Volume 12, Numb

STATISTICS

9 1984 Presidential Primary Activity

11 INDEX

PUBIJCATIONS

10 Order Information

COURT CASES

6 FEC v. NCPAC (Third Suit)

7 FEC v. NCC

7 FEC v. Dramesi for Congress

8 New Litigation

COMPLIANCE

8 Nonfiler Published

AO 1986-12: Excess Funds Transferred from 

mer Representative's 1984 H

Campaign to Retire Debts of 

1986 Exploratory Committee

Former Congresswoman Geraldine Ferraro 

use some excess campaign funds of her 

House campaign, the Ferraro for Congress 

Committee (the 1984 Committee), to defray 

penses of an unregistered committee she e

lished to test the waters for a potential 

Senate candidacy in New York, the Ferrar

Exploratory Committee (the Exploratory Com

tee). Ms. Ferraro may transfer any funds con

conti

TABLE OF CONTENTS

INFORMATION

1 FEC lnformation Costs Reduced

By Computer Contract

1 ADVISORY OPINIONS

800 LINES

3 Using FEC Information

4 Local and State Officeholders

Become Federal Candidates

5 Candidate Use of Loans and Assets

FEDERAL ELECTION COMMISSION

July 1986 999 E Street NW Washington DC 20463

COSTS OF FEC INFORMATION REDUCED

BY NEW COMPUTER CONTRACT

The FEC recently approved a six-year computer contract with the Digital Equipment Corporation, which will provide the agency with more

services at reduced costs. (The new contract will

reduce the FEC's monthly costs for computer

services from $50,000 to $42,753.) As a result,

when the computer system becomes operational

this fall, the agency will be able to improve its

information services. For example, the new computer system will:

o Reduce the time required to retrieve information for the public and the press, thus allowing

the agency to handle more information requests

on an overnight basis;

o Expand the storage capacity, permitting the

agency to eventually restore financial information from the 1978, 1980 and 1982 election

cycles to the data base. (The agency had removed this information from the data base

earlier this year because of budget cuts resulting from the Gramm-Rudman-Hollings Deficit

Reduction Act.); and

o Reduce the fee for using the FEC's Direct

Access Program from $50 to approximately $22

per hour, While increasing access to the program. (The Direct Access Program is an on-line

computer information system specifically designed for individuals with personal computers.

The program's capabilities are summarized on

page 5 of the March 1986 Record.)

The agency noted that, during the transition

to the new computer system this fall, there should

be no interruption in computer-based information

services to the public.
Ju~ 1986 FEDERAL ELECTION COMMISSION

ing of contributions to her 1984 primary campaign

for the House seat. On the other hand, since she

was not a candidate for the 1984 general election,

she may not transfer those funds which consist of:

1) contributions designated for her 1984 general

election campaign for the House seat; or 2) undesignated contributions received after the July 26,

1984, deadline for obtaining ballot access for the

New York primary. Instead, these contributions

must be refunded to the contributors. 11 CFR

11O.1(a).

The 1984 Committee reported all of its contributions as general election receipts because, in

the com rnittee's view, this accurately reflected

the fact that Ms. Ferraro was unopposed in the

primary election for the House seat. Under FEC

Regulations, however, even if a candidate is unopposed in a primary, a separate contribution limit

applies for the primary election. 11 CF R

110.10)(2) and (3). Accordingly, any undesignated

contributions the 1984 Committee received by

July 26, 1984, the filing deadline for the primary,

constituted contributions to Ms. Ferraro's 1984

primary campaign. (The Commission noted that,

since Ms. Ferraro did not file for the House

primary, she was no longer a candidate once the

filing date had expired.) .

The Act provides that candidates may use

excess funds of such campaigns for any "lawful

purpose." 2 U.S.C. §439a. (The law prohibits candidates from converting these excess campaign

funds to personal use, but this prohibition does not

apply to individuals, such as former Congresswoman Ferraro, who were members of Congress

on January 8, 1980.)

By contrast, any contributions designated for

her 1984 general election campaign for the House

seat and any undesignated contributions received

after the July 26, 1984, filing deadline for the

primary could not be transferred to the Exploratory Committee because contributions made to a

candidate for an election in which he or she does

not participate must be refunded to the contributors. See AOs 1980-122, 1982-49 and 1985-41.

