FEDERAL ELECTION COMMISSION

FEC PUBLISHES NONFILERS

During November, the Commission published

the names of several campaigns that had failed to

file disclosure reports required by the election

law. See the chart below.

The election law requires the agency to publish the names of non filing candidates. Compliance actions against nonfilers are decided on a

case-by-case basis. The law gives the Commission broad authority to initiate enforcement actions resulting from infractions of the law, including civil court enforcement and imposition of civil

penalties.

December 1988 999 EStreet NW Washington DC 20463 Volume 14, Number 12

REPORTS DUE IN DECEMBER AND JANUARY

Candidate committees active in the 198

general election, as well as all registered PAC

and party committees, are required to file a post

general election report in December. Followin

the post-election report, the next report require

of all political committees will be the year-en

report, due January 31, 1989. To obtain mor

information, contact the Information Service

Division, 999 E Street, N.W., Washington, D.C

20463; or call 202/376-3120 or toll free 800/424

9530.

continued on p. 

Nonfilers

•

Candidate

Duke, D.

Fernandez, B.

Mann, P.

Cook, T.

Cordaro, R.

Cowles, J.

Cum mings, J.

Doukas, P.

Flake, F.*

Gelpi, M.

Gilleran, M.

Hickey, T.

Hussain, R.

Kuhle, M.

Lang,L.

Levitt, J.

Moye, H.

Pierpont, R.

Previdi, R.*

Racek, J.

Sutton, R.

Office State Report

Sought Not Filed

President Pre-Gen.

President Monthly

Senate MN Pre-Gen.

House NY Pre-Gen. TABLE OF CONTENTS

House PA Pre-Gen.

House CA Pre-Gen. REPORTS

House IN Pre-Gen. 1 Nonfilers

House NY Pre-Gen. 1 Reports Due in December and January

House NY Pre-Gen.

House OH Pre-Gen. 3 ADVISORY OPINIONS

House MA Pre-Gen.

House WI Pre-Gen. INFORMATION

House NY Pre-Gen. 7 Computer Access Programs

House FL Pre-Gen.

House OH Pre-Gen. COURT CASPS

House NY Pre-Gen. 8 FEC v. Roger Lee

House NC Pre-Gen. 8 FEC v, Augustine

House MD Pre-Gen. 8 FEC v. Thorton Township Regular

House NY Pre-Gen. Democratic Committee

House NE Pre-Gen.

House TX Pre-Gen. COMPLIANCE

9 MUR Summary

PUBLICATIONS

10 Free Reprints of Record Articles

11 INDEX

*Report wassubsequently filed.
December 1988 FEDERAL ELECTION COMMISSION Volume 14, Number 

1988 Congressional

Candidate Committees Active in

the General Election X

continued from p. 1

Type of Filer Post-General

Report (12/8)

Year-End

Report

(1/31/89)

x

Post-General Election Report: Quarterly Filers

The post-general election report is d

December 8 and must cover activity from 

close of books of the last report filed, or the d

of registration (whichever is later), throu

November 28, 1988. Committees that filed 

statement of last-minute activity not disclosed 

the pre-general election report (t.e., contributio

received or independent expenditures made j

before the general election) must disclose t

activity on the post-general election report.

If sent by registered or certified mail, 

post-general election report must be postmark

no later than December 8. Note that all PA

and party committees must file this repo

regardless of their election activity.

1Committees of Presidential candidates not

running in the general election have a choice of

filing a monthly report (due December 20) or the

post-general report.

ZReport not required if the Presidential candidate does not run in the general election.

3PACs and party committees that file on a

monthly schedule file the post-general election

report in lieu of the November monthly report.

1988 Congressional

Candidate Committees Not Active in

the General Election

1988 Presidential

Candidate Committees/$IOO,OOO+

1988 Presidential

Candidate Committees/Under

$100,000

Federal Candidate

Committees Active

in Other Years

PAC/Party Committees: Monthly

Filers

PAC/Party Committees: Quarterly

Filers

Xl

x

X

X

x

X

X

X

Post-General Election Report: Monthly Filers

In lieu of the November monthly repo

otherwise due in December, monthly filers m

file a post-general election report, due 

December 8. (See reporting requirements above

Year-End Report: All Filers

All registered committees must file a ye

end report, regardless of whether they w

active in 1988 elections. Due January 31, 19

the report must cover all activity from the clo

of books of the last report through December 

1988.

LOOKING AHEAD: CHANGE IN

Ffi.ING FREQUENCY

PACs and party committees that plan 

change their reporting schedule in 1989 (e

from monthly to semiannually) must notify 

Commission by SUbmitting a letter. A commit

may not change its filing frequency more th

once a year. 11 CFR 104.5(c).

WHERE REPORTS ARE Ffi.ED

Committees must file all reports and sta

ments simultaneously with the appropriate fede

and state officials. 11 CPR 108.5.

Filing with the Federal Government

1. The principal campaign committees of Ho

candidates and committees supporting or 

posing only House candidates file with 

Clerk of the House, Office of Records a

Registration, 1036 Longworth House Off

Building, Washington, D.C. 20515. 11 CPR 10

4(c)(3) and 105.1.

