December 2008 Federal Election Commission Volume 34, Number 12

Table of Contents

(continued on page 2) (continued on page 2)

 Court Cases

1 Unity08 v. FEC

2 FEC v. Jamie Jacob Morgan

1 Advisory Opinions

 Statistics

5 National Party Financial Activity 

through October 15

6 Nonfilers

 800 Line

6 Winding Down Your Federal 

Campaign

 Regulations

7 Administrative Fine Program 

Extension

 

 Outreach

9 FEC Announces Campaign 

Finance Law Conferences in 2009

10 Index

Advisory 

Opinions

Unity08 v. FEC

On October 16, 2008, the U.S. 

District Court for the District of 

Columbia granted the FEC’s motion for summary judgment, finding 

that the FEC’s interpretation of the 

Federal Election Campaign Act (the 

Act) with regard to the activities of 

Unity08 (Plaintiff) was reasonable 

and that the FEC did not impermissibly infringe on Unity08’s rights 

under the First Amendment. 

Background

Unity08, a nonprofit corporation organized under the laws of 

the District of Columbia, described 

itself as a “political movement” 

formed for the purpose of nominating and electing a “Unity Ticket” 

in the 2008 Presidential election. 

Unity08 intended to solicit funds 

via the Internet in order to qualify 

for a position on the ballot in approximately 37 states and planned to 

hold an “Internet online nominating 

convention” after qualifying for ballot access to select its candidates for 

President and Vice President.

Unity08 filed an advisory opinion 

(AO) request with the FEC asking 

whether it would be considered a 

AO 2008-10

Online Advertising 

Vendor May Sell Political 

Advertising Services

A corporation that provides an 

Internet service that permits individuals and nonconnected political 

committees to post their own online 

political advertising content and 

permits individuals to purchase 

airtime for these ads or ads created 

by the corporation is considered to 

be a commercial vendor engaging in 

bona fide commercial activity. As a 

result, the corporation does not make 

prohibited contributions or expenditures under the Federal Election 

Campaign Act (the Act) by offering 

its service.

Background

WideOrbit, Inc. (the corporation) 

sells software packages to manage 

advertising. As part of its business, 

it has developed and operates an Internet service named VoterVoter.com 

(the web site) that allows individuals 

to purchase television airtime for ads 

posted on the web site that expressly 

advocate the election or defeat of 

federal candidates. Neither WideOrbit, Inc. nor VoterVoter.com is owned 

Court Cases
Federal Election Commission RECORD December 2008

2

Federal Election Commission

999 E Street, NW

Washington, DC 20463

800/424-9530 (Toll-Free)

202/694-1100 (Information Div.)

202/501-3413 (FEC Faxline)

202/219-3336 (TDD for the

 hearing impaired)

Donald F. McGahn II, Chairman

Steven T. Walther, Vice Chairman

Cynthia L. Bauerly, 

 Commissioner

Caroline C. Hunter, 

 Commissioner

Matthew S. Petersen, 

 Commissioner

Ellen L. Weintraub, 

 Commissioner

Joseph E. Stoltz,

 Acting Staff Director

Thomasenia Duncan, 

 General Counsel

Published by the Information

 Division of the Office of 

 Communications

Greg J. Scott, Assistant Staff

 Director

Amy L. Kort, Deputy Assistant 

 Staff Director

Myles G. Martin, Editor

http://www.fec.gov

Court Cases

(continued from page 1)

“political committee”1 before the 

conclusion of its online convention in the summer of 2008. In 

AO 2006-20 (See November 2006 

Record, page 4), the FEC concluded 

that Unity08 would be a political committee once it spent more 

than $1,000 for ballot access, since 

spending money for ballot access 

is considered an expenditure under 

the Act, Commission regulations 

and prior advisory opinions. See 

11 CFR 100.111(a). Additionally, 

the FEC determined that Unity08’s 

“major purpose” was the election 

or defeat of federal candidates, and 

therefore the FEC was not prevented 

by the First Amendment from finding that Unity08’s activities qualified 

it as a political committee.

Unity08 filed suit seeking to 

enjoin the FEC from enforcing 

AO 2006-20 against it and seeking a declaratory judgment that the 

advisory opinion violated its First 

Amendment rights. The FEC filed 

for summary judgment, arguing that 

Unity08 lacked standing to bring 

the action and that, even if Unity08 

had standing, the FEC’s decision 

was neither arbitrary nor capricious, 

nor did the decision infringe on the 

Plaintiff’s First Amendment rights. 

Decision

The court held that, since Unity08 

sought to obtain ballot access merely 

as a placeholder for its candidates, it 

was reasonable for the Commission 

to conclude that any monies Unity08 spent to qualify for the ballot 

would be considered expenditures 

under the Act. The court held that 

Unity08’s ballot access was certain 

to benefit its candidates, who would 

be identified by party affiliation and 

office sought, and who would have 

declared their intentions to run for 

federal office when this benefit is 

conferred upon them. Large, unregulated disbursements made to obtain 

such access would therefore present 

the possibility of actual or apparent 

corruption that the Act was intended 

to limit. The court also concluded 

that the FEC’s determination that 

Unity08 would qualify as a political committee did not violate the 

First Amendment because Unity08’s 

major purpose was to nominate and 

support candidates for federal office.

U.S. District Court for the District 

of Columbia, 1:07-cv-00053-RWR.

 —Myles Martin

Advisory Opinions

(continued from page 1)

or controlled by a candidate, political party or political committee.

Specifically, the web site allows 

individuals to view ads created by 

the corporation and by individuals 

and nonconnected political committees (creators). Then, through 

the corporation, individuals may 

purchase TV airtime for the ads that 

they have either chosen or created. 

