• 

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THE FEDERAL ELECTION 

COMMISSION 

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

Volume 3, Number 1 

. POST-ELECTION CONTRIBUTIOUS. 

TO RETIRE 1976 CAMPAIGN DEBTS· 

In a policy statement published on January 3,1977, in the 

Federal Register, the Commission reaffirmed that separate 

contribution limits apply to primary and general elections, 

including contributions made in the post-election period to 

retire 1976 campaign debts. Stating that "post-election 

contributions made to the extent of the outstanding debt 

will be presumed to be made with respect to the general 

election;'' the Commission nevertheless recognized that 

"there may be situations where a candidate or his or her 

committee finds it advantageous to raise funds from donors 

who have not 'used up' their contribution limits from the 

primary or the general election or both." In that instance, 

a committee may accept contributions designated to retire 

a specific debt. The policy statement prescribed the following rules governing contributions made to Senate and 

House candidates -- not Presidential -- in the post-election 

period. 

General Rule 

1. In cases where a candidate was in a general election, 

contributions made after the general election to retire 

debts will generally be regarded as contributions to the 

general election and will be charged against the donor's 

general election I imit. 

2. Contributions made after the general election specifically to retire a primary or general election debt must be 

designated by the donor for the specific election and 

count against the limits for that election. 

3. Campaign committees which allocate their outstanding 

debts between the primary and general elections must 

submit separate reporting schedules itemizing the two 

debts and indicating the election for which each contribution has been designated. 

January 1977 

Contributions Made Before, But Received After, 

Debts Are Retired 

1. Contributions designated for a specific debt which are 

made before, but received after, that debt has been retired may be applied to the outstanding debt of. either 

election. 

2. Contributions made before, but received after, both 

debts have been extinguished may be regarded' as excess 

campaign funds and utilized for any lawful purpose. 

Contributions Made and Received After 

All Debts Are Retired 

1. Contributions made and received after all campaign 

debts have been retired may be considered donations to 

an office account or contributions to a future election 

campaign. 

2. In either case, the donor must designate the purpose of 

his/her contribution. 

3. If a candidate wants to "carry over" these excess campaign funds to a future Federal campaign, he must use 

a "last-received, first carried-over" rule to identify the 

donors. This means that funds carried over are presumed 

to be the contributions most recently received. COntributions applied to a future campaign must be authorized 

in writing by the contributor and charged against his/her 

limits applicable to that election. 

FINAL 1976 REPORT DUE ON JANUARY 31 

Candidates and political committees must file a fourth 

quarter report if they have any outstanding debts, even if 

they have not raised or spent more than $1,000 dUJing the 

quarter. This report, required in addition to the post· 

election report if debts remain outstanding, covers all transactions since the date of the close of books for the postelection report through the end of the year (i.e., November 

23 through December 31, 1976) and is due January 31, 

1977. 
ADVISORY OPINIONS: 

SUMMARY OF 1976 AO's and Re: AOR's 

Once the Federal Election Commission submitted its 

proposed regulations to Congress on August 3, 1976, it 

resymed 1ssuing opinions adyising candidates, political committees and Federal officeholders on how to interpret the 

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

Until Commission regulations are officially promulgated, 

the Commission will continue to issue two types of opinions: 

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

the application of the Act to specific factual 

situations. Any person requesting an advisory 

opinion who in good _faith acts in accordance 

with the findings of the opinion will not be 

Penalized under the Act. The opinion may also 

be relied upon by any other person involved in 

a specific transaction which is indistinguishable 

in all material aspects from the activity dis· 

cussed in the advisory opinion. 

2. Informational Responses to Advisory Opinion 

Requests, designated as Re: AOR's, differ from 

AO's in that they are based in part on the 

Commission's proposed regulations and they 

offer no legal protection to recipients until the 

regulations on which they are based go into 

effect. 

Requests for advisory opinions are made public in the 

Federal Register. The opinions themselves are available at 

the Commission. This issue of the RECORD summarizes 

selected opinions issued in 1976 and, beginning with the 

February issue, the RECORD will publish synopses of all 

opinions. 

The AO's and Re: AOR's summarized below have been 

selected because they include new language that clarifies 

the Act or proposed regulations. They are intended to serve 

only as an index to the opinions. Those seeking guidance 

for their own activity should consult the full text of an 

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

AO's and Re: AOR's are available from Information Ser· 

vices, Federal Election Commission. Please identify opin· 

ions by number as, for example, AO 1976-83 or Re: AOR 

1976·98. 

