avote of 5-1 to take the following actions with respectto RAD Referral 9SL-04 and RAD Referral 95L-09:

1. Open a MUR for MAD Referral 95L-4.

2. Find reason to believe that the Friendsof B rnadette Castro Committee andZ. Edgar Cosman, as treasurer, violated2 U.S.C. I 434 (a)(6)(A), and enter intoconciliation prior to a finding ofprobable cause to believe.

3. Open a MUR for RAD Referral 95L-9.

(continued)

rN

secretary for the

m1 8 ection Commission U9 I= r-fication: RAD Referrals

9SL-4 and 9SL-94Ust 27, 1995.

4. rind reason to believe that the rontenotfor Congress Committee and Rein& Fontenot,as treasurer, violated 2 U.s.C. S 434(a)(6)(A), and enter into conciliation priorto a finding of probable cause to believe.

5. Approve the Factual and Legal Analyses,proposed conciliation agreements, and theappropriate letters as recommended in theGeneral Counsel's June 16, 1995 report.

Commissioners Elliott, McDonald, McGarry, Potter,

and Thomas voted affirmatively for the decision;

Commissioner Aikens dissented.

Attest:

DateSec tary of the Commission

FEDERAL ELECTI(N (-()MMISSI()N

July 12, 1995The Fontenot for CongressCommittee and Reina Fontenot, Treasurer

P.O. Box 7875Pasadena, TX 77508

Re: MUR 4230The Fontenot for CongressCommittee and Reina Fontenot,Treasurer

C.) Dear Ms. Fontenot:

On June 27, 1995, the Federal Election Commission found thatco there is reason to believe that the Fontenot for CongressCommittee and you, as treasurer, violated 2 U.S.C. S434(a)(6)(A),a provision of the Federal Election Campaign Act of 1971, asamended ("the Act"). The Factual and Legal Analysis, which formeda basis for the Commission's finding, is attached for yourinformation.

You may submit any factual or legal materials that youbelieve are relevant to the Commissionts consideration of thismatter. Please submit such materials to the General Counsel'sOffice within 15 days of your receipt of this letter. Wherea appropriate, statements should be submitted under oath. In theabsence of additional information, the Commission may find'rN probable cause to believe that a violation has occurred and01proceed 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 you agreewith the provisions of the enclosed agreement, please sign andreturn the agreement, along with the civil penalty, to theCommission.

Cekebrattng the Com nission's ORRh ...

vrsarvYESTEDAY. TODAY AND TOMORROW0 W.AX 10 KEPI THE MPW4X INFOWAED

In light of the fact that conciliation negotiations, priorto a finding of probable cause to believe, are limited to a

maximum of 30 days, you should respond to this notification assoon as possible.

Requests for extensions of 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 notifythe Commission in writing that you wish the investigation to bemade 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 Colleen Behan,

the staff member assigned to this matter, at (202) 501-7133.

cerely,

Danny McDonald

Chairman

EnclosuresFactual and Legal AnalysisProceduresDesignation of Counsel FormConciliation Agreement

cc: Dr. Eugene Fontenot

IPACtUL a LUGAL AMALTSZ5

RSPONDKNTS: The Fontenot for Cogress Committeeand Reina Pontenot, as treasurer

MUR: 4230

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. S 437g(a)(2).

The Federal Election Campaign Act of 1971, as amended (*the

Act*), 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. S 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.

Id. The notification of these contributions shall be in

addition to all other reporting requirements. 2 U.S.C.

S 434(a)(6)(8).

According to 2 U.S.C. S 431(8)(A) and 11 C.F.R.

S 100.7(a)(1)(8), a loan is a contribution at the time it is

-2-

made and is a contribution to the extent that it remains

unpaid.

The General Election in the state of Texas was held on

November 6, 1994. Pursuant to the Act, the Respondents were

required to notify the Commission, in writing, of all

contributions of $1,000 or more received from October 20 to

November 5, 1995, within 48 hours of their receipt. A review

of the Comnittee's 1994 30 Day Post-General Report identified

two contributions received on October 21 and October 28, 1994,

in the amounts of $71,775 and $195,000 respectively. The

contributions were reported on Schedules A and C as loans to

the Committee from the personal funds of the candidate, Dr.

Eugene Fontenot, Jr. The Commission and the Clerk's Office

have no record of receiving the required 48-hour notices.

Accordingly, there is reason to believe that the Fontenot

for Congress Committee and Reina Fontenot, as treasurer,

violated 2 U.S.C. 5 434(a)(6)(A) by failing to report two

campaign contributions of $1,000 or more, received after the

20th day, but more than 48 hours before the election, within 48

hours of receipt of the contributions.

M7A~4\~bF dS~

1UM

SA

--**Ago~

&b boy,-p§a4 individual to b~roby ftesioatod Ike myc~ulae ani 5V9thrbrietg tn "onpive Any Roatifesj.on ow OUR&

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ON amDot*

Fedeal Eleoi CommisionwaiummD.c. 2W63

Re: MUR 4230 Unm 1Foaawo lr Coen

C -m w -d Rim F cn ,TIONSWm

Dear Mr. McDonad:

In rMpone to Your latter to Ms. Fontenot repr qstions peain to 48 hourreporting before Novemer 1994 detion, please flnd attached:

1. Copy ofStatemet ofDeigaion of Represuiv that wasfaxed to MS Cole. Behan on 7-26-95

2. Copy of Long Distance Charges from AT& T that show datesthat our con-rio over $1,000 were fimed to Clerk of the House(202-225-7781). I have those calls from our FAX.

3. Copy of Intrtim poe for FEC form 6 that tells whre weshould fA our ftmNote tis poe wa pot ofour remo to showwhat poce a wre fowwed.

4. Copy of the Fax coe used for dl rprting of FEC form 6

5. Copius ofFEC FORM 6 thi wer andy fixed.,Noi I puteiddate at bottom of each sheet to show date I fazed for my freferc. There is a omt for each phone call Wuo on AT&T bill.

If there is any other infomation needed to anwer the concen, please coMMact myself atthe address on statement of desipgnaion ofrepreaive or Gene Fotenotcdidate.

Demne Sulvan

-Ob A&MO~Y~OtIi~rKLOL~So0

PS-A \A7% .)*?W-I

~j7~J3- Y~7-sg92,-.~

'the &bov.-named individuol if htreby dosionated a. my 4

counsel andIn pqcuthnrltoi tn ronmive any netittcstiolg andOoths

uumunusatum ts. Lsiws Oav C~mgwsoijqi os3 kv sELL &a by behalt befog#

-~0;) ~

c-~ ~'

~

C

theo Vomisio~no

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am

(I6 *tip

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~7z

1k 4

Now. Unn

asam uNI

I

Dam

lvo~94 -- -SElf FSITENST

AremNumbor Min ,

-1 10/07 6:02P TO WASHINGTON DC 202 863-7562v 2 10/07 6:03P TO WASHINGTON DC 202 663-75023 10/10 11:SOA TO STPETERSSG FL 813 S21-42494 10/10 2:32P TO FLS CHURCH VA 703 5569765S 10/14 3:40P TO ORLEANS MA S08 255-20626 10/19 4:40P TO WASHINGTON DC 202 714-S86771)7 10/19 4:46P TO WASHINGTON DC 202 714-5867* 10/19 4t47P TO WASHINGTON DC 202 636-4S819 16/26 10:47A T8 WASIT Dwr se 262 2207761010/21 9sl5A TO UASN w 62 225m7?St11 16/23 8:S1P TO STEVENSVL iS 410 643-1437''42 10/23 8:$3P TO STEVENSVL ND 410 643-143713 10/2S 1I:IZA TO WASHINGTON DC 202 63-481"4 10/2S 1:49P TO WASHINGTON DC 202 638-4S115 10/25 11:46P TO PHILA PA 21S 627-6139ji 16/S 11:49P TO PHILA PA 21S 627"613917 1/ZS 11:SSP TO PHILA PA 215 627-6139-46 16/2S 11:$7P TO PHILA PA 21S 627-6629I /9 10/2S IiSOP TO PHILA PA 215 627-862920 10/26 12,00A TO PHILA PA 215 627-6629P- 10/26 12:91A TO PHILA PA 215 627-62922 10/26 12:02A TO PHILA PA 215 627-6290Z3 10/26 12:03A TO PHILA PA 215 627-62924 16/26 1:20P TO WASHINGTON DC 202 638-4125 10/26 2:1SP TO PHILA PA,21S 627-62926 10/27 12:06P TO WUNS7ON SC*'22 2225w7I 1--27 10/28 4:64P TO ORLEANS SA. " 506 255-206228 10/28 7: 28P TmmhfITonB U -a2 22nTPSI'9 10/20 9:32P TO a AcST Am0Z 2257t130 10/31 3:29P TO tIN8ujj - .1eS14M8,731 10/31 6s35P TO VIRGINIKS VA 804 424-3254S2 11/01 I:SMP TO WASHINGTON DC 202 833-038833 11/01 2:19P TO WASHINSTON DC 202 633-0SS554 11/03 10:13A T 110111 111ma.aM*G . -2257635 11/03 2:08P TO SNZUIW- S 27 |56 11/04 2:38P T sWION i 2257 61

DDC EVEDDC EVEDDC DAYDDC DAYDDC DAYDDC DAYDDC DAYDDC DAYDDC DAYDDC DAYDIC EVEDIC EVEDDC DAYDDC DAYDDC NT/WKDDC NT/WKD9C NT/IKDDC NT/WdDDC NT/WtDDC NT/IDDC XT/WKDDC NT/WKDDC NT/WKD.C DAYDDC DAYD.C DAYDDC DAYDDC EVEDDC EVEDDC DAYDDC EVEDDC DAYDDC DAYDDC DAYDDC DAYD.C DAY

SUBTOTAL

-Dsanefhq

.~zI Am.u~

- 180. 36a.27+.59+

1.48+.295* 295.298.29aIs*.164.

55 n

.16*+

.16..16+

.55

1.2902.69.186

--v

• • uwn • • umm • -

M"~ rae a

Raf

y, b fn 40tan. befot 121 .m. oi'tfdy ofanye in whkh the candidate participtesComfmftees may disclose these contribubkins on FECForm 6 or n a ltter W coaning te same ,_,, ..MThe 48-hour notice requireme appl to type ofelcti--pnm.ary conventon, general, runos.. P...J-•,nd even when a candidate is unopposed in an election.This requiremet appls to all ontribution of $1,000 ormore, including:" Monetary and in-kind contributions;" Guarantees and endorsements of bank loans;• Loans (other than bank loans);" Advances;

tributions, personal loans, endorsents. of bank:a~ns and advances made by the candidate; and* Candidate draws on personal credit cards.The 48 Hour Notice requirement does not apply to contri-butions that have been previously disclosed on reports filedCO by the committee.

V What to ReportcO Fill in the information requested in the spaces Provided.Include the name and address of the committee, name of theM candidate, the office sought by the candidate and yourcommittee's FEC identification nuner. For each contribu-.hon of $1,000 or more, provide the folowing information foreach contributor:

* Full name (including first name, middle name or initial,,) if available, and last name);* Mailing address;* Occupation and name of employer;- Date of receipt; and

r-,, Amount of contribution.

PT ) 4, E -

~Vx~+; AYT~

FE4AN125

7g7 -1( ?67()Ph0k~

' 1 0* 6 M 11111110>, + ;: " IP~ 'N

conRtutrs full name and address, the date Of WO nthe amount of the contnbution.

The contrbutom and lbon munt be I1emind a e ..time in the fkst report fld aft te lectl. ,,

q -FECFor 6must be receied by the federal and statefiling office within 48 hours after a campagn's recet Of anybof$ut1,000 or more ece 1"d after the 20th day,more than 48 hours before, te date of any election in

which the candidate participates. A postmark date i notsignificant for purposes of filing on time.

Where to FileHouse and Senate candidate mmm fe with theClerk of the House and the Secretary of the Senate as

appropriate.

Clerk of the House of RepresentativesOffice of Records and Regstration -1036 Longworth House office Buildingasingt, DC 20515-6612

for Clerk of the House: (22) 225-7Secretary of the SenateOffice of Putlic Records232 Hart Senate Office BuildingWashington, DC 205107116Fax number for Secretary of the Senate:(202) 224-1851.

'- Committees must smuftarleOly file a copyo each FEC~orr 6 with th Secretary of State (or aPpropog steofficer) in the state in which the candidate Seeks elecdhPresidential candidate comrmttees file with the FEC.Federal Election Commission999 E Street, NWWashington, DC 20463Fax number for FEC: (202) 219-3880

Presidential candidate committees must Simultaneouslyfile copies with the Secretary of State (or appropriate staofficer) in each state in which the commit1e makes expe-ditures.

~Sc~b

Facsimile Cover Shoot

To: a er- evic "-heCompany:

Phone:Fax: eYa~~~

From: Fc>OA)o -Company:

Phone: Q13 -qqg-33 5 7Fax: 715-q.99-17 0

Date:Pages including this

cover page:

Comuwnts:

Im

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-GO.c OOA FeSS

P. V(,F

COM1 1UTIONSILOANS RECEIVED(See vlers S de br IWbsmiuatn)

rONe uno gWaa0bumLk!!!! boo $$=a~nW M, adwwi20dp dto Mclt.I " oi O EE Wtu. "I FULL.

Mw 7 -11--) ,7

,P . T '1Tyo 0, 7 F/50,,2 AjOF C~d)ATE r 3_- OFF . ' I? F SOUGW ' _-J-h

~I~AoK~P. no r Ko± IlS. flk'- o5"1 t-rict- T-kASI FD IENTI"TION NUMABER

Any Miteoribo berjkn such R~OWU .nd Vaowwe my noi be SOWd or used by "n pwaon Owr Owe paeso o ckW e*Ib~e or4

Wr corwal piqQW ~e tOa usi n wVie 'Wiad aften of Ony PObtcW ad com to sObc* coysibda barn Su~h wCvnteII I I

A.X RA ft , OW" AddraoMI W COO Name of En*,e Date (mor.th. Amount

V d C4 )day, year)

1'~Q0 C& f# Am pq 15 v C

5. .-.- , Z CodeName l E, ,.eryear)I. Full flm Ad**" w ZIP COO Name ol Employe Date (month. Amount

day, year)

-7 fff CoOccupb W

oco pali-6 .- ie

0. Full Nam. Ma Addres and ZP Cde Name ol Employer Dat (month, Amot

day. year)

SIGNATURE (optional)

FE4ANI25

DATE

IFor fuN~w ioflistion contactFederal Election Commisson

9 E Street, NW. Wann. DC 2 MTolt Free 800-424-9530, Local 202-240

FIEC

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i~ALYfr'AJ~~Jf~ Iij S ~ ~I)t'*V~n. d .t )NTIFICAIN R

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A. FiaI MOMs Mailn Addres and ZIP Cede Nam of Eirqoyr Dewo (mmM,day. year)

c.Fl Muse. Maln drs n I C.,z.d. t .am at Er.ly. Dae (mw. ,,,.day. year)

D. r-,lNa.M ai, ng Add .es a ZIPC . Namea Eer l,, er D (,aiol. "v,,w ,,day, year)

Oc 'upauon

E. Full Name, Ikling Address ani ZiP Coae Name otE Date (montir.Amuda.. year)

TX -7 7ZN? (0 Occupaban JIic

SNATURE otoa) DATIE Far (wre birrna corielI:Fedy.l Ele m i

d9E Sree NW. Wshn, DC 2043To" Free 0(0-424-90. Lo A 0

day........

