• 

THE FEDERAL ELECTION 

COMMISSION 

1325 K Street N.W., Washington, D.C. 20463 

Volume 6, Number 7 

REPORTS DUE IN JULY 

Political committees listed below are required to file 

quarterly reports by July 15, monthly reports by July 20 or 

semiannual reports by July 31. 

Who Reports in July 

The following thresholds trigger registration and reporting requirements for political committees: 

• 

1. Authorized candidate committees (including principal 

campaign committees) register and report when the 

committees and/or the candidate that they support have 

together received contributions aggregating in excess of 

$5,000 for the election cycle or made expenditures 

and/or incurred debts in excess of $5,000 for the elec· 

tion cycle. 

2.	 Locaf party organizations register as political committees 

and	 report when they have: 

Received contributions aggregating in excess of 

$5,000 a year; 

Spent more than $5,000 a year for certain payments 

that are exempt from the definitions of contribution 

and expenditure (2 U.S.C. §431(8)(B)(v), lx) and 

(xii)); 

Made expenditures aggregating in excess of $1,000 a 

year; or 

Made contributions aggregating in excess of $1,000 a 

year. 

3. Separate segregated funds	 (political action committees 

or PAC's) must register and report regardless of the 

amount of their financial activity. 

4. All other political committees must register and report 

when they have received contributions aggregating in 

excess of $1,000 or made expenditures and/or incurred 

debts aggregating in excess of $1,000 per calendar year. 

Who Need Not Report 

The following persons are not required to file a report in 

• 

July: 

1.	 Candidates. As an agent of the campaign, the candidate 

must report to the principal campaign committee any 

personal financial activity related to the campaign. 

2. 

didetes under 

Committees authorized 

tbe Act. Authorized 

by individuals who are 

political committees 

not csnJuly 19

excess of $5,000 for the election cycle or made expenditures and/or incurred debts aggregating in excess of 

$5,000 for the election cycle have no reporting obligations under the Act. Committees which fall below these 

thresholds should contact the FEC's Office of Public 

Communications for termination procedures. See 

below.I 

When Reports Are Filed 

Quarterfy Reports. The treasurer of the political com

mittee (other than monthly or semiannual filers, see below

must file a quarterly report by July 15 regardless of t

amount of funds received or expended by the committ

during the quarter. (FEC Form 3a, the postcard waiver, 

no longer an acceptable filing.) The quarterly report mu

include all reportable transactions occurring since the la

full report filed or (if the committee is new) from the da

of registration through June 30, 1980. 

Monrhly Reports. 

1.	 The treasurer of each principal campaign committee 

a Presidential candidate which has received contributio

or made expenditures aggregating $100,000 or more (

anticipates doing so) must file a monthly report by Ju

20. Note that, if a Presidential committee that has be

filing on a quarterly basis receives contributions 

makes expenditures aggregating in excess of $100,00

that committee must begin. to file monthly repor

in the next reporting period. 

2. All committees not authorized by a candidate. which f

on a monthly basts, must file their monthly report 

July 20. 

The reports of monthly filers must cover all transactio

that occurred between June 1 and June 30, 1980. 

Semiannual Reports. Committees authorized by candidat

seeking election in a year other than 1980 (e.q., candidat

seeking a U.S. Senate seat in 1982 or former candidat

with campaign debts) are required to file a semiannu

report by July 31. The report covers the period fro

January 1 through June 30, 1980, or (if the committee 

new) from the date of inception through June 30. T

treasurer must file the complete report, including 

appropriate schedules, regardless of the amount of fun

received or expended during the reporting period. (FE

Form Sa, the postcard waiver, is not an acceptable filing

which have not received contributions aggregating in	 continu
Where Reports Are Filed to report. The form also contains new line-by-line inst

Political committees must file their reports with the tions. 

appropriate federal and state offices. Correct filing procedures may be obtained by consulting the instructions on 

the back of the reporting forms (Form 3, 3P or 3X). 

NOTE: Each authorized committee of a candidate must file 

its report with the principal campaign committee, which in 

turn must file a consolidated report on FEC Form 3Z with 

the appropriate offices. 

Reporting Forms 

Political committees must use the following forms, with 

appropriate schedules, to file their quarterly, monthly or 

semiannual reports: 

1. Form	 3 must be used by all political committees authorized by a candidate for the House or Senate. 

2. Form 3P must be used by Presidential campaigns. 

3.	 Form 3X must be used by all political committees which 

are not authorized by a candidate. 

A notice containing additional information, as well as 

forms, has been sent to all registered committees. Questions 

about the notice, or requests for forms, should be addressed 

to the Office of Public Communications, Federal Election 

Commission, 1325 K Street, N.W., Washington, D.C. 

20463; or telephone 202/523-4068; toll free 800/424­

9530. 

FEC APPROVES REVISED 

REPORTING FORMS 

On June 12, 1980, the Commission transmitted to 

Congress revised versions of FEC reporting Forms 4, 5 and 

7. Revisions in the forms, highlighted below, eliminate 

reporting problems which occurred during the 1976 elections and reflect the 1979 Amendments to the Act: 

FEC Form 4 (Convention Report Form) requires committees to categorize their receipts in more detail than in the 

past. For example, contributions received to defray convention expenses must now be reported separately from other 

types of receipts. The revised form also contains line-by-line 

reporting instructions and includes the schedules for 

itemizing receipts, disbursements, loans, and debts and 

obi iqations. 

NOTE: Convention committees may file on either the old 

or the new Form 4 for the 1980 elections. 

FEC Form 5 (Report of Independent Expenditures and 

Contributions Received) requires a person (other than a 

political committee) who makes an independent expenditure to report the expenditure (once it exceeds $250) and 

the receipt of any contribution (in excess of $200) to 

further an independent expenditure. The person making a 

contribution for an independent expenditure no longer has 

FEC Form 7 (Report of Communication Costs) has b

changed to incorporate the new reporting dates conta

in the 1979 Amendments.
 

SPECIAL ELECTIONS 

IN MICHIGAN 

Michigan has scheduled a special primary election 

August 5 to fill the seat vacated by Congressman Charle

Diggs, Jr., former Representative from the 13th Cong

sional District. A special general election will be held 

November 4, 1980. (Note: These special elections wil

held on the same dates as the regularly scheduled prim

and general elections.) All individuals on the ballot in th

special elections and their principal campaign committ

will receive special notices from the FEC on their repor

requirements and filing dates. All other committees s

porting candidates in the special elections should con

the Commission for information on required repo

Information may be obtained by calling toll free (800)4

9530 or 523-4068 in Washington, D.C. 

