Volume 10, Num

COURT CASES

II Citizens for LaRouche v. FEC

II New Litigation

12 AUDD'S

8 FEDERAL REGISTER NOTICES

9 PUBLIC APPEARANCES

LEGISLATION

9 FEC's 1984 Legislative Recommendation

10 Budget Testimony

800 UNE

7 Local and State Party Organizations:

Exempt Activities

4 ADVISORY OPINIONS

PRESIDENTIAL ELECTIONS

6 LaRouche's Matching Fund Eligibility

Terminated

REPORTS

2 July Reporting Schedule

4 Special Elections in New Jersey

TABLE OF CONTENTS

1 FEC CO-HOSTS STATE WORKSHOPS

REGULATIONS

1 Solicitation of Indirect Members

by Federated Cooperatives

SOLICITATION OF INDmECT MEMBERS

BY FEDERATED COOPERATIVES:

ADVANCE RULEMAKING N011CE

AND HEARING

On May 17, 1984, the Commission pub

an advance notice of proposed rulemaking 

Federal Register to seek additional comme

a petition for rulemaking filed by the Na

Council of Farmer Cooperatives (NCFC) in 

ary 1983. See 49 Fed. Reg. 20831. At the 

time, the Commission announced that it 

continued o

FEDERAL ELECTION COMMISSION

1325 K Street NW Washington DC 20463

On July 9-10, in cooperation with the

Washington State Public Disclosure Commission and the Gonzaga University School

of Law, the Commission will conduct a

similar series of workshops on federal election activity. The Washington conference,

held in Seattle, will also include workshops

on financing Presidential elections and

state campaign finance laws. Idaho, Montana and Washington attorneys participating in these workshops wUl be eligible to

receive 11.75 hours of continuing legal

education credit.

For more information on the conferences,

contact the FEC's Public Communications

Office at 202/523-4068 or call toll-free

800/424-9530.

FEC CO-HOSTS TWO

STATE WORKSHOPS

During June and July 1984, the Commission will co-sponsor two state workshops on campaign finance with state election officials in Virginia and Washington,

respectively. On June 22, in Richmond, the

Commission will participate in an all-day

conference focusing exclusively on the

financing of federal elections. In cooperation with the Virginia State Board of Elections, the Commission will conduct four

workshops on: the major provisions of the

federal election law; sources of campaign

support available to candidates for federal

office, with special emphasis on party support; corporate and labor organization participation in federal elections; and a general wrap-up session on how the FEC enforces the election law.

June 1984

•

•
2

JULY REPOR"ftNG SCHEDULE .

Different committees file reports at different times. To find out when your committee is

required to file its reports, consult the chart below. Then, to determine the particular requirements

for that report, consult the paragraphs on page 3.

•

Volume 10, Number 6

cooperatives affiliated with the federation. (Un- •

der the current rule, federated regional or national cooperatives may only solicit their own members. See 11 CFR 114.I(e) and AOs 1980-48 and

1981-23.)

On June 27, the Commission will hold a public

hearing on the proposed revision. Those interested

in testifying at the hearing should so indicate on

their written comments. Comments or questions

on the proposed revision should be submitted to

Ms. Susan E. Propper, Assistant General Counsel,

by June 18, 1984. Ms. Propper may be contacted

at 202/523-4143 or by writing the Commission at

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

June 1984 FEDERAL ELECTION COIV1MISSION

hold a public hearing on NCFC's petition. (A

notice announcing the availability of the NCFC

petition, and seeking comments on itt was first

published in the Federal Re ister on March 30t

1983. 48 Fed. R;g. 13265. In the petition, NCFC

asks the CommIssion to amend the definition of

"members" in the current FEC regulation. The

amendment would permit a federated regional or

national cooperative to solicit PAC contributions

from the individual members of state or local

Report

Quarterly Pre-Primary Monthly Semiannual

TypeofFDer July 15 July 20 July 31

1984 Congressional Candidates X X

Congressional Candidates/Other

Years X

1984 Presidential Candidates!

$100,000+ X

1984 Presidential Candidates/

Under $100,000 X X

1980 Presidential Candidates- X

Unauthorized Committees/Monthly2 X

Unauthorized Committees/Quarterly X X3

Connected Organizations/

Communications4 X

1Authorized Presidential committees that are not active in 1984 elections may file on either a

monthly or quarterly reporting schedule. See 11 CFR 104.5(b)(2).

2All unauthortzed committees (i.e., committees not authorized by candidates) are required to

file on either a monthly or quarterly basis in 1984.

3Required only if the WllIuthorized committee makes contributions or expenditures on behalf of

candidates in the primary which have not been previously disclosed.

4Report required if aggregate costs for internal communications which expressly advocate the

election or defeat of (a) clearly identified candidate(s) in the 1984 primaries have exceeded $2,000.
3

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

D.C. 20463. Commissioners are: Lee Ann Elliott, Chairman; Thomas E. Harris, Vice Chairma

Joan D. Aikens; Danny Lee McDonald; John Warren McGarry; Frank P. Reiche; William 

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

Representatives, Ex Officio. For more information, call Z02/523-4068 or toll-free 800/424-9530.