I I ___ 1

CONTRIBUTIOtSMOAM RECEIVED(See Reverse Siae w Inor ons)

71Y

(See Revre Sift I kieib m)

ro Y. Fw AE. OWmn VAUAMM~,E~N

2 NA 3F -AIDT

_£ b,~5-~~'"~'-- ~ L~~J U >I E4. FEC IOENTIFICATION NUMBE

Any ueatmees"M t a mpus wi #tmo be S or use d by a" I 0 e d for-In conittfos otot WovWMClt iPvlos -t tm * -o m N Mt I '~ -omc otal t l o

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day, YssOP.. Ba , - 5, o.Iaq91+ 1 s-fvtOTtA 77350 -2l I o Dle(onh mO

B. FeI MM, UMMn AfM aM MCO ces Nae of En~Dat oyerAfWU

r day. yoor)

aZ~eojs &-f Nehxbt*

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C. Ful lima, dsZIP oe No" o ak "Am Dam (month,.

D. FuN MIM Uig W.d w Cai NaM of Ev~ Dam (m Wnth. A.....

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SIGNATURE -"W DATE Fu~eor mo1n101 f coa ittFedral NlcOW CosiOWnsso999 E Sb9st NW. Waohmln iDC 246STOO Free 800-424-95M. LcUx *S

FECjFE4~t5

(See Rewr"" W~e Wo kaiclatn)

MIOXA1. ftvm OF OOMWrM IN FML

rf) -- 0- SL

Ilj179 2hisc ^TIE. &d

fiL emd a it -7-7 Zing

S I,, v o \ e, e , ,,f ILLS I~o use. s T~uL 4 FEE OEMM~lATION NjWmR

Any wiwabm ow SU W - Rd 9 i ry sn Ie mado d by any pasa for goe pjms a~s cosbNAsWO or1ws cnmaoc PUOpwn GOwW ~ n a Vs Owss adw of O peibcw C=e'we to Sam wafta" "a osuwu

A. Mi NNMI. NO"hn Ade amOd ZIP CeeNao call 1 Daoe (mouth.nXF, ( p day, yeW)

Po&'Ov 3g fA IOdii

ir

D. FUN #$Ofe, Mein MAmM nd ZIP COd Name of EmOe Date (month, Amountday. year)

C. F NO. Malg Addres an ZIP C. Name of Emplopye Dale (monh. Amoutday. year)

D. FiA NtfaneM Nllg Addre. 0nd ZIP Cede Na~iie of Eiper Date (month, monday, year)

E. Ful Name, as" Addre"ea nP Code Nam of Empioye Date (month. Aisinlday. yO)

Sol0ATUM (opgon@4 DATE For hlurw inev e Mue:FederW lectio CommeonI~9 E Street NW. Wahngton. DC 243Tol Free 00424-9530. Lowm202-*

I As& s~ ,V,,-bT

lw-a -- M

(See Reverse Sl d tsr knantiS)

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Any ~ ~ ~ M ufMr enssApreS muw~ ~n be aM Of sed by Sny peson for o puM*m at Com d .uaons or4.FCUMEWa cooswvs pufsaft 0mw Vw uw newUs nd adft of OW POM cooMnillft to sobor cosmebeM M ww

A. FuN Name, Mw Adsn cadoo Name of Efflpyw Date (mof. Mday. year)

Roust W F -A-io4 OOax**Wn 5

a. FuN No". M M Addres d aZW Coo Name of Emlnp"er Date (month.

h-7wMRe4i OQAC (bRioe , __________ 9Y /451AS-fONJ-r7lcdql)

_____

C. FtUNamMaINg- Address ad ZlPCede N&M ofEft y Date (..mOntAoun

cly. Your)D. FUN NaM. flMi Addree Mnd ZI Cede Name of EnyR~ Daf (mKOt Amo"Wl

I e"eral Eeho on Cormv, u'o

999 E S"t, NW, Warsnigon, DC 2M043Too Free 8E-42C, L 2 1- 4

FEC7

pi4m#m - - -s

48 HMORwIt OFcONT1IUTIONS.OANS RECVD

(See tvofso Sie tor btcft*nS

To be wedIONW OnbWWW".U~~'

- -4

Or *~ZIP

,&btf A~~~~ 'I A u" a m I

lu-4 FEC IDENTI O

ee com"Wo pwpsm sr Vw" igo tmm and addoos O "W o co Aiv el to sO Iw m w o wA owwQf 7duqm=

I. Fll Nie, Mlmilbg M66Im iU Cu DI Name Eao y Date (moe- h. ,T--._

day. year)

W', 0. Lkiadqq1,3 / e)66. coI.F ~e %qA~w0 WC0 day. year)

P.o. &ow aqo"-

C. FuU Name, Md dg Adg ad UP a4 Name d muoy Date (month.......

day. year)

I I* I7f

Z o I%

I4~xBiiz. ~ __________ It-31-91Y( 11 Oc*0.Od

h ~ if~~ Date (month.AotE. NO lions, Nasing Addvaea W ZnI P :~d Nlams co Eday. year)

SKMATURE (poa)

IO .-3(i'(Federal ElecbW w ua999 E Street. NW. WUnwVM OC 2M3ToN Free 800-424-950. LOWl22 M

FE4MI25

4 0

r-I %^ftIA pwla be1 e., ps~ uiU ~ l emd~~ ywywn iVapus ~S urr ~~ ATM NukUe"m 0es~pm spw .d mS e OW' Vofi caW W 0b bern pop sfo U804SS o

34@0~wg S.E.49 a

-pbiq*A "jM#o -, -91 4~J

C. Pd Now. Sbbu M sdm ONh inus of Enicoq Dow (mft Afowd-o. V-

C. FuN Home. WW"Ad Mn1WCab Nmis al Eipwy 09 (new Afonda. -W

E. PubNW M, INg AdossO Z~P~ o&Pniw d' En~ioDo@ law A*a

TOu Pu 800424-MO LoWUl.2*M

4p-F&%At-

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robe -los-,siv OF COMMff M16 WN PIAM

WTAI .7-75a

2 MANK CW CJVM)M'M 5-mm eous"T

It le, AomeaS" Or&

48 HOUR NOT OFCONTRIBUTIONS/LOANS RECEIVED

(See Pwin Side o bW olmuu)

I.......MPMM IN FULL °

'P.r.). 7g'.C . STATE nd ZIP CO0

2 A O DATE 3 OFFICE SO~

Aid I'(' ALr*A tnsuhwWM f 11100 M-- beM w Mb FEC IDENTFIAION OitE

o- co m moecj p uw p o s "s hGo w t g V o n w V a - -w a m s s o a y P O Wa I corv u t*Ae 10 O a % C b * w o b n i th iwsn t P

9. Fu* Mem. Mae g Adde n ZP COdO Name ol Employee Date (montth .ounday. year)OaO'&oco)

C. FuN Maw. &aWling Addesa a, ZI Cod Nam of Employer Ewe (mOna AoM

day. yer)

D. Full Nwm. Mailing Addem ii ZIP COO Name ol Eml oyer Dale imonth. Anoiurday. year)

Occupaon

E -Full Name. &Miig Adde" and ZIP Cods Name of Employer Date (month. Amoameday. year)

r- % 0 1 (:* 4-OnIle -C* &

SIGNATURE (optonal) DATE

I/-For 1Other uion conlat:Federal Election Convriqrs999 E Street. NW, Wasibn DC 20To7 Free SOO-424-95M3 Local 02405-,qL/

48 HOUR NOTiCE OFCONTRIBUTIONS/LOANS RECEIVED

(See neowue S ld fr bwuco, )

To be &"d I0 o ii ow" m$WSI00r na. rsncwmW~0q%0#uMcklrA OF COMM'E 0 FULL

I ( 1 a Cen,* XAO ESS(numo w ~

C2 STATE " Z 3U

'2 MA&A OF- :,ANOMOAT / 3 OFFCE SOUGHT

1-- 11Vh& I: I :r, ft,- A i-,_f

jL ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~. Full Nln.Mi AcnlIl I olIlleo mly oewAiv wiofflwrin~Jw %Wn1 W5tl Plop&e W StAsaMa my not be said o used by Mypsw n 1w w POse Of 806CW v*aed Or 4f ECONIIAIN10 oCoraYW'C pueposes e ~~m usin w rwm and aesof " vy COO~s cof I* ** isW boitmlor Siah Clo~vis E.E .E

A- Ful NMM. MOln Arlk M ZIP Cod Nams ol EmPinw Dow (morh. Amfoul

Q A~i ~day. year)

€lty. year)

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S .F NM. M A and ZIP Code Name,, , om (El". MOM

day. ye)

occpaon

. Fu NMM, Madng Address and ZIP COOs Nam of Emplo Deft (glmWh DAod

day ys .)

0. Fua Nme, Mame, g AMdrs ad ZIP Code Nams of En~le Date (moitAA.

day. yew)

I ccula @I

ror wiruwleUWulgl CUFed" EMOn Corn999 E SIM. NW. NagM ImXTo Fie 100424-53 Laol"

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#11

ofal IJM wri jloum~al I usA a .

0 FEDERAL ELECTION COMMISSIONWASHINGJON)K P.C jSJ

FIRST CLASS MAilRETURN REClff rEQUESTE

Desnne SullivanThe Fontetot for conspes Commitsee4201 Fairmnont Pakway #504PasadeM Texas 77504

MUR 4230o, The Foueno for CoAgCommittee and Rein Foaneot,

co as treasurer

Dear Ms. Sullivan;

This leter is to coafuour a telepNecvenom o Doeeme 13, I s,wherein w discused this Office's positim in the ab-ref-reced matter. Youindicated tu, in ligh of our po itis you woud need to =nag lb omd todetermine if the Committe is ierudin IpwgpepmdscmscmllsimYou also indicated do you wou be back in o o wi m sia fw h&Y,) _-3This Office is stiU inerested in conciliatimV this matt at i sep of theenforcement poem Pleaee me a sooe me p= wit ie Ct m esposition or, if you he fiud qusLt I m be rmeahad at g00 424.930011 or 202 219-3690.

Sinme.

Jeffrey D. Long

PATTON 4O0GS, L.L.P.2SO #4 STREET. N.W.

WASHINGTON. D.C. 20037-1350(202) 457-6000

FVAssL 1nOl 4S743S WNITR'S DIRECT DIAL

(202) 457-6405

February 15, 1996

Lee Ann ElliottChairwomanFederal Election Commission999 E Street, N.W.Washington, D.C. 20463

102

Re: MUR 4230 - The Fontenot for Congress Committee andReina Fontenot as Treasurer

Dear Chairwoman Elliott:

Our initial response to MUR 4230 included a copy of an affidavit submitted by Mrs.Deanne Sullivan. Enclosed as a supplement to this intitial filing is the original affidavit signedby Mrs. Sullivan.

w

jef

STATE OF TEXASCITY OF LAPORTE

AMIDAVIT OF DEAMR SUWJVAgN

Deanne Sullivan, being duly sworn, depomes and states as follows:

I. I am Deamne Sullivan and I scrved as the accountant for the Foatnot for CongremCommittee during the 1994 general election in which Dr. Eugene Fontenot was a candidatc forthe United States House of Representatives.

2. Given that Dr. Fontenot was very insistent that his campaign comply fully withthe ktter and spirit ofall federal election laws, careful steps were taken to enrae that staffmembers of the Committee were briefed on the reqummnts of the Federal Flection Campaign

"- Act and strict procedures were established to a ish this goal of complete complianec.

3. Pursuant to my position as campaign accountant, it was my responsibility toensure that the appropriate 48-hour reports were promptly completed for all contributions overS$1,000 and then filed with the Federal Election Commission in a timely fashion.

4. The procedures regarding 48-hour reports were as follows. I was to be notifiedimmediately upon the recipt of any contribution or candidate low. For those contributions orloans of $1,000 or more, I would then promptly fill out the qpmewic FEC FORM 6 uwdimmediately send it by fax to the both the Clerk of the House of Represetatives and the State of

" "Tiexas Ethics Commission.

LD 5. Top priority was placed on getting the appropriate 48-hour reports filed by fax asr,-.. soon as possible after reccipt of a contribution. Wc did mot allow ourslvcs the allotted 48-horn

or even 24-hours. Rather, wc strove to file 48-hour pt by fax within hours of receipt of acontribution or ka. If the fax lines at the Clek of the House were busy, a peistent eflbrt wasmade to fax the report until it went thrugh.

6. These procedures for the prompt filing of 48-hour reports were extremelyeffectivc. It is my belief that the appropriate 48-hour reps were filed with the Clerk of theHouse and the Texas Ethics Commission by fax for each of the fifteen contributions over $1,000that were received during the relevant reporting period. These werc an October 20, 1994 reportshowing a $1,000 contribution and a $30,000 candidete loan; an October 21, 1994 reportshowing a candidate lon of $71,775; an October 27, 1994 report showing a $1,500 contributionand a $1,000 contribution; an October 28, 1994 report showing a $1,000 contribution; an October28,1994 report showing a $195,000 candidate loan and a $1,000 contribution; an October 31,1994 report showing four $1,000 contributions; a November 3, 1994 report showing a $4,912.47

cwtribution; a November 3, 1994 report showing a candidate loan of $30,800; and a November4, 1994 report showing a candidatc loan of $70,000.

7. All of these contributions disclosed on 48-hour reports woo also fully dialmedon Schedules A and C of the Commiltee's 30 Day Post-Election Report.

