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THE FEDERAL ELECTION

COMMISSION

1325 KStreet N.W., Washington, D.C. 20463

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Volume 8, Number 2

PRESIDENT REAGAN

NAMES THREE APPOINTEES

TO COMMISSION

On December 17,1981, President Reagan

made three recess appointments to the Commission. The Senate Rules Committee has not

yet scheduled confirmation hearings.

Two of the appointments went to Lee Ann

Elliott, a Republican, and Danny Lee

McDonald, a Democrat, each of whom was

nominated to serve a six-year term. Commissioner Joan D. Aikens, whose previous

term expired in 1981, was reappointed to

serve the remaining two years of former

Commissioner Max Friedersdorf's term. (Mr.

Friedersdorf, who resigned in December

1980, was succeeded by former Commissioner

Vernon W. Thomson. Named in a recess appointment by President Carter, Mr. Thomson

held Mr. Friedersdorf's seat for one year.)

New Commissioners

Prior to her appointment to the Commission, Mrs. Elliott served as Vice President

of Bishop, Bryant & Associates, Inc., of

Washington, D.C. From 1970 to 1979, Commissioner Elliott was Associate Executive Director of the American Medical Political

Action Committee, having served as Assistant Director from 1961 to 1970. Mrs. Elliott

also served on the Board of Directors of the

American Association of Political Consultants and of the Chicago Area Public Affairs Group, of which she is a past president.

She was a member of the Public Affairs

Committee of the Chamber of Commerce of

the United States. In 1979, she received the

February 1982

Award for Excellence in Serving Corporate

Public Affairs from the National Association

of Manufacturers. Mrs. Elliott's term is

scheduled to expire on April 30, 1987.

Prior to his appointment to the Commission,

Mr. McDonald served as General Administrator of the Oklahoma Corporation Commission

since 1979. In this position, he was responsible for the management of 10 regulatory

divisions. He was Secretary of the Tulsa

County Election Board from 1974 to 1979,

and served as Chief Clerk of the Board in

1973. He has also served as a member of the

Advisory Panel to the FEC's National Clearinghouse on Election Administration. Mr.

McDonald's term as FEC Commissioner is

scheduled to expire on April 30, 1987.

NEW OFFICERS ELECTED

On January 7, 1982, the Federal Election

Commission unanimously elected Frank P.

Reiche as Chairman and Danny Lee

McDonald as Vice Chairman to serve oneyear terms. Mr. Reiche succeeded Commissioner John Warren McGarry in the Chairmanship. Mr. McDonald succeeded Mr.

Reiche as Vice Chairman.

Under current procedures, the Commission

elects its officers at the last public meeting

in December, and the terms of office coincide with the calendar year. The election of

new officers for 1982, scheduled for December 17, 1981, was delayed, however, due to

the appointment of three new members to

the Commission that same day (see above).

Chairman Reiche, a member of the Commission since July 31, 1979, served as Vice

Chairman during 1981. Prior to his appointcontinued
2

The Record is published by the Federal Election Commission, 1325 K Street, N.W.,

Washington, D.C. 20463. Commissioners are: Frank P. Reiche, Chairman; Danny Lee

McDonald, Vice Chairman; Joan D. Aikens; Lee Ann Elliott; Thomas E. Harris; John Warren

McGarry; William F. Hildenbrand, Secretary of the Senate, Ex Officio; Edmund L.

Henshaw, Jr., Clerk of the House of Representatives, Ex Officio. For more information,

call 202/523-4068 or toll-free 800/424-9530.

Vice Chairman McDonald's prior experience

is detailed above.

•

Date No.

Made of

AOR Subject PUblic Pages

1981-60 PAC and candidate's soli- 12129/81 2

citation letters forwarded

by citizen recipient to

other individuals.

1981-61 Payment by bank holding 12130/81 13

company of chairman's

contribution to state

. party com mittee,

1982-1 Funds transferred from 117/82 4

terminated 1982 Congressional campaign to newly

registered 1982 Senate

campaign.

ADVISORY OPINIONS: SUMMARIES

An Advisory Opinion (AO) issued by the

Commission provides guidance with regard to

the specific situation described in the AOR.

