,

January 1995

Table of Contents

Message from the Chairman

Commissioners

1995 Chairman and Vice

Chairman Elected

Compliance

2 MUR 3540: Corporate

Fundraising Activity Incurs

Largest Penalty in FEC History

2 MUR 3650: Loan Guarantors

Count as Contributors

3 MURs Released to the Public

3 Federal Register Notices

Reports

4 Reports Due in 1995

Audits

6 Report on U.S. House Campaign

in Florida

Statistics

7 Democrats Increase Pre-Election

Activity

8 Spending Soars for '94 Races

Motor Voter

9 National Mail Voter Registration

Form Approved

Regulations

9 FEC Petitioned to ClarifyRules

Governing Post Presidential

Election Financial Activity

9 Advisory Opinions

Court Cases

10 DSCCv. FEC(#93-132 1)

10 New Litigation

Information

II Flashfax Menu

12 Inde x

Federal Election Commission

Commissioners

1995 Chairman and

Vice Chairman Elected

On December 15, 1994, the

Commission unanimously elected

Danny L. McDonald as FEC

Chairman and Lee Ann Elliott as

Vice Chairman. Mr. McDonald,

who was the 1994 Vice Chairman,

succeeds Trevor Potter as Chair man.

Mr. McDonald has been a

Commissioner since 1981 and

served as the FEC Chairman in 1983

and 1989. He was reappointed by

President Reagan in 1987, and by

President Clinton in 1994.

Befor e his original appointment,

he managed 10 regulatory divisions

as the general administrator of the

Oklahoma Corporation Commission. He previously served as

secre tary of the Tulsa County

Election Board and as chief clerk of

the board. He was also a member of

the Advisory Panel to the FEe's

National Clearinghouse on Election

Administration .

A native of Sand Springs, Oklahoma, Mr. McDonald graduated

from Oklahoma State University

and attended the John F. Kennedy

School of Govern ment at Harvard

Univers ity.

Mrs. Elliott was first appointed to

the Commission in 1981 and

reappo inted in 1987 by President

(continued on page 2)

Message from Danny

McDonald, Chairman

The Federal Election Commission is looking forward to another

busy year in this, our twentieth year

of operation.

In 1994, the Commission established a record of considerabl e

achievement. We placed on the

public record reports from federal

election campaigns showing an 18

percent increase in spending f:0 r:t.

1992. Our newly-instituted pnonuzation system enabled us to enforce the

I most significant compliance matters

with unprecedented efficiency and

effectiveness, a trend we plan to

continue. The Commission also

approved the standardized National

Mail Voter Registration Form.

The coming year promises to

present continued challenges and

demands. As we approach the tasks

of 1995, including revising Presidential funding regulations, enhancing our information and enforcement

operations and hosting the annual

conference for the Council of Governmental Ethics Laws, we welcome

your comments and suggestions.

On a personal note, I want to extend special thanksto last year's ~­

man,Trevor Potter, for his outstanding

leadership during the past year.
Federal Election Commiss ion RECORD

Commissioners

(co ntinued from page J)

Reagan, and in 1994 by President

Clinton. She served as chairman in

1984 and 1990.

Before her first appointment,

Mrs. Elliott was vice president of a

political consulting firm, Bishop,

Bryant & Associates, Inc. From

1961 to 1979, she was an executive

of the American Medical Political

Action Committee. Mrs. Elliott was

on the board of directors of the

American Association of Political

Consultants and on the board of the

Chicago Area Public Affairs Group,

of which she is a past president. She

was also a member of the Public

Affairs Conunittee of the U.S.

Chamber of Commerce. In 1979,

she received the Award for Excellence in Serving Corporate Public

Affairs from the National Association of Manufacturers.

A native of S1. Louis, Mrs. EIIiott

graduated from the University of

IIIinois. She also completed Northwestern University' s Medical

Federal Election Commission

999 E Street, NW

Washington, DC 20463

800/424-9530

20212 I9-3420

202/501-3413 (Flashfax Service)

2021219-3336 (TDD)

Danny L. McDonald , Chairman

Lee Ann Elliott, Vice Chairman

Joan D. Aikens, Commissioner

John Warren McGarry,

Commissioner

Trevor Potter, Commissioner

Scott E. Thomas, Commissioner

John C. Surina, Staff Director

Lawrence M. Noble, General

Counsel

Published by the Information

Division

Louise D. Wides, Director

Dario Bard, Editor

2

Association Management Executive

Program and is a Certified Association Executive.•

Compliance

MUR3540

Corporate Fundraising

Activity Incurs Largest

Penalty in FEC History

Prudential Securities Inc. (PSI)

agreed to pay a $550,000 civil

penalty for having violated the

Federal Election Campaign Act (the

Act) by conducting illegal corporate

fundraising activities. This civil

penalty is the largest in the FEC's

19-year history. This bench mark

aptly coincides with the one-year

anniversary of the FEC's new

prioritization system-a system that

has allowed the FEC to focus its

resources in its pursuit of significant

enforcement cases.