Volume 10, Num

The principal campaign committees of P

dential candidates must file copies of re

and statements with the Secretary of 

or the appropriate elections official o

state in Which the committee makes 

paign expenditures. These reports must 

tain all financial transactions which app

that state during the reporting period 

vered. 11 CFR 108.2.

Unauthorized committees making con

tions or expenditures in connection 

House and Senate races file in the sta

which the candidate seeks election. Th

requires a copy only of' that portion o

report applicable to the candidate(s) 

supported. Committees supporting Pres

tial candidates must file in the state

which the Presidential committee and 

committee have their respective head

ters.

The principal campaign committees of S

candidates and committees supporting o

posing only Senate candidates file wit

Secretary of the Senate, Senate PUbli

cords, II9 D Street, N.E., Washington, 

20510. II CFR 104.4(c)(2) and 105.2.

2•

2.

3.

HOW TO OBTAIN MORE INFORMATION

During 1984, reporting forms and addi

information will be sent to registered com

tees. Questions and requests for additional 

should be addressed to the Office of Public 

munications, Federal Election Commission, 

K Street, N.W., Washington, D.C. 20463; o

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

3. All other committees, including the prin

campaign committees of Presidential c

dates, file with the Federal Election 

mission, 1325 K Street, N.W., Washin

D.C. 20463. 11 CPR 105.3 and 105.4.

Filirc with State Gewemments

1. The principal campaign committees of 

gressional candidates must file a cop

every report and statement with the S

tary of State or the appropriate elec

official of the state in which the cand

seeks federal office. 11 CFR 108.3.

FEDERAL ELECTION COMMISSION

FiIiqJ with the Federal Govemment

1. The principal campaign committees of House

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

Clerk of the House, Office of Records and

Registration, 1036 Longworth House Office

BUildiflgl Washington, D.C. 20515. II CPR

104.4(c) 3) and 105.1.

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 in 1984 or from the date of

regtstratlon.t whichever is later) through June 30.

Pre-Primary Report

The report is due 12 days before the primary

election and must be complete as of the 20th day

before the election. If sent by registered or

certified mail, the report must be postmarked no

later than the 15th day before the election.

June 1984

•In the case of an authorized candidate committee, from the date candidate status is established. The committee must report all financial activity incurred by the candidate before

he/she authorized the committee. 11 CFR 101.3

(a) and 104.3(a) and (b). However, activity which

occurred before 1984 must be reported separately.

Monthly Report

The monthly report must be filed by July 20.

It should cover all activity from June I (or from

the closing date of the last report filed in 1984 or

from the date of registration,· whichever is later)

through June 30.

Semiannual Report

The semiannual report is not filed until July

31. It covers all activity from January I (or from

the closing date of the last report filed in 1984 or

from the date of registration,· whichever is later)

through June 30.

WHERE REPORTS ARE FILED

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

and state officials. 11 CFR 108.5.

•

•
FEDERAL ELECTION COMMISSION

The FEC will send notices on reporting requirements and filing dates to individuals known to be

actively pursuing election to this House seat. All

other committees supporting candidates in the

special elections should contact the Commission

for more information on required reports. Call

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

•

Volume 10, Number 6

1984-22 Nonprofit corporation's solicitation of

four membership classes. (Date made

public: April 26, 1984; Length: 6 pages,

plus 55-page supplement)

1984-23 Trade association's endorsement of Pres- • idential candidate announced in house

organs (sent to members and nonmembers) and press releases. (Date made

public: April 27, 1984; Length: I page)

1984-20 Executive's leave of absence to work on

Presidential campaign. (Date made public: April 17, 1984t Length: 7 pages, plus

3-page supplement)

1984-21 Contribution designated through real estate agent from sales commission paid

by seller. (Date made public: April 19,

1984; Length: I page)

1984-18 Services provided by law partnership to

facilitate contributions. (Date made public: April 17, 19841 Length: 1 page, plus 3-page supplement)

1984-19 Mock convention to nominate fictitious

Presidential ticket. (Date made public:

April 17, 1984; Length: 3 pages, plus

5-page supplement)

1984-14 Voter guides and voting records prepared

and distributed by nonprofit corporation;

supplemental request to AO 1983-43.

(Date made public: March 30, 1984;

Length: 1 page)

1984-17 Voter guides and voting records distributed by nonprofit ideological organizaLength:

tions. (Date

3 pages,

made public:

plus l l-page

April 17, 1984;

supplee

ment)

1984-15 National party committee's national media program advocating defeat of opposition Presidential candidate. (Date made

public: April 3, 1984; Length: 2 pages,

plus 2-page supplement)

1984-16 State party's endorsement convention as

separate "election" for purposes of Senate campaign's contribution limits. (Date

made public: April 10, 1984; Length: 1

page, plus 4-page supplement)

AOR Subject

ADVISORY OPINION REQUEm'S

The following chart lists recent requests for

advisory opinions (AORs). The full text of each

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

4

12/6/84

10/25/84

5/24/84

Filing

Date

10/22/84

12/6/84

5/21/84

Mailing

Date

11/26/84

10/17/84

5/16/84

Cl~

Date of

Books

Post-general

Pre-general

Pre-primary

Report

June 1984

ALTERNATE DISPosmON OF ADVISORY

OPINION REQUESTS

In response to AOR 1984-4 (Eligibility of

membership organization's associate members for PAC solicitations), the General

Counsel informed the requester in a letter

issued May 15, 1984, that the Commission

had failed to approve an advisory opinion by

the requisite four-vote majority.