Any qualified person who has requested an

AO and acts in accordance with the opinion

will not be subject to any sanctions under the

Act. Other persons may rely on the opinion

if they are involved in a specific activity

which is indistinguishable in all material

aspects from the activity discussed in the

AO. Those seeking guidance for their own

activity, however, should consult the full text

of an AO and not rely only on the summary

given here.

Under the plan, several members of the partnership would provide an information clearinghouse to distribute solicitation letters received in connection with campaigns for fedAO 1981-50: Plan to Facilitate Member

Participation in Partnership

Contributions

A plan proposed by the law partnership of

Hansell, Post, Brandon &: Dorsey (the partnership) to facilitate members' participation

in contributions by the partnership to federal

candidates would not cause the partnership to

become a political committee under the Act.

3

No.

of

Pages

9

Date

Made

Public

12/15/81

Earmarking contributions 12117/81

to candidates and

committees through PAC.

Subject

PAC established by partnership of three corporations; solici tation of partnership's personnel by

trade association.

1981-58 State campaign funds 12/22/81

used for litigation involving Congressional

reapportionment.

1981-59 Procedures for transfer- 12129/81 6

ring proceeds raised

through joint fundraising

by state/federal PACs of

trade association.

AOR

1981-56

1981-57

ADVISORY OPINION REQUESTS

The following chart lists recent AORs.

The full text of each AOR is available to the

public in the Commission's Office of Public

Records.

ment to the Commission, Mr. Reiche was a

practicing attorney and partner in the

Princeton, N.J., law firm of Smith, Stratton,

Wise and Heher. He served as a member of

New Jersey Governor William T. Cahill's Tax

Policy Committee from 1970 to 1972. Governor Cahill appointed Mr. Reiche Chairman

of the first New Jersey Election Law Enforcement Commission in 1973; he was reappointed as Chairman by Governor Brendan

Byrne in 1975. During 1977-78, he also served

as Chairman of the Steering Committee of

Interstate Agencies, which led to the organization of the Council on Governmental Ethics

Laws. Mr. Reiche's term as a member of the

Commission will expire on April 30, 1985.

:i···C,~:~.~-~~;,~~,~~/.:

___ ~v~_~<- '_ _t._~'"...y~'">~__ ,,-~~~~__ .-<':*::;_ ~"':.-L.:~C;~ .._ .~~.~~-: -::~~~_
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eral office and a bookkeeping service to

facilitate members' participation in partnership contributions. The group would recommend a guideline for total annual contributions from the members. The partnership

would keep records of me mbers who wished

to participate in partnership contributions,

including the amount he/she wished to designate to a particular candidate. When the

partnership made a contribution to a campaign committee, it would send a partnership

check with a cover letter itemizing each

member's share of the contribution. The

account of each member participating in that

contribution would then be charged for

his/her share of the contribution.

Under the Act and Commission Regulations,

partnerships do not become political committees by virtue of contributing to federal

candidates. Partnerships may make contributions, as long as: I) they do not exceed the

per election monetary limits for contributions from persons and 2) they attribute their

contributions to both the partnership and the

individual partners. 11 CFR 110.1(e).

Under the proposed plan, the partnership

would meet these requirements. Additionally, there would be no separate fund established to collect contributions from members

for transmittal to federal candidates. The

plan Would not require members to designate

contributions of a specific amount to any

particular candidate or class of candidates on

an annual basis. The incidental expenditures

for implementing the plan -less than $1,000-

would be considered part of the partnership's

effort to obtain the consent of members who

wished to share in a partnership contribution.

Commissioner Frank P. Reiche filed a concurring opinion. (Date issued: December 14,

1981; Length: 7 pages, including concurring

opinion)

ADVISORY OPINION

UPDATE AVAILABLE

A supplement updating the Commission's

cumulative Index to Advisory Opinions is now

available. The December 1981 Interim Sheet

includes all opinions issued from August

through December 31, 1981. Purchase price

for the December 1981 Interim Sheet is $.90.

The cumulative Index to Advisory Opinions,

providing a subject index and indexes by the

U.S. Code and the Code of Federal Regula3

tions for all opiruons issued between April

1975 and December 1981, is also available for

$6.00. Orders, accompanied by checks made

payable to the United States Treasurer,

should be sent to the FEe's Office of Public

Records.