The case at hand involves PSI

fundraising activities undertaken on

behalf of candidates from 1986 to

1993. The FEC found that PSI's

fundraising activities often involved

the use of corporate resources to

solicit contributions from PSI

officials and employees at other

securities firms. Some fundraisers

were held in PSI board rooms, and

PSI clerical staff were asked to

prepare materials for fundraising

events during their regular work

hours. In various instances, PSI

collected contributions and forwarded them to the candidates'

campaigns. Federal law prohibits

corporations from making contributions of any kind to candidates for

federal office, including fundraising

activities in which a corporation's

employees solicit and gather contributions using the corporation's

facilities. 2 U.s.c. §441b(a).

This was the second violation of

this nature by PSI. In 1987, PSI

January 1995

(then known as Prudential-Bache

Securities) agreed to a $7,000 civil

penalty with regard to a similar

violation involving fundraising on

behalf of Senator John Glenn's (DOH) 1984 Presidential campaign

(MUR 1690). Some of the PSI

personnel involved in that case were

also involved in the matter at hand.

The Commission, therefore, determined that PSI committed "knowing

and willful" violations of the Act.

PSI's fundraising efforts totaled

some $250,000 and benefited the

foIlowing candidates: Presidential

candidate Pete du Pont (R-DE);

Senators Max Baucus (D-MT), Bill

Bradley (D-NJ), Robert Dole (RKS) and Terry Sanford (D-NC);

Senatorial candidates Pete Dawkins

(R-NJ) and Christine Todd Whitman

(R-NJ); and Representatives Frank

Guarini (D-NJ) and Charles Rangel

(D-NY). The Commission did not

focus on the candidate recipients

and therefore made no findings

against them.•

MUR3650

Loan Guarantors Count as

Contributors

Congresswoman Mary Rose

Oakar and the Mary Rose Oakar for

Congress Committee each agreed to

pay a $8,000 civil penalty for

accepting excessive contributions in

the form of loan guarantees totaling

$64,666.

In the course of her 1992 bid for

the seat of U.S. Representative from

the Tenth District of Ohio, Congresswoman Oakar obtained a

$100,000 loan from Society National Bank of Cleveland, Ohio

(Society) with the help of her sister

and brother-in-law, Helen and Philip

Demio. The Demios provided

collateral, thus becoming guarantors

of the loan.

The committee used Society loan

I funds to make expenditures. Subsequently, Congresswoman Oakar and

her campaign committee took

prompt steps to repay the Society
January 1995 Federal Election Commission RECORD

loan. They retired the loan by Complainant: FEC initiated further action; sent admonishment

obtaining a second $100,000 loan Subject: Failure to file 48-hour letter

from another bank using the com- I notices

mittee's monies and Congress- Disposition: $9,000 civil penalty MU R 3935

woman Oakar's salary as collateral. Resp ondents: Giglio for Congress

Under the Act, a guarantee of a I MUR 3817 Committee, Tina 1. Paterek, treabank loan is treated like a contribu- Respondent: Committee to Re-elect surer (Il.)

tion to the extent that the loan re- Congressman William D. Ford, Com plaina nt: Michael Dillon (lL)

mains unpaid. 2 U.S.c. §431(8)(B) Theodore Monolidis, treasurer (MI) Subj ect : Disclaimer

(viii) and II CFR I00.7(a)( I)(i)(B). Complainant: FEC initiated Disposition: Reason to believe but

The Act places a limit of $1 ,000 on Subject: Failure to file 48-hour took no further action; sent adrnonthe amount a candidate may acce pt notices ishment letter

from an individual. 2 U.S.c. §44la(f) . Disposition: $5 ,000 civil penalty

MUR 3936 In the case at hand, then, Congresswoman Oakar's campaign MUR 3818 Respondents: Neal for Congress,

committee accepted a contribution Respondents: Manton for Con- Thomas M. Sealy, treasurer (Il.)

from eac h of the Dernios equal to gress, Inc., Lloyd J. Sleeth treasurer Complainant: Michael Dillon (IL)

their share of the Society loan's (NY) Subject: Disclaimer

collateral. Since the loan had three Complainant: FEC initiated Disposition: No reaso n to believe

guarantors, the Demios in effect Subject: Failure to file 48- hour

notices; inaccurate disclosure of MUR3950

contributed two thirds of the loan dates of receipts Resp ondents: Tulsa County ($66,666)- $33,333 each. This represents $32,333 in excessive con- Disp osition: $4 ,750 civil penalty Republican Committee, Rodney D.

