THE FEDERAL ELECTION 

COMMISSION 

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

Volume 3, Number 2 

FEC SENDS FULL SET OF 

PROPOSED REGULATIONS TO CONGRESS 

On January 11, 1976, the Federal Election Commission 

sent to Congress a complete set of proposed regulations 

governing all major areas of the Federal Election Campaign 

Act, as amended (the Act). They are virtually identical, 

with three major exceptions, to the set of proposed regulations submitted to Congress on August 3, 1976, and, with 

supplements transmitted "on August 5 and 6, published in 

the Federal Register August 25, 1976. Three substantive 

amendments adopted later are summarized below. (Highlights of the August 3 regulations appeared in the Record, 

August 16,1976, Vol. 2, No.7.) 

The package of proposed regulations covers Title 2, U.S. 

Code, concerning disclosure and the expenditure and contribution limits, and Title 26, U.S. Code, dealingwith the 

public funding of Presidential elections. Under the Act, the 

Commission may promulgate these regulations 30 legislative 

days after Congress receives the transmitted regulations, 

provided neither house vetoes them. The August 3 proposed regulations had been under legislative review when Congress adjourned on October 1, 1976 -- two days short of the 

30 day requirement for promulgation. 

The Commission considered substantial public testimony 

before submitting the original regulations to Congress. 

Written comments were received from the public following 

the publication of draft regulations in the Federal Register 

on May 26 and June 25, 1976. Hearings were subsequently 

held June 7-10 and again on July 7,1976, to review all the 

proposed regulations. 

Amendment to 102.9 

Particulars of Expenditures 

Committee treasurers must record and report the "particulars" of each expenditure. "Particulars" is defined as a sufficiently detailed description of expenditures as to establish 

their relationship to the campaign. For example, the transfer of funds to committee agents (walk-around money) 

requires disclosure of the ultimate payee of the funds. Only 

when a receipted bill is unavailable may the treasurer of a 

February 19

committee substitute a canceled check and some ot

document as proof of a disbursement. 

Amendment to 114.4 

Corporate and Union Disbursement 

of Registration Information 

A corporation or union may distribute to the general pub

any registration or voting information, including regis

tion-by-mail forms, which has been produced by elect

officials. 

Amendment to 134.3 

Repayment of Matching Funds 

All funds deposited into a candidate's depository are tak

into account when the repayment formula of the Ac

applied. The repayment ratio must be applied on the d

of ineligibility. 

SUNSHINE REGULATIONS PROPOSED 

On January 13, 1977, the Federal Election Commiss

submitted for publication in the Federal Register a p

posed set of "Sunshine Act" regulations governing the c

duct and recording of meetings held by the Comm

sion. Meetings must be publicly announced in advance a

conducted in open session except when the Commission

discuss alleged violations of the Act. In those instanc

meetings are automatically closed. In addition, and subj

to approval by the majority of the Commissioners, meeti

may be closed to the public when the Commission con

ders: 

-- Matters related solely to the Commission's internal p

sonnel decisions, rules and practices. 

-- Formal proceedings against a specific person or cens

of any person. 

-- Personal information, the disclosure of which wo

constitute an invasion of privacy. 

-- Confidential financial information. 

-- Information which, if prematurely disclosed, wo

adversely affect a proposed FEC action. 

Records of closed meetings must be kept in the FEC fi

for a fixed period of time. The Commission invites writ

comments on these proposed regulations. They should 

submitted to the General Counsel, Federal Election Co

mission, 1325 K Street, N.W., Washington, D.C. 204

within 30 days after their publication in the Federal Re

ter. (January 19, 1977, p. 3810.) 
ADVISORY OPINIONS: SUMMARIES 

Once the Federal Election Commission submitted its proposed regulations to Congress on August 3, 1976, it resumed issuing opinions which advise candidates; political 

committees and Federal officeholders on how to: interpret 

the Federal Election Campaign Act, as amended (the Act). 

Until Commission regulations are officially promulgated, 

the Commission will continue to issue two types of opinions: 

1. Advisory Opinions, designated as AO's, concern the 

application of the Act to specific factual situations. Any 

person requesting an advisory opinion who in good faith 

acts in accordance with the findings of the opinion will 

not be penalized under the Act. The opinion may also be 

relied upon by any other person involved in a specific 

transaction which is indistinguishable in all material 

aspects from the activity discussed in the advisory opinion. 