ELECTION YEAR REPORTING SCHEDULE

The following' paragraphs explain the

reporting schedule for the various categories

of filers during the 1982 election year.

I. Authorized Candidate Committees Active

in 1982 Elections

Authorized candidate committees active

in 1982 elections are required to file preprimary and pre-general election reports,

a post-general election report and quarterly reports during 1982. (For filing dates

of reports, see pages 4 and 5 below.)

2. Authorized Candidate Committees Not

Active in 1982 Elections

Authorized candidate committees that

will not be active in 1982 elections (i.e.,

committees authorized by candidates

seeking election in a year other than 1982

or committees active in previous elections with outstanding campaign debts)

must continue to report semiannually.

(For filing dates of reports, see page 4

below.)

3. Authorized Presidential Filers

Authorized Presidential committees may

continue to report on a monthly or quarterly basis during 1982. (For filing dates

of reports, see page 4 below.)

Note: The FEC's Reports Analysis Division requests that Presidential committees that change their reporting schedule

during 1982 notify the Commission of

their intention in writing.

4. Unauthorized Committees

All unauthorized committees (Le., eom-.

mittees not authorized by candidates) are.

required to file on either a quarterly or

monthly basis in 1982. (The reporting

continued
MONTHLY REPORTS

schedules for quarterly and monthly filers

are detailed below.)

Those committees that choose to file

qU8l'terly must also file a post-general

election report. Quarterly filers supporting candidates in 1982 elections also file

pre-primary and pre-general election reports if this financial aetlvity has not

been previously disclosed. (For filing

dates of reports, see below.)

Note: Unauthorized committees that wish

to change their reporting schedule during

1982 must notify the Commission of their

intention by a letter submitted with the

next report due at the time they decide to

change their filing frequency. A committee may not change its filing frequency

more than once during 1982. 11 CFR

104.5(c).

Month

February

March

April

May

iune

July

August

September

October

Pre-Election

Post-Election

Year-End

Period Covered

1/1 - 1/31

2/1 - 2/28

3/1 - 3/31

4/1 - 4/30

5/1-5/31

6/1 - 6/30

7/1-7/31

8/1 -8/31

9/1 - 9/30

10/1 - 10/20

10/21 - 11/24

11/25 - 12/31

Filing Date

February 20

March 20

April 20

May 20

June 20

JUly 20

August 20

September 20

October 20

October 23

December 4

January 31,1983

•

QUARTERLY REPORTS'

During 1982, reporting forms and additional

information will be sent to all registered

committees. Questions and requests for

forms should be addressed to the Office of

Public Comm unications, Federal Election

Commission, 1325 K Street, N.W., Washington, D.C. 20463; or call 202/523-4068 or toll

free 800/424-9530.

Quarter

First

Second

Third

Fourth

(Year-End)

Close of Books

March 31

June 30

September 30

December 31

Filing Date (and

mailing date if

sent by registered

or certified mail)

April 15

July 15

October 15

January 31,1983

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DUE DATES FOR 1982 REPORTS

The charts below list filing dates for

reports required during the 1982 election

year. Reporting schedules are provided for

pre- and post-election reports, as well as

monthly, quarterly and semiannual reports.

GENERAL ELECTION

ltQuarterly Waiver: If a pre-election report is due

within the period beginning on the 5th day and

ending on the 15th day after the close of a calendar

quarter, the quarterly report is waived.

SEMIANNUAL REPORTS

Date of Election:

Pre-Election Report

Closing date of books:

Mailing date:

Filing date:

Post-Election Report

Closing date of books:

Mailing date:

Filing Date:

