THE FEDERAL ELECTION 

COMMISSION 

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

Volume 5, Number 12 

REPORTS 

YEAR-END REPORT 

IN NONELECTION YEAR 

All Federal candidates and all political committees 

supporting Federal candidates must fi le a year-end report 

of receipts and expenditures by January 31, 1980. The 

year-end report is the same as a fourth quarter report. The 

report must be filed by all candidates and committees 

regardless of how much they have raised o r spent during the 

year or whether they have outstanding debts, with the 

exception of: 

- Candidates and committees which have filed a valid 

termination report; 

- Candidates who have received a personal reporting 

waiver from filing separate candidate reports; 

-- Candidates and their authorized committees which 

participated in a special election during 1979 (see 

article below). 

The report, filed on FEC Form 3, is due on January 31, 

1980. FEC Form 3a (postcard form) will not be considered an adequate filing and should not be used for this 

report. The report must disclose all reportable transactions 

since the closing date of the last fu ll report and all outstanding debts or obligations through December 3 1, 1979. 

Po litical committees filing on a month ly basis need not 

file quarterly reports, but must file a year-end report 

by January 31, 1980 covering all reportable transactions 

for the month of December. 

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

the Secretary of the Senate or the Federal Election Commission, as appropriate. Copies of the report must also be 

filed with the Secretary of State or equivalent State officer 

in the appropriate State. Filers must submit legible reports 

that can be reproduced clearly; candidates or committees 

which file illegible or barely legible reports will be required 

to refile. A notice containing additional information, as 

well as forms, will be sent to all registered candidates and 

committees. Questions about the notices or requests for 

additional forms shou ld be addressed to the Office of 

December 197

Public Communications, Federal Election Commissio

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

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

YEAR-END REPORT FOR 

SPECIAL ELECTIONS 

Candidates who participated in one of the speci

e lections held during 1979 and committees which suppor

ed those candidates must regard 1979 as an election yea

Therefore, a year-end report is required if: 

1. Receipts or expenditures during the fourth quart

exceeded $1,000; OR 

2. The candidate or committee has outstanding debts 

obi igations. 

The report should cover all transactions since the closin

date of the last full report through December 31, 197

(Any candidate or committee whose reporting obligation

have been properly terminated need not file any reports

Candidates and committees who have not exceeded th

$1,000 threshold and have no outstanding debts mus

nevertheless, file a 3a postcard form, unless the previo

report filed was a 3a postcard. 

NOTE: Candidates and committees who participated 

the Illinois special election should consult th

special notice on reporting obligations which the

have received from the Commission. 

REGULATIONS 

REVISIONS AND ADDITIONS TO 

PUBLIC FINANCING REGULATIONS 

As part of its general planning and preparation for th

1980 Presidential election, the F EC has proposed sever

revisions to the Convention Financing Regulations an

additions to the Primary Matching Fund Regulation

(See also Record, June 1979, p.1 .) In accordance with th

law, the Commission submitted its proposals to Congres

Unless the House or Senate disapproves them within 3

legislative days after the date of their submission, th

Commission may promulgate the proposed Regulation
CONVENTION FINANCING 

REGULATIONS 

On October 26, 1979, the Commission submitted its 

proposed revisions to the Convention Financing Regulations. The proposed Regulations, which define the process 

by which political parties may qualify for public funds to 

finance their conventions, cover: 

1. The establishment of a convention committee that is 

responsible for conducting the day-to-day operations 

of the convention, receiving all public funds and private 

contributions and making all expenditures on behalf of 

the national committee. 

2. The payment schedule, stipulating a lump sum payment 

of all public funds to which the convention committee 

is entitled, once it has established its eligibility. Formerly, the entitlement was disbursed in quarterly payments. 

3. The permissible uses for public funds, including advances 

which the national committee makes to the convention 

committee and excluding payment of civil or criminal 

penalties resulting from a violation of the Act. 