AO 1975-132: Paymentfor Tabulating 

Congressmen's Questionnaires 

Payment by a multicandidate political committee for tabu~ 

lating responses to a Congressman's questionnaire sent 

under the frank _is not considered a contribution, as long as 

the tabulation is provided to aid the Congressman in the 

performance of his/her official duties ·• and not to influ· 

ence an election. 

2 

AO 1975·143: Criteria for Determining Common 

Control of Political Committees 

The independence of Environmental· Action (a cit

lobby) vis·a·vis the Dirty Dozen Campaign Commit

political committee) was not established because: se

executive posts in both organizations are occupied b

same individual; finances of both organizations are 

tored by the same person; and staff of the political co

tee contribute to the magazine published by the lob

group. 

Re: AOR 1976-10: Act Preempts State Law on 

Use of Excess Campaign Funds 

When a Federal candidate in Kentucky uses excess 

paign funds for a purpose specifically stated in the s

or proposed regulations, the Act preempts Kentucky 

law with regard to the use of excess campaign fund

Federal candidates or their authorized committees. 

Re: AOR 1976-14: Contributions by County 

Party Committee 

The decision of the Michigan State Republican Comm

to accept responsibility for ensuring that the entire 

organization stays within the expenditure limits (2 U

441a(d)) does not, by itself, affect the ability of an o

wise independent county commi_ttee to contribute 

the maximum (in this case, $5,000 per election) to 

Federal candidate. 

Re: AOR 1976·15: Reporting Requirements of 

Subordinate State Party Committ

If a congressional district club of the Washington 

Republican Federal Campaign Com.mittee (WSR

receives and retains contributions aggregating over $

or expends over $1,000 iil connection with any Fe

candidate's election, the club is considered a political 

mittee under section 431 (d) of the Act and requir

register and file its own reports. If, on the other han

club merely serves as the receiving agent for the State 

mittee and transfers to it all its proceeds in a t

fashion, it is not required to file separate reports. It 

however, keep records for any contribution over $5

turn such information over to the WSRFCC withi

days after the receipt of a contribution. 

Re: AOR 1976·20: Contributions to an Unauthorized 

Single Candidate Committee 

Contributions to Delaware Volunteers for Reaga

unauthorized single candidate committee making ind

dent expenditures on behalf of Governor Reagan, are 

dered contributions to Governor Reagan. The comm

could not, therefore, accept contributions from pe

who had already contributed their maximum to Gov

Reagan's campaign. 

Re: AOR 1976·22: Use of Bingo Proceeds. to 

Influence Federal Elections 

The transfer of funds from the Michigan Democratic P

"bingo account" to its "Federal account" is permitted 

if the bingo account contains no corporate or union c

butions and all bingo players are informed that a porti

the purchase price of the bingo card counts against the 

vidual's contribution limits under the Act. Additionall

committee must comply with recordkeeping and repo

requirements, and all materials advertising the bingo 

must state that party reports are filed with the FEC. 
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Re: AOR 1976-23: Payroll Deduction Plans Preempt 

State Laws; Solicitations by 

Corporate PACs 

The Act preempts those State laws which prohibit any use 

of payroll deduction plans. A corporation is required to 

give the labor organization representing its employees (or 

an independent mailing service)_ a list of the names and 

addresses of all its employees only if the corporation soli~ 

cits its lower eschelon employees under the twice-yearly 

provisions. 2 U.S.C. 441 b(b)(4)(B). 

AO 1976-27: Solicitations by Trade Association PAC 

When soliciting contributions at its annual meeting, Bread 

PAC, a trade association political action committee, must 

obtain prior approval from its member corporations before 

it may solicit their stockholders and executive or administrative personnel. "Solicitation" includes asking persons to 

purchase tickets to fundraisers (in this case, a cocktail 

party) and informing persons about the fundraiser. Solicita· 

tions conducted prior to or at the meeting may only be 

aimed at persons whom Bread PAC may legally solicit. 

(See also AO 1976-96.) 