The corporation receives revenue by 

charging the airtime purchaser a licensing fee for the use of ads created 

by the company and by obtaining a 

commission from the TV stations on 

1

 The Act defines a “political committee” as “any committee, club, association, or other group of persons which 

receives contributions aggregating in excess of $1,000 during a calendar year or 

which makes expenditures aggregating 

in excess of $1,000 during a calendar 

year.” 2 U.S.C. §431(4)(A).

FEC v. Jamie Jacob Morgan

On November 7, 2008, the U.S. 

District Court for the District of 

Columbia granted the Commission’s motion for entry of default 

judgment. The court declared that 

the defendant, Jamie Jacob Morgan, 

violated the terms of the conciliation agreement he entered into with 

the FEC and ordered him to pay the 

$60,000 civil penalty imposed by the 

conciliation agreement, plus interest. 

The court permanently enjoined Mr. 

Morgan from violating the conciliation agreement in the future. The 

court further ordered that any matter 

pertaining to this judgment falls 

within its jurisdiction and dismissed 

the case.

Mr. Morgan, a 2002 Congressional candidate and the de facto

treasurer of his campaign committee, entered into the conciliation 

agreement with the FEC on April 

20, 2007, for committing knowing 

and willful violations of the Federal 

Election Campaign Act. The Commission filed suit in the U.S. District 

Court against Mr. Morgan for failure 

to comply with the terms of this 

agreement. For additional information regarding this case, please 

consult the January 2008 Record, 

page 4. 

 —Michelle Ryan
December 2008 Federal Election Commission RECORD

3

(continued on page 4)

AO Search System 

Available

The FEC has an Advisory Opinion 

Search System available on its 

web site at www.fec.gov. This 

search function allows users to 

search for advisory opinions 

(AOs) by the AO number or name 

of requestor, or to enter search 

terms or perform an advanced 

search for documents. 

 The system quickly provides 

relevant AOs, along with all 

related documents including 

advisory opinion requests, 

comments and any concurring 

or dissenting opinions issued 

by Commissioners. The search 

function also provides summary 

material and links to other AOs 

cited in the opinion. 

 When the search system was 

first launched, it included AOs 

issued from 1997 to the present. 

The system has now been updated 

to include AOs dating back to 

1977. The AO search system is 

available at http://saos.nictusa.

com/saos/searchao.

candidates or solicitation of political contributions; 

• The items are sold at the vendor’s 

usual and normal charge; and 

• The purchases are made by individuals for their personal use. AOs 

1994-30 and 1989-21. 

The Commission has also considered other factors, including whether 

the entity is owned, controlled or 

affiliated with a candidate or political committee; is “in the business” 

of conducting the type of activity 

involved; and follows industry standards and usual and normal business 

practices. Matters Under Review 

(MURs) 5474 and 5539. 

The facts in this case indicate that 

the corporation will be acting as a 

commercial vendor for genuinely 

prospective purchasers regarding the 

creator of a given ad, whether other 

purchasers have also bought airtime 

for the ad or the scheduling or airing 

of ads. Similarly, the corporation 

will not give an ad’s creators any information about the ad’s purchasers 

or the scheduling or airing of ads. 

Services are provided on a strictly 

nonpartisan basis and without regard 

to political affiliation.

Once a purchaser chooses an ad 

to run, the corporation advises the 

purchaser of the Act’s prohibitions 

and also that the ad will include all 

required disclaimers. The corporation also offers assistance to purchasers in filling out and filing FEC 

Form 5 (the form used by individuals and groups to report independent expenditures), but the ultimate 

reporting responsibility lies with the 

purchasers.

Analysis

Corporation as commercial 

vendor engaging in bona fide commercial activity. Under the proposed 

business model, the ads created by 

the corporation and by the creators 

will be viewable by the general 

public. Although the Act prohibits 

contributions or expenditures by 

corporations under 2 U.S.C. §441b, 

the Commission has determined 

that the distribution of express 

advocacy messages to the general 

public is permissible as “bona fide

commercial activity,” and is not a 

contribution or expenditure, when 

undertaken by a corporation organized and maintained for commercial purposes only and the activities 

themselves are for purely commercial purposes. For example, in the 

context of the sale of political paraphernalia, the Commission looked at 

factors including whether: 

• The activity is engaged in by the 

vendor for genuinely commercial 

purposes and not for the purpose of 

influencing an election; 

• The sales of any merchandise 

involve fundraising activity for 

the airtime bought by each purchaser 

through the corporation.

If an individual purchases ads 

created by the corporation, then the 

corporation will charge that purchaser a licensing fee related to the corporation’s production costs and will 

receive an airtime commission in an 

amount sufficient to make a profit on 

each transaction. When an individual 

chooses an ad created by a creator, 

the corporation charges no licensing 

fee because it incurs no expense to 

create the ad, and the corporation 

will be compensated by the commission on the airtime purchased by the 

individual.

Where purchasers desire a new, 

customized advertisement, the corporation will arrange with a media 

creation company for the creation of 

the ad, with the full costs passed on 

to the purchaser. As a result of these 

payment arrangements, the purchaser will pay the corporation the usual 

and normal charge.

