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THE FEDERAL ELECTION 

COMMISSION 

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

Volume 5, Number 1 

ADVISORY OPINION REQUESTS 

The following chart lists Advisory Opinion Requests 

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

date the requests were made public and the number of 

pages of each request. The full text of each AOR -is avail· 

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

Records. 

Date No. of 

AOR Subject Made Public Pages 

1978-89 Slate card exemption 11/14/78 10 

for publications. 

1978-90 Reporting requirements 11/16/78 

for recount. 

1978·91 Reporting of transfers 11/16/78 2 

between State party 

and affiliates. 

1978·92 Limitations and report· 11/16/78 

ing requirements for 

recounts. 

1978-93 DispoSition of excess 11/20/78 

campaign funds. 

1978-94 Disposition of excess 11/22/78 

campaign funds. 

1978-95 Use of excess campaign 11/22/78 

funds to retire State 

election debt. 

1978-96 Acceptance of 11/27/78 3 

honoraria . . 

1978-97 Solicitation by separate 11/24/78 3 

segregated fund. 

January 1979 

1978-98 Contributions collected 11/29/78 · 3 

by payroll deduction and 

transmitted to separate 

segregated fund. 

1978-99 Allocation of debt 

between primary and 

general elections. 

12/11/78 

ADVISORY OPINIONS: SUMMARIES 

Designated as AO's, Advisory Opinions discuss the 

application of the Act or Commission regulations to 

~pecific factual· situations. Any .qualified person requestmg an Advisory Opinion who in good faith acts in . 

accordance with the opinion will not be subject to any 

sanctions under the Act. The opinion may also be relied 

on by any other person involved in a specific transaction 

which is indistinguishable in all material aspects from the 

activity discussed· in the Advisory Opinion. Those seek- · 

ing guidance for their own activity. should Gonsult the 

full text of an Advisory Opinion and not rely only on 

the summary giv~n here. . . 

AO 1978-35: Use of Trust Funds to 

Retire Camp.aign Debts 

Senate candidate Bill Waller may use funds in a trust 

set up for him in 1971 to pay primary debts incurred 

in his 1_978 Senate campaign. Because he had access and 

beneficial enjoyment to the funds before March f978 

when he became a candidate-, the trust is consid~red "personal funds" and, thus, is not subject to contribution limitations. Any interest accruing on. the trust is 

also considered personal funds. (Length: 3 pages) 

continued 

REMINDER 

The year-end report is due january 31, 1979. All 

candidates and political committees should consult 

the December 1978 Record for details. · 
AO 1978·39: Affiliation of Separate 

Segregated Funds 

INN/PAC, the political committee sponsored by the 

International Association of Holiday Inns, Inc. (the 

Association), and H I(PAC, the political committee 

sponsored by Holiday Inns, Inc. (Holiday), are affiliated 

within the meaning of the Act and regulations. The 

bylaws and charter of the Association and Holiday's 

policy statement indicate that Holiday has the authority 

to direct and influence in several ·specific ways, the 

Association Snd its membership who are franchisees 

of Holiday. Accordingly, both INN/PAC and HI/PAC are 

required to share a single contribution limit with regard 

to contributibn~they make to cimdidates and commit· 

tees. Contributions made· to lf-fN/PAC and HI/PAC· 

would be considered contributions to a single political 

committee. Transfers between the two committees 

would be unlimited. Both committees must amend their 

Statements of. Organization to identify ,each other as 

affiliated political committees. See 11 CFR 102.2(b)(1 ). 

(Length : 4 pages) 

AO 1978·56: Dual Role for 

Presidential Candidate 

Congressman Philip Crane may continue to serve as 

National Chairman of the American Conservative Union 

(ACU) while he is a candidate for President of the 

United States. ACU is a nonprofit, unincorporated 

organization. Payments made to defer expenses incurred 

in the performance of Mr. Crane's duties as ACU chair· 

man would not be considered as in-kind contributions to 

his campaign or corresponding expenditures by the 

campaign committee. This conclusion was based on the 

following specific facts: ACU has not and will not 

promote, recognize ar·atherwise identify Mr. Crane as a 

candidate for President of the United States. Mr. Crane 

will not use his ACU office to further his candidacy.' 

