April 2001 Federal Election Commission Volume 27, Number 4

Table of Contents

Regulations

1 Definition of “Political

Committee” Rulemaking

3 Federal Register

Legislation

1 Legislative Recommendations

Election Administration

5 New Appointees to the OEA

Advisory Panel

5 Advisory Opinions

5 Pennsylvania Special Election

Reporting

800 Line

6 Treasurer’s Liability

Compliance

7 Committees Fined for Late and

Nonfiled Reports

Alternative Dispute Resolution

7 ADR Program Resolves More

Cases

Court Cases

8 On Appeal

Outreach

8 Public Appearances

9 Conference for Labor and

Membership Organizations

11 Are You a Membership

Organization?

Statistics

10 Semiannual PAC Count

11 Index

Compliance Regulations Legislation

Definition of “Political

Committee” Rulemaking

On March 1, 2001, the Commission approved an Advance Notice of

Proposed Rulemaking (ANPRM)

seeking comment on several proposals that would revise the Federal

Election Campaign Act’s (the Act)

definition of “political committee.”

The notice, which was published in

the March 7, 2001, Federal Register

(66 FR 13681), addresses:

• Possible revisions to the definitions of “contribution” and “expenditure,” which may trigger political

committee status; and

• Ways in which a “major purpose”

test could be incorporated into the

Commission’s regulatory definition of “political committee.”

One reason for this proposed

rulemaking is to ensure registration

and disclosure by all entities that

seek to influence federal elections.

Entities that organize under section

527 of the Internal Revenue Code,

by definition, have as their primary

purpose the influencing of elections

at the federal, state or local level.

Therefore, under the Act and the

Commission’s current rules, they

automatically become political

FEC Submits Legislative

Recommendations for

Legislative Action

On February 23, 2001, the

Federal Election Commission

submitted to Congress and President

Bush two priority recommendations

for legislative action in the areas of

campaign finance law and election

administration. On March 2, the

Commission submitted 32 additional

recommendations to amend and

improve the campaign finance law.

Chairman Danny L. McDonald

commented: “We hope these

recommendations can assist Congress in bringing to fruition some

necessary changes in both campaign

finance and election administration.

With more than 25 years of experience and accomplishments in these

areas, the FEC stands ready to work

with the President and Congress to

implement the legislative package.”

Office of Election Administration

The first priority recommendation

focuses on the duties of the

Commission’s Office of Election

Administration (OEA) and its

Advisory Panel. The recommendation clarifies that the responsibilities

(continued on page 2) (continued on page 4)
Federal Election Commission RECORD April 2001

2

committees once they make or

receive $1,000 in contributions or

make $1,000 in expenditures for the

purpose of influencing federal

elections. However, some groups

that aim to influence federal elections choose not to become section

527 organizations either because

their primary purpose is not to

influence elections or because they

fall under a different tax status and

thereby avoid the disclosure requirements established by Public Law

106-230 (effective since July 1,

2000). The proposed revisions to the

definition of “political committee”

are intended to be applied to these

entities and to require the registration and disclosure of their activities.

Definitions of Contribution and

Expenditure

The Act, with certain exceptions,

defines “political committee” as any

group of persons that makes or

receives more than $1,000 in

contributions or makes more than

$1,000 in expenditures during a

calendar year. The terms “contribution” and “expenditure,” in turn,

refer to a payment or something of

value given or received for the

purpose of influencing a federal

election. 11 CFR 100.7 and 100.8.

The Commission is seeking comments on whether to include several

discrete activities in the definitions

of “contribution” and “expenditure.”

These new definitions of “contribution” and “expenditure” would be

incorporated into the definition of

“political committee” at 11 CFR

100.5.

Contributions. The Commission

seeks comments on adding to the

definition of “contribution” descriptions of six activities. The proposed

rules would identify a contribution

as money, services or anything of

value that was:

1. Received as the result of a

solicitation, the express purpose

of which was to raise money to

influence federal elections;

2. Received from certain political

committees (i.e., separate

segregated funds (SSFs) of

corporations and labor unions,

certain local party committees

and principal campaign/authorized committees), unless the

organizations receiving the funds

qualified for tax exempt status;1

3. Received by an organization that

was expressly authorized by its

charter, constitution, bylaws,

articles of incorporation or other

organizational document(s) to

engage in activities conducted

for the purpose of influencing

federal elections;

4. Received by an organization that

was controlled by a federal

candidate, his or her principal

campaign committee or any other

committee authorized by a

federal candidate;2

5. Received by an organization that

claimed tax exempt status

pursuant to 26 U.S.C. §527 and

did not restrict its activities to

influencing state or local elections or elections conducted

within a political organization;

and

6. Deemed to be in-kind contributions for general public political

communications, pursuant to 11

CFR 100.23. This provision

would incorporate the

Commission’s recently-promulgated coordination rules.