Ads that are posted on the VoterVoter.com web site will not be 

posted for a fee. The corporation 

does not charge a fee for uploading 

or hosting videos when individuals or committees create their own 

videos to post on the web site, and 

it requires the creators to affirm that 

they were not paid by anyone else to 

create or post their content. The ads 

created and posted on the web site 

by the creators and by the corporation expressly advocate the election 

of clearly identified federal candidates. The business model of the corporation and the web site involves 

ads that constitute independent 

expenditures, not coordinated communications. The VoterVoter.com 

web site will not display the creators’ names. No contact between 

candidates and creators or purchasers is established or facilitated by 

the corporation. In addition (with the 

exception of informing a purchaser 

of the content of the disclaimer on a 

political committee-created ad that is 

being aired), the corporation will not 

provide any information to actual or 
Federal Election Commission RECORD December 2008

4

Advisory Opinions

(continued from page 3)

commercial purposes and not for the 

purpose of influencing any federal 

election. Moreover, the corporation is not owned or controlled by a 

party, candidate or political committee, and its business model does not 

involve fundraising for any political 

committee or candidate. The corporation sells airtime at the usual 

and normal charge and purchasers 

pay in advance of the corporation’s purchase of the media time 

requested, and hence in advance of 

the airing of the ad. These practices 

are consistent with usual and normal 

industry practices. In the context of 

this request, it is also significant that 

the corporation accepts and posts 

ads on a nonpartisan basis and seeks 

to attract creators without regard to 

the candidates their ads support or 

oppose. 

Costs incurred by creators. Costs 

incurred by an individual in creating 

an ad are exempt from the definition of “expenditure,” as long as the 

creator is not also purchasing TV 

airtime for the ad he or she created. 

Under 11 CFR 100.94 and 100.155, 

an individual, or group of individuals, may engage in uncompensated 

Internet activities for the purpose of 

influencing a federal election without a contribution or expenditure 

resulting. Thus, the posting by uncompensated individuals of ads they 

create on the web site, where such 

ads are not posted for a fee, would 

not be a contribution or expenditure 

at the time of posting. See 11 CFR 

100.94, 100.155 and 100.26. If an 

individual then pays to have the ad 

broadcast on television, the costs for 

creating the ad are no longer covered 

by the Internet volunteer activity 

exemption, and thus become part 

of the expenses for an independent 

expenditure. See 11 CFR 109.10. 

In contrast, if a political committee posts an ad it creates, its costs 

constitute expenditures and are 

reportable as such (even if the ad is 

never televised), because the exemptions at 11 CFR 100.94 and 100.155 

do not apply to political committees. 

If that ad is then aired on TV, the 

ad’s disclaimers must contain the 

required information about both the 

ad’s purchasers and the ad’s creators. 

11 CFR 110.11(b)(3) and (c) (4). 

See AO 2007-20.1

Political committee status not 

triggered. The Act defines a political 

committee as any group of persons 

that makes expenditures aggregating over $1,000 in a calendar year. 

This definition does not apply to 

1

 Disclaimers need not appear on ads 

created by political committees and 

only posted on the web site, because ads 

posted on VoterVoter.com are not placed 

for a fee and, thus, are not a “public 

communication.” 11 CFR 100.26.

the individuals who create and 

purchase ads from the corporation 

because there is no communication or pre-arrangement between 

the creator and purchaser, and the 

corporation has not conveyed any 

information between them. See 11 

CFR 100.5(a). Moreover, purchasers may obtain airtime for an ad that 

was already purchased and aired by 

other purchasers, even after reviewing FEC filings by those purchasers. 

This activity would not by itself be 

sufficient to cause the purchasers to 

be considered “a group of persons,” 

and thus a political committee. The 

Commission did not address whether 

any agreements or collaboration 

between a creator and a purchaser 

not involving the corporation would 

result in the formation of a “group of 

persons” that would be considered a 

political committee. 

In-kind contributions not triggered. Here, given that there is no 

collaboration between purchasers and creators, the purchase of 

airtime to run an ad created by a 

nonconnected committee does not 

result in an in-kind contribution 

from the purchaser to the committee. 

See 11 CFR 100.52(d)(1). 

The republication of a candidate’s 

campaign materials does result in a 

contribution. However, if an individual independently creates and 

uses his or her own footage of a 

candidate’s public appearance in a 

web site posting and the campaign 

does not have any ownership rights 

to the footage, then the footage does 

not constitute a candidate’s campaign materials and use of it would 

not represent an in-kind contribution 

by either the creator or a subsequent 

purchaser of airtime for the ad. 

11 CFR 109.23. The footage may 

include images of campaign materials (e.g., tee-shirts, buttons and signs 

customarily displayed at campaign 

events) without becoming a republication of campaign materials, unless 

the creator arranged for such materiFEC Web Site Offers 

Podcasts

In an effort to provide more 

information to the regulated 

community and the public, the 

Commission is making its open 

meetings and public hearings 

available as audio recordings 

through the FEC web site, as well 

as by podcasts. The audio files, 

and directions on how to subscribe 

to the podcasts are available 

under Audio Recordings through 

the Commission Meetings tab at 

http://www.fec.gov. 

 The audio files are divided 

into tracks corresponding to 

each portion of the agenda for 

ease of use. To listen to the open 

meeting without subscribing to 

the podcasts, click the icon next 

to each agenda item. Although the 

service is free, anyone interested 

in listening to podcasts must 

download the appropriate software 

listed on the web site. Podcast 

subscribers will automatically 

receive the files as soon as they 

become available–typically a day 

or two after the meeting. 
December 2008 Federal Election Commission RECORD

5

National Party Financial 

Activity through October 15

National committees of the two 

major political parties have spent 

$865.1 million during the 2007-2008 

election cycle according to reports 

filed with the Commission. The 

most recent comprehensive disclosures of all financial activity were 

submitted on October 23, indicating 

that national party committees raised 

$981.2 million between January 1, 

2007, and October 15, 2008. The 

charts below detail the receipts of 

the Democratic and Republican 

national committees through 20 days 

prior to the general election from the 

1997-98 election cycle through the 

2007-2008 election cycle.