November 2

October 13

October 18

October 21

November 22

December 2

December 2

4

Report

First

Second

Period Covered

1/1 - 6/30

7/1 - l2/31

Filing Date

July 31

January 31,1983

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FILING DATES - 1982 REPORTS

PRIMARY ELECTION REPORTS 12-Day Pre-Election Report

CONGRESSIONAL

• Mailing Date (if

Date of Closing Date sent by registered Filing

State or Territory Election of Books or certified mail) Date

Alabama September 7 August 18 August 23 August 26

Alabama runoff September 28 September 8 September 13 September 16

Alaska August 24 August 4 August 9 August 12

"'Arizona September 7 August 18 August 23 August 26

"''''American Samoa November 2 October 13 October 18 October 21

American Samoa runoff November 16 October 27 November 1 November 4

Arkansas May 25 May 5 May 10 May 13

Arkansas runoff June 8 May 19 May 24 May 27

• California June 8 May 19 May 24 May 27

Colorado September 14 August 25 August 30 September 2

• Connecticut September 7 August 18 August 23 August 26

"'Delaware September 11 August 22 August 27 August 30

•• District of Columbia September 14 August 25 August 30 September 2

"'Florida September 7 August 18 August 23 August 26

Florida runoff October 5 September 15 September 20 September 23

Georgia August 10 JUly 21 July 26 July 29

Georgia runoff August 31 August 11 August 16 August 19

• "''''Guam September 4 August 15 August 20 August 23

"'Hawaii September 18 August 29 September 3 September 6

Idaho May 25 May 5 May 10 May 13

Illinois March 16 February 24 March 1 March 4

"'Indiana May 4 April 14 April 19 April 22

Iowa June 8 May 19 May 24 May 27

Kansas August 3 July 14 July 19 JUly 22

Kentucky May 25 May 5 May 10 May 13

Louisianna September II August 22 August 27 August 30

·Maine June 8 May 19 May 24 May 27

• Maryland September 14 August 25 August 30 September 2

• Massachusetts September 14 August 25 August 30 September 2

·Michigan August.$' (0 JUly M' zr JUly~.z.b JUlY~L5f

• Minnesota September 14 August 25 August 30 September 2

• Note: Primary election dates are subject to change.

"'States holding Senate elections.

• ·The District of Columbia and the U.S. Territories of American Samoa, Guam and the Virgin Islands will each hold an election

for Delegate to the U.S. House of Representatives.

5
PRIMARY ELECTION REPORTS 12-Day Pre-Election Report

CONGRESSIONAL

Mailing Date (if

Date of Closing Date sent by registered Filing .' State or Territory Election of Books or certified mail Date

• Mississippi Aug, '.1 ~:1",I'f~ ~~,_2. ~Au.:J'~ Mississippi runoff ~~.$I ~f4g./' Jttnrl~, J~ J~ fluB,JCf

• Missouri August 3 July 14 July 19 July 22

* Montana June 8 May 19 . May 24 May 27

• Nebraska May 11 April 21 April 26 April 29

*Nevada September 14 August 25 August 30 September 2

New Hampshire September 14 August 25 August 30 September 2

*New Jersey June 8 May 19 May 24 May 27

·New Mexico June 1 May 12 May 17 May 20

*New York September l-t"'" 23 Alolgyst 25 Septt 3 A.ugysHtl Seflt.8 Septem ber II

North Carolina May 4 April 14 April 19 April 22

North Carolina runoff June 1 May 12 May 17 May 20

"'North Dakota June 8 May 19 May 24 May 27

*Ohio June 8 May 19 May 24 May 27

Oklahoma August 24 August 4 August 9 August 12

Oklahoma runoff September 21 September 1 September 6 September 9

Oregon May 18 April 28 May 3 May 6

• Pennsylvania May 18 April 28 May 3 May 6

Puerto Rico

Representatives

No Election for Resident

in 1982

Commissioner to the U.S. House of

•

*Rhode Island September 14 August 25 August 30 September 2

South Carolina June 8 May 19 May 24 May 27

South Carolina runoff June 22 June 2 June 7 June 10

South Dakota June I May 12 May 17 May 20

·Tennessee August 5 July 16 JUly 21 July 24

*Texas May 1 April 11 April 16 April]9 ,

Texas runoff June 5 May 16 May 21 May 24

·Utah September 14 August 25 August 30 September 2

*Vermont September 14 August 25 August 30 September 2

• *Virgin Islands September 14 August 25 August 30 September 2

*Virginia June 8 May 19 May 24 May 27

*Washington September 14 August 25 August 30 September 2

·West Virginia June 1 May 12 May 17 May 20

*Wisconsin September 14 August 25 August 30 September 2

·Wyoming September 14 August 25 August 30 September 2

'.