FEC PUBLIC APPEARANCES 

In keeping with its objective of making informa

tion available to the public, the Federal Election

Commission regularly accepts invitations to addres

public gatherings on the subject of campaign finance

laws and the Commission itself. This regular column

name 

lists scheduled 

of the sponsoring 

Commission 

organization, 

appearances, 

the 

detailing 

location 

the

of

the event and the name of the Commission's speaker

For additional information on any scheduled appear

ance, please contact the sponsoring organization.
 

7/2	 Washington Semester Program
 

American University
 

Washington. D.C. 

Vice Chairman John Warren McGarry 

7/10	 Election Seminar
 

Hunter College
 

New York, New York
 

Vice Chairman John Warren McGarry
 

7/11	 Robert A. Taft Institute of Politics
 

Rhode Island College
 

Providence, Rhode Island
 

Commissioner Robert O. Tiernan
 

missioners are: Max L. 

The RECORD is published 

Friedersdort, 

by the Federal 

Chairman; 

Election 

John 

Commission, 

Warren McGarry, 

1325 K Street, N.W., Washington, D.C. 20463. Com

Vice Chairman; Joan D. Aikens; Thomas E

Jr., Clerk 

Harris; Frank 

of the House 

P. Reiche; 

of 

Robert 

Representatives, Ex 

O. Tieman; J.5. 

Officio. 

Kimmitt, 

For 

Secretary 

more.information, 

of the Senate, Ex 

call 202/523-4068 

Officio; Edmund 

or toll-free 

L. Henshaw

800/424

9530. 

2 
•
 

•
 

•
 

DELEGATE SELECTION 

REGULATIONS SENT 

TO CONGRESS 

On May 14, 1980, the Commission transmitted to 

Congress proposed regulations governing contributions 

to and expenditures by individuals seeking nomination 

as delegates to national nominating conventions (11 CFR 

Parts 100 and 110). These regulations address all levels 

of the delegate selection process, including the role of state 

and local party committees. They spell out reporting 

obligations as well as treatment of contributions and 

expenditures by delegates and delegate committees. Major 

provisions of these new regulations implementing the Act 

(2 U.S.C. §431 et seq.] are highlighted below. 

Contributions to Delegates* 

Contributions from Persons. Since a delegate does not 

seek nomination or election to federal office, he or she is 

not a "candidate" under the Act. Therefore, the reporting 

requirements and contribution limits (per candidate) of the 

Act do not apply to contributions made to promote an 

individual's selection as a delegate to a national nominating 

convention. 11 CFR 110.14(c). However, since the contributions to a delegate are made for the purpose of influencing a federal election (t.e.. a national nominating convention or a primary election or caucus held to select delegates 

to a national convention), they would count against the 

individual contributor's aggregate contributlon limit of 

$25,000 per calendar year. Moreover, contributions may 

not be made from sources prohibited under the Act (e.q., 

corporations or labor unions). 11 CFR 110.14(f). 

Contributions from Presidential Campaign Committees. 

Contributions to a delegate by the campaign committee of 

a Presidential candidate, who has received matching funds, 

are chargeable to the Presidential candidate's spending 

limits. 11 CFR 110.14(c). 

Expenditures by Delegates 

Expenditures to Promote Candidacy Only. Expenditures 

by a delegate to promote only the individual's selection 

as a delegate are not limited or reportable. Nor would 

they be chargeable to a Presidential candidate's spending 

limits. Moreover, the regulations permit individuals to make 

these expenditures from their personal funds. 

Example: An individual could spend any amount during the 

delegate selection process for communications advocating 

his/her selection or for travel and living expenses, including 

travel to the national nominating convention. These payments would not be reportable. 11 CF'R 110.14(d). 

Expenditures for Campaign Materials. Expenditures made 

by a delegate for certain campaign materials (e.g., pins, 

bumper stickers, handbills, brochures or yard signs) that 

advocate his or her selection and also refer to a Presidential 

*The term "delegate" includes both delegates and individuals seekcandidate are not limited or reportable, as long as they ar

used only in connection with volunteer activities. Thes

expenditures would not be considered contributions to th

Presidential candidate or expenditures chargeable to th

Presidential candidate's spending limits. 11 CF R 110.14(d)

Expenditures for Public Media. Payments made by a dele

gate for political advertising directed to the general publi

(e.q., communications in broadcast media, newspapers

magazines or direct mail) which advocates the individual

selection as a delegate and refers to a Presidential candidat

are not limited or reportable unless they qualify as either 

contribution in-kind to or an independent expenditure o

behalf of the Presidential campaign. 11 CFR 110.14(d)(ii

Under these circumstances, expenditures for public medi

would be subject to the following provisions of the Act: 

1. An in-kind contribution to the Presidential candidate. 

an individual seeking selection as a delegate makes 

media expenditure in consultation with the Presidentia

candidate or his/her campaign, that portion of th

expenditure allocable to the Presidential candidat

would be considered an in-kind contribution and woul

also count against the Presidential candidate's spendin

limits (if the candidate had received public funds

11 CFR 110.14(d)(ii)(A)(1). The Presidential candidat

would have the reporting responsibility. 

2. An independent expenditure on behalf of the Presiden

tial candidate. If the political advertising expressly advo

cates the election of a clearly identified candidate and 

not prepared in consultation with the candidate o

his/her campaign, that portion of media costs allocab

to the Presidential candidate would be reportable as a

independent expenditure by the individual seekin

selection as a delegate, once the costs exceed $250. 1

CFR 110.14(d)(ii)(B). 

Delegate Committees 

If several persons, acting as a group, support the sele

tion of deleqatets) by receiving contributions or makin

expenditures which exceed $1,000 a year, the group woul

become a political committee. This delegate committe

would be subject to the standard registration and reportin

requirements, contribution limits and prohibitions of th

Act. 11 CFR 110.14(e). 

Party Committees 

Administrative expenses incurred by local, count

district or state party committees for sponsoring conve

tions or caucuses to select delegates are not reportable, bu

may not be paid with contributions which are prohibite

under the Act. 11 CFR 110.14(g)(1). 

