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Volume 6, Number 3

THE FEDERAL ELECTION

COMMISSION

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

March 198

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FEC RELEASES FIRST REPORT ON

SELECTED 1980 PRESIDENTIAL CANDIDATES

On January 25, 1980, the FEC released its first statistical report on the financial activity of all Presidential earnpaigns which have exceeded $100,000 in total receipts or

disbursements (FEe Report On Financial Activity, 1979-

1980, Interim Report No.1, Presidential Pre-Nomination

Campaigns!. The Report, first in a series to be published

monthly during the primary season, also includes inforrnation on all draft movements above the $100,000 level.

The Report covers the financial activity of 13 Presidential

campaigns from their inception through September 30,

1979, and provides a complete breakdown of both receipts

($17.7 million) and disbursements ($15.1 million). Additional tables show further detail:

Contributions from individuals are categorized by dollar

amount. For each category the Report shows the number of contributions, the aggregate value of those contributions and the percentage of all individual contributions which they represent.

Itemized individual contributions over $100 are categorized on a state-by-state basis to show the number and

value of such contributions which a campaign received

from a given state and the percentage of all contributions which they represent.

PAC contributions are presented according to political

committee type (e.g., corporate, labor, etc.) and the date

on which the contribution was received.

Matching fund activity is listed.

Expenditures subject to limits and the state-by-state

spending limit figures are included in the Report, but are

incomplete for 1979. As more campaigns enter the

matching fund process, more complete information will

be available in future reports.

The monthly reports will provide a broad overview of

all financial activity at the Presidential level throughout the

entire primary season. Copies of the January. Report are

available, at $2.50 per copy, from the Commission's Office

of Public Records, 1325 K Street, N.W., Washington, D.C.

20463; or telephone 202/523-4181, toll-free 800/424-

9530.

SPECIAL ELECTION

IN PENNSYLVANIA

A special general election will be held in Pennsylvania o

April 9, 1980. The principal campaign committees of a

candidates involved in that election will receive a speci

notice from the FEC on their reporting requirements an

filing dates. All other committees supporting candidates i

the special election in Pennsylvania should contact th

Commission for information on required reports. Informa

tion may be obtained by calling 202/523-4068 or toll-fre

800/424-9530.

NEW PROCEDURES FOR

SPECIAL ELECTION REPORTS

The 1979 Amendments to the Federal Election Cam

paign Act require the Commission to establish filing date

for required reports within five days of the setting of th

date for a special election. The Commission is also require

to publish the dates and notify the principal campaig

committees of all candidates involved in the special electio

of those reporting dates. To implement the amendment

the Commission adopted procedures on January 31, 198

(Agenda Document 80·421, which state that:

1. The Reports Analysis Division will identify the dates o

all special elections and, within 48 hours after eac

identification, will establish filing dates for require

reports, subject to the Commission's approval;

2. Within one day of the Commission's approval of th

filing dates, a notice will be prepared by the Office o

General Counsel for publication in the Federal Regist

and

3. The Information Division will send a prior notice to a

principal campaign committees registered for the speci

election and to all individuals listed on the speci

ejection ballot.
Contributions by state bank, 1/25/80

a wholly-owned subsidiary of

a federallY chartered corporation

to candidates for state office.

CORRECTION

The "Monthly Reports" chart on page 7 of the February

Record contained incorrect dates for the periods covered

by the pre-election and post-election reports. The corrected

chart appears below.

1980-7

1980-8 Transfer of funds from

federal to state PAC.

1130/80

2

1980·9

independent

Fundraising letter as

expenditure.

2/4/80

ADVISORY OPINION REQUESTS

Advisory Opinion Requests (AOR's) pose questions on

the application of the Act or Commission Regulations to

specific factual situations described in the AOR, The

following chart Iists recent AOR's, with a brief description

of the subject matter, the date the requests were made

public and the number of pages of each request. The full

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

Date Made No. of

ADR Subject Public Pages

1980·3 Newpolitical party's status 1/15180 6

as a national party committee.

