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THE FEDERAL ELECTION 

COMMISSION 

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

Volume 5, Number 7 

NEW OFFICERS ELECTED 

On May 17, 1979, the Federal Election Commission 

unanimously elected Vice Chairman Robert 0. Tiernan as 

its new Chairman and Commissioner Max L. Friedersdorf 

as its new Vice Chairman. The new officers began their 

one·year terms of office on May 21, 1979. 

The Federal Election Campaign Act permits Commissioners 

to serve as Chairman only once during their six4 year terms. 

The Act also limits the Chairman's and Vice Chairman's 

term of office to one year, and requires that both officers 

be affiliated with different political parties. Previous 

Chairmen were Thomas B. Curtis (1975·76). Vernon W. 

Thomson (1976·77), Thomas E. Harris (1977·78) and Joan 

D. Aikens (1978·79). 

Prior to Chairman Tiernan's appointment to the Commission in 1975, he served as a Democratic Member of Con· 

gress from Rhode Island for eight years. He had previously 

served as a State legislator for seven years. An attorney, 

Chairman Tiernan graduated from Providence College and 

Catholic University Law School and has been admitted to 

practice in all Federal courts, the State of Rhode Island and 

the District of Columbia. He has also held various national 

and State party positions. Chairman Tiernan was one of the 

six original Commissioners appointed by President Gerald 

Ford in 1975. 

Vice Chairman Friedersdorf was appointed to the Commis· 

sion in March 1979. A native of Indiana, he graduated from 

Franklin College and earned an M.A. from American 

University in 1970. The new Vice Chairman was a reporter 

and editor with the Indianapolis News, the Louisville Times 

and the Franklin Evening Star between 1952 and 1960. 

From 1961 to 1970, he served as administrative assistant 

and press secretary for former Congressman Richard L. 

Roudebush (R.·Ind.). From 1971 to 1977, the Vice Chair· 

man served in the White House and acted as Deputy Assist· 

ant to President Nixon, and Assistant to President Ford. 

From 1977 until his appointment to the Commission, Vice 

Chairman Friedersdorf was Staff Director of the Senate 

Republican Policy Committee. 

July 1979 

SECOND QUARTER REPORT 

All candidates for Federal office (except those who have 

received a personal reporting waiver) who are not on the 

ballot during this calendar year and all of their authorized 

committees must file a quarterly report by July 10, 1979

if: the candidate and the committees together received 

contributions and made expenditures exceeding $5,000 

during the period from April 1, 1979, through June 30

1979. (Receipts arid expenditures include debts incurred 

and debts extinguished or forgiven.) All other politica

committees (except monthly filers) must file the quarterly 

report if either receipts or' expenditures (including debt

incurred and debts extinguished or forgiven) exceeded 

$1,000 during this period. 

Candidates and committees must use one of the following 

forms: 

Form 3a: Candidates and committees whose financia

activity for the quarter did not exceed th

reporting thresholds must file the postcard 

form (FEC Form 3) or a letter with the same 

information. Hovyever, those candidates and 

committees who filed a postcard for the Apri

1 0 quarterly report and who did not exceed th

reporting threshold during the second quarte

need not file another postcard. 

Form 3P: Presidential candidates and their committee

whose financial activity exceeded the reporting 

thresholds must file their report on Form 3P 

(with supporting schedules). 

Form 3: All other candidates and committees whos

financial activity exceeded the reporting thresh

olds should file their report on Form 3 (with 

supporting schedules). 

The quarterly report is due on or before July 10,1979. Th

report must include all reportable transactions occurrin

from April 1, 1979, through June 30, 1979, or from th

date of registration (if after April 1) through June 30
1979. If a 3a postcard was filed for the April 10 quarterly 

report, the July 10 quarterly report must disclose all 

reportable transactions occurring between January 1, 1979, 

and June 30, 1979, Political committees filing on a 

monthly basis need not file the quarterly reports, but must 

file reports by the 20th of each month covering all transactions for the previous month. 

