THE FEDERAL ELECTION
COMMISSION

eCORD

20463

1325 K Street N

’ Vol. 2, No. 3—1976
SPECIAL SUPPLEMENTe DELEGATE SELECTION

Below is a comprehensive policy statement on the delegate selection process to the national Presidential nominating conventions,
approved by the Federal Election Commission February 10, 1976. This policy statement outlines any obligations these delegate
candidates may have in relation to the Federal Election Campaign Act, as amended.

if you have need for additional copies for distribution, or have any questions, please do not hesitate to contact the Commission by
writing at the above address or by calling Toll Free, Area Code 800/424-9530. (For local Washington, D.C. calls, dial 382-4733.)

Washington, D.

SYNOPSIS

These guidelines apply to all levels.of the delegate selection process: local, district, and State nominating conventions, caucuses, or
primaries. Where used in this text, the word “delegate” means a candidate for delegate at any stage of the selection process.

1. DELEGATE REPORTING. Costs for delegate travel and subsistence do not count as campaign expenses for purposes
of reporting or limits. A delegate is required to report (a) if he or she spends more than $100 for communications that
expressly advocate the election or defeat of a clearly identified Presidential candidate, or (b) if the delegate is financially
“authorized” by a Presidential candidate. A special short reporting form and instructions are available from the Com-
mission (FEC Form No. 5)

2. LIMITS ON EXPENDITURES AND CONTRIBUTIONS. For purposes of the Federal law, a delegate (or slate of delegates)
is considered to fall into either of two categories: (1) authorized by a Presidential candidate, or (2) unauthorized by any
Presidential candidate. As contributions and expenditure limits apply differently, or notat all, to these two categories, the
following guidelines should be examined for the distinctions between the two types.

3. PROHIBITED CONTRIBUTIONS. The general prohibitions on contributions by corporations, labor unions, national
banks and government contractors, on cash contributions over $100, and on contributions by foreign nationals apply to

delegates as well as Presidential candidates.

SPECIFIC APPLICATION TO DELEGATES, CONTRIBUTORS,
AND PARTY COMMITTEES.

1. The Authorized Delegate and His or Her Contributors
A. Who is an Authorized Delegate?

An “authorized delegate” is.a delegate (1) who is
authorized or requested by a Presidential candidate (or the
candidate's committee or agent) to receive contributions or make
any expenditure on behalf of the Presidential candidate; (2) who
is reimbursed by a Presidential candidate for any expenditures
made on behalf of the Presidential candidate; or (3) whose own
delegate fund-raising or spending is subject to direct or indirect
control by the Presidential candidate.

COMMENT: Financial authorization of a delegate by a
Presidential candidate is separate and distinct from any other
authorization or approval which may be required under party
rules or State law. The fact that a delegate has to secure the
approval of the Presidential candidate before he/she can appear
as a “Jones delegate” on the primary ballot does not alone
constitute financial authorization by the candidate.

Examples of actions which would constitute authoriza-
tion of a delegate include:

(a) The Presidential campaign transfers funds to the
delegate for use in the Presidential candidate's or the delegate's
campaign;

(b) The Presidential campaign publicly or privately
solicits contributions to a specific.delegate or slate;

(c) The Presidential campaign guarantees loans to or

~ for a delegate;

(d) The Presidential campaign directs or the
Presidential candidate and delegate jointly plan fund-raising,
advertising, or other campaign solicitation activities;

(e) A delegate is authorized to raise or spend funds on
behalf of that candidate.

B. What Requirements Apply to Authorized Delegates?
1. Expenditure Limits

There is no specific limit on expenditures by any
individual authorized delegate or slate. If the authorizing
Presidential candidate has accepted public matching funds, all
delegate expenditures, excluding travel and subsistence, count
toward that Presidential candidate’s national and State limits.
However, if the authorizing Presidential candidate finances his or
her primary campaign effort strictly from private monies,
delegate campaign expenditures are unlimited.

Since the authorized delegate in both cases acts in
effect as an “agent” of the Presidential candidate, the delegate
may not make any expenditures which are not specifically
authorized, reimbursed or otherwise directed by the Presidential
candidate or the candidate’s committees.

2. Contribution Limits

Contributions to an authorized delegate are
considered contributions to the Presidential candidate and count
toward the donor's $1,000 or $5,000 limit. Thus an individual may
contribute no more than $1,000 in total to a Presidential
candidate and all authorized delegates of that candidate.
Similarly, a political committee which is qualified to make $5,000
contributions may contribute no more than $5,000 in total to a
specific Presidential candidate and all authorized delegates of
that candidate.

Contributions to authorized delegates also count

toward the limit of $25,000 which an individual is permitted to
make in a calendar year.



3. Independent Expenditures

The decision in Buckley v. Valeo permits an
individual or political committee (other than a national or State
committee of a political party) to spend without limit to support or
oppose any candidate for Federal office so long as this is done
independently of the candidate or authorized delegate. Such
expenditures may be made to support or oppose either the
Presidential candidate or the delegate.