6
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REAGAN BUSH COMMITTEE v. FEC

On December 10, 1981, the U.S. Court of

Appeals for the District of Columbia Circuit

denied an injunction barring the FEC from

releasing an interim audit report of the

Reagan Bush Committee's (the Committee's)

publicly funded general election campaign.

The Committee had sought the injunction

pending its appeal of an earlier decision by

the district court, which had also denied its

motion for an injunction (Reagan Bush Committee v. FEC; Civil Action No. C.A.

81-1893). The appeals court found no merit

in the Committee's argument that release of

the interim audit report would cause the

Committee "irreparable harm," especially "in

the absence of clear Congressional intent

that interim audit reports are not to be made

public," Moreover, the court held that

appellant's motion was "particularly inappropriate in the light of the well established

policy that courts should not interfere in an

interim agency action when Congress has

enacted special statutory procedures for review of the final result."

Plaintiff's Claims

In filing its suit with the district court on

August 10, 1981, the Committee had asked

the court to issue an order:

Preliminarily enjoining the FEC from releasing an interim audit report dealing

with the Reagan Bush campaign; and

Requiring disclosure of certain materials

under the Freedom of Information Act

(FOIA).

Plaintiff had also asked the court to enjoin

the FEC from taking any further action with

respect to the Committee's "alleged violations" of the Act or repayments of publte

funds recommended by the FEC, until the

Commission:

Made available all the documents requested by the Committee under the

FOIA;

Provided the Committee with a further

opportunity to respond to the alleged violations and recommended repayments; and

Conducted a hearing on these disputed

matters.

7

District Court's Ruling

In granting the FEC's motion for summary

judgment in the suit, the district court ruled

that the interim audit report was not a final

FEC determination on repayments and that

the "FEC audit process leading to repayment

determinations is replete with procedural

protections" that would allow the Committee

to dispute any FEC audit findings before the

Commission made a final repayment determination. Moreover, the court pointed out

that repayment determinations and the procedure for enforcing violations of the election law are treated as two different functions under the statutory scheme and by the

FEC in practice. The court concluded, therefore, that the Committee's "fears of disclosure of information relating to alleged

violations are groundless...."

Plaintiff further claimed that public disclosure of the interim audit report was

barred by 2 U.S.C. §437g(a)(12). The court

found, however, that this provision applied

only to enforcement proceedings initiated under the Act (I.e., investigations into alleged

violations of the Act); separate provisions

spelled out procedures for conducting audits

and making repayment determinations with

regard to publicly funded Presidential candidates. (See 26 U.S.C. §9007(a) and (bl.)

Refuting plaintiff's claim that the Presidential audit information could be disclosed

only to Congress, the district court affirmed

the FEC's argument that such reports must

be made public by law. 26 U.S.C. §§9007 and

9009(a). "The public has a right to know, and

promptly, how its monies are spent by Presidential campaign committees." Moreover, the

court affirmed the FEC's position that the

audit report was subject to disclosure under

the FOIA.

The district court also dismissed without prejudice plaintiff's petition for a court order

requiring the FEC to disclose certain information the Committee had requested under

the FOIA. The court found that the Committee had "never specified to the court which

documents should be disclosed" and had "not

challenged the FEC's assertion" that the FEC

had substantially complied with the Committee's requests for information available under

the FOIA.

continued
The Commission released the final audit report for the Reagan Bush campaign on December 11, 1981.

KENNEDY FOR PR~IDENT

COMMITTEE v.FEC

On December 21, 1981, the U.S. District

Court for the District of Columbia issued a

consent order resolving claims brought by the

Kennedy campaign against the Commission in

Kennedy for President Committee v. FEC

(Civil Action No. 81-2552). The court dismissed with prejudice all other pending judicial claims between the Kennedy Committee

and the Federal Election Commission.