19804 Legal services donated to 1/15/80 4

Presidential committee for

defense in civilsuit.

1980-5 Application of the Act to 1/15/80

expenses of delegates to

national nominating convention of Democratic party.

1980-6 Permissible methods of 1/23/80

soliciting member contrlbutions for separate segregated

fund.

MONTHLY REPORTS

2/11/80

AD 1979-67: Teacher Intern Program

AD 1979-66: Notice in Trade

Association's Publications

The Associated General Contractors of America (the A

ciation), a trade association, may publish in two of 

Association's publications a notice regarding the finan

activity of its separate segregated fund, AGC-PAC. One 

the publications is circulated to nonmembers as 

as members; the other is circulated to members only. S

the notice does not encourage readers to support AGC-P

activities or provide information on how they may cont

ute to AGCPAC, the notice does not constitute a "solic

tion" under the Act. (The Act specifically restricts "so

tations" by a separate segregated fund to the member

of its sponsoring association. 2 U.S.C. §437f.) Chairm

Robert O. Tiernan and Commissioner Thomas E. Ha

filed a dissenting opinion. (Date Issued: January 30, 19

Length, including dissent: 3 pages)

1980·12 Several Questionson appllca- 2/11/80 3

tion of Act to Congressional

campaign.

Seholarsh ips awarded for services provided to the Repu

can National Committee IRNC), to the Democratic Nat

1980-11 Contributions made in

spouse's name drawn on

individual's soreaccount.

1980·10 PAC'scompliance with 1979 2/6/80

amendment requiring identification of connected organization

in name of separate segregated

fund.

ADVISORY OPINIONS: SUMMARIES

An Advisory Opinion (AD) issued by the Commis

provides guidance with regard to the specific situa

described in the AOR. Under the 1979 amendments to 

Act, any person may request an AO on a specific acti

which the person intends to undertake. The requester 

not be subject to any sanctions under the Act if he

acts in accordance with the opinion. Other persons m

rely on the opinion if they are involved in a specific acti

which is indistinguishable in all material aspects from 

activity discussed in the AD. Those seeking guidance 

their own activity, however, should consult the full tex

the AD and not rely only on the summary given here.

Filing Date

February 20

March 20

April 20

May20

June 20

July 20

August 20

September 20

October 20

October 23

December4

January 31, 1981

Period Covered

1/1 -1131

2/1 : 2/29

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 ·10/15

10/16 -11/24

11/25 - 12/31

Month

February

March

April

May

June

July

August

September

October

Pre-Election

Post-Election

Year-End

The RECORD is published by the Federal Election Commission, 1325 K Street, N.W., Washington, D.C. 20463. Com

missioners are: Robert O. Tieman, Chairman; Max L. Friedersdort, Vice Chairman; Joan D. Aikens; Thomas E. Harris;

John W. McGarry; Frank P. Reiche; J.S. Kimmitt, 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.

2
al Committee (DNC) or to any Senate or Congressional

staff by graduate students participating in an intern program sponsored by the George Peabody College for

Teachers of Vanderbilt University would not be considered

in-kind contributions under the Act. Since the basic purpose of the intern program is educational and if the interns

do not devote substantial time to federal election campaign

purposes, the compensated interns' services would not

constitute in-kind contributions. The Peabody Center, as

sponsor of the program, would not be considered a political

committee under the Act. 2 U.S.C. §§431(8) and (9). To

the extent that the interns' activities are not related to

campaigns for federal office, funds contributed to or spent

by the Peabody Center to defray the cost of the program

would not be subject to the Act's limits or prohibitions

on contributions. Commissioners Joan D. Aikens, Max L.