After JUly 26, Ms. Ferraro was not a candidate

with respect to either. the 1984 primary or the

general election; nor did she become a House

candidate for 1986. Moreover, Ms. Ferraro did not

reconstitute the 1984 Committee for some other

political purpose; nor did she inform donors (or

request their authorization) of some alternate

disposition of these funds. Commissioner Thomas

J. Josefiak filed a concurring opinion. (Date

issued: May 12, 1986; Length: 4 pages, including

concurrence.)

2

\blume 12, Number?

AO 1986-13: Eligibility of Trade Association's

Corporate Members and State Asso

ciations to Finance PAC Expenses

The National Tire Dealers and Retreaders Associ

ation Political Action Committee (TIRE PAC)

the separate segregated fund of the National Tire

Dealers and Retreaders Association (NTDRA), a

trade association, may accept solicited and unso

licited donations to its administrative accoun

from: a) corporate members of NTDRAts Supplier

Group; and b) 35 state and regional tire dealer

and retreaders associations affiliated with

NTDRA. TIRE PAC plans to establish a separate

account to be used solely to defray its establish

ment, administration and fundraising costs.

Supplier Group Donations

A corporate member of a trade association

may donate funds or merchandise to defray the

costs of establishing, administering and soliciting

funds to the trade association's separate segre

gated fund, provided the corporate donor qualifies

as a "member" of the trade association under the

Act and FEC Regulations.

The corporations belonging to NTDRA's Sup

plier Group meet the membership requirements

as defined in the law and clarified by the courts

and FEC advisory opinions." Therefore, they are

eligible to donate funds for TIRE PACls adminis

trative expenses and prizes for its fundraisers

The Supplier Group members participate in governing NTDRA by voting for their own representatives on NTDRA's Board of Directors. Moreover, Supplier Group members pay regular dues of

a predetermined, minimum amount.

State and Regional Association Donations

In previous advisory opinions, the Commission

has also permitted a membership organization to

accept donations from affiliated organizations

and local units to defray the administration and

fundraising expenses of its PAC. See AO 1983-46.

The 35 state and regional organizations with

which NTDRA has entered into "agreements of

affiliation" meet the affiliation criteria under the

election law. 11 CFR 100.5(g)(2)(i)(D) and

1l0.3(a)(l)(ii)(D). Specifically, NTDRA's agreements of affiliation recognize a formal relationship between NTDRA and each state or regional

association. Each agreement provides for mutual

support and coordination of activities to promote

common interests. (Date issued: May 9, 1986

Length: 5 pages)

... Members are defined as those entities which

have governing rights within the organization and

an obligation to pay regular dues. See 11 CFR

114.1(e) and AO 1984-33.
3

The Record is published by the Federal Election Commission, 999 E Street, N. W., Washington

D.C. 20463. Commissioners are: Joan D. Aikens, Chairman; John Warren McGarry, Vice Chairman

Lee Ann Elliott; Danny Lee McDonald; Thomas E. Harris; Thomas J. Josefiak; Jo-Anne L. Coe

Secretary of the Senate, Ex Officio; Benjamin J. Guthrie, Clerk of the House of Representatives

Ex Officio. For more information, call 202/376-3120 or toll-free 800/424-9530.

FEDERAL ELECTION COMMISSION Volume 12, Num

May the information contained in the rep

filed by political committees be used to so

contributions (either political or charitable) f

individuals? No. The law prohibits such us

order to protect the privacy of individual co

butors. This prohibition on use of FEC informa

specifically applies to the names and addresse

individual contributors listed on FEC reports.

8(J(l"lINE

contin

Use of Information in Reports

The Federal Election Ca rnpaign Act st

that: rr•••any information copied from.•.report

statements may not be sold or used by any pe

for the purpose of soliciting contributions or 

commercial purposes, other than using the n

and address of any political committee to so

contributions from such committee." 2 U.

§438(a){4).

In a series of requests for advisory opini

the Com mission has been asked to interpret 

provision of the law. The following questions 

answers summarize how the Commission has 

plied this provision to specific, factual situatio

May the information about PACs be used 

commercial purposes or for soliciting contr

tions Crom political committees? The FEC st

in an advisory opinion that the names 

addresses of political action com mittees {PA

could be used for com mercial or solicitation 

poses. Individual contributor information, h

ever, could not be used. AO 1980-101.