4. The limits on the total amount which the party may 

spend on its convention (i.e., the statutory entitlement 

of $2 million plus the cost-of-living-adjustment in any 

combination of private contributions and public funds) ; 

and a provision for additional expenditures, though not 

additional public funds, in "extraordinary and unforeseen circumstances" (e.g., a deadlocked convention, a 

natural disaster). 

5. The permissible contributions and in-kind donations to 

the convention committee and the host committee 

(during the "life of the convention") from "local businesses," municipal corporations, government agencies, 

local labor organizations, corporations, banks and 

individuals. The Regulations define "life of the convention" and "local business." 

6. The permissible expenditures by local government 

agencies and municipal corporations for the convention. 

7. The registration and reporting requirements of the 

convention committee and all other organizations 

(the host committee, State or local government agencies 

and municipal corporations) that deal with national 

party officials in making convention arrangements. 

8. The circumstances under which a repayment of public 

funds is required, and a procedure to resolve disputes 

when the committee challenges a Commission determination that repayment is required. 

PRIMARY REGULATIONS 

On October 30, 1979, the Commission submitted proposed Regulations governing eligibility for public matching 

funds in those cases where primary e lection candidates, 

prior to applying for matching funds, exceeded the prescribed expenditure limits. Current Regulations require 

only that a candidate and his or her committee certify that 

they will not exceed the expenditure limits after certification. The proposed Regulations would require a candidate 

to certify that he or she has not and will not excee

expenditure limits. 

Under the proposed Regulations, for any candidate se

publ ic funds, the expenditure limits would apply 

the beginning of their candidacy rather than from 

time when they are certified as being eligible to re

public matching funds. Consequently, a candidate 

exceeded the expenditure limits before he or she ap

for matching funds would be ineligible to receive p

funds. The proposed Regulations would also pr

procedures for candidates to challenge a Comm

determination that they are ineligible for public funds. 

HEARINGS ON CANDIDATE 

DEBATE REGULATIONS 

On October 23 and 24, 1979, the Commission 

public hearings on the funding of Federal cand

debates. 

Background: Previous hearings on this subject were h

September 1977. (See Record, November 1977, p. 1

June 12, 1979, the Commission submitted prop

Regulations to Congress. Those Regulations would 

created an exemption to the general prohibition again

use of corporate and union funds in connection 

Federal elections by permitting unions and corporatio

contribute to nonprofit organizations which sp

nonpartisan candidate debates. After the Regulation

been transmitted to Congress, questions were raised a

the Regulations' effect o n other groups, principally 

mercial broadcasters and other news media. On Septe

18, 1979, the Senate disapproved the proposed Re

tions. A month later, the Commission published a 

notice requesting additional public comments on the 

and announcing a second round of public hearings. 

Hearings: With Chairman Robert Tiernan presiding 

the hearings, the Commissioners heard testimony 

three witnesses, including representatives of the Na

Association of Broadcasters (NAB), the Radio and 

vision News Directors Association (RTN DA) and 

League of Women Voters. The NAB representative v

the fear that F EC regulation of candidate debates w

"deprive commercial broadcasters ... of the righ

provide a forum for Federal candidates," and the RT

suggested that the F EC exempt broadcast debates arra

by journalists. The League of Women Voters, faced 

the immediate problem of locating funding source

their planned 1980 debates, expressed the hope tha

Commission could find a way to "separate the n

question of the appropriateness of corporate contribu

from the more complex issues of debate structure an

F EC regulatory powers over broadcasters and newspap

In addition to hearing oral testimony, the Commi

ext ended the deadline for submitting written testim

on this issue until November 20, 1979. 

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

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

John W. McGarry,· Frank P. Reiche,· J.S. Kimmitt, Secretary of the Senate, Ex Officio; Edmund L. Henshaw, Jr., Cle

of the House of Representatives, Ex Officio. For more information, call 202/523-4068 or toll-free 800/424-9530. 

2 
e 

OPINIONS 

ADVISORY OPINION REQUESTS 

The following chart I ists recent Advisory Opinion 

Requests (AOR 's), with a brief description of the subject 

matter, the date the requests were made pub I ic and the 

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

AOR is available to the public in the Commission's Office 

of Public Records. 