COMMENT: Generally, an “independent expenditure” is
characterized by a lack of direction or control by the Presidential
candidate or authorized delegate. Examples of independent
expenditures with respect to delegate campaigns include: (i) a
person places an ad in a local newspaper advocating the election
of a Presidential candidate or an authorized delegate without any
control, cooperation, consent or suggestion whatever, direct or
indirect, of the candidate or the delegate; (ii) an individual prints
bumper stickers and distributes them on his own initiative
without any control, cooperation, consent or suggestion
whatever, direct or indirect, of the Presidential candidate or
authorized delegate.
4. Reporting and Disclosure

Authorized delegates are required to report all
financial transactions to the Presidential campaign committee
rather than to the Federal Election Commission. Since the
authorized delegate is working closely with and under the
direction of the Presidential candidate's campaign, that
campaign committee may provide its delegates with its own
special instructions. However, the following requirements apply
to all authorized delegates:

(a) In order for contributions to authorized
delegates to qualify for primary matching funds, such
contributions must be made by check payable to the related
Presidential candidate.

(b) The authorized delegate must:

(1) Report to the Presidential campaign
committee all contributions .in excess of $10, including the
amount, name and address of the contributor, and the date
received, within five days after receiving the contribution.

(2) Report a contributor's occupation and
place of business, when that person's contributions total more
than $100.

(3) Transfer all contributions to the
Presidential campaign Committee in a reasonable time.

(c) Any campaign expenditure by an authorized
delegate (or on his/her behalf) must be made:
(1) By a check drawn on an account in the
Presidential candidate's campaign depository.
(2). In the case of any expenditure to one
person for $100 or less in connection with a single transaction,
from the Presidential committee's petty cash fund.

ll. The Unauthorized Delegate and His or Her Contributors
A. Who is an Unauthorized Delegate?

An unauthorized delegate is one who has not been
financially authorized by any Presidential candidate as explained
in |.A. As long as a delegate is not so authorized, it does not matter
whether or not he is declared as favoring a particular Presidential
candidate.

B. What Requirements Apply to Unauthorized Delegates?
1. Expenditure Limits

An unauthorized delegate is subjéct to no ceiling on
campaign expenditures. (Buckley v. Valeo). The expenditures of
unauthorized delegates do not count against any Presidential
candidate's State or national spending limits.

‘An unauthorized delegate may contribute $1,000
directly to a Presidential candidate. Expenditures for his/her
delegate campaign do not affect this contribution limit.

2. Contributions to an Unauthorized Delegate

A contribution to an unauthorized delegate counts
toward the $25,000 annual ceiling on all contributions by any one
individual.

Contributions to pledged-but-unauthorized dele-
gates do not affect the contribution which the individual or
organization may make directly to the Presidential candidate
supported by that delegate. Thus a donor may contribute the
legal limit ($1,000 for an individual, or $5,000 for a qualified
committee) directly to a Presidential candidate, and may
contribute to pledged-but-unauthorized delegates supporting
that same candidate in an amount which will not cause the donor
to exceed the $25,000 limit on total contributions

3. Reporting by Unauthorized Delegates and
Contributors to Unauthorized Delegates

(a) The following persons are required to report:

(1) An unauthorized delegate who spends
more than $100 for campaign communications that expressly
advocate the election or defeat of a clearly identified candidate,
not including costs for travel and subsistence. (An unauthorized
delegate whose expenditures do not expressly advocate the
election or defeat of a clearly identified candidate is not required
to report.)

(2) Any person who contributes more than
$100 in a calendar year to one or more unauthorized delegates.
(b) In reporting, each person above will observe

the following requirements:

(1) Reports must be filed with the Com-
mission. A short form and instructions (FEC Form No. 5) are
available from the Commission. “

(2) Reports must be filed for the calendar

quarter in which the $100 threshold is exceeded (deadlines for »

quarterly reports are April 10, July 10, October 10) and for
subsequent quarters in which further expenditures or contribu-
tions are made.

Il. Disclosure Obligations of Party Committees

Local, county, district, and State party committees need not
report administrative expenses incurred in connection.with the
sponsoring of conventions or caucuses at which delegates are
chosen to attend either the next stage in the State's delegate
selection processes or the national nominating convention

While delegate-selection conventions or caucuses. are not
“elections”, they are “in connection with” Federal elections, and
corporations, labor unions, national banks, foreign nationals and
government contractors are prohibited from making contribu-
tions and expenditures to finance the conventions or caucuses
in any respect.

Published by THE FEDERAL ELECTION COMMISSION, 1325 K Street, N.W., Washington, D.C. 20463.
Commissioners are: THOMAS B. CURTIS, Chairman; NEIL STAEBLER, Vice-Chairman; JOAN D. AIKENS;
THOMAS E. HARRIS; VERNON W. THOMSON; ROBERT O. TIERNAN; FRANCIS R. VALEO, Secretary of the
Senate, Ex-Officio; EDMUND L. HENSHAW, JR., Clerk of the House of Representatives, Ex-Officio.

Staff Director - Orlando B. Potter; General Counsel - John G. Murphy, Jr.; Asst. Staff Director for Admin-
istration - Robert Baker; Asst. Staff Director for Disclosure and Compliance - Drew McKay; Asst. Staff
Director for Information Services - Herb Koster; Editor - Carolyn L. Tillotson.

New Toll-Free Number: 800-424-9530. Press and Public Information Phone No. - (202) 382-3770. Public
Communications - (202) 382-4733. The Record - (202) 382-6531 and 382-3260.

GPO 900-716