Fundraising by Democratic and Republican National Party Committees through 20 Days Prior 

to the General Election—1997 to 2008

Democratic National Party Committees Republican National Party Committees

0

100

200

300

400

500

600

07-08

97-98 99-00 01-02 03-04 05-06 07-08

Millions of Dollars

Dems

0

100

200

300

400

500

600

97-98 99-00 01-02 03-04 05-06 07-08

Millions of Dollars

Dems

Advisory Opinion Requests

AOR 2008-17

Use of campaign funds and leadership PAC funds to pay expenses 

associated with publication of 

candidate/officeholder’s book (Missourians for Kit Bond and KITPAC, 

October 23, 2008)

AOR 2008-18 

Affinity program between corporation and political party committees 

involving prescription drug discount 

cards (Mid-Atlantic Benefits, September 30, 2008)

Republican committees, including 

the Republican National Committee (RNC), the National Republican 

Senatorial Committee (NRSC) and 

the National Republican Congressional Committee (NRCC), raised 

$518.8 million in federally permissible “hard money.” 

During the same period from 

January 2007 through mid-October 

of 2008, the Democratic National 

Committee (DNC), Democratic 

Senatorial Campaign Committee 

(DSCC) and the Democratic Congressional Campaign Committee 

(DCCC) raised $462.4 million in 

federally permissible funds. Republican committees reported $81.8 

million in cash remaining on October 15, while their Democratic 

counterparts reported $42.7 million 

available on that date.

 —Myles Martin

als to be held up, displayed or worn 

during the event. 

Date Issued: October 24, 2008;

Length: 12 pages.

 —Dorothy Yeager

Statistics
Federal Election Commission RECORD December 2008

6

Winding Down Your Federal 

Campaign

This article answers common 

questions from candidates and officeholders who are registered with 

the Federal Election Commission 

(the Commission) but are “no longer 

actively seeking” election to federal office. Federal candidates who 

withdraw from the race before the 

election takes place, lose the primary 

or general election or retire from 

office may choose to terminate their 

campaign committees. The Federal 

Election Campaign Act (the Act) and 

Commission regulations contain certain provisions related to the process 

of winding down and terminating a 

principal campaign committee (committee), including the proper use 

of remaining campaign funds, the 

settlement of committee debts and 

the process for terminating the committee’s reporting obligations.

I collected contributions for 

the general election but will not 

participate in that election. Are 

refunds required?

Yes. A candidate is entitled to 

an election limit only if he or she 

seeks office in that election. Thus, 

a candidate who loses the primary 

(or otherwise does not participate in 

the general election) does not have 

a separate contribution limit for 

the general. If a candidate accepts 

contributions for the general election 

before the primary is held and loses 

the primary (or does not otherwise 

participate in the general election), 

the candidate’s principal campaign 

Campaign Guides 

Available

 For each type of committee, a 

Campaign Guide explains, in clear 

English, the complex regulations 

regarding the activity of political 

committees. It shows readers, 

for example, how to fill out FEC 

reports and illustrates how the law 

applies to practical situations.

 The FEC publishes four 

Campaign Guides, each for a 

different type of committee, 

and we are happy to mail your 

committee as many copies as 

you need, free of charge. We 

encourage you to view them on 

our web site (www.fec.gov).

 If you would like to place an 

order for paper copies of the 

Campaign Guides, please call the 

Information Division at 800/424-

9530.

• Doug Tudor for Congress (FL-12);

• Friends of Bob Conley (SC-Senate);

• Webster for Congress (NC-13);

• Reed for US Senate 2008 Inc. (IASenate);

• Principal Campaign Committee 

James E. Bryan (FL-1);

• Joel Haugen for Congress (OR-1);

• Jessica Martinez—Comisionada 

Residente (PR);

• Committee to Elect Gregorio 

Kilili Camacho Sablan for Delegate (MP);

• Tracey Smith Campaign Committee (TX-12); and

• John Murphy for Congress (PA-16)

The reports were due on October 

23, 2008, and should have included 

financial activity for the period 

October 1, 2008, through October 

15, 2008. If sent by certified or 

registered mail, the report should 

have been postmarked by October 

20, 2008.

Some individuals and their committees have no obligation to file 

reports under federal election law, 

even though their names may appear 

on state ballots. If an individual 

raises or spends less than $5,000, he 

or she is not considered a “candidate” subject to reporting under the 

Act.

The FEC notified committees 

involved in this primary of their 

potential filing requirements on September 29, 2008. Those committees 

who did not file on the due date were 

notified on October 24, 2008, that 

reports had not been received and 

that their names would be published 

if they did not respond within four 

business days.

Other political committees that 

support Senate and House candidates in elections, but are not 

authorized units of a candidate’s 

campaign, are also required to file 

quarterly reports, unless they report 

monthly. Those committee names 

are not published by the FEC.

Further Commission action 

against nonfilers and late filers is 

decided on a case-by-case basis. 

Committees Fail to File PreGeneral Election Reports

The Commission cited 16 campaign committees for failing to file 

the Pre-General Election Report 

required by the Federal Election 

Campaign Act (the Act). 

As of noon October 31, 2008, the 

required disclosure report had not 

been received from;

• Larry Ishmael for Congress (WA1);

• Jim Lopez for Congress Committee (CA-20);

• Committee to Elect Faye Armitage 

for Congress (FL-7);

• Heather Ryan for Congress (KY1);

• Elect Andrea Miller for Congress 

(VA-4);

• Lynch for Congress (FL-19);

Federal law gives the FEC broad 

authority to initiate enforcement actions, and the FEC has implemented 

an administrative fine program with 

provisions for assessing monetary 

penalties.

