•

September1983

FEDERAL ELECTION COMMISSION

1325 K Street NW Washington DC 20463 Volume 9, Number

FEC PRESCRIBES TECHNICAL AMENDMENTS

TO RULES FOR PUBIJC FUNDING OF

PRESIDENTIAL NOMINATING CONVENTIONS

On July 21, 1983, the Commission prescribed

technical conforming amendments to its regulations governing public funding of Presidential

nominating conventions. 11 CFR Part 9008. Since

the conforming amendments Were not a substantive rule representing an FEC policy decision,

they were not submitted for Congressional review

but became effective upon publication in the

Federal Register on July 21 (48 Fed. Reg. 33244).

Copies of the Federal Register notice may be

obtained by writing the FEC's Public Communications Office, 1325 K Street, N.W., Washington,

D.C. 20463 or by calling: 202/523-4068 or toll

free 800/424-9530.

Changes Consistent With 1979 Amendments

to the Act

To conform with 1979 amendments to the

election law, the modified rules:

Increase the amount of convention financing

available to major and minor political parties

from $2 million to $3 million (plus a cost-ofliving adjustmen 0; and

Modify the convention committee's" requirements for documenting expenditures so that

the requirements apply only to those expenditures exceeding $200 (formerly $100) and not

to aggregate expenditures to the same payee

(as formerly required).

Use of New Term: "MetropoIitan

Statistical Area"

The amended rules incorporate, where appropriate, the new term used by the Office of

Management and Budget to define a metropolitan

area, that is, "metropolitan statistical area" (formerly "standard metropolitan statistical area").

*To establish eligibility ior a convention

grant, the national committee of a political party

must register a convention committee, in addition

to meeting all the other eligibility requirements.

See Part 9008 of FEe Regulations.

1984 PRIMARY DATES AVAILABLE

A state-by-state listing of 1984 primary election dates is now available from

the FEC's Public Communications Office.

Covering both Presidential and Congressional primaries, the list is based on information obtained from Secretaries of

State. It also includes state filing deadlines

for primary candidates seeking ballot access. The list, still not complete, will be

updated periodically as new information

becomes available. To obtain a copy, or for

more information, contact the Public Communications Office at 202/523-4068 or toll

free 800/424-9530.

For example, the amendments specify that 

business located within the same metropolita

statistical area as the convention city is consi

ered a local business, eligible to sell promotion

items to convention attendees.

GENERAL ELECTION REGULATIONS

SENT TO CONGRESS

On JUly 1, 1983, the Commission transmitte

to Congress revised regulations governing th

public financing of Presidential general electio

campaigns. The revised regulations contain cla

ifications based on the Commission's experienc

in administering the public funding of the 198

general election. They also ensure that the rul

governing general election campaigns are consi

tent with recent revisions to the FEC's prima

matching fund regulations, (For a summary 

those regulations, see page 1 of the March 198

Record.) Moreover, the proposed rules add ne

provisions to cover aspects of the Presidenti

general election process not previously addresse

in the regulations,

The regulations governing the public funding 

Presidential general election campaigns were pu

lished in the Federal Register on April 4, 1983 (4

Fed. Reg. 14532). They may be prescribed 3

legislative days after their transmittal to Co

gress. The following paragraphs highlight th

major rnodiftca tions, Readers should not rely sol

(continued on page 
special election), the national and state p

committees would each have had a single limi

both elections, regardless of the number of ca

dates they supported.

FEDERAL ELECTION COMMISSION Volume 9, Numo

ADVISORY OPINION REQUESTS

The following chart lists recent requests for

advisory opinions (AORs). The full text of each

AOR is available to the public in the Commission's Office of Public Records.

AOR Subject

1983-19 Administrative expenses of joint venture corporation's PAC absorbed by

parent corporation; affiliation of PAC

with parent corporation's PAC. (Date

made publics July 12, 1983; Length: 4

pages, plus 43-page supplement) .