Friedersdorf and John W. McGarry filed a concurring

opinion. (Date Issued: February 11, 1980; Length, including concurring opinion, 7 pages)

AO 1979-68: Solicitations by Membership Organization's

Separate Segregated Fund

The Illinois Medical Political Action Committee (iMPACj,

a separate segregated fund established by the Illinois

State Medical Society (ISMS), may solicit contributions

in conjunction with an annual dues statement for ISMS

and the American Medical Association (AM A), the national

association with which ISMS is affiliated. IMPAC may also

make unlimited transfers of funds to the AMA's separate

segregated fund, the American Medical Political Action

Committee (AMPACj, since IMPAC is affiliated with

AMPAC. (Date Issued: January 11, 1980; Length: 2 pages)

AO 1979-70: General Public Communication

by Separate Segregated Fund

The LTV Corporation Active Citizenship Campaign (LTV/

ACC). a separate segregated fund of the LTV Corporation,

may pay the costs of pubIications for the general public

which contain statements by several Presidential candidates

on campaign issues selected by LTV/ACC.

Since the proposed communication would, in effect, be

a means of advertising each candidate's views, the costs

of publishing the communication would constitute an

in-kind contribution to each of the candidates. 2 U.S.C.

§431 (8)(A)(i). The amount of the contribution to each

candidate would be equal to the cost of publishing the

communication divided by the number of responses printed. 11 CFR 106.1(al,

Since the costs of publishing the information would count

as in-kind contributions, the LTV Corporation may not

reimburse LTV/ACC for the publication costs; nor may the

LTV Corporation pay the costs itself. The Corporation's

payment of these costs would violate the Act's ban on

corporate contributions and expenditures in connection

with federal elections. (Date Issued: January 11, 1980;

Length: 4 pages)

AO 1979-72: Trade Association's Reimbursement

of Separate Segregated Fund

The National Association of Home Builders (NAHB) may

reimburse its separate segregated fund, the Build Political

Action Committee (Build~PAC). for solicitation costs

3

that Build-PAC had unnecessarily and mistakenly pa

for in connection with a fundraiser for Build-PAC.

As required by Commission Regulations (11 CFR 114

(b)(2)), Build-PAC had previously reimbursed NAH

for fundraising costs which exceeded one-third of the gro

revenues of the fund raiser. However, in calculating tot

costs, Build-PAC had mistakenly included costs for solici

ing contributions. Since the Act permits a membersh

corporation to pay these solicitation costs for its separa

segregated fund (2 U.S.C. §441 (b)(4)(C)), Build-PAC d

not have to include these costs in determining the requir

payment for costs of entertainment and prizes awarded 

the event. As a result of this erroneous calculation, Bui

PAC had actually overpaid NAHB. NAHB may, therefor

repay Build-PAC the overpayment ($18,906.54) resultin

from the error. Commissioner Thomas E. Harris filed 

dissenting opinion. Commissioner Frank P, Reiche flied 

concurring opinion. (Date Issued: February 1, 198

Length, including concurring opinion and dissent, 6 page

AO 1979-73: Allocation of Advance Staff Salary

and Per Diem in Presidential Campaign

For purposes of complying with national and state-by-stat

expenditure limits, applicable to the primary electio

the Kennedy for President Committee (the Committe

should allocate advance staff salary and per diem costs 

the state with respect to which the staff engages in cam

paign activity. According to Commission Regulation

expenditures "for staff, media, printing, and other goo

and services used in a specific State should be attributed 

that State." 11 CFR 106.2(bl. Therefore, the Committ

should allocate expenditures for advance staff salaries 

each state limit in proportion to the time that the advan

person, working either out of national headquarters or 

the field, spends in connection with the campaign in th

state. The Committee should allocate per diem costs to t

state where the advance person uses the per diem. Expens

for interstate travel, however, and for per diem used duri

such travel need not be attributed to any individual sta

limit. All expenditures attributed to any state must also 

attributed to the overall national expenditure limit. (Da

Issued: January 11, 1980; Length: 2 pages)