8. I became aware of a potential probcm nrogarding one of the 48-hour report onlyafter the Committee received a letter from the FEC dated July 12,1995. 'lhis letter alleged htthe Committce did not filc a 48-hour report showing a candidate loan of $ 195,000. 11w FECbased this allcgation on the information that was voluntarily disclosed by the Committee on itspost-election replrt.

9. I firmly believc to this day that the appropriate 48-hour report was filed for the$195,000 loan received from Dr. Fontenot on October 28,1994. Tls firm belief is base on myclear recollection that the reJevant procedures were oIllowed regarding the 48-hour repr for thisloan. I distinctly renmber being informed of Dr. Fontenot's $195,000 loan, filling out a48-hour report disclosing this loan on the same day, and sending it to be faxod to the both theClerk of the House and the State of Texas Ethics Commission immediately thereater. The48-hour report showing this loan was in fact the second 48-hour report that I had prepared onOctober 28, 1 994. 1 had earlier completed a 48-hour report for a $ 1,000 contribution and faxed itto the Clerk of the House.

10. My belief that two 48-hour notices were faxed to the Clcrk of the House and theState of Texas Fics Commission from our Conunittee on October 28, 1994 is confirmed byAT&T phone records. These records show that a first fax was received by the Clerk of theilousc at 8:28 p.m. Fasern time and the second fax was received at 10:52 p.m. Fastcrn time.The:s records also prove that the Committee sent two fxes to the State of Texas EthicsCommission on October 28,1994. Indeed, Texas Ethics Commission records confirm that the41-hou report dhowing the $195,000 loan was in fact received and procesed by their officewithin the relevant reporting period.

1I. If, as the Commission alleges, the 48-hour report listing the $195,000 candidateloan was not processed by the Clerk of the House, then I can only speculate that perhaps the.Clerk misplaced the report or, in the altcrnativc, an inadvctent error was madc at our faxmachine as we tried to file the report so that we accidentally filed thc earlier 48-hour rttwice. I can offer no othdr explanation as to why the Clerk of the louse apparently did notreceive this 48-hour report, yet the State of Tcxas Ethics Conmfission did.

12. Although I have no concrete answer as to how the Clerk could not have receivedthe 48-hour report showing the $195,000 loan, I can state unequivocally that I prepared a 4&-hourreport for this loan, sent it to thc fax machine with the intcntion that it be sent, and believed ingood-faith that it was actually faxed to both the Clerk of the House and the Texas EthicsConams.,,n.

mel *w1 n umirm, iWmI an iis low %Una In K 0 &K

VT ~~ha (Ina a* elklon.

14. J wy dlmuuad w hicd fbahng pmaisaby t13FEC it oanduiCM in .umpy1m int ON ubv Pnuimc no ofc Pe Fdcmu Election Camp Act. owCammis gl ow bftn Iurne wit da m ouiw ad cxcaulcy hgie

Do=nn Sullvan

Sonto Imdutce Wefe nmon this 4da y of Fdmwyt 1996.

My lm Cam um pW

164779

P~bW~ ~Lt ONCOMMISSIONWASNONGM O. X0*3 AZ' 0 aM

July 24. low

2550 M ft at, N.W.WuMnwm. D.C. 20037-1350

RE: MUR 4230Fontenot for Congres andReina Fontenot, as treaurer

Dew Wfr. 0- SW

Duusd ow i i mpertidnd in the normal course of carrying Ot itspec.. 6-----i- on June 20, 1995,e Federal Election Commission found -Pmon to believe tyow cieft Foenltm for Cowe. and Reina Fontenot, as treasurer, violated 2 U.S.C.c' § 434(X6)(A), and instituted a investigation in this matter. After considering all the evidence

available to th Commiion, the Office of the General Counsel is prepared to recommend thatthe C- on find poble came to believe that a violation has occurred.

The omminion amy or my not approve the Gemal Counsel's recommendatc.S 2ubmi-*- a your review is a riefstating the position of the General Counsel on the legal andfa'1l 0- i .t Of cue. Wi MS 15 days of your receipt of this notice, you may file with &Csl Fofft Cn"iml" a ief~mn copies if possible) stating your position on the imusand m-pl# to ASief ofh Goomal Comel. (Three copies of such brief AoWd ale befowaM tI se O e of thk GeMal Counsel, if possible.) The General Counel's brief andra. ny Wiwlk yOu ma smimuit will be considered by the Commission before poceedin to avote et'W ft &N is poale cmme to believe a violation has occured.

If YO me l o file a t ve brief within 15 days, you may subnit a writtenrequt t ho . t- ---of time. AU uxquests for extensions of time must be m- itted in writingfive days IMt to h due dae, and good cause must be demonstrated. In addition, the Office ofthe Goneal Cound ordi91y will not give extensions beyond 20 days. A finding of prblcae to belev repus do the Office of the General Counsel attempt for a period of not lessthan 30, but nt more 90 days, to settle this matter through a conciliation ageemen.

CeiWra6rt the Commssion' s 20th Annivers5ar

YESERAY. TODAY AND TOMORROWOWCAflD TO KEEPING THE PUBLIC INFORMED

ob

IAV4=MM.NobbGenaal CxmvAel

F,-clnqurpBrief

in the Mattw of )) MUR 4230

Feasa fwCm n )

GENERAL COUNSEL'S BDRiF

L STATEM L. OF THE CASE

On June 20, 1995, the Commission found reason to believe that Fontenot for Congress

and Rtina Fonaeot, as treasurer ("Respondents" or *the Committee'), violated

2 U.S.C. § 434(aX6)(A). The facts in this internally generated matter cokiam whether two

41 Hmr Cotribution Notices were filed with the Clerk of the House as required by the Federa

Election Camngn Act of 1971, as amended ("the Act). The required reports were to disclose

the Committee's receipt of two candidate loans in the amounts of $71,775 and $195,000,

received on October 21 and October 28, 1994, respectively.

.IL ANALYSIS

The Act requires principal campaign committees of candidates for federal ofice W notify

in writing either the Secretary of the Senate, the Clerk of the U.S. House of Repesemntatives or

the Commissi, 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 thm

41 hours before any election. 2 U.S.C. § 434(aX)(6XA). 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, atid the

identificion of the contributor. Id. The notification of these contributions shall be in addition to

all other reporting requirements. 2 U.S.C. § 434(aX6)(B). According to 2 U.S.C. § 431(UXA)

mlfl C3XI 1l OO7(sX(IX R)! a km io tlus a & t titmism k d is

contribution to the extent that it remains unpad.

The Committee Im abmifed domma which lekt dat fiadmik Uram

we md to the Clerk of Houe for each of the conributiom it received during the paod. The

lhn remods show nine facsimile tr-mmissions to the Clerk of the House of Repre.etative

for the period in question, including two tons on October 21 and October 28. Also

made available are the Rese ts' copies of nine FEC FORM 6 48 Hour Notices, which they

claim corres to the dates of the telephone bill and claim to have timely faxed to the Clerk of

the House. An examination of the telephone records reveals that the Clerk of the House

telephon number appeas on the Rese ts' tephone bill nine times and thm the times of the

calls seem to be consistent with the dates and times Respondents claim to have sent their 48 Hour

Notices.'

The following chart illustrates the 48 Hour Notices reported by the Committee for theperiod.

Form 6's RuMpomdets Date Date Received at Form 6's ReeivedClaim t BN amed Eavzd Cerks .D at Clerk's Of=

I. $1,000 c wbio. and 10/20/94 10i194 Sme330,000 cm i Roo

2. S71,775 c la b. 1621/94 mot reee.dv N/A

3. $1.500 cmitnribtio from a PAC 10/27/94 10/27/94 Sameand$1,000 c ubioum fsr a PCC.

4. SINS .-- _1-S-m *am PCC 10/2/94 10/31/94 Same(FriU rCfstarm),

'Both Notices were timely received by the Texas Ethics Commission.

S AM b"MU ISOM W 10194

4. 3 pSP InI '* 3 10/194 10304 SNOWbkidgb ad I $IM em a

7. $4,912.47 tom a prty 11/3/94 11/394 Sem

l. 530,300 csmd km 11/3/94 11/3/94

9. $70,000 cmdime km. 11/4/94 11/4/94 Sam.

A ording to M C records, the Clak's Office only has idc ain onfim reipt

of e facsimile h a uiun ssar, fo t s ou during the perti period. Th Clerk's records

and the tranission times on the Committee's telephone bill match for eight of the nine Notices

(or within the normal delays associated with tra nm s sent after normal working hours.)

The ninth Notice, for which the Clerk has no doc ntation of receipt, discloses the candidate

omw uaing $71,775 on October 21, one of the loan that is the subject of the Commission's

With regid o the Notice disclosing the 5195.000 candidate loa on October 28, it

mgsm s d the Rmamdes tried t tinueb n the n No& budt not the dbuuicae of

an elir Notice by mstke. When emp't to mach the remai eight Notices tha the

Committe! states dot it fxed, with the copies of the eight Notices that were received by the

Clerk, a fur disra w discovered. TMw Comttee claims that on October 28 it fxed

one Notice disclosi a $1 ,000 contribution from Friends of Cliff Sters at 7:28 p.m. and a

second Notice disclosig a cadidate loan for $195,000 at 9:52 p.m. Clerk's Office records

indica thA the Stearsu Notice was time stamped as received on October 31 at 8:07

4oto the Ofihbelq duad dg*0wskinMd.Mrn

Ml , t cond fax, time stamped a received at the Clerk's Office a few minutes la at

&12 a.m. d oem t s t Sems coibution mid appm to be the s Notice. Thusit

ppeus tan on Friday evening the Commite faxed tu Notice which disclosed the coatb-io

from Smm md ten, a lite more tham two owis law perhaps intending to fax the Notice o

disclose *0e $195,000 candidate loan, mistakenly faxed the Stearns Notice a second time.

Therefoeq the Office of the General Counsel recommends that the Commission find probabe

cause to believe that Fontenot for Congress and Reina Fontenot, as Uurer, violated

2 U.S.C. # 434(aX6XA).

UIL GRAL "OITHiELIS Rmr BMM ATION

Find probable cause to believe that Fontenot for Congress and Reina Fontenot, astreasurer, violated 2 U.S.C. § 434(aX6XA).

GnrlCounsel

try PATTON SOGOS. L.L.P&$SO M STVEET. N 0Wo

SB u wAs.iNGTON. D.C. 20037-1350(202) 457-6000 INorAcemw: PK 4$7-4315

lIONIAIML ROOM

WRITER'S DIRECT DIAL

(202) 457-6405

August 7,1996 3' -'0

C= w-

3- CA (r- -Go =- l;- V 0 p

Lee Ann ElliottChairwomanFederal Election Commission999 E. Street, N.W.Washington, DC 20463

Attn: Jeffrey Long

RE: MUR 4230The Fontenot for Congress Committee andReina Fontenot. as Treasurer

Dear Chairwoman Elliott:

As this matter cwrnty stands, the Federal Election Commission ("Commission") isseverely punishing a ional campaign because either the campaign inadvertently sent awrong fax or the House Clerk's office inadvertently copied the wrong fax. In either event, thiscase cannot, in any fair system of enforcement, merit the severe penalty now sought.

Accordingly, on behalf of the Respondents in the above-captioned matter, we respectfullyurge the Commission to reject the General Counsel's recommendation that the Commission findprobable cause to believe that Respondents violated the Federal Election Campaign Act ("Act").A review of the undisputed facts demonstrates that the Commission should take no furtheraction.

This matter is not about a campaign that failed to comply. Rather, as stated inRespondents' Febrary 6th statement and specifically acknowledged in the General Counsel'sBrief, the missing 48-hour notice for the $195,000 candidate loan on October 28, 1994 was, atmost, the result of an inadvertent technical error that occurmd during the course of fullcompliance with the Act. Indeed, the only real question at issue in this case is who made thetechnical mistake with respect to the 41-hour notice - the Clerk of the House by failing tocorrectly copy the notice or the Respondents by inadvertently sending the same fax twice in the200941

PATTON BOGGS, L.L.P.

Lee Ann Elliott, ChainvomanAugust 7, 1996Page 2

process of complying with the 48-hour notification rule. It is difficult to answer this questionwith any certainty. But it is uncontested that the Respondents intended to file a 48 hour noticefor the loan at issue and actively faxed a 48-hour notice to the Clerk of the House on October28th that Respondents believed to be correct.

Even if the Respondents made a mistake and sent the same fax twice, the GeneralCounsel's Brief recognizes that the 48-hour notice for the loan at issue was correctly filed withthe Texas State Ethics Commission on October 28th and placed on the public record. Thisproves not only that Respondents attempted in good faith to comply with the statute by placingthe loan on the public record, it also shows that neither the Commission nor the voters of the 25thDistrict were ever denied any relevant information regarding Dr. Fontenot's personal spending onhis campaign.

The bottom line is that ifa technical error occurred in the filing of the 48-hournotice for the loan at issue, it hardly rises to the level of a violation that deserves further actionb% the Commission or the excessive penalty now being sought. This is especially so given thatthe correct notice was filed in a timely manner with the Texas State Ethics Commission. It isincomprehensible how. despite expressly recognizing that Respondents made at most a technicalerror in the process of complying with the Act. the General Counsel now advises theCommission to continue to pursue a harsh penalty in this matter. Such a penalty is not onlyinconsistent with the clear facts of this case, it violates the Commission's stated policy ofexercising "prosecutorial discretion" to target campaigns that deliberately or repeatedly violatethe Act. Simply put. the Commission should vote to take no further action.

Sin WI y.

-R6bett/'. RitgerCounk l for Respondents

RE TFRAL ELECON CO MMSSo I A

In the tamr of. )C s) MUR4230 ______

Focandt fir Conrs and)Reina Fontenot, as treasuer )

GENERAL COUNSEL'S REPORT

NIW

I. ACKGROUNM

On June 20, 1995, the Commission found reason to believe that Fontenot for Congress

and Reina Fontenot, as treasurer ("Respondents" or "the Committee"), violated 2 U.S.C.