2. Informational Responses to Advisory Opinion Requests, 

designated as Re: AOR's, differ from AO's in that they 

are based in part on the Commission's proposed regulations and they offer no legal protection to recipients 

until the regulations on which they are based go into 

effect. 

Requests for advisory op1mons are made public in the 

Federal Register. The opinions themselves are available at 

the Commission. All the opinions issued January 1-

January 17, 1977, are summarized below. Those seeking 

guidance for their own activity should consult the:full text 

of an opinion and not rely on the synopsis given here. 

Copies of AO's and Re: AOR's are available from Public 

Records, Federal Election Commission, at a cost of 10 

cents per page. Please identify opinions by number as, for 

example, AO 1976-83 or Re: AOR 1976-98. 

Re: AOR 1976-103: Forgiving Campaign Debts Owed 

to Individuals Rendering 

Personal Services 

If a candidate has incurred a debt for a personal se

which does not count as a contribution under the Ac

person who rendered the service may forgive the debt 

out thereby making a contribution (for limitation 

poses). The candidate would, however, have to fil

explanation of the settlement." Services which do not c

as contributions include: legal or accounting services 

dered to the candidate to insure compliance with the 

volunteer services provided without compensation and 

usual and normal expense _related to the volunteer acti

and travel on behalf of a candidate, as long as the t

expenses do not exceed $500 per election. 

Re: AOR 1976-107: Use of Excess Campaign Funds 

Congressman Whitehurst may use excess campaign fun

finance a series of television programs, to be aired ove

next two years, informing constituents of factual hap

ings in Washington that may affect them directly o

directly. Any use of funds, however, would be conside

campaign expenditure if made for the purpose of influ

ing a Federal election. The Commission has no authori

comment on tax implications of such a transfer. 

AO 1976-110: Contributions from local Candidate's 

Campaign Account 

The Akaka for Congress Committee (the Committee) 

return a $500 contribution received from a local c

date's campaign account because corporate and no

porate contributions were' commingled in that accoun

a contribution made from commingled funds is consid

an indirect corporate contribution prohibited under 

Act. The Committee could, however, accept a contribu

made from a local candidate's personal funds. 

The RECORD is published by the Federal Election Commission, 1325 K Street, N.W., Washington, D.C. 20463

Commissioners are: Vernon W. Thomson,. Chairman; Thomas E. Harris, Vice-Chairman; Joan D. Aikens; William L

Springer; Neil Staebler; Robert 0. Tiernan; Francis R. Valeo, Secretary of the Senate, Ex Officio; Edmund L. Henshaw

Jr., Clerk of the House of Representatives, Ex Officio. 

For more information, call 3824733 or toll free 800424-9530. 

2 
Re': AOR 1976·111: Definition of Administrative Costs 

Incurred by Labor Organization 

and Its PAC 

The League of Voter Education (the League). the political 

action committee formed by the Laundry, Dry Cleaning 

and Dye House Workers Union (the Union), may accept 

reimbursements from the Union for legal fees the League 

paid in connection with its own formation because the fees 

are considered administrative costs. While the Union is not 

required to report such disbursements, the League must disclose the receipt of Union funds as a reimbursement for 

administrative costs. 

The costs of printing political cards supporting an individual's candidacy is not considered an administrative cost, 

regardless of whether the individual qualifies as a candidate 

under the Act or qualifies to appear on a State ballot. The 

Union could not, therefore, reimburse the League for such 

printing costs. 

Re: AO 1976·113: Follow-Up Solicitations 

by Trade Association PAC 

When the Savings Bankers Nonpartisan Political Action 

Committee (PAC) conducts its annual solicitation of offi· 

cers of member corporations over a three or four·month 

period beginning in November 1976 and extending into 

1977, it must obtain prior and specific approval from 

corporate members for the 1977 "follow-up" solicitations, 

even though it already received approval for the initial 

fundraising solicitation made in 1976. 

INFORMATION LETTERS: SUMMARIES 

Information letters, designated as 0/R's, are responses from 

the legal staff to queries from individuals who lack legal 

standing to obtain an advisory opinion. While they do not 

offer the legal protection afforded by formal advisory opinioris, they nevertheless demonstrate how the Act works in 

specific situations. Requests for the full text of a letter 

should be addressed to Information Services, Federal Election Commission. Please identify the information letter by 

number as, for example, 0/R 714. 