Expenditures. The Commission

also seeks comments on adding five

new elements to the definition of

“expenditure.” These new elements

would include payments or costs

that were:

1. Associated with the

organization’s solicitation of

money, or any other thing of

value, where the solicitation

stated that donations would be

used to influence a federal

election;

2. Deemed to be coordinated

expenditures for general public

political communications,

pursuant to 11 CFR 100.23;

3. Associated with any communication to the public that referred to

a candidate for federal office and

had been tested to determine its

probable impact on the candidate

preference of voters;

Regulations

(continued from page 1)

1

 26 U.S.C. §501(c)(3) provides federal

tax exempt status to a charitable

organization, so long as it “does not

participate in, or intervene in (including the publishing or distributing of

statements) any political campaign on

behalf of (or in opposition to) any

candidate for public office.”

2

 This provision would exclude organizations that are charities under 26

U.S.C. §501(c)(3) or social welfare

groups under §501(c)(4). These latter

groups may work in political candidate

elections, but only as long as their

activity remains insubstantial relative

to their nonpolitical work.

Federal Election Commission

999 E Street, NW

Washington, DC 20463

800/424-9530

202/694-1100

202/501-3413 (FEC Faxline)

202/219-3336 (TDD for the

 hearing impaired)

Danny L. McDonald, Chairman

David M. Mason, Vice Chairman

Karl J. Sandstrom, Commissioner

Bradley Smith, Commissioner

Scott E. Thomas, Commissioner

Darryl R. Wold, Commissioner

James A. Pehrkon, Staff Director

Lois G. Lerner, Acting General

 Counsel

Published by the Information

 Division

Louise D. Wides, Director

Amy Kort, Editor

Jim Wilson, Associate Editor

http://www.fec.gov
April 2001 Federal Election Commission RECORD

3

4. Associated with any communication to the public that referred to

a candidate for federal office,

where the intended audience had

been selected based on its voting

behavior; and

5. Associated with a commercial

vendor’s service or product that

was purchased with the express

understanding that the service or

product would be designed to

influence any federal election.

An alternative approach would be

to locate the proposed new objective

criteria in the generally applicable

definitions of “contribution” and

“expenditure” found at 11 CFR

100.7 and 100.8, respectively. The

Commission also invites comments

on whether these proposed revisions

comport with constitutional safeguards and the Commission’s

statutory authority.

The “Major Purpose” Test

The Commission is also examining whether to incorporate the

concept of an organization’s “major

purpose” into the definition of

“political committee,” and, if so,

how this could be done. The Supreme Court has stated that the

definition of “political committee”

need only encompass organizations

that are under the control of a

candidate, or “whose major purpose

is the nomination or election of a

candidate” (italics added).3

 The

following alternatives offer several

ways by which an organization’s

“major purpose” could be determined for purposes of this definition.

Alternative 1: Percentage of

Disbursements. Under one proposed

definition of “major purpose,” an

organization would qualify as a

political committee if at least 50

percent of its disbursements were

made for the purpose of influencing

federal and nonfederal elections.

Comments are sought on whether a

higher or lower percentage might be

more appropriate in particular

circumstances.

Alternative 2: Percentage of Time

and Disbursements. Another

approach would evaluate not only

an organization’s receipts and

disbursements, but also the amount

of time spent on election-related

activities by its paid and unpaid

staff. The Commission seeks

comments on several options for

valuing volunteer activity and

determining the cycle for computing

the percentages of time and disbursements, should this alternative

be adopted.

Alternative 3: Percentage of

Disbursements Spent on Communications Containing Express Advocacy. Under this substantially

narrower approach, an organization

would compare its total disbursements only to the sum of its contributions to federal candidates and

amounts spent on general public

political communications that

expressly advocated the election or

defeat of clearly identified federal

candidates.

Alternative 4: Dollar Amount of

Campaign Activity. This alternative

would establish a dollar threshold

($50,000 is the figure proposed for

discussion purposes) for political

committee status. If an organization

exceeded this amount in election

activity or, alternatively, in express

advocacy communications, it would

automatically be deemed to have as

its major purpose the influencing of

federal elections, even if the funds

spent on election activity represented a small percentage of its total

disbursements for all activities.

All comments should be addressed to Rosemary C. Smith,

Assistant General Counsel, and

must be submitted in either written

or electronic form by May 7, 2001.

Written comments should be sent to

the Federal Election Commission,

999 E Street, NW., Washington, DC

20463. Faxed comments should be

sent to 202/219-3923, with a printed

copy follow-up to insure legibility.

Electronic mail comments should be

sent to polcomms@fec.gov and

must include the full name and

postal service address of the

commenter. Comments that do not

contain this information will not be

considered. No oral comments can

be accepted.✦

3 Buckley v. Valeo, 424 U.S. 1, 79

(1976). See also FEC v. Massachusetts

Citizens For Life (“MCFL”), 479 U.S.