Moreover, ACU will not seek to participate in'primary 

elections or delegate selection and will not transfer any 

funds to Mr. Crane or his committee. The CommisSio"n 

also assumed that ACU will"not in any way involve itself 

with contributions to Mr. Crane or make any communi· 

cations that expressly advocate his election or the defeat 

of any other Presidential candidate. Under these circumstances, any publicity resulting from Mr; Crane's activity 

as Chairman of ACU will not be considered a·contrlbution under the Act. (Length: 3 pages) 

AO 1978-85: Use of Excess 

Campaign Funds 

The Whitehurst for Congress Committee inay use excess 

campaign funds to defray expenses of a buffet luncheon 

to be given in honor of Mr. Whitehur.st's 10th year.as 

Congressman from Virginia. A candidate or individual 

• holding Federal office may use excess campaign funds io ' 

defray ·any ordinary and necessary expenses incurred in 

connection with duties as a Federal officeholder .. Since · 

this event relates to Mr. Whitehurst's service as a Member 

of Cbn'gress, the use of excess campaign funds far· this 

purpose is permissibl,e under. the Act. Th~ Committee 

must report the disbursements,. !Length: ·2 'pages) 

AO 1978-87: Use of Excess 

Campaign Funds 

Senator James B. Pearson may transfer $100,000 in 

excess campaign funds to the University of Kansas 

Center for Research, lnq.; for the purpose of establishing 

a fellowship program, The Act provides that it is lawful· 

for excess campaign funds. to be contributed. to recognized charitable organizations, (Length: 2 pages) 

AO 1978-88: Public Service Announcements 

by Former Candidate 

State Senator Ronald R, Hein, a former candidate for 

the U.S. House of Repr~sentatives, may make public 

service announcements to raise money for diabetes 

research while his congressional campaign committee 

remains active in its effort to retire campaign debts, Any 

publicity resulting from these announcements will not 

constitute either a contribution or an expenditure on 

behalf of Mr. Hein's campaign since the announcements 

will make no referenc~ to his candidacy for Congress and 

no appeal for campaign funds, (Length: 2 pages) 

AO 1978-92: Limitations and Reporting 

Requirements foi Recount 

Funds collected and disbursements made by the Miller for 

Senate Committee (the Miller Committee) for the purpose 

of defraying expenses of a Federal el.ection recount are not 

contributions or expenditures under the regulations. 11 

CFR 100.4(b)(15), No gifts or payments may be given by 

or accepted from a national bank, corpo.ration or labor 

organization. A separate segregated fund of such an organi· 

zation may, however, make a donation or dis~ursement for 

a recount. 

The RECORD is published bY the Federal Election Commission, 1325 K Street, N.w.; Washington, D.C. 20463. Commissioner's are.· Joan D. Aike'?s• Chairman; Robert 0. Tiernan, Vice Chairman; Thomas E. Harris; John W, McGarry; 

William L, Springer; Vernon W. .Thomson; J.S. Kimmitt, Secretary of the Senate, Ex Offit;;o; Edmund L. Henshaw, Jr., 

Clerk of the House of Represeniiltives, Ex Officio. For more information; call 523-4068 or toll freeB00/424-9530, 

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On the other hand, if a separate organization were established by the current officers or staff of the Miller committee solely for the purpose of funding the recount effort, 

it would not become a "political committee" since its 

receipts arid disbursements would not be contributions or 

expenditures under the Act. Thus, neither a Statement of 

Organization nor any .reports would be required. 

If the Miller for Senate Committee set up a bank account 

for recount purposes, the Committee would have to amend 

its Statement of Organization and report the receipts and 

disbursements, relating to the recount. 

In either case, a political committee making a donation for 

the recount would be required to itemize the donation as a 

transfer. In addition, the committee should attach an 

explanation that the donation was exempt from the limitation...: because it was made for recount purposes only. 

With regard to funds received for recount purposes, any 

surplus could not be used in a manner that would consti· 

tute a contribution or expenditure under the Act or regula~ 

tions. Surplus funds could, however, be spent for other 

lawful purposes unrelated to Federal elections. (Length: 4 

pages) 

ALTERNATIVE DISPOSITION OF 

ADVISORY OPINION REQUESTS 

Since November 1978, the Commission has responded 

to the following Advisory Opinion Requests in a manner 

other than the issuance of an Advisory Opinion. 

-- AOR 1978-70 was withdrawn by its requester. 

.. AOR 1978-90 was answered by AO 1978-92. See 

Advisory Opinion Summaries. 

FEC PUBLIC APPEARANCES 

In keeping with its objective of making information 

available to the public, the Federal Election Commission regularly accepts invitations for its representatives to address public gatherings on the subject of 

campaign finance laws and the Commission itself. 

This regular column lists scheduled Commission 

appearances, detailing the name of the sponsoring 

organization, the location of the event and the 

Commission's representative. 

1/13 National Association of Manufacturers Public 

Affairs Conference 

lnnisbrook, Florida 

Chairman Joan Aikens 

Jan Baran, Executive Assistant to 

Chairman Joan Aikens 

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The Public CommuniCations Office receives numerous 

inquiries from the public on the toll-free line (800) 

424-9530. The following explanation of how candidates 

may use excess campaign funds is offered in response to 

questions frequently asked. 