Maya newspaper or magazine publish 

information contained in the reports? Informa

from FEC records may be used in newspap

magazines, books or other similar communicat

provided that lithe principal purpose of such c

munications is not to communicate any contr

tor information listed on such reports for 

purpose of soliciting contributions or for o

commercial purposes," II CFR 104.15(c). See 

1981-38.

USING INFORMATION CONTAINED IN

REPORTS FILED BY COMMITTEES

1986-20 Campaign's purchase and distribu tion of

promotion item to public. (Date made

public: June 11, 1986; Length: 1 page,

plus 3-page supplement)

1986-21 Reporting requirements for unopposed

party convention candidate. (Date made

public: June 11, 1986; Length: 1 page)

1986-18 Maintaining campaign funds in cash management account established by brokerage firm. (Date made public: May 23,

1986; Length: 1 page)

1986-16 Excessive contribution used to liquidate

primary debts of unsuccessful candidate.

(Date made publici May 22, 1986;

Length: 2 pages)

1986-17 Designation of Senate candidate by state

party committee as an "election" for

purposes of contribution limits; raising

and spending general election funds prior

to primary. {Date made publici May 22,

1986; Length: 2 pages, plus 3-page supplement}

1986-19 Primary contribution limit for Senate

candidates in states with no primaries;

Act's preemption of state laws for purposes of establishing this limit. (Date

made publics May 30, 1986; Length: 3

pages)

AOR Subject

ADVISORY OPINION REQUESTS

The following chart lists recent requests for

advisory opinions (AORs). The full text of each

AOR is available to the public in the Commission's Office of Public Records.

,Ju~ 1986

•
Ju~ 1986 FEDERAL ELECTION COMMISSION

Maya candidate use the names and addresses

of individual contributors to his opponent or to

other candidates or committees to solicit contributions? No. In AO 1981-5, however, the Commission said that a candidate could use his opponent's

list of contributors to send them letters with an

explanation of his views, but that the letters

could not carry a solicitation.

May an individual use FEC contributor information to verify the names of individual contributors contained on a list intended to be used for

commercial purposes? No. By using FEC information to purge individual contributors from an

existing list of contributors or to otherwise identify contributors, an individual would be increasing the com mercial value of the list, thereby

violating Section 438(a)(4)'s ban on commercial

use of contributor information. See AO 1985-16.

Use Of Pseudonyms

How can a political committee be sure that

no one is using the information it reports to

solicit its individual contributors? A committee

can determine whether the names and addresses

of its contributors are being used illegally by

"salting" the reports it files under the Act. The

law permits a committee to include on its reports

ten fictitious names (referred to under the law as

pseudonyms) and addresses.

If a committee learns that a solicitation has

been sent to anyone of the fictitious names listed

on its report, the committee will know that

someone has misused the committee's report.

Should this occur, the committee may file a complaint with the FEC. The use of pseudonyms

enables the committee to protect the privacy of

its individual contributors.

In disclosing fictitious contributors on a report, how maya committee avoid inflating the

figure reported for total contributions? One way

to be sure that the total amount of contributions

remains unaltered and accurate is to take a

portion of the subtotal for unitemized contributions and allocate it, as fictitious itemized contributions, among several fictitious individual

contributors. Each of these fictitious individual

contributions would be itemized on a Schedule A.

(The committee could assign each fictitious contributor the address of a staffer on the committee, thereby enabling the com mittee to learn

quickly about any illegal solicitations.)

If a committee uses pseudonyms, should it report them to the FEC? Yes. A political committee should send its list of pseudonyms, under

separate cover, to the Reports Analysis Division,

Federal Election Commission, Washington, D.C.

20463. The list will be maintained only by the

4

Volume 12, Numoo-7

Commission and will not become part of the

public record. A com mittee should not send any

list of pseudonyms to the Clerk of the House, the

Secretary of the Senate or a State's Secretary o

State.

LOCAL AND STATE OFFICEHOLDERS

WHO BECOME FEDERAL CANDIDATES

In recen t months, the Com mission has re

ceived questions from state and local office

holders who are seeking federal office for the

first time. They have wanted to know how the

federal election law differs from the election

laws in their states. The following questions and

answers deal with some of the issues they have

raised.