Re: AOR 1976-29: News Distributed by Newspaper or 

Station Owned by Federal Candidate 

Campaign-related news accounts distributed by a publication or station owned by a Federal candidate are not subject to the Act's limits, prohibitions or reporting requirements, as long as the news accounts represent bona fide 

news and the media gives reasonably equal coverage to all 

opposing candidates. Commentaries and editorials favorable 

to the candidate or unfavorable to his/her opponent would, 

·however, be considered a contribution-in-kind made by the 

media to the candidate or an illegal corporate contribution 

if the media were incorporated. 

Re: AOR 1976-31: Donation of Membership List 

May Not Be A Contribution 

A list of the membership of a local congregation is not 

considered a contribution as long as it has never been sold 

or leased, e.g., to ·a mail order marketing company, a magazine or to another political candidate. 

Re: AOR 1976-37: Criteria for Determining Contribution 

Limits for State Subordinate 

Party Committees 

The fact that various subordinate groups within the 

Minnesota Democratic Farmer Labor Party (MDFLP) may 

engage in joint fundraisif!g activity does not, in itself, prevent each committee from establishing its independence in 

order to have its own contribution ceiling. 

Any subordinate committee which has demonstrated its 

independence may qualify as a "multicandidate political 

committee" once it has satisfied all three criteria under 

2 U.S.C. 441a(a)(4). If, however, the various committees 

within the MDFLP structure fail to establish their independence and are therefore considered one committee with the 

MDF LP for purposes of making contributions, they are 

automatically considered multicandidate committees if the 

State committee has already qualified as a multicandidate 

committee. 

AO 1976-50: T -Shirts as a Corporate Contribution 

A corporation may not underwrite the production and 

marketing expenses of a T-shirt and then transmit a 

$1.00 contribution to a given Federal candidate for every 

T-shirt sold. 

AO 1976-51: Group of Contributors 

Constitutes Political Committee 

A group of individuals bound by common concern about 

foreign policy, personal friendship and periodic communication concerning lobbying efforts constitutes a political 

committee when it collects and transmits to a Federal candidate or committee contributions exceeding $1,000. The 

individuals who make contributions to this committee, and 

the committee itself, are each subject tO contribution 

limits. 

AO 1976-53: Principal Campaign Committee May Pay 

for Candidate's Living Expenses 

A principal campaign committee may rent office space in 

the candidate's home and pay for the candidate's groceries

heat, mortgage, etc. Such expenditures must, however, be 

reported by the principal campaign committee. 

Re: AOR 1976-56: Complimentary Hotel Accommodations 

May Not Count as Contributions 

Complimentary accommodations given to Federal candi

dates by Nevada hotels are not considered contributions as 

long as the accommodations are provided in the ordinary 

course of business (described specifically in the opinion) 

and are not offered in a partisan manner to select candi

dates. 

Re: AOR 1976-59: Honoraria and Related Expenses 

There is no limit on the amount of honoraria and related 

expenses received by Federal candidates who are no

simultaneously Federal officeholders. In the case of a 

candidate who is a Federal officeholder, the payment o

"related expenses" in connection· with a speech or appear

ance is not limited, as long as the payment is made only 

to defray actual travel and subsistence costs. 

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

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

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

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

For more information, ca/1382-4733 or toll free 800-424-9530. 

3 
Re: AOR 1976-63: Fundraising by Trade Association 

and its PAC 

The American Hotel and Motel Association (AH&MA), a 

federation of trade associations, and its political action 

committee AHMPAC may solicit its noncorporate members 

(and the noncorporate members of its State and regional 

associations), but not the families, executive and administrative personnel or other employees of the noncorporate 

memberS. 

While AH&MA, as a trade association, may solicit (or have 

AHMPAC solicit) executives, administrative personnel and 

stockholders (and their families) of its member corporations, it may not solicit the other employees of its member 

corporations. It may, however, solicit all of its. own employees: Executive and administrative personnel (and their 

families) may be solicited at any time and other employees 

may be solicited in writing twice a year. 

Corporate members of AH&MA and of its State or regional 

associations may not make any solicitations on behalf of 

AHMPAC. However, once a member corporation grants 

approval to AHMPAC for soliciting its employees or stockholders, it may 9ive incidental aid to such solicitations. 

This restriction does not apply to sole proprietors or 

partnerships which are members of a State or regional 

association of AH&MA They are free to solicit their employees or partners on behalf of AHMPAC. 