 —Myles Martin

Nonfilers

800 Line
December 2008 Federal Election Commission RECORD

7

(continued on page 8)

committee must return the general 

election contributions within 60 days

of the primary or the date the candidate became ineligible to participate 

in the general election. 11 CFR 

102.9(e)(3) and 110.1(b)(3)(i). Alternatively, the campaign committee 

may redesignate the contributions in 

accordance with 11 CFR 110.1(b)(5) 

or 110.2(b)(5), or redistribute them 

in accordance with 11 CFR 110.1(k)

(3), as appropriate.

Can my committee continue to 

pay expenses even if the campaign 

is over?

Yes. Under the Act, campaign 

funds may be used for the following 

non-campaign purposes:

• Defrayal of ordinary and necessary 

expenses of a federal officeholder, 

such as travel expenses for a 

federal officeholder and an accompanying spouse, provided that the 

travel is undertaken to participate 

in a function that is connected to 

the officeholder’s official responsibilities. 113.2(a)(1); 

• Winding down costs of a federal 

officeholder’s office for a period 

of six months after leaving office. 

113.2(a)(2);

• Donations to charitable organizations defined in 26 U.S.C §170(c). 

113.2(b);

• Unlimited transfer to any national, 

state or local political party committee. 113.2(c);

• Donations to state and local 

candidates, pursuant to state law. 

113.2(d); and

• Any other lawful purpose, unless 

such use is personal use under 11 

CFR 113.1(g). 113.2(e).

Can I use remaining campaign 

funds to cover personal expenses?

Using campaign funds for personal use is prohibited, even when 

a federal candidate or officeholder 

is no longer seeking election to federal office. In determining whether 

expenses are for personal use or are 

legitimate campaign/officeholder 

expenses, the Commission uses the 

“Irrespective Test.” Personal use 

is any use of funds in a campaign 

account of a candidate (or former 

candidate) to fulfill a commitment, 

obligation or expense of any person 

that would exist irrespective of the 

candidate’s campaign or responsibilities as a federal officeholder. 11 

CFR 113.1(g). More simply put, if 

the expense would exist even in the 

absence of the candidacy or even if 

the officeholder were not in office, 

then the personal use ban applies.

Automatic Personal Use. Commission regulations list some 

expenses that are automatically 

considered to be personal use:

• Household food items and supplies;

• Funeral, cremation and burial 

expenses, except for a candidate 

or campaign worker whose death 

arises out of, or in the course of, 

the campaign;

• Clothing, except for the cost of 

campaign T-shirts, hats, etc.;

• Tuition payments;

• Mortgage, rent and utility payments for the candidate’s personal 

residence, even if a portion of the 

space is used for campaign purposes. AO 1995-08;

• Investment expenses, unless all of 

the investment and its proceeds are 

used for campaign purposes or one 

of the permissible non-campaign 

uses of funds described above. 67 

Fed. Reg. 38354 (June 4, 2002); 

• Entertainment expenses, such as 

concert or sporting event tickets, 

unless the entertainment is part of 

a specific campaign or officeholder 

activity;

• Dues, fees and gratuities for country clubs, health clubs, recreational 

facilities or other nonpolitical 

organizations; and

• Salary payments to the candidate’s 

family, unless the family member 

is providing a bona fide service to 

the campaign and the payments 

reflect the fair market value of 

those services. 11 CFR 113.1(g)(1)

(i)(A)-(J).

Case-by-Case Determination of Personal Use. The Commission will 

determine, on a case-by-case basis, 

whether other expenses would exist irrespective of the candidate’s 

campaign or duties as a federal officeholder and would be considered 

personal use expenses. 11 CFR 

113.1(g)(1)(ii).

Can my campaign committee pay 

winding down costs?

Yes. Excess campaign funds may 

be used to pay any ordinary and 

necessary expenses incurred in connection with one’s duties as a federal 

officeholder. Such expenses include 

the costs of winding down the office 

of a former federal officeholder for a 

period of six months after he or she 

leaves office. 113.2(a)(2). Winding 

down costs include:

Moving Expenses. A retiring 

Member may use campaign funds 

Administrative Fine 

Program Extension

 The Commission approved regulations to extend its Administrative Fine Program. The program 

was scheduled to cover reports 

only through December 31, 2008, 

unless Congress extended the 

program. 

 Congress recently passed 

legislation to extend the program 

for reports covering through 

December 31, 2013, and President 

Bush signed the legislation 

into law on October 16, 2008. 

Therefore, the Commission has 

amended its regulations to reflect 

the extension of the program 

through 2013. The rule was 

published in the December 1, 

2008, Federal Register. For more 

information on the Administrative 

Fine Program extension, see the 

November 2008 Record, page 9.
Federal Election Commission RECORD December 2008

8

to pay for the expenses of moving 

office and personal furnishings from 

the Congressional office in Washington, D.C., back to the Member’s 

home state. While the costs of transporting a Member’s personal household effects and furnishings from 

Washington, D.C., to the Member’s 

home state are not “winding down 

costs,” such costs are “ordinary and 

necessary expenses” incurred in 

connection with ending the Member’s duties as a federal officeholder. 

AO 1996-14. Similarly, a retiring 

Member may use campaign funds to 

pay the expenses of transporting office furnishings from the Member’s 

district office to Washington, D.C., 

where the Member will remain upon 

leaving office. Such costs are considered winding down costs. AO 1996-

44. All such moving expenses should 

be reported as “other disbursements” 

by the Member’s committee, with 

the specific payee(s) and purpose 

noted. 11 CFR 104.3(b)(2)(vi) and 

(b)(4)(vi). 