AOR 1984-7 (Corporation's obligation to

make solicitation method available to union)

was withdrawn by its requester on April 12,

1984.

SPECIAL ELECTIONS IN NEW JERSEY

On June 5, 1984, the date of its regularly

scheduled Congressional primary election, New

Jersey will hold a special primary election in its

13th Congressional District. The special primary

election is being held to nominate candidates for

the House seat formerly held by the late Representative Edwin B. Forsythe. A special general

election will be held on November 6, 1984.

The principal campaign committees of candidates

participating in these special elections must file

the appropriate pre- and post-election reports.

All other political committees which support candidates in the special elections (and which do not

report on a monthly basis) must also follow the

reporting schedule detailed below. (Quarterly· reports must also be filed, as appropriate. See

reporting schedule on p, 2.)
FEDERAL ELECTION COMMISSION

•

•

June1984

AOR Subject

1984-24 PAC's purchasing of goods and services

from parent organization. (Date made

public: May 7, 1984; Length: 12 pages)

1984-25 Matching funds for Presidential primary

candidate of several political parties;

ballot access. (Date made publics May 7,

1984; Length: 4 pages)

ADVISORY OPINIONS: SUMMARIES

An Advisory Opinion (AO) issued by the Commission provides guidance with regard to the

specific situation described in the AOR. Any

qualified person who has requested an AO and

acts in accordance with the opinion will not be

subject to any sanctions under the Act. Other

persons may rely on the opinion if they are

involved in a specific activity which is indistinguishable in all material aspects from the activity

discussed in the AO. Those seeking guidance for

their own activity, however, should consult the

full text of an AO and not rely only on the

summary given here.

AO 1984-8: Per Diem Pa.yment to

candidate for campaign Travel

While Representative John J. Duncan's authorized

campaign committee (the committee) may pay

him for his campaign-related travel expenses

(e.g., lodging and food) on a "reasonable per diem"

basis, both Rep. Duncan and the committee must

keep certain specific records relating to the expenses. Moreover, the committee must report the

payments. If the payments, in the aggregate,

exceed $200 for the calendar year, the committee

must itemize them as "travel and subsistence

expenses," Alternatively, if the candidate initially

pays the expenses and later seeks reimbursement

from the committee, the committee should itemize the expenses as "travel and subsistence expense reimbursements." 2 U.S.C. §434 (b); II CFR

104.3(b)(4).

Considered an agent of the committee when he

makes campaign expenditures, Mr. Duncan must

keep records of his travel and subsistence. The

recordkeeping requirements will vary, depending

on when he receives the per diem payments. If

Rep. Duncan receives the per diem payments

before he actually incurs campaign travel expenses, the payments are treated as advances for

his travel and subsistence expenses. See II CFR

102.9(b)(2)•

If Mr. Duncan receives the per diem payments as

reimburse ments after he has incurred and paid for

campaign travel expenses from his own funds, he

5

Volume 10, Num

must keep records in accordance with II 

102.9(b)(2). Commissioner Danny L. McD

filed a dissent. (Date issued: April 20, 

Length: 4 pages, including dissent)

AO 1984-10: Contribution Plan of

Law Parblership with

Federal Contract

Arnold & Porter, a law partnership, ma

establish a political con tribution plan for its 

ners because, as a federal contractor, the 

nership is barred from making contributio

federal candidates on behalf of its partners. 

checks for the contributions were to be dra

the partnership's general account, the plan 

not comply with the rules governing federa

tractors. Partners of a federal contractor 

nership may make con tributions only if:

1. The contributions are made in the nam

the contributing partners; and

2. The con tributions are made by checks 

on the partners' personal checking aec

(See AO 1975-31.)

Under the proposed plan, the partnership int

to make contributions from checks drawn o

general account that the firm uses for its d

day operations. The amount of any contrib

made in the name of a participating partne

to be deducted from the partner's subse

quarterly income distribution. Partners wou

make contributions with checks drawn on 

own personal accounts.

Under the Act and Commission Regulatio

partnership may make contributions, provid

it does not exceed the per election mo

limits for contributions from persons, and 

a ttributes its con tributions to both the pa

ship and the individual partners. However, s

115.4(a) of Commission Regulations provide

"the assets of a partnership which is a f

con tractor may not be used to make contrib

or expenditures in connection with federal 

tions." Although Arnold & Porter's proposed 

tribution plan satisfied the law's require

concerning contribution limits, the partners

prohibited from lmplementirg the plan beca

is a federal contractor and the proposed con

tions were to be drawn on the firm's ac

(Date issued: April 17, 1984; Length: 3 pages

AO 1984-11: Individual's Eligibility for

Primary Matching Funds as

Presidential C8ndidate of

Several Third Parties

Dennis Serrette, an individual who is s

nomination during 1984 as the Presidentia

didate of various independent parties in as 

states as possible, and his principal cam

con
June 1984 FEDERAL ELECTION COMMISSION

committee, Independents for Dennis Serrette,

could become eligible for primary matching funds

in 1984, provided Mr. Serrette met all the other

eligibility requirements of the Primary Matching

Fund Payment Account (the matching fund account). Should Mr. Serrette become eligible for

primary matching funds, the matching payment

period would end either: 1) on the date of his

nomina tion for the Presidency by a state political

party or 2) on the last day of the last major

party's nominating convention, whichever date

comes first. 26 U.S.C. §9032(6); 11 CFR 9032.6.

