FEDERAL ELECTION COMMISSION

Volume 13, Number 5

8 INDEX

800 LINE

7 Personal Financial Reports

INFORMATION

6 Filing with Federal Offices

4 ADVISORY OPINIONS

COURT CASES

6 FEC v, Ted Haley Congressional

Committee

REPORTS

2 JUly Reporting Schedule

LEGISLATION

FY 1988 Budget Testimony

PROCEDURES

I New Enforcement Procedure

TABLE OF CONTENTS

REGULATIONS

1 Contribution Limits Rules

Prescribed

FEC TESTIFIES ON FY 1988 BUDGET

During several Congressional hearings held

between February 19 and April 22, 1987, FEe

Vice Chairman Thomas J. Josefiak requested 

$14.174 million budget for the Commission for

fiscal year (FY) 1988.

Vice Chairman Joscfiak's testimony focused

primarily on funding required for the FEC's ad

ministration of the Federal Election Campaign

Act during the 1987-88 Presidential election cy

cle. His testimony did not project the budgetary

impact of any legislative changes currently unde

consideration by Congress. Nor did Mr. Josefiak

request funding for new programs, such as the

feasibility of new technologies to improve data

processing methods.

Accompanied by FEC Chairman Scott E

Thomas and Commissioner John Warren McGarry

continued on p, 4

May 1987 999 E Street NW Washington DC 20463

COMMISSION APPROVFS NEW ENFORCEMENT

PROCEDURE

On October 23, 1986, the Commission decided to begin issuing a statement of reasons whenever a majority of the Commissioners, in dismissing a complaint-generated matter, rejects the

recommendations of the General Counsel's Office.

The Commission will place a statement of reasons

on the public record within 30 days after the

corresponding enforcement matter (i.e., matter

under review or MUR) is closed. On February 5,

1987, the Commission adopted internal guidelines

for the preparation of such statements.

CONTRIBUTION LIMITS:

FINAL RULES PRESCRIBED

On April 2, 1987, the Commission approved

the publication of a Federal Register notice announcing the effective date of amended FEe

Regulations which govern the election law's

contribution limits for persons and multlcandidate

political committees. 11 CFR 1l0.1 and uo.s,

The regulations became effective on April 8,

1987, the date of their publication, See 52 Fed.

Reg. 11187. --

The amended regulations were summarized

on pages 3 throughs of the January 1987 Record.

The regulations, together with the Commission's

explanation and justification, were published in

the Federal Register on January 9, 1987. 52 Fed.

Reg. 760. A copy of this material will soon be

mailed to each registered political committee.

Additional copies may be obtained by calling 376-

3120 or toll-free 800/424-9530. •
___ w__ _ . _

1All Presidential candidate committees are required to file on either a monthly or a quarterly bas

dUri"2g 1987. 11 CFR 104.5(b)(2). 

All PAC and party committees (i.e., committees not authorized by candidates) are required to fi

on either a monthly or a semtannual basis in 1987. 11 CFR 104.5(c).

2

Volume 13, Numta

Report

Quarterly Monthly Semiannual

July 15 July 20 July 31

X

X

X

X

X

FEDERAL ELECTION COMMISSION

Presidential Candidate Committees/

Monthly Filers.!/

PAC/Party Committees:- Se~ian~D~;:fT-­

PAC/Party Committees: ~~thlY F-n-e-rs--=!::-;/c------------------------

Presidential Candidate Committees/

Quarterly Filers.!.!

Congressional Candidate Committees

._---~---

JUL Y REPORTING SCHEDULE

The following chart and paragraphs explain the July reporting schedule for the various categori

of filers. Note that, beginning with the July reporting schedule, all registered political committees w

receive a reporting packet with a peel-off address label. The Commission asks that committees pla

this peel-off label on line 1 of the reporting form, the space provided for identifying the committee

name and address. Any corrections should be made directly on the label.

May 1987

Type of Filer
3

The Record is published by the Federal Election Commission, 999 E Street, N.W., Washington,

D.C. 20463. Commissioners are: Scott E. Thomas, Chairman; Thomas J. Josefiak, Vice Chairman;

Joan Aikens; Lee Ann Elliott; Danny Lee McDonald; John Warren McGarry; Walter J. Stewart,

Secretary of the Senate, Ex Officio; Donnald K. Anderson, Clerk of the House of Representatives,

Ex Officio. For more information, call 202/376-3120 or toll-free 800/424-9530.