238, 262 (1986).

Federal Register

Federal Register Notices are

available from the FEC’s Public

Records Office.

Notice 2001-3

Definition of Political

Committee; Advance Notice of

Proposed Rulemaking; (66 FR

13681, March 7, 2001)

Back Issues of the

Record Available on

the Internet

This issue of the Record and all

other issues of the Record starting

with January 1996 are available

through the Internet as PDF files.

Visit the FEC’s World Wide Web

site at www.fec.gov and click

on “What’s New” for this issue.

Click “Campaign Finance Law

Resources” to see back issues.

Future Record issues will be

posted on the web as well. You

will need Adobe® Acrobat®

Reader software to view the publication. The FEC’s web site has

a link that will take you to Adobe’s

web site, where you can download

the latest version of the software

for free.
Federal Election Commission RECORD April 2001

4

of the OEA include the periodic

update and enhancement of the

voluntary Voting System Standards

(VSS) program. The recommended

legislation would also give the

OEA’s Advisory Panel, which was

established by administrative action

in 1976, statutory standing within

the Federal Election Campaign Act

(the Act).

In 1990, the Commission approved the VSS for computer-based

voting systems. Voting system

standards are technical specifications that ensure that computerbased voting systems are accurate

and secure. The OEA provides

information regarding these standards to election officials involved

in certifying or procuring such

systems. Under this recommendation, the OEA would:

• Continue to update the VSS first

developed in 1990, and expand the

VSS program beyond technical

standards to include voluntary

management standards and voluntary performance/design standards

that would optimize ease of use

and minimize voter confusion; and

• Increase outreach efforts to state

and local jurisdictions (and vendors of voting equipment) regarding the VSS.

Additionally, the statutorily

chartered Advisory Panel would be

responsible for advising the Commission on the VSS program.

Administrative Fine Program

The second priority recommendation concerns the Administrative

Fine Program for reporting violations. The recommended legislation

would extend this program for

another two years in order to cover

violations that relate to reporting

periods that begin on or after

January 1, 2002, and that end on or

before December 31, 2003. Extending the duration of the pilot program

Legislation

(continued from page 1)

would give the Commission and

Congress an opportunity to evaluate

the effects of the program on one

full cycle of reporting. Additionally,

the extension would allow the

agency to evaluate the effects of

mandatory electronic filing upon the

ability of filers to meet reporting

deadlines and avoid administrative

penalties.

Additional Recommendations

The 32 additional legislative

recommendations cover a variety of

substantive and technical issues,

including:

• Contributions by foreign nationals;

• Referral of criminal violations for

prosecution by the Justice Department;

• Reinstating the FEC’s authority to

initiate and conduct litigation at

the Supreme Court on matters

arising under the Federal Election

Campaign Act;

• Reinstating the FEC’s ability to

conduct audits for cause;

• Averting the impending shortfall in

the Presidential Public Funding

Program; and

• Revamping the fundraising

limitation for publicly financed

Presidential Primary campaigns to

combine it with the overall spending limit.

The full text of the recommendations can be found on the FEC’s

Web site at www.fec.gov/

legrec2001.html. Paper copies may

be obtained through the FEC Press

Office, at 800/424-9530 (press 2),

and the Public Records Office, at

800/424-9530 (press 3).✦

PACronyms, Other

PAC Publications

Available

 The Commission annually

publishes PACronyms, an

alphabetical listing of acronyms,

abbreviations and common names

of political action committees

(PACs).

 For each PAC listed, the index

provides the full name of the

PAC, its city, state, FEC

identification number and, if not

identifiable from the full name,

its connected, sponsoring or

affiliated organization.

 The index is helpful in identifying PACs that are not readily

identified in their reports and

statements on file with the FEC.

 To order a free copy of

PACronyms, call the FEC’s

Disclosure Division at 800/424-

9530 (press 3) or 202/694-1120.

PACronyms also is available on

diskette for $1 and can be

accessed free under the “Using

FEC Services” icon at the FEC’s

web site—http://www.fec.gov.

Other PAC indexes, described

below, may be ordered from the

Disclosure Division. Prepayment

is required.

• An alphabetical list of all

 registered PACs showing each

 PAC’s identification number,

 address, treasurer and

 connected organization ($13.25).

• A list of registered PACs

 arranged by state providing the

 same information as above

 ($13.25).

• An alphabetical list of

 organizations sponsoring PACs

 showing the PAC’s name and

 identification number ($7.50).