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

D.C. 20463. Commissioners are: Thomas J. Josefiak, Chairman; Danny L. McDonald, Vice

Chairman; Joan Aikens; Lee Ann Elliott; John Warren McGarry; Scott E. Thomas; Walter J.

Stewart, Secretary of the Senate, Ex Officio; Donnald K. Anderson, Clerk of the House of

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

(TDD For Hearing Impaired 202/376-3136)

2
December 1988 FEDERAL ELECTION COMMISSION Volume 14, Number 1

ADVISORY OPINIONS: SUMMARIES

-~ - ~,

, , ' . I 1 " " ~, '" • ,~ • \ ' ...

'./' " : ' _ I,." \ ':.1

.- ...- ... _- - -- ..__ .- - - _.. -- - 

ADVISORY OPINION REQUESTS

The following chart lists recent requests fo

advisory opinions (AORs). The fun text of eac

AOR is available to the public in th

Com mission's Office of Public Records.

AO 1988-33: State's Distribution of

Ballot Qualifying Fees

To State Party's Federal Account

The Republican Party of Florida (the state par

committee) may deposit in its federal account an

use for federal elections its share of ballot acce

fees paid by federal candidates. The fees, orig

nally paid by candidates to Florida's Departme

of State, are partially remitted by the Depar

ment of State to eligible parties.

The Commission also considered, but faile

to approve, several alternative approaches to th

state party committee's acceptance of remitte

ballot access fees paid by nonfederal candidat

from possibly impermissible sources.

When federal candidates pay ballot acce

fees, they must use funds that are permissib

under the Act. By contrast, nonfederal cand

dates may use impermissible funds to pay the

ballot access fees. Under Florida law, they ma

continued on p, 

Publisher's offer of 2,000 free politic

magazines to House campaign. (Da

made public: October 27, 198

Length: I page, plus 132-page suppl

ment)

PAC's plan to match donors' contrib

tions with donations to charitie

(Date made public: November 1, 198

Length: 2 pages, plus l l-page suppl

ment)

Status of law partners as governme

contractors for purposes of PAC sol

citations. (Date made public: Novem

ber 8, 1988; Length: 3 pages)

Subject

PAC solicitation of management 

corporation, SUbsidiary and license

of SUbsidiary; payroll deduction. (Da

made public: October 25, 198

Length: I page, plus 29-page suppl

ment)

1988-48

1988-49

1988-47

AOR

1988-46

HOW TO OBTAIN MORE INFORMATION

The Commission regularly mails reporting

forms and additional information to registered

committees. Instructions and forms for postelection reports were included in pre-election

reporting packets mailed out in early October

1988.

Questions and requests for additional forms

should be addressed to Information Services, Federal Election Commission, 999 E Street, N. W.~

Washington, D.C. 20463; or call 202/376-3120 or

toll free 800/424-9530.

3. All other committees, including the principal

campaign committees of Presidential eandidates, file with the Federal Election Commission, 999 E Street, N. W.~ Washington, D.C.

20463. 11 CPR 105.3 and 105.4.

2. The principal campaign committees of Senate

candidates and committees supporting or opposing only Senate candidates file with the

Secretary of the Senate, Senate Public Records,

Senate Hart Office BUilding, Room 232,

Washington, D.C. 20510. II CPR 104.4(c)(2)

and 105.2.

Filing with State Governments

I. The principal campaign committees of Congressional candidates must file a copy of every

report and statement with the Secretary of

State or the appropriate elections official of

the state in which the candidate seeks federal

office. II CFR 108.3.

2. The principal campaign committees of Presidential candidates must file copies of reports

and statements with the Secretary of State or

the appropriate elections official of the state in

which the committee makes campaign expenditures. These reports must contain all financial

transactions which apply to that state during

the reporting period covered. 11 CFR 108.2.

3. PACs and party commmittees making contributions or expenditures in connection with House

and Senate races file in the state in which the

candidate seeks election. The law requires a

copy only of that portion of the report applicable to the candidate(s) being supported. Committees supporting Presidential candidates must

file in the statels) in which the Presidential

committee and donor committee have their

respective headquarters.

•

3
December 1988 FEDERAL ELECTIOI\J COMMISSION Volume 14. Number 

use: (I) contributions from sources prohibited

under the Act (Le., corporations and labor organizations) and (2)' contributions in excess of the

Act's contribution limits.! .

Under the Act and FEC regulations, federal

political committees may not accept and use

impermissible funds for federal elections. Funds

may not be accepted either directly or indirectly

from prohibited sources. 2 U.S.C. SS44Ib(a) and

44Ib(b)(2). Furthermore, to ensure that impermissible funds are not used in connection with

federal elections, the Act and regulations impose

certain affirmative duties on political committees

active in federal elections. For example, a committee that finances both federal and nonfederal

election activities, such as the state party committee, must adopt one of two accounting methods that ensure that permissible funds are used

exclusively in federal election activities. See II

CFR 102.5(a). The Florida party committee chose

the alternative of establishing separate accounts

for its federal and nonfederal activities.