Kaufmann, treasurer

tributions from each of the Demios, MUR 3892/Pre-M UR 298 Com plainant: FEC initiated

for a combined total of $64,666 in Respondents: (a) John D. Subject: Failure to file reports on excessive contributions. + Murchinson (TX); (b) Bush-Quayle time

'92 Primary Committee, J. Stanley Disp osit ion: $3,700 civil penalty

MURs Released to the Public

Hucka by, treasu rer (VA)

Complainant: Center for Respon- MU R 3959

Listed below are summaries of sive Politics (DC) Respondents: (a) Americans for

FEC enforcement cases (Matters Subject: Exceeding $25 ,000 annual Harkin, Inc., Larry Hawkins,

Under Review or MURs) recent ly limit; excessive contributions treas urer (DC); (b) David E.

released for public review. This Disposition: (a) $28 ,000 civil Johnson (DC)

listing is based on the FEC press penalty ($25,000 limit); no reason to Com plaina nt: FEC initiated

releases of October 28 and Novem- believe (excessive contributions); Subject: Corpora te contributions;

ber 15 and 23, but it does not (b) no reason to believe (excessive excessive contributions

includ e the 5 MURs in which the contri butions) Disposition: (a) and (b) Reason to

Commission took no action. Files on believe but took no further action +

closed MURs are available for MUR3911

rev iew in the Pub lic Records Office. Respondents: (a)William C.W.

Mow (CA); (b)Bush-Quayle '92

MU R 3807 Primary Committee, J. Stanley

Responden ts: Democratic State Huckaby, treasurer (VA); (c) Federal Register

Committee Delaware, J. Thomas National Republican Congressional

Hannagan, Jr., treasurer (DE) Committee, Donna Singleton, Federal Register notices are

Com plainant: FEC initiated treasurer (DC); (d) U.S. Senator available from the FEe's Public

Subject: Failure to file report on John Seymour Committee, Charles Records Office.

time Bell, treasurer (CA) 1994-17

Disposition: $4,400 civil penalty Com plainant: Center for Respon- II CFR Parts 9001-9007:

MU R 3815

sive Politics (DC) Rulemaking Petition (re: Post

Subject: Exceeding $25 ,000 annua l Presidential Election Activity);

Responden ts : Hartnett for U.S. I limit; excessive contributions Anthony F. Essaye and William

Sena te, Paul Meierer, Jr., treas urer I Disposition: (a) $35,000 civi l Josephson; Notice of Availability

(SC) penalty; (b) No reason to believe; (59 FR 63274, December 8,

(c-d) Reason to believe, but took no 1994)

3
Federal ElectionCommission RECORD January 1995

Reports

Reports Due in 1995

This article on filing requirements for 1995 is supplemented by

the reporting tables that follow.

It is the responsibility of the

committee treasurer to file required

reports on time . To assist treasurers,

the Conunission sends committees

FEC reporting forms and notices of

upcoming reporting deadlines.

For further information on

reporting or to order extra forms,

call the FEC: 800/424-9530 or 202/

219-3420.

Year-End Reports Covering

1994 Activity

All committees must file a 1994

year-end report due January 31,

1995. The coverage and reporting

dates are found in Table 1 on page

5.

unless they file on a monthly, rather

than semiannual, basis. 11 CFR

104.5(c)(3) and 104.5(h). However,

all PACs are subject to 24-hour

reporting of independent expenditures made shortly before an election. See 11 CFR 104.4(b) and (c)

and 104.5(g).

When timing permits, the Record

will alert committees to special

election reporting dates in 1995.

Late Filing

The Federal Election Campaign

Act does not permit the Commission

to grant extensions of filing deadlines under any circumstances.

Filing late reports could result in

enforcement action by the Commission .

Where to File

Committee treasurers must file

FEC reports with the appropriate

federal and state filing offices.

Please note that:

• The addresses for the federal

offices (FEC, Clerk of the House

and Secretary of the Senate) appear

in the instru ctions to the Summary

Page of FEC Forms 3 and 3X.

• A list of state filing offices is

available from the Commission.

House and Senate Candidate

Committees. Principal campaign

I conunittees of House and Senate

candidates file with the Clerk of the

House or the Secretary of the Senate, as appropriate. 11 CFR 105.1

and 105.2. The principal campaign

committee must simultaneously file

a copy of each report and statement

with the Secretary of State (or

equivalent officer) of the state in

which the candidate seeks (or

sought) election. 2 V.S.c.

§439( a)(2)(B ).

Presidential Committees. Principal campaign committees of PresiI This category includes committees of candidates retiring debts from a previous

election or running for a future election.

2 Presidential committees may fil e on either a quarterly or a monthl y basis. Those

wishing to change their filing fr equency should notify the Commission in writing.

3 PACs and party committees may file on either a semiannual or a monthly basis.

Committees wishing to change their filing frequen cy must notify the Commission in

writing when filing a report under the committee 's current schedule. A committee

may change its filing frequency only once per calendar year. 11 CFR 104.5(c).

Type of Filer

I Guide to 1995 Reporting

House and Senate .I

Candidate Committees 1

.I

Monthly

or 2 .I

or 3

.I

Reports

Semiannual Quarterly

.I

.I

Presidential Candidate

Committees

PACs and Party

Committees

'94 YearEnd

Reports Covering 1995 Activity

To find out what reports your

committee must file in 1995, check

the Guide to Reporting table, below.

Then check the accompanying

tables on reporting dates, page 5.

