76734 · Federal Register / Vol. 44, No. 249 / Thursday, December 27, 1979 / Rules and Regulationi 

FEDERAL ELECTION COMMISSION Previous regulations transmitted to Incurred In •staging nonpartisan debates 

Congress on this subject were published are not considered contributions or. 

[NoUce 1171-23) on July 5, 1979, at 44 FR 39348. Those expenditures under the Act. Similarly, 

regulationa were disapproved by S. Res. expenditures by news media 

11 CFR Parta 100. 110 and 114 238 on. September 18, 1979. . corporations to stage debates are not 

considered contributions or Explanation and Justiflcatlon of. Funding and Sponsorship of Federal expenditures under the Act. · Regulatlona on Fundlna of Federal Candidate Debatea Candidate Debatea . 11 CFR 110.13: 

AGENCY: Federal Election Commission. The main purpose of these regulatlona 'Ibis section sets forth the criteria for 

ACTION: Transmittal of Regulations to · Is to create a narrow exemption from the staging Ol'Banlzationa and the structure 

Congresa. · provisions of the Federal Election of candidate debates which are exempt 

Campaign Act to permit certain under 11 CFR 100.4(b )(18), 100.7(b )(18), 

SUMMARY: The Commission baa nonprofit orsanlzatlons and news media and 114.4(e). . · tr~mltted regulations to Congre11 to organizations to stage nonpartisan Under subsection (a)(l) two.types of · govem the funding and sponsorship.of federal candidate debates. In addition, nonprofit 01'8anizations qualify as 

nonpartisan federal candidate debates. certain of. those 01'8anizationa would be 1taging organlza tions: those 

, · The regulations create an exemption permitted to receive donations from 01'8anfzations which are exempt from 

&om various provisions of the Federal other corporations and from labor federal taxation under 26U.S.C. 

Election Campaign Act to permit certain 01'8anlzations to stage debates. With thla I SOt(c)(S): and those organizations . nonprofit 01'8anizatlons and news media exemption. expenditures for staging·· which are exempt from federal taxation 

Ol'Banlzations to stage nonpartisan · such debates will be regarded aa neither under 26 UAC. I 501(c)(4) and which do 

federal candidate debates. Further. made for the purpose of Influencing an not endorae, support or oppose political Information on the scope of the election under 2 U.S.C. U 431(e) and candidates or political parties. regulations appears below under 431(f), nor In connection with a federal Organizations which are tax-exempt Supplementary Information In the election under 2 U.S.C. I 441b. The · under 501(c)(3) are prohibited by statute · Explanation and Justification of the co~erage of debates by news media from participating In or Intervening In · regulations. . · . '· 01'8anizations la already exempt from any polltical campaign on behalf of any 

2 U.S.C. 438(c) requires that any rule · those provisions. · candidate for public office. · or regulations proposed by the ·. . Organizations which are tax-exempt 11 CFR 100.4{b}(1B} and 11 CFR · Commission to ~plement Chapter 14 of under 501(c)(4) may participate in 100.7{b}{18}: . · ntle z· United States Code be political campaigns to a limited degree: · transmitted to the Speaker of the House . Under the Act. the terms However, a 501(c)(4) Ol'Banization which 

_and the President of the Senate prior to •contribution" and "expenditure" . . p articipates In political campaigns even 

final promulgation. H neither House of · Include ... gift. subscription. loan. : to a llmlted degree may not stage 

Congreaa disapproves the regulation : advance, or deposit of money or debates under this subsection because 

within 30 legislative days after It.a . · · anything ofvalue made for the purpose that Ol'Banlzation would not qualify as · . 

transmittal. the Commission may finally of influencln& the nomination for ·one which does not _endorse, support or 

. prescribe the regulations In question. · election. or the election. of any person to . o ppose political candidates or political. .· 

The fo~owing regulatiolil were · Federal office ••. ~" 2 UAC. _ . . .. parties. By permitting 501(c)(3) . 

transmitted to Congre&1 ·on December I 431(e)(t)(A). Congren bu, however, corporations and·S01(c)(4) corporations . · 