1983-20 Independent expenditures (in excess of

$1,000) made by unauthorized committee to oppose election of publicly

funded Presidential nominee. (Date

made public: July 6, 1983; Length: 2

pages)

ADVlSORY 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 indistin-

~ishable i!1 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.

AO 1983-16: Party Expenditures in Special

General Eleetion and

Runoff Election

The national and state committees of Mrs. Sala

Burton's party could each have made special limited (S44Ia(d» expenditures on her behalf in a

California special election held on June 21. Each

committee had a separate spending limit. If a

runoff election had been held (because no candidate obtained a majority of the votes in the

The election law permits party committee

make these special limited expenditures on be

o.f their Congressional candidates in general e

t ions, 2 U.S.C. §441a(d). Commission Regulat

define a "general election" as one held to m

the final selection of one individual to fi

federal office. 11 CFR 100.2(b)(2). The Jun

special e1ectio~ met this requirement. The Au

16 runoff election would have been a continua

of the June general election because the ca

dates would have been limited to those who ra

the June 21 election. 11 CFR IOO.2(d)(2). C

sequently, one limit would have applied to ex

ditures made in both elections.

For purposes of. donors' contribution limits, h

ever, the elections would have been consid

separate elections because a separate contr

tion limit applies with respect to "any electi

regardless of what type it is. 2 U.S.C. S44la(a)

The Commission noted that this opinion su

seded an opinion of counsel (OC 1976-7) in w

the Commission had concluded that spe

elect~on in Texas did not qualify as a gen

election because several candidates from e

major party entered the race. (Date issued: J

in, 1983; Length: 5 pages)

FEDERAL REGISTER NOTICES

The item below identifies an FEC docum

that appeared in the Federal Register on Au

22, 1983. Copies of the notice are available in 

Public Records Office.

Notice Title

1983-21 11 CFR Part 102: Transfer of Fu

Collecting Agents, Joint Fundra

(Announcement of Effective Date 

Final Rules) (48 Fed. 37921)

The Record is publisheo by the Federal Election Commission, 1325 K Street, N.W.t Washington,

D.C. 20463•.Cornrnissioners are: Danny Lee McDonald, Chairman; Lee Ann Elliott, Vice Chairman;

J~an D. AIkens; Thomas E. Harris; John Warren McGarry; Frank P. Reiche; William F.

Hildenbrand,. Secretary .o~ the Senate,. Ex Officio; Benjamin J. Guthrie, Clerk of the House of

Representatives, Ex OffiCIO. For more information, call 202/523-4068 or toll-free 800/424-9530.

2
FEDERAL ELECTION COMMISSION

•

8eptemoor 1983

(continued from page 1)

lyon this summary; instead, they should consult

the full text of 11 C.P.R. Parts 9001-9007 and

9012.

Candidate Eligibility: Candidate Agreements and

Certifications

The revised rules consolidate under one section of the regulations all those conditions to

which a candidate and his/her authorized committeels) must agree in order to be eligible for public

funds.* Consistent with recent revisions to the

primary matching fund regulations, the proposed

rules also add new provisions under which a candidate must agree that:

The candidate has the burden of proving that

disbursements made by his/her campaign are

qualified campaign ex~enses; . The candidate and his/her authorized comrnitteets) will comply with the documentation

requirements; and

The candidate and his/her authorized committee(s) will provide any other explanations

needed to determine the connection between

the campaign and disbursements made by the

candidate or his/her authorized cornmitteels),

Certification Of Payments

To Minor and New Party candidates

Under the Presidential Election Campaign

Fund Act (the Fund Act), new or minor party

candidates may become eligible for partial pualic

funding after the general election if they received

between 5 and 25 percent of the total popular

votes cast in the election. In a subsequent Presidential election, they may receive partial public

funding prior to the general election, provided

they meet certain eligibility requirements. The

revised rules clarify the eligibility requirements

for minor and new party candidates who seek

public funding (before or after the general election) and spell out procedures for certifying payments. For example, the new rules establish deadlines for certifying post-election funds and stipulate, as a condition of receiving post-election

"'All the requirements that candidates must

agree to comply with to be eligible for public

funds are spelled out in Part 9003 of FEe Regul~­

tions. Note that, since minor or new party candIdates may receive partial public funding, the law

permits them to supplement public funds with

private contMbutions. Those candidates, ,however,

are otherwise SUbject to the same reqUIrements,

including spending limits, which apply to major

party candidates.