Please note that if any special

elections are held in 1995, committees active in those elections may

have to file special election reports,

as explained below.

Committees Active

in Special Elections

Committees authorized by

candidates running in any 1995

special election must file election

reports in addition to regularly

scheduled reports. 11 CFR 104.5(h).

They are also required to comply

with the 48-hour notice requirement

for contributions of $1,000 or more

(including loans) received shortly

before an election. See 11 CFR

104.5(f).

PACs and party committees

supporting candidates running in

special elections may also have to

file pre- and post-election reports

4
January 1995 Federal Election Commission RECORD

Table 4: 1995 Quarterly Reports

(Option available to Presidential committees only.)

I I Reports sent by registered or certified mail must be postmarked by the filing date;

reports sent by other means must be received by the federal and state filing offices

on that date. 11 CFR l04.5(e).

Table 3: 1995 Monthly Reports

Table 2: 1995 Semiannual Reports

April 15

July 15

October 15

January 31,1996

Filing Date 1

July 31,1995

January 31,1996

Filing Date 1

Filing Date 1

Filing Date 1

January 31, 1995

February 20

March 20

April 20

May 20

June 20

July 20

August 20

September 20

October 20

November 20

December 20

January 31,1996

January 1 - March 31

April 1 - June 30

July 1 - September 30

October 1 - December 31

January 1 - June 30

July 1 - December 31

Period Covered

Period Covered

Period Covered

January 1 - 31

February 1 - 28

March 1-31

April 1 - 30

May 1 - 31

June 1 - 30

July 1-31

August 1 - 31

September 1 - 30

October 1 - 31

November 1 - 30

December 1 - 31

Period Covered

Closing date

of last report

through

December 31,1994

Mid-Year

Year-End

Report

Report

1st Quarter

2nd Quarter

3rd Quarter

Year-End

Report

Report

Year-End

February

March

April

May

June

July

August

September

October

November

December

Year-End

Table 1: 1994 Year-End Report

(Required of all committees.)

dential candidates file with the FEe.

11 CFR 105.3. The principal campaign committee must simultaneously file a copy of each report

and statement with the Secretary of

State (or equivalent officer) of each

state in which the conunittee makes

expenditures. 11 CFR 108.2.

Candidate Committees with More

Than One Authorized Committee. If

a campaign includes more than one

authorized committee, the principal

campaign committee files, with its

own report, the reports prepared by

the other authorized committees as

well as a consolidated report (FEC

Form 3Z or page 5 of FEC Form 3P,

as appropriate). 11 CFR 104.3(f).

PACs and Party Committees.

Generally, PACs and party committees file with the FEe. There are,

however, two exceptions: Committees supporting only House candidates file with the Clerk of the

House; those supporting only Senate

candidates file with the Secretary of

the Senate. 11 CFR 105.1 and 105.2.

PACs and party committees must

simultaneously file copies of reports

and statements with the Secretary of

State (or equivalent officer), as

follows:

• Committees making contributions

or expenditures in connection with

House and Senate campaigns file

in the state in which the candidate

seeks election. The committee is

required to file only that portion of

the report applicable to the candidate in that state (e.g., the Summary Page and the schedule

showing the contribution or

expenditure). 2 USe.

§439(a)(2)(B).

• Committees making contributions

or expenditures in connection with

Presidential candidates file in the

states in which the Presidential

committee and the donor committee have their headquarters. 11

CFR 108.4. ..

5
Federal Election Commission RECORD

Audits

Report on U.S. House

Campaign in Florida

An FEC audit report found that

the Friends of Corrine Brown had

received contributions from prohibited sources, had failed to submit

correct reports and had failed to

maintain adequate records for

campaign transactions.

The Friends of Corrine Brown

served as Ms. Corrine Brown's

principal campaign conunittee

during the 1992 race for V.S.

Representative of Florida's 3rd

District. In the final audit report, the

Commission made the following

findings:

• The committee accepted $4,200 in

corporate contributions and $250

in contributions from foreign

nationals. Both corporations and

foreign nationals are prohibited

sources of contributions. 2 V.S.c.

§§441b and 44le. The committee

should have refunded these

contributions within 30 days of

Correction

In the December issue, the

article on Addy v. FECI Common

Cause v. FEC, appearing on page

6 under the heading "New

Litigation," had two errors in the

final paragraph.

First, the Commission

considered the General Counsel's

recommendations on this matter

on August 2, 1994, not August 2,

1984.

Second, it should be noted that

the 3-2 Commission vote was

composed of three votes in favor

of finding "probable cause" to

believe, and two votes opposed.

The vote thus fell one vote shy of

the four votes required for the

Commission to take action. This

led to the subsequent dismissal of

MUR 3204.

6

receipt.

• The committee failed to provide

documentation that it had made an

advance payment to a corporation

for the use of its corporate aircraft.

2 V.S.c. §441b and II CFR

I 14.9(e).

• The conunittee misstated financial

activity, understating its receipts

by $12,325 and its disbursements

by $24,480. It also overstated its

ending cash by $12,154. 2 V.S.c.