20.1979. recogn1zed that certain nonpartisan which are nonpartisan to stage debates, 

activity Is not undertaken for' the the lntesrfty and faimesa of the debate EFFECTIVE DAT£ Further action. 

purpose of Influencing the nomination or proceH ll insured. Including the announcement of an · . election of any candidate and has · Under subsection (a)(2) those . effective date will be taken after the removed that activity from the·coverage · 01'8anization1 which are specified In 2 ·. regulations have been before CongreH of the Act. Therefore, amounts spent for · U.S.C. l.431(f)(4)(A), the "news story" .' . · 30 legislative days In accordance with 2 "nonpartisan activity designed to · exemption under the Act. are also U.S.C. I 438(c). encourage Individuals to register to vote · permitted to stage nonpartisan .. ' 

FOR FURTHER INFORMATION CONTACT: · or to vote" are exempt from the · · candidate. debate~. Section 431(f)(4)(A), .. Ms. Patricia Ann Fiori. Asslatant · · · deftnltion of the term "expenditure," 2 read In _conjunction with 2 U.S.C. I 441b, General Counsel. 1325 IC Street. N.W.. . u.s.c. I 431(f)(4)(B). · exempts-expenditures related to Washington. D.C. 20483 (Z02) 523-4143._ The educational purpose of . particular functions of the· news media 

SUPPLEMENTARY INFORMATION: The . nonpartisan public candidate debates la • from the prohibitiona of Section 44tb: 

following regulationa were drafted ., similar to the .purpose underlying . . . news stories, commentaries and · pursuant to a Notice of Proposed . . nonpartisan voter registration and get• editorials. The news story exemption Rulemaldng published on October 1Z. out-the-vote campaigns. A nonpartisan ·. . w as not Intended to permit the staging 1979, at44 FR 59162. Pursuant to that candidate debate staged by a qualified of candidate debates, but rather is a · notice oral testimony was taken at . nonpartisan orsanization or by a news · . llm.lted exemption designed to Insure the . hearinss held on October 23 and 24, . media 01'8anization provides a forum for · right of the media to cover and comment . 1979, and numerous written comments · . _aignlfican1 candidates to coinmunlcate on e•ection campaigns. H.R. Rep. No. 93-

were received. In response to these their views to the public. Unlike single 943, 93d Cong., 2d Se88. at 4 (1914). . 

comments, the regulationa now . candidate appearances, nonpartisan However, due to the historical role of 

transmitted to Consre11 provide debates are designed to educate and the news m~dia In fostering public 

exemptiona to permit not only certain Inform voters rather than to Influence · d ebate on Issues (Mi1ls v. Alabama, 384 

nonprofit Ol'Banlzations, but also news the nomination or election of a U.S. 214 (1966), New York Times Co. v. · ·media Ol'Banizations, to stage · particular candids le. Hence, funds Sullivan. 376 U.S. 254 (1964)), and In 

nonpartisan federal candidate debates. .. · received and expended by certain llaht of congre11ional acknowledgment · nonprofit 01'8anizations to defray coats · · of the media's role In election campaigns 

.·· ... ·· .. :11_9 
. . 

Federal Register / Vol. 44, No. 249 / Thursday, December 27~ 1979 / Rules and Regulations' 76735 

ai expressed in 2 U.S.C. I 431(f)(4)(A), · Relations Act of 1947, 61 Stat. 159), 93 organizations qualified to stage debates 

bona fide news media corporations are Cong. Rec. 6439, 6440 (remarks of SeDL ' under 11 CFR 110.13(a)(1). . . 1 permitted to stage nonpartisan · ~ . Magnuson and Taft interpreting the · · · Although 2 U.S.C. I 441b broadly · .. : 

candidate debates.· . · : ,;·.;'. :.• .... ;,:; coverage of18 U.S.C. § 610,·the ·:.:.. · -r:.-i prohibits corporate and labor -.. - :· 

It is the Commission's belief that predecessor to Z U.S.C. I 441b). ·•:, '1·i·: '-' organization political spending, · - · 

1ufficient safeguards as to ' Nothing in this section limits the right Congress carved out an exemption from 

nonpartisanship of debates staged by of broadcasters, newspapers, magazines that prohibition for certain nonpartisan 

broadcasters are set forth in the or other periodical publications to cover registration and get-out-the-vote 

Communications Act. most particularly or broadcast debates staged by other · -, -..:: activity. Corporations are thus 

47 U.S.C. I 315, and the present · entities That activity is specifically· ·.: -· ~- · 1pecifically permitted under z U.S.C. 