Once a member corporation grants approval to solicitation 

by the trade association, there is no limit on the number of 

solicitations that may be made (unless the corporation has 

specified a limit in its original approval). 

Re: AOR 1976-65: Corporate Advertising 

in Party Magazine 

Corporate payments for advertising, used to defray the 

costs of preparing and distributing a magazine published by 

the Republican Executive Committee of Jefferson County, 

a registered political committee, are considered an illegal 

corporate contribution. The publication may, however, 

carry a corporate advertisement as long as the payments 

for the ad are not used to defray publication costs and are 

received by a separate committee established to raise and 

spend funds exclusively for non-Federal purposes. If the 

publication contains no specific or general reference to 

Federal candidates, corporate funds contributed to the 

non-Federal committee may be used to pay for the maga· 

zine costs. 

Re: AOR 1976-72: Allocation of Party Overhead and 

Operating Expenditures Between 

Federal and Non-Federal Activities 

Any method which uses ballot positions to determine the 

allocation of party overhead and operating expenses 

between Federal and non-Federal activities should give proportionately more weight to Federal candidates than to 

State candidates. Thus, in Illinois where 15 percent of the 

1976 elections were for Federal offices, the Illinois Republican State Central Committee (I RSCC) should allocate 

one third of its overhead to Federal activities and two 

thirds to non-Federal. Additionally, unless the party com-

.mittee establishes a separate committee for State and local 

4 

candidates, the I RSCC may not receive corporate con

tions. In any case, corporate and union treasury fund

not be used to fund any portion of a registration or ge

the-vote drive conducted by a political party. 

AO 1976-73: Designation of a Single Separate Segreg

Fund by Two Organizations; Corporate 

Division as Sponsor of PAC 

The Political Committee for Design Professionals ma

be the separate segregated fund of two distinct org

tions. A division of a corporation, not separately 

porated, may not establish and administer a separate 

gated fund unless that fund is designated for the co

tion. 

Re: AOR 1976-78: Candidate's Use of Campaign But

to Support Multiple Candidates 

Congressman Koch's principal campaign committee 

purchase and distribute campaign buttons reading "C

Mondale-Koch" without the cost counting as a con

tion-in-kind to the Carter/Mondale Presidential camp

(See also Re: AOR 1976-82 andRe: AOR 1976-93.) 

Re: AOR 1976-80: Definition of 

Subordinate Party Committee 

Democrats United (Texas) is considered a subordinate 

committee because even though it was not formed, d

ed or controlled by the State or local Democratic E

tive. Committee, it supports the entire Democratic 

and provides services normally performed by party o

zations {e.g., voter registration, precinct organiz

central campaign headquarters, media advertising fo

ticket, get-out-the-vote campaigns). 

Re: AOR 1976-82: Candidate's Use of Brochure 

Supporting Multiple Candidates 

Congressional candidate Walgren's principal campaign 

mittee may purchase and distribute a brochure featu

picture of Presidential candidate Carter and can

Walgren without counting the cost as a contribution-in

to the Presidential nominee. As a general rule, how

such an expenditure (unless paid out of public 

received by the Presidential nominee) would be i

(See also Re: AOR 1976-93.) 

Re: AOR 1976-84: Family Payments to Candidate 

to Support Candidate's Living Exp

Payments by family members to defray living expense

Federal candidate who has depleted his personal 

because of time spent campaigning count as contribu

These funds must, therefore, be disclosed and ma

exceed $1,000 per donor, per election. 

AO 1976-86: Billboard Advertising 

The continuation of a billboard display (supporting a 

eral candidate) beyond the contractual period doe

constitute an illegal corporate contribution by a bil

company if, in its ordinary course of business, the com

continues one client's·display until a new advertisem

contracted as a replacement. 
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• 

• 

Re: AOR 1976-87: Spending by Subordinate 

Party Committee on Behalf 

of Presidential Campaign 

The Montgomery County Democratic Central Committee 

(Maryland) may not spend more than $1,000 for a publication identifying Presidential, Vice-Presidential, Senatorial 

and Congressional candidates unless it is reimbursed for the 

costs exceeding $1,000 by other committees or candidates 

benefitting from the brochure. The difference between 

$1,000 and the actual publication costs may be reimbursed 

by either (or both) the Presidential campaign or the Democratic National Committee. Alternatively, the Senate and 

House candidates could reimburse the county committee 

for the cost of the proportionate share of the brochure 

devoted to their respective candidacies. 