The report should be filed with the Clerk of the House, 

the Secretary of the Senate or the Federal Election Commission, as appropriate. A notice containing additional 

information, as well as forms, has been sent to all registered 

candidates and committees. 

Filers must submit legible reports which can be reproduced 

clearly; candidates or committees who file illegible or 

barely legible reports will be required to refile. Questions 

about the notices 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. 

YEAR-END REPORTS 

INCORRECTLY FILED 

A number of political committees which supported 

Federal candidates in the 1978 general election incorrectly 

reported their year-end financial activity, and will be 

required to file amended reports. The year-end report was 

required of candidates and committees whose total contri· 

butions or total expenditures exceeded $1 ,000 during the 

fourth quarter or who had outstanding debts. 

Political committees which made contributions to Federal 

candidates in the 1978 general election were required to 

submit reports covering the following dates: 

Report Coverage Dates 

1 0-day preelection report October 1 (or date of last full 

report) through October 23 

30-day postelection report October 24 through 

November 27 

Year-end report November 28 through 

December 31 

A number of committees, after submitting pre- and postelection reports, then reported their entire fourth quarter 

activity (October 1 through December 31) in their year-end 

report. Consequently, inflated campaign activity is being 

attributed to those committees. Committees which made 

this reporting error will receive a formal request for an 

amended year-end report (covering November 28 through 

December 31 only), unless the amended report is promptly 

filed. 

FEC RELEASES 

GUIDELINE FOR PRESENTATION 

IN GOOD ORDER 

To qualify for primary election matching funds, P

dential candidates must prepare contributions subm

for matching payments in accordance with the prescr

format presented in the FEC Guideline for Presentatio

Good Order. The Guideline includes details on: requ

supporting documentation; unmatchable contributi

criteria for rejection of submissions; submission and re

mission days; and procedures for resubmissions. Copie

the Guideline may be obtained by calling the FEC Pu

Communications Office at 202/523-4068 or toll-fre

800/424-9530; or by writing to the Office of Public C

munications, 1325 K Street, N.W., Washington, 

20463. 

FEC SEMINARS 

During 1979 and early 1980, the Commissione

and FEC staff will hold five one-day campaig

finance seminars. The seminars on campaign financ

prepared in cooperation with the Regional Seminar

on EleCtion Administration of the Commission

Clearinghouse, are based on responses to the Commi

sion's 1979 survey on the informational needs o

those involved in campaign finance - candidate

political committees, parties, separate segregate

funds and the public. 

The first of the five seminars will be held on Monday

July 23, 1979, in the State Capitol Building 

Madison, Wisconsin. As part of the seminar on Th

Federal Campaign Act and The FEC, there will b

two workshops on Reporting Requirements of th

Act and The Separate Segregated Fund (PAC). 

Additional seminars will be held later in Sacrament

California; Philadelphia, Pennsylvania; Austin, Texa

and Winston-Salem, North Carolina. The workshop

included in each seminar may vary in differen

locations. The dates and locations of future seminar

as well as the specific workshops planned for eac

seminar, will be published in the Record, as they ar

scheduled. For more information, contact the FE

Office of Public Communications by telephonin

202/523-4068, toll-free 800/424-9530. 

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

missioners are: Robert 0. Tiernan, Chairman; Max L. Friedersdorf, Vice Chairman; Joan D. Aikens;. Thomas E. Harri

John W. McGarry; Vernon W. Thomson; J.S. Kimmitt, Secretary of the Senate, Ex Officio; Edmund L. Henshaw, J

Clerk of the House of Representatives, Ex Officio. For more information, ca/1202/5234068 or toll-free 800/424-953

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"WHAT IS RIGHT AT THE FEC" 

At the request of Senator Claiborne Pel! (D.-R.I.), an 

article detailing "What Is Right at the FEC" was reprinted 

in the Congressional Record on May 24, 1979. The article, 

written by former FEC Chairman Joan D. Aikens, originally 

appeared in The Washington Post on May 21, 1979. In her 

article, Mrs. Aikens detailed the accomplishments of the 

Commission in its administration of the complex Federal 

election law. 