§ 434(aX6)(A). The facts in this internally generated matter concern whether two 48 Hour

Contribution Notices were filed with the Clerk of the House as required by the Federal Election

Campaign Act of 1971, as amended ("the Act). The required reports were to disclose the

Committee's receipt of two candidate loans in the amounts of $71,775 and $195,000, received

on October 21 and October 28, 1994, respectively. The General Counsel's Brief was mailed on

July 24, to which the Respondents replied on August 7, 1996. This report, together with the

General Counsel"s Brief, sets forth the bases for the General Counsel's recommendation to find

probable to cause to believe the Respondents violated the Act.

fl. ANALYSIS

The Respondents' position remains that this matter is not about the Committee's failure

to comply, but rather and at most, an inadvertent technical error. They suggest in their Brief that

the only issue is who made the technical mistake -- "the Clerk of the House by failing to

correty copy the Notice or the Respondents by inadvertently sending the same fax twice in the

process of complying with the 48 hour rule." They state that it is uncontested that the Committe

intended to file a Notice for the loan and in fact did fax a Notice to the Clerk that the

W etw toOebw 2Mt IowL Responet coaclude in their Brief tha ff inch

a web" wor occurred, it worrants nither further action by the Comnuin nor the m

Paoy lo as i iuat widu ise bes of this ce.

The Rl pondents have argued that the Commission can not prove that the faxed Notices

were not received at the Clerk of the House. The burden to prove timely receipt is on the

Respondents. Their response brief offers no new information to demonstrate timely receipt and

the lack of a violation, but instead reviews the mitigating circumstances which the Commission

has recognized throughout the course of this matter. Although mitigating cicumstances exist

the centrai cont ested fact in this matter is that the Respondents did not timely file two 48 Hour

Contribution Notices disclosing a total of S266,775 in the last weeks before the 1994 General

Election. Therefore, the Office of the General Counsel recommends that the Commission find

probablcause to believe that Fontenot for Congress and Reina Fontenot, as treasurer, violated

2 U.S.C. j 434(aX6XA).

iIL SCM M i MLAINAN MM MAX

- ~ ~-

-3-

IV* rn-rn1. Find Pb ae CM believe that Fontenot for Congress and Reina Fontew as

Uemarr, violaed 2 U.S.C. § 4 34(aX6XA).

2. Approve the attached conciliation agreement and appropratejefter.

Dae(Lawrence M olGeneral Counsel

Attwhment:Conciliation Agreement

Staff asigned: Jeffrey Long

p'

I,

3B30R3 TIM IZDI3AL 3L3CTZOK CONISSIOSI

zn the Matter of

Fontenot for Congress andReina Fontemot, an treasurer.

MUR 4230

1, Marjorie W. 1mons, Secretary of the Federal Xlection

C minsion, do hereby certify that on September 19, 1996, the

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

actions in MUR 4230:

1. Find probable came to believe that Fontenotfor Congress and Rein& Fontenot, as treasurerviolated 2 U.S.C. 5 434(a) (6) (A).

2. Approve the conciliation agreemient andappropriate letter, as rec ded in theGeneral Counsel's Report dated September 13,1996.

Caoissionrs Aikens, Elliott, McDonald, McGarry, and

Thomas voted affirmatively for the decision.

Attest:

A

jor e W.Secretlry of the

Received in the Secretariat: Non., Sept.Circulated to the Commission: Mon., Sept.Deadline for vote: Thurs., Sept.

Commission

16, 1996 10:59 &a.16, 1996 4:00 p.m.19, 1996 4:00 p.m.

lrd

A

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9"P~to"

R fCTION COMMISSIONWASHWCTO. DC. S

September 26, IM

2550 hI SKN.W.Wasbingeon. D.C. 20037.1350

RE: MUR 4230Fmt for Coemd adRein Fontew as tesue

NO on p~s 19 19 w. FooMl Election Commission found thAt dt o is Vpr I cam to &beliew v, o.s. c F.tmmo_ hr , m md Reinm Fontot, ms trae, Ij 2 US.C§ 434(a6A "G. m ... F .. Election, Cmi Act of 1971, as smmded in cIO- tionwiththat Cmmi's fai.. to fis two 4 Hou Notice contribution repCo

The Cmminis ha a May wo tij to core such violations for a peri of o30 to go dW5 by-nona nod".. of C IN .mistionm~i~~l'liforml I~mi o.hmbir eand Pie rasion, and by entering 2 amaaw e an le to r c h an a e ema iltueavl al tI~ m iw Cow mW see Ip~ay o&jfiQ 0 cabli.

R .

If you lip 1 4*ss dm j 410eme8W pleas 11g ma .cilpeahy, to I film th&Wcmedtat. ~~ ea.agromew Pims .3 3 cvilpenltypayable to the Redera Ebsto "

Ifyoshas - 7- fmr changs in the exnclsd ri0> yam wiA to ~ ~ ~ ~ ~ vA am~ g a wu tumlysaifc ryc m M ~ lne

.nclaWep

slmbw=owt ti nura (0) 1-30

WASHINCTON, DC. "

"-sIN. S

MAM

Benjamin L Ginsba& EsquirPatton Bogs, L.L.P.2550 M Street, N.W.Washington, D.C. 20037-1350

RE: MUR 4230Foaftio for Congr madRein Fouienot, as hveiw

Dear Mr. Ginsberg:

CO On September 26,1996, you wee notified tha the Federal Election Coumnissionfound probable cause to believe tiw yaw clients, Fosett for Cooes md Rein&Fontenot, as treasurer, violated 2 U.S.C. I 434(aX6XA). On that mmdo, you wereN,,, sent a conciliation qrea m t ffed by the Comm wi in seidemat altkls maer.

Please note t.._ pwsau Io 2 U.S.C. I 437g(aX4XA)(I)6 dw 108iod inthis matter may not exkn t f m i i 90 dy, but aq com 4w 30 d o% oh asmore than 30 days have epse wisa a mqam kM y*-- -concerning the Mhing ota civil nk wM be maob Io te w by te O ffi otheGeneral Counsel unless we tecive a wf t ymu w dh 10 doys ofyaw recdi ofN, this letter.

Should you have am y qmW pe on act m at (202) 219-3690.

Sincey

Jefty D. LongP-.at

7 ., :: i:

[soJaw A .,qi-vI',ql .

(o) 457-6000 f#40900 w omr ''

(Mw) 457-6405

Februay 6, 1996

,

Lee llu-O,

Federal Eetion Commsn999 E SmK N.W.3Wabngm D.C. 20463

RE: MUR 4230 - The Fontenot for Congrs Committee andRein& Fontenot, as Treasurer

Dear Chairwman Elliott:

In enome i the Fedad Eetion Comissimo's ("Commiuio) recen finding and

propose ConiliatiOn A wreemnt. Respondents in the above-captioned mate submit the

fodlowin me1 t This is Re ndemntI- first substantive

spoein is matter. They do not believe te C's proposed Agement reflects the

facts of this cue or even the Commissio's own precedents in similar enfo n t matters.

Accordiney, for the ream set forth below Rep.ndents respectfully request that after

reviewing he merimale s the C reasess its position. Responden believe the facts

of this m cuemut a voe of no fther action.

6lwwmwI, wl

L. -" V"~

l wMs is ur about failing to comply. As the ae documens mad affidavit

si nSand its tumti culo complied with all the mquirem of

Uwlll Acgt, h i 48-bow notifiation rule. At mos, this case is about one et (or

pis) 4_,hs_ p-u. to elu Clerk of the Howe. T~,pbone recors iand thecbed

vS i n Couultef faxed two 49-ww remot in a timely fashion on October 28,

1994, M oh th Co o tho Howe and the State of Texas Ethics Commission ("Texas Ethics

Co lm'), The mcwds fWhw sMow that both the Clerk of the House and Texas Ethics

Coiinlos~ ei t"o fAmr 48.bmw nqm from the Committee. TIh Clerk did not put the

484bwm w m pb lc rpi until Octobe 31,1994. Texas Ethics C put

boa rpo t filk Th1 mly rd question is wbet er the Committee inadvertently sent the

LAm MllOtM ChairwomanFekiwy 6, 1996

Clek the same fax twice or whether the two Fontenot 48-hour faxes that sat in the Clerk's office

for qpproximately 60 hours were copied incorrectly.

The answer to this question may be impossible to ascertain. As the attached affidavit and

docunents demonstrate, the Committee believes it filed both reports correctly. Yet even if the

Committee inadvertently filed one report twice with the Clerk of the House, the effect is

negligible since neither the Commission nor the voters in the 25th District were ever denied any

relevant information regarding Dr. Fontenot's personal spending on his campaign. Texas Ethics

Commission records show that the 48-hour report for the S 195,000 candidate loan was in fact

received in a timely manner on October 28, 1994 and placed on public record. Moreover, as the

attached media reports and press releases from Dr. Fontenot's opponent show, Dr. Fontenot's

persal spending was a key issue in the campaign and a ama of public record irrespective of

this one 48-hour repor

Given these facts, Respondents request that the Commission reevaluate its position in

light of its enfo policy announced on December 13, 1993. In formulating this

enforcement policy to encorage voluntary compliance, the Commission said it would exercise

"P disceion' to target campaigns that deliberately or repeatedly violate the Act.

This questionable matter is the only action against the Committee throughout the entire

campaign. Besides ta, the relevant 48-hour report was properly filed with the Texas Ethics

Commission by the Committee.

. i !! i - .. . i , r ... ..... .. . .... ....

Fd.n y6* 1996P* 4

rosecutorial discretion would mandate taking no further action here. Furthermore, not

distinguishing between deliberate non-compliers and a campaign which at worst made an

isolated, inadvertent techmical error, stands in opposition to the Commission's goal of

encoaraing voluntary compliance with the Act.

The following Factual Statement and Legal Analysis demonstrate in more detail why the

Commission should reconsider its position.

HI. EaUiaLtemen

Eugene Fontenot, Jr. was the Republican candidate for the 1994 United States House of

Reprecentatives election in the 25th District of Texas. From the outset of this election,

Reqndeni placed top priority on compliance with all relevant federal election laws. Affidavit

of Deanne Sullivan ("Sullivan Aff.") at 2. Careful steps were taken to ensure that all staff

members of the Committee were briefed on the requirements of the Act and strict procedures

were established to ensure compliance. Id. This careful and good-faith dedication to complianc

is especially evident in the context of the 48-hour reporting requirements codified at 2 U.S.C.

§ 434(aX6XA)-(B).

The person in charge of 48-hour reports for the Committee was campaign acountant

Dean e Sullivm. Pwmsmt to detailed pocedures implemented under her direction, id. at I 2-5,

all contributions subject to the 48-hour notice requirement were upon receipt brought to the

PATTON BOGGS. L.L.P.Lee Ann Elliott, ChairwomanFebruary 6, 1996Page 5

attention of Mrs. Sullivan. Id. at 1 4. Ms. Sullivan would then fill out the appropriate 48-hour

notice and immediately send it by facsimile to the Clerk of the House and the Texas Ethics

Commission. I. The campaign placed a high priority on filing 48-hour notices as soon as

possible, most of the time within hours of receipt of the contribution. See Attachments 1 and 2.

This prompt filing of 48-hour notices was interrupted only when the lines of the Clerk of the

House's or Texas Ethics Commission were busy for an extended period. Under such

circumstances, however, the campaign would persistently attempt to fax the notice until it went

through. Sullivan Aff. at 5.

These procedures achieved a virtually flawless record of compliance with the 48-hour

reporting rule for each of the 15 contributions over S1,000 received during the 48-hour reporting

period. This matter involves the only possible exception which, at worst, was an inadvertent

technical error. The Commission must remember that even if the filing with the Clerk was in

error (which Respondents dispute), the correct 48-hour report for the $195,000 candidate loan at

issue was filed as required with the Texas Ethics Commission.

On October 28, 1994, Respondents received a $1,000 contribution shortly before receipt

of the candidate loan. Pursuant to the Committee's established procedures, a 48-hour notice was

immediately prepared for the $1,000 contribution. A second 48-hour notice was prepared upon

receipt of the candidate loan. Sullivan Aff. at M 9, 12; Attachment 3. Once prepared, each

notice was sent to be faxed to the Clerk of the House and the Texas Ethics Commission.

PATTON BOGGS, L.L.P.

Lee Ann Elliott, ChairwomanFebruary 6, 1996Page 6

Telephone records show that two separate faxes were sent to the Clerk of the House -- the first at

8:28 p.m. Eastern time and the second at 10:52 p.m. Eastern time. Attachment 1. Records at the

House Clerk's office confirm the receipt of two separate faxes on Friday, October 28, 1994.

These records also show that these faxes sat in the Clerk's office for 60 hours over the weekend

before being eventually placed on the public record on October 31, 1994. The Committee's faxes

were placed on the public record Monday morning -- presumably in the crush of many others that

arrived over the weekend. If there were duplicate faxes sent, it was never noted by the Clerk of

the House. If the Clerk's employees copied one fax twice and missed the second fax, it was

never known by the Committee until brought to its attention months later by the Commission.

While this question exists relating to the fax to the Clerk of the House, the correct

48-hour report for the candidate loan (which the Committee believes was also sent to the Clerk)

was filed in a timely fashion with the Texas Ethics Commission. Attachment 4. In fact,

telephone and Texas Ethics Commission records confirm that the 48-hour notice for the

$195,000 candidate loan was faxed and received on October 28, 1994. Attachments 2 and 4.

Respondents believe they complied with the Act and that both 48-hour notices were filed

properly for the following reasons. Individual 48-hour notices were promptly prepared for both

the contribution and the loan. These notices were taken to the fax machine with the intention that

they be sent. Two separate faxes were actually sent to the Clerk of the House and the Texas

Ethics Commission. The Texas Ethics Commission received both 48-hour reports. Sullivan Aff.

PATTON BOGGS, L.L.P.Lee Ann Elliott, ChairwomanFebruary 6, 1996Page 7

at IM 9, 10, 12. Moreover, in the spirit Of full compliance that characterized the Fontenot

campaign, the $195,000 candidate loan was accurately disclosed in Schedules A and C of the

Committee's 30 Day Post Election Report. The Commission now bases its enforcement action

on this voluntarily submitted information. In fact, it was not until receiving a letter from the

Commission dated July 12. 1995 that Respondents became aware that there was even a problem

with = 48-hour report. Sullivan AMt at 8.

If this matter concerns a mistake over the fax transmission, it was merely an unintentional

and technical error that occurred within the spirit of compliance. Indeed, the Committee properly

filed the relevant 48-hour report with the Texas Ethics Commission. Moreover, the committee

properly reported well over $2 million in other candidate loans to the campaign, on both its pre-

and post-election reports, and through other promptly filed 48-hour notices for four other

candidate loans totaling $202,575.