Re: AOR 1976·92: Corporate Pledge Program 

is a Political Committee 

The Civic Pledge Program (CPP) of the Boeing Company, a 

membership organization composed of Boeing's management employees and administered by an advisory group, is 

considered a political committee. Members, who may 

receive recommendations from the advisory group, contribute to candidates of their choice largely through a payroll 

deduction plan. Any amount disbursed to a candidate is 

regarded as a contribution by the individual member and 

also by CPP. It is subject to reporting regulations applicable 

to earmarked contributions. 

Re: AOR 1976-93: Candidate's Use of Advertisements 

Supporting Multiple Candidates 

Congressional candidate Mitchell is not required to report 

the distribution of old campaign posters affixed with 

Carter/Mondale and Sarbanes (Senate candidate) bumper 

stickers, which he obtained at no expense. 

If candidate Mitchell pays for a newspaper advertisement 

picturing himself with Carter and Sarbanes,.a portion of the 

expense would be considered a contribution-in-kind to each 

of the other two candidates. Under the Act's public financing provisions, that portion attributed to the Presidential 

candidate would be illegal. The advertising costs allocated 

to the Presidential candidate could, however, be absorbed 

by the Presidential campaign or a party committee. 

AO 1976-95: Definition of National Party Committee 

The Liberal Party Campaign Committee for 1976 does not 

qualify as a national party committee because its operations 

have historically focused on the State and city and it has 

not demonstrated sufficient activity on a·nationallevel. 

AO 1976-96: Fundraising by Trade Association; 

Definition of Solicitation 

A "solicitation" is made when Savings Bankers, a trade 

association, announces the activities of its political action 

committee at its annual meeting or when it informs those 

attending the meeting about a booth it has set up on the 

premises to display fundraising materials. Such solicitation 

activities require prior approval from corporate members 

whose representatives attend the trade association meeting. 

5 

AO 1976-100: All Principal Campaign Committees 

Must Register and Report 

Each candidate for Federal office must designate a princ

campaign committee even if the candidate does not pla

use the committee to receive or expend funds. The pr

pal campaign committee must register and report regard

of the amount of contributions received or expendit

made. 

Re: AOR 1976-101: Contributions Made to Retire Deb

of 1976 Campaigns; Transition Co

After the general election, a person who has not alr

contributed up to the applicable limit for the primar

for the general election may make a contribution to Se

candidate Moynihan to retire a debt incurred in e

election, but only to the extent that the amount does 

exceed net debts outstanding from the election. 

contribution made after the general election which is 

designated for a specific election is considered a contr

tion to the general election. Funds contributed to 

general election may, however, be used to retire the d

incurred in either election. 

While campaign funds may be used to pay for "trans

costs" (e.g., staff, headquarters, supplies, etc.) even if d

are remaining, the Commission recommends that candid

not use campaign funds for such purposes until all 

paign debts have been retired. A Senator-elect is consid

an officeholder and may, therefore, accept unlimited d

tions to an office account and utilize such funds in 

transition period. Such donations must be distingui

from contributions made to retire a campaign debt. 

Re: AOR 1976·102: Rules on Expenditures and 

Contributions by Partnerships 

Funds expended by a partnership to establish, admin

and solicit funds to a separate segregated fund (the com

tee) are considered contributions-in-kind from the par

ship to the committee. Accordingly, they may not ex

$5,000 in a calendar year and are reportable by the 

mittee. Administrative costs exceeding this amount w

have to be defrayed with funds contributed to the com

tee. 

Re: AOR 1976-106: Employee/Participants in 

Stock Option Plan 

Not Considered Stockholders 

Employees who choose to participate in the Continenta

Company's Employee Stock Ownership Plan (ESOP) 

not considered stockholders because they do not re

cash dividends. They may not, therefore, be solicited 

voluntary contributions to the Company's PAC (ex

under the special "twice-yearly" provisions}. 
INFORMATIONAL LETTERS: 

SUMMARY OF 1976 0/R's and 1/C's 

Informational letters, designated as either 1/C's or 0/R's, 

are responses from the legal staff to queries from individuals who lack legal standing to obtain an advisory opinion. 