Plaintiff's Claims

In the suit, filed on October 21, 1981, the

Kennedy Committee claimed that the FEC

had violated the Government in the Sunshine

Act (5 U.S.C. §552b) by:

Considering the final audit report on Senator Edward Kennedy's Presidential primary campaign in executive sessions,

which are closed to the publici and

Failing to indicate in public notices announcing these executive sessions that the

FEC would consider the Kennedy audit

report. The Kennedy Committee had

asked the district court to order the FEC

to make available to the Kennedy campaign and the public a tape recording or

written transcript (as well as any other

documents) pertaining to the FEC's discussion of the audit report.

Resolution of Claims

In the consent order, the FEC agreed to

make available to plaintiff and the public

portions of the transcript involving the FEC's

consideration of the final Kennedy audit report at Commission meetings held on August

25 and 26 and September 15 and 16, 1981.

The Commission also .agreed to make available documents pertaining to those meetings.

Both parties agreed, however, that the Commission could delete from these transcripts

discussions related solely to FEC personnel

matters, enforcement actions, litigation

strategy and matters exempted from public

disclosure by the Freedom of Information Act

(FOIA). Similarly, the parties agreed that

portions of the documents pertaining to those

meetings could be withheld pursuant to various exemptions under the Freedom of Information Act.

8

The consent order expressly conditioned release of the transcripts on the parties' compliance with the following requirements:

Within 15 days of the order, the FEC

would make available an index of deletions in the transcripts and documents

to be released. The Kennedy Committee

could then object to any deletions in the

transcript within 10 days of the index's

release. Disputed deletions could not,

however, delay release of the transcripts

or documents.

Fifteen days after the Committee received the index, the FEC would make

available copies of those portions of the

transcripts and documents which the FEC

determined were not exempt from disclosure.

Within 20 days of receiving the transcripts and documents, the Kennedy Committee would present to the Commission

any objections to deletions in writing.

The FEC, in turn, would notify the Committee of its final determination on any disputed deletions within 20 days.

The Kennedy Committee could ask the

court to review any deletions still in dispute within 15 days of receiving the FEC's

final determination on them. In reviewing

such claims, the court would limit its

consideration to whether the FEC had

improperly withheld material from the

transcripts.

NCPAC/STAHLMAN v; FEC

On December 8t 1981, the U. S. Court of

Appeals for the District of Columbia Circuit

issued a memorandum in National Conservative Political Action Committee (NCPAC)

and Rhonda K. Stahlman v. FEC (Civil

Action No. 80-1949), which dismissed plaintiffs' constitutional challenges to contribution limits. The appeals court's ruling affirmed an earlier decision by the district

court in the sui t.

Plaintiffs' Constitutional Claims

In their suit, originally filed with the

district court in December 1979, plaintiffs

NCPAC and Stahlman had challenged the

constitutionality of those provisions of the

election law that prescribe limits on contributions from individuals, groups and political

committees to other individuals, groups and

continued

•

•

•
•

.-.

•

political committees that make independent

expenditures. Plaintiffs had claimed that

these provisions define the term "contribution" in overly broad and vague terms. They

had asked the district court to certify their

constitutional claims to the appeals court,

pursuant to 2 U.S.C. S437h.

Rejecting plaintiffs' constitutional claims,

the district court had pointed out that, in its

Buckley v. Valeo decision, the Supreme Court

had upheld the constitutionality of the contribution limits. Buckley v. Valeo, 424 U.S. 1

at 38 (1976). (For a detailed summary of the

district court's opinion, see page 7 of the

September 1980 Record.)

In appealing the district court's decision,

plaintiffs reasserted their constitutional

challenges. They also asked the appeals court

to find "erroneous" the district court's refusal

to certify their challenges to the appeals

court.

Appeals Court Ruling

Citing as precedent the Supreme Co~t's

June 1981 decision in California Medical

Assoc. (CMA) v. FEC,· the appeals court

rejected plaintiffs' constitutional challenges

and affirmed the district court's disposition

of the case.

The appeals court rejected plaintiffs' assertion that NCPAC was not subject to the

CMA decision because it not only made contributions but made independent expenditures

as well. The court said the CMA decision did

apply because NCPAC's activity was not limited to independent expenditures. Moreover,

the court held that limits on NCPAC contributors did not impermissibly infringe on their

free speech rights because the contributions

constituted "'speech by proxy'" since contributors had no voice in NCPAC's decisions

concerning independent expenditures. 101

S.Ct. at 2721-22.