· regulations and interpretations of the · exempted from the provisions of the Act I 441b(b)(2)(B) to use their treasury 

Federal Communications Commission by 2 U.S.C. I 431(f)(4)(A), and in the - funds to conduct nonpartisan · 

- under this section. Section 315 provides· case of broadcasters is regulated by the· · registration and get-out-the-vote 

that if a broadcast licensee allows a . Federal Communications Commission. campaigns aimed at their stockholders · 

- legally qualified candidate for public Under subsection (b) the precise and their executive and administrative 

office to use its broadcasting station, structure of candidate debates la left to personnel Similarly, under that section. 

that licensee must afford all other the discretion of the staging · labor organizations are permitted to use 

candidates for the same office equal organization. Such debates must. treasury funds to conduct registration . 

. opportunities to use the station. . . . however, be nonpartisan in nature and and get-out-the-vote campaigns aimed at_ . 

Further, fundamental principles of they must provide fair and impartial union members and their families. · ·'.., 

journalism. combined with the. 7. • treatment of candidates. The primary Moreover, In permit~.;. .. corporations· requirement that such debates be ·· question in determining nonpartisanship U£ 66 

nonpartisan, provides sufficient la the ielectlon of candidates·to . . . .- . and labor organizations to support · 

· safeguards as to nonpartisanship of participate in such debates. · registration and get-out-the-vote 

debates· staged by newspapers, . Although the section does not -. campaigns aimed at the public, Congress 

magazines and other periodical · · · . prescribe specific requirements for . ·- · prescribed a role. for nonpartisan . 

publications. . . -:. - .. :~ . ,election of candidates to participate, a . nonprofit organizations. In addition to 

For the_ purposes of this section, the -· · · general election debate may not be - . --- . I 44tb(b)( 2 )CB), 2 U.S.C. I 431(f)(4)(B) 

term 11broadcaster" is meant to Include · _.. 1tructured so as·_to promote one · . · · : also specifically provides that the terin 

broadcasting facilities licensed by the candidate over another. An organization .. expendih.ire" does not Include . 

Federal Communications Commission, staging a debate may invite candidates ttnonpartlsan activity designed to . 

as well as networks. The term "bona · to participate in a debate on the basis of encourage Jndi~duals to register to vote, 

fide" newspaper is intended to mean a ... · party affiliation. Hence, such an · .: . or to vote. In discussing the · 

publication of general circulation ·· organization could stage a general . . lnterrelations~p between 2 U..S.C. 

produced on newiprint paper which elecl;on debate to which only major ... ; I 431(f)(4)(B) and 2 U.S.C. 

appears at regular intervals (usually · . party·candidates are invited. .. ;· I 44tb(b)(2)(B), the 1976 conferees 

daily or weekly) and which la devoted _ For debates at the primary, ·caucus-or expi:8Hly stated that corporal~ and 

primarily to the dissemination of news convention leveL a staging org.anization . la~or organization treasury fwids could . 