§434b(1), (2) and (4).

• The conunittee failed to show that

$14,500 in loans from the candidate came from her personal funds.

A candidate may make contributions or loans to his or her committee without limit as long as he or

she uses personal funds. 2 V.S.c.

§431 (8)(A)(i) and 11 CFR 110.1O.

• The committee failed to itemize

$14,000 in contributions and

$54,780 in disbursements. The

committee also failed to provide

complete itemized information for

$73,600 in contributions, and

failed to include in FEC reports the

occupation and employer of

contributors who gave the committee a cumulative total of $10,450.

2 V.S .c. §§434(b)(3), (4) and (5),

and 431(13); 11 CFR 104.3(a),

102.9(d) and 104.7.

• The conunittee failed to maintain

records showing the purpose of

117 disbursements totaling

$46,962.2 V.S.c. §432(c)(5).

• The committee made out 46 checks

totaling $26,833 payable to cash.

Committees can only make cash

transactions to cover petty cash

expenses under $100.2 V.S.c.

§434(b)(5)(A); 11 CFR 103.3(a)

and 102.11.

January 1995

• The conunittee failed to file 48-

hour notices for contributions

totaling $80,870. Committees are

required to file these notices to

disclose contributions of $1,000 or

more when they are received

shortly before an election. 2 V.S.c.

§434(a)(6) and II CFR 104.5(f).

• The conunittee received a $2,326

transfer from the candidate's

nonfederal committee and failed to

itemize it. II CFR 110.3(c)(6).

In response to the interim audit

report, the conunittee amended its

reports to correct many of the

reporting failures.•

Change of Address

Political Committees

Treasurers of registered

political committees automatically receive the Record. A

change of address by a political

committee (or any change to

information disclosed on the

Statement of Organization) must,

by law, be made in writing on

FEC Form 1 or by letter. The

treasurer must sign the amendment and file it with the Secretary

of the Senate, the Clerk of the

House or the FEC (as appropriate) and with the appropriate state

office.

Other Subscribers

Record subscribers who are not

registered political committees

should include the following

information when requesting a

change of address:

• Subscription number (located on

the upper left corner of the

mailing label);

• Subscriber's name;

• Old address; and

• New address.

Subscribers (other than

political committees) may correct

their addresses by phone as well

as by mail.
January 1995 Federal Election Commission RECORD

Republicans

Democrats

1991-92 1993-94

•••••

1987-88 1989-90

•.-.

•••

••

••••-..•........•....•..

••

••

•

1983-84 1985-86

Disbursements

200 ---"~--------------

Ol------t-----+-----+-----f-----l

250 .---- - - - - - - - - - - - - - - - - - - --

50 f---""......ooo::- ---::;;o.,: -- .........-___;"..- - - --- -

100 f- - - - - - - - - - - - - - - - - - - - - -

150 f--- - - - - - - - - - - - - - - - - - - - -

50 I=-......=c---- ----,.. ""----- .....=_-~~-----

250 .---- - - - - - - - - - - - - - - - - - ---

200 f-- ..._,_____--------------- - - -.~-.-••

•

150 1-----------.-..:--_ _ .........

Activity of National Party Committees Through Twenty Days

Prior to the General Election

(Thousands of Dollars)

Receipts

I 100 1--- - - - - - - - - - - - - - - - - - - - - - _

Statistics ..

Democrats Increase

Pre-Election Activity

Based on pre-election reports,

Democratic national committees

more than doubled their midterm

election fundraising, compared with

1990, while their Republican

counterparts received about the

same amount in contributions this

election cycle as they did in the

1990 election cycle . Republicans,

however, maintained a financial

advantage this election cycle,

raising more than $2 for every $1

raised by the Democrats.

Comparing national party activity

in Congressional races only, since

the 1992 cycle, the Democrats

increased their support to federal

candidates by 59 percent, while

Republican support dropped II

percent.

In terms of soft money (monies

raised outside the limitations and

prohibitions of the Federal Election

Campaign Act), Democrats raised

$43 million and spent $44 million so

far this election cycle; during the

same period in the 1992 election

cycle, they raised $30.9 million and

spent $26.1 million. Republicans

raised $43.6 million and spent $42.5

million in soft money this election

cycle, compared with the $47 .1

million raised and $38 .7 million

spent during the same period in the

1992 election cycle. The nonfederal

accounts of the Democratic National

Committee and the Republican

National Committee accounted for a

majority of the soft money activity

reported this election cycle.

These statistics are among many

found in a press release issued on

November 2. The compilation

covers national party activity from

January I, 1993, through October

19, 1994.•

(Statistics continued on page 8)

Ol------t-----+------+----+--------i

1983-84 1985-86 1987-88 1989-90 1991-92 1993-94

7
Federal Election Commission RECORD

Statistics

(continued from page 7)

Spending Soars for '94 Races

Pre-election reports show that

spending by U.S. Congressional

candidates has grown by $69

million over 1992 levels. This 18

percent increase occurred despite

the absence of the unusual factors of

redistricting and reapportionment

that contributed to the 1992 upsurge

in activity.