FEDERAL ELECllOI\J COMNIISSION Volume 13, Numoo- 5

HOW TO OBTAIN MORE INFORMATION

Reporting forms for the semiannual (or quar

terly) report will be sent to all registered com

mittees. All registered committees may reques

forms from the FEC or use photocopies of blank

forms previously sent to them.

Questions and requests for forms should be

addressed to the Information Services Division

202/376-3120 or, toll free, 800/424-9530.

Filing with State Governments

o The principal campaign committees of Congressional candidates must file a copy of every

report and statement with the Secretary of

State or the appropriate elections official of

the state in which the candidate seeks federal

office. 11 CFR 108.3.

o The principal campaign committees of Presi

dential candida.tes must file copies of reports

and statements with the Secretary of State or

the appropriate elections official of the state in

which the committee makes campaign expen

ditures. These reports must contain all financial transactions which apply to that state

during the reporting period covered. 11 CFR

108.2.

o PACs and party committees making contribu

tions or expenditures in connection with House

and Senate races file reports and statements in

the state in which the candidate seeks election

The law requires a copy only of that portion o

the report applicable to the candidate(s) being

supported. Committees supporting Presidentia

candidates must file in the staters) in which the

Presidential eornmittee and donor committee

have their respective headquarters.

o The principal campaign committees of Senate

candidates and committees supporting or opposing only Senate candidates file with the

Secretary of the Senate, Senate Public Records

Hart Senate Office Building, Room 232

Washington, D.C. 20510. 11 CFR 104.4(c)(2) and

105.2.

o All other committees, including the principa

campaign committees of Presidential candidates, file with the Federal Election Commission, 999 E Street, N.W., Washington, D.C

20463. 11 CPR 105.3 and i05.4.

May 1987

Change in Filing Frequency

PAC and party committees which plan to

change their reporting schedule in 1987 (e.g.,

from semiannually to monthly) must notify the

Commission by submitting a letter with the July

report. A committee may not change its filing

frequency more than once a year. 11 CPR

l04.5(c). The FEe requests that Presidential committees also inform the Commission in writing if

they decide to change their reporting schedule.

Filing with the Federal Government

o The principal campaign com mi ttees of House

candidates and committees supporting or opposing only House candidates file with the

Clerk of the House, Oflice of Records and

Registration, 1036 Longworth House Office

Building, Washington, D.C. 20515. 11 CF R

104.4(c)(3) and 105.1.

JULY REPORTING SCHEDULE

WHERE REPORTS ARE PILED

Committees must file all reports and statements simultaneously with the appropriate federal

and state officials. 11 CFR 108.5.

First Report for New Committees

Coverage dates on the first report a

committee files after registration should begin

with the date of registration. The first report

should also disclose pre-registration activity in

1987. In the case of candidate com mittees, any

activity which took place in 1986 should be

reported separately.

These guidelines for the first report apply to

newly registered committees regardless of the

committee's filing schedule.

Semiannual Report

The semiannual report must be filed by July

31. It covers all activity (not previously reported)

which occurred between January 1 (or the closing

date of the last report) and June 30.

Quarterly Report

Due by July 15, the report should cover all

activity from April I (or from the closing date of

the last report filed) through June 30.

Monthly Report

The monthly report must be filed by July 20.

It should cover all activity between June 1 and

June 30.

•
FEDERAL ELECTION COMMISSION

Volume 13, Numoo

Independent expenditures made 

committee soliciting earmark

contributions for Senator's ca

paign. (Date made public: Mar

17,1987; Length: 1 page)

SUbject

detailed information on the 1986 Congressio

elections into its computer system. During 19

the agency reduced computer entry of this inf

mation because of budget cuts mandated by t

Gramm-Rudman-Hollings Act and other con

derations. However, unanticipated FY 1987 bu

get savings allowed the Commission to comp

terize some of this information. Mr. Josefi

testified that "the proposed 1988 budget seeks 

continue and complete the effort to recaptu

detailed 1986 data for our computer system....

look forward to restoring our computerized 

search services to their full and complete level 

usefulness as we enter the new political season.