3

Vo[ume9, Numta-

public funding, that the candidate file a prelim

nary statement of net outstanding qualified cam

paign expenses.

Qua1ified vs. Nonqualified

Campaign Expenses

Under the election law, candidates who a

cept a public grant for their election campaign

must use the federal funds exclusively for qual

fied campaign expenses. They must also .Ii.m

spending to the amount of the grant ($20 millio

plus a cost-of-living adjustment). The. suggeste

revisions clarify the types of expenditures th

would be considered qualified or nonqualifie

campaign expenses. For example, they make cle

that qualified campaign expenses include:

Expenditures made on behalf of a candida

by an unauthorized political committee b

which are requested by the candidate 

his/her campaign. (The candidate's reque

for the expenditures need not be in writing.)

Expenditures incurred before or after th

expenditure report period Which, neverth

less, meet the definition of a qualified cam

paign expense as, spelled out in Sectio

9004.4(a) of the regulations.

Conversely, a new provision states that, if 

campaign invests its public funds, any net lo

resulting from the investment is a nonqualifie

campaign expense, which the campaign must re

pay to the U.S. Treasury.

Expenses for Secret Semce

and Other security Personnel

Government regulations (other than FE

rules) govern payment of expenses incurred b

Secret Service or other authorized personnel wh

must, for national security reasons, travel with 

campaign. The FEC's revised rules therefor

delete provisions governing the campaign's pay

ment of these expenses and subsequent reimburs

ment for them.

Campaign's Use of Government

Transportation

The proposed rules modify the method o

allocating travel costs incurred by candidates wh

use government transportation. For exa~ple

rather than paying the actual cost of USing 

government aircraft (e.g., Air Force I), the cand

date must instead pay the equivalent of firs

class commercial fare or commercial charte

fare.

Personal Funds

Under the Fund Act, a publicly funded gene

al election candidate may spend personal funds o

up to $50,000 for any campaign expenditure~

These expenditures are exempt from the eand

continue
September 1983 FEDERAL ELECTION COIVIMISSIOI\J

date's spending limit. Consistent with recent revisions to FEC rules governing a candidate's use

of property in which his or her spouse has an

interest, the revised regulations allow a candidate

to use, as "personal funds," his or her portion of

assets jointly owned with a spouse.

Legal and Accounting Compliance Fund

Although a publicly funded major party candidate may not, under the law, use private contributions to defray qualified campaign expenses,

the candidate may accept private contributions

and place them in a separate fund (Le., compliance fund) used solely to ensure that the campaign complies with the law and FEC Regulations.

(Disbursements from the compliance fund are

exempt from the spending limit, provided they are

used solely for compliance-related costs.) Under

the proposed rules, publicly funded minor and new

party candidates are not required to establish a

separate compliance fund. Instead, they may combine in one account public funds and private

contributions used to defray both qualified campaign expenses and compliance activities.

The regulations also stipulate the rules governing

compliance funds established by publicly funded

candidates of major parties. The new rules clarify

the types of receipts that may be deposited in a

compliance fund and the types of payments that

may be made from the fund.

Exempt Administrative Expenses

Following the primary matching fund regulations, the revised rules specify that minor and

new party candidates (as well as major party

candidates who have not received full public

funding due to a deficiency in the Presidential

Campaign Fund) may exclude a portion of their

operating expenditures from the spending limit.'

A campaign may allocate a portion of these

operating expenditures (e.g., payroll and overhead

costs) to its compliance fund and to the limited

exemption for fundraising costs.

Candidate's Withdrawal

From the Campaign

Under the current regulations, candidates

who withdraw from active campaigning must file

a statement of withdrawal. The suggested revisions shorten the filing deadline from 60 to 30

days.