What is the main difference between running

for federal office and running for state or loca

office? Candidates for federal office may no

accept contributions from the treasury funds o

corporations or labor organizations.*

What types of organizations fall under the

prohibition on corporate funds? Under the federa

law, the ban on corporate contributions applies to

treasury funds of the following organizations:

o Corporations with capital stock

o Corporations without capital stock

o Nonprofit corporations

o Incorporated membership organizations

o Incorporated trade associations

o Incorporated cooperatives

Are there any other prohibitions? Yes. Can

didates for federal office may not accept:

o Contributions from persons who have contracts

with the federal government

o Cash contributions over $100

o Contributions made in the name of another

person.

Moreover, candidates for federal office may not

accept contributions from national banks or foreign nationals. These two prohibitions also apply

to candidates for state and local office.

What other important differences exist be

tween running for federal office and running for

state or local office? Contributions to federa

candidates are subject to the election law's dollar

limits. $lit Moreover, federal candidates and their

*Although the Act places no such limits on

contributions made solely in connection with state

and local elections, some states have adopted

similar restrictions.

**The contribution limits may be summarized

as follows: individuals - $1,000 per candidate, pe

election; political committees - $1,000 per candi

date, per election; multicandidate committees 

$5,000 per candidate, per election.
July 1986 FEDERAL ELECTION COMMISSION

authorized campaign committees have certain

registration and reporting obligations under the

election law.* See 11 CFR Parts 101, 102 and

104.

What happens when both state and federal

laws pertain to the same election activity? When

a federal candidate's campaign activity is governed by both the Act and state law, the Act and

Commission Regulations supersede the provisions

of state law. 2 U.S.C. §453; 11 CFR 108.7(a) and

(b). Commission Regulations specify that the Act

supersedes state laws with regard to:

o The organization and registration of political

com mittees supporting federal candidates;

o Disclosure of receipts and expenditures by federal candidates and political committees (including disclosure of information on campaign

advertising); and

o Limits on contributions received, and expenditures made, by federal candidates and political

committees.

May a federal candidate accept contributions

from a group that is not registered with the FEC,

such as a state or local political committee? Yes,

provided the unregistered political group's contribution consists of permissible funds (i.e., funds

which comply with the election law's contribution

limits and prohibitions).

How would a candidate know whether such a

contribution was from permissible funds! The

candidate's com mit tee should ask. The unregistered political group should be able to demonstrate

that its contribution came from permissible funds,

either by:

o Having established a separate account containing only those funds which comply with the

limits and prohibitions of the Act; or

o Demonstrating through a reasonable accounting

method that, at the time it made the contribution, the group had received sufficient funds

that were permissible under the Act to make

the contribution. 11 CFR 102.5(b).

Could an unregistered political group's contributions to a federal candidate trigger a registration requirement? Yes. However, the registration requirement depends on the type of political

donor:

o An unregistered political group sponsored by a

corporation or a labor organization becomes a

political committee under the Act when it

*An individual becomes Q candidate for federal office (and thus triggers the Act's registration and reporting requirements) when his or her

campaign exceeds $5,000 in either contributions

or expenditures. 11 CFR 100.3(a).

5

Volume 12, Numo

makes contributions of any amount in con

tion with federal elec tions;*

o Any other type of unregistered political g

becomes a political committee under the 

when the group contributes more than $1,0

a given calendar year to candidates for fe

office.

Once it becomes a political committee 

the Act, a political group must register with 

FEC within 10 days, file periodic reports 

otherwise comply with the election law.

How long would the political group 

registered under the Act) have to keep repor

The political group could use its very first r

as its final report if it wished merely to dis

its contributions to a particular candidate 

then cease to be active in federal elections

treasurer would check the box on the repo

form to indicate that the report was a term

tion report.

May a federal candidate finance his/her 

paign with funds originally dona ted to the c

date's campaign for state office? Yes, somet

Under certain circumstances, funds may be t

ferred from the candidate's state campaig

his/her federal campaign. The conditions for 

transfers are spelled out in an 800 Line ar

published in the January 1986 Record, pages 8

Note that, if the candidate's state cam

transfers more than $1,000 in a given cal

year to the candidate's federal campaign

state campaign becomes a political comm

under the Act.

