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Volume 7, Number 1

THE FEDERAL ELECTION

COMMISSION

"

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

January 19

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NONELECTION YEAR

REPORTING SCHEDULE

During 1981, a nonelection year, pol itical committees

are generally required to report on a monthly, quarterly or

semiannual schedule, depending on the type of political

committee. The following paragraphs explain the reporting

schedule for the various categories of filers.

1. 1980 Ouarterly Filers

Committees that filed on a quarterly basis during 1980

are required to file two semiannual reports during 1981.

The first report, covering January 1 through June 30,

1981, must be filed by July 31, 1981. The second

report, covering July 1 through December 31, 1981,

must be filed by January 31, 1982. 11 CF R 104.5(a)

(2)(i).

2. 1980 Authorized Presidential Monthly Filers

Authorized Presidential committees that reported on a

monthly basis during 1980 (i.c., committees which had

received or spent in excess of $100,000) may opt to

either:

continue filing monthly reports, filed by the 20th of

each month and covering all reportable financial

activity of the preceding month {e.q., the February

report would cover activity from January 1 through

January 31, 1981); or

change to a quarterly reporting schedule. (The FEC's

Reports Analysis Division requests that committees

that change from a monthly to a quarterly reporting

schedule notify the Commission of their intention in

writing.) Quarterly reports must be filed by April 15,

July 15 and October 15, 1981; the fourth quarter

(year-end report) must be filed by January 31, 1982.

11 CF R 104.5(b) (2). The quarterly report covers all

reportable financial activity for the preceding quarter.

3. 1980 Unauthorized Committee Monthly Filers

All other political committees (i.e., committees not

authorized by candidates) that filed on a monthly basis

during 1980 may opt to either:

continue filirig monthly reports (see abovel; or

change to a semiannual reporting schedule (see abov

Note: Monthly filers that decide to file semiann

reports during 1981 must notify the Commission 

thei r intention by a letter submitted with their 19

year-end report (or the next report due at the time th

decide to change filing frequency). A committee m

not change its filing frequency more than once dur

1981.11 CFR 104.5(c).

4. 1980 Semiannual Filers

Committees that filed semiannual reports during 19

(Le., committees authorized by candidates seeking e

tion in a year other than 1980 or inactive committe

with outstanding campaign debts) must continue 

report semiannually (see above).

5. 1981 Special Election Filers

Authorized committees of candidates running in spe

elections in 1981 must file pre-prirnarv and pre'gene

election reports, a post-general election report a

quarterly reports. All other political committees wh 

support candidates in 1981 special elections (and wh

do not report on a monthly basis) must also file pre- a

post-election reports in addition to their semiann

reports. The Office of Public Communications w

notify authorized committees of their reporting requ

ments. Other committees should contact the Office 

more information (see below).

Forms and additional information will be sent to all re

tered committees. Questions and requests for forms sho

be addressed to the Office of Public Communicatio

Federal Election Commission, 1325 K Street, N.W., Wa

lnqton, D.C. 20463; or call 202/523·4068 or toll free B

424·9530.
ADVISORY OPINION REQUESTS

Advisory Opinion Requests (AOR'sl pose questions on

the appl ication of the Act or Commission Regulations to

specific factual situations described in the AOR. The following chart lists recent AOR's with a brief description of

the subject matter, the date the requests were made publ ic

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

each AOR is available to the public 'In the Commission's

Office of Public Records.

Date Made No. of

AOR Subject Public Pages

1980·139 Cooperative's solicitation of 11/21/80 5

stockholders, executive and

adrrunistrarive personnel

through magazine distributed

to wider audience.

1980-140 Senator's income for periodic 12/8/80 4

radio commentary treated as

hrmor ar iurn ,

1980·141 JOint fundraising by trade 12/17/80 3

association PACand PACs

of state and local affiliates.

1980·142 Multifunction fundraising 12/17/80 4

(dues and contributions) by

trade association PAC and

PACsof its state and local

affiliates.

1980-143 Debts of candidate's 1978 12/18/80 2

campaign commi tree assumed

by his 1980 campaign.