0/R 758: Contributions and Expenditures 

by Nonincorporated Membership Association 

Contributions made by the Association of Reserve City 

Bankers Association {the Association), a nonincorporated 

membership organization, from excess membership dues 

would constitute an indirect corporate contribution (prohibited by the Act) because some of the Association's mem· 

bers are reimbursed for their dues payments by their res· 

pective corporate employers. Since the nonincorporated 

Association is not organized primarily for the purpose of 

influencing Federal elections and its members are indivi· 

duals, rather than corporations, disbursements for internal 

communications which support or oppose specific Federal 

candidates would not constitute campaign expenditures 

and would not trigger registration requirements. If such 

costs exceed $2,000 per election, however, they must be 

reported to the Commission. 

3 

HOW TO OBTAIN COPIES OF 

CAMPAIGN FINANCE REPORTS 

Legal Requirements 

The Federal Election Campaign Act of 1971, as am

ed (the Act) requires all Federal candidates and any 

tical committee which raises or spends more than $1,

year in support of Federal candidates to file de

reports of their campaign receipts and expenditures. 

totaling more than 1.2 million pages, these reports mu

made available to the public within 48 hours after 

filed. The establishment in 1975 of a public records o

within the Federal Election Commission facilitated 

public access to the documents. Though some repor

initially filed with the Clerk of the House of Repre

tives or the Secretary of the Senate, copies of all re

and statements filed since 1972 are available to the p

at the FEC. 

Reports Available in FEC's Public Records Division 

The Public Records Division of the FEC, located o

street floor at 1325 K Street, N.W., Washington, D

open for public use weekdays from 9 a.m. to 5 p.m. H

may be expanded during reporting periods. Micr

copies of all reports are kept permanently on file. In 

tion, as space permits, Public Records maintains 

copies of current reports. 

Organization of Paper Files 

The paper files are organized in the following manner: 

1. Multicandidate Committees: Over 1 ,200 political 

mittees supporting more than one Federal candida

arranged alphabetically by name. This file includes 

committees which have qualified as "multicand

committees," as well as those which have not. A 

reference file is available to help determine the na

a particular group by its affiliation with a labor org

tion, corporation, trade association or other membe

organization. 

2. National Party Related: Files of both major and 

national party committees are arranged alph~bet

within each party. Two drawers house the fil

Republican national committees, two more hold D

cratic national committees and one drawer conta

minor national party committees. {State and local 

committees are filed under Congressional Candidate

Party Related, described in item 5 below.) 
3. Presidential Candidates Not Receiving Matching Funds: 

Arranged alphabetically, these files contain folders with 

labels on either left, ·center, or right-hand tabs. Those 

folders with left-hand labels contain the candidate's 

reports. Folders marked with a center tab hold reports 

of the candidate's principal campaign committee. Righthand tabs indicate reports filed by supporting singlecandidate committees. 

4. Presidential Candidates Receiving Matching Funds: 

These files are arranged in the same manner as item 3 

above. 

5. Congressional Candidates .and Party Related: Arranged 

by State, these files are divided into three sections. 

Senate candidates and their authorized committees come 

first, followed by House candidates and committees 

(alphabetized by district). The files of party-related committees are arranged behind the Congressional files, with 

State party committees grouped together, followed by 

local party committees. 

6. Independent Expenditures: These files are arranged 

alphabetically by the name of the individual making the 

expenditure. 

7. Communications of Corporations and Unions (Form 7): 

Reports on costs of internal communications which 

advocate the election or defeat of Federal candidates are 

alphabetized by name of reporting corporation or union. 

In addition to these campaign reports, Public Records also 

maintains reports of open FEC business, such as Advisory 

Opinion Requests, Advisory Opinions and press releases 

relating to the FEC. Documents within each file are chronologically ordered, with the most recent on top. 

Locating Documents 

The office files more than 100,000 reports, yet locating 

specific documents is easy and quick. A computer and a 

series of indexes may be used to locate microfilmed documents. Indexes are also helpful in finding the name of 

a multicandidate committee or the district of a particular 

candidate. 

If a researcher wants to find a specific contributor or 

expenditure, he must know the approximate date of the 

transaction since reports are not cumulative (except in 

terms of dollar totals). Otherwise, all reports must be 

examined. 