'A major party candidate who has received

full public funding may also exclude a portion of

the campaign's operating expenditures from the

spending limit by allocating them to the compliance fund.

4

Volume 9, Numb

Candidate's Statement

of Net Outstanding

Qualified campaign Expenses

Consistent with past Commission practic

new provision spells out the requirements 

filing statements for net outstanding quali

campaign expenses once the campaign is o

The filing deadlines vary for candidates depen

on whether they withdraw from active c

paigning or seek post-election public fund

(Candidates seeking post-election funding m

also file a preliminary statement showing t

financial status, which the Commission will us

determine their entitlement to public funds.)

Sale of Assets Acquired

For Fundraising

Consistent with a new provision in the 

mary matching fund regulations, the amen

general election regulations permit pub

funded campaigns to sell fundraising assets. 

amount paid is normally considered a contribu

subject to the law's limits and prohibitions. U

one exception, however, purchase of fundrai

assets does not result in a contribution. If 

standing debts' exceed cash-on-hand at the 

of the expenditure reporting period, minor or 

party candidates (or major party candidates 

have not received full public funding due t

deficiency in the Presidential Campaign F

may sell assets acquired for fundraising purp

to a wholesaler or other intermediary. The 

termediary may, in turn, sell the assets to 

public. The proposed rules specify that, in 

limited case, the sale proceeds do not coun

campaign contributions from either the wh

saler or the purchaser.

Documentation of Disbursements

As in the Commission's primary matc

fund regulations, proposed revisions to the gen

election regulations require the candidate to 

tain records of receipts and disbursements 

three years and to present these records to 

Commission upon request. (Records may incl

for example, campaign vouchers, worksheets, 

ceipts and bills.)

Audit Authority

Consistent with revisions to the prim

matching fund regulations, the proposed rules 

general election campaigns clarify the Com

sion's statutorily mandated authority to con

audits of publicly funded campaigns. They 

scribe the audit process, including audit fieldw

and the preparation, content and public releas

audit reports.

'Outstanding debts may consist only of qu

fied campaign expenditures. They may not inc

compliance costs.
FEDERAL ELECTION COMMISSION

•

Septemt::er 1983

Repayments

Again following the primary matching fund

regulations, the revised rules stipulate that campaigns submitting written statements to contest a

repayment determination may also be granted an

oral hearing upon an affirmative vote of four

Commissioners.

Unauthorized Expenditures

and Contributions

In conformance with Section 9012 of the

Presidential Election Campaign Fund Act (the

Fund Act), several new provisions describe transVolume 9, Numt::e

actions that are unlawful under the Fund Act. F

example, they stipulate that publicly funded Pre

idential candidates and nominating conventio

may not knowingly and willfully: exceed th

respective spending limits; accept private cont

butions (if specifically prohibited); use pub

funds for nonqualified expenses; falsify campai

or convention records or fail to furnish records 

requested by the FEC. Finally, the proposed ru

would impose a $1,000 limit on expenditures ma

by an unauthorized committee to further t

election of a publicly funded Presidential nom

continu

STATUS OF FEC REGULATIONS SENT TO CONGRESS

Date' Sent Federa1 Register Date Prescribed"

Regulations' to Congress Publication by the Commission

11 CFR 100.7(a)(l)(i)(C), 4/22/83 4/27/83 7/1/83

100.7(b)(I1), 100.8(b)(l2), 48 Fed. Reg. 19019

110.10(b) and 9003.2(c)(3)

Candidate's Use of Property

in Which Spouse Has an Interest

11 CFR 102.6 and 102.17 6/2/83 6/7/83 8/22/83

• Transfer of Funds; 48 Fed. Reg. 26296

Collecting Agents, Joint

Fundraising

11 CFR 110.11 2/25/83 3/2/83 5/13/83

Disclaimer Notices 48 Fed. Reg. 8809

II CFR 110.12(0)(2) - (a)(4) NA 4/8/82 4/8/82

Annual Honoraria Limit 47 Fed. Reg. 15098

11 CFR 114.3 and 114.4 3/1/83 3/4/83

Communications by (withdrawn to 48 Fed. Reg. 9236;