Date Made No. of 

AOR Subject Public Pages 

1979·58 Volunteer activities of law 10/16/79 4 

firm partners in Presidential 

campaign. 

1979-59 PAC's solicitation of subsid· 10/23/79 

iary's executive and adminis· 

trative personnel who are 

stationed abroad. 

1979-60 Plan to permit union members 10/26/79 3 

to authorize the contribution 

of a portion of their vacation 

fund to the local's PAC. 

1979-61 Draft committee's use of 10/31/79 2 

funds subsequent to 

announcement of candidacy. 

1979-62 PAC's solicitation of two 10/31/79 2 

separate trade associations 

with overlapping membership . 

1979-63 Acceptance of unsolicited 11/2/79 

contributions to PAC. 

1979-64 Solicitation, receipt and use 11/7/79 2 

of funds by congressional 

legislative support organizations. 

1979-65 Terminated draft committee's 11/8/79 

affiliation with authorized 

campaign committee. 

1979-66 Including information about 11/8/79 2 

trade association's PAC in 

publications of trade 

association. 

1979-67 Status and funding sources of 11/9/79 6 

university-sponsored internship 

program; activities of interns. 

ADVISORY OPINIONS: SUMMARIES 

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 

their own activity should consult the full text of an 

Advisory Opinion and not rely only on the summary given 

here. 

3 

AO 1979·21: Reimbursement for Use of 

Payroll Deduction Plan 

The Political Contributions Committee (PCC), the separate 

segregated fund of the Communications Workers of Amer

ica (CWA), must reimburse the New York Telephone 

Company (the Company) for expenses incurred by the 

Company in making a payroll deduction available to CWA 

for the collection of political contributions from CWA 

members to the PCC. 

The Act and Commission Regulations permit a corporation 

or labor organization to use general treasury funds to pay 

for the "establishment, administration and solicitation 

of contributions to its separate segregated fund." 11 CF R 

114.5(b). Therefore, payment by the corporation of the 

expenses for payroll deduction used for or on behalf o

CWA and PCC would be prohibited by 2 U.S.C. § 441b

Accordingly, CWA must reimburse the Company. Commis

sioner Thomas E. Harris filed a dissenting opinion. (Dat

Issued: October 5, 1979; Length, including dissenting 

op inion : 5 pages) 

AO 1979-43: Vice Presidential 

Primary 

The New Hampshire Vice Presidential primary is not an 

"election" under the Act or Commission Regulation

since the Democratic Vice Presidential nominee is no

chosen as a direct result of the New Hampshire primary and 

because the Vice Presidential primary does not elect dele

gates to the national nominating convention. The primary 

election for Vice President is the Democratic Nationa

Convention since only that Convention has the authority to 

select a nominee. (Date Issued: October 5, 1979; Length: 

pages) 

AO 1979-48: Voter Registration 

Advertisement 

Rexnord Inc.'s Political Action Committee (the PAC) ma

pay for an advertisement, carried in a general circulatio

newspaper, which reads " Please Register to Vote" an

which includes the identification of "Rexnord, Inc.'' in 

lower corner of the advertisement. 

However, Rex nord Inc. may not use corporate funds to pa

for the ad. A corporation may undertake voter registratio

activity o nly if it is restricted to the corporation's stock

holders and executive or administrative personnel, or if it 

jointly sponsored by a civic or non-profit organizatio

which does not support or endorse candidates or pol itica

parties. 11 CFR 114.4(d)(1). Commissioner Max L

Friedersdorf filed a dissenting opinion. (Date Issued

October 31, 1979; Length, including dissenting opinion: 

pages) 

AO 1979-49: Contribution and Expenditure Limits 

for Unauthorized Committee 

Since the Independent Campaign to Elect William E. Simo

President (the Committee) is an unauthorized draft com

mittee which has been disavowed by Mr. Simon, and sinc

Mr. Simon is not a candidate under the Act, the Committe

may accept contributions of more than $1 ,000 but no

more than $5,000 from individual contributors during 

calendar year. 2 U.S.C. §441a(a) (1)(C). Moreover, there 

no limit on the amount of money which the Committe

continue
may spend in a State campaign to promote Mr. Simon's 

entry into the 1980 Presidential election. The Act does not 

prescribe expenditure limits for unauthorized political 

committees whose activities have been disavowed by the 

individual being supported by the committee. Si nce Mr. 