ADVISORY OPINIONS; SUMMARIES

An Advisory Opinion (AO) issued by the Commiss

provides guidance with regard to the specific situat

described in the AOR. Any qualified person who 

requested an AD and acts in accordance with the opin 

will not be subject to any sanctions under the Act. Ot

persons. may rely on the opinion if they are involved i

specific activity which is indistinguishable in all mate

aspects from the activity discussed in the AO. Those se

ing guidance for their own activity, however, should cons

the full text of an AO and not rely only on the $U mm

given here,

AO 1980-116: Independent Political Committee

Aided by Paid Presidential

Campaign Worker

If a person who is paid to make speeches on behalf o

Presidential committee assists Americans for a Responsi

Presidency (ARPl, an independent political committ

ARP may not make independent expenditures either 

the Presidential candidate or against his opponents, rega

less of whether:

1. ARP reimburses the campaign worker for making. 

speeches;

2. The campaign worker has any express or impl ied auth

ity to make or direct expenditures by the President

candidate's authorized committees; or

3. The campaign worker has consulted with the President

candidate on campaign strategy.

ARP is precluded from making the independent expen

tures because Commission Regulations presume an expen

ture is not "independent" if it has been made by or throu

any"... person who is, or has been receiving ... cornpe

sation or reimbursement from the candidate." 11 CF

109.1(a) and 109.1(b)(4l(i). (Date Issued: November 

1980; Length: 4 pages)

AO 1980-118: Solicitation of Stockholders

Who Granted Limited,

Irrevocable Proxies

The Exchange Community Action II Pol itical Act

Committee, the separate segregated fund of the Exchan

International Corporation (EtC), may solicit with

limit E IC stockholders even though they have gran

certain irrevocable, limited proxies to another individual.

Commission RegUlations define as a solicitable stockhol

" ... a person who has a vested beneficial interest in sto

has the power to direct how that stock shall be voted, i

is voting stock; and has the right to receive dividend

(emphasis added) 11 CFR 114.1 (h). Assuming the E

stockholders meet the other requirements of 11 C

The RECORD is published by the Federal Election Commission, 1325 K Street, N.W., Washington, D.C. 20463. Commissioners are: John Warren McGarry, Chairman; Frank P. Reiche, Vice Chairman; Joan D. Aikens; Thomas E. Harris;

Robert O. Tiernan; J.S. Kimmitt, Secretary of the Senate, Ex Officio; Edmund L. Henshaw, Jr., Clerk of the House of

Representatives, Ex Officio. For more information, calf 202/523-4068 or toll-tree 800/424-9530.

2
114.1 (h), they are soltcitabte stockholders because they

have retained their right to vote on all but two stockholder

matters. The two matters specifically delegated to the

proxy holder for a four-year period are: the right to vote on

procedural matters submitted for a stockholder vote at

annual stockholder meetings and the right to vote for the

election or removal of members of EIC's Board of Directors. Commissioners Thomas E. Harris and Robert O.

Tiernan filed a dissenting opinion. (Date Issued: December

4,1980; Length: 5 pages, including dissenting opinion)

AD 1980-120: Convention Expenses Defrayed

by Host Committee with Funds

Transferred from General to

Separate Account

The Republican National Convention, Inc. (the Host Committee) may pay certain convention expenses of the Republican National Committee with funds it transfers from its

general account to a separate account that it maintains

specifically to defray convention expenses. The Host Com'

mittee may transfer the funds because, when the funds

were first received, they would have qualified for deposit

in the separate account: l.e., they consisted solely of

donations from local retailers that were made in amounts

proportional to the commercial return the retailers had

reasonably expected to derive from the convention. 11

CFR 9008.7Id)(3)lii). (Date Issued: November 14. 1980;

Length: 3 pages)

AD 1980-121: Qualifying as the National

Committee of a Political Party

The Socialist National Committee (the Committee) qualifies as the national committee of the Socialist Party. U.S.A.

(the Party) because documentation it submitted to the

Commlssion indicates that it has engaged in sufficient

activity on the national level to satisfy the requirements for

"national committee" status. 2 U.S.C. §431(14). Specifically, documentation provided by the Committee indicates:

1. The Committee has established a national office to

administer the affairs of the Party.