In addition, despite the Commission's insinuation, the campaign simply had nothing to

gain by not filing the report. Not only was the 48-hour report for the candidate loan properly

filed with the Texas Ethics Commission but, as the attached articles demonstrate, the voters in

the 25th District of Texas were informed of Dr. Fontenot's personal spending on his campaign

well before this loan at issue. Dr. Fontenot's spending on his campaign was thoroughly reported

prior to the election by the Housto Chroncl and other widely disseminated local newspapers.

PATTON BOGGS. L.L.P.Lee Ann Elliott, ChairwomanFebruary 6, 1996Page 8

For example, almost two weeks before the loan at issue, the October 16, 1994 Housaton

Choicle reported: "Fontenot has injected more than $2 million of his own money into his

campaign, running numerous televisions commercials and making charitable contributions to

community programs across the 30-mile wide district." Attachment 5. Moreover, the cover of

the October 13-19, 1994 issue of the widely-circulated Houston Prs featured a caricature of

Dr. Fontenot next to the prominently displayed lead-in: "Eugene Fontenot with big Bucks and

blessings from on high. comes out from behind his wall to buy a seat in Congress."

Attachment 6. The story inside detailed how Dr. Fontenot had bought "hundreds of thousands of

dollars of television and radio ads... with the $1.6 million (as of the last public counting) he's

donated or lent to his campaign." Id. Similarly, popular local columnist Molly Irvins stated in

the October 21, 1994, HoustonPos that Dr. Fontenot has "already spent $1.6 million of his own

money on the race." Attachment 7. As a final example of how widespread the coverage of

Dr. Fontenot's personal spending was in the 25th District, the Pag reported only days before the

election on October 29, 1994, that Dr. Fontenot was "spending millions of dollars on advertising

aimed at deceiving the public." Attachment 8.

In addition to the numerous local press reports informing voters of Dr. Fontenot's

personal expenditures, the issue was made a central theme of the campaign by his opponent. As

the attached press releases dated October 11, 1994 and October 12, 1994 show, the magnitude of

his personal spending was widely known and already a part of the public debate well before the

PATTON BOGGS, L.L.P.Lee Ann Elliott, ChairwomanFebruary 6, 1996Page 9

date of the loan at issue here. His opponent constantly stressed to voters that Dr. Fontenot was

spending millions of dollars in an attempt to "buy" the election. For example, a press release

issued by the opposing campaign on October 11, 1994 stressed that "Fontenot has spent over

$2 million of his personal fortune on the election so far, more than any other candidate in the

coUnlnS." Attachment 9. Likewise, a press release dated October 12, 1994, accused Dr.

Fontenot of "spending millions to create a 'new' image in his effort to buy a Congressional seat."

Attachment 10. This same press release also reiterated that "Fontenot has spent over $2 million

of his personal fortune trying to buy this election, more than any other Congressional

candidate in the country." Id.

The amount of the loan at issue ($195,000) is not even 10 percent of the amount that

Dr. Fontenot's opponent told the voters Dr. Fontenot had actually lent his campaign.

m . q1 Alalyzia

A. The Proposed Penalty is Inappropriate SinceRespondents Acted in Good-Faith At All Times andAchieved a Virtually Flawless Compliance Record.

The facts of this case (presented for the first time in this submission) and the

Commission's precedents both suggest that a reevaluation by the Commission is in order. In

particular, there are nine facts that stand out. First, the Committee carefully put into place

procedures for complying with the 48-hour notification requirements. Sullivan Aff. at 2-5.

PATTON BOGGS* L.L.P.Lee Ann Elliott, ChairwomanFebruary 6, 1996Page 10

Second, the Committee followed these procedures, sending a timely fax to the Clerk of the

House and the Texas Ethics Commission each time it should have. Id. at 6. Third, as

Attachment 4 demonstrates, the 48-hour report for the candidate loan was sent to and received by

the Texas Ethics Commission on October 28, 1994. Fourth, as Attachment 1 demonstrates, a fax

was sent to the Clerk of the House for the loan at issue. Fifth, the Committee has produced the

48-hour report for the $195,000 candidate loan it believed it sent to the Clerk (and did send to the

Texas Ethics Commission) and, at the least, intended to send to the Clerk. Attachment 3. Sixth,

the fax that the campaign did send sat in the Clerk's office from Friday night to Monday

morning. Seventh, the wrong fax was put on the public record. If it was the Committee's fault,

which Respondents do not believe but the Commission contends, at the worst this error defines

the term "inadvertent". Eighth, even if this was an error by the Committee for inadvertently

filing the wrong fax twice, the loan was put on the public record in its Texas filing. Furthermore,

the Committee had no reason to hide the loan (as the Commission implies) since Dr. Fontenot's

substantial loans to his campaign had already been widely reported and the loan at issue

amounted to less than 10 percent of his total spending. Ninth, the proposed penalty is wildly

inconsistent with both the Commission's stated enforcement policy and Commission precedents

relating to violations of the 48-hour notice rule.

AuorIa Y, if tare wa an eror, it was not only o but o W while thecaupulga, which odrwis complied complmely with the Actes reporting requirements, believed

it was complyin.

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Fae7y 1996Upen

U . M WIS.

Iv. cmsmDthie W fact t" han spodis: (I) acted in good faith at all times to comply

wih the At (2) beWed they bed comqdid fidly with the Act by sending a notice within 48

bIus ah tie it s euird: (3) achieved an otherwise unquestioned record of compliance;

(4) prpery fild a 4 m ,4epo,- for the SI95.000 cuidiase loan with the Texas Ethics

C i (5) v Ob and a=-wFly discloed the loan on the post-election report; and

(6) did nothiu8 Io dqwive the voters or the Commission of any relevant information regarding

the c she Comi is mwproposing essively punish Respondents as if they

were willfd or hisad sm-compliem.

U e amul oOw of te uater is unreasonable and unjust. Respondents espectfly

req m tha the econsider this matter in light of this submission and vote to take no

fwn*e Wam

.win

STATE OF TEXASCIY OF LAPORTE

AMTAMI- OF EM.AMPS ULrLIVAN

Domnic Sullivan, bing duly womrn, depome and e a follows:

I. I am Deoe Sullivan ad I saved ar the awmuIt for &c FoImlnot for ConmpmCommittee duing the 1994 gcncr election in which Dr. uge Fozdenot was a caudidatc fort Unitnd StaUM Nousn of Repra cnt-I-' We

2. Given gont Dr. Fuw ot was very insWthdt hat =Icml p g couy Mully withUx lcuc and spirit oral) redenl election law, croful mps were taken to ensure that staff,mbcrs of the Commiue were briefed antim "rq u of the: Federl Flecion CamnpaignAct and strict procedures wer stabliahod to compish this goal of complete complince.

3. Pursuant to my position as campaign acounla, it was my responsibility toensur dat the appiopl- 48-hour npons wcre Pmtly completed for all contrilmium ovcr$1,000 and then fMlcd with the Fcdeul Electiom Camissio in a timely fashion.

4. Te procdurws rgarding 48-raK WPws Wa a follows. I was to b notifiedimmediately upoU the MoCip of any onMribuOim r CAdd loan. For th coutributioin orloam of 5l,000 or moeI voud thn prompdy fill otnthe sppr opa FEC FORM 6usdiuwmadiatdy snd it by fax to the both the Clerk of the Hoem ofM esmratfives and the Stae offTexas Ethics Commission.

5. Top priority was placed on eting the appropriate 48-hour rcomr f&l by faxwon wt possible after receipt of a comnributioL Wc did not allow ourselvcs the allotted 48-bown

01 or cvcn 24-how%. Ratef', wc strove (a ile 4-how roport by fax within hours of recapt of anbution or loan. If the fax lines at the Clerk of the louse wre busy, a pasistent effort was

malt to fax the rcport until it went through.

6. Thesm procedure for thr promp fiiag of 45-hour rpc w exuruelycffcctivc. It is my bclicf that the a upaiakc 4-hu reports were filed with the Clerk of theHouse amn the Tews Ethics Commisson by fax for each of the fifcen contributions over 31,000that were nce.ved during the reevant mrean peiod. Thee wcre an October 20,1994 reportahowinga S 1.000 canributlo aMd a $30,000 candidate Joan an Ocobar 21, 1994 reportsh'owing a cMidatc loan of $71,775;m October27, 1994 report showing a$1,500 contributimuaud a $1,000 contibution; an October 28, 1994 report sluwing a $1,000 conibuion; an Octobe28,1994 report showiug a 5195.000 =udidat loan and a SI.000 cotrihuinn; an Octohcr 1 I,1994 report showing four SI ,000 contrlbution; a Novanber 3, 1994 report showing a $4,912.47

o £ mN 3,1994 rpt a anm cloam of JS3 M0 n a NammO4. 1994 sapor shwing a -i- so oa 7g0

7. alr . uOf Owe.digulagu - m 46s upow v .wm fally dbiaan Scbedls A md C of th Cmmitt 30 D Pt-b Repat

$. I becum a o s powU po Mobl- ommt om e 48-how reports ta*yaer ," 1-an M W d Mdr FB &W ae 132, 19S. '-W8 W u__d hth, Commium did not ffia48m- repapt dswin oma d am aofSIj .O.. Th dFloned tis a ---t on an & f - tw ..... u.. .d - ..od by the-m --, ,Ps-ao repast

9. 1 ui y bi to this day tdato 6b ,ie 41-bow rt v A , l ow5195,000 loan mccived Rm Dr. Fmem n Ocob 2k, Md . This rum is based an nwclear Iccio, m int the newut rcdmpe a v im flloed ra$dig ta 48.bowmromdt fo iloa. I ditintily aunenber bein hiamc orDr. Puinea~s SI 950000 1oa6 rflhl ou a45-hou repor disclosing this lom on te @me day, and eroding it to, be fixod to Ow both eClark of* tim u ad the StC of Tar.~ui amumuo 18im my Otkutal. "Me48-hoW repoz shWin this IO was M tct te secod 46-hour reast ta I 1us ppow anOctobe 28, 1994. 1 had mtzimc ur ce a 46-how epat for a S 1,00 cotuubutim awl fixed ittn the Clerk of the Hoame.

10. My W bW u twa 48-hos wote was, fazed to &he Clark of thc Hoe arW the$tae of 'I== lFthia -qanumido fiern ow Ctulama October 2C,1994 is comirwed byAT&T phon records Then records showthu £83 fox waraeiw by tOw Goe& or*&Iouam at 3:28 pin. Een tim and the -1con a ( was seculwd at j 052 pju. Faster aimsTem rewda iro" ow doa th eSm two kim t the shoos Of r=s Fiion 0c to 2,1994. JwedTeams conrm tha tw4.-hou rcport showi th S9,000 lm wau i fct A ceived ad jm a by db-r offcwiohn h ova nporg period.

, .. ,1 a Ow Cui as t 48-ho rpast listing the $195,000 cuigenloa wtprucam d by the rk ofw ous, ma *a p - --. , ,wClak 'mislaed the sqxo ore ini th"leutw a ladviat areas via made at Oogthmam- we tried so Me the ori so that we d&al nie Mw carHa41-1w0reporttwic .I ewu off'r noadhr cg on ms to why to Clak of the Housc watmmly did notrecive this 48-hogr "War tYet tihe -" of 11xa -thic Cul- d.

12. Alhoo I b m so mue Mw t o how Th Chat could no, 1mws MeiWd

po-fit tatitwa actually fixed to bot t& Clerk ofteh Hos a tmU Toa Ethics

13.A As gwin rts N fir Cspus Csmsi i. m -avmW.m# dot~m~sm swf an :: w-0kf- ftft mhd wmd00

mmmsuh . sb B ~ m~ iamkmdnmm

wm do mdmo 49 m a dmyf fWuf

14. Ism do dbtd ofm bsis pmjuid by 6@ FEC for ou sym mduxms in am 1m W, ma rdlw" p I u gab of'I ic&earl 1IMca Campsig Act, ourCa ri now boebw hwandm vh Onc m or m d awmv, bb N c.

Darn Sullven

Swam to md t A Ibefor a'.man this jzLday of AF- nm- 1996.