During the rna tehing payment period, expenses

Mr. Serrette incurs for petition drives conducted

to obtain access to the general election ballot

would eonstitute qualified expenses of his primary

campaign, payable with matching funds. Moreover, once the matching payment period ends, Mr.

Serrette could continue to receive private matchable contributions through December 31, 1984,

provided: 1) he remains eligible for matching

funds, and 2) his primary campaign has net outstanding campaign obligations. 11 CFR parts 9033

and 9034, 9034.1, 9033.5. (While matching funds

received after the matching payment period may

be used to liquidate primary debts, they may not

be used to defray general election expenses. See

26 U.S.C. §S9002(11), 9012(c), 9042(b).)

Establishing Matching Fund Eligibility

Under Section 9033(b)(2) of the matching

fund account, provided all other eligibility requirements are met, a Presidential primary candidate may establish matching fund eligibility by certifyi~ that he or she "is seeking nomination by

a political party to the office of President in

more than one state," Mr. Serrette would satisfy

this requirement by actively campaigning in various primary elections and nominating conventions,

conducted by several parties in several states.

Paying for Ballot Access Expenses

With Matching Funds

Under the matching fund account, qualified

campaign expenses include expenditures related

to the primary campaign that are made during the

matching payment period (see definition above).

26 U.S.C. §S9032(a), 9033, 9038, 9042; 11 CFR

9032.9, 9033 and 9034.4. Consequently, if he established rnatching fund eligibility, ballot access

expenses incurred by Mr. Serrette during the

matching payment period would constitute qualified campaign expenditures, which may be paid

with matching funds. Although these expenses

would be incurred for petition drives necessary to

have his name placed on the general election

ballot, the Commission concluded that they would

constitute legitimate expenditures of Mr.

Serrette's primary campaign. The Commission

based its conclusion on FEC Regulations which

6

Volume 10, Number 6

recognize that, in the case of nonmajor candidates, efforts to qualify for a position on the • general election ballot are similar, in purpose, to

seeking nomination in a primary election or other

nominating process. Thus ballot access expenditures are considered part of the primary campaign

process. II CPR 100.2(c)(4). Furthermore, an FEC

advisory opinion (AO 1975-44) established that,

for third party candidates, the primary campaign

period ends on the date on which the last major

party convention nominates its Presidential candidate. (Mr. Serrette's petition drive expenditures

fall within this period.)

Since Mr. Serrette is permitted to seek eligibility

for matching funds as the candidate of several

third parties, the Commission did not address the

issue of whether he might establish eligibility as

the candidate of a political party formed at a

national convention held by the various parties,

individuals and organizations supporting his candidacy. (Date issued: May 3, 1984; Length: 4

pages)

FECTERMINATES LAROUCHE'S

•

MATCIDNGFUNDEUGllmWTY

On May 17, 1984, the Commission determined

that, as of June 7, 1984, Lyndon H. LaRouche, Jr.,

a 1984 Presidential primary candidate, will no

lorger be eligible for primary matching funds

under the Presidential Primary Matching Payment

Account Act (the matching fund account), The

Commission had certified Mr. LaRouche eligible

for primary matching funds on April 12, 1984,

after his campaign had sa tlsfied all the eligibility

requirements of the matching fund account. 11

CFR Parts 9033 and 9036. Mr. LaRouche became

ineligible for public funds because he received

less than 10 percent of the total popular votes

cast in the May 5th Louisiana primary and the

May 8th Maryland and Ohio primaries. A candidate becomes ineligible for primary matching

funds on the 30th day following the date of the

second consecutive primary in which he/she receives less than 10 percent of the total popular

votes.* The candidate may, however, reestablish

*.Ineligible candidates may continue to re- •

ceive primary matching funds to retire outstanding campaign debts incurred before the last date

of ineligibility and to pay for costs of winding

down their campaigns.
FEDERAL ELECTION COMMISSION

•

•

•

June 1984

eligibility for public funds by receiving at least 20

percent of the total votes in a primary election

held subsequent to the one in which he or she

became ineligible. See 11 CFR 9033.5(b) and

9033.8(b).

The Commission's determination in April that Mr.

LaRouche was eligible for matching payments

followed an initial determination on January 26,

1984, that the LaRouche campaign had failed to

establish eligibility for primary matching funds in

1984.* The Commission's initial ineligibility

determination was based, in part, on the failure of

Mr. LaRouche's 1980 campaign to: a) repay

$54,671.84 in primary matching funds to the U.S.

Tl:easl;lry, as required by an FEC repayment deterrnination, and b) pay a $15,000 civil penalty

included in a conciliation agreement that the FEC

had entered into with the 1980 campaign for

violations of the election law.