Ballot fees paid to state or district party committees b

individuals to qualify as delegate candidates are not contr

butions or expenditures under the Act. These payments a

not subject to any spending limits and are not reportabl

11 CFR 110.14(g)(2). 

These delegate selection regulations were published in th

May 23. 1980, issueof the Federal Register (45 FR 34865

They will be promulgated 30 legislative days after the

transmittal to Congress, provided neither the House nor th

Senate disapproves them. 

ing selection as delegates to national nominating conventions. 

3 
ADVISORY OPINION REQUESTS 

Advisory Opinion Requests (ADR's) pose questions on 

the application of the Act or Commission Regulations to 

specific factual situations described in the ADR. The following chart lists recent ADR's with a brief description of 

the subject matter, the date the requests were made public 

and the number of pages of each request. The full text of 

each ADR is available to the public in the Commission's 

Office of Public Records. 

AOR 

Date Made 

Subject Public 

No.of 

Pages 

1980-61 Application of contribution and 

expenditure limits to independent expenditure committee for 

the Presidential general election. 

5/19/80 3 

1980-62 Solicitations by labor union's 

separate segregated fund. 

5/20/80 3 

1980·63 Costs of volunteer fundraising as 

reportable expenditure. 

5/23/80 

1980-64 Labor organization's payment of 

travel and living expenses for 

delegates to national convention. 

5/27/80 B 

1980-65 Trade association's solicitation 

of personnel of its corporate 

members. 

5/28/80 3 

1980·66 Voter reqis tration activities 

conducted by nonprofit, 

unincorporated association. 

5/29/80 8 

1980-67 Solicitation notice for invitation 

to candidate reception; combined 

contributions by spouses on 

single check, 

6/3/80 5 

1980-68 Post-dated can tributions for 

possible election. 

6/3/80 

1980-69 Contribution Direction Authorization form for labor union's 

separate segregated fund. 

6/9/80 2 

1980-70 Campaign materials purchased 

from independent expenditure 

committee, 

6/10/80 6 

1980-71 Solicitation notice for fundraising 

literature of corporate separate 

segregated fund. 

6/10/80 5 

1980-72 Political contribution plan adminrsrereo by law firm for individual 

members. 

6/10/80 4 

1980-73 Presidential candidates' parttcrpation in senior citizen program 

funded by corporation, 

6/13/80 4 

1980-74 Deduction from vacation fund 

for labor union separate segregated fund, 

6/16/80 4 

1980-75 Trade association's solicitation 

of membership. 

6/17/80 15 

ALTERNATE DISPOSITION OF 

ADVISORY OPINION REQUESTS 

In response to ADR 1980-15 (nonpartisan voter in

mation announcements by corporation), the Gen

Counsel informed the requester in a letter issued Jun

1980, that the Commission had failed to approve 

advisory opinion by the requisite four-vote majority. 

AOR 

28. 1980. 

1980-52 was withdrawn by its requester on 

ADVISORY OPINIONS: SUMMARIES 

An Advisory Opinion (AD) issued by the Commis

provides guidance with regard to the specific situa

described in the AOR's. Any qualified person who 

requested an AD and acts in accordance with the opi

will not be subject to any sanctions under the Act. O

persons may rely on the opinion if they are involved 

specific activity which is indistinguishable in all mat

aspects from the activity discussed in the AD. Th

seeking guidance for their own activity, however, sh

consult the full text of an AD and not rely only on 

summary given here. 

AO 1979-69: Trade Association's Solicitation 

of Associate Members 

The Alaska Loggers Association/Clarence Kramer Poli

Action Committee (ALA/PAC). the separate segreg

fund of the Alaska Loggers' Association, Inc. (ALA). 

not solicit "associate members" of ALA. 

While the Act and Commission Regulations permit a t

association, or its separate segregated fund, to so

contributions to the fund from its members, ALA's as

ate members do not meet the criteria for membership

CF R 114.1 (e). Specifically, an incorporated member

organization without capital stock may only solicit "m

bers" or those persons who have interests and rights in 

organization, who assume some right to participate in 

organization's direction, and who have an obligation to 

sustain the organization through regular financial contr

tions. Since ALA's bylaws specifically state that its a

ciate members do "not have the right to vote at any m

ing or have any voice in ALA or any control over its 

cers," the associate members are not, therefore, "memb

of ALA as defined by 11 CFR 114.1 (e). (Date Issued: 

13.1980; Length: 3 pages) 

AO 1980-30: Conversion of 1980 Campaign Committe

Into 1982 Campaign Committee 

Excess campaign funds from Frank Askin's 1980 Con

sional campaign may be used for any lawful purp

but may not be converted to personal use. 2 U.S.C. §4

Mr. Askin, previously registered as a House cand

seeking nomination in New Jersey's June 3 primary, ce

to be a candidate for that election on March 10, 1980

that date, he amended his Statement of Candidacy, red

nating his 1980 campaign committee as the prin

campaign committee for his 1982 election. Assuming 

there were no outstanding debts or obligations from 

Askin's 1980 primary campaign, the funds remaining 

the 1980 campaign may be used for: 

1. Making	 pro rata refunds to contributors to the 

campaign; and 

4 
2. Supporting the candidate's nomination in the 1982 Reiche filed a dissenting opinion. (Date Issued: May 2

primary election.	 1980; Length: 5 pages, including dissenting opinion.) 

The 1982 campaign committee must, however, report 

•

refunds of contributions. 11 CFA 104.3(b)12)(v)(A) and 

(B). 

Undesignated	 contributions received between March 10 

(the date on	 which Mr. Askin ceased to be a candidate 

for the 1980 election and became a candidate for the 

1982 election) and the 1982 primary count toward his 

1982 primary election. A contributor to his 1980 campaign 

(prior to March 10, 1980) may also contribute to his 1982 

primary election. A separate contribution limit applies to 

each election. 

Because Mr. Askin is now a candidate only for an election 

in 1982, his committee must file semiannual reports, 

required during a nonelection year, rather than quarterly 

reports, required during election years. 11 CFA 104.5(a). 

The committee must identify (on Schedule A) each person 

contributing in excess of $200 during 1980, regardless of 

whether the contributions were for the 1980 or 1982 

election. The report should include a notation, however, 

indicating the election for which the contribution was 

intended. 