Simon is not a candidate, the Committee's expenditures on 

his behalf would not be subject to the special reporting 

requirements which apply to independent expenditures. 

However, these Committee expenditures, as well as all 

Committee receipts, would be governed by all other report· 

ing requirements of the Act. (Date Issued : October 5, 1979; 

Length : 3 pages) 

AO 1979-50: Union PAC's Solicitation 

of Nonmembers 

The Public Affairs Council (t he PAC), the separate segre· 

gated fund of the National Federation of Federal Employees (NFFE), may not publish a contribution solicitation in 

the NFFE newspaper which reaches 8,000 people who are 

not members of NFFE. Those 8,000 individuals represent 

15 percent of the newspaper's total c irculation. Despite 

NFFE's intention to include a caveat with the solicitation, 

stating that only contributions from NFFE members and 

their families will be accepted and retained, the solicitation 

is impermissible since it would reach more than an inci· 

dental number of nonmembers. 

The PAC may solicit NFFE employees who are not NFFE 

members only in accordance with the Commission's twice· 

yearly solicitation Regulations. 11 CF R 114.6(c) and (d). 

However, the PAC may accept unsolicited voluntary 

contributions at any time from NFFE employees who are 

not NFFE members. (Date Issued: October 19, 1979; 

Length: 4 pages) 

AO 1979-51 : Termination of Dual 

Candidacy 

The "testing-the-waters" exemption does not apply to 

funds used by Congressman Robert Edgar. That exemption 

applies only to funds used solely to determine political 

support for a potential candidacy. Since Congressman 

Edgar filed a statement of candidacy for the Senate and 

the Edgar for Congress Committee (the House Committee) 

has been funct ioning on his behalf, his candidacy for both 

offices was established. Therefore, the exemption does not 

apply and the Edgar for Senate Committee (t he Senate 

Committee) must conti nue to report its contributions and 

expenditu res until it has filed its termination report. 

CHANGE OF ADDRESS 

Si nce Congressman Edgar has decided not to pursu

Senate candidacy, the Senate Committee may transfe

residual funds to the House Committee subject to 

procedures which apply when dual Federal candid

terminate one candidacy and continue with the other

CFR 110.3 (a)(2)(v). (Date Issued: November 2, 1

Length: 3 pages) 

AO 1979-52: Use of Corporate 

Aircraft 

The Committee to Elect Ed Howard (the Committee) m

reimburse Mr. Howard's corporation, in advance and 

the usual and normal charge, for the candidate's use of 

corporation's aircraft for campaign pu rposes. Since 

Howard is a pilot and wi ll be flying the aircraft himself, 

usua l and normal charge wou ld be the charter rate fo

aircraft of t he same class and type with fuel and witho

pilot. 

Even though Mr. Howard is the sole stockholder of 

corporation which owns the aircraft, reimbursem

to the corporation for campaign use of the aircra

sti ll necessary. Commission Regulations do not disting

between corporations with many stockholders and th

owned by a single stockholder. 11 CFR 114.9(e). 

however, the corporation were dissolved and made a 

proprietorship, 11 CFR 11 4.9(e) wou ld not apply s

the Regulation governs only those aircraft owned 

leased) by corporations and labor unions. (Date Iss

November 8, 1979 ; Length : 2 pages) 

AO 1979-53: Campaign Accounts 

and Depositories 

One individual, designated as treasure r by four diffe

principal campaign committees and a fifth political c

mittee (the Ownership Campaign), may not use a si

checking account to handle the financial transactions o

five committees. The Act req uires a principal camp

committee to maintain a single checking account for 

committee in a campaig n depository designated by 

candidate. 2 U.S.C. § § 432(e) and 437b. Furtherm

Commission Regulations require that all expenditures 

the committee be made by checks drawn on that acco

Therefore, a separate checking account must be mainta

for each committee. All five committees may, howe

designate the same bank as the depository for their sepa

checking accounts. (Date Issued: November 9, 19

Length : 2 pages) 

Record subscribers, when calling or mailing in a change of address, are asked to provide the following information

1) Name of person to whom the Record is sent; 2) Old address; 3) New address; 4) Subscription number. 