AO 1979-74: Payment of

Compensation to Candidate

William Emerson, a candidate for the U.S. House of Rep

sentatives, may receive compensation for his legislati

lobbying and consulting business without such compens

tion constituting contributions or expenditures, provid

the compensation:

1. Results from bona fide employment, genuinely ind

pendent of his candidacy;

2. Is exclusively in consideration of his services; and

3. Does not exceed what a similarly qualified person wou

receive for the same work, over the same period of tim

(Date Issued: January 11, 1980; Length 2 pages)

AO 1979-75: Combined Fundraising by Trade Associatio

PAC and It's State and Local Affiliates

The Associated Builders and Contractors Political Actio

Committee (ABC-PAC), established by the Associat

Builders and Contractors, Inc. (ABC), a trade associatio
may follow the procedures it proposed to the Commission

for accepting and allocating contributions received through

a combined federal/state fundraising effort.

State and local ABC chapters (affiliated with ABC) have

established political action committees (Chapter PAC's) to

support exclusively candidates for state and local office.

Under the proposed procedures, a written agreement will

provide that funds jointly collected by the Chapter PACs

and the ABC-PAC will be divided on a 2/3·1/3 basis and

that no part of the contributions received by a Chapter

PAC will be used to support a federal election. All solicitation materials will inform contributors that 1/3 of their

contribution will be allocated to federal elections and, thus,

be charged against applicable contribution Iimits of the Act.

The jointly collected funds will be deposited in a special

escrow account. The bank will divide the contributions

accord ing to the agreed ratio and transfer to the Chapter

PAC and ABC-PAC accounts the portion due to each.

ABC·PAC's Statement of Organization will identify all such

special accounts as campaign depositories.

ABC-PAC will officially "receive" each contribution on the

day the designated ABC·PAC state representative actually

receives the funds, rather than when the funds are transferred into ABCPAC's account. The representative will

deposit all contributions into the escrow account within 10

days of receipt, and will furnish ABC-PAC headquarters

with the information on contributors and contributions

necessary for recordkeeping and reporting requirements.

(Date Issued: January 18,1980; Length: 4 pages)

AO 1979-76: Sale of Books to Corporations

as Contributions

The RSC Campaign Fund (the Committee), a political

committee, may not sell to corporations books that it

published for fundraising purposes. The gross proceeds of

the sale are considered contributions, whether the books

are sold above, below or at cost, and the Act and Cornrnission Regulations prohibit a corporation from making a

contribution to a political committee.

The Commission distinguished this oprruon from two

previous opinions (AO 1979-24 and AO 1978·18) wherein

the sale of excess campaign assets and contributor lists did

not constitute contributions because, unlike the books

published by the Committee, the items were not specifi·

cally acquired or developed for general fundraising purposes. (Date Issued: January 22, 1980; Length: 3 pages)

AO 1979-77: Activities of

Affiliated Committees

Since the Trammell Crow Partners (the Crow Partnership)

owns controlling stock in the Trammell Crow Company

(the Crow Company), and since the partners of the Crow

Partnership are also executive officers of the Crow Company, the two organizations are considered affil iated

for purposes of the Act; thus, their respective political

committees are affiliated committees. Accordingly, the

Trammell Crow Partners Political Committee (the Partners

Committee) and the Trammell Crow Company PAC (the

Crow Company PAC) must make and receive contributions

as though they are a single committee with a single con4

tribution limit. Each committee, however, must file repor

separately and identify the other as an affiliated committe

on its Statement of Organization.

The Crow Company PAC, a separate segregated fund, ma

solicit contributions from the individual partners of th

Crow Partnership since they own all the stock of the Cro

Company, a corporation, and the Crow Company PAC 

affiliated with the Partners Committee.

On the other hand, since the Partners Committee is no

a separate segregated fund of a corporation, it may solic

contributions from any individual who may otherwise mak

lawful contributions under the Act.