 The Disclosure Division can

also conduct database research to

locate federal political committees

when only part of the committee

name is known. Call the telephone

numbers above for assistance or

visit the Public Records Office in

Washington at 999 E St., NW.
April 2001 Federal Election Commission RECORD

5

Advisory

Opinions

AO 2001-1

Office Building Fund Used

for Construction

Management, Architectural

Fees and Fundraising

The North Carolina Democratic

Party (the Party) may use its office

building fund to pay for construction management and architectural

fees that are directly and solely

related to the restoration and

renovation of the Party’s headquarters. Also, the Party may use its

office building fund to pay the

salary and other expenses of an

employee or consultant whose sole

responsibility is to raise funds for

the office building fund; such

expenses do not have to be allocated.

Election

Administration

New Appointees to the OEA

Advisory Panel

On February 1, 2001, the Commission appointed Joseph Meyer,

Wyoming Secretary of State, and

Carolyn Jackson, Administrator of

Elections, Hamilton County,

Tennessee, to the Office of Election

Administration (OEA) Advisory

Panel. The OEA Advisory Panel is

composed of state and local election

officials from across the country.

Officials are nominated to the

Panel by the OEA Director and

appointed by the Commission. The

Panel meets annually and advises

the OEA and the Commission on

methods of allocating resources in

order to best serve the needs of

election officials.✦

The Building Fund

Under the Federal Election

Campaign Act (the Act) and Commission regulations, funds given or

loaned to a national or a state

committee of a political party are

not contributions if they are specifically designated to defray the costs

incurred for the construction or

purchase of an office facility

provided that the facility is not

acquired for the purpose of influencing the election of any candidate in

a particular federal election. 2

U.S.C. §431 (8)(B)(viii); 11 CFR

100.7(b)(12), 100.8(b)(13), and

114.1(a)(2)(ix). In past advisory

opinions, the Commission permitted

state and national party committees

to accept corporate and labor union

donations to office building funds

(or accounts) that were established

and used by the party committee for

the purpose of purchasing or

constructing an office facility. AOs

1997-14, 1993-9 and 1991-5.

Construction and Renovation

Expenses

Funds from a party committee’s

office building fund may be used to

pay building expenses that are

described as “capital expenditures”

under the Internal Revenue Code

and related IRS regulations. AO

1998-7. Under the IRS regulations,

a capital expenditure includes the

cost of the acquisition, construction

or erection of buildings, machinery

and equipment, furniture and

fixtures and similar property. 26

CFR 1.263(a)-1 and 1.263(a)-2.

Amounts expended for an

architect’s services are listed

explicitly in IRS regulations as an

example of a capital expenditure. 26

CFR 1.263(a)-2(d). Thus, in this

case, the Party may use office

building funds to pay for architectural fees directly and solely related

to the restoration and renovation

project for Party headquarters.

Funds from the office building

fund may also be used to pay

Pennsylvania Special Election Reporting

 The Special Election to fill the U.S. House seat vacated by Congressman

Bud Schuster in the Ninth Congressional District will be held on May 15,

2001. Note that 48-hour notices are required of authorized committees that

receive contributions of $1,000 or more between April 26 and May 12 for

the Special General Election. Committees involved in this election must

follow the reporting schedule below.1

For Committees Involved in the Special General Election:

 Close of Reg./Cert Filing

 Books Mail Date Date

Pre-General Report April 25 April 30 May 3

Post-General Report June 4 June 14 June 14

Mid-Year Report June 30 July 31 July 31

1Reports filed electronically must be submitted by midnight on the filing

date. Reports filed on paper and sent by registered or certified mail must be

postmarked by the mailing date; reports sent by any other means (including

reports sent via first class mail) must be received by the Commission’s close

of business on the filing date.

(continued on page 6)
Federal Election Commission RECORD April 2001

6

2

 An individual becomes a candidate for

the purposes of the Act (2 U.S.C.

§441a(d)) once he or she receives

contributions aggregating in excess of

$5,000 or makes expenditures in excess

of $5,000. Federal candidates must

designate a principal campaign

committee within 15 days after qualifying as a candidate, and the committee

also becomes subject to registration

and reporting requirements. 2 U.S.C.

§§432(e)(1) and 434(a); 11 CFR 101.1,

102.1 and 104.1.

800 Line

Treasurer’s Liability

According to the Federal Election

Campaign Act (the Act), a political

committee is required to have a

treasurer before it can conduct

financial transactions. The treasurer

is responsible for:

• Registering the committee;

• Depositing receipts within 10 days;

• Authorizing expenditures;

• Monitoring contribution limitations and prohibitions; and

• Signing and filing all reports and

statements on time.

While committee support staff,

volunteers or professional consultants may actually perform these

duties, the treasurer remains responsible for the committee’s compliance with the Act. 11 CFR

104.14(d). Moreover, if a

Advisory Opinions

(continued from page 5)

AO 2001-2

Status of State Party as State

Committee of Political Party

The Green Party of Kentucky

satisfies the requirements for state

committee status.1

The Federal Election Campaign

Act (the Act) defines a state committee as “the organization which,

by virtue of the bylaws of a political

party, is responsible for the day-today operation of such political party

at the State level, as determined by

the Commission.” 2 U.S.C.