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1 1I/07 6t02P TO WASHINSTON DC 202 963-7362 1 DOC EVE2 10/07 6,03P TO WASHINSTON DC 202 063-7502 2 DOC EVE3 16/10 11,S0A TO STPETERS3O FL 13 521-449 1 Dec BAY 36a4 10/1S 2:32P TO FLS CHURCH VA 703 S6-9765 2 DC SAy 27+S 10/14 3,469P TO ORLEANS "A SO$ 2S-24 2 5 DeC DAY .946 10/19 4:40P TO WASHINGTON DC 202 714-567 1 DoC DAY 1.4647 10/19 4:46P TO WASHINGTON DC 202 714-14S7 1 DDC DAY .29a6 10/19 4,47P TO WASHINGTON DC 292 46-4161 1 DOC DAy .29 10/20 10-47A TO WASHINGTON DC 202 225-7761 1 DOC DAY .292i6 100/1 9:15A TO WASHINGTON DC 202 215-7761 1 DOC DAY .29a11 10/23 851P TO STEVENSVL ND 410 643-1437 1 OC EVE .16a12 10/23 6:5S3P TO STEVENSYL ND 410 643-1437 3 DiC EVE .1813 10/2S 11z12A TO WASHINGTON DC 202 65*4561 4 DoC SAY 1.19314 11/25 1,49P TO WASHINGTON DC 202 634-4%1 2 DOC DAY SSIS 10/2S 11]46P TO PILA PA 215 627-6139 A DDC NT/.916 1O/2S 11:49P TO PHILA PA 215 627-6139 1 DOC ET/I1( .II(17 10/2S I1SSP To PHILA PA 215 627-6139 1 DoC KT/m .+6.16 10/25 11:57P TO PHILA PA 215 627-8629 1 DoC NT/SE .16+19 16/2S 11:SP TO PHILA PA 215 627-29 1 DeC NT/M( .10+ZO 10/26 12:80A TO PHILA PA 215 627-6629 1 DeC NT/SK .18421 10/26 12:01A TO PHILA PA 215 627-6629 1 DDC NT/wK .16422 10/26 202A TO PHILA PA 215 6276629 1 DC NT/ME .16423 10/26 12:03A TO PHILA PA 215 627-629 7 DDC NI/SE 1.2924 10/26 1:20P TO WASHINGTON DC 202 638-4561 3 DOC DAY 29225 10/26 2:15P TO PHILA PA .215 627-629 3 DoC DAY .09*26 10/27 12106P TO WASHINGTON DC " 202 225-771 1 0DC DAY .29427 10/28 4:04P TO ORLEANS MA 506 2SS-2042 2 DOC DAY .s9.23 10/26 7:28P TO WASHINGTON PC 202 225-7711 1 DOC EVE29 10/28 9:52P TO WASHINGTON DC 202 22S-7761 1 DC EVE .1e36 10/31 3:29P TO WASHINGTON DC 202 225-7781 2 DoC DAY .9a!31 10/31 6:35P TO VRZGINISCH VA 664 424-32S4 3 DDC EVE SS+32 11/01 1:52P TO WASHINGTON DC 202 833-1360 6 Doc DAY 1.76333 11/61 2:16P TO WASHINGTON DC 202 633-0555 7 DOC DAY 2.a34 11/13 16:13A TO WASHINGTON DC ' 202 225-7761 1 DoC Ay .935 11/03 2:S8P TO WASHINGTON DC 202 225-7781 1 DOC DAY .29236 11/04 2:38P TO WASHINGTON DC " 202 225-7701 1 DOC DAY 292CALLS BILLED TO 713 998-3357 SUBTOTAL 616.4437 10/67 1,13P TO WASHINGTON DC 202 $82-1234 2 DOC DAY ."a;36 10/07 1:2SP 0 WASHINGTON DC 202 582-1234 6 DoC DAY 1.763 -39 10/08 10:44A TO PHILA PA 215 627-6429 1 DOC NT/ S .1440 10/10 6:lP TO FLS CHURCH VA 703 5S6-01 I DOC EVE .16+41 10/11 12:26P TO WASHINGTON DC 202 544-0353 6 DOC DAY 1.783 -42 10/12 7:z9A TO STEVENSVL OD 410 643-4722 2 DoC NT/SE .36*43 10/13 *:04A TO PHILA PA 215 627-6139 1 DOC DAY .29+44 10/13 1:44P TO PHILA PA 215 627-0629 1 DOC DAY .294.45 10/14 lO:SOA TO ARLINGTON VA 703 684-6633 1 DOC DAY .29+46 1O/1s 1:59P TO FLS CHURCH VA 703 5S6-01 1 DC NT/SE .16+47 10/18 4:17P TO WASHINGTON DC 202 636-1507 6 DoC DAY 1.7348 10/19 12:65P TO PAiRVILLE NO 816 746-4116 1 DUC DAY .27 -49 16/19 12:07f TO WASHINGTON DC 202 479-7600 1 OC DAY .29a50 10/19 4:40P TO WASHINGTON DC 202 638-1567 7 DoC DAY .S9a51 10/21 12;03P TO WASHINGTON DC 202 662-7449 1 DOC DAY .29a52 16/21 3:24P TO WASHINGTON PC 202 452-6*6 S OC DAY 1.463S3 10/23 9:59A TO STEVENSVL MD 410 643-4722 1 DOC NT/Sl .3441S4 10/25 1:20P TO PHILA PA 215 566-4134 4 DOC DAY 1.194SS 10/25 9:22 TO WASHINGTON DC 202 630-157 1 DDC EVE .1ea56 10/26 4:16P TO ARLINGtON VA 703 664-0633 5 DoC DAY 1.46 757 10/17 2:21F TO wASHINmtnu Dc 202 4804 ZZ6Z I DC DAY .Zi9 Z58 10/27 4. 7P TO ARLINOTON VA 703 6O4-6633 2 DVC DAY

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10 11/03 7:SZP TO PHILA PA11 11/03 7:S3r TO PHILA PA

508 255-770S202 714-6067202 638-1S07703 684-0633410 643-4722202 225-4649202 22s-2774202 479-7097215 627-6139215 627-6629215 627-6139

1 DDC DAYI DDC DAY1 DDC DAY

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SUBTOTALTDTAL

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p/17 10/28 6:02P TO AUSTIN TX18 10/31 3:19 TO AUSTIN TX19 11/03 10:1A TO AUSTIN TX20 11/03 2106P TO AUSTIN TX21 11/04 2:07P TO AUSTIN TX22 11/04 2iSaP TO AUSTIN TX

" 512 463-5777/ S12 463-5777/ 512 463-S777/ 512 463-5777/ 512 463-5777/ 512 463-5777/ 512 463-5777/ 512 463-5777,"512 463-5777' 512 463-5777/ 512 463-5777

CALLS BILLED TO 713 998-535723 11/02 2t35P TO DALLAS TX 214 922-3366

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FR BAYTOWN - TX 713 424-7413

2 DDC DAY2 DDC DAY2 DDC DAY2 DDC DAY2 DDC DAY2 DDC EVE2 DDC DAY2 DDC DAY2 DDC DAY2 DDC DAY2 DDC DAY

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SUBTOTALTOTAL

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FR ELLINGTON TX29 10/10 3:14P TO FLS CHURCH VA

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FR ELLINGTON TX32 10/21 15iS TO HOUSTON TX

FR ELLINGTON TX33 10/21 1:59s, TO FLS CHURCH VA

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FR ELLINGTON TX36 10/24 3;5' TO PHILA . PA

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48 HOUR NOTICE OFCONTRIBUTIONS/LOANS RECEIVED

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1?STM of Level 1 Printed in FULL format.Copyright 1994 The Houston Chronicle Publishing Campany

The Halsto Chrnicle

October 16, 1994, Sunday, 2 STAR Edition

SECTION: A; Pg. 1

LENGTH: 1544 words

HEADLINE: 25th District leaders stand at right angles on issuesBYLINE: ALAN BERNSTEIN, Houston Chronicle Political Writer; Staff

BODY:The 25th Congressional District, stretching in jagged linesfrom Missouri City to Baytown, looks like a tangled wreck.But it was no accident. Democratic state lawmakers engineered

- the district to vote Democratic in congressional elections, on thestrength of black voters in north Fort Bend County and unionmembers in east Harris County.

Now their best laid plans are being tested by Republicancandidate Gene Fontenot, a millionaire hospital owner who rented ahouse in the Heyerland part of the district last year and stillowns a mansion three districts away in Spring.Fontenot, 58, has roots in the religious right movement,wants to revive Ronald Reagan's ""trickle down'' economics andopposes abortion, even in cases of rape, incest and endangerment ofT the pregnant woman's life. So under normal circumstances, he might-not be a natural fit for a district that gave its biggest chunk ofvotes to Bill Clinton in 1992.

But Fontenot, a Navy surgeon in the Vietnam War, is operating7under special conditions.

Democratic U.S. Rep. Mike Andrews, who had a lock on the seatfor 12 years, isn't on the ballot this Nov. 8. He sought hisparty's U.S. Senate nomination in the spring primary, but lost.In a year of widespread disgust with Clinton and theDemocratic-controlled

Congress, the Democratic nominee neverthelesscomes straight from the Democratic establishment. Investment bankerKen Bentsen Jr., 35, is a former congressional aide, formerchairman of the Harris County Democratic Party and the nephew ofClinton's treasury secretary, former U.S.Sen. Lloyd Bentsen.Fontenot s injeted more than $ 2 million f his own mn einto his cmai r~ in umerous teli oncu rrila d

making le contributions to c -o-univ n rar ans a cross t he30-mile-wide district -Bntsen, through fund-raisers that star his

ThsHesOMe Orsici OCN*be 16. 1

uncle, has gathered at least $ 650,000 in contributions.Two other candidates, both 52, are on the ballot. They are

independent Sarah Llein-Tower, a lawyer and former congressiOUalaide who says her parental and business experience make her a goodlistener, and Libertarian Robert Lockhart, an accountant who callsfor government deregulation of health care, prescription drugs andmany other things.

Health care reform, which recently transfixed Congress, is avirtual nonissue in the race even though the district encompassesthe Texas Medical Center and Fontenot amassed much of his wealthbuying and selling hospitals.

Instead, Fontenot sings from the Reagan songbook. Hiscommercials promote ""lower taxes, safer streets, less government,welfare reform, term limits and the balanced budget amendment,''and the-candidate says lower taxes would allow people to invest inbusinesses that create jobs. Fontenot even sounds like Reagan as hetells voters in a breathy and amiable voice, ""I'm the conservativein the race. 1'Bentsen calls Fontenot's platform a charade, saying theRepublican would join GOP members of Congress in cutting Medicare,Social Security and other benefits while giving tax breaks to thewealthy.

Fontenot has avoided debates and most joint appearances withBentsen, preferring to spend time going door-to-door in search ofvotes in blue-collar east Harris County. Fontenot's campaign is socarefully scripted that the written text of his speech announcinghis candidacy included a reminder for him to look at his wife andchildren when talking about them.

Bentsen began his general election campaign touting hisexperience in government, politics and business. He has called formajor changer in how Congress-~operates, for new government jobtraining programs in the Houston area, and for tougher effortsagainst the flow of illegal drugs through the Port of Houston.

Like many Democratic congressional candidates across thenation, he has tried to put some distance between himself and theunpopular president.

""If the president's right, I'll say so. If he's wrong, I'llstand my ground and fight,'' Bentsen said a few weeks ago. OnSaturday, however, Fontenot launched a TV commercial containingedited video of Bentsen saying, ""I agree with the president onjust about every issue. '' Fontenot said the video was recorded inApril.

In the last few days, Bentsen has focused on Fontenot'sunequivocal stance against abortion. Bentsen calls Fontenot aradical extremist out of touch with the district. Fontenot'sspokesman responds that Bentsen is out of the mainstream forsupporting federal funding of abortions for poor women and for

The Hojaw@ amea, October 16.

opposing ""parental consent' requirements for girls seeking,Abortions.

Much of Bentsen's campaign has been a series of volleysagainst Fontenot'Is background. For instance, Bentsen'Is combiag ofcandidate disclosure forms showed that while Fontenot opposesgambling and abortion, he owned stock last year in a casino and adrug company that conducts research with cells derived from deadfetuses.

With 1992 independent presidential candidate Ross Peroturging voters to put more Republicans in Congress, and with pollsshowing the GOP gaining strength across the nation, Fontenotblithely responds to the attacks by saying that Bentsen shouldinstead explain his opposition to a balanced budget amendment andother features of the national GOP agenda. (Bentsen favorslegislation requiring the president to develop a balanced budget,but opposes a constitutional amendment).

The two other candidates are modestly plugging away with muchless money. Klein-Tower was a Democratic congressional aide andClinton campaign volunteer, but as an independent contender shieoffers ""a practical, nonpartisan approach. 1

Rather than takes sides on a laundry list of legislation,Klein-Tower says she would conduct ""interactive dialogue,' andthen vote the consensus of the district.

""Your agenda, not mine.'' is one of her campaign slogans.and she bemoans negative campaigning such as Bentsen's thrustsagainst Fontenot-

Lockhart says he would put his accounting skills to use inthe downsizing of the federal government. ""The potentialbankruptcy of the federal government is the most i nediate problemto be addressed,'' he says.

in the meantime, the two major party candidates spar overspecific policy questions through press releases and printedhand-outs.

Fontenot, who once commissioned a $ 300,000 installation ofmarble tiles at his villa-style residence in Spring, calls for aflat income tax rate - - meaning the wealthy would pay the IRS atthe same rate as everyone else. Bentsen, who reported a salary ofabout $ 240,000 last year and worked for the now-defunct ""junkbond'' dealers Drexel Burnham Lambert, says the rich should have tocontinue paying taxes at a higher rate.

Fontenot wants to abolish the U.S. Department of Education,saying it would save the federal government $ 30 billion a year.

Bentsen says the move would cut Head Start funds, collegescholarships and other programs that benefit the district.

Bentsen supported President Clinton' s successful crime bill,citing its funding for more local police officers and for federal prisonconstruction. Fontenot opposed the bill, saying it wasburdened by too many social programs such as *emidnightbasketball'' clinics for inner-city youth.

When Fontenot ran against businesswoman Dolly Madison mcitennain this year' s Republican primary, he promoted the idea thatmembers of the state parole board should be elected rather thanappointed by the governor. Congress has no control over stateparole boards, but Fontenot explained that he would use the job ofU.S. representative to persuade state officials to toughen thecriminal justice system.

Bentsen got his party's nomination in a run-off againstformer Houston Councilwoman Beverley Clark. Bentsen made abortion akey issue in that race, too, citing Clark's opposition to it.

While Fontenot, Klein-Tower and Lockhart oppose Clinton'sproposal to require business to pay most of their employee's healthinsurance premiums, Bentsen - - in an approach typical of his standson some other issues - - hedges his opinion. He says he would mostlikely favor legislation that doesn't initially enforce *"employermandates'' but would install them if other health care reformsdon't provide the -"universal coverage'' sought by Clinton.

Before running for Congress, Fontenot served on the advisorycouncil of Citizens for American Restoration, a local group thatwants to ""restore America to its Christian heritage'' and extendf.undamentalist Christian teachings into civil government. The groupis run by Christian conservative leader Dr. Steven Hotze. whoformed a corporation with Fontenot to oppose government-run healthcare.

Fontenot also held a fund-raiser for judicial candidate JohnDevine, whose campaign literature promoted ""Christianity inAmerica.'' and helped bankroll the unsuccessful campaign of a Xleinschool board candidate who advocated teaching religion in schools.

But other than using his kick-off speech to decry ""the moraland cultural vacuum in this country,'' Fontenot has left religionout of his standard campaign spiel.

GRAPHiIC: Mugs: 1. Ken Bentsen (color); 2. Gene Fontenot (color); 3. SarahKlein-Tower (b/w, p. 18); 4.Robert Lockhart (b/w, p. 18); Map: Location ofUnited States Congressional District 25 (b/w, p. 18); 5. Houston Chronicle

LANGUAGE: ENGLISH

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His opponent Democnt Ken 8e-ten -,has tried to demonise Fontenot s a scarycre fr m the murky bogs of the relgiousright, a characterization to which Fontenotand his operatives strenuously object. Or, atleast, Fontenot @*Pw, to objct, althugh try-lng to engage him on the topic is to take ad riting umey tough the thickets of hissometimes tangled syntax - and not toemerge into the light But what little record ofpolitical involvement Fontenot establishedbefore he began nmning for Cong. mostlystewuned from his financial support of candi-dates and organizations that believe govern-ment should operate according to their inter-pretation of the Bible, and who believe thehallowed constitutional wall between churchand state shouldn't exist

And what little he's told his new neighborsin the 25th Congressional Listrict about him-self has come almost exclusively in settingshis campaign controls - primarily in the hun-dreds of thousands of dollars of tevision andradio ads bought with the $1.6 nilion (as ofthe last public accounting) he's donated orlent to his campaign. As of this week,Fontenot had not engaged in a debate withBentsen. and since he announced his candi-dacy late last year. he has conducted only onenews conk-rcnce. In the few appearances he'smade with Bentsen before unaligned groups.Fontenot has read his positions from a pre-pared text and hasn't taken questions fromhis audiences.