Contributions from individuals

and PACs were the leading sources

of support for both Senate and

House candidates. FEC reports

covering activity through October

19 show that Senate candidates

received $137 million in individual

contributions compared with $37

million in PAC contributions. House

candidates received $154 million in

individual contributions and $107

million in PAC contributions.

Median disbursements for House

Republican challengers nearly

doubled from 1992, to $103,240,

while Democratic challengers'

median increased 8 percent, to

$45,904. Median disbursements for

House Democratic incumbents

January 1995

increased one percent, to $375,448,

while the median for Republican

incumbents decreased 15 percent, to

$292,297. In open seat races,

median spending for Democrats

increased 38 percent to $355,513,

while the median for their Republican counterparts increased 60

percent, to $371,779.

These figures are based on FEC

reports covering activity through

October 19. More detailed information is available in an FEC press

release issued on November 4. To

obtain a copy of the release, call

800/424-9530 (ask for Public

Records) or 202/219-4140...

Median Disbursement by House Candidates!

(Thousands of Dollars)

[ 11992

_1994

o 50 100 150 200 250 300 350 400

Democrat Incumbent

Republican Challenger

Republican Incumbent

Democrat Challenger

Democrat Open Seat

Republican Open Seat

I Covers election cycle activity through 20 days before the general election.

8
January 1995

Motor Voter

National Mail Voter

Registration Form Approved

Registering to vote is an easy

New Year's resolution to keep this

year. A Commission-approved, mail

voter registration form is expected

to be publicly available by January

I, 1995.

The national form , mandated by

the National Voter Registration Act

of 1993, provides citizens greater

flexibility in the times and places

they can register to vote. Citizens

who reside or have an address in the

United States can use the form to

register to vote in their state of

residency. They may also report a

change of name and/or address, and

declare a party affiliation. This form

enables them to do it all by mail.

Citizens in all but five states

(Arkansas, New Hampshire, North

Dakota, Virginia and Wyoming)

will be able to use this form anywhere in the U.S.A. to register in

their home state. Completed forms

are to be mailed to each state's

election authorities.

The FEC has mailed printing

specifications and a camera-ready

copy of the form to each state's

chief election official. Each state

will be responsible for the actual

printing and distribution of the form.

The national form is not intended to

supplant state registration forms . •

Regulations

FEC Petitioned to Clarify

Rules Governing Post

Presidential Election

Financial Activity

The FEC received a Petition for

Rulemaking requesting clarification

as to whether the Commission's

rules govern campaign financial

activity related to the operation of

the Electoral College and possible

Congressional involvement in the

Presidential selection process. This

Petition for Rulemaking was

received on November 18, 1994,

from Anthony F. Essaye and

William Josephson.

The petitioners note that in

instances when the Electoral College vote or when a vote in Congress becomes a contested part of

the process whereby a President and

a Vice President are chosen, the

regulations do not state whether the

Federal Election Campaign Act or

the Presidential Election Campaign

Fund Act applies to a candidate's

receipts or disbursements at this

stage of the process.

The Commission has published a

Notice of Availability in the Federal

Register seeking comment on

whether it should initiate a rulemaking in response to the petition. (59

FR 63274, December 8, 1994)

The public comment period for

this Notice closes on January 9,

1995. If the Corrunission does

decide to address this question in the

rules, it may choose to incorporate it

into the ongoing revision of the

rules governing Presidential candidates who accept federal funding.•

Federal Election Commission RECORD

Advisory

Opinions

Advisory Opinion Requests

Advisory opinion requests

(AORs) are available for review and

comment in the Public Records

Office.

AOR 1994-35

Reporting of bank loan repaid in full

via mortgage loan. (Susan Alter;

November 15,1994; I page plus 6-

page attachment)

AOR 1994-36

SSF solicitation of employees who

are beneficial stockholders in

employee-owned company. (Science

Applications International Corporation; November 18, 1994; 2 pages

plus 46-page attachment)

AOR 1994-37

Sharing of paid staff and facilities

between candidate's federal committee and his nonfederal exploratory committee. (Congressman

Charles E. Schumer; November 18,

1994; 4 pages)

AOR 1994-38

Applicability of state disclosure

obligations to Congressional

campaign's donation to state ballot

proposition committee. (RoybalAllard for Congress Committee;

December 2, 1994; 3 pages)

AOR 1994-39

Applicability of definition of

member to affil iates who pay dues

and receive some benefits of

membership but not the right to

vote. (National Association of

Surety Bond Producers; December

5, 1994; 1 page plus IO-page

attachment) •

9
Federal Election Commission RECORD

Court Cases

Democratic Senatorial

Campaign Committee v,

FEC (93-1321)

On November 14, the U.S.