§431(15). In order to achieve state

committee status under Commission

regulations, an organization must

meet two requirements. It must

have:

• Bylaws or a similar document that

“delineates activities commensurate with the day-to-day operation”

of a party at a state level; and

• Ballot access for at least one

federal candidate who has qualified as a candidate under Commission regulations.2

The Green Party of Kentucky

meets both requirements. It satisfies

the first requirement because its

1 bylaws set out a comprehensive When one fundraising program or

event is held to collect funds that will

be used to influence both federal and

nonfederal elections, the sponsoring

committee must allocate the direct costs

of the activity between its federal and

nonfederal accounts using the “funds

received” allocation method. Under

this method, the costs are allocated

according to the ratio of federal funds

received to total receipts for the

program or event. 11 CFR 106.5(f).

construction management expenses

because these expenses directly

relate to the actual renovation of the

Party’s headquarters and are, thus,

direct construction costs.

Fundraising Expenses

The Party may also use funds

from the office building fund to pay

the costs of an employee whose sole

responsibility is raising funds for the

office building fund, including this

individual’s salary and/or fees.

Fundraising is necessary to cover

the costs of renovation and, therefore, the costs associated with

maintaining such an employee are

directly related to the construction

of the Party headquarters. Funds

used to pay the fundraiser’s salary

do not need to be allocated between

the Party’s federal account and the

office building fund account because the fundraising is solely for

the office building fund.1

Date Issued: February 15, 2001;

Length: 4 pages.✦

1

 The Green Party of Kentucky is not

affiliated with any national political

party. The Commission has, however,

recognized the state committee status of

other party committees not affiliated

with any national political parties. The

most recent examples are AO 2000-27

and AO 2000-21.

organizational structure for the party

from the statewide level down

through local levels, and the bylaws

clearly identify the role of the Green

Party of Kentucky.

The Green Party of Kentucky

satisfies the second requirement—

ballot access for a federal candidate—in that two individuals who

had met the requirements for

becoming a federal candidate gained

ballot access as candidates of the

Green Party of Kentucky in 2000.

They were Ralph Nader for President and Ken Sain for U.S. Representative.

Date Issued: February 15, 2001;

Length: 3 pages.✦

Advisory Opinion Request

AOR 2001-5

Application of allocation rules to

party committee litigation expenses

related to state law issues (New

Jersey Republican State Committee,

March 21, 2001)✦
April 2001 Federal Election Commission RECORD

7

Committees Fined for Late

and Nonfiled Reports

On March 9, 2001, the Federal

Election Commission publicized its

final action on 6 new Administrative

Fine cases, bringing the total

number of cases to 48. Civil money

Compliance

Committee Civil Penalty Late/Nonfiler

Blake for Congress Committee $900 Nonfiler

John Fee for Congress $1,475 Late

Messer for Congress $2,700 Nonfiler

People for Royal Hart $725 Late

Rod Martin for Congress, Inc. $775 Late

Trotter 2000 for Congress $350 Late

ADR Program Resolves

More Cases

On February 16, 2001, the

Commission resolved five additional cases under the Alternative

Dispute Resolution (ADR) program.

The respondents, the alleged

violations of the Federal Elections

Campaign Act (the Act) and the

penalties assessed are listed below.

• The Byrum for Congress Committee agreed to pay a $1,850 civil

money penalty for having failed to

report earmarked contributions.

The respondent will attend an

FEC-sponsored seminar on

Alternative

Dispute

Resolution

committee’s treasurer is absent, the

committee cannot make expenditures or accept contributions unless

it has designated an assistant

treasurer on the committee’s Statement of Organization (Form 1).

Committees are therefore strongly

encouraged to name an assistant

treasurer to fill any vacancies in the

office of treasurer.

Treasurer’s Liability in

Enforcement Actions

In an enforcement action brought

against a committee, the Commission names as respondents (i.e.,

those alleged to have violated the

law) both the committee itself and

the committee treasurer, in his or

her official capacity. When an

enforcement action alleges violations that occurred during the term

of a past treasurer, the Commission

nonetheless names the current

treasurer as a respondent in his or

her official capacity.

Treasurer’s Liability Under

Administrative Fine Program

Similarly, when the Commission

makes a final determination and

assesses a civil money penalty

against a committee and its treasurer

under the Administrative Fine

Program, both the committee and

the treasurer are liable for the fine. It

is therefore important for treasurers

to understand fully their obligations

and responsibilities under the law.

For more information, call the

FEC’s Information Division, 202/

694-1100 or toll free at 800/424-

9530 (press 1, then 3).✦

penalties are determined by the

number of days the report was late

or whether the report was so late as

to be considered not filed, the

amount of financial activity involved and any prior penalties for

violations. Election sensitive reports

(reports and notices filed prior to an

election) receive higher penalties.