Expenses paid by the campaign committee for publishing 

and distributing a newsletter promoting Mr. Askin's candidacy as a delegate to the Democratic National Convention 

must be reported by the committee. 2 U.S.C. §434. Since a 

•

reference to Senator Edward Kennedy (to whom the candidate had pledged his support) was not made in consultation 

with the Senator or any of his authorized committees or 

agents, the committee does not have to report a portion of 

the newsletter expenses as an in-kind contribution to 

Senator Kennedy. Nor ore the expenses chargeable to 

Senator Kennedy's expenditure limit. 2 U.S.C. §441alb). 

If Mr. Askin's Congressional district is redesignated as a 

result of redistricting, the 1982 campaign committee must 

amend its Statement of Organization (FEC Form 1) to 

reflect the change. Commissioner Frank P. Reiche filed a 

concurring opinion. (Date Issued: May 3D, 1980; Length: 9 

pages, including concurring opinion.) 

AO 1980-32:	 Use of Excess Campaign Funds 

to Aetire Campaign Debts 

The Dannemeyer for Congress Committee (the Committee) 

may use excess campaign funds raised in 1979 to retire 

debts of the candidate's 1978 campaign for Congress and 

his 1976 campaign for state assembly, if permitted by 

state law. 

Since the Committee's 1979 fundraising occurred after 

it had begun to engage in financial activity for Mr. Dannemeyer's 1980 Congressional campaign, and since the 

Committee was not specific as to the proposed use of the 

funds raised, the funds received in 1979 count as contribu­

•

tions to his 1980 election. The Act and Commission Regulations permit political committees to use excess campaign 

funds for a variety of specified purposes and for "any other 

lawful purpose." 2 U.S.C. §439a; 11 CFA 113.2. The 

Committee's	 use of 1980 excess carnpaiqn funds to retire 

AO 1980-34:	 Artwork Donated to (and Sold 

by) Political Committee 

Volunteer services supplied by artists in creating artwo

for the Connally for President Committee (the Committe

would not constitute a contribution to the Committee, 

long as the Committee reimburses the artists for the cos

of artwork materials. However, the full purchase price 

each artwork, when later sold by the committee, wou

constitute a contribution to the Committee by the pu

chaser and would be subject to the Act's limits and prohib

tions on contributions. 2 U.S.C. §§441a, 441b, 441c a

441e. 

The sale of the artwork by an art dealer would constitute 

political fund raising activity (rather than a commerci

transaction) since revenue from the sale of the artwo

would be transmitted to, and used by, the Committee 

retire its campaign debts. Accordingly, the Committ

would have to instruct the art dealer to: 

Identify each artwork as part of the Connally Comm

tee collection; and 

Advise potential buyers that the proceeds from the sa

of the artwork count as a contribution to the Comm

tee. 

Further, all the Committee's financial transactions relat

to the sale of the artwork, reimbursements to the artists f

basic materials used to create the artwork, and the commi

sion paid to the art dealer would have to be reported by t

Committee as expenditures, according to the provisions 

2 U.S.C. §434. 

The Commission expressed no opinion on the possib

application of tax laws to the artwork sales since tho

issues are not within its jurisdiction. Commissioner Frank 

Aeiche filed a dissenting opinion. (Date Issued: May 2

1980; Length: 7 pages including dissenting opinion

AO 1980-37:	 Contributions from 

Government Contractor 

The Stenholm for Congress Committee (the Committe

must refund contributions received from a governme

contractor and disclose the refund in its next repo

The contributions must be returned because the contrib

tor, the sole proprietor of a trucking business involved 

four contracts with the U.S. Postal Service, is specifica

prohibited by the Act and Commission Regulations fro

making contributions or expenditures to influence feder

elections from business, personal or other funds und

his control. 11 CFA 115.5. (Date Issued: May 23, 198

Length: 2 pages) 

AO 1980-38:	 Allocation of Computer-Use Expenses 

Between State and Federal Committee 

An agreement to allocate computer rental and data ent

costs between the Allen for Congress Committee (t

Federal Committee) and the campaign committee of 

Michigan legislative candidate (the State Committee) 

permitted by Commission Regulations provided th

the committees allocate costs in a manner that reflects t

actual use and benefit to each campaign. 11 CFA 106.1 a

debts of previous campaigns is considered a "lawful pur­ 110.8Id)(3).
 

pose." Commissioners Thomas E. Harris and Frank P. continue

5 
Under the agreement, the two campaign committees AD 1980·39: Investment of Funds 

would evenly divide computer costs for data entry of voter in Money Ma'ket Fund 

information in areas where their legislative and Congressional districts overlap. Each campaign committee would 

then absorb all costs of data entry and rental in areas that 

do not overlap. To ease bookkeeping requirements, the 

Federal Committee has paid all data entry costs and the 

State Committee has paid a security deposit and rental for 

the use of the computer. Each committee plans to reimburse the other for those costs assignable to it. The computer costs would be reported as follows: 

Payments by the Federal Committee 

Since the Federal Committee's payments for data entry 

of voter information are not for the purpose of influencing 

the state candidate's election, but rather for the purpose of 

influencing Mr. Allen's reelection, the Federal Committee 

must report the data entry costs as operating expenditures. 

11 CFR 104.3(b)(2)(i). 

Reimbursements by the State Committee 

to the Federal Committee 

Reimbursements to the Federal Committee by the State 

Committee for its share of the data entry costs must be 

reported by the Federal Committee as receipts in the form 

of offsets to operating expenditures. 11 CF R 104.3(a)(3) 

(ix)(A), (B) and IC). Since payments to the Federal Cornmittee must be from funds permissible under the Act, and 

since the State Committee is not a political committee 

under the Act, the State Committee must establish one of 

the following accounting procedures if it accepts funds 

prohibited by the Act: 

1. Establish	 a separate account for funds permissible 

under the Act and from which payments to the Federal 

Committee would be made; or 

2. Demonstrate	 through a reasonable accounting method 

that, whenever such payments are made, the State 

Committee has received sufficient funds permissible 

under the Act to make payments to the Federal Committee. 

In addition, the State Committee must keep records, which 

it will make available to the Commission upon request. 