Corporations and obtain further 4/22/83

Labor Organizations public comment, 48 Fed. Reg. 17567

4/22/83)

11 CFR 106 and 9031 - 9039 1/24/83 2/4/83 4/4/83

Presidential Primary 48 Fed. Reg. 5224

Matching Fund

11 CFR 9001 et seq. 7/1/83 7/11/83

General Election Campaign 48 Fed. Reg. 31822

Fund

11 CFR Part 9008 NA 7/21/83 7/21/83

Fund for Presidential 48 Fed. Reg. 33244

Nominating Conventions

• 'The chart is cumulative, listing all amendments to the FEC Regulations proposed after the

1981 edition of II CFR was published, inclUding any technical amendments.

'"The Commission may prescribe its regulations 30 legislative days after it hos transmitted

them to Congress.

5
nee. However, the provision specifically exempts

from the $1,000 limit news stories and editorials

produced by news media and partisan communications made by tax-exempt corporations to their

members.

Septemter 1983 FEDERAL ELECTION COMMISSION Volume 9, Numt

FEC PRESCRIBES RULES

ON COLLECTING AGENTS

AND JOINT FUNDRAJSING

On August 22, 1983, the Commission prescribed revised regulations governing transfers of

funds, collecting agents and joint fundraising. 11

CFR 102.6 and 102.17. The revised rules make a

distinction between two situations: joint fundraising, i.e., fundraising conducted by two or more

committees that are not separate segregated

funds, and collecting agents, i.e., certain organizations which may collect and transfer contributions to separate segregated funds. The revised

regulations provide a complete set of procedures

for both situations. A copy of the new regulations

is- available, upon request, from the Public Communications Office. Call 202/523-4068 or,. toll

free, 800/424-9530.

AUDITS RELEASED

TO THE PUBLIC

The following is a chronological listing of

audits released by the Commission between

January 25, 1983, and July 29, 1983. The audit

reports are available to the general public in the

Public Records Office.

1. California Republican Party (final audit report released January 25, 1983)

2. North Carolina Republican Executive Committee (final audit report released March 28,

1983)

3. Bell for Senate Committee, Inc. -- '82 (final

audit report released April 15, 1983)

4. Murer for Congress Committee (final audit

report released May 9, 1983)

5. National Committee for an Effective Congress (final audit report released JUly 1,

1983)

6. Young Republican National Federation (final

audit report released July 26, 1983)

7. Life Amendment Political Action Committee, Inc. (final audit report released July 29,

1983)

8. Friends of J. T. Quigg for Congress (final

audit report released July 29, 1983)

6

PROCEDURES FOR PRESCRIBING

FEC REGULATIONS

In response to the Supreme Court's June 

1983, decision in Immi ration and Naturalizat

Service v. Chadha Chadha, the Commiss

adopted on June 28, 1983, a recommendation 

the General Counsel regarding its procedures 

prescribing new or revised regulations. FEC Ag

da Document No. 83-104. The Commission w

continue to submit its regulations to Congress 

review and will wait 30 legislative days (or 

days for FEC reporting forms) before prescrib

them. (See 2 U.S.C•. §438(d) and 26 U.S

§§9009(c) and 9039(c).)

Underlying the Commission's recent action w

the Supreme Court's holding in the Chadha c

concerning the unconstitutionality of the legis

tive veto provision in the Immigration and Na

ralization Act of 1952 (INA). Under the I

provision, either House of Congress had the ri

to veto an Immigration and Naturalization Serv

decision involving the suspension of an alie

deportation, The Court held that the veto pro

sion was invalid because Congress' legislat

powers were limited to those contained in Arti

1, Section 2, of the Constitution. The Court fou

that Congress' use of the legislative veto con

tuted an impermissible exercise of its powers. T

Justices concluded that the veto allowed Congr

to make law without a vote by both Houses and 

allowed Congress to circumvent the Presiden

veto power.