Thus, the state party committee's acceptance

and use of state funds consisting of federal candidates' ballot access fees complies with the Act's

requirements concerning the acceptance, deposit

and use of permissible funds for federal election

activities.

The Commission considered, but failed to

approve, several alternative approaches that

would have allowed the state party to deposit

some portion of nonfederal candidates' ballot' access fees in the party's federal account. (Date

issued: October II, 1988;Length: 7 pages)

AO 1988-38: Eligibility of Commodity Exchange's

Membership Classes for

Partisan Communications/PAC

Solicitations

The Chicago Board of Trade (CBOT), an incorporated membership organization that operates as a

federally-licensed commodity exchange, may mail

partisan communications to, and solicit contributions from, four types of CBOT members. (See

below.) These members are sufficiently related

to CBOT to be considered "members" under the

Federal Election Campaign Act and thus are eligible to receive the organization's partisan communications and PAC solicitations. By contrast,

four other types of CBOT members are not eligible to receive the organization's partisan communications and PAC solicitations because they

do not qualify as CBOT members. (See below.)

Under the Act and FEC regulations, an incorporated membership organization may make parlFlorida election laws impose a $3,000 limit

on a donor's contribution to a statewide candidate.

4

tisan communications to, and solicit contributio

from, those individuals and unincorporated orga

zations that qualify as its members. Commissi

regulations define a membership organizatio

members as "all persons who are currently sat

fying the requirements for membership" in t

organization. II CFR 114.l(e). To qualify as 

member, an individual must have "some relative

enduring and independently significant financ

or organizational attachment" to the membersh

organization. See FEC v. National Right to W

Committee 459 U.S. 197, 202, 103 S.C

552(1982). See also AOs 1984-22, 1984-33, 19

II and 1987-31.

Four of CBOT's membership classes meet t

membership standard because they:

o Are responsible for paying membership dues;

o Have certain rights in governing the organi

tion (e.g., the right to elect CBOT officers a

amend CBOT rules); and

o Hold only one membership per member.

As CBOT members, they are eligible to rece

partisan communications and contribution soli

tations from AMPAC/CBOT, CBOT's separate 

gregated fund. These members include the f

lowing categories:

o CBOT's full and associate members who a

individuals or noncorporate entities;

o CBOT's full and associate member-lessors (i

members who delegate their memberships 

others) who are individuals or noncorpor

entities;

o Individual members who have registered wi

CBOT for the benefit of their respective firm

but who nevertheless retain all membersh

rights and privileges under their names; and

o Unincorporated rums with full or associa

memberships. The firm, not an individual, has 

proprietary interest in the membership and r

tains rights and responsiblities.

Those who do not qualify as CBOT membe

and are, thus, ineligible to receive CBOT's par

san communications and PAC solicitations inclu

the following categories:

o CBOT's full and associate member delegat

(Le., individuals who have leased membershi

from full or associate members). (See abov

Under CBOT rules, these individuals do n

obtain the membership rights and privileges 

those from whom they lease memberships. R

ther, the lessors retain substantial membersh

rights and obligations, including: (I) the rig

to vote for CBOT officers and (2) liability, wi

delegates, for dues payments.

o Individuals who represent rums that have ves

ed memberships in CBOT. In contrast to indiv

duals who register with CBOT for the benefit 

their firms (see above), these individuals reta

rights and r'esponsibilities only at the su

ferance of the firm. Their firms may transf

the membership and have proprietary intere

in the memberships.
December 1988 FEDERAL ELECTION COMMISSION Volume 14, Number 1

•

•

•

AO 1988-39: Ineligibility of Individuals with

Leased Memberships for

Solicitations by Exchange PAC

The Commodities Futures Political Fund (CFPF),

the separate segregated fund of the Chicago Mercantile Exchange (CME), an incorporated membership organization that operates as an exchange

for futures trading, may not solicit individuals

who have temporarily leased one of three types of

CME memberships. These lessees are not sufficiently related to CME to be considered members,

under the Federal Election Campaign Act (Act)

and thus cannot be solicited. CFPR may, how:

ever, solicit contributions from these individuals

and unincorporated organizations that qualify as

CBOT members. 2 U.S.C. S44Ib(b)(4)(C).

Commission regulations define a membership

organization's members as "all persons who are

currently satisfying the requirements for membership in the organization." 11 CFR 114.I(e).

To qualify as a member, an individual must have

"some relatively enduring and independently significant financial or organizational attachment" to

the membership organization. See FEC v.

National Right to Work Committee, 459 U.S. 197,

202, 103 S. Ct. 552(1982). In determining if a

class of members is sufficiently related to the

organization to qualify for PAC solicitations, the

Commission has considered whether: (I) the member has some right to govern the organization, (2)

the member pays regular dues and (3) each

membership in the organization is held by only

one member. See also AOs 1984-22, 1984-33,

1985-11 and 1987-31.