11 CFR 102.5(b)(1)(i) and (ii) and 100.7(a)(1)(i)(D). 

Federal Committee's Obligations to 

the State Committee 

The Federal Committee's obligations to the State 

Committee for its outstanding share of the computer rental 

and security deposit are expenditures by the Federal 

Committee. 11 CFR 100.8Ia)(2). If the committees' aqreement was in writing, the Federal Committee must report its 

obligations as of the date the agreement was made. If the 

agreement was not in writing, the Federal Committee must 

report the obligation and actual payments according to 11 

CFR104.11. 

The Commission expressed no opinion on the application 

of Michigan law to the Federal Committee's payments 

to the State Committee. This opinion supersedes Advisory 

Opinions 1976·110 and 1978·67 with respect to payments 

from political organizations that are not "political committees" under the Act. (Date Issued: May 16,1980: Length: 

4 pages) 

The Fluor Public Affairs Committee (Fluor·PAC), 

separate segregated fund of the Fluor Corporation, m

invest its campaign funds in a professionally mana

money market fund (11 CFR 103.3), provided Fluor·P

to its campaign 

returns campaign funds invested in 

depository before 

the 

the funds are used 

money market f

make expenditures. 

Although Fluor·PAC need not file an amended Statem

of Organization designating the money market fund a

additional campaign depository, Fluor·PAC must fulfill 

following reporting requirements; 

1. Total	 campaign funds invested in the money ma

fund must be included in the total amount of fu

reported by the committee as "cash-on-hand," 11 C

104.3(a)( 1). 

2. Fluor-PAC must	 report as a receipt any income ear

on its investment. 2 U.S.C. §434(b)(2)(J) and (b)(3)

(Date Issued: May 16, 1980; Length: 3 pages) 

AD 1980-40: Multicandidate Committee Status 

fa' Affiliated Committees 

The Transamerica Corporation Political Action Commi

(TRANSPAC) and its affiliated separate segregated fu

Occidental Life Insurance Company of California Polit

Action Committee (OXY·PAC), may qualify as multica

date committees once they have collectively satisfied 

Act's requirements for multicandidate committee statu

U.S.C. §441a(a)(4). Together, that is, they must have b

registered for at least six months, must have rece

contributions from more than 50 donors and contribu

to at least five federal candidates. 

As affiliated committees, TRANSPAC and OXY·PAC 

subject to a single contribution limit with regard to b

contributions received and contributions made. 2 U.

§431(4)(B) and §441ala)(5). (Date Issued: June 9, 19

Length: 3 pages) 

AD 198()"41: Use of candidate's Excess 

Campaign Funds Afte' His Death 

Excess campaign funds and assets of the Slack for Cong

Committee, the principal campaign committee of the 

Congressman John M. Slack, Jr., may be transferred to 

family or his office staff. 

Under the 1979 Amendments to the Act, candida

who were not members of Congress on the day the 1

Amendments were enacted into law (January 8, 1980) m

not use excess campaign funds for personal use. 2 U.S

§439a; 11 CFR 113.2. Since, however, Mr. Slack wa

member of Congress at that time, the proposed use of 

funds would be permissible, provided West Virginia s

law does not make the proposed transfer unlawful. (D

Issued: May 16, 1980; Length: 2 pages) 

AO 1980·43: Reporting 1974 Debts 

by 1980 Committee 

Martin Frost, a candidate for reelection to the House 

Representatives in 1980, may report outstanding debts 

his 1974 Congressional campaign by either one of 

following methods approved by the Commission: 

6 
1. Congressman Frost's 1980 campaign committee may AO 1980-49: Use of Campaign Funds 

consolidate the 1974 campaign debts with activities for Personal Living Expenses 

reported by the 1980 campaign committee. The 1980 Steven D. Weinstein, a Congressional candidate, m

• 

committee would use separate contribution schedules 

(Schedule A's) to identify contributions received to 

retire the 1974 debt and contributions received for the 

1980 campaign. In addition, the committee would file a 

separate debt schedule (Schedule C) identifying the 

1974 debts until they are retired. 

2. Alternatively,	 Congressman Frost may continue to 

file separate, semiannual reports as a 1974 candidate 

until the debts for that election are extinguished. The 

1980 Committee would continue to file quarterly. 11 

CFR 104.3(d), 104.5(a)(21 and 104.11; and 2 U.S.C. 

§434(a)(2){8). (Date Issued: May 23, 1980; Length: 2 

pages) 

AO 1980-45: Nonprofit Organization's Nonpartisan 

• 

Voter Registration Drive 

Planned Parenthood of New York City, Inc. (PPNYC), a 

nonprofit corporation, may conduct nonpartisan voter 

registration drives for the general public at its clinics. 

Commission regulations specifically permit corporations 

and labor organizations to support such nonpartisan voter 

registration drives for the general public as long as these 

activities are jointly sponsored with a nonpartisan, nonprofit civic group and are conducted by the civic group. 11 

CFR 114.14(d). Although this regulation does not specifically address PPNYC's situation, where the qualified civic 

group unilaterally undertakes a voter registration drive 

without a corporate co-sponsor, the regulation does not 

require a civic group to find a corporate co-sponsor for an 

otherwise permissible activity. Commissioner Robert O. 

Tiernan will file a dissenting opinion. (Date Issued: June 

11, 1980; Length: 2 pages) 

AO 1980·47: Preemption of State Law 

Regulating Election Day Services 

The Federal Election Campaign Act (the Act) does not 

supersede or preempt a Maryland law that would prohibit 

the Conroy for U.S. Senate Committee from making 

payments for "walk around services" performed on election 

day. The Maryland law defines payments for "walk around 

services" to include the following activities which the 

Conroy for U.S. Senate Committee proposed to undertake: 

payments to campaign workers engaged in distributing 

campaign literature, sample ballots, or other campaign 

material; serving as poll watchers; and other campaign 

activities performed on the day of the election. (Date 

Issued: May 13, 1980; Length: 3 pages) 