In his floor remarks, Senator Pel! acknowledged that much 

of the recent criticism leveled at the F EC has focused on 

the delay in completing the remaining audits of the 1976 

Presidential candidates. However, Senator Pel! pointed out 

that a "significant amount of the Commission's time and 

resources have been devoted to preparing testimony and 

responses to inquiries on legislative matters at the request 

of the Committee on Rules and Administration ... and 

three other Congressional committees, and presenting 

testimony in conjunction with hearings on H. R. 1." 

Identifying himself as one of the FEC's critics in the past, 

Mr. Pel! maintained that he would assume that role in the 

future ", .. when I believe criticism is warranted." How· 

ever, he asserted that the Commission ''has learned from 

past mistakes," and that he believed the FEC "has a good 

grasp of the problems facing it." Senator Pel! credited the 

Commission for "the many aspects of its operation that it 

carries out skillfully and conscientiously, but often without 

fanfare." 

NEW POLICY ON RELEASE OF 1976 

PRESIDENTIAL CANDIDATES' AUDITS 

On May 17,1979, the Commission adopted a new policy 

on the release of the remaining audits of 1976 Presidential 

candidates in the primary and general elections. Until 

then, it had been Commission policy to provide the audited 

Committee with a copy of the final audit report, resolve 

any conflicts about repayment amounts and await receipt 

of final repayment. Only after the Commission had received 

full payment, were the audit reports released to the public. 

Under the new policy, audit reports will be released to the 

public immediately upon the Commission's approval of the 

final audit report and its determination of the final repayment amount, if any. In its unanimous adoption of the new 

policy, the Commission agreed that: 

The release of these audits at this juncture 

would not have an adverse effect on the implementation of a proposed Commission action 

and this proposed policy change is fully justified by the circumstances. The Commission has 

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attempted to conduct this first venture in the 

public financing of Federal elections in a spirit 

of restraint, patience and cooperation. Every 

effort has been made to allow participating 

candidates maximum time and opportunity to 

document their claims for public funds and 

minimize their repayment obligations. Now, 

however, nearly three years have passed, and 

the public deserves to know the status of the 

remaining audits as promptly as possible. The 

change proposed herein would simply enable 

the Commission to make a prompt public 

accounting of its responsibilities. 

FEC PUBLIC APPEARANCES 

In keeping with its objective of making information available to the public, the Federal Election 

Commission regularly accepts invitations for its representatives to address public gatherings on the subject 

of campaign finance laws and the Commission itself. 

This regular column lists scheduled Commission 

appearances, detailing the name of the sponsoring 

organization, the location of the event and the Commission's representative. For additional information 

on any scheduled appearance, please contact the 

sponsoring organization. 

7/3 National Association of County Recorders 

and Clerks 

Kansas City, Missouri 

Gary Greenhalgh, Director, 

National Clearinghouse 

7/6 Western Conference 

National Association of Bank Advocates 

Olympia, Washington 

Commissioner Joan D. Aikens 

7/9 University of Washington 

Seattle, Washington 

Commissioner Joan D. Aikens 

7/10 Eastern Washington University 

Symposium on Public Disclosure Laws 

Cheney, Washington 

Commissioner Joan D. Aikens 

7/22 Clearinghouse Regional Seminar 

Midwest Regional Workshop Conference on 

Election Administration 

Madison, Wisconsin 

Gary Greenhalgh, Director, 

National Clearinghouse 

7/23 Campaign Finance Seminar 

Madison, Wisconsin 

FEC Commissioners and Staff 
ADVISORY OPINION REQUESTS 

The following chart lists Advisory Opinion Requests 

(AOR'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 AOR is avail· 

able to the public in the Commission's Office of Public 

Records. 

Date Made 

AOR Subject Public 

1979-24 Sale of campaign-owned 5/18/79 

materials to retire campaign 

debts. 

1979-25 Labor union's payment of 5/18/79 

expenses of summer interns 

in Federal officeholder's 

mobile district office, 

1979·26 Candidate status of 

undeclared candidate with 

registered "exploratory" 

committee. 