District Court for the District of

Columbia ordered the FEC to vacate

its dismissal of the Democratic

Senatorial Campaign Committee's

(DSCC's) complaint against the

National Republican Senatorial

Committee (NRSC) with respect to

excessive contributions made in the

1992 Georgia U.S. Senate race. The

court based this judgment on FEC

regulations defining general and

runoff elections. 11 CFR §100.2(b)

and (d).

A general election was held in

Georgia on November 3, 1992, in

which none of the candidates for

U.S. Senate won a majority. Under

Georgia law, when an election for

U.S. Senator fails to produce a

majority winner, a second election

must be held between the top two

vote getters. Such an election was

held on November 24, 1992.

Under the Federal election law,

the DSCC and the NRSC were each

permitted to spend up to $535,608

on behalf of their party nominee in

the 1992 Georgia general election

for U.S. Senate. 2 U.S.c. §441a(d).

The NRSC had exhausted this

spending authority by November 3,

while the DSCC had not. Subsequently, the NRSC requested an

advisory opinion from the FEC as to

whether to classify the November

24 election as a second general

election or as a runoff. The NRSC

would be legally entitled to a new

$535,608 spending authority if the

election were deemed a general

election, but not if it were deemed a

runoff election. Since the Commission split 3-3 I on how to classify the

'Four votes (out ofsix) are required to

adopt advisory opinions and to take

action in compliance matters. JJ CFR

JJ2.4(a).

10

November 24 election, no advisory

opinion was issued. The NRSC then

proceeded to spend nearly the full

amount permitted for a general

election in support of its candidate

for the November 24 election. The

DSCC, on the other hand , limited its

expenditures to the balance which

remained from the original §441a(d)

allowance.

The DSCC filed a complaint with

the FEC on November 19, alleging

that the NRSC had violated federal

election law by exceeding its

§441 a(d) spending limit in this race .

The Commission split 3-3 on

whether or not to initiate an investigation and then dismissed the

DSCC's complaint. The DSCC then

brought this case before the court.

Based on its interpretation of

FEC regulations, the court concluded that the November 24

election was not a general election.

It reasoned that the election could

not qualify as a general election

because it was not held on the

Tuesday following the first Monday

in November in an even numbered

year, nor was it designed to fill a

vacancy, thus failing to meet either

of the criteria for a general election.

11 CFR §100.2(b).

The court further reasoned that

the November 24 election fit the

definition of a runoff election

because it was held after a general

election and it was prescribed by

applicable state law as the means for

deciding which candidate was the

winner. 11 CFR § 100.2(d ).

The court disagreed with the

argument that the November 24

election could be both a general and

a runoff election. The court observed that the regulations do not

state that a runoff election can also

be a general election, whereas, in

defining other types of elections, the

regulations clearly state where

overlap is possible.

The court ordered the FEC to

initiate appropriate enforcement

proceedings against the NRSC. ...

January 1995

New Litigation

Lytle v. FEe, et al.

Terry L. Lytle, an independent

U.S. Senate candidate, asks the

court to find it unconstitutional for

U.S. Senate candidates to accept

contributions from out-of-state

sources. Mr. Lytle brings this case

I against the FEC, the Tennessee

Election Commission (TEC) and

two candidates who opposed him in

the 1994 Tennessee U.S. Senate

race .

The plaintiff argues that:

• Senators who have received outof-state money compromise the

constitutional rights of residents of

every state to elect and have the

undivided loyalty of two U.S.

Senators;

• Citizens of wealthier and more

populous states can achieve greater

influence in Congress at the

expense of the citizens of less

affluent and less populous states

by making out-of-state contributions; and

• By accepting out-of-state contributions, Senators dilute the concept

of a legislative body that represents 50 unique state constituencies, and create a possible

convergence of interests at several

levels of the federal government in

violation of the principles of

checks and balances and the

separation of powers.

The plaintiff asks the court to:

• Remove the defendant candidates

from the Senate race ; or

• Immediately enjoin the FEC and

the TEC, postpone the Senate

election and order the defendant

candidates to refund all out-ofstate contributions.

U.S. District Court for the Middle

District of Tennessee, No. 3-94-

0946 , October 25, 1994....
441. Section 441

442 . Section 442

451. Section 451

452 . Section 452

453 . Section 453

454. Section 454

455. Section 455

January 1995

Information

Flashfax Menu

To order any of these documents,

24 hours a day , 7 days a week, call 2021

501-3413 on a touch tone phone. You

will be asked for the numbers of the

documents you want, your fax number

and your regular number. The documents will be faxed shortly thereafter.