AO 1980-48: Cooperative's Solicitation of 

Corporate Members' Stockholders 

A separate segregated fund proposed by the Mid-States 

Distributing Company (Mid·States). an incorporated 

cooperative association, may not solicit contributions 

from the shareholders of its corporate members. Comrnis­

• 

sion Regulations define solicitable members as "all persons 

who are currently satisfying requirements for membership 

in a cooperative." 11 CFR 114.1(e). In this case, a direct 

membership relation does not exist between Mid-States and 

the shareholders of its corporate members, Mid-States 

could, however, solicit its own individual members. (Date 

use campaign funds for ordinary and necessary liv

expenses incurred during the 1980 campaign. The b

on coverting "excess campaign funds" to personal u

contained in the 1979 Amendments to the Act (2 U.S

§439a), does not affect the candidate's use of campai

funds for campaign purposes during the course of the ca

paign. (Date Issued: May 16, 1980; Length: 2 pages) 

AO 1980·60: Contributions Accepted by Campaign 

Committee for Two Separate Elections 

The Galperin for Congress Committee (the Committe

may accept contributions for both a nominating conv

tion, held on April 26, 1980, to select candidates 

a June 3 special general election in West Virginia, a

for a regular Congressional primary election (also h

on June 3). Since the nominating convention and the C

gressional primary are separate elections, separate lim

would apply to contributions received for these electio

2 U.S.C. §441a(a)(6); 11 CFR 110.1(j1(1) and 110.2(d)(

However, contributions accepted by the Committee 

the nominating convention must have been received 

or before April 26. Contributions received after Ap

26 would count as contributions for the June 3 prim

election (11 CFR 110.1(a)(2)(i;). unless the contrib

tions are specifically designated for the convention and 

not exceed the Committee's outstanding debts for 

convention. (Date Issued: May 30,1980; Length: 3 page

FEC DENIES LAROUCHE REQUEST 

TO REESTABLISH MATCHING 

FUNDS ELIGIBILITY 

On May 28, 1980, the Commission denied a requ

submitted by the principal campaign committee of Lynd

LaRouche to reestablish Mr. LaRouche's eligibility 

primary matching funds." (Mr. LaRouche had beco

ineligible for funds on April 17, 1980, when he fai

to receive 10 percent of total votes cast in two consecut

primaries.) The Commission also voted to grant a one-we

postponement of its audit of the LaRouche Commit

originally scheduled for June 2,1980, until June 9, 19

The Commission found that Mr. LaRouche had not reest

lished his eligibility because he had not received 20 perc

of the total votes cast in the Democratic Presidential 

mary election held in Michigan on May 20, 1980. 11 C

9033.7 (b). The Commission also questioned whether 

Michigan Primary constituted an "election," as defined 

the Presidential Primary Matching Payment Account 

(26 U.S.C. §9032(7»), since the Michigan law establish

this election had been ruled unconstitutional by a fede

district court. 

*Ineligible candidates may continue to receive primary match

funds to retire outstanding campaign debts incurred before 

date of ineligibilitV. provided certain requirements are met. 

Issued: June 9,1980; Length: 3 pages)	 Commission Regulations at 11 CFR 9034.1. 

7 
LITIGATION STATUS INFORMATION 

The following is a list of new litigation involving the 

Commission, together with the date the suit was filed, 

the Court involved, the Docket Number and a brief description of the major .issuets) involved in the case. Persons 

seeking additional information on a particular case should 

contact the Court where the suit is filed or the Commission. 

FEe v. Louis R. Lee, U.S. District Court for the Eastern 

District of Michigan, Southern District-Detroit, Docket 

No. 80-71556, May 8,1980. 

FEe seeks declaratory and injunctive relief 

against Louis R. Lee for violating the terms of a 

conciliation agreement he had entered into with 

the Commission. Mr. Lee violated the agreement by failing to pay a $10,000 civil penalty 

required by the agreement. 

SUMMARY OF MUR's 

Selected compliance cases, which have been closed and 

put on the public record, are summarized in the Record. 

Compliance matters stem from possible violations of the 

Federal Election Campaign Act of 1971, as amended, which 

come to the Commission's attention either through formal 

complaints originating outside the Commission or by the 

FEC's own monitoring procedures. The Act gives the FEC 

the exclusive jurisdiction for the civil enforcement of the 

Act. Potential violations are assigned case numbers by the 

Office of General Counsel and become "Matters Under 

Review" (MUR's). All MU R investigations are kept confidential by the Commission, as required by the Act. 

MUR's may be closed at anyone of several points during 

the enforcement process, including when the Commission: 

Determines that no violation of the Act has occurred;
 

Determines that there is no reason to believe or no
 

probable cause to believe a violation of the Act has
 

occurred;
 

Enters into a conciliation agreement with the respon­


dent;
 

Finds probable cause to believe a violation has occurred
 

and decides to sue; or
 

Decides at any point during the enforcement process to
 

take no further action.
 

After the MUR is closed and released by the Office of 

General Counsel, the Commission makes the MUR file 

available to the public. This file contains the complaint, 

the findings of the General Counsel's Office and the Commission's actions with regard to the case, including the full 

text of any conciliation agreement. The Commission's 

8 

actions are not necessarily based on, or in agreement wi

the General Counsel's analysis. 

Selection of MUR's for summary is made only from MUR

closed after January 1, 1979. The Record article does n

summarize every stage in the compliance process. Rath

clear 

the summary 

the Commission's 

provides 

final 

only 

determination. 

enough background 

The full 

to 

text 

ma

these MUR's and others which were closed between 19

and the present are available for review and purchase in t

Commission's Public Records Office. 

MUR 454: Extension of Credit 

On March 1, 1979, the Commission determined that the

was no reason to believe a corporation's extension of cred

to a political committee had violated the Act or Comm

sion Regulations. 

Compteiat: The Reports Analysis Division referred th

matter to the General Counsel after a routine analy

indicated that a committee might have settled a debt with 

fund raiser in a manner that violated 11 CFR 114.10(a). 

its 3D·day post-general election report, the committee h

an outstanding debt of approxirnatelv $41,000 to 

fund raiser and the fundraiser's direct mail subcontractor

The committee noted that the firms to which it still ow

money had agreed to do subsequent solicitation mailin

until the committee had raised enough money to liquida

its debts to them. When the committee filed its ne

quarterly report, all debts had been paid in full. 