1979·27 Incorporated cooperative's 

payment of administrative 

expenses for its separate 

segregated fund. 

1979-28 Vending machine profits as 

source of organization's 

contribution to political 

committee. 

5/18/79 

5/29/79 

5/30/79 

1979-29 National nominating con- 6/4/79 

vention issues: permissible 

activities of host committee; 

permissible donations to Party. 

1979-30 Transfer of funds from unreg- 6/5n9 

istered fundraising committee 

to retire debts of two registered 

campaign committees. 

1979-31 Independent PAC's solicita- 6/Gn9 

tion of corporation's employees and other individuals; 

acceptance of contributions 

from other PAC's. 

1979-32 Filing State report in satisfaction of county partY 

committee's 1978 filing 

obligation to the F EC. 

6/11/79 

ADVISORY OPINIONS: SUMMARIES 

No. of 

Pages 

2 

2 

2 

2 

6 

2 

2 

Designated as AO's, Advisory Opinions discuss the 

application of the Act or Commission Regulations to 

specific factual situations. Any qualified person requesting 

an Advisory Opinion who in good faith acts in accordance 

with the opinion will not be subject to any sanctions 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. Those seeking guidance for 

4 

their own activity should consult the full text of 

Advisory Opinion and not rely only on the summary g

here. 

AO 1979-11: Delayed Receipt of 

Campaign Contribution 

Hoosiers for Birch Bayh (the Committee) may regar

campaign contribution which was made in 1968, but o

recently received by the Corilmittee, as excess camp

funds, and may use those funds to defray noncampa

nonreimbursable office expenses of Senator Bayh. 2 U.

§439a. 

In 1968, the Lake County Democratic Campaign Com

tee (LCDC) contributed the proceeds from a fundra

held on behalf of Senator Bayh to the Committee by b

cashier's check. The check was neither received nor dep

ed by the Committee, and it never cleared LCDC's acco

Bank officials recently informed the LCDC treasurer 

the funds had remained in the bank's possession and wo

soon become the property of the State. The treasurer t

issued another check in the amount of the 1968 contr

tion ($3,044.07) and sent it to the Committee. 

For disclosure purposes, the Committee must: 

1. Report the LCDC funds as a miscellaneous receipt ra

than as a contribution or a transfer from LCDC (rec

of contributors to the 1968 fund raiser do not exist); 

2. State the nature of the receipt and its intended restri

use; and 

3. Disclose disbursements from those funds and provide 

same details for those disbursements as is required 

expenditures. 

The Commission expressed no opinion as to possible ap

cation of the Standing Rules of the Senate to this situa

or possible tax ramifications; both thos~ issues are out

Commission jurisdiction. (Length: 3 pages) 

AO 1979-13: Solicitation for Separate 

Segregated Fund 

The Raymond Corporation (the Corporation) may 

publish a proposed article about the Corporation's sepa

segregated fund (RAYPAC) in the Corporation's pub

tion because the article is a contribution solicitation 

RAYPAC and is sent to people who may not be solici

The proposed article is considered a solicitation becaus

describes RAYPAC's activities and encourages emplo

participation in RAYPAC by commending employees w

have already "participated in" (contributed to) RAYP

Since the publication is circulated to all Corpora

employees (including retired employees) and other in

ested parties, the article would constitute an irnpro

solicitation because solicitations to nonmanagerial per

nel may be made only twice a year under the spec

guidelines of 11 CFR 114.6, and contribution solicitat

may not be made to nonemployees at anytime. (Reti

who hold no stock in the corporation and other intere

parties are not solicitable.) The article containing 

solicitation is distributed in a manner which does 
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conform to these requirements under the Act and Regula· 

tions and is therefore impermissible. 

If RAYPAC took precautionary measures to discourage, 

screen and return any contributions from people who 

RAYPAC is prohibited from soliciting at all or who may be 

solicited only under the conditions of CFR 114.6, and if 

the publication's circulation to those people were only 

incidental, then the inclusion of the proposed article would 

not be considered an improper contribution solicitation. 