In response to the Commission's initial ineligibili~ determination, .M.r. LaRouche's 1980 campaign

paid the $15,000 CIVIl penalty and partially repaid

public funds that the FEC had determined were

outstanding from the 1980 campaign. As a result,

on April 5, 1984, the Commission decided that it

would consider Mr. LaRouche's eligibility for primary matching funds during 1984, provided Mr.

LaR?Uche: a) completes the repayment of the

~Ub~I~ funds,*· an~ ~) signs an affidavit accepting

liability for all CIVIl penalties and repayments

incurred by his 1980 campaign, as attested to in

his 1979 letter of candidate agreements and certifieations.e **

Since the LaRouche campaign complied with all

these conditions during April, the Commission

decided to certify Mr. LaRouche eligible for primary matching funds in 1984.

·For a summary of the FEC's initial ineligibility determination, see p, 7 of the March 1984

Record.

USee p. 11 for a summary of court action on

this matter. ...To become eligible for primary matching

fWlds, a Presidential candidate must sign a letter

of agreement and certifications in which the

candidate and any authorized committee(s) agree,

among other requirements, to pay any civil penalties included in a conciliation agreement entered

into with the FEC and to repay public fWlds to the

U.S. Treasury, if necessary. (See 11 CFR 9033.1

and 9033.2.)

7

Volume 10, Num

LOCAL AND STATE PARTY ORGANIZATIO

EXEMPT AC'I'lVITrnS

This article responds to questions the 

mission has received on the exempt acti

conducted by local and state party political 

mittees and unregistered party organizations

State committees and local party committee

organizations may engage in certain activ

listed below, which benefit federal candidate

are exempt from the definition of contributi

expenditure. This means that the payments d

count against contribution limits or coordi

party expenditure limits. However, party com

tees (already registered with the Commi

must report payments for these activities. 

organizations (not registered with the FEC) 

no reporting obligations, but they must use 

missible funds* to finance exempt activiti

behalf of federal candidates. Note that wh

unregistered, local party organization" s

more than $5,000 a year for exempt activiti

must register and report as a political comm

11 CFR 100.5(c).

1. Voter Drives for Presidential Nominee

. A state or local party committee or or

zatton may conduct a voter registration or 

out-the-vote drive on behalf of its party's P

dential and Vice Presidential nominees. P

banks operated by volunteers may be used i

drive. Payments for voter drive activities ar

considered contributions or expenditures as 

as the party committee or organization f

the following conditions:

No Public Advertising. The party committ

organization may not use public political a

con

*Money which may be used in conn

with, or to influence, federal elections, i.e.

tributions which comply with the election 

contribution limits and which do not come 

prohibited sources such as corporations, 

organizations and foreign nationals.

"An organization responsible for the 

to-day operation of a political party at the 

of city, county, neighborhood, ward, district

cinct .or ~ny other subdivision of a state; o

orgamzatlOn under the control or direction 

state party committee. 11 eFR 100.14(b).
June 1984 FEDERAL ELECTION COMMISSION

Using,· and it may not distribute rnaterials by

direct mail•••

No Prohibited Contributions. The portion of the

payment that is allocable to federal candidates

must be made from funds that are permissible".

under the Act.

No Designated Contributions. The payments must

not be made from funds designated for a particular candidate.

No Punds Prom National Committee. The payments must not be made from transfers made by

the national party committee specifically to fund

the activity; nor may the national committee give

materials to the state or local committee or

organization for distribution. 11 CFR 100.7(b)(IS)

and 100.8(b)(16).

Note that any reference to a candidate for the

U.S. House or Senate must be merely incidental to

the overall activity. Otherwise, the cost that is

attributable to the House or Senate candidate is a

contribution on behalf of that candidate.·"'. 11

CFR 100.7(b) (17), 100.8(b)(I8) and 106.1(c)(3).

2. campaign Materials

A state or local party committee or organization may pay for campaign materials (such as

pins, bumper stickers, handbills or brochures) that

are distributed by volunteers in connection with

activity on behalf of the party's nominees. The

payments are not considered contributions or expenditures if the following conditions are met:

No Public Advertising. The party committee or

organlzation may not use public political advertising,· and it may not distribute materials by

direct mail•••

No Prohibited Contributions. The portion of the

payment that is allocable to federal candidates

must be made from funds that are permissible" ••

under the Act.

·Advertising to the general pubtic through a

broadcasting station, newspaper, magazine, poster, yard sign, outdoor advertising facility (such

as a billboard). 11 CFR 100.7(b)(15)(i), 100.7(b)

(17)(0 and 110.11(a)(1).

,"Direct mail is a mailing by a commercial

vendor or by using commercial lists. 11 CFR

100. 7(b)(l5)(i) and 100. 7(b)(l7)(i).

...Contributions which comply with the

election law's contribution limits and which do not

come from prohibited sources such as

corporations, labor organizations and foreign

nationals.

....An unregistered party organization (either

state or local) must register as a political committee if its contributions and expenditures to

influence federal elections exceed $1,000 per

year. 11 CFR 100.5(c).

8

Volume 10, Number 6

No Designated Contributions. The payments must

not be made from funds designa ted for a particular candidate.