General Counsel Reports: The committee's contract wi

its fundraiser provided that the fundraiser would furni

campaigns 

consulting and 

for 

computer 

the client 

services and 

committee. 

conduct 

Between 

direct 

July 

m

an

September, 1977, the fundraiser provided the committ

with services totaling $73,094. During that period, t

committee paid the fundraiser $32,067. After the fun

raiser had completed its work for the committee, t

committee disputed the amount it owed to the fundraise

To retire the committee's debt (approxirnatelv $41,000

the fundraiser accepted the responsibility for raising suf

cient funds to satisfy the committee's debt to the fun

raiser and its subcontractors. 

The General Counsel pointed out that, since the committ

subsequently paid all its debts in full, there did not appe

to have been a "debt settlement: as defined by 11 CF 

114.10(b). However, since the fundraiser and its subco

tractors had extended $41,000 in credit to the committe

possibly there had been an extension of credit beyond th

ordinary course of the corporation's business, in violatio

of 11 CFR 114.10(a). 

Further investigation revealed that, upon discovery of t

committee's unwillingness or inability to pay its debts, t

fund raiser had secured partial payment and promisso

notes for the committee's remaining obligations. Therefor

the General Counsel concluded that, in an attempt 

secure payment, the fundraiser had extended credit to t

The 

client 

General 

committee. 

Counsel distinguished this situation from oth

forms of corporate credit because the committee's credit

was also the committee's fundraiser. Given that situatio
the General Counsel maintained that it would be un­ The General Counsel concluded that the funds mus

reasonable for the creditor to take his client to court since therefore, be considered contributions from the father, 

• 

the client would ultimately be dependent upon the creditor's services as a fund raiser to satisfy the debt. Therefore, 

although the contract was unusual, its execution by the 

creditor seemed commercially reasonable. The contract was 

entered into in July 1977, and the services were performed 

during August of the same year. In that period, the fundraiser collected nearly one-half of the total amount due, 

and all debts were fully paid by March 31, 1978. Since the 

credit terms were commercially reasonable in this situation, 

the General Counsel recommended that the Commission 

find no reason to believe a violation of the Act had occurred, 

Commission Determination: On March 1, 1979, the Commission determined that there was no reason to believe a 

violation of the Act had occurred. 

MUR 737: Candidate's 

Personal Funds 

On March 14, 1979, the Commission entered into a conclllation agreement with an individual who had made an 

excessive contribution, in violation of 2 U.S.C_ §441a(a) 

(1)(A). On April 2, 1979, the Commission entered into a 

conciliation agreement with the committee which had 

knowingly accepted the excessive contribution, in violation 

of 2 U.S.C. §441a(f). 

• 

Complaint: During the course of a routine report analysis, 

it was discovered that an individual had contributed 

$20,500 to a Federal candidate's campaign committee. The 

contribution was made in the form of three separate loans, 

and each was designated for the primary election. The 

committee's post-primary report explained that the excessive $19,500 had been refunded. In response to an inquiry 

from the Commission, the candidate identified herself as 

the source of funds for the contribution refund. On 

October 23, 1978, the Commission found reason to believe 

that the individual had violated §441 ala)( 1)(AI by making 

the excessive contribution and that the committee had 

violated §441a(fl by knowingly accepting the excessive 

contribution. 

General Counsel Reports: During the course of the ensuing 

investigation, the lender stated that the loans were made to 

the candidate, who is his daughter, rather than to the 

committee. He described the funds as personal loans rather 

than campaign contributions and stated that the funds were 

initially deposited in the candidate's personal account. (The 

individual did not submit any evidence of the intermediate 

transaction between himself and the candidate.) However, 

regardless of how the father attempted to characterize the 

loans, the General Counsel pointed out that the funds in 

question would not meet the "personal funds" definition in 

Commission Regulations (11 CFR 110.10(b)) because: 

The first loan from the individual was used, according 

• 

to the committee treasurer, to open the committee's 

account; 

The balance of the loan was made after the individual's 

daughter became a candidate; and 

The committee reports identify the individual rather 

violation of §441a(a)(1I(A). Furthermore, although th

candidate notified the Commission that she was the sourc

of the loan repayment, that information did not satisfy th

Act's reporting requirement that a committee disclose th

"circumstances and conditions under which" loans a

extinguished. Therefore, the General Counsel recommende

that the Commission find reason to believe that the com

mittee had also violated 2 U.S.C. §434(b)(8) as amended 

1979. 

Commission Determination: On January 31, 1979, th

Commission found reason to believe that the committe

had violated §434(b)(8l, reasonable cause to believe that 

had violated §441a(f) and reasonable cause to believe th

the individual had violated §441a(a)(1)(A). On March 1

1979, the Commission entered into a conciliation agre

ment with the individual. The committee amended i

reports to reflect the details of the loan repayment, 

required by §434(b)(8), prior to entering into a concili

tion agreement with the Commission on April 2, 1979. Civ

penalties were levied on both the individual contributor an

the committee. 

FEC PUBLISHES NAME 

OF NONFILER 

On June 5, 1980, the Federal Election Commissio

published the name of a Presidential candidate's princip

campaign committee, which had failed to file a month

report by April 20, 1980. Under the 1979 Amendments 

the election law, the campaigns of Presidential candidat

which raised or spent more than $100,000 by January 

1980, must file monthly financial disclosure reports durin

the election year. Each report is due on the 20th of th

month, covering the previous month's financial activity. 

New Commission procedures call for each Presidenti

campaign committee over the $100,000 level to be notifie

by mailgram five business days after the due date of th

report if the report has not been received. Failure 

respond to the notice within four additional business da

results in publication of the committee's name. 

COMMISSIONER TIERNAN 

ACCEPTS ABA APPOINTMENT 

Commissioner Robert O. Tiernan has accepted a

appointment as a member of the American Bar Associ

tion's (ABA's) Advisory Commission to the Special Com

mittee on Election Law and Voter Participation. Th

appointment, which was made by ABA President-ele

William Reece Smith, Jr., of Chicago, will be for a one-ye

term starting in August. An original member of the Com

mission appointed in 1975, Commissioner Tiernan w

than the candidate as the source of the loans to the reappointed in May 1976 by President Ford and served 

committee. Chairman in 1979-80. His term expires on April 30, 198

9 
The Office of Public Communications receives numerous 

inquiries from the public on its toll-free line: 800/424­

9530. The following explanation responds to a frequently 

asked question. 