2. The Committee is the "governing body" of the Socialist

Party (a "political party" under the Act by virtue of

having nominated several Presidential candidates that

have appeared on state ballots as the Party's candidates)

12 U.S.C. §43l(16));

3. The Committee has state and local Party affiliates;

4. The Party conducts biennial national conventions to

determine policy and a national platform, elect Party

officers and nominate its Presidential candidate;

5. The Party maintains a speakers bureau, disseminates

information to the public and maintains communication

within the Party through its publications.

As the national committee of the Party, the Committee

may:

1. Receive contributions of up to $20,000 per year from

individuals (2 U.S.C. §441a); and

2. Make limited coordinated (§441a(d)) party expend]-

3

tures on behalf of the Party's nominees for Feder

office.

The Commission did not express an opinion, however, o

the applicability of public funding provisions of the A

(i.e., primary election and convention funding) to possib

activities by the Party and its potential Presidential cand

dates since the Committee did not present any specif

transaction or activity related to these provisions of t

Act. (Date Issued: December 4.1980; Length: 3 pages)

AD 1980-123: Use of Excess Campaign Funds

for Christmas Thank-You Notes

Selden for Senate (the Committee) may pay the costs 

Christmas thank-you notes it sends to campaign sta

If the Committee does not file a termination report befo

sending the notes, costs associated with the mailing wou

be considered reportable expenditures. 2 U.S.C. §434(b

11 CFR 104.3(b). If the Committee files a terminati

'"report before mailing the notes, costs of the mailing wou

constitute a use of excess campaign funds. The use, ho

ever, would not be considered a personal use, which 

prohibited under the Act, because the mailing is sufficient

carnpaign-retated, i.e., the direct consequence of ending 

campaign. In the absence of any State law to the contrar

using funds for thank-you notes to staff would constitu

the spending of excess funds for a "lawful purpose" und

the Act.

The Commission expressed no opinion on the possib

application of tax provisions, which are not within t

Commission's jurisdiction. (Date Issued: November 2

1980; Length: 2 pages)

AD 1980-125: Receipt, Use and Reportable Value

of $100-Contribution Made in

Silver Dollars

The reportable value of 100 silver dollars received by t

Cogswell for Senate Committee '80 (the Committe

depends on whether the Committee treats the coins 

currency (i.e., as a $100 cash contribution) or as a com

modity to be liquidated or bartered (Le., as an in-ki

contribution). If the Committee treats the coins as cu

rency, it must deposit them in its bank account and repo

them as a direct contribution of $100.

Alternatively, if the Committee treats the coins as a com

modity by negotiating a campaign worker's salary 

silver coins, the value of the contribution is determined 

the fair market value of the coins on the day the Com

mittee received them. 11 CFR 104.13(b). (The fair mark

value is based on prices established for silver coins by t

silver commodities market.) If, however, the fair mark

value of the coins is greater than $1,000, the in-ki

contribution is in excess of the contribution limits. 2 U.S.

§441a(a)(11). If this occurs, the Committee must retu

that portion of the contribution that is in excess of t

limits. (Date Issued: November 21. 1980; Length: 4 pages

continu
AO 1980-127: Conversion of Federal Committee

to Federal/Nonfederal Committees

The Democratic Party of South Carolina (the Party Committee), a registered political committee with a combined

federal/nonfederal account, may establish a separate

account for state and local elections while continuing to use

the registered account exclusively for federal elections,

provided:

1. The Party Committee properly allocates outstanding

debts between the federal and nonfederal accounts

and keeps sufficient documentation to support the

reasonableness of that allocation (11 CFR 106.1);

and

2. The Party Committee's federal account reports the

change in accounts as an amendment to its Statement of

Organization (Form 1) and discloses the allocation of

debts on its next required report (Form 3X). The federal

account may not terminate its reporting obligations until

its portion of the total debt has been liquidated. 11

CF R l 02.3 and 102.4.