Commissioners Joan D. Aikens and Max L. Friedersdorf 

filed a dissenting opinion. (Length, including the dissenting 

opinion, 6 pages) 

AO 1979·14: State Party Registration 

Requirements 

The American Party of Georgia (the State Party) must 

register and report under the Act if it transfers more than 

$1,000 during a calendar year to the American Party 

National (the National Party), which is a political commit· 

tee registered with the Commission. Since the National 

Party maintains a single account (a Federal account) for 

both Federal and non·Federal candidates (11 CF R 1 02.6 

(a){2)), the full amount of the State Party's transfers are 

considered contributions to influence Federal elections. As 

such, these transfers trigger the State Party's registration 

and reporting requirements under the Act. 

Should the National Party officially terminate its status 

as a political committee, transfers from the State to the 

National Party would not thereafter create political com· 

mittee status for the State Party. (Length: 3 pages) 

AO 1979-18: Sale of Contributor List 

The Federal Election Commission's Former Employees 

Committee (FEC·FEC) may sell its contributor list to 

individuals, corporations, unions, candidates or committees. 

Proceeds from the sale will not constitute a contribution to 

the FEC·FEC if the list is sold at the "usual and normal 

charge." However, if the list is sold for less than the usual 

and normal charge, the FEC·FEC will have made a contri· 

bution to any purchaser who is a candidate or political 

committee. If the list is sold for more, the purchaser will 

have made a contribution to the FEC·FEC. The amount of 

the contribution would be the difference between the usual 

and normal charge for such a list at the time of its sale and 

the amount the purchaser actually paid for the list. 

Payments received from the sale of the list at usual and 

normal charges must be reported on FEC Form 3 as other 

income (Line 16). However, if the sale of the list results in 

a contribution to or by FEC·FEC, the amount exceeding 

the "usual and normal charge" must be reported on Form 3 

as contributions from an individual (Line 14), a transfer 

from another political committee (Line 15), or a transfer 

to another political committee (Line 22). 

The Commission emphasized that Commission Regulations 

at 11 CFR 104.13 prohibit the use of information copied 

from reports and statements filed with the Commission 

for the purpose of soliciting contributions or for any 

commercial purpose. (Length: 4 pages) 

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AO 1979·19: Combined Payment to Trade Associati

and Separate Segregated Fund 

Individual members of the National Cattleman's A

tion (NCA) may purchase advance tickets for functi

the NCA annual convention and to a fundraiser spo

by NCA's separate segregated fund, the Cattleman's 

Legislative Fund (CALF), by combining payments fo

on one check. Checks may be made payable to NC

must be drawn on an individual's personal bank ac

not a corporate account. (Checks, however, drawn 

corporate account which is the nonrepayable d

account of an individual NCA member would a

permissible.) The procedure for combining political 

butions with payments to NCA is permissible pr

that: 

1. Contributions by check combining payment for c

tion events and the CALF fundraiser are trea

contributions received by CALF on the date th

bined check is received by any NCA employee or 

sentative; that portion of each check represen

political contribution is deposited in the accoun

bank depository designated by CALF within 10 

its receipt by NCA. 

2. NCA provides, upon Commission request, all rec

NCA bank accounts in which combined paymen

been deposited. 

3. NCA makes available, upon Commission requ

usual accounting records of members' conv

payments and records indicating which member

bined payments. These records must be maintain

three years. (Length: 4 pages) 

The following list identifies all FEC docum-ents 

appeared in the Federal Register between April 30

and June 11, 1979. 