CANDIDATE USE OF LOANS AND

PERSONAL ASSETS

If a candidate obtains a bank loan for hi

campaign by using personal assets as colla

for the loan (e.g., the candidate's house), 

should the loan be reported? The candidate's 

cipal campaign committee should report the 

as the original source of the loan and the c

date as the intermediary. This information 

be reported on Schedule C of Form 3. The 

should not be reported as the candidate's per

funds donated or loaned to the campaign.

Must a candidate repeet campaign 

obtained from a bank before he/she becam

candidate? Yes. If a campaign loan is outsta

conti

"Political groups sponsored by corpora

and labor organizations have two registration 

reporting options. See AD 1982-46, summa

on page 4 of the September 1982 Record.
Juty1986 FEDERAL ELECTION COMMISSION Volume 12, Numoo- 7

at the time an individual becomes a candidate,

the candidate's principal campaign committee

should report it as an outstanding loan owed to

the bank by the committee.* Even if the

indiv.idual pa.id off the loan before becoming a

candidate, his/her com mittee must still disclose

the repaid loan on its first FEC report.

. M!-y 8 candidate use assets jointly owned

With h~/her spouse as collateral for obtaining 8

campaagn loan from a bank? Yes. A candidate's

spouse will not be considered a contributor to the

campaign, provided the candidate's share of assets

(used as collateral) equals or exceeds the amount

of the campaign loan. Moreover, if required to do

so by bank, a candidate's spouse may cosign a

campaign loan whether or not the loan is secured

by joint assets. 11 CFR lOO.7(a}(I)(i)(D) and

11O.10(b)(3).

It a candidate obtains a campaign loan from a

bank by using hisfher certificate of deposit as

collateral, how should this transaction be reported? The candidate's principal campaign committee should follow the same reporting procedures

for a loan secured by a candidate's certificate of

deposit that it follows for other campaign loans

obtained by the candidate from a bank. See above.

It a candidate cashes in his/her certificate of

deposit and loans the funds to the campaign, how

should the funds be reported? The funds are

considered a loan made by the candidate from

personal funds to his/her campaign. As such, the

funds must be reported by the candidate's campaign on Schedule C of Form 3 until: I} the

campaign liquidates the loan or 2) the candidate

forgives the loan.

It a candidate donates personal funds to

his/her campaign, how should this transaction be

reported? Personal funds which the candidate

donates to his/her campaign are considered a

campaign contribution. The funds are not subject

to the Act's contribution limits but must, nevertheless, be reported on the Detailed Sum mary

Page of Form 3. If the candidate donates more

than $200 during the year, the funds must also be

itemized on Schedule A of the form.

ItAny campaign loan exceeding $5,000 would

trigger an individualts candidacy wtder the Act. 11

CFR 100.3(a).

6

FEC v. NCPAC (Third Suit)

On May 16, 1986, the U. S. District Court for

the Southern District of New York granted the

FE~'S motion for summary [udgrnent in FEC v

NatIOnal Conservative Political Action Committee (NCPAC). (Civil Action No. 84 Civ. 0866

(GLG» The court ruled that expenditures made by

NCPAC in its campaign to defeat Senator Moynihan's 1982 reelection effort constituted excessive

in-kind contributions to Bruce Caputo. The Court

found that NCPAC had further violated the election law by failing to properly report these

expenditures as "in-kind" contributions. Accordingly, on June 13, 1986, the court imposed a

$15,000 civil penalty on NCPAC and ordered the

PAC to file amended reports with the FEC within

30 days of the court's order.

Background

. During the 1981-B2 election cycle, as part of

Its strategy to defeat Senator Moynihan NCPAC

established a political action committ~e "New

Yorkers Fed Up with Moynihan." NCPA'C also

hired Arthur J. Finkelstein Associates, a polling

and political consulting firm, to: develop a media

stra tegy advocating Senator Moynihan's defeat

conduct and analyze polls; and select election

issues on which Senator Moynihan was most vulnerable. From April 1981 until August 1982

NCPAC spent $73,755 on its anti-Moynihan campaign. During this time, the Finkelstein firm also

worked for Bruce Caputo's campaign.