The Commission did not approve any specific method for

allocating outstanding debts. (Date Issued: December 4,

1980; Length: 3 pages)

AO 1980-129: Corporation Established Pursuant to the

Alaska Native Claims Settlement Act

Although the Sealaska Corporation (Sealaska) is incorporated under Alaska law, it is considered a corporation

organized by authority of a law of Congress and is therefore

proh ibited from making contribu tions or expenditures in

connection with any election to any pol itical office (local,

state or federal). Sealaska qualifies as a corporation orqaoized by authority of Congr.ess because it is incorporated

pursuant to the Alaska Native Claims Settlement Act

(Claims Act), an act of Congress. More specifically, the

Claims Act:

1. Provides for the establ ishment of corporations, such as

Sealaska, and requires that their articles of incorporation

be consistent with the Claims Act; and

2. Regulates Sealaska's bylaws, board of directors, issuance

of stock, as well as the voting rights of its stockholders

and its distribution of profits. (Date Issued: December 5,

1980; Length: 3 pages)

AO 1980·130: Nonfederal Committee's Loan Repayment

to Federal Committee

The Garcia for Assembly Committee (the Garcia Committee), a nonfederal committee, may repay a $5,000 loan

obtained from the Fazio for Congress Campaign Committee

(the Fazio Committee). a political committee registered

under the Act. The Garcia Committee may make the

repayment from an account that contains contributions

from corporations and labor unions, as long as it:

1. Repays the loan (and interest, if any) from funds permissible under the Act;

2. Can demonstrate, through a reasonable accounting

method, that sufficient funds to pay the loan have

been rece ived from permissible sources and such funds

are present in the Committee's account; and

3. Keeps records of funds received and expended and,

4

upon request, makes such records available for F

examination. 11 CFR 102.5(b)(1 Hii).

Because the loan repayment is not a contribution, it 

not subject to the Act's contribution limits. Nor wo

interest charged on the loan be a contribution to 

Fazio Committee, except to the extent that the inter

exceeded the commercially reasonable rate prevail 

when the loan was made. 11 CFR 100.7(a)(1I(i)(D). (D

Issued: December 4,1980; Length: 3 pages)

AO 1980·131: Application of Contribution

and Expenditure Limits to Committees

Supporting New Party Candidate

Because neither the National Unity Campaign for Jo

Anderson nor the National Unity Campaign 441 a 

Committee Qualifies as the national committee of a politi

party, neither committee may:

1. Receive contributions of up to $20,000 from individu

(2 U.S.C. §44 1a(a)(1 )(B)); or

2. Make coordinated party expenditures on behalf of t

Anderson campaign. §441a(d).

Neither committee qualifies as the national commit

of a pol itical party because, at this time, neither o

has demonstrated that its activity on a national le

is such that it may be regarded as a national commit

under the Act. Neither one has: nominated candida

for other federal office; conducted voter registrati

and qet-out-the-vote drives; provided speakers; organ iz

volunteer workers; publ icized issues of importance to t

party and its adherents throughout the United Stat

or held a national convention.

Rather than fu nctioninq as national party committe

the Anderson committees have operated as single-candid

committees active exclusively on behalf of the President

campaign of John Anderson and his running mate Patr

Lucey. Moreover, the Anderson 441a(d) Committee do

not qualify as the national committee of the National Un

Campaign because it is not responsible for the daily activ

of the National Unity Campaign. Nor is it identified a

national committee in the bylaws of the National Un

Campaign.

Because neither committee Qualified as the national co

mittee of a political party, the Commission did not dec

whether either one was a "pol itical party" under the A

(Date Issued: November 20,1980; Length: 5 pages)
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SOLICITATIONS BY

TRADE ASSOCIATIONS

The Public Communications Office receives numerous

inquiries from the public on its toll-free line: 800/424-

9530. The following explanations are offered in response to

questions that trade associations frequently ask about

sol iciti ng member corporations.

May a trade association or its separate segregated fund

solicit contributions from the executive and administrative

personnel and stockholders of a member corporation?

Yes, as long as the trade association obtains written approval from its member corporation before conducting any

solicitation. 11 CFR 114.8(c)(1).

May the trade association solicit anyone else who works for

the member corporation?

No. The trade association or its separate segregated fund

must Iimit sol icitations to the member corporation's

stockholders, executive and administrative personnel and

their families. Moreover, the corporation may decide to

restrict solicitable personnel even more. For example, the

corporation may limit the solicitation to its stockholders.

11 CFR 114.8(c) and (d)(5).

How long is the trade association's written approval valid?

The written approval is only good through the calendar

year in wh ich it is obtained. A separate approval must be

obtained each year. The trade association must, however,

maintain a copy of the approval for at least three years. 11

CFR 114.8(d)(2) and (4).