The subscription number is located in the upper left hand corner of the mail ing label. It consists of three letters and fiv

numbers. Without this number, there is no guarantee that your subscription can be located on the computer. 

NOTE: Registered candidates and committees are automatically sent the Record and do not have this subscriptio

number on their mailing labels. Any change of address by a registered entity must, by law, be made in writing as a

amendment to FEC Form 1 (Statement of Organization for a Political Comm ittee) or FEC Form 2 (Statement o

Candidate), and be placed on the public record . 

4 
AO 1979-57: Contributions by 

Money Order 

The Political Action Committee of the Veterans of Foreign 

Wars (VFW-PAC) may accept money orders, which repre· 

A sent contributions raised by local VFW posts, provided that 

W the local chapters: 

1. Restrict contribution solicitations to VFW members 

(i.e., raffle tickets can be sold only to V.F.W. members); 

2. Do not accept cash contributions of more than $1 00; 

and 

3. Record, account for, and deposit the contributions in 

accordance with Commission Regulations. (Date Issued: 

November 9, 1979; Length: 2 pages) 

FEC PUBLIC APPEARANCES 

In keeping with its objective of making informa· 

tion available to the public, the Federal Election 

Commission regularly accepts invitations to address 

pub I ic 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, t he location of 

the event and the name of the Commission's speaker. 

For additional information on any scheduled appearance, please contact the sponsoring organization. 

12/5 Council on Governmental Ethics Laws 

Annual Conference 

Washington, D.C. 

Chairman Tiernan and Commissioner Reiche 

12/9-11 Clearinghouse Southwest Regional Seminar 

Conference on Election Administration 

Austin, Texas 

FEC Commissioners and Staff 

12/10 FEC Campaign Finance Seminar 

Austin, Texas 

FEC Commissioners and Staff 

12/12 Associated Industries of Florida 

Elections Seminar 

Tampa, Florida 

Chairman Tiernan and 

Vice Chairman Friedersdorf 

12/ 13 Colorado Secretary of State 

Campaign Finance Workshop 

Denver, Colorado 

Commissioner Aikens 

12/18 Catholic University Law School 

Alumni Association 

Chairman Tiernan 

5 

COMPLIANCE 

SUMMARY OF MUR's 

Selected compliance cases, which have been closed and 

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

Compliance matters stem from possible violations of the 

Act, which come to the Commission's attention either 

through formal complaints originating outside the Commis· 

sion or by the FEC's own monitoring procedures. The 

Federal Election Campaign Act of 1971, as amended (the 

Act) gives the FEC the exclusive primary jurisdiction for 

the civil enforcement of the Act. Potential violations are 

assigned case numbers by the Office of General Counsel and 

become "Matters Under Review" (MUR's). All MUR 

investigations are kept confidential by the Commission, as 

required by the Act. 

MU R's may be closed at any one of several points during 

the enforcement process, including when the Commission: 

Determines that no violation of the Act has occurred; 

Determines that there is no reason to believe, no reasonable cause to believe or no probable cause to believe a 

violation of the Act has occurred; 

Enters into a conciliation agreement with the respon· 

dent; 

Finds probable cause to believe a violation has occurred 

and decides to sue; or 

Decides at any point during the enforcement process to 

take no further action. 