Disclosure

301. Guide to Researching Public

Records

302. Accessibility of Public Records

Office

303 . Federal/State Records Offices

304. Using FEC Campaign Finance

Information

305. State Computer Access to FEC

Data

306. Direct Access Program (DAP)

307. Sale and Use of Campaign

Information

Limitations

315. Contributions

316. Coordinated Party Expenditure

Limits

317. Advances: Contribution Limits

and Reporting

318 . Volunteer Activity

319 . Independent Expenditures

320. Local Party Activity

321. Corporate/Labor Facilities

322. Corporate/Labor Communications

323. Trade Associations

324 . Foreign Nationals

Public Funding

330. Public Funding of Presidential

Elections

331 . The $3 Tax Checkoff

332 . 1993 Changes to Checkoff

333. Recipients of Public Funding

334. Presidential Fund Tax Checkoff

Status

Compliance

340 . Candidate Registration

341. Committee Treasurers

342. Political Ads and Solicitations

343. 10 Questions from Candidates

344. Reports Due in 1994

345 . Primary Dates and Deadlines for

Ballot Access

346. Filing A Complaint

Federal Election Commission

401. The FEC and the Federal Campaign Finance Law

402. La Ley Federal relativa al Financiamiento de las Carnpafias

403. State and Local Elections and the

Federal Campaign Law

404. Compliance with Laws Outside

the FEC's Jurisdiction

405. Biographies of Commissioners

and Officers

406. Telephone Directory

407. Table of Organization

408. Index for 1993 Record Newsletter

409 . Free Publications

411. Complete Menu of All Material

Ava ilable

Clearinghouse on Election

Administration

425. List of Reports Available

426. Voting Accessibility for the

Elderly and Handicapped Act

427 . National Voter Registration Act

of 1993 (see also document 226)

Money in Politics Statistics

625. 1991-92 Political Money

626 . 1993 Year-End PAC Count

627. 1993-94 Congressional

628 . 1993-94 National Party

629. 1993-94 PAC Finances

1996 Presidential Election

651. Gramm

Regulations (11 CFR Parts 100-201)

100. Part 100, Scope and Definitions

101. Part 10I, Candidate Status and

Designations

102. Part 102, Registration, Organization and Recordkeeping by

Political Committees

103. Part 103, Campaign Depositories

104. Part 104, Reports by Political

Committees

105. Part 105, Document Filing

106. Part 106, Allocations of Candidate

and Committee Activities

107. Part 107, Presidential Nominating

Convention, Registration and

Reports

108. Part 108, Filing Copies of Reports

and Statements with State Offices

109. Part 109, Independent Expenditures

110. Part 110, Contribution and

Expenditure Limitations and

Prohibitions

Ill. Part III, Compliance Procedure

112. Part 112, Advisory Opinions

113. Part 113, Excess Campaign Funds

and Funds Donated to Support

Federal Officeholder Activities

114. Part 114, Corporate and Labor

Organization Activity

Federal Election Commission RECORD

115. Part 115, Federal Contractors

116. Part 116, Debts Owed by Candidates and Political Committees

200. Part 200, Petitions for Rulemaking

20 I . Part 20 I, Ex Parte Communications

Recent Actions on Regulations,

Including Explanations

and Justifications

225 . Use of Candidate Names

226. Rules to Implement National

Voter Registration Act of 1993

227. Presidential Nominating Conventions

Forms

361. Form I, Statement of Organization

362. Form 2, Statement of Candidacy

363. Form 3 and 3Z, Report for an

Authorized Committee

364. Form 3X, Report for Other Than

an Authorized Committee

365. Form 5, Report of Independent

Expenditures

366. Form 6, 48-Hour Notice of

Contributions/Loans Received

367. Form 7, Report of Communication

Costs

368. Form 8, Debt Settlement Plan

369. Form 1M, Notification of Multicandidate Status

Schedules

370. Schedule A, Itemized Receipts

371. Schedule B, Itemized Disbursements

372. Schedules C and C-I, Loans

373. Schedule D, Debts and Obligations

374. Schedule E, Itemized Independent

Expenditures

375. Schedule F, Itemized Coordinated

Expenditures

376. Schedules HI- H4, Allocation

377. Schedule I, Aggregate Page

Nonfederal Accounts

U.S. Code (Title 2)

431. Section 431

432. Section 432

433. Section 433

434 . Section 434

437. Section 437

438. Section 438

439. Section 439

Advisory Opinions

801. AO 1994-1

802. AO 1994-2

803. AO 1994-3

804. AO 1994-4

(continued on page 12)

1f
Federal Ele cti on Commissio n RECORD

Information

(continued from page II )

805. AO 1994-5

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FEDERAL ELECTION COMMISSION

999 E Street, NW

Washington, DC 20463

Official Business

Penalty for Private Use, $300 *

Printed on recycled paper

831. AO 1994-31

832. AO 1994-32

900. Brochure

901. AO 1993- 1

902. AO 1993-2

903. AO 1993-3

904. AO 1993-4

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..- ----- ----- -

January 1995

Index

Th e first number in each cit ation

refers to the "number" (month) of

the 1995 Record issue in which the

article appeared. The second

number, fo llowing the co lon ,

ind icates the page number in that

issue. For example, " 1:4" means

that the article is in the Ja nuary

issue on page 4.

Court Cases

v. FEC

- Democratic Se na torial Campaign

Committee (93-132 1), 1:10

- Ly tle , 1:10

Reports

- Schedule for 1995, 1:4

Bulk Rate Mail

Postage and Fees Paid

Federal Election Commission

Permit Number G-31