Individuals who temporarily lease aCME

membership do not meet this standard and thus

are ineligible for CFPF solicitations. Under CME

rules, lessees do not have the right to vote in

CME elections or on CME referenda; these rights

are retained by CME members who lease their

memberships (Le., lessors). Further, even though

a member may have an agreement with a lessee

under which the lessee pays the member's CME

dues, the member is still billed for these dues and

is responsible for paying them. Finally, the lessor

retains proprietary rights over his or her membership; the lessee's temporary "membership" issubject to the lessor's desire to maintain the lease

arrangement.

The Commission's conclusion in this opinion is

analogous to its conclusion in- AO 1987-31. (Date

issued: October 11, 1988;Length: 5 pages)

o Individuals with CBOT membership interests.

Their participation in CBOT's governance is

minimal. They may not vote for CBOT directors, principal officers or rules amendments.

o Incorporated entities that otherwise would qualify as full or associate members.

(Date issued: October II, 1988;Length: 8 pages)

5

AO 1988-41: Retiring Congressman's Disposal an

Reporting of 1988 Campaign Funds

On July 18, 1988, Congressman Samuel S. Stratto

announced that he would not seek reelection for 

16th term but would instead retire in Januar

1989. Prior to his retirement announcemen

Congressman Stratton held two fundraisers (

April 1987 and May 1988) to support his 198

reelection effort. Any undesignated contribution

received by his principal campaign committe

Stratton for Congress Committee (the Commi

tee), before July 18, 1988, are considered contr

butions to his 1988 primary campaign and coun

against that limit. 11 CFR 110.I(b)(2)(ii) an

110.2(b)(2)(ii); AOs 1980-30 and 1986-12. Thes

contributions, along with any contributions desig

nated for the 1988 primary, do not have to b

returned to the donors. Instead, they may be use

for a variety of lawful purposes. (See below.)

On the other hand, contributions receive

during 1987-88 that were designated for Co

gressman Stratton's 1988 general election must b

returned (or refunded) to the donors. See 11 CF

102.9(e)(2), 110.I(b)(3)(i) and 110.2(b)(3)(i); AO

1985-41 and 1986-12.

The Committee must report all disburs

ments of its 1988 campaign funds. (See proc

dures below.) Within 30 days of receiving th

advisory opinion, the Committee must also file a

amended report on which it discloses as "primar

contributions" all those undesignated contribu

tions received before July 18, 1988, for Congres

man Stratton's 1988 reelection effort. II CF

102.9(e). On previous reports, the Committee ha

mistakenly reported these contributions as "gen

ral contributions."

Primary Campaign Receipts

The Committee may use funds raised for th

primary campaign for any lawful expenditur

related to 1988 primary election activity.

The Committee may also use the funds 

make contributions to other 1988 candidate

However, its contributions to federal candidat

are subject to the election law's $1,000 per cand

date, per election limit. The Committee cou

also become a multicandidate committee with 

contribution limit of $5,000 per candidate, p

election. 2 U.S.C. S44Ia(a)(4). If the Committe

chose this route, it would have to amend i

Statement of Organization, identifying itself as 

nonconnected political committee. See AO

1985-30 and 1987-11.

Finally, the Committee may use any remai

ing excess campaign fundsl of the 1988 prima

campaign to pay expenses that Congressm

Stratton incurs in connection with his remainin

duties as a federal officeholder. 2 U.S.C. S439

Congressman Stratton may also use excess cam

paign funds for personal purposes. Although th

continue
December 1988 FEDERAL ELECTIOI\J COMMISSION Volume 14, Number 1

election law prohibits candidates from converting

excess campaign funds to personal use, this prohibition does not apply to individuals, such as Congressman Stratton, who were Members of Congress on January 8, 1980. Excess campaign funds

used for personal purposes may, however, be subject to state laws.

Reporting Procedures

The Committee must report disbursements of

its 1988 campaign funds as follows:

o Refunded contributions must be reported as

"offsets,II , '

o Payments for Congressman Stratton's federal

officeholder expenses must be reported as

"other disbursements."

o Contributions to other candidates and committees must also be reported as "other disbursements."

See generally 11 CFR 104.3(b). (Date issued:

October 18, 1988;Length: 4 pages)

AO 1988-42: Official Name for PAC Jointly

Established by Two Oorporatlons

Two affiliated corporations may not name their

jointly established separate segregated fund "Atlantic Marine and Atlantic Dry Dock PAC." This

proposed name fails to include the full name of

each corporation.

Under the election law and FEC regulations,

the official name of a separate segregated fund

must include the full name of its sponsoring

corporation(s). 2 U.S.C. §432(e)(5); 11 CFR

102.14(c). Thus, to comply with this requirement,

the corporations must change the name of their

joint PAC to "Atlantic Marine, Inc., and Atlantic

Dry Dock Corp. PAC." (Date issued: October 13,

1988;Length: 2 pages).