After the M U R is closed and released by the Office of 

General Counsel, the Commission makes the MUR file 

available to the publ ic. This file contains the complaint, 

the findings of the General Counsel's Office and the Com· 

mission's actions with regard to the case, including the full 

text of any conciliation agreement. The Commission's 

actions are not necessarily based on, or in agreement with, 

the General Counsel's analysis. 

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

closed after January 1, 1979. The Record article does not 

summarize every stage in the compliance process.· Rather, 

the summary provides only enough background to make 

clear the Commission's final determination. The full text of 

these MUR's and those which were closed between 1976 

and 1978 are available for review and purchase in the 

Commission's Public Records Office. 

MUR 623: Transfers Between Party's 

State and Federal Committees 

On March 28, 1979, the Commission entered into a concil· 

iation agreement with a State political party's Federal 

elections committee (the Federal committee). The comm it· 

t ee had accepted a transfer of funds from an account which 

included corporate funds, in violation of 2 U.S.C. §441 b. 

Complaint: During an audit of the State party's Federal 

committee, the Audit Division discovered, and referred 

to the General Counsel, the following potential violations 

of the Act: 

continued 
1. The party's Federal committee accepted a $5,000 loan 

repayment from the party's State committee in a State 

that perm its corporate contributions. Since the State 

committee, an unregistered committee, accepted corporate contributions and deposited them into a single bank 

account, the loan repayment to the Federal committee 

might include corporate funds. Therefore, the Federal 

committee's acceptance of the repayment might constitute a violation of § 441 b. 

2. The Federal committee also accepted a number of 

transfers-in from county and local political organizations 

which did not maintain separate Federal accounts, but 

which did accept corporate contributions and placed 

them in the single accounts which· they maintained. The 

Federal committee's acceptance of such transfers might 

constitute a violation of §441 b. 

On July 25, 1978, the Commission found reason to believe 

that the Federal committee had violated § 441 b with 

respect to accepting the loan repayment and the t ransfers. 

General Counsel Reports: Upon notification of the Com· 

mission's reason to believe finding, the Federal committee's 

treasurer attempted to contact the unregistered party 

committees which had transferred the funds to determine 

whether or not corporate funds had, in fact, been commingled in the transferred funds. Some of the committees 

contacted did not have sufficiently detailed records to 

provide a conclusive answer; others did not respond at all. 

After a review, the General Counsel concluded that there 

was insufficient evidence to requ ire the Federal committee 

to return the transfers. With respect to the loan repayment, 

the General Counsel recommended that the Commission 

permit the loan repayment, but require a civil penalty. 

Commission Determination: On November 29, 1978, the 

Commission found reasonable cause to believe the Federal 

committee had violated § 441 b by accepting the loan 

repayment. After negotiation with the Federal committee's 

counsel, the civil penalty was reduced . On March 28, 1979, 

the Commission entered into a conciliation agreement with 

the Federal committee. 

MU R 926: Required Authorization 

Notices 

On March 14, 1979, the Commission found no reason to 

believe a Presidential campaign committee had violated 

2 U.S.C. § 441d(1) by fai ling to include th e required 

authorization notices on it.s campaign literature. 

Complaint: On February 26, 1979, an individual filed 

a notarized complaint with the Commission alleging that 

a Presidential campaign committee had failed to include 

authorization notices on various types of campaign literature. The three items which prompted the complaint 

were a bumper sticker, an order form for the candidate's 

new biography and a notice welcoming conference delegates to the candidate's hospitality suite at a political 

conference. 

General Counsel Reports: The General Counsel pointed 

out that bumper stickers are explicitly excepted, in 11 CF R 

110. 11 (a) ( 1). from the § 441 d ( 1) requirement for authorization statements on general pub I ic political advertising 

6 

that expressly advocates the election or defeat of a c

identified candidate. With respect to the other two it

question, neither the order form nor the welcome 

requires the authorizat ion statement since neither exp

advocates the election or defeat of the candidate. 

fore, the General Counsel recommended that the Co

sion find no reason to believe the Committee had vi

the Act. 

Commission Determination: On March 14, 1979

Commission found no reason to believe the Committe

violated the Act. 