Notice Title 

Federal Register 

Publication Date Ci

1979-3 Presidential Election April30, 1979 44 F

Campaign Fund and 

Primary Matching Funds; 

Correction 

1979-4 Final Rule; Announce- May 7, 1979 44 F

ment of Effective Date 

of Revised Regulations 

on Presidential Election 

Campaign Fund and 

Primary Matching Funds 

1979-5 Proposed Regulations: June 6,1979 44 F

Presidential Election 

Campaign Fund; Federal 

Financing of Conventions 

1979-6 Freedom of Information June 8,1979 44 F

Act; Implementation 

Procedures 
FEC REPORTS ON FINANCIAL 

ACTIVITY OF PARTY AND 

NONPARTY POLITICAL COMMITTEES 

The FEC released summary figures on May 10, 1979, 

detailing the financial activity of party and nonparty 

political committees which occurred during the 1977-78 

election cycle; The study includes financial information on 

326 Democratic and 359 Republican party committees, and 

details the distribution of their contributions by the type of 

candidates (Presidential, Senate or House) and by the status 

of candidates (incumbent, challenger or open seat). Non· 

party committees are categorized according to the sponsoring organization (corporation, labor union, nonconnected organization, trade/membership/health, cooperative and 

corporation without stock), and a list of the top 10 com· 

mittees in each category is included in the release. 

Information, based on reports filed with the Commission 

which cover the period between January 1, 1977, and 

December 31, 1978, includes receipts and disbursements, as 

well as debt status and cash·on·hand figures. Figures in this 

latest FEC study supersede figures contained in five earlier 

interim studies and summarized in the Record in April, 

June, November and December 1978 and March 1979. 

As in the past, the FEC notes that the figures contained 

in this latest study are not final, but are subject to change 

after all 1977-78 reports and amendments have been 

received and computerized. 

A press release, summarizing the information in the study, 

is available from the Press Office, 202/523-4065. Complete 

details are included in the four-volume study which is 

available for $5 a volume through the Office of Public 

Records, 1325 K Street, N.W., Washington, D.C. 20463; or 

telephone 202/523-4181, toll·free 800/424·9530. 

Some of the information contained in the study is present· 

ed in the charts below. In the three charts, adjusted disbursements are gross disbursements {i.e., fundraising and 

administrative costs in addition to contributions to candidates) minus transfers out to affiliated committees; adjust· 

ed receipts are gross receipts minus transfers in from affiliated committees. All dollar amounts represent millions of 

dollars. 

FINANCIAL ACTIVITY OF NONPARTY POLITICAL COMMITTEES 

JANUARY 1,1977- DECEMBER 31,1978 

Committees 

Contributing Contributions 

Committee Committees to Federal to Federal Adjusted Adjusted Latest 

Type Registered Candidates Candidates Disbursements Receipts Cash -on-Hand 

Corporate PAC's 821 697 $9.8 $15.3 $17.7 $3.9 

Labor PAC's 281 211 10.3 18.9 19.8 4.8 

Political Com- 254 120 2.5 16.8 15.4 .9 m ittees with 

no connected 

organization 

Trade/Member- 543 399 11.5 24.4 25.2 3.6 

ship/Health 

PAC's 

Cooperative 12 11 .9 2.0 2.0 1.4 

PAC's 

Corporations 27 21 . 1 .4 .4 .06 

Without Stock 

PAC's 

TOTALS 1,938 1.459 $35.1 $77.8 $80.5 $14.7 

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FINANCIAL ACTIVITY OF PARTY POLITICAL COMMITTEES 

.JANUARY 1, 1977- DECEMBER 31, 1978 

DEMOCRATS 

Committees 

Contributing 

Committee Committees to Federal Contributions 

Type Registered Candidates to Candidates 

National 9 3 $.06 

Senatorial 1 1 .4 

Congressional 5 1 .5 

State/Local 303 80 .4 

Other* 8 5 .4 

TOTALS 326 90 $1.8 

Expenditures 

on Behalf of 

Federal Adjusted Adjus

Candidates Disbursements Recei

$.06 $12.4 $11

0 .9 

0 2.5 2

.2 8.1 7

0 3.3 3

$.3 $27.2 $25

*Other includes Association of State Democratic Chairpersons, other National committees and Presidential convention committees. 