Consistent with the Court's decision in 

Chadha case, the General Counsel concluded th

if a similar determination were made with resp

to the Federal Election Campaign Act (FEC

the unconstitutionality of the legislative v

provision would not affect the validity of 

other statutory requirements pertaining to p

scription of FEC regulations, The General Coun

noted the Court's holding that a legislative v

provision could be excised from a statute with

invalidating the remainder of the statute, es

cially if the remaining statute was "fully ope

tive" law. The General Counsel pointed out th

as with the provisions of the INA, the elect

law's provisions for prescribing regulations s

vived as Ita workable administrative mechani

without the one-House veto,"

The Counsel also noted that regulations issued 

the past by the Commission under the legislat

veto would remain in effect.
FEDERAL ELECTION COMMISSION

•

•

September 1983

PROCEDURES FOR PLACING

COMPLIANCE CASES ON PUBLIC RECORD

The Commission recently issued a directive

spelling out its procedures for ensuring timely

release of closed compliance cases (i.e., closed

matters under review or MURs) to the public,

Under the procedures, effective August 1, 1983, a

copy of a closed MUR file will be available for

public inspection in both the Public Disclosure

Division and the Press Office within 30 days after

the Commission has notified the complainants and

respondents of its final determination in the case.

(See 11 CFR 111.20(a).) The file will not include

materials which are not accessible to the public

under the election law or the Freedom of Information Act.

The Commission will continue to provide a list of

MURs indicating the date the closed MUR was

placed on the public record, its number, the

respondentls) and cornplainantfs), the Commission's final action in the case and the file's

microfilm location.

As in the past, the Press Office will prepare press

releases which list closed MURs and maintain a

file of closed MURs for use by media representatives. See FEC Directive No. 48.

CHANGE OF ADDRESS

Political Committees

Registered political committees are

automatically sent the Record. Any change

of address by a registered committee must,

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

House, the Secretary of the Senate, or the

FEC, as appropriate.

Other Subscribers

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

a change of address, are asked to provide

the following information:

1. Name of person to whom the Record is

sent.

2. Old address.

3. New address.

4. SUbscription number. The subscription

number is located in the upper left

hand corner of the mailing label. It

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

guarantee that your SUbscription can

be located on the computer.

7

Volume 9, Numte

FEC HOLDS MIDWEST REGIONAL

CONFERENCEINILUNOffi

On September 6-8, 1983, the Commission w

sponsor a Midwest Regional Conference in coo

eration with state and local elections offici

from Illinois. Attending the conference in Itasc

Illinois, a suburb of Chicago, will be fede

candidates, state and local party officials, repr

sentatives from political action committees, sta

and local elections administrators, state legis

tors and others interested in the election proces

At an introductory session, FEC Commission

and staff will explain the basics of the fede

campaign finance law and the Commission's ro

in administering this law and disclosing campai

finance information to the public. Of the 

workshops scheduled, 19 will focus on fede

election finance topics, including: corporate a

labor activities, federal candidates and their co

mittees, political party activity, political acti

committees, Presidential elections, the FEC's e

forcement of the election law and the use of FE

campaign finance reports. The remaining 17 se

sions will be devoted to election administratio

with emphasis on legislative and administrati

functions required to run a well-organized, f

and open election.

The Midwest Conference is one of five region

conferences to be sponsored this year by t

Commission in cooperation with state electio

officials. The schedule for the four remaini

conferences is:

Northeast Regional Conference, Albany, N

York, September 25-27;

Southern Regional Conference, Charlesto

South Carolina, October 23-25;

Southwest Regional Conference, Tulsa, Ok

homa, November 13-15; and

Far West Regional Conference, Los Angel

California, December 4-6.

For more information on the conferences, conta

the FEC's Public Communications Office 

202/523-4068 or toll free 800/424-9530.
Septemter 1983 FEDERAL ELECTION COMMISSION Volume 9, Numt

FEDERAL ELECTION COMMISSION

1325 K Street, N.W.

Washington,D.C.20463

Official Business

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