In March 1981, Mr. Caputo announced that he

would seek the Republican Party's nomination for

Mr. Moynihan's Senate seat, and he retained Mr

Finkelstein as a paid political consultant. By

March 1982, when Mr. Caputo withdrew from the

Senate race, his campaign committee had paid

Mr. Finkelstein's firm $28,000 to assist in all

aspects of Mr. Caputo's Senatorial primary campaign,

In January 1982, the FEC received a complaint from the New York State Democratic Committee alleging that independent expenditures reported by NCPAC for its anti-Moynihan campaign

were actually in-kind contributions to the Caputo

campaign. In September 1983, the FEC found

probable cause to believe that NCPAC's expenditures were, in fact, contributlons. NCPAC had

therefore exceeded the election law's contribution

limits and had violated the disclosure requirements. After failing to reach a conciliation agreement with the respondent, the FEC filed suit

against NCPAC on February 6, 1984.

NCPAC did not deny that, on its face the

election law limits the amount of such contribu-
Juty1986 FEDERAL ELECTION COMMISSION

tions. NCPAC claimed, however, that, in making

the expenditures, it had relied in good faith on an

FEC advisory opinion issued to the PAC in March

1980. (The advisory opinion, AO 1979-80, was

summarized on page 4 of the April 1980 Reeord.)

The Court's Ruling

The district court concluded that NCPAC

could not rely on the FEC's advisory opinion

because "the distinctions between the facts as

they actually unfolded and the facts addressed in

the FEC's advisory opinion are patent." The court

found that Moynihan and Caputo were "for all

practical purposes, opponents" during the primary

season. The court also noted that the Finkelstein

firm's role in both "the NCPAC and Caputo efforts was far more significant than that of a

vendor of advertising services or a polling company. Finkelstein was NCPAC's key strategist. He

formulated and directed the execution of

NCPAC's plan to defeat Senator Moynihan....Simultaneously, he served as the chief architect of

Bruce Caputo's campaign," The court concluded

that NCPAC's coordination with the Caputo campaign "far exceeded the 'communication' sanctioned by the FEC" in its advisory opinion. Under

these circumstances, the court concluded that

"NCPAC's anti-Moynihan expenditures must be

deemed contributions to the Caputo campaign"

rather than independent expenditures.

FEC v. NATIONAL CONGRESSIONAL CLUB

On May 15, 1986, the U.S. District Court for

the Eastern District of North Carolina issued a

consent order agreed to by the Federal Election

Commission and three defendants: the National

Congressional Club (NCC), a multicandidate political committee; NCC's treasurer, R.E. Carter

Wrenn; and Jefferson Marketing, Inc. (JMI), a

North Carolina corporation that provides media

services to political com mittees, Plaintiff and

defendants agreed that:

o Since NCC and JMI had operated as a single

entity,* NCC and its treasurer, R.E. Carter

Wrenn, had violated section 434 of the election

law by failing to report JMI's financial activity;

and

o Within 30 days of the court's order, defendants

would pay a $10,000 civil penalty to the U.S.

Treasury for these violations.

Futhermore, defendants no longer contested the

FEC's allegation that JMI had violated section

441b of the election law by charging less than the

fair market value for services JMI had provided to

federal candidates.

*Evidence noted in the consent order for defendants' operation as a single entity included:

JMJls financial dependence on NCC, NCC's control over JMJls voting stock and Mr. Wrenn's

involvement in JMJls decision-making process.

7

\blume 12, Nuniter7

In the order, defendants also agreed to estab

lish themselves as separate entities, despite thei

contention that they had already done so in 1983

In this regard, the following changes would b

made:

o Thomas Ellis and R.E. Carter Wrenn woul

resign as directors of the Educational Suppor

Foundation, Inc., JMl's sole shareholder;

o JMI would liquidate its outstanding debt t

NCC within 12 months of the date of th

consent order;

o Employees who began working for NCC afte

the date of the consent order, and who wer

later employed by JMI, would not be credite

with benefits and seniority accrued during thei

employment by NCC; and

o As long as he remained an NCC officer, R.E

Carter Wrenn would not act as JMl's director

officer or employee.

After NCC and JMI have made thes

changes, they will be considered separate entities

However, the FEC reserved the right to file suit

and claims against JMI if JMI fails to charge th

fair market value for services the organizatio

provides to federal political com mittees and can

didates.

Within 90 days of the consent order, NCC

agreed to amend its FEC reports to disclose JMl

financial activity with regard to federal election

during the period from December 1978 to th

present.