EXCESS CAMPAIGN FUNDS 

Excess campaign funds are contributions received by a 

candidate (or his/her authorized committee or agent) 

which, in the candidate's view, exceed the amount of funds 

needed to defray campaign expenditures. Excess campaign 

funds may be used for the following purposes: 

1. Future elections. See 11 CFR 110.3(a)(2). 

2. Defraying office expenses of Federal officeholders. 

3. Donations to recognized charitable organizations. 

4. Contributions to political committees, political parties 

and other candidates. 

5. Any other purpose lawful under Federal and State 

statutes. 

See also 11 CFR 113.2. 

Some of these uses may be subject to Federal and State 

income tax laws and, in the case of Federal officeholders, 

to the rules of the U.S. Senate or House of Representatives. 

FEC v. NATIONAL EDUCATION 

ASSOCIATION, et al. 

On November 2, 1978, the U.S. District Court for the 

District of Columbia ordered the National Education 

Association (NEA) to obtain written affirmation from 

participants in the reverse checkoff programs of their intent 

to make a political Contribution to its separate segregated 

fund NEA-PAC. The Court set April 1, 1979, as the deadline for obtaining each member's written consent tri the 

contributions they had made through the reverse checkoff 

procedure. NEA was further required to return funds to 

individuals who do not sub"mit the affirmation. Under the 

court order, refund checks must be sent to each person 

entitled to a refund by May 15, 1979. By July 1, 1979, 

NEA must submit to the Court and the FEe· a final 

accounting of all refunds. 

The order followed a previous decision made by the Court 

on July 20, 1978, to grant the FEC a summary judgment in 

its suit filed against NEA and 17 of its State affiliates. In 

that decision, the Court also enjoined NEA and its affiliates 

from collecting political contributions by means of "a 

reverse checkoff" system. (See the Record, September 
1978, p. 4.) Under this procedure, a political contribution 

. wasinJto111atically deducted from a member's salary along 

with his/her dues payment. The contribution was subsequently refundable upon written request by the member. 

LITIGATION STATUS INF.ORMATION 

The following is a list of new litigation involving the 

Commission, together with the date the suit was filed, the 

Court involved, the Docket. Number and a brief description 

of the. major issue(s) inyolved in the case. Persons seeking 

additional information on a particular case should cOntact 

the Court where the suit is filed or the Commission. 

FEC v. Gene A. Williamson, U.S. District Court for the 

Eastern District of Michigan, Docket No. 872728, October 

24, 1978. 

The Commission alleges defendant violated the 

Act by making contributions in the name of 

another. 

Neil Staebler, et al. v. Jimmy Carter, et al., U.S. District 

Court for the District of Columbia, Docket No. 78-2028, 

October 26, 1978. 

Suit challenges the President's Constitutional 

authority to make a "recess appointment" of 

John McGarry as Commissioner of Federal 

Election Commission. 

Henry L. Walther v. FEC, U.S. District Court for the District of Columbia, Docket No. 78-2097, November 3, 1978. 

Suit seeks declaratory and injunctive relief 

against the Commission for dismissing 21 complaints. 

FEC v. American Federation of State, County and Municipal Employees, U.S. District Court for the District of 

Columbia, Docket No. 78-2114, November 7, 1978. 

The Commission alleges defendant violated the 

Act by failing to report costs of communications expressly advocating the defeat of a candidate. 

Common Cause et al. v. FEC, Chairman Joan Aikens and 

American Medical Association, U.S. District Court for the 

District of Columbia, Docket No. 78-2135, November 9, 

1978. 

Plaintiff alleges the Commission failed to take 

action against the American Medical Association as required by the Act. 

Henry L. Walther v. FEC, U.S. District Court for the District of Columbia, Docket No; 78-2193, November 21, 

1978. 

Suit seeks declaratory e.nd injunctive relief 

against the Commission for dismissing 24 complaints. 

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FEC PUBLISHES 

NAMES OF NONFILERS 

The Commission is required by the Federal Electio

Campaign Act to publish the names of candidates and po

tical committees who fail to file required reports of receip

and expenditures. Before publishing the name of a cand

date or committee who has failed to file, the Commissio

sends them at least two notices. If, following receipt 

these notices, a candidate or committee continues not 

file the required report, the name of that "nonfiler" 

made public. 

The Commission recently published the names of cand

dates and political committees who failed to file a requir

report. The following list summariZes Commission actio

Publication 

Date 

12/7/78 

Report 

Not Filed 

Alabama 

(Post-General) 

AUDITS RELEASED TO THE PUBLIC 

Number 

Nonfile

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The Federal Election Campaign Act requires the Co

mission " ... to make from time to time audits and fi

investigations with respect to reports and statements fi

under the Act." The Commission is also required to_c

duct audits of all campaigns of Presidential candidates w

receive public funds. Once an audit is completed and 

audit report is approved by the Commission, the repor

made public and is available in the Office of Public Reco

and the Press Office. The following is a chronological list

of audits released as of November 28, 1978. 