Fontenot does S.pend a good deal of time"block walking" in the east Harris County por-tion of the district. hut his encmnters withwOild-be votcrs there are only slightly less.pontancoi.s than his glossy TV nlnm.rciakWhen Fontenot and wife Reina go door-to-

For vo4trs who'd lks to kaw more.Foaenotl laes Ohem v f hnAdon ashe hands them his door hanger: "What Istand for," he says, "is on the back."O n the kont of his door hanger, is a pic-ture of Fontenot lookin intent as he

cradles a phone receiver., and a sparsethumbnail sketch of his We: "bmtlef&eksurgeon" (he pulled a year's duty as a

Navy surgeon in Vietnam in 1967-6), "prc-tcn physia" (a claim he aknowledges isa mistake, since it's been a decade since hepracticed medicine). "successful business-man" and "family man."

Born in New Orleans and raised justsouthwest of the city in the rural backwaterof LaFourche Parish, Fontenot says hisfather was a dairy farmer, and he grew up ina household where French and Englishwere spoken. He attended Louisiana StateUniversity. where he obtained a degree inchemistry in 1958 and was president of theDelta Sigma Phi fraternity, and laterenrolled in medical school at the UniversityAutonoma of Guadalajara. Mexico. where hegraduated in 1963. Part of his medical resi-dency was completed at the old MemorialBaptist Hospital in downtown Houston. and,after fulfilling his military obligation.Fontenot returned to the city and set up afamily practice.

Fontenot retains a trace of a Crlln accent.and occavoally in con his voice willtake on an avuncular lilt, making him woundlike a bayou country Ronald Reagan. likeReagan, he says "go-sh" when he wants tounderscore his mock incredulity at s, me-Continued on page 12

October 13 - 19, 1994

-1116

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The b*g stoy'sright here nowA TI - "a the atw"alv ae dia" ed on the

Texas governor's race.tey're _ a r story in ourcongrmioml r As may as sxor seven Tun u -m m -- are en.dangered to mone degre, whichcould lead to our first-ever Republi-can Hoe delegation.

Perhaps the most interesting racein the hunch is for e open Houseseat in Ho nvcao by Mike An.drew, wher Km whe eae, a SelsenDemocrat both by bloo md philos.ophy, faces a radical right-wingChristian, Gme Fuka Who couldvery well win.

When I my 'radicei righ-wing:tmts just what 1 moan. w i one motonly appms abortion in all rcom.'stances Md acts as tbe df fian-cial office of an iutfit called Ameri.can Restretin, which wants toabolish the separ6in of rCh - C iadstate. hut be Mm tlaims God as hisiteroor decorator.

Just $935,000Actually. it's Mrs. featno who

claims God as her detumbo in a brochure. signed by bh Foolsats.about their e. Ther olime iQuestion as a inSAN bnmam builton 46 aces in Spring. hch hppnot to bem e aqrma dist. ictfor which FnleMtb" MMv& hutwhettehey, K's a wdrd Your. In theb ohure, . Fo oon" wries:

i uld Ilk Me to AM with youbow this -4 nad agnrvicenthowe caie about ft began am daywhen my inuad amd. '" kno.Rem. oem day we art t f builda big, beauifu haun-* CHteas thetruth. I was quite tifdiled with theone we owned, but as I prayed andbegan to ecpt my bosband'sdream. I found It tvry pl toMe

Listeniig to 2To* 'I

C ENTE - rr'S Met tW premets Gee Acre It's the e-ble TV aordlty of Wa~me

Woarm withka i-aw a sal. tntU1. Mattie Pary in e b mLAdHati Dellinger, the bltam i te rtl

Mk you Wp to be 3 like I am. yu

can expe you elf." idsttle UNl a rM,cent gut, Gov. Am Richards. on herradio ad cable TV Mro-pow olnl.town Teas.

Thanks to Mauie's qesmmm and tim-probable ies. e learmnd me thingsabout Richards during the interview.

She's a bit ncm nfortake when TVcameras record her getting minnod out ofcars became "yeu skirt rides up." Sh's"irritated" about the new wachooks ather church. Her mon returs birthdayprments because "she loves ivsin thatcredit"

These inside details - and more -surfaced dung Richards' visit in theKDET studio with Mattise The interviewwas broadcast on the radio station (Mat.tie's son is geml manager) and airedon the local cable system, Nothing fancyhere. jst a couple of grandmas talkinggrandkids. beauty pariors and chorch.One happens to be governor. The other

With a computer, emmayBy PATSPfC*L TO TuI

ComerservSas Of thkow, I've doI've spent fivichips to do f"brai cells can

With peopletandem, the of

world of comfairies.hut the

It's wortiwiour prvcvnce"that we can kmegabte out C

People canwork A betterpeople can M0%. O.

work more or plcMMomL Conuter Inmq*

EOUSTON POST stre, the More &are the obiquMus, siet g. A coomp

m o d e r n o ff ic e . I s bi n o ue. r I

e m y best to h t them tie (r e

years te a ing" a- Thi ere's I only mrM e w ok o th a t i a n u e tt i fro m I

do creative work. ley the ftu oI

andcomputers w nt* In IL Or you can do Irfice is a more Vrdctve formaion Mob dieWell. ometimes ... The iCm -'en moilpotr has hosts of good SI. Mo r e Wbt he grembas as well. teach you cruativie to examine sme of make It esie'r forIons about conetet so Stove dens Into Ieep them from taking a But copetersI eff enCY..vie C fen ten mreally focus on Lpwter beyond the defaNlVay of puting It is that t groffit• -illy focus on em"pluters age fies of many I.A$- ag files of&

You had te begl0imporat te ldnot traveling fth I

The fon sanedRichards to h1r-wro feMlwd her 6

"Raie yoar haMattie told the vid

They did.Richards mid sh

relaxed" when theThat's when it hoo f s em -d e t e a por im it Own% eq

- itbother"Sooetina it,

ards, in full mknow when yow vyour skirt rides uphanging out fon asthey're taking yaw

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my liuhead sold V&R we ate hare ith"g Kg M h an maolte.alM Via ye'll MWd 1W ar *MM

hms. I prayd h od fur dietoamd uogu the uo Ious Itulbral

r p t I'd ever sm-1hae at a m.O In the world to

doubt Mm rretanot. hut I must mythat of all the reasm Iveeer heardgiven for sha pp iag III you drop, thisis the must original.

Fontenot is a mllhenir privatehPSptal luvStor who wats the fed.eral government to pay private hos.pils. Ike Was. to plvide holt careistead of funding public hoptals.like Parkland Memorial in Nilas.Hes already spent 51.6 mi of hsOM money on the race. and KenBentm. a mouon hoinmwan. isgetting swamped by bucks. Foatenota5 claims to be -a preic phyi.cim and lawyr." He got his medicaldere from the UniveWy of Gua.dalajara in 196 and last pract cedmedicine tnr19l: he ba never prac-ticed law.

Readly sol*mnFotenot wants to cut off all leder.

&I aid to ed-ction This mu sounwa cla, but m The 'eoteun Cove.

ineet, the statement of purpose putout by Cities for Amean Resto.rae Point 4 reads. " iuation isthe primary y of par-ents a" pas nOt the Slate. arethe stewards of heir childM. Allattenps by the State to inerferewith ald control prMate, parochialand home education must bestoped.-

Iamlut documet, the SoekmnCovenant. Among its points: Thepower to tar is deli from andimited by Gods laws. Tam uponiblritace and property am onabi-cal forms of taation w are det.rimental to the estntem Oad well-being of the family and tamMtion as a whole."

Point informs of -God's lawsof e oomics- (God doesn't i*e itla.tm. or immoral wealth redtarub.tion). while Point 9 quite b lthey s..persedes the entire Cmtmaon andlinits gove rMenI to -he properbibi I concerns-

This document, to which EugeneFontenot has sworn allq t, is on.qwstoaaby a plun to Overthrow theCOutitation of the thuted StatesThat someone Committed to its prin-cips is apparet.ly about to be ekect,ed to ConrM from Houston should.it seems to me. give us quite samepasse

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he .'.m i nbLg eml

d .M ed ftinpa -m l ew d met thThe Raud d miir a MGu maynot bew no .,L may116ol ha ruue a ewe that

miht MMhe be" own = way ofte stick an mi m hweap, ws haveeM Came up oh a ollsmmn for an.the-clock 68=111r T mmPic.'"For many conuptr pm players, theEscape key mana ju thL

Dectrnti aali ma kM it eeer forpeople I, te mee I 7, hi *:uckUnfortunately. sometImes the peoplewho get in touch are the ons fromwhom you don't wast to hMr.

Self-important memo writers or Idlescribblers can cluter your E-mail withdebris. Do you rally want to reed areport on the pral of a search for anew coffee ver o?

E-mail imqos communication ifthe people who get it are the Pee whoneed to get It. Otherwise. ,-mai festersconfusion by inv!tn all revun to be-come a part of the Isme 6eig dimed.

compue" c ma swo a Ilo of Jfo m..ton. Yes. and your attIc mcu stur a tonof junk. How much do ye want to -pileup" in yor storage'

You can squirrel away Utm after itemIn Year computer menio. The proMemis will you ever be able to find It apin?Try to find a old tennis racket among thebeuei of Iselany in your how's attic.Further. even the mst cspees at-tic can beoverloaded. HIS the mine with

Tenn limits woul(ERM UMrT IS the ime of the year. ft wefIea dilsent. Term limits Is one f the mostSmisguded -an deep cymenI - Wos to

oUattain 4 loen time, ad would do IttMe to solve tinproblems Itsq mos s Iwud. In fact term liitsweed make this Worse.We admit to a pueofte: In tn post, me mbr ofOur family haoe seein cawng s far longer thMany term-limit momre wold have permitted. Weaim agree tat many of th cmplaints div themment arm leugt Wh maintaining a majr.Ity in the iHme for 40 stmlght yem Democrats have

rown arrogunt and eied. Too often, they we theirpower to imit debate and block Repulican amend-ment. Canmmttee memei an d staff resourcesam tilted far too beavly to the majority se.

Bkt arbitrary term limats Is at the amwe. For oeething we already have a goid sysan. Its called elec-tiom And. contrary to cmovlonal wisdom. electimwork No matter whath hapem in next month's bullot.is. one remlt is mathematically cetin - just abouthalf the Houe Will have been eected since 1190. If thethrw-the-beuI t senmnt is an stron as it seems,It could be that the murit will Mae been there onlysome the 192 election. In fact the voters will have achance to throw out all the membem of the House. Orto kfep them In office for as long as they do their job.why siouldn't the peol have that right? Imposingterm limits is almost as udeocratic as elimigatlelections (Yes. we do liit p . and many VV-

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CAMPAIGN 194Bentsen says Fontenot's

TV ad an 'outrageous lie'" Y WILUAM r'ACKPOST POLITICAL REpOnTER

A day after calling his Repuh.litan opponent a "coward,"Democratic congressional candi-date Ken Bentsen added liar tohis description, of Gene Fontenot,saying the Republican candidateis spending millions on advertls-Ing aimed at deceiving the pub-lic.

Bentsen's emotional accusa-.tions against Fontenot followed-the broadcast of a Fontenot tele-vision ad calling Bentsen tie"front m-n" for a "Wall StreetJunk-bond artist" that bilked thestate out of $36 million.

Bentsen called the ad an "out-rageous lie" and said le had norole in tie ,narketing of thebonds that were attacked in thead. Be'ntsen later questioned Fon-tenot's business practices andnearly $3 million in liens filedagainst corporations Fontenothelped manage.

* Bentsen said the liens suggestFontenot is incnpable of manag.

:1 ing funds well and cast donbts onhis claims to be a succesful busi-*nessman.

B Bentsen. a formter IlarrisComty Democratic Party chair.man who once worked for the de-ftinrt investment banking firmDrexel Burnham Lahlbert. was adefendant in a lawsuit filed twoyears ago over the sale of tax-free bonds used to build six con-troversial private prisons. Theplaintiffs won an SR4 millionJ-dgment in tie sit earlier thismonth.

Bentsen said fie was dis-

charged from the suit "almmtimmediately" becauise he knewso little about the case and neverwas questioned by the plaintiffs.

But Jeff Yates, Fontenot';campaign manager. quoted anewspaper account IndicatingBentsen had been dropped fromthe suit because lie lackedenotRi assets to satisfy a judg-ment and because lie agreed toprovide file plaitiffs with nl or-mation about the case.

Yates said tle ad reflects sen-timents expressed by tle plain.tiffs' attorney.

Bentsei said Fontenot's adwas part of a multimtillon-dollarcampaign designed to coTealdetails of Fontenot's past fromthe public. Included In that pastis nearly $3 million in litis filedagainst louston Northwest Medi-cal Center Inc. and other corpo-rations Fontenot managed. Bent-sen said.

Yates would not discu dr.cuntstances surrounding the liensbecause the Bentsen campaigndid not provide details of thoseliens.

Yates also denied Fontenotwos trying to deceive the publicthroubgh high-powered advertis-ing. Yates said Fontennt had metwith voters neore than his Oppo-nent during the campaign and asa resvlt had a better sense of thepublic's mood than Bentsen.

The two men, along with Lib-ertarian Robert F. Lockhart andindepehdent Sarah Kleit-Tower,are running for tfe 25th congres-sional district seat currently heldby U.S. Rep. Mike Andrews.

.L : ! I . I I . I IP 4 l li s t ,*I : :'

A Mu6w Oosw-fw of .ised A i

Nws XEDZA ADVI;ORY

DATE: Tuesday, October 11, 1994CONTACT: Craig Varoga, Campaign anager/713-66

5-19 9 4

.. 4 W 8 C 0 N 7 E R E C 2

Congressional candidate Ken Bentsen will hq11 a news

conference today, at which lie will be endorsed by ftmerous pro-

choice leaders in Houston and Texas.

DATE: Ttiesday, October 11, 1994

TIME: 2:00 p. m.

PLACE: 3601 Tannin

Bentsen will also discuss his new TV commercial, which

discusses his opponent's extreme anti-choice position. Eugene

u Fontenot, the rightwing Repubaian ,,omlaee, ; z;-- " a Wninon's

right to choose, even in came oS f rae. -noos &Ilite of thei

mother. Fontenot's position may be the most rndical in the

country.