Although these letters are reviewed by the Commissioners, 

they do not offer the legal protection afforded by formal 

advisory opinions. The selected synopses below have been 

included because they demonstrate how the Commission 

has interpreted the Act in specific situations. Requests for 

the full text of a letter should be addressed to Information 

Services, Federal Election Commission. Please identify the 

Information Letter by number as, for example, 1/C 501 or 

0/R 714. 

1/C 354: Partisan Forums Constitute Political Committee 

The fact that the Houston Democratic Forum (HDF), an 

unincorporated association of individuals, sponsors forums 

addressed only by nationally prominent Democrats indicates a partisan purpose to ultimately influence Federal 

elections. HDF therefore constitutes a political committee 

(if it also raises or spends more than $1,000 during the 

calendar year} subject to registration and reporting obligations under the Act. 

1/C 544: Activities Which Constitute Campaign 

Expenditures or Contributions 

When the Sierra Club Committee on Political Education 

(SCCOPE) publishes and distributes to the general public 

the voting records of Federal candidates, together with 

SCCOPE's tabulations of approved and disapproved posi· 

tions, SCCOPE has made a campaign expenditure. Either of 

the following activities by SCCOPE also constitutes a cam· 

paign expenditure if it is conducted to influence the outcome of a Federal election: Publication and public distribution of Federal candidates' responses to a SCCOPE questionnaire; publication and distribution to the public of profiles evaluating Federal candidates' credentials as conservationists. 

Donations made by SCCOPE to multicandidate committees 

supporting Federal candidates count as contributions even 

if they are earmarked to defray administrative costs only. 

Sierra Club's sale of fts membership list to selected candidates, however, is not a contribution since the list is not 

normally sold and has no usual price. 

0/R 660: Corporate Contributions to 

Non-Profit Educational Organization 

A corporation under contract with the Federal government 

may make contributions to the Educational Fund of the 

League of Women Voters (LWV) for the purpose of informing the public as to the need for nuclear power since LWV 

is a nonprofit educational organization prohibited by its 

bylaws from endorsing candidates for public office and 

from conducting partisan educational activities relating to 

political campaigns. 

6 

0/R 665: Requirements for Secretaries of States 

to Keep FECA Records 

The Kentucky Secretary of State is required to retain 

copies of complete reports of the following politica

committees and persons already required to report unde

the Act: political committees (other than those exclu

sively supporting Presidential candidates) making expen

ditures (including a contribution to a Kentucky candidate

in Kentucky; persons making independent expenditures in 

Kentucky; Presidential candidates making expenditures in 

Kentucky. 

0/R 682: Use of Corporate Funds 

for Internal Communications 

A corporation may use general treasury funds to finance 

any type of communication to its stockholders and execu

tive or administrative personnel and their families. With 

regard to communications sent to all its employees, how

ever, a corporation may not use treasury funds to pay fo

partisan publications, such as a candidate profile favoring 

one Federal candidate over another or an analysis of legis

lation if its purpose is to encourage readers to vote for o

against the sponsor-candidate. 

0/R 697: Communications by Corporation 

to Bondholders 

The right of a corporation to use treasury funds to com

municate with its stockholders and executive or administra

tive personnel (or their families) does not extend to com

munications with the corporation's bondholders. 

0/R 701: Corporate Distribution of Nonpartisan Voter 

Registration Information 

A corporation may provide voter information (as distinc

from participating in a voter registration drive) by includin

official voter registration-by-mail forms in its monthly bi

lings, as long as these forms are produced for public distri

bution by election officials. The distribution must, how

ever, be nonpartisan, avoiding any promotion of a particu

lar party. In addition, a corporation may furnish vote

registration information by providing space for a table

rack or booth from which official forms are distributed t

the general public in a nonpartisan manner. 

0/R 708: Trade Association Solicitation 

of Noncorporate Member Partnerships 

The Securities Industry Association, Inc. (SIA), a trad

association, may ask its noncorporate member partnership

to solicit their partners and employees on behalf of a sepa

rate segregated fund established by SIA. Contributions b

partners from nonpartnership funds or by staff employe

by the partnership need not be aggregated and charge

against a single contribution limit. (See also Re: AOR 

1976-63.) 