Payments to Committee Staff. A 

retiring Member may use excess 

funds to pay staff salaries and incidental expenses while performing 

duties “imposed by virtue of having 

been a Member.” AOs 1976-90 and 

1978-43. 

Gifts. Campaign funds may be 

used to purchase gifts or make donations of nominal value to persons 

other than the members of the candidate’s family. 11 CFR 113.1(g)(4).

Can my campaign committee 

contribute to other candidates?

Yes. A federal candidate committee may contribute up to $2,000 per 

election to the committee of another 

federal candidate. 11 CFR 102.12(c)

(2).1

 Donations from federal candidate committees to state or local 

candidate committees are subject to 

state law.

Can my campaign committee 

donate to a charitable 

organization?

Yes. Gifts to charity are not 

considered personal use expenses 

as long as the candidate does not 

receive compensation from the 

charitable organization before it has 

expended the entire amount donated. 

Note that the amount donated must 

have been used for purposes that do 

not personally benefit the candidate. 

11 CFR 113.1(g)(2). AOs 2005-6, 

1997-1, 1996-40 and 1994-20.

May I convert my principal 

campaign committee into a PAC? 

In past advisory opinions, the 

Commission has explicitly permitted 

a principal campaign committee to 

become a multicandidate committee 

as an alternative to the committee’s 

termination. In meeting the requirements for multicandidate status, a 

former principal campaign committee may avail itself of the length 

of time of its prior registration, the 

number of contributions it has made 

in the past and the number of contributions it has received. Note that the 

prohibition on converting campaign 

funds to personal use still applies 

to such a committee. AOs 2004-3, 

1988-41 and 1985-30.

May I use remaining campaign 

funds in a future federal election?

Yes, surplus funds may be used 

in connection with a future election. 

Funds may be transferred between 

authorized committees of the same 

800 Line

(continued from page 7) Enforcement Query 

System Available on 

FEC Web Site

 The FEC continues to update 

and expand its Enforcement 

Query System (EQS), a webbased search tool that allows 

users to find and examine public 

documents regarding closed 

Commission enforcement matters. 

Using current scanning, optical 

character recognition and text 

search technologies, the system 

permits intuitive and flexible 

searches of case documents and 

other materials. 

 Users of the system can search 

for specific words or phrases 

from the text of all public case 

documents. They can also 

identify single matters under 

review (MURs) or groups of 

cases by searching additional 

identifying information about 

cases prepared as part of the 

Case Management System. 

Included among these criteria 

are case names and numbers, 

complainants and respondents, 

timeframes, dispositions, legal 

issues and penalty amounts. The 

Enforcement Query System may 

be accessed on the Commission’s 

web site at http://www.fec.gov.

 Currently, the EQS contains 

complete public case files for all 

MURs closed since January 1, 

1999. In addition to adding all 

cases closed subsequently, staff is 

working to add cases closed prior 

to 1999. Within the past year, 

Alternative Dispute Resolution 

(ADR) cases were added to the 

system. All cases closed since the 

ADR program’s October 2000 

inception can be accessed through 

the system. 1

 Note: The contribution limit that applies to a contribution from one federal 

candidate’s campaign to another federal 

candidate’s campaign is $2,000 per 

candidate, per election. This limit is different from an individual’s contribution 

limit to a federal candidate’s campaign, 

which is $2,300 per candidate, per election and is indexed for inflation. 
December 2008 Federal Election Commission RECORD

9

FEC Announces Campaign 

Finance Law Conferences in 

2009

Each year the Federal Election 

Commission sponsors conferences 

on the federal campaign finance law. 

At the conferences, Commissioners and staff conduct a variety of 

technical workshops. Workshops are 

designed for those seeking an introduction to the basic provisions of the 

law as well as for those more experienced in campaign finance law. Discussion topics include fundraising, 

reporting and communications. 

This year, a new workshop 

will focus on best practices in 

recordkeeping and how to avoid 

committee fraud and embezzlement. 

Also, conferences held in Washington, DC, will feature an opportunity 

for participants to meet the FEC 

Campaign Finance Analysts who 

review their reports.

The schedule in the box at right 

lists the dates and locations for 

conferences to be held in 2009. Although registration has not yet begun 

for these conferences, participants 

are encouraged to mark their calendars for the conference that they 

would like to attend. 

The FEC notifies individuals via 

e-mail when conference registration begins. If you would like to 

receive this notification, please join 

the FEC’s conference e-mail list 

FEC Conference 

Schedule for 2009

Conference for House and 

Senate Campaigns and State/

Local Party Committees

March 3-4, 2009

Omni Shoreham

Washington, DC

Conference for Corporations 

and their PACs

April 2-3, 2009

Westin City Center

Washington, DC

Conference for Trade 

Associations, Membership 

Organizations, Labor 

Organizations and their PACs 

May 21-22, 2009

Omni Shoreham

Washington, DC

Conference for Campaigns, 

Party Committees and 

Corporate/Labor/Trade PACs

September 15-16, 2009

Hyatt Regency

Chicago, IL

Conference for Campaigns, 

Party Committees and 

Corporate/Labor/Trade PACs

October 28-29, 2009

Sheraton at Fisherman’s Wharf

San Francisco, CA

candidate (for example, from a 

previous campaign committee to 

a current campaign committee) 

without limit as long as the committee making the transfer has no 

“net debts outstanding” as defined 

in 11 CFR 110.1(b)(3)(ii). 11 CFR 

110.3(c) and 116.2(c)(2). Alternatively, a candidate may redesignate 

a former campaign committee as the 

principal campaign committee of his 

or her current campaign and use the 

excess funds of the previous campaign in the current campaign. AO 

1980–30. A candidate who wishes to 

use the committee for a subsequent 

federal campaign, may redesignate 

it as an authorized committee using 

FEC Form 2.