Using the Documents 

There is no charge for reviewing files in the Public Records 

office and any document may be copied at a cost of 10 

cents per page. The public is also welcome to obtain free 

computer printouts, though the staff must type the 

requests into the computer. Those using documents are 

reminded, however, of the Act's requirement that "any 

information copied from such reports and statements shall 

not be sold or utilized by any person for the. purpose of 

soliciting contributions or for any commercial purpose." 

2 U.S. C. Section 438(a)(4). · 

4 

Requesting Documents 

Local residents are urged to come into the office 

their own research. For those who can not come 

sonally, or who live outside the Washington area, the 

staff will respond to document requests by mail. Co

reports may be obtained by writing the Public R

Pivision, Federal Election Commission. Letters mu

tify 1) the full name of the candidate or political c

tee reporting, 2) the specific report(s) desired (e.g

terly, ten-day, pre-election, etc.), including the ye

3) the requester's address and phone number. After 

ing such a letter, the office will call the requester to t

the number of pages and cost involved. The Com

charges 10 cimts per page copied and $2.50 for ea

hour of time spent on the request, with the first ha

free. Prior to filling the request, the Commission w

a second letter with a check for the required amoun

out to the U.S. Treasurer. Requests are usually filled 

two weeks. 

The public is invited to call for information. Since 

vary enormously in length (from a postcard to a 50

document), a researcher may find it difficult to spec

documents he wants (and can afford) to examine. A 

minary phone call can often help him pinpoint his 

and thereby expedite the Commission's respons

telephone number is (202) 382-7012 or toll-free 

424-9530. 

Running Orders 

For those who use the office frequently, the C

sion will keep "running orders." Under this proced

individual makes an advance deposit, permitting 

receive copies of selected documents as soon as th

made public by the Commission. 

FEC Fl LES SUITS 

AGAINST THREE CANDIDATES 

The Federal Election Commission announced on J

17 that it has filed civil suits in three United Stat

trict Courts to compel three Federal candidates to 

with the reporting requirements of the Federal E

Campaign Act. In three separate suits involving can

for the U.S. House of Representatives, the FEC ask

District Courts to order each candidate to desi

"principal campaign committee," to file the report r

10 days prior to the November 2 general election 

two of the cases, to also file the report required 3

after the general election. In addition, the.FEC ask

courts to assess a penalty of not more than $5,000 

the candidates "for failing and refusing to comply w

Act." 
In its court complaints, the Commission stated that it had 

sent at least four notices to each candidate concerning his 

failure to comply with the requirements of the Act. Additionally, three days before the general election, the FEC 

made public the candidates' failure to file the pre-general 

election report. In the case of two of the candidates, a 

similar publication was released in connection with the 

post-general election report. ·(See, below, "FEC Lists 

Non-Filers.") 

To date, the FEC has filed a total of 17 civil suits in 

District Courts against Federal candidates failing to file 

reports. 

FEC LISTS NON-FILERS 

On January 21, 1977, the FEC published the names of 47 

House and 2 Senate candidates that failed to file the 

required post-election report of their campaign finances. 

The report was due December 2, 1976, 30 days after the 

November 2 general election. Commission publication of 

non-filers is required by law. The Commission does not 

release these names, however, until after it has sent nonfiling candidates or .their principal campaign committees 

three different notices reminding them of their reporting 

obligations and urging compliance. 

In addition to publishing the names of non-filers, the FEC 

has the authority to undertake further enforcement action 

under the statute, including civil court enforcement and 

imposition of civil fines. 

COMMISSION MAKES PUBLIC 

SOME COMPLIANCE FILES 

On December 17, 1976, the FEC made public the files of 

245 compliance cases. (Some additional 120 cases are 

pending and remain, therefore, confidential at this time. 

2 U.S.C. 437g(a)(6)(C).) Compliance cases which the 

FEC makes public fall into one of several categories: 

1. Cases closed because the Commission found it had either 

"no reason to believe" or "no reasonable cause to 

believe" the Act had been violated; 

2. Cases where the Commission entered into a conciliation 

agreement with the respondent; or 

3. Cases where the Commission, after completing an investigation but being unable to reach a conciliation agree-

-ment with the respondent, decided to either: 

a. File suit in district courts; 

b. Refer the case to the Justict Department; or 

c. Close the case. 

The "core documents" contained in each file comprise the 

complaint itself; the report of the General Counsel's office, 

setting forth the allegations, the evidence involved, a legal 

analysis of the issues and a recommendation on action to 

be taken; any Commission action sheet or Commissioner 

statement; any conciliation agreements involved in the case; 

and the close-out letters to the parties, indicating the Commission's disposition in the case. 