AOR

1987-9

ADVISORY OPINION REQUESTS

The following chart lists a recent request 

an advisory opinion. The full text of the AOR 

available to the public in the Commission's Off

of Public Records.

AO 1987-4: Excess Campaign Funds Transferr

from individUal's 1986 Senate

Campaign to His 1984 Publicly

Funded Presidential Campaign

Senator John Glenn's 1986 reelection campai

for the Senate (the Senator Glenn Committ

may transfer approximately $800,000 in exc

campaign funds to Senator Glenn's publicly fund

1984 Presidential primary campaign (the Jo

Glenn Presidential Committee, Inc.) for debt 

tirement. In making the transfer, the Sen

campaign does not have to aggregate contrib

tions contained in the transfer with contributio

that the same donor made to Senator Glen

Presidential primary campaign, However, t

contributions: 1) must be within each dono

limits for the Senate campaign; 2) constitu

excess campaign funds of the 1986 Senate ca

paign (i.e., consist of contributions made befo

the 1986 general election); and 3) consist of fun

that are permissible under the Act. 2 ·U.S

s 439a and 11 CFR 113.2(d). See also A

1978-37, 1980-30, 1980-143 t 1981-9 and 1982-39

4

May 1987

continued from p, 1

Mr. Josefiak, who also serves as chairman of the

agency's finance committee, testified before

three Congressional committees: the Subcommittee on Elections of the Committee on House

Administration; the Subcommittee on Treasury,

Postal Service and General Government of the

House Committee on Appropriations; the Senate

Subcommittee on Treasury, Postal Service and

General Government of the U.S. Senate and the

Senate Committee on Rules and Administration.

FY 1988 BUdget Request

The proposed FY 1988 budget request represents a 10.7 percent increase over the Commission's FY 1987 budget, Vice Chairman Josefiak

stated that, with the increase, the agency intended to: 1) maintain current levels of service, 2)

meet the special demands of the 1988 Presidential

election year and 3) conclude its efforts to "r ecapture 1996 election cycle data not previously

processed into our computer system." He noted

that 76 percent of the FECls proposed budget

increase was necessary "[ust to maintain current

levels of agency activity," The bulk of this

increase was for fixed costs, such as rent, and for

costs of implementing the FEC's new Federal

Employees' Retirement System (FERS). Thus,

only the remaining 24 percent of the budget

increase ($329tOOO) would represent a real increase in agency funding.

In explaining the additional funding needed to

administer the Presidential election cycle

($260tOOO), Mr. Josefiak noted that Commission

staff will have to: process a much larger volume

of campaign finance data; certify public funds to

Presidential candidates (including candidates who

eventually drop out of the Presidential race but

who continue to receive public funds); handle the

many compliance and enforcement matters related to Presidential campaigns and field numerous requests for information generated by the

media's increased coverage of Presidential campaigns.

In addition, the 1987-88 Presidential election

cycle will place unique demands on the agency's

workload. As Mr. Josefiak explained, "this will be

the first Presidential election cycle since Congress created the FEC in which the incumbent

President will not be in the race. Contested

nominations in both parties may result in 18 to 20

candidates qualifying for public funding." (By

contrast, during the 1983-84 Presidential election

CYCle, 11 candidates qualified for public funding.)

The agency plans to use the remainder of the

proposed budget increase (i.e., $69,000) to enter
May 1987 FEDERAL ELECTION COMMISSION Volume 13, Numter

The Senate campaign should report the transaction as an itemized transfer disbursement. 11

CFR 104.3(b)(4){ii}. The Presidential campaign, in

turn, should itemize the transaction as a transfer

receipt. 11 CFR 104.3(a)(4)(iii)(A).

Senator Glenn registered the Presidential

campaign as his principal campaign committee in

January 1983 and publicly announced his withdrawal as a Presidential candidate in March 1984.

He registered his 1986 campaign in June 1985.

(The committee has not yet terminated.) Although

Senator Glenn was a candidate for two different

federal offices in overlapping election cycles, he

was not running for both offices at the same time.