The suit grew out of an administrative com

plaint filed by Congressman Charles Rose. In tha

case, the Commission found probable cause t

believe respondents had violated the law; yet, i

failed to resolve the matter through conciliation

Thus, on February 7, 1985, the agency filed suit.

FEC v. DRAMESI FOR CONGRESS

On May 2, 1986, the U.S. District Court fo

the District of New Jersey granted the Commis

sion's motion for a default judgment against de

fendant, John A. Dramesi for Congress Commit

tee (the Com mittee), the principal campaign com

mittee for Mr. Drarnesi's 1982 House campaign

The court imposed a $5,000 civil penalty on th

Committee for accepting excessive contributions

In a suit filed against the Committee o

August 6, 1985 (FEC v. John A. Dramesi fo

Congress, Civil Action No. 85-4039), the FEC

asked the court to declare that the Committe

and its treasurer, Russell E. Paul, had violate

section 441a(f) of the election law by: I) accept

ing an excessive contribution from the New J er

sey Republican State Com mittee; and 2) failing t

refund the excessive portion of the contributio

(i.e., $4,000) to the state party committee. See 

U.S.C. §441a(f) and 11 CFR 103.3(b)(l) and (2). A

the time the state party committee made th

continue
8

Political Committees

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

a registered committee must, by law, be made in writing as an amendment to FEC Form 1

(Statement of Organization) and filed with the Clerk of the Bouse, the Secretary of the Senate, or

the FEC, as appropriate.

Volume 12, Numb

FEC PUBLISHES NONFILERS

In June, the Com mission published the n

of a Senate campaign in California that had fa

to file its pre-primary report for the state's J

3 Congressional primary. Due by May 22, or 

May 19 if sent by registered mail, the re

should have covered activity from April 1 thro

May 14, 1986.

The election law requries the agency to p

lish the names of nonfiling candidates. Com

ance actions against non filers are decided o

case-by-case basis. The law gives the Com mis

broad authority to initiate enforcement act

resulting from infractions of the law, inclu

civil court enforcement and imposition of 

penalties.

FEDERAL ELECTION COMMISSION

$5,000 contribution, it had not achieved rnulticandidate committee status and was, therefore, only

eligible to make a $1,000 contribution to the

Committee.

July 1986

NEWLITIGATION

FEC v. Rodriguez

The FEC asks the district court to declare

that, during 1980, Cesar Rodriguez violated section 44lf of the election law by accepting contributions for the Carter/Mondale Presidential Committee which were made by one person in the

names of other persons. Specifically, on behalf of

Allen Wolfson, Mr. Rodriguez solicited contributions to the Carter/Mondale Presidential Committee and subsequently reimbursed each contributor

for his/her contribution.

The FEC further asks the court to:

o Assess a civil penalty against Mr. Rodriguez

amounting to the greater of $5,000 or 100

percent of the amount involved in the violation;

and

o Permanently enjoin defendants from further

violations of the election law.

U.S. District Court for the Middle District of

Florida, Civil Action No. 86-687-CIV.T-IO.

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July 1986 FEDERAL ELECTION COrvlMISSION \blume 12, Numrer 

34.9

$62.8

1.3

6.0

$105.

1.4

0.9

30.9

1983-84

o Individual Contribution

D Federal MatChing Fund

PAC Contributions

II Other Receipts* *

tables in the Report provide a detailed breakdow

of the receipts and expenditures for each of th

14 Presidential primary campaigns.

Although focused on Presidential primar

activity, the Report also includes information o

total independent spending and partisan communi

cations made with respect to Presidential primar

and general election campaigns during the 1983

84 election cycle.

The chart below depicts the funding source

for Presidential primary campaigns over thre

election cycles. For a breakdown of fundin

sources for each 1984 Presidential primary candi

date, see page 4 of the Special Statistical Supple

ment to the FEC Record, issued in March 1986.

The FEe Reports on Financial Activity

1983-84, Final Report: Presidential Pre-Nomina

tion Campaigns is available at $1.00 per copy

from the FEe's Public Records Office, 999 

Street, N.W., Washington, D.C. 20463 or by call

ing: 376-3140 locally or, toll free, 800/424-9530.

1979-80

0.8

0.3

24.3

$42.5

1975-76

RECEIPTS* OF

PRESIDENTIAL PRIMARY CANDIDATES

-Includes total receipts minus transfers between each candidate's authorized committees, contribu

tion refunds, loan repayments and offsets to expenditures.