. and editorial opinion to the general may restrict p~cipation to candidates . be used for nonpartisan registration and 

public. Only newspapers which . · seeking the· nomination of one party. . _ get-out-the-vote efforts aimed at the ·. . . 

ordinarily derive their revenues from More~ver, If a staging organization . general public. If such efforts were .. · 

subscriptions or advertising would be _ .. restricts participa~on to candidates Jointly sponsored by a nonprofit ... · · 

considered "bona fide". A 11bona fide" . seeking the nomination of one party, . nonpartisan organization. · · ·· · 

magazine or other periodical publication there would be no requirement to stage.-·· ••• The conferees' intent with ~ega~ 

la a publication in bound ·pamphlet form· a debate for candidates seeking the . to the interrelationship between aecti~ns 

appearing at regular interv•ls (usually • nol_Dination of any other party. However, . 301(f)(4)(B) and.321(b)(2)(B) which· . 

aither weekly, bl-weekly, monthly or · · .. any debate held for primary, caucus or : permit such activities as assisting . · .. , 

:iuarterly) and contairμng articles of convention candidates may not promote . eligible voters to register and to get to 

:iews, information. opinion and one ~andidate over another. _ .. _ _ ·.. . the polls, 10 long as these services are 

!ntertabiment. whether of general or__ A debate is nonpartisan if Ula for the . made available without regard to the . 

1peciallzed interesl Only magazines· -- purpose of educating and info~g the . _ · voter's political preference, is the 

ind periodicals which ordinarily derive voters, provides fair and Impartial ._ . . · following: these provisfon~ should be ... , their revenues from subscriptions and · treatment of candidates, and does not · · . read together to permit corporations _ .. : 

1dvertising would b.e·consldered 11bona promote or advance one candidate over both to take part in nonpartisan 

. tide". In addition. a news gathering . another~ · ,. · : · :. . . registration and get-out-the-vote : ·. ·:.·.~::.: 

service that ~rovides news coverag~ on CFR 114• , 4 ,: . _ ,. ,:, ... ( .,. , , • • activities that are n~t restricted ~o .· ... : .... 11 8 uegular basis to newspapers and _ . '' :1· · • ·• • • • - · • ~. • • · ·· • stockholders and executive or _ - . . _ . '.! ~ •• 

nagazines ~ay stage nonpartisan -· .. ~ · : : · .-~ Certain nonpartisan voter. registration. · administrative personneL ihuch . .~ · ::·.: 

lebates. . . _ _ . ; and get-out-the-vote activity is exempt · activities are jointly sponsored by the . • · 

· News media organizations which are from the coverage .of all provisions of corporation and an organization that :: .. ~ 

,wned or controlled by a political party, ... the Act. including the prohibition · . · 4oes nQt endors~ C8:Jldidates and are· · .. ~.> 

. ,olitical committee or candidate m.ay. · :. against corporate and labor union _ . conducted by that organlzati~n: and to .. _. · 

1ot stage debates. See z U.S.C. · . , contributions and expenditures. Because permit corporations •. on their own. to. . . _ · ·,' 

I 43t(f)(4)(A). Moreover, not included · : nonpartisan public candidate debates · engage in •uch activities restricted to ··.::·· 

Nithin the newspaper exemption are _ are similar in nature and purpose to · · executive or administrative personnel _ ·=-. 

: ~rlodical publications which are not of registration and vote activity, under · . · and stockholde~ and their families. The ~ 

r 1eneral distribution but serve aa intemal 1ubsectlons (e)(t) and (e)(3), ·· · .. · • same nile, of course, applies to labor 

'house organs." See legislative history · corporations and labor organizations are · organizations. H.R. lep. No.1057, 94th 

>f Taft_-Hartley Act (Labor Management· · permitted to donate funds to nonprofit . . Cong., Zd Sesa. 83-64 (1976). :. . ,,.· .. ··.; - ... 
76738 Federal Register/ Vol. 44, No. 249 / Thursday, December 27, 1979 / Rules and Regulations 

The conferees' Intent la embodied ln grounds, 407 U.S. 385 (1972): Miller v. 

Commf11ion regulations at 11 CFR American Telephone It Telegro.ph. · 507 

1H.4{d). That section permits F.zd 759 (3d Cir~ 1974). Unlike single. 

corporations or labot organizations to candidate appearances which have the 

1upport and donate funds for . effect of promoting the nomination or 

nonpartisan registration and get-out-the­ election of one individual, a properly 

vote drives aimed at the public If the . 1tructured nonpartisan debate lnvolvina 

. acti~ties are Jointly sponsored with and two or more candidates would not be 

co~ducted by a nonprofit organization construed to be active electioneering to 

which does not support or endorse promote or Influence the nomination or 

candidatef or_politlcal parties. . election of one particular candidate. 