AO 1988-43: National Organization

Not Responsible for

State Members' PACs

The American Society of Anesthesiologists (ASA),

a national membership organization for anesthesiologists and interested physicians, has no obligations under the election law and FEC regulations

with respect to the activities of separate

segregated funds (t.e., PACs) established by two

of ASA's "state component societies." (These

state members are chartered by the national

organization's Board of Directors.)

lExcess campaign fl11lds are "amol11lts

received by a candidate as contributions which he

or she determines are in excess of any cmount

necessary to defray his or her campaign

expenses." 11 CFR 113.1(e)

6

Since ASA is not a PAC and has not esta

lished a PAC, the organization has no registrati

or reporting requirements. Nor does the electi

law impose any duty on ASA to review the PA

treasurers' compliance efforts. The treasurers 

the state component societies' PACs-not A

personnel-are responsible for ensuring that th

respective PACs comply with the election law a

FEC regulations,

The election law and FEC rules specify tha

PAC's treasurer is responsible for:

o Ensuring that the PAC registers and fil

required reports and statements;

o Keeping the PAC's records of financial activi

and

o Ensuring that the PAC accepts only those fun

that comply with the election law's contributi

limits and prohibitions.

The Commission noted that this opinion do

not address the issue of whether the two PA

established by ASA's state components a

"affiliated" under the election law. (Date issue

October 20, 1988; Length: 3 pages)

CHANGE OF ADDRESS

Registered political committees are

automatically sent the Record. Any change

of address by a registered committee must,

by law, be made in writing as an amendment to FEC Form 1 (Statement of Organization) and filed with the Clerk of the

House, the Secretary of the Senate, or the

FEC, as appropriate.

Record subscribers (who are not political committees), when calling or mailing in

a change of address, are asked to provide

the following information:

I. 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 mailing label. It

consists of three letters and five numbers. Without this number, there is no

guarantee that your SUbscription can

be located on the computer.
December 1988 FEDERALELECTION COMMISSION Volume 14, Number 12

•

•

•

~~ _~_ _ _ -- --- -~ __ r _

, I .", • I - 1 '

, f I \

." -

__ - _'_e _ _ _ _ _ _ _ _ __ _

COMMISSION EXPANDS COMPUTER ACCESS

TO CAMPAIGN FINANCE DATA

The Commission continues to broaden public

access to federal campaign finance information

centralized in the agency's Public Information

Office in Washington, D.C. The public now has

direct computer access to this FEC information

through the FEC-State Access Program and the

Direct Access Program (DAP). These programs

are described below.

FEC-State Access Program

The Commission and 15 state election offices

cooperate in making campaign finance information available to the public at computer terminals

located in these state offices.

The state offices follow basic disclosure procedures established by the Commission. However

each state office sets its own standards eoncerning the amount and types of campaign finance

information the office makes available.

The FEC makes available the following types

of data for use by the state offices:

o Indexes providing descriptive information on all

registered political committees, such as their

sponsoring organization, frequency of filing reports and multicandidate committee status'

o Indexes showing the total receipts and disb~rse­ ments of committees;

o Listings of all PAC· contributions to federal

candidates;

o An index listing individuals who have contributed $500 or more to federal candidates or

committeess; and

o A summary sheet on each candidate or PAC

showing total receipts and expenditures, cash

on hand and debts owed over a two-year election cycle.

States currently participating in the FECState Access Program are: Arizona Colorado

Connecticut, Georgia, Illinois, Iowa' Massachu~ setts, Michigan, New Jersey, New M~xico, Ohio,

Tennessee, Vermont, Washington and Wisconsin.

Addresses for the participating states'

election offices are listed below. A brochure on

the pro~ram is also available by calling the

Information Services Division on its toll-free

number, 800/424-9530.

Direct Access Program

Anyone living in the United States may establish a direct tie with the FEC's computer base

through the agency's Direct Access Program

(DAP). Subscribers have access to information

contained in formatted indexes as well as unformatted data. This information is available 24

hours a day, seven days a week, for a fee of $25

7

per hour. For a new brochure on DAP, call th

Press Office, 800/424-9530.