0/R 715: Rules Governing Expenditures by State 

and Subordinate Party Committees; 

$1,000 Presidential Expenditure 

Generally, costs for registration or get-out-the-vote drive

of party committees need not be attributed to individua

candidates, as long as the activity is not made on behalf o

particular candidates. This remains true even if a part

identifies its candidates by using the slate card exemptio

in conjunction with a registration or get-out-the-vote drive. 
• 

• 

• 

Party committees which have established Federal campaign 

committees may allocate general operating costs between 

their Federal and non· Federal committees. 

Each State, county, city or congressional district committee 

may expend up to $1 ,000 to further the general election 

campaign of the party's Presidential nominee or a group of 

nominees including the Presidential candidate. The committee need not allocate the cost among candidates supported 

since the $1,000 expenditure limitation is over and above 

any other limitations. While committees may consult' each 

other or the nominees concerning the expenditure, they 

may not pool their limitations. Receipts and payments for 

the purpose of making the $1,000 expenditure may trigger 

registration and reporting requirements. 

0/R 747: Receipts and Disbursements Related to 

Congressman's ~~Appreciation Dinners" 

Receipts and expenses related to an "appreciation dinner" 

given for a Congressman count as reportable contributions 

and expenditures when the officeholder's candidacy is 

expressly or implicitly advocated. 

0/R 755: Party Expenditures on Behalf of Candidates 

and Party Contributions to Candidates 

Payments by a State party committee for the salaries of a 

Senate candidate's campaign staff may be handled in one of 

two ways. They could be made as an expenditure on behalf 

of the candidate and charged against the party spending 

limits of 2 U.S.C. 441a(d). Or they could be made as a 

contributionwin-kind and charged against the State party's 

contribution limits . 

0/R 777: Permissibility of Independent Expenditures 

by Individual Previously Associated 

With Candidate's Campaign 

A prior association with a Presidential primary campaign 

would bar an individual from forming a political committee 

which would make independent expenditures advocating 

the election of the same candidate, particularly because the 

individual had "extensive involvement" with the campaign 

for more than six months and had been reimbursed for 

travel expenses. 

0/R 782: Contributions Through Double Envelope Plan 

The "double envelope plan," as proposed by the Central 

Vermont Public Service Corporation, would be prohibited 

under the proposed regulations because it identifies the 

corporation establishing the contribution plan. Under this 

scheme, employees would seal their personal contributions, 

together with a contribution card identifying the corporaw 

tion, within an envelope marked "XYZ Company Political 

Contribution Plan." The corporation's plan coordinator 

would, in turn, receive and forward the envelope to the 

designated recipient. 

0/R 784: Effect of the Act on Purely Commercial Activity 

The Act does not apply to commercial activity involving 

the identification of a Federal candidate (e.g., advertise· 

ment for digital watch identifying the two Presidential 

candidates) as long as it is pursued exclusively as a business 

venture without any connection to or contact with the 

candidate, his committee or agent. 

7 

0/R 786: Effect of Private Fundraising Parties on 

Contributions and Independent Expenditure

When individuals defray expenses (not exceeding $500 

host or $1,000 per host couple) for a campaign·rel

party given in their home, the expenses are not report

even if guests are solicited to make unearmarked contr

tions to party committees and even if representatives 

Presidential campaign speak on campaign operati

0/R 789: Registration and Reporting Requirements 

for Party Committees 

If a State or subordinate party committee receives co

butions or makes contributions or expenditures 

influence Federal elections in an amount not excee

$1,000 per year, it need not register or report unde

Act. When, however, an individual contributes to su

committee for the purpose of influencing Federal 

tions, the contribution is charged against his/her $25

annual limit. 

0/R 790: Use of Corporate Funds to 

Publish Voting Records 

The U.S. Chamber of Commerce, a trade association, 

not use general treasury funds to distribute to nonmem

its ratings of how Senators and Representatives voted. 

distribution could, however, be financed from volun

contributions to a separate segregated fund or an indivi

or political committee could purchase and distribute 

ratings to interested parties. (See also 0/R 840.) 

0/R 791: Honorarium; Definition of ~~Appearance" 

A Federal judge may receive no more than the maxim

honorarium of $2,000 in consideration for a 48·h

"appearance" at a college where he makes several su

dinate speeches or appearances, including a formal add

remarks at one or two receptions and participation 

discussant in several classes. 