In aectiona 43t(f)(4)(B) and Subsection (e)(Z) permlta 

44tb(b)(2)(B) Congreu expressly broadcasters, newspapers, magazines . 

Indicated an Intent to permit and other periodical publications to uae 

'corporations and labor organizationa to their own funds to stage nonpartisan 

participate In nonpartisan activity . debate,. Consistent with ordinary 

aimed at encouraglns voter participation practice and applicable regulations of 

where that activity waa undertaken in the Federal Communications . 

·conjunction with a nonpartisan Commission. a broadcaster may accept -

~nonprofit organization. Permitting both regular commercial ·advertising and 

. corporatlona and labor organlzationa to· . underwrltlna by corporations and labor 

donate funds to nonpartiaan nonprofit organizations to finance the broadcast 

organizations for the purpose of staging · of debates staged or covered by the 

nonpartisan candidate debates furthers broadcaster. Similarly, nothins ln this 

that express congre1Sional fntenL 1_ectlon prohibits a newspaper, magazine 

Candidate debates'atimulate voter or other periodical publication from . · 

Interest and hence "encourage accepting regular paid advertising In an· . · 

Individuals to register to vote or to Issue which coven a debate, whether 

vote." Inasmuch aa candidate debates 1taged by the newspaper or by another 

are in the public Interest and encourage - entity. Broadcasters, newspapen, 

. ·.··· . educated voter Involvement. permitting magazfnei and other periodical ' · 

corporations and labor organizations to publications may not. however, accept 

donate funds to nonprofit nonpartisan direct corporate or labor organization 

organizations for their staging ia. . payments (other than payments for 

· . consistent ~ith congreaalonal Intent and · - regular commercial advertising and 

policy underlying sections 431(f)(4)(B) _ . underwriting) to finance the staging of ·· 

and ~tb(b)(Z)(B). . debates. · · · .. 

Only nonprofit corporations may . Ifls also important to note that the 

accept such paymenta under 11 CFR·. · prohibitions of Z U.S.C. I 44tb were not 

114.4(e)(t). The reason for this · specifically aimed at the donation of 

dlst.jnctlon la that federal tax law corporate or labor organization funds to 

a . r estrictions on the actlvitiea of nonpartisan tax-exempt organization. . 

Under Z U.S.C. I 44tb(b)(Z), the terms - nonpartisan corporations provide ~-... - .. contribution" and "expenditure" are . sufficient aafeguarda to Insure · nonpartiaanahlp. There la no · detmed to mean "any direct or Indirect 

comparable safeguard for broadcasters. · · payment, distribution, loan. advance, 

newapapen, magazines and other . · . deposit or gift of money • • · ~ to any periodical publications. Indeed. media · · candidate, campaign committee or . corporations are 1pecifically permitted. political party or organization.'' Under. 

11 CFR 114.4(e),_only nonprofit · by the Act to endorse candidates, whlle · · a nonprofit organization which endorses nonpartisan corporations which are .tax-

-· exempt under 26 U.S.C. H 501 (c)(3) or -. candidatf!I la not permitted to 1tage 

debates under the proposed regulations. (c){4) may accept corporate or labor . 

organization donations to stage debateL Authority: 2 U.S.C. II m(e), m(f) and 

Such organizations would .be neither a · · 441b. 

_ campaign ~mmlttee, a political party 

nor a political organization referred to In 

2 u.s.c. I 44tb. · · 

Finally, courts have generally _ 

construed 2 U.S.C.. I 441b to prohibit . only active electioneering on behalf of a· 

candidate or a political party or conduct .. · -designed to Influence the public for or . 

• against a particular candidate. See, 

United States v. United Auto Workers, 

352 U.S. 567 (1957): United States v. 

Pipefitten Local Union No. 682, 434 F .2d 

1118 (8th Cir. 1970), nv'd on other