Bentsen, 35, has been endorsed by both the Houston Post and

Houston Chronicle. According to the Post, "Bentsen has the

potential to follow the same statesmanlike approach as his uncle,

the former senior senator from Texas." The Chronicle wrote, "'en

Bentsen is best suited to carry on the effective, reslponsible.

centrist representation that (Congressman hike) Andrews was noted

for and which best serves the needs of this extremely diversedistrict."

Eugene Fontenot, according to the Houston Post, is "a far-

right conservative supported by special-interest groups associated

with that wing of the Republican party." The Houston Chronicle

concluded, "Fontenot's ultraconservative views place him on the

extreme. There are overtones of the type of religious extremism

which makes the average voter quite uneasy." Fontenot won the GOP

primary in an upset against moderate Dolly Madison McKenna.

Fontenot has spent over $2 million of his personal fortune on

~) the election so far, more the anay other candiadet in the ou"trY.

( This is three times what Bentsen has spent.

The election, to be held on Tuesday, tovember 8, is currently

' considered a statistical dead heat, with both candidates'

percentages tied in the mid-aOs.

--- end--

*40$b

BatsenwesA Ne w w mL of @s-- I

TOR ZIEDIATg RELtA9M

CONTACT: Craig Varoqa, 713-665-1994DATE; Wednesday, October !2, 1994

ANTI-CROXCE EXTREM1CT PROFITI fROM F9TAL T1S6UZ RESEARCHFomtenot'a Stock Portfolio Continues tO be Issue in Race.HOUSTOR--Eugene Fontonot, the Republican nominee for Congressin the 25th District, was today exposed as an investor in Lilly Z11Co. , a company that conducts "biological recearch that involves theuse of human tissue and cell lines, including those of fetalorigin.", (See attached)

-118 is the *ame Dr. Fontenot who again this "cnth reaffirmedhis radical, extremist anti-choice position that a woman and herfamily should not have the right to choose _Lju slag-t., or when -tha- mitheu Lie I-ir n 1An byt D s..

Fontenot is running on the 1994 GOP platform, drafted by hiscampaign marager Jeffrey Yates and other members of the 1994 StateRepublican Party Platform Committee, whioh suppcrts:

"'leqisletion prohibiting exprimentetion with buman fetaltissue and prohibiting the use of huga fetal tissue or orvaaefor experimentation or oommeroial salt. Any productcontaining fetal tissue shall also be so labeled."According to Font4enots personal "Finarcial DisolosureStatement," filed with the Office cf the Clerk, U.S. House ofPepresen'atives on Novembor 15, 1993, Fontenot listed investmentsor as much as $15,000 in Lilly Eli Co. during 1992 and 1993 alone.

According to Ken Bentsen, the Democratic nominee: "fcw ingood cons-lance he can profit from investments in firms that dofetal tissue research at the same time he's telling woman and theirfamilies that they should not have the choice to terminate aFregnancy even vhen It's necessary to save the mother's life."Fontenot obviously thinks he can use his rilllons to get awaywith preaching one thing to women and their families and practicinanother when it effects his bank account."

Fontenot has attempted to claim that a woman's right to chooseis not an issue in this election, even though he has completedquestionnaires saying he supports changes in the federal lawsconcerning choice, includIng overturning Roe v. Wade. There arenumerous laws affecting a woman's right to choose, including theHyde Amandmant and clinic access laws.

) 0

Iv

. . . 0. .

Thes O@?t3oversy oncerning Pontenot's Gbock portfolio#. ti-hoice extremism is Just the mot , end&"'perisy exhibited by Fontenot. In renit cse port an thattenot invested up to 550,000 in y Circus Circus casinos, eventho*Jgh he claims to oppose ,la forms of gambling, inc'udnelasino, riverbn,,t, slot GahIabli.d 9O~ ne nt.. lud0,,e4mbllng as a means financing stete governnt onteo has Saidhe WOn't Oven shop at stores that sell lottery tickets.

Fontenot has also:

Claimed to be e "practicing physician" in campaignliterature although news reports and his orrlciaxbiography ststs he hasn't practiced medicine since 1984(or 1978, dependinq on the source). 14 todavf. nous6.,PUj, Foa tea hlais a" t say h. -=8ot icing hysahO WiianzUnti lest month, Fontenot continued tc claim a homesteadexemption on his 935 acre estate In Spring, 25 milesOutside the district, although he "moved,, and registeredto vote at a house he leased inside the district inOctober, 1993. just in time to announce his candidacy.Recently ducked out of several Previously scheduled jointappearances with Ken Ientsen, preferring to avoid directccntsct with the voters and a dialogue with Bentsen whilespending rillions to create a "new" imaqe in his effortto buy a Congressional seat.

In *ddit:on, the hospital that Fontenot co-oWned end operste411s been cited by the Equal Employment Opportunity Commissfon(EEOC) for discrlminatory hiring practices end his hospiteloperation has beer sued nany tives for allegedly engagIng Inimproper businvrg practices.

Fontenot's far-right extremism also includes Several otherradicl poi ions, including abolishing the entire federaleducation budget (including Head Start, o lege loans and grants,and all assistance to Texas school districts), liminatir.g the hosemortgage interest deduction for homeowners, end granting hugeincome t9X breaks to millionaires like himself.So far, Fontenot has spent ever $2 million of his -ersonalfortine trying to buy this eleation, *ore tha a othrCngx.e0 iona -candidate in the country.#This election wil not be bought by a radical rillioneire, nomatter how nuch Circus Circus or Lilly Eli money he spe.dsattenpting to hide his radical agenda ard personal hypocrisy frim.the voters," Bentsen concluded.

--ard--

ATTACHMENTS: Fontenot personal finance disclosureFetal tissue pclioy statement on Lilly Ell

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- : :~7IV~jGENERAL COUNSEL'S REPORT

L IA"KGROUND

Atachd is a conciliation agreement signed by the Respondents' counel.

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1. doI aum 1d qnune N with Foum for Coqu=am Ru Fammot, a Uv rr.

2. Cloe d fie.

3. Approve Urn -a p,- lelter.

Lawrence M. NobleGeneul Cmmel

BY: 4e a .0

Assocae GmW Counsel

S~ffeip.e jI AM

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4 i n0 •hn m m

Is the matter Of

ftmtenot for Coangress andReina Fontenot, as treasurer. MUR 4230

QWRIFIaTION

I, Marjorie w. wmmons, Secretary of the Federal ElectionComission, do hereby certify that on January 14, 1997, theComission decided by a vote of 5-0 to take the followingactions in MJR 4230:

1. Accept the conciliation agreement withFontenot for Congress and Reina Fontenot, astreasurer, as recomended in the GeneralCounsel's Report dated January 8, 1997.2. Close the file.

3. Approve the appropriate letter, as&=CC m -mded in the General Counsel's Reportdated Jmury S, 1997.Comissioners Aikens, Elliott, McDonald, McGarry, and

Thomas voted affirmatively for the decision.

Attest:

Date

Secretary of the COMission

Received in the Secretariat:Circulated to the Comission:Deadlins for vote:

bjr

Thurs., Jan. 09, 1997Thurs., Jan. 09, 1997Tues., Jan. 14, 1997

10:25 p.m.4:00 p.m.4:00 p.a.

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RUMIA ELECTION COMMISSIONS WMP--tO D.C. x%3

January 22, joy

DjiuM L OB~r.EquirPoos D"s, LLP.25501U S1,N.W.WV. D.C. 20037-1350

RE: MUR 4230Fontenot for Congr and

Dewr Mr. Ginbg: Reina Fontenot, as treawa'e

On Ja=f y 14,1997, the FeWd Election Commission accepted the signedncliuDO5agreem e-nt sumt d on your dients behalf in settlement of a violation of 2 U.s.c.§ 434(a6)(A), a provision of the Federal Election Campaign Act of 1971 , as amended ("theAct). Acwording, &he file has been closed in this matter.

T dp sion at 2 U.S.C. § 437g(aX 12) no longer apply and this matrS.is now pubic. In -ao athoug the complete file must be placed on the public reeo wiin30 dy ths comul at MW time Mowing certification of the Com i an% vot. If youS wish o submit SAY k l Or l48al Mie s to appear on the public record, pleme do so as mmasposible. While .he file , be placed on the publi record before civig yaw uNmOis my peumW"ls nloiwu will be added to the public record upon receip

wt m na wderived co---ctn with any conciliation attempt will not becom publicwithot the writmuomm o f ne W ofteand the Commission. S 2 UCN I 437Va(4)(B).M TetAnekd rcnmoiliat2on agreement, however, will become a purt ofste, pawirecorda

Enclosed y~ou will find a coff ofte fuly executed conciliation %pema f ~fl.Please n t. ha1tecivilpmlty Is dewithin 30 days of the conciliation ag OrMU effctivet. If you have my pMe conact me at (202) 219-3690.

Sincerely,

Jeffrey D. LongParalegal

E-klwe C Yo T6Oi f AND TOI ssion' 2M Amn nersatCooahn AgIMY TODA AND) TOMORROWOEOKCAM.EEN TOHEGn PUBLIC WNORMWo

BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of:)

Fontenot for Congress ) MUR 4230and Reina Fontenot, as treasurer )

. T

CONCILIATION AGREEMENTC-3

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

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

The Commission found probable cause to believe that Fontenot for Congress and Reina

Fontenot. as treasurer ("Respondents"), violated 2 U.S.C. § 434(a)(6XA).

NOW. THEREFORE. the Commission and the Respondents. having duly entered into

conciliation pursuant to 2 U.S.C. § 437g(aX4)(AXi), do hereby agree as follows:

I. The Commission has jurisdiction over the Respondents and the subject matter of this

proceeding.

I!. Respondents have had a reasonable opportunity to demonstrate that no action should be

taken in this matter.

II. Respondents enter voluntarily into this agreement with the Commission.

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

1. Fontenot for Congress is a political committee within the meaning of 2 U.S.C.

§ 43 1(4), and is the authorized principal campaign committee for Eugene Fontenot, Jr.'s 1994

congressional campaign.

2. Reina Fontenot is the treasurer of Fontenot for Congress. Susan Walden was the

treasurer at the time the violations occurred.

3. The Federal Election Campaign Act of 1971, as amended ("the Act"), 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

an), authorized committee of the candidate after the 20th day but more than 48 hours before any

election. 2 U.S.C. § 434(aX6XA). The Act further requires notification to be made within 48

hours after 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. Wd.

The notification of these contributions shall be in addition to all other reporting requirements.

2 U.S.C. § 434(aX69B).

4. According to 2 U.S.C. § 431(8)(A) and I C.F.R. § 100.7(a)(!)(B), a loan is a

contribution at the time it is made and is a contribution to the extent that it remains unpaid.

5. During the 1994 General Election. Respondents were required to report campaign

contributions of $1.000 or more received between October 20 and November 5. 1994, inclusive,

within 48 hours of receipt of the contribution.

6. On October 21. 1994. the Respondents received a loan from the candidate totaling

$71.885. On October 28. 1994, the Respondents received a contribution of $1.000 from an

individual and a loan from the candidate totaling $195,000.

7. Despite attempts by the Respondents. as reflected in telephone records and other

documents received by the Clerk's office, neither the Commission nor the Clerk's Office has any

3 -

record of having received the required 48 Hour Notices for those contributions. The Texas

Ethics Commission did receive the required 48 Hour Notices for such contributions.

V. The Respondents failed to report campaign contributions of $1,000 or more received after

the 20th day, but more than 48 hours before the 1994 General Election, within 48 hours of

receipt of the contributions, in violation of 2 U.S.C. § 434(a)(6XA).

VI. Respondents will pay a civil penalty to the Federal Election Commission in the amount of

six thousand dollars ($ 6,000). pursuant to 2 U.S.C. § 437g(a)(5XA).

VII. The Commission. on request of anyone filing a complaint under 2 U.S.C. § 437g~a)(l)

concerning the matters at issue herein or on its own motion, may review compliance with this

agreement. If the Commission believes that this agreement or any requirement thereof has been

violated, it may- institute a civil action for relief in the U nited States District Court for the District

of Columbia.

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 thirty (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.

X. This ConcAliw n Agiment consitwtes 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. NobleGeneral Counsel

B Y:C _?Lois G. LernrAssociate General Counsel

FOR THE RESPONDENTS:

(Position) x

Date / - g 7

Date

u22O138

FEDERAL ELECTION COMMISS!ONiWASHI4 CTON. D.C. 0463

'I

THIS IS 11E EN OF M #

DATE FILD_____3CMNO W, V/

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FEDERAL ELECTION COMMISSIONWMUWmGO D.C. 3WS

Date: J*1

Hicrof ilE

Press

THE ATTACEED MATERIAL 18 BRING ADDED TO CLOSED MR

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PATTN OGS.L.L.P.81 550 M SRkC[T, N.W.

WASHINGTON. D.C. 20037-1350(2021 457-6000

FACSMMsiL US 467-635

Februatry 21, 1997

WuM I D0ftCCT 01AL

(202) 457-6405

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'A,

-IJeffrey LongOffice of the General CounselFederal Election Commission999 E Street, N.W.Washington, D.C. 20463

Re: MUR 4230 -- Fontenot for Congress and Reina Fontenot, as treasurer

Dear Mr. Long:

Enclosed please find a check repre-senting the amount required by the ConciliationAgreement in the above-captoned matter.

-14

Thank you for your attention.

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DOLLARS MW=

Woodre& BankFM19 ("1443-700

Ho bW 7707

FOR.

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FEDERAL ELECTION COMMISSION 11WASHINGTON, D C 20403

February 21, 1997

OUC Docket

Rosa E. SwintonAccounting Technician

Leslie D. BrownDisbursing Technician

SUBJECT: Account Determination for Funds Received

We recently reevda check from OTITra 0 hcnumber 24, dated Vgbviiy 219 1997, for the amutof Aciof the check and an r corresponec is; beingfrad. bS bhOwhich account the =ud shuk be depsie and give the MUR/Cainnmwand name associated with the deposit.

TO:

FRM:

SUBJECT

Rosa E. SwintonAccounting Technician

OOC Docket .d

Disposition of Funds Received

Leslie D. BrownDisbursing Technician

in the amount oand in the name

____Plac e~

__Budget Clearwing Account (QOC), 95F3875.16

Y"Civil Penalties Account, 95-1099.160

_Other

ignature Da zA~

mmA, -TO:

FRom:

RAI

dt 6A4-114-2 gff taSignature

.414D&E