9

FINAL REPORT ON 1984 PRESIDENTIAL

PRIMARY ACTIVITY RELEASED

During June, the FEC released its final report on the financial activity of 1984 Presidential

primary campaigns. The FEC Reports on Financial

Activity, 1983-84, Final Report: Presidential

Pre-Nomination Campaigns examines 14 Presidential primary candidates who each spent more

than $100,000 seeking the nomination of his or her

respective party. Unlike previous Reports, which

covered Presidential primary activity only

through the election year, this final Report includes approximately $4 million of activity reported by Presidential campaigns well after the

conventions (in 1985). A variety of charts and

- - For the 1983-84 election cycle, this category consists largely of loans which the candidates

authorized committees have not yet repaid.
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FEDERALELECTION CONIMISSION \bIume 12, Numta" 

9/4 University of Utah

Division of Continuing Education

Washington, D. C.

Chairman Joan D. Aikens

9/ll Texas Medical Education

R.esearch Foundation

Austin, Texas

Com missioner Lee Ann Elliott

7/28 American Bankers Association

Washington, D.C.

Vice Chairman John McGarry

PUBLIC APPEARANCES

COURT CASES

Antosh v• FEC, 3:8; 6:8

Alwin E. Hopfmann v, FEC, 6:9

FEC v. American International Demograph

Services, Inc., 4:8

FEC v, Beatty for Congress Committee, 6:9

FEC v. Californians for Democratic Represe

tation, 3:8

FEC v. Jimmy Carter Committee for a Great

America, 6:10

FEC v. Citizens Party, 3:8

FEC v, Eldredge, 1:10

FEC v. Haley, 1:11

FEC v, Maggin for Congress, 5:4

FEC v, MAPAC, 1: 10

FEC v. New Republican Victory Fund, 6:10

FEC v, NRA, 1:11

FEC v. Pryor for Congress Committee, 5:5

FEC v. Rhoads for Congress Committee, 6:9

FEC v. Sailors' Union of the Pacific Fund, 2:3

FEC v. Wolfson, 4:8

FEC v: 1984 Victory Fund (Second Suit), 6: 10

Gramm v. FEC; FEC v, Gramm, 1:10

Alwin Hopfman v. FEC, 2:3

800 LINE

Designating a principal campaign committe

3:5

Transfer of candidate funds from state to fe

eral committee, 1:8

11

"INDEX. ,..

This cumulative index lists advisory opinions,

court cases and 800 Line articles published in the

Record during 1986. The first number in the

citation refers to the "number" (month) of the

Record issue; the second number, following the

colon, indicates the page number in that issue.

OPINIONS

1985-26: Corporation's distribution of employee's political message, 1:7

1985-31: Affiliation between insurance corporation and agencies for purposes of PAC solicitations, 2:2

1985-32: Proceeds of reception beyond Act's

purview, .1:7

1985-33: Personal loans to candidate for campaign, 1:7

1985-34: Nonconnected PAC's use of proceeds

from life insurance policy, 1:8

1985-35: Solicitability of corporate board members, 1:8

1985-37: Affiliation of local Chambers of Commerce with State Chamber, 3:1

1985-38: Committee established by candidate

for state and local candidates, 3:2

1985-39: Bank ad in political journal, 2:2

1985-40: PAC's spending for Presidential

testing-the-waters activities, 3:2

1985-41: Contribution for general election accepted prior to primary, 2:3

1985-42: Campaign funds used to pay candidate's rent, 3:4

1986-1: Vendor's offer to provide free tickets to

committee, 4:6

1986-2: Candidate's sales campaign, 4:6

1986-4: Corporation's program to encourage

employee contributions, 4:6

1986-5: Excess campaign funds transferred

from candidate's federal to local committee,

4:7

1986-6: PAC established by Vice President for

party building and candidate support, 5:2

1986-7: Cooperative PAC's shareholder solicitation program, 4:7

1986-8: 1982 contributions refunded by candidate's 1986 campaign, 6:7

1986-9: Candidate's use of 1986 campaign funds

to reimburse himself for legal expenses, 6:7

1986-11: Act's pree mption of state election

law, 6:8

1986-14: Proceeds from sale of committee's

campaign van, 6:8

July 1986
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