FEC-STATE ACCESS PROGRAM PARTICIPANTS

Arizona

Office of the Secretary of State

State Capitol, West Wing, 7th Floor

1700 West Washington

Phoenix, AZ 85007

602/267-8683

Colorado

Elections Division

Office of the Secretary of State

1560 Broadway, Suite 200

Denver, CO 80202

303/866-2041

Connecticut

Office of the Secretary of State

Room 115

30 Trinity Street

Hartford, CT 06106

203/566-3059

Georgia

Elections Division

Office of the Secretary of State

State Capitol, Room 110

Atlanta, GA 30334

404/656-2871

Illinois

State Board of Elections

Suite 14-100

100 West Randolph Street

Chicago, IL 6060I

312/917-6440

Iowa

Campaign Finance Disclosure Commission

507 lOth Street, 7th Floor

Des Moines, IA 50309

515/281-4411

Massachusetts

Division of Public Records

Office of the Secretary of State

170I McCormack BUilding

One Ashburton Place

Boston, MA 02108

617/727-2832

continue
December 1988 FEDERAL ELECTION COMrvllSSION Volume 14, Number 

Michigan

Elections Division

Office of the Secretary of State

4th Floor, Mutual Building

208 N. Capitol Avenue

Lansing, MI 48918

517/373-2540

New Jersey

New Jersey Election Law

Enforcement Commission

28 West State Street, Suite 1215

Trenton, NJ 08625

609/292-8700

New Mexico

Office of the Secretary of State

Room 400

Executive-Legislative Building

Santa Fe, NM 87503

505/827-3617

Ohio

Office of the Secretary of State

30 East Broad Street, 14th Floor

Columbus, OH 43266-6418

614/466-2585

Tennessee

Elections Division

Office of the Secretary of State

James K. Polk Building, Suite 500

Nashville, TN 37219-5040

615/741-7956

Vermont

Office of the .seeretary of State

Redstone Building

26 Terrace Street

Montpelier, VT 05602-2198

802/828-2363

Washington

Public Disclosure Commission

403 Evergreen Plaza, MS-FJ42

Olympia, WA 98504-3342

206/753-1111

Wisconsin

State Elections Board

132 East WilsonStreet, 3rd Floor

Madison, WI 53702

608/266-8005

8

PEC v. ROGER LEE

On October 26, 1988, the U.S. District Co

for the Central District of California entered 

consent order in FEC v. Roger Lee (Civil Act

No. 88-02640). The FEC filed the suit against 

Roger Lee, President and Director of the Bek

Company, alleging that Mr. Lee had viola

section 441b(a) of the election law.

In his capacity as Chief Financial Officer 

the Bekins Company, Mr. Lee consented to cor

rate reimbursements for employees who m

contributions to Senator John Glenn's 1984 Pre

dential primary campaign.

In settlement of this litigation, Mr. L

agreed to pay a $5,000 civil penalty for th

violations within 30 days of the court's order.

FEC Y. AUGUSTINE FOR CONGRESS

On September 23, 1988, the U.S. Distr

Court for the Eastern District of Louisiana issu

a consent order and judgment in FEC v. August

for Congress (Civil Action No. 82-4544). The F

had filed this complaint against Augustine 

Congress (the Committee), the principal campa

committee for Israel M. Augustine's 1984 C

gressional campaign, and Leon Fulton, the Co

mittee's treasurer, in September 1987.

In the consent order, the defendants agre

that they had violated the election law by:

o Failing either to maintain adequate records o

significant portion of the Committe

campaign contributions (Le., 54 percent of 

contributions) or to preserve records for 

required three years (2 U.S.C. §S432(c)(2), 

and (4) and 432(d»;

o Failing to identify the source of 26 itemiza

contributions (2 U.S.C. §434(b)(3)(A»;

o Failing to provide adequate year-to-date tot

for such itemizable contributions (11 C

I 04.3(b)(4»;

o Failing to maintain adequate records for c

tain campaign disbursements (2 U.S

S432(c)(5»;

o Failing to itemize 26 campaign disburseme

(2 U.S.C. S434(b)(5)(A»;

o Failing to file the Committee's 1985 mid-y

report and its 1985 and 1986 year-end reports 

U.S.C. §§434(a)(2)(A)(iii) and 434(a)(2)(B)(i) a

(ii»; and

o Understating the amount of receipts, disbur

ments and cash on hand disclosed on Comm

tee reports (2 U.S.C. §§434(b)(l),(2)and(4».

Defendants also agreed that they had v

lated sections 432(c)(5) and (h)(l) of the electi

law by failing to:

o Deposit receipts (amounting to $5,000) in 
December 1988 FEDERALELECTION COMMISSION Volume 14, Number 12

Committee's campaign account;

o Use checks drawn on the account for disbursements made from these funds; and

o Document these disbursements.

The court therefore ordered the defendants

to:

o Pay a $20,000 civil penalty in conformance with

an installment plan contained in the court's

order; and

o File all the Committee's over-due reports within 15 days of the court's order.

Finally, the court permanently enjoined defendants from future violations of the election

law.

FEC v, THORNTON TOWNSHIP REGULAR

DEMOCRATIC ORGANIZATION

On September 19, 1988, the U.S. District

Court for the Northern District of Illinois issued a

final consent order and judgment in a suit the

FEC had filed in July 1988 against the Thornton

Township Regular Democratic Organization

(TTRDO) and its treasurer.

In its suit, the FEC claimed that defendants

violated the election law when they sponsored a

direct mail solicitation to approximately 18,000

registered Democratic voters at a cost of

approximately $4,371. In the consent order, the

district court decreed that TTRDO violated the

election law by:

o Failing to register and report with the FEC as a

political committee when its costs for the direct mail solicitation exceeded $'1,000 (2 U.S.C.

§§433(a) and 434); and

o Failing to include on the solicitation a disclaimer notice stating that TTRDO had sponsored the

solicitation and that the solicitation was not

authorized .by any candidate's campaign

committee. (2 U.S.C. S44Id(a)(3».