Name of Separate Segregated Fund 

Question: Maya separate segregated fund fa political action 

committee or PA C) continue to use the acronym by which 

it is widely known - even if the acronym excludes the 

name of the fund's connected organization? 

Answer: The name of a separate segregated fund must 

include the full name of its connected organization. 11 

CFR 102.14. On checks and letterhead, however, the fund 

may use an abbreviation or acronym, as long as the abbreviated title makes clear who actually sponsors the separate 

segregated fund. Both the full name and the abbreviation or 

acronym must be included on the fund's Statement of 

Organization (Form 1), on all reports filed by the fund, and 

in all notices that appear on advertisements or solicitations. 

If the current Statement of Organization does not reflect 

these names, then the separate segregated fund must amend 

the Statement accordingly. 

Example: While United Telecom Political Action Committee, the separate segregated fund of United Telecommunications, lnc., must change its official name to "United 

Telecommunications, lnc., Political Action Committee," 

the fund may continue to use its abbreviated title, "United 

Telecom Political Action Committee," on committee letterhead and checks since this title clearly identifies the fund's 

connected organization. (See AD 1980-10, May 1980 

Record; see also AD 1980-23, June 1980 Record.) 

CLEARINGHOUSE RELEASES 

BILINGUAL STUDY 

During May 1980, the Ciearinghouse released Volume II 

of The Bilingual Elections Services Study, a multiyear study 

of bilingual election practices. The Study, conducted by the 

University of New Mexico under contract with the FEe's 

Clearinghouse, analyzes the problems encountered in 

providing bilingual voter services in more than 300 local 

jurisdictions in some 30 different States. The purpose of 

the Study is to provide State and local election officials 

with a handbook of ideas and suggestions for improving 

Volume I: A Handbook of Ideas for Local Elect

Officials suggests techniques for identifying langu

minority populations and defines the types of elect

services most appropriate to their needs; and revi

different ideas and approaches for designing biling

registration programs and for providing bilingual serv

ber 

at polling 

1979.) 

places. (This volume was released in Septe

Volume 1/: A Glossary of Common Spanish Elect

Terminology.
 

Volume Ill: The State of the Art summarizes a tw

year analysis of how election officials throughout 

country have identified their language minority po

lations and defined their needs, as well as how biling

registration and balloting services have been provid

to date. (This volume was released in September 197

Volume " of The Bilingual Elections Services Study 

available from the Superintendent of Documents, U

Government Printing Office, Washington, D.C. 204

Identify report titie and GPO stock number (052-0

00007-4), Enclose a check or money order for report p

($3.501 payable to Superintendent of Documents. 

Volumes I and III of The Bilingual Elections ServicesStu

are available from the National Technical Informat

Service, U.S. Dept. of Commerce, 5285 Port Royal H

Springfield, VA 22161. Identify report numbers {Vol

No. PB300432AS, $7.00; Vol. III, No. P8300433A

$11.001 and enclose a check or money order payable 

National Technical Information Service. 

SUBSCRIPTIONS TO ELECTION LAW 

UPDATES AND ELECTION CASE LAW SERIE

The following subscriptions are available from the FE

Clearinghouse: 

Election Law Updates. This quarterly series include

synopsis of all key federal and state election laws, a co

prehensive index to aid in research and an annual cum

lative summary. Subscription price: $11.00 a year. 

Election Case Law. This quarterly series is similar 

design and concept to the Election Law Updates. 

federal and state election cases are summarized 

indexed. Subscription price: $10.00 a year. 

Please do not send checks or money orders to the Comm

sion. For information on how to subscribe, please wr

Clearinghouse - FEC, 1325 K Street, N.W., Washing

D.C. 20463; or call 202/523-4183 locally or toll-free 8

424-9530. 

bilingual registration and election services. The three­

volume study includes: 

10 
• ANNUAL REPORT 

On June 1, 1980, the Commission submitted its Annual 

Report 1979 to the President and the Congress. The Report 

details the Commission's efforts to facilitate smooth 

administration of public financing in the 1980 Presidential 

elections while improving overall administration of the 

election law. The Report describes, for example, procedures 

developed to expand the scope of information available on 

Presidential campaign finance activity; ensure swift certification of public funds; and undertake tlmelv, thorough 

audits of candidates and national nominating conventions 

receiving public funds. It highlights revised regulations 

governing the public funding of Presidential primary 

campaigns and national nominating conventions, as well as 

advisory opinions issued on Presidential election activity. 

A separate chapter of the Report highlights major changes 

in the law resulting from passage of the 1979 Amendments 

• 

CHANGE OF ADDRESS 

Political Committees 

must, by law, be made in writing as an amendment to 

to the Act. (A similar summary was published as a Suppl

ment to the Record in March 1980.1 

During 1979, the Commission's internal administratio

changed as a result of a collective bargaining agreemen

negotiated between FEC management and representative

of the National Treasury Employees Union. The Repo

discusses this labor/management issue as well as othe

aspects of the FEC's internal administration. 

Finally, the Report contains the Commission's legislativ

recommendations. Several appendices contain supplement

information on the Commission and its activities. A

appendix on advisory opinions, for example, summarize

all Commission advisory opinions issued in 1979. 

The FEC's Annual Report 1979 is available from th

Superintendent of Documents, U.S. Government Printin

Office, Washington, D.C. 20402; telephone: 202·275·209

The order number is 052·006·00006·6. Purchase pric

payable in advance to the Superintendent of Documents, 

$4.25. 

Registered political committees are automatically sent the Record. Any change of address by a registered committee 

FEC Form 1 (Statement of Organization) and filed with the 

Clerk of the House, the Secretary of the Senate or the FEC, as appropriate. 

Other Subscribers 

Record subscribers (who are not political committees), when calling or mailing in a change of address, are asked to 

provide the following information: 

1. Name of person to whom the Record is sent. 

2. Old address. 

3.	 New address. 

4.	 Subscription number. The subscription number is located in the upper left hand corner of the mailing label. It consists of three letters and five numbers. Without this number, there is no guarantee that your subscription can be 

located on the computer. 

•
 
FEDERAL ELECTION COMMISSION
 

1325 K STREET, NW
 

WASHINGTON, DC 20463
 

OFFICIAL BUSINESS 

FIRST CLASS MAIL 

POSTAGE & FEES PAID

FEC
 

WASHINGTON, 

PERMIT NO. G·31 

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