THE LAW 

IN THE COURTS 

LITIGATION STATUS INFORMATION 

The following is a list of new litigation involvin

Commission, together with the date the suit was 

the Court involved, the Docket Number and a brief de

tion of the major issue(s) involved in the case . P

seeking additional information on a particular case s

contact the Court where the suit is filed or the Commi

FEC v. Robert P. Aulston and Elray Venice, U.S. D

Court for the Eastern District of Louisiana, Docke

79-2719, July 17, 1979. 

The FEC alleges that the defendants, who were 

officers of a national bank, violated 2 U.S.C. 

§ 441b by consenting to the bank's making con- 

tributions to candidates for public office. 

Harley Williams v. FEC, U.S. District Court for the D

of Columbia, Docket No . 79-2511, September 21, 197

The complainant alleges that the FEC's investigation of a complaint which he filed with the 

Commission was not "conducted expeditiously," in violation of 2 U.S.C. § 437g(a)(3); 

that the Commission failed to act on the 

complaint within a 90-day period, in violation 

of 2 U.S.C. §437g(a)(9); that the Commission 

informally issued opinions on a pending Advisory Opinion Request, in violation of 2 U.S.C. 

§ 437f(a); and the Commission failed to make 

an Advisory Opinion Request public in accordance with 2 U.S.C. § 437f(c). 

FEC v. Michael Fieschko, U.S. District Court for th

trict of Columbia, Docket No. 79·2880, October 25, 

The FEC alleges that Michael Fieschko violated 

the terms of a conciliation agreement he entered into with the Commission pursuant to 2 

U.S.C. § §437g(a)(5) and 437g(a)(7). 

FEC v. EASTSIDE DEMOCRATIC 

COMMITTEE 

On October 16, 1979, the Commission and the Ea

Democratic Committee agreed to a consent judgment 

by the U.S. District Court for the District of Maryland

Commission filed suit on March 5, 1979, alleging th

defendant had violated the Act by failing to repo
receipt and expenditure of a $5,000 contribution from the 

Marine Engineers Beneficial Association Political Action 

Fund, as requ ired by 2 U.S.C. § 434(b). The defendant 

agreed to maintain all committee books and records for a 

period of three years and to permit the Commission, upon 

request, to inspect those records. The Court levied a civil 

penaltY of $500 and retained jurisdiction over the case 

for three years to ensure compliance with t he judgment. 

PUBLIC 

FINANCING 

FEC APPROVES ELIGIBILITY OF 

PRESIDENTIAL CANDIDATE FOR 

1980 MATCHING FUNDS 

On November 1, 1979, the Commission determined 

that Senator Howard Baker is the first 1980 Presidential 

candidate eligible to receive primary matching fund pay· 

ments. The Commission determination followed a thorough 

review by the FEC Audit Division of the campaign commit· 

tee's threshold submission. The submission included con· 

tributions amounting to at least $5,000 from individuals in 

each of 20 different States. Although individual contributions may give up to $1,000 to a candidate, only the first 

$250 may be matched with public funds. (For information 

on eligibilitY, see Record, April 1979, p. 6.) The Commis· 

sion will certify actual payment by the Treasury to Senator 

Baker in December. The Act does not allow payment of 

any funds from the Presidential Primary Matching Payment 

Account until January 1, 1980. 

COMMISSION APPROVES 

SAMPLING TECHNIQUES 

Recently, the accounting firm of Ernst & Whinney 

completed a study for the Commission on various statistical 

sampling techniques which might be used for the process· 

ing, verification and certification of matching fund submissions during the 1980 Presidential election. Ernst & 

Whinney recommended that the Commission adopt the PPS 

(Probability Proportional to Size) sampling method for 

these purposes. The FEC Audit Division concurred in that 

recommendation, and on October 18, 1979, the Commission approved the use of PPS statistical sampling techniques. 

Adoption of the PPS method will require the data entry 

of certain information contained in the candidate's matching fund submission list. To ensure the accuracy of this data 

entry and to expedite the matching fund process, the 

Commission is requesting that Presidential campaigns 

submit the required contributor information on computer 

tapes as well as on a printed listing. 

