FEC NOTICES

its agent to‘ make expenditures on behalf of its Presiden-
tial nominee from the National Committee's allotment
of $3.2 million. No such expenditures may be made,
however, without the National Committee's affirmative
designation. The section of the statute authorizing State
and local party committee expenditures on behalf of
Senate and House general election races does not contain
a similar allowance on behalf of the Presidential general
election.

3. $1,000 Presidential Expenditure: In addition, the FEC
has approved a proposed regulation permitting any
State, county, city or congressional district party com-
mittee (but no other local party unit) to spend up to
$1,000 to further the general election of its Presidential
nominee, This $1,000 expenditure may be used for any
type of communication and may also benefit the party's
other nominees. In its recent letter, the FEC emphasized,
however, that the $1,000 expenditure is not allocable.
“The allowance of $1,000 may not be considered as part
of an allocation of costs in expenditure(s) totalling more
than $1,000.” While the $1,000 expenditure does not
count against any contribution or expenditure limit, it
may trigger reporting requirements.

(Continued from p. 3)

CONTRIBUTIONS TO AND FROM
AFFILIATED COMMITTEES

On August 30, 1976, the Commission adopted a policy
that a group of affiliated committees is considered one poli-
tical committee for purposes of receiving and making con-
tributions. In a policy memorandum, the FEC stated that
“an individual who has given $5,000 to one committee of a
group of affiliated committees,” may not give “any addi-
tional money to any of the other affiliates. . . .”” The Com-
mission also indicated that a “political committee which is
not a multi-candidate committee, but which is affiliated
with a multi-candidate committee. . should be permitted to
contribute more than $1,000 per candidate per election.”

FEDERAL ELECTION COMMISSION

1325 K STREET, NW
WASHINGTON, DC 20463

OFFICIAL BUSINESS

In a related statement, the Commission said that unlimited
transfers are permitted among committees which are affil-
iated with each other or to a common parent organization.

FEC LISTS
NON-FILERS

On September 1 and September 23, the FEC published
the names of 20 House and Senate candidates and their
principal campaign committees that failed to file the
required “ten-day pre-election report” on their campaign
finances in primaries held between Aug. 3 and Sept. 14.
Commission publication of non-filers is required by law.
The Commission does not release these names, however,
until after it has sent non-filing candidates or their principal
campaign committees three different notices reminding
them of their reporting obligations and urging compliance.

A “prior notice” is mailed 21 days before the primary date
to all candidates whose names are on the ballot in their
respective States. The second notice, a mailgram sent only
to committees and candidates whose reports have not been
received eight days before the primary, states that the
Commission has “reason to believe” that the candidate or
committee is in violation of the reporting requirements.
The third and final_notice, mailed to those whose reports
are not filed six days before the primary, states that the
Commission has “reasonable cause to believe” that they
are in violation, and that ‘‘failure to respond may subject
[the candidate or committee] to. ..publication of [the
candidate or committee‘s] name on a list of non-filers.””

In addition to publishing the names of non-filers, the FEC
has the authority to undertake further enforcement action
under the statute, including civil court enforcement and
imposition of civil fines.

POSTAGE AND FEES PAID

Pa

US.MAIL
—



1325 K Street N.W., Was

Volume 2, No, 8
IN THIS ISSUE

Pre-Election Report Due October 23
FEC Notices on Reporting and Registration
FEC Notices on Donations and Expenditures

Computer Begins to Tell All
FEC Lists Non-Filers

THE FEDERAL ELECTION

COMMISSION

=aCORID

October 12, 1976

POWN=

PRE-ELECTION REPORT DUE OCTOBER 23

. WHO

All candidates for election to Federal office in the
November 2 general election and all committees supporting
such candidates (including political committees previously
filing monthly reports) and all persons making “indepen-
dent expenditures” in excess of $100 in this reporting
period on behalf of a clearly identified Federal candidate
are required to file a pre-election report. This pre-election
requirement applies to all Federal candidates in the general
election and all political committees which support them,
regardless of how much they have raised or spent to in-
fluence Federal elections,

WHAT

Pre-election reports must cover all receipts and expendi-
tures from the date of the last report through October 18,
1976. If a candidate or committee has previously waived
its quarterly reporting requirement by indicating on a
postcard (FEC Form 3a) that it did not raise or spend more
than $1,000 in a quarter, its pre-election report must cover
all transactions since its last report, or, if no report was
filed in 1976, since January 1, 1976,

DATES

Pre-election reports must be postmarked by midnight
October 21, if sent by registered or certified mail. Reports
are due on October 23, The Commission strongly recom-
mends, however, that all reports be sent by registered or
certified mail so that candidates and committees will have
proof of mailing for their records.

FORMS

The pre-election report may be filed on one of three
different forms. Any principal campaign committee which
has not received contributions or made expenditures in
excess of $50,000 per election may file its report on FEC
Short Form 6, provided that the candidate has not
authorized any other campaign committee. All candidates
and other political committees must file their reports on
FEC Form 3. (FEC Form 3a, the postcard, may not be used
for the pre-election report.)