Audits 

1. New Hampshire Democratic State Committee/Democratic State Committee -

Get-Out-the-Vote 

2. New Hampshire Republican State Committee/New Hampshire Republican Committee/Federal Accourft 

3. Dollars for Democrats, Missouri 

Date M

Public 

11/14

11/14

11/14

contin
4. Anderson-Shackelford Campaign 

Committee 

11/21/78 

5. Hamp Baker for Congress Committee, 

OK/3 

11/2.1/78 

6. Citizens for Senator Brock/Concerned 

Tennesseans 

11/21/78 

7. Democratic Congressional Dinner 

Committee 

11/21/78 

8. Democratic Congressional Finance 

Committee 

11/21/78 

9. Owens for Congress, F L/7 11/28/78 

NEW STUDIES RELEASED 

The Clearinghouse recently completed and released three 

major reports: Statewide Registration Systems, Ballot 

Access and Contested Elections and Recounts. 

Statewide Registration Systems is a two-volume report 

developed by Arthur Young and Co. and Weems and 

Associates. The report discusseS automated voter registration systems, giving particular attention to those that are 

centralized at the State level. Volume I offers a nontechnical, pragmatic discussion of mail registration systems, their 

history and their benefits. Also <;Jiscusseq are the obstacles 

to implementing and operating mail registration systems 

and suggested solutions. Volume II is a more detailed report 

which outlines the design and operating characteristics of a 

statewide system. 

Report 

Statewide Registration 

Systems, Vol. I 

Statewide Registration 

Systems, Vol. II 

Cost 

$4.50 

$5.25 

Order Number 

FEC-CH-78-008 

FEC-CH-78-009 

The Ballot Access report, composed of four volumes, was 

prepared by Texas A&M University's Department of 

Political Science. It examines the complexities of how 

candidates for Federal office get listed on the ballot. 

Volume I gives the history of ballot access procedures and 

makes specific recommendations for improvement. Volume 

II describes in detail the ballot access procedures for 

congressional and Pr~sidential candidates in each State. 

Volume Ill contains a history of ballot access laws for both 

congressional and Presidential ca~didates, identifies major 

legal problems and issues and summarizes State election 

codes with respect to ballot access for Federal office. 

Volume IV summarizes ballot access procedures in each 

State. 

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Report Cost Order Number 

Ballot Access Set $25.00 PB 288-445 

Ballot Access, Vol. I $6.00 PB 288-446/ AS 

Ballot Access, Vol. II $9.00 PB 288-447/AS 

Ballot Access, Vol. Ill $9.50 PB 288-448/ AS Ballot Access, Vol. IV $6.00 PB 288-449/ AS 

The Contested Elections and Recounts report, in three 

volumes, was prepared by Indiana University's School 

of Public and Environmental Affairs. Volume I (Federal 

perspective) and Volume II (State perspective) describe 

contested election and recount laws and procedures 

throughout the United States. They include recommendations for laws and procedures that will minimize contested 

elections and facilitate the just resolution of those that 

occur. Volume Ill consists of a series of legal memoranda 

summarizing relevant State laws. 

Report Cost 

Contested Elections and $34.00 

Recounts Set 

Order Number 

PB 288-450-SET 

Contested Elections and 

Recounts, Vol. I 

Contested Elections and 

Recounts, Vol. II 

Contested Elections and 

Recounts, Vol. Ill 

$9.00 

$13.25 

$15.50 

PB 288-451 

PB 288-452 

PB 288-453 

To purchase any of these Clearinghouse reports, send 

payment (check or money order), together with the report 

number, to the address below or call 703-557-4650. 

National Technical Information Service 

Sales Desk 

Department of Commerce 

5285 Port Royal Road 

Springfield, VA 22161 

FORMS 

Forms for candidates and committees are available 

from: 

Office of Public Communications 

Federal Election Commission 

1325 K Street, N.W. 

Washington, D.C. 20463 

Telephone: 202/523-4068 

Toll-Free: 800/424-9530 

Candidates and committees should use the revised 

form for reporting receipts and expenditures. It is 

designated in the upper left hand corner as: FEC 

Form 3 REVISED, January 1978. 
FEDERAL ELECTION COMMISSION 

1325 K STREET, NW 

WASHINGTON, DC 20463. 

OFFICIAL BUSINESS 

FIRST CLASS MAIL 

POSTAGE & FE.ES PAID 

FEC 

WASHINGTON, D.C ... 

PERMIT NO. G-31