How does a committee terminate?

A committee may file a termination report at any time, provided 

that: 

• The committee no longer intends to 

receive contributions, make expenditures or make any disbursements 

that would otherwise qualify it as a 

political committee; and 

• Neither the committee seeking to 

terminate nor any other authorized 

committee of the same candidate 

has any outstanding debts or obligations. 11 CFR 102.3 and 116.1.

A committee involved in an FEC 

enforcement action, an FEC audit 

or litigation with the FEC, however, must continue to file regularly 

scheduled reports until the matter is 

resolved. When filing the committee’s termination report, the treasurer 

should check the “Termination Report” box on Line 4 of the Summary 

Page of FEC Form 3. The termination report must disclose: 

• All receipts and disbursements not 

previously reported, including an 

accounting of debt retirement; and 

• The purposes for which any remaining committee funds or assets 

will be used. 11 CFR 102.3(a). 

The committee’s reporting obligation ends only when the Commission 

notifies the committee in writing that 

the termination report has been accepted. Until the committee receives 

this notification, it must continue to 

file reports. The FEC, upon its own 

initiative or at the request of a political committee, may administratively 

terminate a committee’s reporting 

status. For details on administrative 

termination, consult section 102.4 of 

the regulations.

 — Isaac J. Baker

by visiting http://service.govdelivery.com/service/subscribe.

html?code=USFEC_12. 

Additional Information

Any questions about conference registration or fees should be 

directed to Sylvester Management 

Corporation at 1-800/246-7277. 

For questions about the conference 

content or program, please contact 

the FEC’s Information Division 

at 1-800/424-9530 (or locally at 

202/694-1100) or send an e-mail 

to Conferences@fec.gov. Confer-

(continued on page 10)

Outreach
Federal Election Commission RECORD December 2008

10

The first number in each citation refers to the numeric month of 

the 2008 Record issue in which the 

article appeared. The second number, following the colon, indicates 

the page number in that issue. For 

example, “1:4” means that the article 

is in the January issue on page four.

Administrative Fines

Update, 2:4; 4:9, 11:9

Administrative Fine Program Extension, 12:7

Advisory Opinions

Alternative Disposition of Advisory 

Opinion Requests, AOR 2007-36, 

3:8; AOR 2008-1, 9:5; AOR 2008-

3, 8:10

2008-6: Proposed Slate Card is 

Exempt Party Activity, 10:7

2008-7: Use of Campaign Funds for 

Legal and Media Expenses, 10:7

2008-8: Earmarked Contribution 

Counts Against Current Spending 

Limits, 10:8

2008-9: Application of Loan Repayment Provision, 10:9

2008-10: Online Advertising Vendor 

May Sell Political Advertising 

Services, 12:1

2008-11: Federal Contractor May 

Not Make Contributions, 11:1

2008-12: Independent Party of 

Oregon Qualifies as State Party 

Committee, 11:3

2008-13: Pacific Green Party of 

Oregon Qualifies as State Party 

Committee, 11:4

Alternative Dispute Resolution

Update, 3:4; 5:4

Commission

Commission Amends Rules that 

Govern its Procedures, 3:3

Commission Publishes Notice of 

New and Revised Systems of 

Records, 2:4

Commission Statement on Davis v. 

FEC, 8:3

Message from the Chairman, 1:1

New Chairman Elected, 1:2

New Commissioners Join the Commission, 8:1

New Vice Chair Elected, 3:2

Compliance

MUR 5888: Failure to File Timely 

Under Millionaires’ Amendment, 

2:1

MUR 5895: Personal Use and Prohibited Contributions, 3:1

Nonfilers, 3:4; 4:9; 6:5; 7:6, 9:6, 

10:12, 12:6

Correction

2008 Coordinated Party Expenditure 

Limits, 4:10

Court Cases

______ v. FEC

– Citizens United, 2:1

– Davis, 8:1

– DNC, 6:2, 8:8

2007-19: Nonprofit Corporation 

Qualifies as Membership Organization, 1:15

2007-22: Campaign Committee May 

Accept Volunteer Services from 

Foreign Nationals, 1:16

2007-23: State Party Committee 

Status for Independence Party of 

New York, 1:17

2007-24: Payment for Joint campaign Activities, 1:18

2007-25: Limited Liability Partnership Taxed as a Corporation, 2:7

2007-26: Disposal of Excess State 

Campaign Funds by Federal Candidate, 1:19

2007-27: Nonconnected Committee 

Solicitations for SSF Contributions, 2:8

2007-28: Federal Candidates/Officeholders Fundraising for Ballot 

Measure Committees, 2:8

2007-29: Donation to a Candidate 

for Local Party Office is Not Personal Use, 1:21

2007-30: Matching Credit Card 

Contributions Under Public Funding Program, 1:21

2007-31: Earmarked Contributions Forwarded to a Presidential 

Candidate by a Nonconnected 

Committee’s Checks Not Matchable, 2:9

2007-32: Political Committee Status 

of Independent Expenditure Organization, 3:8

2007-33: “Stand-By-Your-Ad” Disclaimer Required for Brief Television Advertisements, 9:1

2007-34: Federal Candidate’s Endorsement of Nonfederal Candidate, 2:10

2007-35: Internet Toolbar Affinity 

Program for Political Committees, 

3:8

2008-2: Eligibility for Candidate 

Salary Payments, 6:4

2008-4: Publicly Funded Presidential Candidate May Redesignate 

General Election Contributions to 

Senate Election Within 60 Days, 

10:1

2008-5: Organization’s Status as a 

Partnership, 9:5

Need FEC Material 

in a Hurry?