The committees (listed in the chart

below) and the treasurers of those

committees were assessed civil

money penalties when the Commission made its final determination.

Unpaid civil money penalties are

referred to the Department of the

Treasury for collection.

The Administrative Fine Program

has a twofold purpose:

• To free critical Commission

resources for more important and

complex enforcement efforts; and

• To reduce the number of financial

reports filed late or not at all.

Closed Administrative Fine case

files are available through the FEC

Press Office, at 800/424-9530 (press

2) and the Public Records Office, at

800/424-9530 (press 3).✦

Electronic Filing and Reporting

Requirements and will meet with

Commission staff for briefing

sessions on reporting procedures.

• Prochoice Voter, the Westchester

Coalition for Legal Abortion, Inc.,

and the Westchester Coalition for

Legal Abortion PAC agreed to pay

a $1,117.70 civil money penalty

for violations resulting from

activities that allegedly resulted in

prohibited contributions.

• The Friedheim for Senate Committee agreed to pay a $1,000 civil

money penalty for its failure to file

disclosure reports in a timely

manner. The Committee subsequently filed the reports and

agreed to terminate activities.

• The Committee to Elect Thomas

Cramer agreed to pay a $1,000

(continued on page 8)
Federal Election Commission RECORD April 2001

8

On Appeal

John Jay Hooker v. Don

Sundquist, et al.

On November 9, 2000, John Jay

Hooker appealed this case to the

U.S. Court of Appeals for the Sixth

Circuit. The appeal challenged a

final judgment by the U.S. District

Court of Tennessee that upheld the

constitutionality of the Presidential

Election Campaign Fund and

Presidential Primary Matching

Payment Account Acts and also

found that Hooker “lack[ed]

standing to challenge Congress’

authority to regulate federal elections.” The court further held that

Hooker was barred from challenging the federal campaign finance

statutes because he had unsuccessfully raised those claims in previous

litigation. This case was originally

argued as Hooker v. All Contributors, et al. See the August 2000

issue of the Record, page 15.✦

Ralph Nader, et al.v. FEC

On January 31, 2001, Ralph

Nader, et al., filed a petition for writ

of certiorari with the U.S. Supreme

Court. Petitioners seek to appeal a

November 1, 2000, decision by the

U.S. Court of Appeals for the First

Circuit upholding a district court’s

denial of relief. Petitioners had

asked for the FEC’s Debate Regulations to be set aside, arguing that the

regulations were in excess of the

FEC’s statutory authority under

the Federal Election Campaign

Act. This case, originally filed as

Becker v. FEC, was covered in the

November Record, p. 8.✦

Court Cases

civil money penalty for violations

resulting from its failure to file

reports on time, to designate a

campaign depository and to

accurately report contributions.

The respondent subsequently

amended and corrected the reports

and will attend an FEC-sponsored

training seminar.

• Dr. Daniel R. Hightower agreed to

pay a $1,200 civil money penalty

for violations relating to corporate

contributions and contributions

made in the names of others. The

respondent will adopt and distribute, within 90 days of the effective

date of the agreement, a corporate

policy prohibiting corporate

contributions to federal elections.

The ADR program’s goal is to

expedite resolution of some enforcement matters, reduce the cost of

processing complaints and enhance

overall FEC enforcement. For a case

to be considered for ADR treatment,

a respondent must express willingness to engage in the ADR process,

agree to set aside the statute of

limitations while the case is pending

in the ADR Office and agree to

participate in bilateral negotiations

and, if necessary, mediation. Cases

resolved through ADR do not set a

precedent for other enforcement

actions or procedures.

Closed ADR-negotiated settlement summaries are available from

the Public Records Office at 999 E

Street, NW., Washington, DC

20463. The Public Records Office

may also be contacted at 800/424-

9530 (press 3).✦

Alternative Dispute

Resolution

(continued from page 7)

The FEC Takes Visa

and Mastercard

 FEC customers can pay for FEC

materials with Visa or

Mastercard. Most FEC materials

are available free of charge, but

some are sold, including financial

statistical reports ($10 each),

candidate indexes ($10) and PAC

directories ($13.25). The FEC

also has a 5¢ per page copying

charge for paper documents and a

15¢ per page copying charge for

microfilmed documents.

 Since the FEC will not fill an

order until payment is received,

using a credit card speeds

delivery by four to five days.

Public Appearances

April 2, 2001

Georgetown University Law

Center

Washington, DC

Lois Lerner

April 2, 2001

Political Action by Coors

Employees

Washington, DC

Commissioner Smith

April 7, 2001

Holy Redeemer Area School

Portland, Oregon

Commissioner Sandstrom

April 10, 2001

Congresswoman Norton

Washington, DC

Penelope Bonsall

April 20, 2001

University of New Mexico

Albuquerque, New Mexico

Commissioner Smith

April 27, 2001

Cato Institute

New York, New York

Commissioner Smith
April 2001 Federal Election Commission RECORD

9

Outreach

Conference for Labor and

Membership Organizations,

June 11-13

On June 11-13, the Federal

Election Commission will hold a

conference tailored to meet the

specific needs of labor and membership organizations. (Note, however,

that this conference is not for trade

associations, which have rules

unique to them. See related article

on page 11.)