The Crow Company may provide the Partners Committe

with corporate employees to render legal and accountin

services solely to ensure compliance with the Act. Th

compensated services are not considered contribution

but must be reported by the Committee in accordance wit

Commission reporting regulations. (Date Issued: Januar

29, 1980; Length: 4 pages)

AO 1979·78: Definition of

Honorarium

The fee paid to Senator Daniel P. Moynihan for serlallz

tion of his book in The New Yorker, prior to the book

publication, does not constitute an honorarium, but rath

a book royalty.

Payment for an article is specifically included in the defin

tion of honorarium in 2 U.S.C. §441 i. "Article" is define

in Commission regulations to include "a writing other tha

a book, which has been or is intended to be published." 

CFR 110.12(b)(41. However, since Senator Moynihan

publ isher negotiated the serialization fee, received the fe

from the magazine and paid the Senator his percentage 

the fee, the fee represents a royalty for Senator Moynihan

book rather than a payment for an "article." (Date Issue

January 11, 1980; Length: 2 pages)

AO 1980-4: Legal Services Donated to Presidential

Committee for Defense in Civil Suit

Compensation paid by several law firms to their staf

for legal services rendered without charge to the Carte

Mondale Presidential Committee (the Committee) 

defend the Committee in a civil lawsuit would not 

considered contributions under the Act. (The complai

alleges that the Committee improperly allocated cos

between political and official travel and did not proper

reimburse the government for such travel, in violation 

the Hatch Act, the Appropriations Act and the plaintif

constitutional rights. I The firms' compensation enables th

Committee to present a defense to a civil complaint rath

than enabling the firms' staffs to participate in the Comm

tee's political activities. Therefore, since the donated leg

services are not rendered for the purpose of influenci

a federal election, they are not contributions. (Date Issue

February 1, 1980; Length: 3 pages)
SPECIAL PARTY

EXPENDITURE LIMITS - 1980

Under the Federal Election Campaign Act, as amended,

and the FEC Regulations, there are special limits on expenditures made by politlcal parties on behalf of candidates

in the general election. 2 U.S.C. §441a(d); 11 CFR 110.7.

These special party expenditures count neither as contributions to the candidate nor as expenditures by the candidate or the candidate's authorized committees. The expenditures are reported only by the party committee. The party

spending limits are based on state voting age population

estimates (as of July 1, 1979) published by the Department

of Commerce, and the change in the Consumer Price Index

certified by the secretary of Labor.

National political party committees have separate expenditure limits for each Presidential, Senate and House candidate in the general election.

State political party committees are entitled to separate

expenditure limits for each Senate and House candidate

they support in the general election in their state. Within a

state, all expenditures made on behalf of one candidate by

the state party committee or any subordinate party committee (e.g., county, district, local) are subject to one

expenditure limit. State committees do not have a separate

limit for Presidential candidates.

Presidential Candidates

The national party committee's expenditure limit for

Presidential candidates for the 1980 general election is

$4,637,653.76. This figure is based on the following

formula: U.S. voting age population x $.02, plus a 47.2

percent increase in the Consumer Price Index. The actual

figure has been derived by making the following calculation: 157,529(000)( $.02 x 1,472.

Senatorial Candidates

The party's expenditure limit for Senate candidates is

the greater of either:

- State voting age population (VAP) x $.02, plus a 47.2

percent increase in the consumer price index (VAP x

$.02 x 1.472};or

- $29,440. See chart below.

House Candidates

The limit for House candidates is either:

- $14,720 for House candidates in states with more than

one district (and candidates for Delegate from the

District of Columbia, Guam and the Virgin Islands; or

for Resident Commissioner from Puerto Rico); or

- The same as the Senate limit for the state, for House

candidates in states with only one Congressional district.

(See states marked with asterisk on chart below.)

PARTY SPENDING LIMITS

FOR CONGRESSIONAL CANDIDATES

The Commission has compiled the following chart

for 1980 limits on special party expenditures for Senate

candidates in the general election.