 Use FEC Faxline to obtain 

FEC material fast. It operates 

24 hours a day, 7 days a week. 

Hundreds of FEC documents—

reporting forms, brochures, FEC 

regulations—can be faxed almost 

immediately.

 Use a touch tone phone to dial 

202/501-3413 and follow the 

instructions. To order a complete 

menu of Faxline documents, enter 

document number 411 at the 

prompt.

ence information is also available 

online at http://www.fec.gov/info/

outreach.shtml#conferences and 

also by joining our new LinkedIn 

Group for FEC Conference attendees at http://www.linkedin.com/

groups?gid=1232377.

 —Dorothy Yeager

Outreach

(continued from page 9)

Index
December 2008 Federal Election Commission RECORD

11

– EMILY’s List, 9:1

– Hearn, 9:3

– Koerber, 11:5

– The Real Truth About Obama, 

Inc., 9:3, 10:11, 11:5

– Schneider, 10:11

– SpeechNow.org, 4:6, 8:6

– Shays III, 6:1, 7:1

– Tierney, 5:2

–Unity08, 12:1

Beam v. Gonzales, 5:3

Bialek v. Mukasey, 8:8

FEC v. ______

– Adams, 5:1

– Hearn, 1:5

– Morgan, 1:4, 12:2

– Reform Party of the USA, 4:1

Fieger v. Attorney General, et al., 

11:5

Marcus v. Mukasey, 5:3

Legislation

Administrative Fine Program Extended to 2013, 11:9

House Delegate for Northern Mariana Islands, 6:5

Outreach

Conference for Corporations and 

their PACs, 2:10

Conferences Scheduled for 2008, 

1:23; 2:11; 3:14; 4:10

FEC Announces Campaign Finance 

Law Conferences in 2009, 12:9

June 23-24 Conference for Trade Associations, Membership Organizations and Labor Organizations, 

5:6; 6:6

Orlando Regional Conference for 

House and Senate Campaigns, 

Political Party Committees and 

Corporate/Labor/Trade PACs, 

1:23

Roundtable on Pre-Election Communications, 8:10

Seminar for Nonconnected Political 

Action Committees, 4:10; 5:6

Party Activities

2008 Coordinated Party Expenditure 

Limits, 3:6; 4:10

Public Funding

Commission Approves Public Funds 

for McCain-Palin, 10:10

Commission Approves McCain 

Withdrawal from Matching Payment Program, 10:10

Commission Certifies Primary 

Matching Fund Payments, 2:3, 8:9

Dodd and Biden Certified for Matching Funds, 1:22

Kucinich and Hunter Certified for 

Matching Funds, 2:4

Regulations

Administrative Fine Program Extension, 12:7

Commission Hearing on Proposed 

Rules for Bundled Contributions, 

11:8

Final Rules and Explanation for 

Electioneering Communications, 

1:1

Notice of Proposed Rulemaking on 

Repeal of Millionaires’ Amendment Regulations, 11:6

Reports

April Reporting Reminder, 4:1

California Special Election Reporting: 12th District, 3:4

Illinois 14th District Special Election Reporting, 1:13

Indiana Special Election Reporting: 

7th District, 2:5

July Reporting Reminder, 7:1

Louisiana Special Election Reporting: 1st and 6th Districts, 2:6 

Louisiana Rescheduled Primary 

Elections, 10:4

Maryland Special Election Reporting: 4th District, 6:4

Mississippi Special Election Reporting: 1st District, 4:3

October Reporting Reminder, 10:1

Ohio Special Election Reporting: 

11th District, 10:3

Post-General Reporting Reminder, 

11:1

Reports Due in 2008, 1:5

Statistics

House and Senate Candidate Committees Raise $507 Million in 

2007, 5:1

National Party Financial Activity 

through October 15, 12:5

Number of PACs Increases Slightly 

in 2007, 3:7

Number of Federal PACs Increases 

Slightly, 10:13

Party Activity Summary through 

April 2008, 7:5

Party Committee Contributions 

Update, 4:7

Party Committee Fundraising 

through June 30, 10:12

Web Site

Enhanced Presidential Campaign 

Finance Map, 6:5

800 Line

FEC Rules for National Convention 

Delegates, 3:1

Winding Down Your Federal Campaign, 12:6

Commission 

Calendar Always 

Up-to-Date 

 Between issues of the Record, 

you can stay up-to-date on the 

latest FEC activity by visiting 

the Commission Calendar on 

our web site at http://www.fec.

gov/calendar/calendar.shtml. 

The Calendar lists Commission 

meetings, reporting deadlines, 

conferences and outreach events, 

advisory opinion and rulemaking 

comment periods and other useful 

information. Each calendar entry 

links directly to the relevant 

documents, so you can quickly 

access detailed information on the 

subjects that interest you. 

 While you’re visiting www.fec.

gov, be sure to explore the rest 

of our site to review the latest 

campaign finance reports and 

data, research enforcement actions 

and litigation, read press releases 

and get help complying with the 

law. Visit today and add our site to 

your favorites.
Federal Election Commission RECORD December 2008

PRESORTED STANDARD

U.S. POSTAGE

PAID

FEDERAL ELECTION COMMISSION

FEDERAL ELECTION COMMISSION 

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Penalty for Private Use, $300