Political committees disclose independent expenditures on
FEC Form 3, All other persons making independent expen-
ditures in excess of $100 must report all independent
expenditures on FEC Form 5.

SPECIAL PROCEDURE
FOR PRINCIPAL CAMPAIGN COMMITTEES

With regard to the pre-election report alone, the princi-
pal campaign committee may file a consolidated “summary”
report (Form 3b) without including the individual reports
of the candidate and other authorized campaign commit-
tees (normally required to be filed along with the principal
campaign committee’s report), as long as the following
procedures are followed:

1. Each authorized committee, in addition to submitting its
report to the principal campaign committee, must also
file a copy of its report with the Federal government by
the October 23 filing date; and

2. The principal campaign committee must subsequently
file a complete consolidated report (including all indivi-
dual reports of authorized committees and candidate)
no later than October 28 (five days before the election),

(Continued on p. 3)



FEC NOTICES ON REPORTING AND REGISTRATION

AFFILIATIONS REQUIRED

On September 20, 1976, the FEC initiated a special
inquiry into which political committees are “affiliated”
and, therefore, subject to special combined contribution
restrictions, Under the 1976 amendments to the campaign
law, “affiliated committees” (i.e., those which are establish-
ed, financed, maintained or controlled by the same corpora-
tion, labor organization, person or group of persons) may
collectively make contributions up to the statutory limit
permitted a single committee: $1,000 per candidate, per
election; or, in the case of “multicandidate committees,”
$5,000 per candidate, per election.

In a special letter, the FEC asked chairmen of all non-
Party political committees to report their committee affilia-
tions. FEC Chairman Vernon Thomson said, “The Commis-
sion wants to identify which committees are not aware that
they are [collectively] subject to the single contribution
limit, in order to help these committees avoid improper
contributions.” Identification of committee affiliations is
also essential to the Commission’s maintenance of an
accurate centralized index on contributions required by
law. The Commission will publish updated versions of the
index in the Federal Register on a continuing basis. Copies
may be obtained from the Commission upon request.

REPORTING INDEPENDENT EXPENDITURES

In mid-September, the FEC sent a “Notice of Indepen-
dent Expenditures Reporting” to all candidates and politi-
cal committees. The notice stated that, under the Federal
Election Campaign Act, any person who makes “‘indepen-
dent expenditures” expressly advocating the election or
defeat of a clearly identified Federal candidate, aggregating
in excess of $100 during a calendar year, “must file with
the Commission a proper report disclosing all independent
expenditures and itemizing each [one] in excess of $100.”
This itemization must include the identification of the
candidate on whose behalf the “independent expenditure”
was made, the purpose, the date and amount of the expen-
diture, the identity of the candidate, the office sought and
whether the expenditure was in support of or in opposition
to the candidate. Additionally, every person reporting an
“independent expenditure” must certify, under penalty of
perjury, that the expenditure “was not made with the
cooperation, consultation or coordination with the candi-
date or his or her agent.” If the expenditure does not meet
this standard of “independence,” it is considered a contri-
bution-in-kind and is, therefore, subject to the contribution
limitations and restrictions of the law.

New Reporting Forms: The Commission has also issued

two new forms for reporting independent expenditures.

1. A political committee must report independent expendi-
tures on FEC Schedule E. It must be signed by the com-
mittee’s treasurer, and it must be notarized. All indepen-
dent expenditures must be reported in any reporting
period in which they were made.

2. Any person other than a political committee must file
both a report on FEC Form 5 and a separate statement
signed by the person making the expenditure, certifying
that the independent expenditure was not made in coop-
eration, consultation or coordination with the candidate
or his or her agent. This separate statement must be
notarized. Reports, which need not be cumulative, are
required only for those reporting periods in which inde-
pendent expenditures exceeded $100.

Right to File Complaint: The Commission advised all per-
sons of their right to file a complaint against any person
who has failed to report his independent expenditures.
Under the law, these complaints are to be signed, sworn to
and notarized and should describe the allegedly unreported
“independent expenditure” in as much detail as possible.

REPORTING THE PURPOSE OF EXPENDITURES

In a special letter, the FEC urged candidates and their
principal campaign committees to describe more fully the
purpose of their itemized expenditures and to maintain
back-up materials for all expenditures. The letter stated
that, “‘as required by the statute, the ‘particulars’ of each
over-$100 expenditure must be reported. Entries such as
‘advance to fieldman’ or ‘travel’ are not sufficient to meet
the statutory requirements. An advance to staff is not an
expenditure but rather an intra-committee transfer. The
actual use to which the advance is put must be itemized.”
For example, if a fieldman receives a $500 advance and
spends $250 to rent a hall, $125 on posters and $125 on
meals and lodging, each of these expenditures must be
specifically itemized. Expenditures of $100 or less need
not be itemized, but must be aggregated and reported as
unitemized expenditures.