An asterisk (") indicates those states in which there is o

one Congressional district. In these states, the Senate li

also applies to party spending on behalf of candidates 

the House of Representatives. For all other states, the pa

expenditure limit for House candidates is $14,720.

VAP 1980 Party

State (in thousands) Spending Limitati

Alabama 2,644 $77,839.36

Alaska" 261 29,440.00

Arizona 1,697 49,959.68

Arkansas 1,542 45,396.48

California 16,475 485,024.00

Colorado 1,972 58,055.68

Connecticut 2,295 67,564.80

Delaware" 417 29,440.00

Florida 6,633 195,275.52

Georgia 3,561 104,835.84

Hawaii 640 29,440.00

Idaho 612 29,440.00

Illinois 7,997 235,431.68

Indiana 3,807 112,078.08

Iowa 2,080 61,235.20

Kansas 1,724 50,754.56

Kentucky 2,485 73,158.40

Louisiana 2,723 80,165.12

Maine 779 29,440.00

Maryland 3,000 88,320.00

Massachusetts 4,253 125,208.32

Michigan 6,470 190,476.80

Minnesota 2,892 85,140.48

Mississippi 1,624 47,810.56

Missouri 3,524 103,746.56

Montana 551 29,440.00

Nebraska 1,125 33,120.00

Nevada" 495 29,440.00

New Hampshire 634 29,440.00

New Jersey 5,332 156,974.08

New Mexico 836 29,440.00

New York 12,898 379,717.12

North Carolina 3,992 117,524.48

North Dakota" 462 29,440.00

Ohio 7,645 225,068.80

Oklahoma 2,076 61,117.44

Oregon 1,828 53,816.32

Pennsylvania 8,620 253,772.80

Rhode Island 683 29,440.00

South Carolina 2,026 59,645.44

South Dakota 484 29,440.00

Tennessee 3,134 92,264.96

Texas 9,291 273,527.04

Utah 862 29,440.00

Vermont" 350 29,440.00

Virginia 3,758 110,635.52

Washington 2,829 83,285.76

West Virginia 1,339 39,420.16

Wisconsin 3,372 99,271.68

Wyoming" 312 29,440.00

District of Columbia 14,720.00

Guam 14,720.00

Puerto Rico 14,720.00

Virgin Islands 14,720.00

5
The recent certifications bring the number of candidates

certified to receive matching funds to ten. The Commission

had previously certified Howard Baker, President Jimmy

Carter, Lyndon LaRouche and Edward Kennedy.

FEC CERTIFIES ELIGIBILITY

OF SIX MORE CANDIDATES

FOR 1980 MATCHING FUNDS

On the dates indicated below, the Commission certified

to the U.S. Treasury that the following candidates were

eligible to receive primary match ing funds for the 1980

Presidential primary election:

SUBSCRIPTIONS TO

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ELECTION

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Election Case Law series. These quarterly reports h

become one of the accepted sources of information 

federal and state election laws and case decisions. 

quarterly, cumulative format provides up-to-date infor

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The Election Law Updates series includes a synopsis of 

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entire year's election law activities. The subscription p

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January 3, 1980

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George Bush

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Robert Dole

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Edmund G. Brown

John Anderson

FEC PUBLIC APPEARANCES

To provide information on campaign finance laws

and the FEC, the Commission regularly accepts invltations to address public gatherings. This regular

column lists upcoming scheduled Commission appearances, the name of the sponsoring organization, the

location of the event and the name of the Commission's speaker. For additional information on any

appearance, please contact the sponsoring organization:

The Election Case Law series is similar in design and c

cept except that all federal and state election cases 

summarized and indexed. The subscription price for 

series is $10.00 a year and also includes three quart

cumulative issues plus the Annual Cumulative Summ

For further subscription information, please call or wr

Clearinghouse - FEC, 1325 K Street, N.W., Washing

D.C. 20463, telephone, 202/523-4183 locally or 

toll-free, 800/424-9530.

3/9 B'nai B'rith

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Rob Snow

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