No Funds From National Committee. The payments must not be made from transfers made by

the national party committee specifically to fund

the activity; nor may the national committee give

materials to the state or local committee or

organization for distribution. 11 CFR 100.7(b)(1S)

and 100.8(b)(16).

3. Slate Card/Sample Ballot

A state or local party committee or organization may prepare and distribute a slate card,

sample ballot, palm card (or other printed list)

naming three or more candidates for any public

office. The payments are not considered contributions or expenditures if the following conditions

are met:

No Public Advertising. No public political advertising. may be used in displaying the list, but it

may be distributed by direct mail.

No Prohibited Contributions. The portion of the

payment that is allocable to federal candidates

must be made from funds that are permissible.··

under the Act even though the payments are not

considered contributions or expenditures. II CPR

I 00.7(b)(9) and 100.8(b)(I0).

Information Restricted. The content of the list is

limited to the identification of the candidate

(pictures may be used), the office or position

currently held, the elective office sought and

party affiliation. Certain voting information, such

as time, place and instructions on voting a

straight party ticket, may be given. The list may

not include, however, additional biographical data

on candidates, their positions on political issues or

statements on party philosophy. AOs 1978-9 and

1978-89.

Copies of these notices are available in the Public

Records Office.

Notice Title

1984-6 Filing Dates for New Jersey Special Primary and General Elections (49 Fed.

18621, May I, 1984) --

1984-7 11 CFR Part 114: Solicitation ofIndirect

Members by Federated Cooperatives;

Advance Notice of Proposed Rulemaking

(seeks additional comments on rulemaking petition filed by National Council of Farmer Cooperatives) (49 Fed.

20831, May 17, 1984)

•
FEDERAL ELECTION COMMISSION

PUBLIC APPEARANCES

Volume 10, Num

cont

FE~sI984LEGmLA~

RECOMMENDATIONS

On March 15, 1984, the Commission t

mitted to Congress and the President 19 leg

tive recommendations affecting the FEC's 

ministration of the Federal Election Cam

Act (the Act). The Commission is statut

mandated to submit recommendations each 

"for any legislative or other action the Com

sion considers appropriate••••" 2 U.S.C. §4

(9).

In forwarding the recommendations, FEC C

man Lee Ann Elliott sta ted that their pri

value is to aequaln t Congress and the public 

difficulties the Commission has encountere

administering the election law. "While prep

these recommendations," Chairman Elliott 

plained "the Commission was less concern

bout fi~ding perfect solutions than with def

problems and identifying possible solutions

cluded among the Commission's 19 recomm

tions were suggestions that Congress:

-- Reaffirm its intent that draft comm

are "political committees" subject to 

reporting requirements, prohibitions and 

its of the Act.

Give the Commission authority to grant 

eral waivers or exemptions from the 

reporting requirements for certain categ

of political committees.

Clarify the nature and scope of the Com

sion's authority to determine the insol

of political committees and the liquidati

their assets.

Consider modifying the statutory lang

pertaining to "reason to believe" findin

enforcement cases in order to reduce 

confusion sometimes experienced by resp

ents, the press and the public.

Clarify that a political committee no

thorized by a candidate may not use 

candidate's name in any "project" or 

raising activity.

Clarify whether volunteer activity i

tended to include professional service

nated primarily for fundraising purposes 

er than for actual campaigning.

Make the FEC the sole point of entry f

disclosure documents filed by federal c

dates and political committees.

Provide a separa te spending limit for 

expenditures made by local party comm

in Presidential elections.

Eliminate state-by-state spending limit

publicly funded Presidential primary c

dates.

9

Walsh College of Accountancy

and Business Administration

Troy, Michigan

Paul Sullivan, Executive Assistant

to Chairman Lee Ann Elliott

Roberta Werfel, Chief,

Public Communications

Pam Brown, Senior Reports Analyst

State Board of Elections

Workshop

Richmond, Virginia

Chairman Lee Ann Elliott

Louise Wides, Deputy Assistant

Staff Director, Information

Kathlene Beuzard, Public Affairs

Specialist

Dan Zoller, Public Affairs

Specialist

6/22/84

6/29/84

6/12/84 Birch Wathen School

New York, New York

Charles N. Steele,

General Counsel

6/14/84 The American University

Washington, D.C.

Commissioner Joan D. Aikens

6/13/84 Women in Government Relations,

Inc.

Washington, D.C.

Chairman Lee Ann Elliott

6/6/84 University of Hartford

West Hartford, Connecticut

Chairman Lee Ann Elliott

6/8/84 The National Chamber Litigation

Center

Washington, D.C.

Chairman Lee Ann Elliott

6/8/84 Investigative Reporters and

Editors

National Conference

Miami, Florida

Kent Cooper, Assistant Staff

Director, Public Disclosure

Fred Eiland, Press Officer

Lawrence M. Noble, Deputy

General Counsel

June 1984

•

•

•
FEDERAL ELECTION COMMISSION

Audits. The FEOs audit capabilities, which were

reduced during 1982 and only partially restored

during 1983, should be rebuilt, Commissioner

McGarry maintained. While the FEC audit staff

"will be almost exclusively involved in the Presidential public funding program early in 1985," the

Commissioner said the law requires the Commission to initia te Congressional eudits (for cause)

within six months after the election. ''Even with

be only

four additional

two-thirds

audit

of

positions

that maintained

our audit staff

in 1980-

will 

81," the Commissioner observed.