The appeals court also followed precedent set

by the CMA decision in rejecting plaintiffs'

assertion that unlimited contributions earmarked for NCPAC's independent expenditures would not".•.risk corrupting or appearing to corrupt the political process in the

• For a summary of the Supreme Court's

decision in California Medical Assoc. v.

FEC, see page 1 of the August 1981

ReCord.

9

manner Congress sought to prohibit." 101

S.Ct. at 2723 n, 19; 494 F. Supp, at 137.

RICHARD B. KAY v. FEC

On December 1, 1981, the U.S. Court of

Appeals for the District of Columbia Circuit

issued a judgment in Richard B. Kay v. FEC

(Civil Action No. 80-3081), which upheld the

district court's decision that the FEC's dismissal of a complaint filed by plaintiff had

not been contrary to law.

Mr. Kay, who had been a Presidential primary

candidate in Ohio, had alleged in his complaint that a full-page chart published in the

Cleveland Plain Dealer before the 1980 Ohio

Presidential primary was a political advertisement by the publishing company, constituting either a corporate expenditure or a

corporate in-kind contribution - both prohibited under the Act. The district court

upheld the General Counsel's recommendation that the chart be treated as a news

story, exempted from the definitions of contribution and expenditure. 2 U.S.C. S431

(9)(B)(i). (For a detailed summary of the suit,

see page 6 of the June 1981 Record.)

READER'S DIGFST ASSOC., INC. v. FEC

On October 30, 1981, the U. S. District

Court for the Southern District of New York

issued a stipulation and order dismissing

Reader's Digest Assoc., Inc. (RDA) v. FEC

(Civil Action No. 81 clv. 596 (PNL». The

court's action followed the Commission's decision to dismiss a complaint filed against

plaintiff in August 1980, which had alleged

that RDA had violated 2 U.S.C. S441b(a) by

distributing a video tape to major media

outlets that provided a computer reenactment of Senator Edward Kennedy's automobile accident at Chappaquiddick, The complaint had alledged that the distribution constituted an "illegal corporate expenditure to

negatively influence" the 1980 Presidential

elections.

RDA's suit had sought a court injunction

barring an FEC investigation of the complaint. RDA had asserted that, as a publishing

corporation, it. was automatically exempt

from FEC scrutiny. In an earlier opinion,

issued in March 1981, the district court had

continued
1982-1 11 CFR Part 110; Com- 1/27/82 47 Fed.

munications: Advertising Reg. 3796

(Notice of proposed rulemaking)

The item below identifies an FEC document

that appeared in the Federal Register on

January 27, 1982. Copies of this notice are

not available from the FEC.

ruled, however, that the Commission could

conduct a limited inquiry into the factual

question of whether dissemination of the

tapes was within the normal course of RDA's

publishing function and therefore covered by

the news story exemption. 2 U.S.C. §43l(9)

(B)(O. In the ensuing investigation, the Commission did not uncover any evidence to suggest that the distribution was outside the

scope of RDA's functions as a publisher. In

August 1981, therefore, the Commission

found no probable cause to believe RDA had

violated 2 U.S.C. §441b. (For a detailed

summary of the suit, see the May 1981

Record.)

NEW LITIGATION

Kennedy for President Committee Y. FEe

Pursuant to 26 U.S.C. §9041(a), plaintiff

has petitioned the U.S. Court of Appeals for

the District of Columbia Circuit to review an

FEC determination to deny certification of a

primary matching fund payment to plaintiff.

Plaintiff claims the payment was "wrongfully

withheld" and seeks a court order directing

the Commission to certify the payment.

(U.s. Court of Appeals for the District of

Columbia Circuit, Docket No. 81-2403, December 31, 1981.)

Notice Title Date Citation

FEDERAL ELECTION COMMISSION

1325 K STREET, NW

WASHINGTON, DC 20463

OFFICIAL BUSINESS

FIRST CLASS MAIL

POSTAGE s FEES PAID

FEC

WASHINGTON, DC

PERMIT NO. G31

•