The proposed transaction would therefore be subject to those provisions of the election law and

FEC Regulations which permit unlimited transfers

between an individual's current and former campaigns for federal office. See 2 U.S.C. §441a(a)(5) «», 11 CFR 110.3(a)(2)(iv). (Date issued: March

25, 1987j Length: 4 pages)

AO 1987-5: Eligibility of Membership

Organization's Life Members

for PAC Solicitations

ASHA-PAC, the separate segregated fund of the

American Speech-language-Hearing Association

(ASHA), a membership organization for speechlanguage pathologists and audiologists, may solicit

ASHA's "life members," provided the PAC's solicitations comply with the requirements of the election law and FEC Regulations. 11 CFR 114.5 and

114.7. Although life members do not have to pay

annual membership dues, they are nevertheless

sufficiently related to the organization to qualify

for PAC solicitations.

Commission Regulations define a membership

organization's members as "all persons who are

currently satisfying the requirements for membership" in the organization. 11 CFR 114.1(e).

The Supreme Court concluded that "members" of

a membership organization are, in some ways,

analogous to shareholders in a business corporation. To qualify as a member, an individual must

have "some relatively enduring and independently

significant financial or organizational attachment" to the membership organization. (See FEC

v. National Right to Work Committee, 459 U.S.

197,202, 103 S. Ct. 552 (1982)).

ASHNs life members meet this standard and

are therefore eligible for ASHA-PAC's solicitations. First, under ASHAts by-laws, life members

retain all their rights to vote on the organization's

activities. Second, even though they are not

required to pay annual membership dues once they

reach 65, life members must have paid dues for at

least lO consecutive years prior to reaching 65--a

substantial financial commitment to the organization. (Date issued: March 17, 1987j Length: 3

pages)

5

AO 1987-6: Trade Association PAC's

Combined Dues Payment!

Solicitation Plan Prohibited

The American Chiropractic Association Politica

Action Committee (ACA-PAC), the separate seg

regated fund of the American Chiropractic Asso

ciation (ACA), may not solicit contributions from

ACA members through a combined dues pay

ment/political contribution plan. The plan is no

acceptable because:

1.1t fails to notify members of ACA-PAC's polit

cal purpose (11 CPR I 14.5(a)(3»; and

2. It appears to enforce a monetary guideline fo

the members' contributions to ACA-PAC, whic

would violate 2 U.S.C. § 44lb(a)(3) and 11 CFR

114.5(a)(3)-(5 ).

Under the election law, if a solicitation for 

separate segregated fund suggests a contributio

guideline, it must state that solicitees may con

tribute more or less than the suggested amoun

and that the fund's parent organization will no

favor or disadvantage any individual because o

the amount contributed or a decision not t

contribute. The ACA statement, however, fail

to satisfy these guidelines in several ways. 

$100 contribution suggested in ACA's guideline 

automatically included in the total figure give

for membership dues and the total amount owe

to ACA. The statement provides no separat

spaces for indicating either the suggested $10

contribution or a different amount specified b

the member. (Only through a footnote is th

member informed that his/her dues payment in

cludes a $100 contribution to ACA-PAC.) No

does the billing statement provide a member wit

instructions on how to increase or decrease th

amount of a contribution or how not to contr

bute. (Date issued: March 20, 1987; Length: 

pages)
FEDERAL ELECTION COMMISSION Volume 13, Numoo

FILING REPORTS WITH FEDERAL OFFICIALS

Under the federal election law, three feder

offices receive reports and statements filed 

political committees; each committee, howeve

is required to file with only one federal office

not all three. 11 CFR 108.5. (Note, additionall

that a copy of each report must be filed with 

State elections office. See 2 U.S.C. S439; 11 CF

103.3-108.5.) The appropriate filing offices f

different types of political committees are desi

nated below:

a Committees Supporting House Candidates

The principal campaign committees* of Hou

candidates and committees supporting or oppo

ing only House candidates file with the Clerk 

the House, Office of Records and Registratio

1036 Longworth House Office Buildin

Washington, D.C. 20515. 11 CFR I04.4(c)(

and 105.1

o Committees Supporting Senate Candidates

The principal campaign committees" of Sena

candidates and committees supporting or oppo

ing only Senate candidates file with the Secr

tary of the Senate, Senate Public Records, Ha

Senate Office Building, Room 232, Washingto

D.C. 20510. 11 CFR 104.4(c)(2) and 105.2.

o Other Committees

All other committees, including the authoriz

committees of Presidential candidates,· fi

with the Federal Election Commission, 999 

Street, N.W., Washington, D.C. 20463. 11 CF

105.3 and 105.4.