The district court further ordered defendants

to pay a $2,000 civil penalty within 30 days of the

court's order.

9

. -- - --..- - -_. . -, - . - - -- - - - - - -_. ..-.

" ,

, ,'," : ' :'; r.:."l'.·' <;,; >'~.: ' " ," 

• • > - '.

_:: ........ __ .. ...1.>. __ ._~ _ _.. .' .:

MUR 2269: Corporate Press Releases

Constitute Expenditures

This MUR, resolved through conciliation, involve

a nonprofit, incorporated membership organiza

tion (the corporation) and its issuance of pres

releases that identified and praised federal candi

dates who took a pledge not to raise taxes.

Complaint

A national party committee (the party) alleg

ed that the corporation had contacted all cand

dates for election or re-election to the U.S

Senate or U.S. House of Representatives in 1986

and had asked them to sign a card promising t

oppose any effort to increase marginal tax rate

above 15-28 percent for individuals and 34 per

cent for businesses and to oppose any reductio

or elimination of tax deductions or credits unles

matched by offsetting reductions in tax rates

According to the complaint, the pledge campaig

was used to support another party's candidates fo

Congress and was undertaken in coordination an

consultation with the other party's national cam

paign committees.

General Counsel's Report

The respondent asserted that the pledge cam

paign did not involve direct communications wit

the general public but relied instead on pres

releases. There was no advertising, distributio

of brochures to the public, direct mail or simila

communications. Lastly, respondents denied co

ordinating the pledge campaign with any nationa

party committee.

Because the corporation's press releases iden

tified candidates for Congress, referred to th

upcoming election, praised the candidate(s) name

and endorsed what the candidate(s) would do 

elected, the General Counsel concluded that th

communications were in connection with federa

elections. Moreover, payments for th

communications were made in coordination an

consultation with the candidates in that th

respondent had asked the pledge-taking cand

dates to identify media outlets in their district

and had sent the press releases to these outlets

and, further, in that the respondent had asked th

pledge-taking candidates to hold press confer

ences simultaneously with the respondent's pres

conference, announcing the names of these cand

dates.

The Act, however, states that it is unlawfu

for any corporation to make a contribution o

expenditure in connection with any federal elec

tion. 2 U.S.C. S441b(a). Since the corporatio

continue
December 1988 FEDERAL ELECTIOI\J COMMISSIOI\J Volume 14, Number 1

had spent treasury funds in connection with

federal elections, the General Counsel believed it

had violated section 441b(a).

Commission Determination

Prior to considering whether there was

"probable cause to believe" the Act had been

violated, the Commission entered into a

conciliation agreement with the respondent. It

was agreed that the respondent had made

prohibited corporate expenditures in connection

with federal elections. The respondent agreed to

pay a $1,000 civil penalty.

. . ,

- . - ~, . _ ' • - \ 1.,

\.' ...\ , .. -

. - - - - - . - .

REPRINTS OF RECORD ARTICLES AVAILABLE

Callers inquiring about different aspects of

the law often ask whether the Commission has

materials on their topic of interest. In response

to these requests, many previously published 800

Line articles have been transformed into handouts

for quick and easy reference. Periodically

appearing in the Record, the 800 Line articles

answer frequently asked questions about

specialized topics relating to election law, such as

fundraisers or transfers of funds.

Other handouts on specific topics, not

previously published, are available as well

For convenience, handouts have been grouped

in the list below according to their intended

audience. For each handout taken from the

Record, a parenthetical reference indicates the

month and year when the article was originally

published.

Readers will find the handouts to be a

valuable resource. The Commission provides

them free of charge. To order, call the FEC's

Information Services Division at 800/424-9530 OJ'

202/376-3120.

For All Committees

o Computerized Format for Reporting (11:80)

o Contribution Limits

.0 Joint Fundraising

o Overall Annual Limit on Contributions for

Individuals (7:83)

o Public Records Fee Schedule

o State Filing Offices

o 1988 Filing Dates

For Authorized Candidate Committees

o Concert Fundraisers (12:82)

o Disposal of Campaign Property (1:83)

o Presidential and Congressional Primary Dates

(1:88)

10

o Termination Procedures/Winding Down t

Campaign

o Transfer of Candidate Funds to Fede

Committee (1:86)

FOl' Unauthorized Committees

o Delegates/Delegate Committees (11:87)

o Partnerships (6:83)

o Reporting Internal Communications 

Corporations, Labor Organizations and oth

Membership Organizations

o Single Candidate Committees (10:87)

o SSF & Nonconnected Committees 00:82)

For Teachers, Students and Researchers

o Dear Educator Letter (Describes FEC resourc

and services available to educators)

o Dear Librarian Letter (Describes availab

research materials and FEC resources)

o Educational Materials and Services (5:84)

o Legislative History Reference Information

o Presidential Election Campaign Fund Chart
~.- - - -- - - - -.-::------------ - . . - -

, , ..... - . . . . 

. -

.; ~. . 