Maya corporation approve a solicitation request from more

than one trade association per year?

No. A corporation may not authorize a solicltation by

more than one trade association (or its separate segregated

fund) during any calendar year. Moreover, once a corporation has given written approval to one trade association, the

corporation's personnel may not solicit contributions for

any other trade association's separate segregated fund. 11

CFR 114.8(c)(2).

How often maya trade association solicit a member corporation?

Once it has obtained written approval from the corporation, a trade association or its separate segregated fund

may solicit the corporation's executive and administrative

personnel and stockholders any number of times during the

year. However, the corporate member may decide to

limit the number of solicitations made by the trade association. 11 CF R 114.8(el.

Does the trade association's solicitation of a member corporation's executive and administrative personnel and stockholders in anv way restrict solicitations the corporation or

its separate segregated fund makes to the same personnel?

No. 11 CFR 114.8(e)(2).

5

Does the Act or FEC Regulations place any restrict

on the type of solicitation system the trade associa

uses?

No. The trade association or its separate segregated f

may use any method it chooses to sol icit voluntary 

tributions, as long as the member corporation does 

collect the contributions through a payroll deductio

checkoff plan. 11 CFR 114.8(a)(3).

If a parent corporation is a member of a trade associa

but its subsidiary is not, may the trade associatlon so

the subsidiary's stockholders and executive and admini

tive personnel?-'

No. In this case, the trade association may only so

personnel of the parent corporation because the subsid

is not a member. Conversely, if the subsidiary corpora

were a member of the trade association and the pa

organization were not, the trade association could 

solicit personnel of the subsidiary corporation. 11 C

114.8(f).

NATIONAL CHAMBER ALLIANCE. ,.~~

FOR POLITICS ET AL. v. FEC'"

On November~, 1980, the Supreme Court denie

petition for a writ of certiorari filed by the National Ch

ber Litigation Center (a legal arm of the Chamber 

Commerce of the U.S.l in the suit, National Chamber A

ance for Politics et al. v. FEe (Civil Action No. 78-13

Plaintiffs were seeking review of a ruling of June 10, 1

by the Ll.S, Cou rt of Appeals for the District of Colum

Circuit, which held that plaintiffs' claims were not ripe 

judicial review.

In the original suit filed on July 20, 1978, plaintiffs 

challenged the constitutional ity of the provisions of the 

governIng corporate separate segregated funds and sou

injunctive relief. Plaintiffs had argued that, by enumera

those whom the corporation or its separate segregated f

may solicit (i.e., stockholders, executive and administra

personnel and their families), section 441 b of the Act:

1. Limits plaintiffs' right to communicate to a m

broadly based audience for the purpose of "solicit

thei r financial assistance;

2. Limits piaintiffs' abil ity to associate with those 

enumerated in the Act as potential solicitees:

3. Violates the right of the potential sol icitees (not enu 

ated in the Act) to associate with the plaintiffs; and

4. Discriminates against plaintiffs by permitting candid

and their committees to solicit funds from any sepa

segregated fund but denying this same right to corp

tions and their separate segregated fu nds.

The suit is summarized in detail in the February 1979 

Record.

contin
FEC v. AFL-CIO

On November 13, 1980, the U.S. Supreme Court den ied

the Commission's petition for a writ of certiorari in the

suit, Federal Election Commission v. American Federation

of Labor and Congress of Industrial Organizations (AFLCIO) (Civil Action No. 80-3681. The Commission sought

review of a judgment of the U.S. Court of Appeal s for the

District of Colu mbia Circuit, which had reversed an earlier

decision by the U.S. District Cou rt for the District of

Columbia, imposing a $10,000 civil penalty against the

AFL-CIO.

In filing the suit against the AFL-CIO on December 16,

1977, the Commission had sought to enjoin the organization from transferring funds from its COPE Education

Fund (wh ich contained general treasury fundsl to COPEPCC, its separate segregated fund (which contained only

voluntary political contributions from individuals). The

Commission had argued that the transfers violated provisions of the Act prohibiting tabor organizations from

using their general treasury funds to make contributions or

expenditures in connection with federal elections. Between

1970 and 1977, COPE·PCC had transferred funds to the

COPE Education Fund several times because COPE·PCC's

funds were idle between elections. On demand of COPEPCC, the funds were subsequently transferred from the

COPE Education Fund back to COPE-PCC for its use. The

COPE·PCC transfers were designated as loans to the COPE

Education Fund but were interest-free. Complete records

were kept, and the transactions were reported to the

Office of Federal Elections of the General Accounting

Office (GAO) and later to the FEC.