ResoUl'Cesfor Administering the Law

Commissioner McGarry testified that, to ful- 

fill its statutorfiy mandated duties, the FEC will

need adequate funding during FY 1985 for the

following functions:

Computer Services- Commissioner McGarry testified that the "explosive growth in campaign

spending" since 1976 has placed a corresponding

burden on the FEC's disclosure function. In renewing its computer contract, the FEC must therefore "obtain the most current and efficient technology available" to process the large volume of

reports filed with the Commission. Moreover, the

agency wnI need funds to restore computer functions that were previously reduced because of

budget cuts as, for example, computer entry of

statutorily mandated information on contributions

over $200.

•

Volume 10, Number 6

Enforcement of the Law. Commissioner McGarry

noted that the FEC's "compliance program reinforces the disclosure requirements and seeks to

remedy violations of the law •••• Staff positions

in the General Counsel's Office should be increased during the Presidential election year in

response to the increased legal work generated by

the growth in the number of political committees

filing reports and in the number of transactions

being reported." The FEC also seeks additional

funding to undertake a comprehensive review of

its regulations.

Presidential Elections. Commissioner McGarry

emphasized the need for additional funds to adequately administer the Presidential I"lublip. funding

program. "By far, the greatest added responsibility the Commission faces in the election cycle

revolves around the Presidential primary and general elections," he said. The certification of funds

to qualified Presidential candidates and the party's Presidential nominating conventions, as well

as mandatory audits of public funding recipients,

"represents a major undertaking, beginning in

19B4 and eontlnuirg well into 1985."

National Clearinghouse on Election Administration Projects. Commissioner McGarry requested

funds that would allow the Clearinghouse to develop voluntary standards for voting systems as a

10

June 1984

Examine the application of contribution limits to a candidate's immediate family members.

Define the extent to which foreign nationals

may participate, if at all, in any American

elections.

Prohibit persons from fraudulently representing themselves as agents of candidates or

political parties for the purpose of soliciting

contributions which they do not forward to

the candidates or parties or use on their

behalf.

Addressing the difference between the FEC's

$13.648 million budget request for FY 1985 and

the Administration's corresponding $10.230 million proposal for the Commission, Commissioner

McGarry said that the Administration's recommendation is "inconsistent with the Federal Election Commission's compelling need for alternative

quarters, as well as .our unique responsibilities in

1984 and 1985 [resulting from the Presidential

elections]. We assume that, in making the proposal, the Administration actually intended to defer to Congress as to our justifiable needs."

FEC TESTIPIES ON FY 1985 BUDGET

During four Congressional hearings held in

March and April, Commissioner John Warren

McGarry, Chairman of the FEC's Finance Committee, requested a $13.648 million budget for the

Commission for fiscal year (FY) 1985. Accompanied by FEC Chairman Lee Ann Elliott, Commissioner Joan D. Aikens, FEC Staff Director

John Surma and General Counsel Charles Steele,

Commissioner McGarry testified before four Congressional Committees: the Subcommittee on

Treasury, Postal Service and General Government

of the U.S. Senate Committee on Appropriations;

the Senate Committee on Rules and Administration; the House Committee on Appropriations'

Subcommittee on Treasury, Postal Service and

General Government and the Task Force on Elections of the Committee on House Administration.

Altemative Offiee Space for the FEe

According to a GSA facilities study made

available to the FEC's Congressional oversight

committees, renovation of the FEC's present

space would be more expensive than relocation of

the agency, Commissioner McGarry stated. The

study indicated that the present office space had

become inefficient and unsafe through extensive

use by the public and FEC staff, as well as by

deferral of fundamental building maintenance. "In

short," Mr. McGan-y said, "the Commission has no

choice or control over this matter •••• While our

request: includes $850,000 for this purpose, the

additional cost: in 1985 will actually be closer to

$1.2 million."
FEDERAL ELECTION COMMISSION Volume 10, Num

suggested an election-influencing purpose. (T

together, these provisions prohibit corpora

labor organizations and incorporated membe

organizations from distributing to the ge

public voter guides that favor one candida

political party over another.)

In response to the FEC's decision (AO 1983

USDC asks the court to declare that:

Expenditures USDC proposes to make fo

voter guides are not proscribed by FEC R

lations; and

The Commission, in issuing the opinio

USDC, erred in its construction and app

tion of FEe Regulations to the prop

voter guides.

Altematively, USDC asks the district cou

certify the following constitutional questio

an en banc court of appeals:

Whether 2 U.s.C. §441b and former 11 

114.4(c)(3) violate USDC's First Amend

rights by prohibiting USDC from comp

and distributing to the general public m

rials which address public issues, as w

federal candidates' positions on those issu

Whether these provisions are unconstitu

ally vague under the First and Fifth Am

ments, to the extent that they pros

USDC's proposed expenditures.

Whether section 441b abridges First and 

Amendment rights by discriminating bet

incorpora ted organizations like USDC an

press. (Costs incurred by news media c

ra tions for bona fide coverage of pol

events are exempt from the election 

broad prohibition on corporate expendit

provided the news corporation is not o

or controlled by any political party, pol

committee or eandidate.)