*Committees authorized by a candidate (oth

than the principal campaign committee) must fi

copies of their reports and statements with th

principal campaign committee. 11 CFR 104.3(f)

that the "facts [of the case] are not in issue, an

that those facts lead to the legal conclusion th

the guarantees in issue were not for the purpo

of influencing any election." Thus the guarante

should not have been viewed as contributions (Le

funds received to influence a federal election

As evidence that the loan guarantees were n

made to influence a federal election, the cou

cited lithe timing of the solicitation [of loa

guarantees after the election], the nature of th

relationships between Haley and the guarantor

their intent in making and accepting the guara

tees and the facts and circumstances of Haley

[re]payment••••'· of the loan.

Based on this finding, the court found "n

justifiable ground" for assessing a civil penal

against defendants.

6

May 1987

FEC v. TED HALEY CONGRESSIONAL

COMMITTEE

On February 24, 1987, the U.S. District Court

for the Western District of Washington at Tacoma

granted the defendants' motion for summary [udgment in FEC v. Ted Hale Con essional Committee (Civil Action No. 85-1185. The district court

dismissed the suit with prejudice.

Background

The Ted Haley Congressional Committee was

the principal campaign committee for Mr. Haley's

bid for a House seat in Washington's 1982 Congressional primaries. After the election, Mr.

Haley obtained a $50,000 personal loan from a

local bank to retire debts outstanding from his

campaign. To secure the loan, Mr. Haley obtained

guarantees from several friends, that is, the six

other defendants in the suit. (Four of the defendants provided guarantees of $10,000 each; two

provided guarantees of $5,000 eaeh.) The loan

and the guarantees were reported by Mr~ Haley's

campaign in its 1983 mid-year report. By the end

of 1983, Mr. Haley had fully repaid the loan.

Under the election law and FEC Regulations,

an endorsement or guarantee of a loan, like a

regular loan, counts as a contribution from the

endorser or guarantor to the extent of his/her

portion of the outstanding balance of the loan. II

CFR lOO.7(a)(I)(i)(C). Consequently, each guarantor for Mr. Haley's campaign loan exceeded

his/her $1,000 limit for Mr. Haley's pr imary campaign. On October 30, 1984, the Com misslon

therefore found reason to believe that:

o The loan guarantors had made excessive contributions to the Haley Campaign in the form of

loan guarantees (2 U.S.C. §44Ia(a)(9)(A»); and

o The Haley campaign and its treasurer had, in

turn, violated the election law by accepting the

excessive contributions (2 U.S.C. S44Ia(f)).

On July 30, 1985, after attempting to resolve

this enforcement matter through informal methods of conciliation, the Commission filed a suit

against defendants in the U.S. District Court for

the Western District of Washington.

Court's Ruling

The court found that "post-election loan

guarantees, such as those made here, are presumptively for the purpose of influencing an election under the statute and regulations. This

presumption, however, is not conclusive, but rebuttable. It simply allows the FEC to shift the

burden of proof to defendants after a minimal

showing,"

The court held that the defendants had successfully rebutted this presumption by showing
CANDIDATE PERSONAL FINANCIAL REPORTS

FEDERAL ELECTION COMMISSION Volume 13, Numter 

House Committee on

Standards of Official Conduct

Room HT-2, The Capitol

Washington, D.C. 20515

202/225-71 03

Where to Get

More Information

Office of Government Ethics

P.O. Box 14108

Washington~ D.C. 20044

202/632-7642

Senate Select Committee on Ethic

Room 220, Hart Building

Washington J D.C. 20510

202/224-2981

by May 15 of the year in which one becomes 

candidate, whichever is later. In any event, the

report must be filed no later then seven day

before an election.