7 

FEDERAL REGISTER 

NOTICES 

The list below identifies all FEC documents which 

appeared in the Federal Register between October 5, 1979, 

and November 12, 1979. Copies of these notices are not 

available from the FEC. 

Fed eral Register 

Notice Title Publication Date 

1979-16 AvailabilitY of Indices 10/9/79 

to Statements and 

Reports 

1979-17 Proposed Regulations 10/12/79 

on the Funding of 

Candidate Debates 

1979-18 Presidential Election Cam- 11 / 1/79 

paign Fund : Federal 

Financing of Presidential 

Nominating Conventions; 

Transmittal of Regulations 

to Congress 

1979-19 Presidential Election Cam- 11/5/79 

paign Fund: Eligibility of 

Candidates Who Exceed 

Expenditure Limitations 

Prior to Seeking Matching 

Funds; Transmittal of Regulations to Congress 

1979-20 Presidential Election Cam- 11 /5/79 

paign Fund : Suspension 

of Matching Fund Payments 

to Candidates Who Have 

Received Publ ic Funds and 

Subsequently Exceed Expenditure Limitations; Proposed 

Regulations 

1979-21 Funding of Federal Candi- 11/7/79 

date Debates; Extension 

of Comment Period on 

Proposed Regulations 

STAFF 

FEC NAM ES ACTING 

GENERAL COUNSEL 

Citation 

44 FR 58140 

44 FR 59162 

44 FR 63036 

44 FR 63756 

44 FR 63753 

44 FR 64773 

On November 1, 1979, Charles N. Steele was named 

Acting General Counsel for the FEC. Mr. Steele, who 

received both his A.B. and LL.B. from Harvard University, 

has been with the Commission since 1976. Prior to his 

designation as Acting General Counsel, Mr. Steele was 

Associate General Counsel for Enforcement and Litigation. 

The former General Counsel, William C. Oldaker, resigned 

from that position on October 31, 1979. He joined the FEC 

in 1975, and had been General Counsel since January 1

1977. 
AUDITS 

AUDITS RELEASED 

TO THE PUBLIC 

The Federal Election Campaign Act requires the Commission to periodically conduct audits and field investigations with respect to reports and statements filed under the 

Act. The Commission is also required to conduct audits of 

all campaigns of Presidential candidates who receive public 

funds. Audit reports that have been approved by the 

Commission, either t hrough a tally vote or after discussion 

in open session, are re leased as final audit reports. If an 

audit report has been discussed in open session, but has not 

been approved by the Commission, the report is available 

as an interim audit report. Both final and interim reports 

are available through the Office of Public Records and Press 

Office. In t he list below, interim reports are designated by 

an ast erisk (*). All others are final audit reports. The 

fo llowing is a chronologi~al listing of audits released 

between October 6, 1979, and November 12, 1979: 

Audit Report 

1. McCarthy '76 Michigan (Detroit Area) 

2. Texas Democratic Get Out the Vote 

Committee 

FEDERAL ELECTION COMMISSION 

1325 K STREET, NW 

WASHINGTON, DC 20463 

OFFICIAL BUSINESS 

Dat e Made 

Public 

10/10/79 

10/10/79 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

*1 1. 

*12. 

Da

Audit Report 

State Democratic Committee of 10

Missouri - Voter Registration Drive 

Masters, Mates and Pilots Pensioners 10

Action Fund 

Democratic State Committee of New 10

Jersey : Voters Registration Account; 

Telethon Account 

Montoya for Senator Club 10

Committee for Thorough Agricultural 10

Political Education 

Democratic Party of Wisconsin/Federal 1

Account 

American Apparel Manufacturers 1

Political Action Committee 

Ron Faucheux, LA/1 1

National Federation of Republican 1

Women 

National Black Republican Council 1

FIRST CLASS MAI

POSTAGE & FEES PA

FEC 

WASHINGTON, D.C. 

PERM IT NO. G·31