In 1977, after the FEC had succeeded to the GAO's authority, it notified the A FL·CI 0 that Section 441 b of

the Act permits transfers of funds from COPE·PCC to the

COPE Education Fund but not transfers from the COPE

Education Fund back to COPE-PCC. In an FEC enforcement action brought against the AFL-CIO, the AFL-CIO

attempted to negotiate with the FEC a transfer of

$321,000 from the Education Fund to COPE·PCC for the

purpose of clearing the balance between the two funds. No

agreement was reached and the FEC brought a civil action

against the AFL-CIO in the District Court. On June 16,

1978, the District Court granted the Commission's motion

for summary judgment in the case. It ru led that past

transfers from the COPE Education Fund to COPE-PCC

were illegal, enjoined the AFL·CIO from making any such

transfers in the future (except for a single transfer of the

$321,000 previously transferred) and assessed a $10,000

civil penalty against the AFL·CIO. The AFL-CIO appealed

the assessment of the civil penalty.

The Appeals Court, on April 1, 1980, reversed the imposition of the civil penalty, argu ing that the District Court

had imposed the civil penalty for a "knowing and willful"

violation of the Act and that the facts of the case did not

support this finding. The Court held that the AFL-CIO's belief in the legitimacy of the transfers had been reasonable;

.during the GAO audit no comment had been made about

the routinely reported transfers, and neither the Act nor

any court decision had addressed the immed iate issue. (The

6

Appeal's Court rejected the FEC's argument that Pipeiitter

Local No. 5621,1. United States, 407 U.S. 385 (1972) pro

vided specific notice that interfund transfers were prohib

ited by the Aet.)

In its petition to the Supreme Court for a writ of certiorari

the Commission argued that:

1. The penalty imposed by the District Court had no

assumed a "knowing and willful" violation of the Ac

(all parties to the suit subsequently informed the

Appeals Court's staff counsel that the case had no

involved such a violation); and

2. The standard that the Appeals Court appl jed for deter

mining a "knowing and willful" violation of the Act was

erroneous.

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CHANGE OF ADDRESS

Political Committees

Registered political committees are automatically

sent the Record. Any change of address by a regis·

tered committee must, by law. be made in writing as

an amendment to FEC Form 1 (Statement of Orqan}

zation) and filed with the Clerk of the House, the

Secretary of the Senate or the FEC, as appropriate.

Other Subscribers

Record subscribers (who are not political committees], when calling or mailing in a change of address,

are asked to provide the following information:

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2. Old address.

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computer.
,------------------------~-_._.__..-

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" -~>"REGl:JlATIQ~8', ," ; t'

"",0' / '-. 'r •

STATUS OF FEe REGULATIONS

Regu lations"

Date Sent

to Congress

Federal Register

Publication

Date Prescribed* *

by the Commission

11 CFR 9033.9

Suspension of Primary

Matching Fund Payments

4/10/80 4/15/80

(45 FR 25378)

7/3/80

11 CFR Part 4

Public Records and the

Freedom of Information Act

Not applicable 5/13/80

(45 FR 31291 f

6/12/80

11 CFR Part 5

Access to Publ ic Disclosure

Division Documents

Not applicable 5/13/80

(45 F R 31292)

6/12/80

•

11 CFR, Parts 100and 110

Contributions to and

Expenditu res by Delegates

to National Nominating

Conventions

11 CFR. Parts 100,106,

110,140·146 and 9001·9007

Publ ic Financing of Presi·

dential General Election

Campaigns

5/14/80

6/13/80

5/23/80

(45 FR 348651

6/27/80

(45 FR 43371)

8/7/80

9/5/80

*The Chart is cumulative, listing all amendments to the FEe Regulations proposed after the April 1980 edition of 11 CFR was published, including any technical amendments.

"The Commission may prescribe its regulations 30 legislative days after it has transmitted them to Congress. provided neither the House

nor the Senate disapproves them during this period.

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