The term "candidate," in the case of those

seeking the Presidency, means an individual wh

1) is considered a candidate under the Federa

Election Campaign Act (2 U.S.C. § 431(2» and 2

has filed a Statement of Candidacy (FEC Form 2

with the Federal EJection Commission. For thos

seeking election to the House or Senate, the term

"candidate" means an individual who either: (1

has taken the action necessary under state law to

qualify himself/herself for election or (2) has filed

a Statement of Candidacy (FEC Form 2) under the

Federal Election Campaign Act (2 V.S.C § 431(2»

The personal financial disclosure reports con

tain Inrorrnation on income, assets and liabilitie

of the candidate as of a date not more than 3

days prior to the filing date. All reports are mad

public within 15 days of filing.

For information on where to file the persona

financial reports and where to get help, consul

the chart below.

7

Where to File

Personal Financial Reports

Federal Election Commission

999 E Street, N.W.

Washington, D.C. 20463

Clerk of the House of Representatives

Office of Records and Registration

1036 Longworth House Office Building

Washington, D.C. 20515

Secretary of the Senate

Senate Public Records

Hart Senate Office Building

Room 232

WashingtonJ D.C. 20510

House

May 1987

Presidential

PERSONAL FINANCIAL REPORTS

The Commission receives many questions

concerning the personal financial reports that

must be filed by candidates for federal office

under the Ethics in Government Act. These

reports should not be confused with the reports of

receipts and disbursements that federal political

committees must file under the Federal Election

Campaign Act. Although the Commission has

limited jurisdiction over the filing of personal

financial reports, this article is being published to

provide general information. Specific questions

regarding personal financial reporting should be

directed to one of the appropriate offices listed

below.

The 1978 Ethics in Government Act requires

all candidates for federal office to file personal

financial disclosure reports. These reports must

be filed within 30 days of becoming a candidate or

Type of Candidate

Senate

•

•
May 1987 FEDERAL ELECTION CONINIISSION

This cumulative index lists advisory opinions,

court cases and 800 Line articles published in the

Record during 1987. The first number in the

citation refers to the "number" (month) of the

Record issue; the second number, following the

colon, indicates the page number in that issue.

OPINIONS

1986-37: Presidential candidate appearances at

convention of nonprofit corporation, 1:6

1986-38: Individual's financing of media ads to

promote conservative candidates, 1:7

1986-39: Excess campaign funds used to establish

trust fund for minor, 2:3

1986-40: Corporate donations to state party

committee's building fund, 2:3

1986-41: Trade association's plan to compensate

employees who make contributions, 2:4

1986-42: Affect of corporate reorganization on

PACs, 3:4

1986-44: Contributions to PAC matched with corporate donations to charity, 3:4

1986-45: Interest paym ents by his com mittee to

candidate, 4:4

1987-1: Campaign's compensation of lost wages to

candidate prohibited, 4:5

FEDERAL ELECTION COMMISSION

999 E Street,NW

Washington, D.C. 20463

Official Business

Volume 13, Numte

1987-2: Campaign's purchase of car for cand

date's reelection and official duties, 4:5

1987-3: Refund for terminated Presidential cam

paign, 4:6

1987-4: Excess campaign funds transferred fro

individual's 1936 to his 1984 campaign, 5:4

1987-5: Solicitability of membership organiz

tion's members, 5:5

1987-6: Trade association PAC1s combined du

payment/solicitation plan prohibited, 5:5

COURT CASES

FEG v, Americans for Jesse Jackson, 2:9

FEC v, Beatty for Congress Committee, 3:6

FEC v, Citizens Party, 1:8; 2:8

FEC v . Congressman Charles E. Rose, 2:7

FEC v. Ernest Halter and AIDS, 4:7

FEe v. Furgatch; FEC v, Dominelli, 3:5

FEC v, John R. Clark, Jr., 2:8

FEC v; Jolyn Robichaux, et al., 2:9

FEC v, Mark Barry, 4:7

FEC v, MCFL, 2:4

FEC v. Ted Haley Congressional Committee, 5:6

FEC v, 1984 Victory Fund, 3:6

Common Cause v. FEC (fourth suit), 2:6; fif

suit, 2:9

800 LINE

After the election: winding down, 3:9

Personal financial reports, 5:7

Bulk Rate Mail

Postage and Fees Paid

Federal Election Commission

Permit Number G-31