Furthermore, after a full panel of the ap

court has heard USDC's constitutional quest

USDC asks the court to:

Declare that 2 U.S.C. §441b and 11 

114.4(c)(3) are unconstitutional, null and 

on their face and as applied to USDC's 

posed activities;

Declare that expenditures USDC propos

make for voter guides and voting record

described in its advisory opinion reques

supplemented, are not subject to the ele

law and Commission Regulations; and

Enjoin the FEC from enforcing or apply

U.S.C. §441b and 11 CFR 114.4(c)(3

USDC's proposed communication activitie

U.S. District Court for the Northern Distri

New York, Docket No. 84-CV-450, March 

1984.

11

June 1984

crnZENS FOR LaROUCHE v. FEe

On January 31, 1984, the U.S. Court of

Appeals for the District of Columbia Circuit

issued an order dismissing a petition that Lyndon

H. LaRouche, Jr., a publicly funded candidate for

the Democratic Party's Presidential nomination in

1980, and Citizens for LaRouche, his principal

campaign committee, had filed with the court on

January 11, 1983. (Citizens for LaRouche v. FEC;

Civil Action No. 83-1050) Pursuant to 26 U.S.C.

§9041, the LaRouche campaign had asked the

appeals court to review a final repayment determination that the FEC had made on December 16,

1982. The court's action affirmed the FEC's determina tion that the LaRouche campaign had to

repay $54,671.84 in primary rnatching funds to the

U.S. Treasury.

NEW LITIGATION

USDC v.FEC

The United States Defense Committee

(USDC) asks the U.S. District Court of the Northern District of New York to take action with

respect to the Commission's Advisory Opinion

1983-43.

In closing, Commissioner McGarry reiterated the

rationale cited by both Congress and the courts

for an effectively administered FEC. "Almost as

important as the material benefit to the electoral

process which flows from our efforts is the contribution made by a credible Federal Election

Commission to enhancing the general public's

faith in the integrity of the American political

system."

follow-up to a Congressionally mandated study on

•

their need and to restore other research programs. He underlined the direct benefit of these

programs to "those state and local election officials who are essential to proper adrninistration of

federal elections."

In that opinion, issued to USDC on January 26,

1984, the Commission said that expenditures for

certain voter guides which USDC proposed to

compile and distribute to the general public were

prohibited by 2 U.S.C. §441b and former 11 CFR

114.4(c)(3)* because, as drafted, their language

• *Under the FEC's revised regulations, prescribed in March 1984, expenditures for voter

guides are govemed by 11 CFR 114.4(b)(5). During

April, USDC requested a second opinion based on

the new regUlations (AOR 1984-14).
Official Business

FEDERAL ELECTION COMMISSION

•

•

Volume 10, Number 6

Bulk Rate Mail

Postage and Fees Paid

Federal Election Commission

Permit Number G-31

9. Texas Democratic Party -- Federal Account

(final audit report released November 14,

1983)

10. Cork -- Nonconnected Political Committee

(final audit report released November 21,

1983)

11. Committee for Congressman R. V. Dellums

(final audit report released November 28,

1983)

12. Oklahoma Republican State Committee (final

audit report released December 1, 1983)

13. Comm ittee on Letter Carriers Political Education (final audit report released December

20, 1983) .. 14. Michigan People for Jim Dunn (final audit

report released December 20, 1983)

15. General Telephone and Electronics Corporation Good Government Club (final audit report released January 17, 1984)

16. Utah Republican Party -- Federal Account

(final audit report released February 3, 1984)

17. Webb Franklin for Congress Committee (final

audit report released February 3, 1984)

18. Californians for Better Leadership (final audit report released February 14, 1984)

19. Monterey County Republican Central Committee (final audit report released February

22, 1984)

20. Pensioners Action Fund (final audit report

released March 26, 1984)

21. 1982 Victory Fund (final audit report released

April 11, 1984) .. 22. Rhode Island Republican Campaign Committee (final audit report released May 3, 1984)

June 1984

FEDERAL ELECTION COMMISSION

1325 K Street, N.W.

Washington, D.C. 20463

AUDITS RELEASED

TO THE PUBIJC

The following is a chronological listing of

audits released by the Commission between August 18 1983, and May 3, 1984. The audit reports

are ava'Uable to the general public in the Public

Records Office.

1. Democratic State Central Committee --

Federal Account (final audit report released

August 18 1983)

2. Friends of Peyser (final audit report released

August 23, 1983) . . .

3. Mid-America Conservative PAC (final audit

report released September 12, 1983)

4. Don Mills for Congress -- Principal Campaign Committee; Kentuckians for a Democratic Congress -- Authorized Joint Fundraising Committee (final audit report released September 12, 1983) . .

5. Tony Guglielmo for Congress Committee (flnal audit report released October 13, 1983)

6. Continental Telecom, Ine., PAC (final audit

report released October 18, 1983) . .

7. Steve Joachim for Congress Committee (fmal

audit report released October 25, 1983) .

8. West Virginia Republican State Executive

Committee (final audit report released November 4, 1983)