REPUBLICANS 

Committees Expenditures 

Contributing on Behalf of 

Committee Committees to Federal Contributions Federal Adjusted Adju

Type Registered Candidates to Candidates Candidates Disbursements Rece

National 9 3 $.9 $.3 $36.0 $34

Senatorial 2 1 .5 2.6 11.7 12

Congressional 2 2 1.8 .8 15.7 14

State/Local 337 107 .7 .4 19.9 20

Other* 9 2 .6 0 2.4 4

TOTALS 359 115 $4.5 $4.1 $85.7 $84

*Other includes National fundraising, other National committees and Presidential convention committees. 

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 issue(s) involved in the case. Persons seeking 

additional information on a particular case should contact 

the Court where the suit is _filed, or the Commission. 

7 

Archie E. Brown v. FEC, et. al., U.S. District Cour

District of Columbia, Docket No. 79·0940, April 

Plaintiff alleges that the Commission's dismis

of his complaint was contrary to law. 

Compuserve Data Systems v. Paul E. Goulding, et 

District Court for the District of Columbia. Doc

79·1217, May 3, 1979. 

Plaintiff alleges that the contract for comput

services for the FEC was unlawfully awarded 

the Commission to one of the plaintiff's comp

titors. 
FEC v. AFSCME 

On May 14, 1979, the U.S. District Court for the Dis· 

trict of Columbia dismissed a suit which the FEC had filed 

against the American FederatiOn of State, County and 

Municipal Employees (AFSCME). In that action, it was 

alleged that AFSCME had violated the disclosure require· 

ments of 2 U.S.C. §431 (f)(4)(C) by failing to report 

$983.73 it had spent to publish and circulate a political 

poster to its members immediately prior to the 1976 

general election. The poster in question depicted, in cari· 

cature, President Gerald Ford, wearing a lapel button with 

the words "Pardon Me," and embracing former President 

Richard Nixon. The poster contained a quote taken from a 

speech given by Ford as Vice President: "I can say from the 

bottom of my heart -the President of the United States is 

innocent and he is right." 

The Act specifically excludes from the definition of the 

term "expenditure" any communication made by a membership organization or a corporation to its members or 

stockholders, but requires that the costs directly attribut· 

able to communications expressly advocating the election 

or defeat of a clearly identified candidate must be reported 

to the Commission if they exceed $2,000 per election (2 

U.S. C. §431 (f)(4)(C)). AFSCME had reported "communi· 

cations costs" of approximately $40,000 in connection 

with the 1976 general election, including approximately 

$23,000 directly attributable to expressly advocating the 

election of Jimmy Carter. 

The Court found that, although the Nixon-Ford poster did 

pertain to a clearly identified candidate and may have 

tended to influence voting, it. did not contain an "express 

advocacy" of election or defeat within the narrow definition given to that term in Buckley v. Valeo. Additionally, 

the Court held that, as a communication concerning a 

public issue widely debated during the 1976 campaign, the 

poster is typical of the political speech which is protected 

from regulation. 

Accordingly, the Court dismissed the action for failure to 

allege a violation. 

FEDERAL ELECTION COMMISSION 

1325 K STREET, NW 

WASHINGTON, DC 20463 

OFFICIAL BUSINESS 

CAMPAIGN FINANCE LAW 

UPDATE AVAILABLE 

The Clearinghouse recently announced that its annual 

update of State campaign finance laws has been completed 

and is available for purchase. Campaign Finance Law 79 

includes all State campaign finance laws enacted during 

1978. The report can be obtained by sending a check or 

money order for $2.40 to: 

Superintendent of Documents 

Stock Number 052.003-00653·7 

U.S. Government Printing Office 

Washington, D.C. 20402 

The 1979 update supplements the Campaign Finance Law 

78 Report. The 1978 report includes all State campaign 

finance laws which were in effect as of January 1, 1978. A 

copy of the 1978 report can be obtained by sending a 

check or money order for $12.00 to: 

NTIS Sales Desk 

Report No. PB279516AS 

Department of Commerce 

52B5 Port Royal Road 

Springfield, VA 22161 

FIRST CLASS MAIL 

POSTAGE & FEES PAID 

FEC 

WASHINGTON, D.C. 

PERMIT NO. G-31