The conference will consist of a

series of workshops presented by

Commissioners and experienced

FEC staff, who will explain how the

requirements of the federal election

law apply to labor and membership

organizations. The conference will

cover the basic provisions of the

federal election law and explain the

rules governing participation of

labor and membership organizations

and their political action committees

(PACs). Seminars will also address

the new electronic filing requirements. In addition, a representative

from the Internal Revenue Service

will be available to answer electionrelated tax questions.

The registration fee for this

conference is $375, which covers

the cost of the conference, materials

and meals. The deadline for registration is May 25. A late registration

fee of $10 will be added effective

May 26.

The conference will be held at the

Hilton Crystal City, 2399 Jefferson

Davis Highway, Arlington, VA

22202. A room rate of $169 single/

$189 double is available for reservations made by May 14. Call 703/

418-6800 to make reservations; you

must notify the hotel that you will

be attending the FEC conference.

After May 15, room rates are based

on availability. The hotel is located

2 1/2 blocks from the Crystal City

Metro station and 5 blocks from the

Crystal City Virginia Railway

Conference for Corporations

Date: April 4-6, 2001

Location: Washington, DC

(Loews L’Enfant Plaza)

Registration: $375

FEC Announces Spring Conferences

Conference for Trade

Associations

Date: April 9-11, 2001

Location: Arlington, VA

(Hilton Crystal City)

Registration: $350

Conference for Labor and

Membership Organizations

June 11-13, 2001

Location: Arlington, VA

(Hilton Crystal City)

Registration: $375

Sold

Out!

 The FEC will hold its annual

Washington, DC conferences for

corporations, trade associations

and labor and membership

organizations in April and June

2001. The specific information

for these conferences is listed at

right. To register for any

conference, call Sylvester

Management Corporation at 800/

246-7277. For program

information, call the FEC’s

Information Division at 800/424-

9530 (press 1, then 3) or 202/694-

1100. Registration and program

information is also available

online at: www.fec.gov/pages/

infosvc.htm#Conferences.

Express station. Limited parking is

available for a daily fee of $12.

Registration Information

Conference registrations will be

accepted on a first-come, first-serve

basis. Attendance is limited, and

FEC conferences have sold out in

past years, so please register early.

Individuals may register for the

conference on line at Sylvester

Management Corporation’s secure

Web page at www.fec.gov/pages/

infosvc.htm#Conferences. Individuals may either submit the registration form and credit card payment

information on line or they may

complete the screen-fillable conference registration form available at

the Web site, print it, and:

• Fax the form and credit card

payment information to Sylvester

Management Corporation at 803/

732-0135; or

• Mail the registration form and

conference fee to Sylvester Management Corporation, P.O. Box

986, Irmo, South Carolina 29063.

Conference registration information is also available:

• By telephone (call Sylvester

Management Corporation at 800/

246-7277); and

• By e-mail (send inquiries to

toni@sylvestermanagement.com).

Program Information

For specific program information

about this conference, call the

Federal Election Commission’s

Information Division at 800/424-

9530 (press 1, then 3) or 202/694-

1100.✦

(continued on page 11)
Federal Election Commission RECORD April 2001

1 0

Statistics

0

500

1000

1500

2000

74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00

Semiannual PAC Count

Shows Increase from July

2000

The FEC’s semiannual Political

Action Committee (PAC) count

reveals that, during the final months

of the 2000 election cycle, the

number of PACs increased by 201

committees. According to the

Federal Election Commission’s

semiannual survey, the total number

of registered PACs was 3,907, as of

January 1, 2001.

Corporate PACs remain the

largest category, with 1,545 committees, followed by nonconnected

PACs, with 1,026 committees,

trade/membership/health PACs,

with 860 committees, and labor

PACs, with 317 committees. There

were 118 PACs of corporations

without stock and 41 PACs of

cooperatives. The graph below

shows the complete PAC figures

since 1974.

PACs sponsored by corporations

and labor organizations are technically referred to as “separate

segregated funds” and must register

within 10 days of their establishment. Nonconnected PACs (those

with are not connected to or sponsored by a corporation or labor

organization, and which are not

Corporate

Nonconnected

Trade/Membership/Health

Labor

Other

related to a candidate’s campaign or

to a political party organization)

must register within 10 days after

certain financial activity exceeds

$1,000 during a calendar year.