.. - . - - .. .. - ----_. - . - 

FEDERAL ELECTION COMrvllSSION

December 1988

This cumulative index lists advisory opinions, court cases and 800

Line articles published in the Record

during 1988. The first number in the

citation refers to the "number"

(month) of the Record issue; the

second number, following the colon,

indicates the page number in that

issue.

OPINIONS

1987-29: Partisan communications by

incorporated membership organization,4:6

1987-30: Assets of candidate's wife

used to payoff bank loan to candidate, 2:3

1987-31: Eligibility of security ex- change's eight membership classes

for PAC solicitations, 3:5

1987-32: Campaign contributions in

the form of silver dollars, 3:7

1987-33: Law firm and partner are

not government contractors, 3:7

1987-34: Solicitations by SUbsidiary

of joint venture partnership, 6:5

1988-1: Activity to influence delegate selection, 5:3

1988-2: FEe reports posted on security exchange's bulletin boards, 4:7

1988-3: Trade association solicitations, 7:3

1988-4: Affiliation of PACs through

corporate merger, 5:4

1988-5: Presidential matching payments used for '84 debts, 5:5

1988-6: Allocation of media expenses

to fundraising exemption, 4:7

1988-7: Candidate's use of personal

gifts for campaign, 5:6

1988-8: PAC contributions by estate

trust, 5:6

1988-10: Activities for post-primary

delegate selection, 6:5

1988-11: Solicitation of teachers by

trade association of schools. 6:7

1988-12: Promotion of credit card

program by party committee/bank,

7:3

1988-13: Campaign funds used to pay

candidate's rent, 7:4

1988-14: Joint PAC sponsored by affiliated corporations, 6:7

1988-17: Corporation's sale of medallions depicting candidates and national nominating conventions, 8:3

1988-18: Liability of union for donations from its funds by nonfederal

entities. 7:9

1988-19: Solicitability of employee

shareholders, 7:5

1988-21: Act's preemption ot California ordinance governing contributions. 7:5

1988-22: Political activities sponsored by incorporated political organization, 11:3

1988-23: Ail' travel coupons sold to

campaign, 8:4

1988~24: Joint Cundraising committee

established by federal/non federal

candidates, 11:5

1988-25: Cars provided by corporation to national Presidential nominating conventions, 8:4

1988-26: Hourly wage earnen not 50-

licitable, 8:5

1988-27: Corporate expenditures for

PAC fundraiser and honeraelum, 9:6

1988-28: Corporation's 900 line telephone service for political committees, 10:5

1988-32: Reporting last-minute contributions, 9:7

1988-33: Ballot fees distributed to

state party's federal account, 11:3

1988-36: PAC's solicitation of company's employee stockholders, 11:6

1988-38: Eligibility of membership

classes for solicitations/partisan

communications, 12:4

1988-39: Ineligibility of individuals

with leased memberships for PAC

solicitations, 12:5

1988-40: Post care distributed under

"coattail" exception, 11:7

1988-41: Retiring Congressman's

disposal and reporting of campaign

funds, 12:5

1988-42: Name of PAC established by

two corporations, 12:6

1988-43: National organization not

responsible for state PACs, 12:6

COURT CASES

Ralph J. Galliano v, U.S. Postal Service, 1:7j 3:9

Harry Kroll v, Americans with Hart,

Ine., 5:6

Xerox Corp. v. Americans with Hart,

Inc., 5:6

11

Volume 14, Number 1

FEC v.

-Augustine Cor Congress, 1:8j

12:8

-Beatty for Congress Comm

tee, 6:9

-Bookman &: Associates, tne.,

11:12

-Californians for a Strong

America. 8:7

-Citizens for the President '8

3:10

-Citizens to Elect Jerald Wils

for Congress, 1:9

-Dietl Cor Congress, 6:9

-Dominelli (second suit), 5:8

-Friends of Isaiah F,letcher,

11:13

-Ted Haley Congressional Com

mittee, 9:7

-Holmes Committee. 7:7

-Lee, 7:7; 12:8

-New York Stl,lte Conservativ

Party State Commltteel198

Victory Fund. et aL, 2:4

-Bob Richards for President,

11:2

-Rodriguez, 8:6

-Taylor Congressional Comm

tee, 11:13

-Thornton Township Regu

Democratic Organization. 9

12:9

-Working Names. lne., 7:6

v, FEC

----Antosh, 1:8; second suit. 3:10

6:8

-Boulter and National Repub

can Senatorial Committee. 9

-Common Cause (Third Su

5:7, 10:7j Seventh Suit, 10

Ih12

-NRA. 10:9

-Stark (Second SUit), 4:8

-USDC.7:6

800 LINE

Election information available fro

other agencies, 11:7

Last-Minute Contributions and Ind

pendent Expenditures, 2:4

Partnership contributions. 8:6
December 1988 FEDERAL ELECTION COrvlMISSIOl\l Volume 14, Number 1

FEDERAL ELECTION COMMISSION

999 E Street, NW

Washington, DC 20463

Official'Business

FirstClass Mail

Postage and Fees Paid

FEC

Washington, DC

Permit Number G-31