Back-up material for all expenditures must be maintained.
In its letter, the Commission noted that some committees
and candidates are not maintaining receipted bills or in-
voices as backup for expenditures. The proposed regula-
tions permit committees to keep a cancelled check and a
contemporaneous memorandum instead of a receipted bill,
but only if a receipted bill is not available.

Jr., Clerk of the House of Representatives, Ex Officio.

The RECORD is published by the Federal Election Commission, 1325 K Street, N.W., Washington, D.C. 20463.
Commissioners are: Vernon W. Thomson, Chairman; Thomas E. Harris, Vice-Chairman; Joan D. Aikens; William L.
Springer; Neil Staebler; Robert O. Tiernan; Francis R. Valeo, Secretary of the Senate, Ex Officio; Edmund L. Henshaw,

For more information, call 382-4733 or toll free 800-424-9530.



FEC NOTICES ON
DONATIONS AND
EXPENDITURES

CONTRIBUTIONS TO
SINGLE CANDIDATE COMMITTEES
MAKING INDEPENDENT EXPENDITURES

In a revised policy statement issued on September 23,
1976, the FEC stated that contributions made to a single
candidate committee which makes independent. expendi-
‘tures on behalf of only one candidate are limited to $1,000
per candidate, per election (or $5,000 if the donor is a
multi-candidate committee). This policy applies to all
elections, including the Presidential general elections.
The Commission said that even though Presidential nomi-
nees who accept public funds may not accept any contribu-
tions, a donor may contribute up to $1,000 (or $5,000) to
an unauthorized committee only making independent
expenditures on behalf of a single Presidential nominee. In
addition, since such a contribution “‘is made for the pur-
pose of influencing a Federal election” of a specific candi-
date, it counts against the individual donor’s contribution
ceiling of $1,000 per candidate, per election (or in the case
of multi-candidate committees, $5,000 per candidate, per
election).

Thus, for example, if an individual contributor has already
given $500 to a candidate, he or she could only contribute
up to $500 to’a single candidate committee makirig inde-
pendent expenditures only on behalf of that same candi-
date. The Commission stated that a person may, however,
contribute up to $5,000 to a political committee support-
ing several candidates and also contribute up to the maxi-
mum limit to one of the candidates supported by that
committee, as long as the contributor had no “knowledge
that a substantial portion of the contributor’s funds will be
contributed by the committee to that candidate or expend-
ed on behalf of the candidate.”

NO PARTY CONTRIBUTIONS
TO PRESIDENTIAL NOMINEES

On September 21, 1976, the Federal Election Commis-
sion advised State and local party organizations that under
the Federal Election Campaign Act, as amended, no party
unit may make any contributions (money or in-kind) to
Presidential candidates accepting Federal money in the
general elections (Ford and Carter). In addition, with limited
exceptions, party organizations are prohibited from making
expenditures on behalf of the Presidential nominees. For
example, all references to the Presidential nominees in
party advertising, brochures, mailings, etc. are barred, with
three exceptions:

1, Slate Card Exemption: According to the FEC letter, the
statute specifically makes an exemption for “slate cards
or sample ballots identifying at least three candidates for
any public office.” Presidential and Vice-Presidential
candidates may be included on such a list.

2. National Party Committee Funds: The National Com-
mittee may designate a State or any local party unit as

(Continued on p. 4)

GPO 909-230

COMPUTER BEGINS
TO TELL ALL

$100.m
$77.9 m
$75.1 m
Fy
SL
a
3
2
&
FI
=
Public
Funds
$24.1m
Receipts Expenditures

Presidential Pre-Nomination Financing 1976

{Expenditures are gross figures, not the actual cost
of campaigning. The figures include disbursements
which must be reported but are not subject to the
Presidential primary campaign limitations, such as
the repayment of loans and cash brought forward
from previous campaigns.]

This graph is one of several contained in a summary
accompanying the first comprehensive printout made by
the Commission’s new computer system. This compilation
and analysis of campaign finance reports reveal Presidential
candidates’ pre-primary receipts and expenditures from
January 1, 1975 through September 12, 1976. Indexes to
this activity are issued as a daily printout and as a periodic
summary, the “Disclosure Series,’ available in printed or
microfilm form from the FEC.

PRE-ELECTION REPORT

{Continued from p. 1 )

PRE-ELECTION CONTRIBUTIONS AND INDEPENDENT
EXPENDITURES MADE AFTER BOOKS ARE CLOSED

If a contribution of $1,000 or more is received between
two and 15 days before the election, the recipient candi-
date or committee must report it, by telegram or hand-
delivered letter, within 48 hours after it is received. An
“independent expenditure” of $1,000 or more made
between two and 15 days before the election must be
reported by the person making the expenditure within 48
hours after it is made.