To see a complete listing of PAC

statistics dating back to 1975, visit

the FEC’s Web site (www.fec.gov)

or request a copy of the agency’s

January 25, 2001, press release (call

800/424-9530 and press 3 for the

Public Records Office or press 2 for

the Press Office).✦

PAC Count—1974-2000
April 2001 Federal Election Commission RECORD

1 1

Campaign Guides

Available

 For each type of committee, a

Campaign Guide explains, in

clear English, the complex

regulations regarding the activity

of political committees. It shows

readers, for example, how to fill

out FEC reports and illustrates

how the law applies to practical

situations.

 The FEC publishes four

Campaign Guides, each for a

different type of committee, and

we are happy to mail your

committee as many copies as you

need, free of charge. We

encourage you to view them on

our Web site (go to www.fec.gov,

then click on “Campaign Finance

Law Resources” and then scroll

down to “Publications”).

 If you would like to place an

order for paper copies of the

Campaign Guides, please call

800-424-9530, press 1, then 3.

Are You a Membership

Organization?

The FEC’s Labor and Membership Organization Conference is

intended only for:

• Labor unions; and

• Membership organizations other

than trade associations.

If you are not certain which type

of organization you represent,

please read the following descriptions of membership organizations

and trade associations. Membership

organizations and trade associations

share many of the same characteristics—indeed, trade associations are

a type of membership organization.

Trade associations, however, have

certain unique characteristics and

rules, which set them apart from

other kinds of membership organizations.

Definition of Membership

Organization

Generally, a membership organization is defined by the following

criteria:

• It provides for members in its

articles and bylaws;

• It seeks members;

• It acknowledges the acceptance of

members (e.g., by distributing

membership cards); and

•It is not organized primarily for the

purpose of influencing the election

of an individual to federal office.

Definition of Trade Association

In addition to having the characteristics above, a trade association

possesses two unique features:

• Its membership is comprised of

persons and/or companies engaged

in a similar or related line of

commerce or business; and

• It is organized to promote and

improve the business conditions of

its members.

If your organization qualifies as a

trade association, with its own

special characteristics and rules, the

FEC asks that you register for one

of the FEC’s upcoming Regional

Conferences, which will address

trade association issues. Details

about the Regional Conferences will

be announced soon in the FEC

Record and online at www.fec.gov/

pages/infosvc.htm#Conferences.✦

The first number in each citation

refers to the “number” (month) of

the 2001 Record issue in which the

article appeared. The second

number, following the colon,

indicates the page number in that

issue. For example, “1:4” means

that the article is in the January

issue on page 4.

Advisory Opinions

2000-24: Preemption of state

election law mandating fixed

allocation ratio for administrative

and voter drive expenses, 2:2

2000-27: Status of party as state

committee, 3:6

2000-28: Disaffiliation of trade

associations and their PACs, 2:3

2000-32: Reporting uncollectable

loan, 1:9

2000-34: Name and acronym of

SSF, 2:5

2000-35: Status of party as state

committee, 1:10

2000-36: Disaffiliation of

nonconnected PACs, 2:5

2000-37: Use of campaign funds to

purchase and present Liberty

Medals, 2:6

2000-38: Registration of party

committee due to delegate

expenses, 2:7

2000-39: Status of party as state

committee, 2: 8

2000-40: Donations to legal defense

fund of Member of Congress, 3:7

2001-1: Use of political party’s

office building fund to pay

building renovation costs and

fundraising expenses of building

fund, 4:5

2001-2: Status of party as state

committee, 4:6

Compliance

Committees fined under Administrative Fines Program, 2:6, 4:7

MUR 4762: Prohibited union

contributions and other violations,

2:9

MUR 5029: Contributions in the

name of another made by corporation and government contractor,

2:10

Court Cases

_____ v. FEC

– Beaumont, Christine, 2:8, 3:2

– Buchanan, 1:10

– DNC, 2:8. 3:2

– Miles for Senate, 3:3

– Nader, 4:8

– Natural Law Party of the United

States of America, 1:10, 2:8, 3:2

Outreach

(continued from page 9)

Index

(continued on page 12)
FEDERAL ELECTION COMMISSION

999 E Street, NW

Washington, DC 20463

Official Business

Penalty for Private Use, $300

Presorted Standard

Postage and Fees Paid

Federal Election Commission

Permit Number G-31

Printed on recycled paper

Federal Election Commission RECORD April 2001

Other

– Hooker v. All Campaign Contributors, 1:10

– Hooker v. Sundquist, 4:8

Regulations

Advanced Notice of Proposed

Rulemaking on definition of

“political committee,” 4:1

Final rules for general public

political communications coordinated with candidates and party

committees; independent expenditures, 1:2

Reports

Amendments to Statements of

Organization, 2:1

California special election, 3:5

Committees required to file tax

returns, 3:4

Nevada state filing waiver, 2:2

Pennsylvania Special Election, 4:5

Reports due in 2001, 1:4

Index

(continued from page 11)