5 

These files are available to the public in the Public Record

Office (and, to the press, in the Press Office) of the Federa

Election Commission. To assist anyone who wishes to 

review these files, the Commission has prepared an index

which is updated regularly, listing the cases in chronologica

order and indicating their final disposition. 

FEC documents of general applicability are published 

regularly in the Federal Register. These documents include 

(but are not limited to) announcements of public hearings

proposed regulations, policy statements, edited requests fo

advisory opinions, and periodic indexes to advisory opin

ions. 

The Federal Register is available for inspection at any 

public library which is also a Federal depository or, by 

subscription, through the Superintendent of Documents

Government Printing Office, Washington, D.C. 20402

Beginning with this issue, the Record will prepare a 

monthly listing of all FEC documents published in the 

Register. The following list identifies all FEC documents 

appearing in the Federal Register between January 1 and 

January 21, 1977. 

Notice Title 

Federal Register 

Publi.cation Date 

1976-72 Advisory Opinion 1-12-77 

Requests 1976-112 · 

through 1976-115 

1976-73 Policy Statement: 1-12-77 

Application of Contribution Limits to Contributions Made After 

General Election to 

Retire Debts Incurred 

With Respect to 1976 

Electlon{s). 

1977-1 Establishment of 1-12-77 

Clearinghouse 

Advisory Committee 

1977-2 Privacy Act: OMB 1-19-77 

Grant of Waiver 

1977-3 Index of Advisory 1-21-77 

Opinions, 1975-1976 

19774 Advisory Opinion 1·19-77 

Requests 1976-116 

through 1977·1 

1977-5 Sunshine Act 1-19-77 

Regulations Proposed 

Citation 

42 FR 2624 

42 FR 2624 

42 FR 2624 

42 FR 3812 

42 FR 4040 

42 FR 3812 

42 FR 3810 
THE RECORD 

The Reoord is the official FEC newsletter, reporting each 

month on all Commission activities. Summaries of proposed 

regulations, policy statements, advisory opinions alid letters 

of information appear regularly, as well as articles acquainting readers with FEC procedures, changes in organization 

and staff, and current publications and notices. Readers are 

encouraged to maintain a file of recent issues as a handy_ 

reference to Commission activity and policy. 

1976 PUBLICATIONS 

The FEC prepares a number of informational materials free 

to the public. The following 1976 publications are available, 

upon request, from the Public Communications Office: 

1. Federal Election Campaign Laws, a compilation of laws 

pertaining to Federal elections, including the Federal 

Election Campaign Act of 1971, as amended in 1974 

and 1976. 

2. Proposed FEC Regulations, August 3, 1976. 

3. Campaign Guides, a color-coded series of six guides prepared as a reference tool to aid candidates, political 

committees, and political parties in complying with the 

Act. Designed for use by committee chairmen, treasurers 

and accountants, as well as by candidates, each guide 

focuses on a specific aspect of the law. Titles include: 

-Campaign Guide for Committees 

-Campaign Guide for Federal Candidates 

FEDERAL ELECTION COMMISSION 

1325 KSTREET, NW 

WASHINGTON, DC 20463 

OFFICIAL BUSINESS 

6 

-Campaign Guide on Contributions and Expend

-Campaign Guide for the 1976 General Elections 

-Campaign Guide for State and Subordinate 

Committees 

·-Campaign Guide on Post-Election FECA Require

The Guides are published as binder inserts to fac

their use in a reference file and the making of 

corrections as the need arises. To date, one revisi

the Campaign Guide for Committees) has been 

and sent to readers. 

4. Bookkeeping and Reporting Manual, 2nd ed

June 1976. 

5. 1975 Annual Report, a detailed description o

Federal Election Commission's activities during its 

year of operation, March 31, 1976. 

CLEARINGHOUSE PUBLICATION 

The FEC Clearinghouse has recently announced the p

cation of the Handbook of State Election Agencies 

Election Officials. The Handbook describes, on a S

by-State basis, the powers and functions of all bo

committees and offices concerned with elections. 

addition, the Handbook includes a directory, listing 

names, addresses and telephone numbers of all 

election officials. 

The Handbook may be ordered as Report Nu

PB257816AS from: 

Sales Desk 

National Technical Information Service 

5285 Port Royal Road 

Springfield, Virginia 22161 

Price: $9.00 

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