0/R 802: Post·Eiection Contributions Made By 

Multicandidate Political Committees 

A political committee expecting soon to qualify as a m

candidate committee may not pledge or promise more 

$1,000 to a candidate. If it qualifies as a multicandi

committee after the general election, the committee 

continue to make contributions up to a total of $5,000 

candidate per election, provided the candidate has 

standing campaign debts. If the candidate has no debts

post-election contribution may count as either a contr

tion to his/her next election or a donation to the of

account of the officeholder. 

0/R 804: Solicitations by Corporations and Labor 

Organizations: Mutual Obligations 

Twice a year, a labor organization representing emplo

at Alabama Power Company or its PAC may solici

writing the stockholders and executive or administra

personnel of the corporation, regardless of whether 

corporation or its PAC has exercised its twicewyearly r

to solicit employees generally. If the corporation make

solicitation of employees generally under the twicewye

provision, it is not required to give the names and addre

of its employees to the labor organization or an inde

dent mailing service (in connection with the union's tw
yearly solicitation). The corporation or its PAC must, however, make available to the labor organization any method 

it uses to solicit contributions from the company's executive or administrative personnel and stockholders (e.g., a 

computerized mailing system). 

0/R 812: Use of Check-Off by Incorporated 

Membership Organization 

Under the Act, it would be illegal for members of the 

Institute of Electrical and Electronics Engineers, Inc., an 

incorporated membership organization, to earmark a 

portion of their annual dues to a separate segregated fund 

by marking a box on their membership dues invoice. In 

effect, this check-off procedure would merely divert cor· 

porate treasury funds to a political fund to be used in 

connection with Federal elections. 

0/R 829: Reporting Obligations for Internal 

Communications by Labor Organizations 

A labor organization is not required to report the costS of 

preparing and distributing to members a 49-line letter con· 

taining a four-line postscript advocating the election of 

selected Federal candidates, as long as the letter is not pri· 

marily devoted to Federal election matters. 

0/R 838: Donations to the 1977 

Presidential Inaugural Com~:T~ittee 

Donations to the 1977 Presidential Inaugural Committee 

(the Committee) are nOt considered campaign contributions 

and are not subject to the reporting requirements or limitations of the Act. The Committee need not register with the 

Commission and may accept funds from the treasuries of 

national banks, corporations and labor organizations. Surplus funds, however, may not be transferred to any Federal 

candidate, political committee or party organization. 

0/R 840: Preparation and Distribution of Voter's Guide 

by Local Chamber of Commerce 

The Greater Winston-Salem Chamber of Commerce may 

prepare and distribute a voter's guide to the general public 

if the guide is nonpartisan and the Chamber does not en· 

dorse any Federal candidate or political party. If the 

Chamber is partisan, it ~auld still produce and distribute 

the guide to the public, but only by using voluntary 

contributions to a separate segregated fund. 

FEDERAL ELECTION COMMISSION 

1325 K STREET, NW 

WASHINGTON, DC 20463 

OFFICIAL BUSINESS 

WILLIAM C. OLDAKER 

APPOINTED GENERAL COUNSEL 

William C. Oldaker began serving as General Counsel of th

FEC on January 1, 1977. He replaced John G. Murphy, J

the Commission's first General Counsel, who returned 

his post as Professor of Law at Georgetown Universit

With the Commission since 1975, Oldaker has been Ass

tant General Counsel for Compliance and Litigation. 

Oldaker, who is 34, received his B.A. and J.D. degree fro

the University of Iowa and also attended the gradua

School of Business at the University of Chicago. Prior 

coming to the Commission, Oldaker worked as an attorne

advisor for the Federal Communications Commission an

in 1969, as special assistant to the Chairman of the Equ

Employment Opportunity Commission. In 1972, he w

appointed assistant regional attorney for the Equal Emplo

ment Opportunity Commission in Denver where he directe

the civil litigation efforts of the EEOC in various Southe

and Southwestern states. 

DISCLOSURE DIVISION CREATED 

The FEC has established a new division to systemize th

processing of incoming disclosure reports and the updatin

of the computer data base. The newly created Disclosu

Division includes "three units: 

1. Data Services, previously a part of the Division of 

Data Systems Development and Services; 

2. Public Records, formerly a unit of Information 

Services; and 

3. Reports Analysis, previously a subdivision of the 

Disclosure and Compliance Division. 

The division is headed by Assistant Staff Director Ke

Cooper, who formerly served as Deputy Assistant Sta

Director of Information Services. 

POSTAGE AND FEES PAID 

U.S. MAIL